MIRA INFORM REPORT

Report No. :	313506
Report Date :	23.03.2015

IDENTIFICATION DETAILS

Name :	STERLING BIOTECH LIMITED

Registered Office :	43, Atlanta Building, Nariman Point, Mumbai - 400021, Maharashtra

Country :	India

Financials (as on) :	31.12.2013

Date of Incorporation :	23.03.1985

Com. Reg. No.:	11-035738

Capital Investment / Paid-up Capital :	Rs. 267.873 Million

CIN No.: [Company Identification No.]	L51900MH1985PLC035738

TAN No.: [Tax Deduction & Collection Account No.]	MUMS16116C

PAN No.: [Permanent Account No.]	AABCS1946H

Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchanges.

Line of Business :	Subject is engaged in the Manufacturing of Pharma Grade Gelatine and Di-Calcium Phosphate and other Pharma products.

No. of Employees :	1354 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ca (22)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Exist

Comments :	Subject is an established company having moderate track record. The rating is constrained on account of company’s weak financial risk profile and losses that company has incurred from its operational activities. Business is active. Payments are reported to be slow. The company can be considered for business dealing on safe and secured trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	Not Available

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

Subject’s name has been found enlisted as a defaulter in the publicly available RBI Defaulters’ list

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED BY

Name :	Mr. Rakesh Patel
Designation :	Finance Department
Contact No.:	91-22-66306732
Date :	20.03.2015

LOCATIONS

Registered Office :	43, Atlanta Building, Nariman Point, Mumbai - 400021, Maharashtra, India
Tel. No.:	91-22-66306732
Fax No.:	91-22-22041954
E-Mail :	sterlingbiotech@stergel.com api@sterbio.com

Branch Office 1 :	C - 25, Laxmi Towers, 'A' - 601, 6th Floor, Bandra Kurla Complex, Bandra (East) Mumbai – 400051, Maharashtra, India
Tel. No.:	91-22-26541241 / 42 / 43
Fax No.:	91-22-26540155

Branch Office 2:	Sandesara Estate, Padra Road, Atladra, Vadodara - 390012, Gujarat, India.
Tel No.:	91-265-2680720 / 30
Fax No.:	91-265-2680257 / 732
Email :	sterling_gelatin@stergel.com

Factory 1:	ECP Road, Village Karakhadi, 391450, Taluka Padra, District Baroda, Gujarat, India
Tel No.:	91-2662-273292 / 94 / 273364 /65 / 67
Fax No.:	91-2662-273293

Factory 2:	Jambusar State Highway, Village Masar – 391421, Taluka Padra, District Vadodara, Gujarat, India
Tel No.:	91-2662-237301
Fax No.:	91-2662-237304

Factory 3:	Sandyanalla, Sholur Gram Panchayat, Ottacamund, District The Nilgiries, Tamilnadu, India

DIRECTORS

As on: 31.12.2013

Name :	Mr. Nitin Sandesara
Designation :	Chairman and Managing Director

Name :	Mr. Chetan Sandesara
Designation :	Joint Managing Director

Name :	Mr. Rajbhushan Dixit
Designation :	Director

Name :	Mr. Vilas D Joshi
Designation :	Director

Name :	Mr. Priyadarshan B. Merita
Designation :	Director

Name :	Mr. Narendrabhai B. Patel
Designation :	Director

SHAREHOLDING PATTERN

As on: 31.12 .2014

Category of Shareholder	Total No. of Shares	Total Shareholding as a %

(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6252000	2.76
Bodies Corporate	84588135	37.36
Sub Total	90840135	40.13
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	90840135	40.13
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	7003	0.00
Foreign Institutional Investors	23244065	10.27
Sub Total	23251068	10.27
(2) Non-Institutions
Bodies Corporate	44561460	19.68
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	38860912	17.17
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	18313789	8.09
Any Others (Specify)	10557861	4.66
Clearing Members	5489575	2.24
Non Resident Indians	5067456	49.60
Foreign Corporate Bodies	830	0.00
Sub Total	112294022	49.60
Total Public shareholding (B)	135545090	59.87
Total (A)+(B)	226385225	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group	0	0.00
(2) Public	45662763	0.00
Sub Total	45662763	0.00
Total (A)+(B)+(C)	272047988	0.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in the Manufacturing of Pharma Grade Gelatine and Di-Calcium Phosphate and other Pharma products.

