MIRA INFORM REPORT

Report No. :	492800
Report Date :	22.02.2018

IDENTIFICATION DETAILS

Name :	EVERTOGEN LIFE SCIENCES LIMITED (w.e.f. 30.01.2016)
Formerly Known As :	OPTIMUS GENERICS LIMITED
Registered Office :	G V Chambers, 7-2-C8 and C8/2, IE Sanath Nagar, Hyderabad-500018, Telangana
Tel. No.:	91-40-39219900
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	11.01.2013
Com. Reg. No.:	36-085349
Capital Investment / Paid-up Capital :	INR 661.998 Million
CIN No.: [Company Identification No.]	U24232TG2013PLC085349
IEC No.: [Import-Export Code No.]	Not Available
GSTN : [Goods & Service Tax Registration No.]	36AABCO7786R1ZE
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AABCO7786R
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	The Company is primarily engaged in manufacturing and selling of finished dosage formulations. Research and experimental development on natural sciences and engineering. [Registered Activity]
No. of Employees :	Not Available

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Maximum Credit Limit :	USD 1780000
Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a joint venture between Gil Agrotech (India) Private Limited and Oragnosyn Life Science Private Limited. It was incorporated in the year 2013 and engaged in the business of product development, contract development, contract manufacturing and supply of finished dosages. As per financials of March 2017, the company has reported growth of 149.77% in its revenue as compared to its previous year’s revenue and has reported decent profit margin of 5.94%. Rating takes into consideration the company’s healthy capital base along with comfortable debt coverage indicators and decent liquidity position. Rating also takes into account the extensive of promoters and stable customer base. However, the rating strength is partially offset by negative reserves and working capital intensive nature of operations. Payment seems to be slow but correct. In view of aforesaid, the company can be considered for business dealings at usual 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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating = BBB-
Rating Explanation	Moderate degree of safety and moderate credit risk
Date	18.09.2017
Rating Agency Name	CRISIL
Rating	Short term rating = A3
Rating Explanation	Moderate degree of safety and higher credit risk
Date	18.09.2017

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not 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 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 22.02.2018.

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

LOCATIONS

Registered Office :	G V Chambers, 7-2-C8 and C8/2, IE Sanath Nagar, Hyderabad-500018, Telangana, India
Tel. No.:	91-40-39219900
Fax No.:	Not Available
E-Mail :	saritha.jain@evertogen.com info@evertogen.com
Website :	www.evertogen.com
Plant :	Plot No.S-8, S-9, S-13 (Partly) S-14 (Partly), TSIIC, Pharma SEZ, Polepally [V], Jadcherla [M], Mahbubnagar-509301, Telangana, India
Tel. No.:	91-8542-300400

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Subbarao Kattamuri

Designation :

Managing Director

Address :

Plot No. 48, Nava Nirman Nagar Road No.71, Jubilee Hills, Hyderabad-500033, Telangana, India

Date of Birth/Age :

10.03.1953

Qualification :

Chartered Accountant

Date of Appointment :

11.01.2013

PAN No.:

AEDPK4078F

DIN No.:

00107121

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24110TG1995PTC022303	GLOCHEM INDUSTRIES PRIVATE LIMITED	01/07/2011	-
U24239AP2002PTC038417	K.R.R. DRUGS & INTERMEDIATES PRIVATE LIMITED	30/09/2015	-
U01119TG2010PTC069551	GIL AGROTECH ( INDIA ) PRIVATE LIMITED	20/07/2010	-
U74999TG2016PTC112294	PRICHE GENERICS PRIVATE LIMITED	04/10/2016	-
U74999TG2017PTC120942	LYTICA LABS PRIVATE LIMITED	01/12/2017	-

Name :

Mr. Arun Prakash

Designation :

Director

Address :

C-88, Kirti Nagar, New Delhi-110015, India

Date of Birth/Age :

09.03.1962

Qualification :

Master of Sciences, MSC

Date of Appointment :

13.02.2015

PAN No.:

AFUPP9783Q

DIN No.:

00287125

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24239DL2001PTC112768	GENETIX BIOTECH ASIA PRIVATE LIMITED	10/10/2001	-
U24100DL2009PTC192460	QG BIO SCIENCES PRIVATE LIMITED	22/07/2009	-
U24100DL2011PTC223635	ORGANOSYN LIFE SCIENCES PRIVATE LIMITED	11/08/2011	-

Name :

Mr. Ashok Reddy Bodanapu

Designation :

Director

Address :

8-2-293/82/A/347/1, Road No.23, Jubilee Hills, Hyderabad-500033, Telangana, India

Date of Birth/Age :

01.07.1958

Qualification :

B.com, LLB

Date of Appointment :

13.02.2015

PAN No.:

ABRPB6267A

DIN No.:

01848553

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U67120TG2005PTC047688	BANYAN SECURITIES AND FINANCIAL SERVICES PRIVATE LIMITED	30/09/2014	-
U72900DL2012PTC241186	TATRAS DATA SERVICES PRIVATE LIMITED	28/09/2017	-
U72200TG2013PTC087527	CYIENT INSIGHTS PRIVATE LIMITED	30/09/2015	-
U80902AP2014NPL095427	ANDHRA PRADESH STATE SKILL DEVELOPMENT CORPORATION	09/12/2016	-
U29200KA2007PLC043691	INFOTECH HAL LIMITED	28/05/2014	-
U72501TG2017PTC116600	CYIENT SOLUTIONS AND SYSTEMS PRIVATE LIMITED	27/09/2017	-

Name :

Mr. Kalyan Nagururu

Designation :

Director

Address :

Polaris - 1702, Meenakshi Skylounge, Khanamet Hitex Charminar, Hyderabad- 500084, Telangana, India

Date of Birth/Age :

08.04.1979

Qualification :

MBA

Date of Appointment :

11.01.2013

PAN No.:

ABWPN9299F

DIN No.:

02652051

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24239AP2002PTC038417	K.R.R. DRUGS & INTERMEDIATES PRIVATE LIMITED	30/09/2015	-
U72200TN2000PTC044560	SHRIRAM PROPERTIES PRIVATE LIMITED	30/09/2015	-
U74900TG2015PTC101410	PERFIN ADVISORY SERVICES PRIVATE LIMITED	29/10/2015	-
U93000TG2016PTC102781	ARYAKUBE CAPITAL PRIVATE LIMITED	01/06/2017	-
U74140TG2016PTC109184	HAPPY ADVISORY SERVICES & CONSULTING PRIVATE LIMITED	25/04/2016	-

Name :

Mr. Manav Jassal

Designation :

Director

Address :

213-G, Randhir Singh Nagar, Ludhiana-141402, Punjab, India

Date of Birth/Age :

04.11.1970

Qualification :

Post Graduate in Pharmaceutical Science

Date of Appointment :

11.01.2013

PAN No.:

AJBPJ3289N

DIN No.:

03059931

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U55101MH2010PTC208387	AVALON HOSPITALITY SERVICES PRIVATE LIMITED	29/09/2010	-
U24100DL2011PTC223635	ORGANOSYN LIFE SCIENCES PRIVATE LIMITED	29/12/2012	-

Name :

Mr. Sundeep Kattamuri

Designation :

Director

Address :

Plot No.48, Navanirman Nagar, Jubilee Hills, Road No.71, Hyderabad-500033, Telangana, India

Date of Birth/Age :

17.11.1983

Qualification :

Engineering Graduate and Post Graduate in Chemical Engineering

Date of Appointment :

13.02.2015

PAN No.:

BRMPK2131G

DIN No.:

03128742

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24110TG1995PTC022303	GLOCHEM INDUSTRIES PRIVATE LIMITED	05/09/2011	-
U24239AP2002PTC038417	K.R.R. DRUGS & INTERMEDIATES PRIVATE LIMITED	30/09/2015	-
U74999TG2016PTC112294	PRICHE GENERICS PRIVATE LIMITED	04/10/2016	-
U74999TG2017PTC120942	LYTICA LABS PRIVATE LIMITED	01/12/2017	-