Products :	Not Available

Brand Names :	Not Available

Agencies Held :	Not Available

Exports :	Not Available

Imports :	Not Available

Terms :	Not Available

PRODUCTION STATUS = NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

Customers :

Reference :	Not Available
Name of the Person :	Not Available
Contact No.:	Not Available
Since How Long Known :	Not Available
Experience :	Not Available
Maximum Limit Dealt :	Not Available

No. of Employees :

1354 (Approximately)

Bankers :

Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Catholic Syrian Bank Limited
Federal Bank
IDBI Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of India
Syndicate Bank
Uco Bank
Vijaya Bank

Facilities :

(Rs. In Million)

Secured Loan	As on 31.12.2013	As on 31.12.2012
LONG TERM BORROWINGS
Term Loans from Banks	420.125	305.000
Redeemable Non-Convertible Debentures	450.000	1050.000
External Commercial Borrowings
ECB 2009 aggregating USD 50,625,000 (December 31, 2012: USD 70,875,000)	3133.536	3882.341
ECB 2010 aggregating USD 88,440,292 (December 31, 2012: USD 112,020,000)	5474.188	6136.153

SHORT TERM BORROWINGS
Working Capital Borrowings from Banks	10306.272	10235.481
Interest accrued and due on working capital borrowings	2508.454	859.666
Short Term Loans from Banks	4110.499	3622.750

Total	26403.074	26091.391
Note: Interest rates on Rupee term loans from banks vary in the range of 11.5% p.a. to 16.35% p.a. (linked with BPLR). The said loans are repayable in quarterly installments with a maximum tenure of 6 years. Part of the said loans are also secured by way of second charge on the current assets of the Company, both present and future, on pari passu basis and/or the personal guarantees of the Promoter Directors of the Company. 2. Interest rate on Redeemable Non-Convertible Debentures is 12%. The said debentures are redeemable in 20 quarterly installments starting from November 05, 2010 and last installment due on August 05, 2015. 3. Interest rates on External Commercial Borrowings vary in the range of 4.50% p.a. to 6.50% p.a. (linked with LIBOR). The said ECBs are repayable in half yearly installments starting from May 20, 2012 with a maximum tenure of 6 years. 4. The company has defaulted in repayment of certain debt obligations towards installments and interest. Certain Banks and Financial Institutions have initiated legal action against the Company and/or its directors for recovery of these debt. However, the Company is in continuous dialogue with the lenders for bilateral restructuring of its debt. Certain banks have already restructured its debt. Interest rates on Working capital Borrowings from Banks vary in the range of 13.25% p.a. to 16.50% p.a. (linked with BPLR). The said loans are repayable on demand and also secured by way of a second charge on the fixed assets of the Company, on pari passu basis. Part of the said loans are additionally secured by way of a personal guarantees of the two Directors of the Company. Interest rate on the Short Term Loans from Banks repayable during 2012 and 2013 vary in the range of 13.25% to 15%.


Banking Relations :	--

Auditors :
Name :	H. S. Hathi and Company Chartered Accountants

Memberships :	Not Available

Collaborators :	Not Available

Related Party :	Sterling SEZ and Infrastructure Limited Sterling Oil Resources Limited Sterling Port Limited Atlantic Bluewater Services Private Limited British Oil and Gas Exploration Limited

Subsidiary :	Sterling Fincom Private Limited, Mauritius (Subsidiary) Sterling Commercial FZE, U.A.E. (subsidiary of Sterling Fincom Private Limited, Mauritius)

CAPITAL STRUCTURE

After 29.06.2013

Authorised Capital : Rs. 28.000 Million

Issued, Paid-up Capital& Subscribed Capital : Rs. 272.048 Million

As on: 31.12.2013

Authorised Capital :

No. of Shares	Type	Value	Amount

500000000	Equity Shares	Re.1/- each	Rs. 500.000 Million

Issued & Subscribed Capital :

No. of Shares	Type	Value	Amount

271597590	Equity Shares	Re.1/- each	Rs. 271.597 Million

Paid-up Capital :

No. of Shares	Type	Value	Amount

267873590	Equity Shares	Re.1/- each	Rs. 267.873 Million

Reconciliation of number of shares

Equity Shares	31.12.2013
Equity Shares	No. of Shares	Rs. In Million
Balance as at the beginning of the year	267873590	267.873
Add : Shares issued during the year	--	--
Balance as at the end of the year	267873590	267.873

Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of 1/- per share. Each shareholder of equity share is entitled for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

Name of Shareholder	31.12.2013
Name of Shareholder	Numbers	% holding
Equity shares of 1/- each fully paid
Albula Investment Fund Limited	15963234	5.96%

As per the of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2013	31.12.2012	31.12.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	267.873	267.873	267.873
(b) Reserves & Surplus	14433.365	18439.900	24641.013
(c) Money received against share warrants	0.000	0.000	0.000

(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	14701.238	18707.773	24908.886

(3) Non-Current Liabilities
(a) long-term borrowings	9477.849	11373.494	15064.735
(b) Deferred tax liabilities (Net)	0.000	1468.401	3148.201
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	9477.849	12841.895	18212.936

(4) Current Liabilities
(a) Short term borrowings	16925.225	14717.897	12260.270
(b) Trade payables	200.517	264.990	438.789
(c) Other current liabilities	32683.444	24304.227	15444.040
(d) Short-term provisions	0.000	0.000	79.765
Total Current Liabilities (4)	49809.186	39287.114	28222.864

TOTAL	73988.273	70836.782	71344.686

II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	34334.358	36331.309	29420.987
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	21097.920	15518.122	16455.063
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	3765.175	3765.175	3650.032
(c) Deferred tax assets (net)	455.899	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	59653.352	55614.606	49526.082

(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	7935.198	8699.374	10087.911
(c) Trade receivables	3357.060	3470.960	7230.117
(d) Cash and cash equivalents	174.871	178.331	219.872
(e) Short-term loans and advances	2867.792	2873.511	4268.517
(f) Other current assets	0.000	0.000	12.187
Total Current Assets	14334.921	15222.176	21818.604

TOTAL	73988.273	70836.782	71344.686

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.12.2013	31.12.2012	31.12.2011
	SALES
	Income	7180.695	8347.741	16619.539
	Other Income	42.605	70.231	93.078
	TOTAL (A)	7223.300	8417.972	16712.617

Less	EXPENSES
	Manufacturing Expenses	4843.450	6144.501	10279.960
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	274.980	(335.081)	(1483.669)
	Employees benefits expense	546.768	536.802	505.656
	Other expenses	568.691	525.512	943.525
	Extraordinary Items	0.000	12.187	962.271
	TOTAL (B)	6233.889	6883.921	11207.743

Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)	989.411	1534.051	5504.874

Less	FINANCIAL EXPENSES (D)	4377.079	4123.282	2704.308

	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)	(3387.668)	(2589.231)	2800.566

Less/ Add	DEPRECIATION/ AMORTISATION (F)	2543.166	2588.309	2522.246

	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)	(5930.834)	(5177.540)	278.320

Less	TAX (H)	(1924.300)	(1679.801)	87.003

	PROFIT/ (LOSS) AFTER TAX (G-H) (I)	(4006.534)	(3497.739)	191.317

	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	185979.800	2229.678	5140.773
	TOTAL EARNINGS	185979.800	2229.678	5140.773