Name :

Mr. Sanjay Kumar Nayak

Designation :

Director

Address :

Qr. No. Mig/115, Kalinga Vihar, Patrapada, Bhubaneswar-751019, Odisha, India

Date of Birth/Age :

15.06.1971

Qualification :

Graduation and MBA

Date of Appointment :

13.02.2015

PAN No.:

AFSPN2806G

DIN No.:

06466666

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U24100DL2011PTC223635	ORGANOSYN LIFE SCIENCES PRIVATE LIMITED	01/10/2013	-

KEY EXECUTIVES

Name :	Mrs. Saritha Rani Premraj
Designation :	Company Secretary
Address :	H.No:230, Lal-Bazar, Trimulgherry, Hyderabad-500015, Telangana, India
Date of Birth/Age :	21.08.1987
Date of Appointment :	01.02.2016
PAN No.:	BBNPP2906D

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Subbarao Kattamuri	94
Manav Jassal	1
Sundeep Kattamuri	1
Kalyan Nagururu	1
Sushma Kattamuri	1
Parvati Kattamuri	1
Arun Prakash	1
Oragnosyn Life Science Private Limited (Allotted 541126 shares)	31675126
Gil Agrotech (India) Private Limited	32399553
Glochem Industries Limited	2125000
Total	66199779

AS ON 28.09.2017

Equity Share Break up	Percentage
Category
Promoters - Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

• The Company is primarily engaged in manufacturing and selling of finished dosage formulations.

• Research and experimental development on natural sciences and engineering.

[Registered Activity]

Products / Services :

NIC Code No.	Product Description
21002	Manufacture of Allopathic Pharmaceutical Preparations
72100	Research and experimental development on natural sciences and engineering

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 :	--
Contact No.:	--
Since How Long Known :	--
Maximum Limit Dealt :	--
Experience :	--
Remark :	--

Customers :

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

No. of Employees :

Not Available

Bankers :

Bank Name	Axis Bank Limited
Branch	No. 6-3-879-B, G Pulla Reddy Building, Greenlands, Begumpet, Hyderabad-500016, Telangana, India
Person Name (With Designation)	--
Contact Number	--
Name of Account Holder	--
Account Number	--
Account Since (Date/Year of Account Opening)	--
Average Balance Maintained (If Possible)	--
Credit Facilities Enjoyed (If any)	--
Account Operation	--
Remarks (If any)	--

Facilities :

SECURED LOANS	31.03.2017 INR In Million	31.03.2016 INR In Million
LONG TERM BORROWINGS
Term loans from banks	290.608	310.388
Other loans and advances	(48.504)	(29.004)
SHORT TERM BORROWINGS
Loans repayable on demand	15.958	6.771
Other loans and advances	209.198	110.438
Total	467.260	398.593

Auditors :
Name :	Walker Chandiok and Company LLP Chartered Accountants
Address :	7th Floor, Block III, White House, Kundan Bagh, Begumpet, Hyderabad, Telangana, India
PAN No.:	AAAFW4298E
Memberships :	Not Available
Collaborators :	Not Available
Holding Company :	Gil Agrotech (India) Private Limited, India CIN No.: U01119TG2010PTC069551
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives :	Organosyn Life Sciences Private Limited, India CIN No.: U24100DL2011PTC223635 Glochem Industries Private Limited, India CIN No.: U24110TG1995PTC022303