	IMPORTS
	Raw Materials	12.217	4.353	82.084
	TOTAL IMPORTS	12.217	4.353	82.084

	Earnings / (Loss) Per Share (Rs.)	(14.96)	(13.06)	0.71

KEY RATIOS

PARTICULARS		31.12.2013	31.12.2012	31.12.2011
PAT / Total Income	(%)	(55.47)	(41.55)	1.14

Net Profit Margin (PBT/Sales)	(%)	(82.59)	(62.020	1.67

Return on Total Assets (PBT/Total Assets}	(%)	(12.19)	(10.04)	0.54

Return on Investment (ROI) (PBT/Networth)		(0.40)	(0.28)	0.01

Debt Equity Ratio (Total Debt/Networth)		1.80	1.39	1.10

Current Ratio (Current Asset/Current Liability)		0.29	0.39	0.77

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	267.873	267.873	267.873
Reserves & Surplus	24641.013	18439.900	14433.365
Net worth	24908.886	18707.773	14701.238

long-term borrowings	15064.735	11373.494	9477.849
Short term borrowings	12260.270	14717.897	16925.225
Total borrowings	27325.005	26091.391	26403.074
Debt/Equity ratio	1.097	1.395	1.796

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	16619.539	8347.741	7180.695
		(49.772)	(13.980)

NET PROFIT MARGIN

Net Profit Margin	31.12.2011	31.12.2012	31.12.2013
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	16619.539	8347.741	7180.695
Profit	191.317	(3497.739)	(4006.534)
	1.15%	(41.90)%	(55.80)%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

LITIGATION DETAILS:

HIGH COURT OF BOMBAY

Bench:- Bombay
Presentation Date:- 24/11/2014
Lodging No:-		CPL/865/2014		Filing Date:-	24/11/2014

Petitioner:-	JP MOFGAN CHASE BANK N.A.		Respondent:-	STERLING BIOTECH LIMITED
Petn. Adv.:	JURIS CORP ADVOCATES & SOLICITORS
District:-	OUTSIDE MAHARASHTRA

Bench:-	SINGLE
Status:-	Pre-Admission		Category:-	COMPANY PETITION U/SEC 433,434,439 COMPANIES ACT
Next Date:	30/03/2015		Stage :-	FOR ADMISSION – FRESH
Coram :-	HON’BLE SHRI JUSTICE S.J. KATHAWALLA
Last Date :	16/03/2015		Stage :	FOR ACCEPTANCE
Last Coram :	HON’BLESHRI JUSTICE S.J. KATHAWALLA

Act:-	Companies Act & Rules 1956		Under Section :-	433 (E) 434 439

RBI Defaulters’ list

Bank	Branch	Quarter	Borrower Name	Outstanding Amount (Rs. In Lacs)
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-09-13	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-09-13	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	31-12-13	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	31-03-14	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-06-14	Sterling Biotech Limited	1,942.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	31-03-13	STERLING BIOTECH LIMITED	21,953.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	30-06-13	STERLING BIOTECH LIMITED	24,689.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	30-09-13	STERLING BIOTECH LIMITED	27,484.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-09-12	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-12-12	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-03-13	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-09-13	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-12-13	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-03-14	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-06-14	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF PATIALA	CB MUMBAI	30-09-14	Sterling Biotech Limited	7,420.00
STATE BANK OF PATIALA	CB MUMBAI	31-03-13	Sterling Biotech Limited	21,953.00
STATE BANK OF PATIALA	CB MUMBAI	31-12-12	Sterling Biotech Limited	24,689.00
STATE BANK OF PATIALA	CB MUMBAI	30-06-13	Sterling Biotech Limited	1,874.00
STATE BANK OF PATIALA	CB MUMBAI	31-12-13	Sterling Biotech Limited	1,874.00
STATE BANK OF PATIALA	CB MUMBAI	30-09-13	Sterling Biotech Limited	1,874.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-12-13	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-03-14	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-09-12	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-12-12	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	31-03-13	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-06-14	STERLING BIOTECH LIMITED	7,420.00
STATE BANK OF MYSORE	DALAL STREET MUMBAI	30-09-13	STERLING BIOTECH LIMITED	7,420.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	31-03-13	STERLING BIOTECH LIMITED	21,953.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	30-06-13	STERLING BIOTECH LIMITED	24,689.00
LIC ( LIFE INSURANCE CORPORATION OF INDIA)	CENTRAL OFFICE,MUMBAI	30-09-13	STERLING BIOTECH LIMITED	24,689.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	31-12-13	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	31-03-14	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-06-14	Sterling Biotech Limited	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-09-13	STERLING BIOTECH LIMITED	1,942.00
BANK OF MAHARASHTRA	NARIMAN POINT , MUMBAI	30-09-13	STERLING BIOTECH LIMITED	1,942.00

OPERATIONS

During the year, the turnover (including other income) of the Company is decreased to Rs. 7223.300 Million as against Rs. 8417.970 Million in the previous year. The finance cost was increased to 4377.080 Million as against Rs. 4123.280 Million in the previous year. The Loss before tax was Rs. 5930.830 Million as against Rs. 5177.540 Million in the previous year. After reducing the deferred tax, the loss after tax was Rs.4006.530 Million as against Rs. 3497.74 Million in the previous year.

MANAGEMENT DISCUSSION AND ANALYSIS

OUTLOOK

The company aims to focus its attention more on its Pharmaceutical products, Oncology products and Hydrolised Proteins in addition to the Bone gelatin for its future growth. The Company intends to have focused and continuous innovation in Research and Development which will help secure a sound future. Concentration is also on expansion of the product portfolio along with stricter credit policy and cost control through long term contracts with suppliers and tightening of expenses so as to improve margins.

The Company has all required certifications in terms of quality which gives the company good demand visibility in the International and Domestic Market. With future growth in pharma sector which uses gelatin as raw material for manufacture of capsules, there will be not be demand constraint for the Company.

OPERATING AND FINANCIAL PERFORMANCE

The highlights of Sterling Biotech's financial performance during 2013 were:

• The company achieved a turnover (including other income) of Rs. 7223.300 Million.

• EBIDTA from operations was Rs. 989.410 Million.

• The finance cost was Rs. 4377.079 Million. Leading to Loss before tax of Rs. 5930.835 Million.

• After reducing the deferred tax, the loss after tax was Rs. 4006.535 Million.

• Net worth as at 31st December 2013 stood at Rs. 14701.239 Million

During the FY 2013 the operations of the company have started stabilizing after the various issues of ETP etc. which got over in FY 2012. The global economic turbulences has impacted the volumes and the increase in cost of materials as well as the challenges in sourcing crushed bones of required quality has increased the cost of manufacturing. The finance cost and manufacturing costs have increased whereas the selling price have had no matching upward effect causing drastic erosion in the profitability.

AUDITED FINANCIAL RESULTS FOR HE YEAR ENDED 31 DECEMBER 2014

(Rs. In Million)

Sr. No	Particulars		Standalone
			Quarter Ended		Six Month Ended
			31.12.2014	30.09.2014	31.12.2014
			Unaudited	Unaudited	Unaudited
1	Income From Operations
	a. Net Sales/ Income from Operations (Net of Excise Duty)		1216.282	1727.508	6669.507
	b. Other Operating Income		7.531	10.052	36.820
	Total Income from Operations (Net)		1223.813	1737.560	6706.327
2	Expenditure
	a. Cost of material Consumed		879.693	2124.884	6178.387
	b. Purchase of Stock-in trade		0.00	0.00	0.00
	c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade		4.666	(879.005)	(1523.262)
	d. Employees Benefit Expenses		121.686	128.983	516.727
	e. Depreciation and Amortisation Expenses		848.034	328.247	2754.743
	f. Other expenses		93.221	85.091	385.280
	Total Expenses		1947.300	2098.200	8322.875
3	Profit from Operations before Other Income, Interest and Exceptional Items		(723.487)	(360.640)	(1616.548)
4	Other Income		0.00	0.00	0.00
5	Profit from ordinary activities before finance cost & exceptional items		(723.487)	(360.640)	(1616.548)
6	Finance Costs		875.983	1285.794	4695.057
7	Profit from ordinary activities after finance costs & exceptional items		(1599.470)	(1646.434)	(6311.605)
8	Exceptional items		0.00	0.00	0.00
9	Profit from ordinary activities before tax
10	Tax Expense
	- Income Tax		0.00	0.00	0.00
	- Deferred Tax		(518.900)	(534.200)	(2047.800)
11	Net Profit from ordinary activity after tax		(1080.570)	(1112.234)	(4263.805)
12	Extraordinary Items		0.00	0.00	0.00
13	Net Profit After Tax		(1080.570)	(1112.234)	(4263.805)
	Prior Period Adjustment		(193.247)	(55.000)	(313.247)
	Profit Available for Appropriation		(1273.817)	(1167.234)	(4577.052)
14	Paid-up equity share capital (face value of Rs.10 per share)		2,720.48	2,720.48	2,720.48
15	Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year
16	Earning Per Share (of Rs.10 each) (not annualized)
	Basic EPS		(3.97)	(4.09)	(15.67)
	Diluted EPS		(2.50)	(2.57)	(9.85)
	Debt Services Coverage Ratio (DSCR)		0.01	0.02	0.07
	Interest Services coverage Ratio (ISCR)		(0.08)	(0.17	0.18

A		PARTICULARS OF SHAREHOLDING
17		Public Shareholding
		- No. of shares	135,545,090	135,545,090	135,545,090
		- Percentage of shareholding	49.82%	49.82%	49.82%
18		Promoter & Promoter Group Shareholding
		a) Pledged/Encumbered
		- No. of shares	50,816,835	50,816,835	50,816,835
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	55.95%	55.95%	55.95%
		- Percentage of shareholding (as a % of the total share capital of the company)	18.68%	18.68%	18.68%
		b) Non-encumbered
		- No. of shares	40,023,300	40,023,300	40,023,300
		- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	44.06%	44.06%	44.06%
		- Percentage of shareholding (as a % of the total share capital of the company)	14.71%	14.71%	14.71%

Particulars	Quarter ended 31/12/2014
Investment Complaints
Pending at the beginning of the quarter	0
Received during the quarter	3
Disposed of during the quarter	3
Remaining unresolved at the end of the quarter	0

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

Particulars		Twelve Months Ended 31/12/2014 (Unaudited)
A	EQUITY AND LIABILITIES
1	Shareholders' Funds
	(a) Share Capital	15340.314
	(b) Reserves & Surplus	10102.603
	Total Shareholders’ Funds	25442.917

2	Non-Current Liabilities
	(a) long-term borrowings	18611.464
	(b) Deferred tax liabilities (Net)	0.00
	(c) Other long term liabilities	0.00
	(d) long-term provisions	0.00
	Sub Total Non-current Liabilities	18611.464

3	Current Liabilities
	(a) Short term borrowings	11817.145
	(b) Trade payables	246.906
	(c) Other current liabilities	16006.908
	(d) Short-term provisions	0.00
	Sub Total Current Liabilities	28070.959

	TOTAL- EQUITY AND LIABILITIES	72125.340

A	ASSETS
1	Non-current assets
	a) Fixed Assets	55439.688
	b) Non-current Investments	1689.075
	c) Differed tax assets	2503.699
	d) Long-term Loan and Advances	0.00
	e) Other Non-current assets	1885.707
	Sub Total Non-Current Assets	61518.169

2	Current assets
	(a) Current investments	0.00
	(b) Inventories	6345.654
	(c) Trade receivables	1805.592
	(d) Cash and cash equivalents	176.592
	(e) Short-term loans and advances	2279.333
	(f) Other current assets	0.00
	Sub Total Current Assets	10607.171

	TOTAL-ASSETS	72125.340

Note:

The company's operations fall under single segment hence segment reporting as defined in Accounting Standard 17 is not applicable.

The above Financial results have been reviewed by the Audit Committee and approved by the Board of Directors in its meeting held on 28 February 2015 and have been Audited by the Statutory Auditors of the Company.

The Company has Overseas Subsidiary and there are no business operations in the subsidiary company.

The Figures of the last Quarter ended on 31 December 2014 are the Balancing figures between the audited figures in respect of the full financial year ended on 31 December 2014 and published year to date figures upto the third quarter ended on 30 September 2014 of the Current year and figures for corresponding Quarter ended on 31 December 2013 are the Balancing figures between the audited figures in respect of the full financial year ended on 31 December 2013 and published year to date figures upto the third quarter ended on 30 September 2013.

The Company has, during the year allotted 1,506,826,598 Unlisted 8% Redeemable Cumulative Non-Participating Non-Convertible Preference Shares carrying no Voting Rights of face value of Rs.10/- each at par.

The Board has not recommended any dividend for the financial year ended 31st December, 2014.

7. Previous period figures have been regrouped/reclassified, wherever necessary.

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10379629	17/09/2012	1,026,100,000.00	BANK OF BARODA	TARDEO BRANCH, MUMBAI, MAHARASHTRA - 400034, INDIA	B59342055
2	10363954	25/05/2012	1,500,000,000.00	SREI INFRASTRUCTURE FINANCE LIMITED	VISHWAKARMA, 86C, TOPSIA ROAD (SOUTH), KOLKATA, WEST BENGAL - 700046, INDIA	B42981498
3	10351397	06/04/2012	2,965,100,000.00	ALLAHABAD BANK	RAJMAHAL ROAD BRANCH, RAJ MAHAL ROAD, VADODARA, GUJARAT - 390001, INDIA	B38082160
4	10310375	19/08/2011	3,500,000,000.00	UCO BANK	APSARA BUILDING, PRF. MANEKRAO ROAD, DANDIA BAZAR, VADODARA, GUJARAT - 390001, INDIA	B22631345
5	10322143	04/06/2011	1,850,000,000.00	BANK OF INDIA	NARIMAN POINT LARGE CORPORATE BRANCH, 92-93, FREE PRESS HOUSE, FREE PRESS JOURNAL MARG, NP, MUMBAI, MAHARASHTRA - 400021, INDIA	B20807806
6	10259992	04/01/2011 *	4,185,000,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B06431209
7	10260793	04/01/2011 *	6,584,358,000.00	SBICAP TRUSTEE COMPANY LIMITED	202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA	B06787964
8	10253703	28/10/2010	2,250,000,000.00	STATE BANK OF INDIA	COMMERCIAL BR. (ADVANCES), N.G.N. VAIDYA MARG, BANK STREET, HORNIMAN CIRCLE, POST BOX NO. 10141, MUMBAI, MAHARASHTRA - 400001, INDIA	A98987340
9	10251658	23/09/2010	750,000,000.00	BANK OF BARODA	EVEREST, J.D. ROAD, TARDEO, MUMBAI, MAHARASHTRA - 400034, INDIA	A98759855
10	10240009	30/07/2010	3,510,000,000.00	ANDHRA BANK	AKOTA BRANCH, SHRENIK PARK CHAR RASTA, VADODARA, GUJARAT - 390020, INDIA	A94759669

* Date of charge modification

FIXED ASSETS

Land and Development
Building
Plant and Machinery
Office Equipment’s and Furniture
Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 62.42
UK Pound	1	Rs. 92.99
Euro	1	Rs. 67.29

INFORMATION DETAILS

Information Gathered by :	NYA

Analysis Done by :	KAR

Report Prepared by :	ART

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILITY	1~10	-
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	YES
--EPF	YES/NO	NO
TOTAL		22

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

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