CAPITAL STRUCTURE

AFTER 28.09.2017

Authorised Capital : INR 800.000 Million

Issued, Subscribed & Paid-up Capital : INR 677.003 Million

AS ON 28.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
70000000	Equity Shares	INR 10/- each	INR 700.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
66199779	Equity Shares	INR 10/- each	INR 661.998 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	661.998	635.337	635.337
(b) Reserves and Surplus	(52.641)	(127.252)	(30.845)
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	14.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	623.357	508.085	604.492
(3) Non-Current Liabilities
(a) long-term borrowings	242.104	281.384	240.929
(b) Deferred tax liabilities (Net)	58.269	43.275	18.237
(c) Other long-term liabilities	0.000	0.000	0.000
(d) long-term provisions	2.197	2.262	1.652
Total Non-current Liabilities (3)	302.570	326.921	260.818
(4) Current Liabilities
(a) Short-term borrowings	225.156	117.209	21.051
(b) Trade payables	207.941	187.096	48.140
(c) Other current liabilities	113.833	156.440	93.341
(d) Short-term provisions	0.068	0.092	0.098
Total Current Liabilities (4)	546.998	460.837	162.630
TOTAL	1472.925	1295.843	1027.940
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	835.545	830.763	784.233
(ii) Intangible Assets	37.712	19.610	2.904
(iii) Tangible assets capital work-in-progress	0.343	0.024	5.720
(iv) Intangible assets under development	119.151	128.513	107.142
(b) Non-current Investments	0.000	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term loans and advances	18.729	10.964	11.779
(e) Other Non-current assets	1.670	2.021	2.373
Total Non-Current Assets	1013.150	991.895	914.151
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	196.143	239.139	88.574
(c) Trade receivables	212.492	27.970	15.059
(d) Cash and bank balances	8.441	10.192	0.709
(e) Short-term loans and advances	10.776	11.374	5.635
(f) Other current assets	31.923	15.273	3.812
Total Current Assets	459.775	303.948	113.789
TOTAL	1472.925	1295.843	1027.940

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Total Revenue from operations	935.174	374.414	71.445
	Other Income	54.072	8.652	4.466
	TOTAL	989.246	383.066	75.911
Less	EXPENSES
	Cost of Materials Consumed	435.045	213.436	37.189
	Purchases of Stock-in-Trade	67.372	0.000	0.000
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	16.625	(56.618)	(56.335)
	Employee benefit expense	87.518	70.401	29.003
	Other expenses	186.137	120.274	45.700
	TOTAL	792.697	347.493	55.557
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	196.549	35.573	20.354
Less	FINANCIAL EXPENSES	58.767	51.596	11.150
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	137.782	(16.023)	9.204
Less	DEPRECIATION/ AMORTISATION	67.215	55.234	25.235
	PROFIT/ (LOSS) BEFORE TAX	70.567	(71.257)	(16.031)
Less	TAX	14.995	25.150	18.235
	PROFIT/ (LOSS) AFTER TAX	55.572	(96.407)	(34.266)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD	(127.252)	(30.845)	3.421
	Balance Carried to the B/S	(71.680)	(127.252)	(30.845)
	Earnings / (Loss) Per Share (INR)	0.86	(1.52)	(0.61)

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	48.504	29.004	2.250
Net cash flows from (used in) operations	19.968	39.304	72.271
Net cash flows from (used in) operating activities	19.679	37.963	69.744

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365)	82.94	27.27	76.93
Account Receivables Turnover (Income / Sunday Debtors)	4.40	13.39	4.74
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	151.07	319.96	472.48
Inventory Turnover (Operating Income / Inventories)	1.00	0.15	0.23
Asset Turnover (Operating Income / Net Fixed Assets)	0.20	0.04	0.02

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.57	0.60	0.39
Debt Equity Ratio (Total Liability / Networth)	0.83	0.84	0.44
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.88	0.91	0.27
Fixed Assets to Networth (Net Fixed Assets / Networth)	1.59	1.93	1.49
Interest Coverage Ratio (PBIT / Financial Charges)	3.34	0.69	1.83

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin [(PAT / Sales) * 100]	%	5.94	(25.75)	(47.96)
Return on Total Assets ((PAT / Total Assets) * 100)	%	3.77	(7.44)	(3.33)
Return on Investment (ROI) ((PAT / Networth) * 100)	%	8.91	(18.97)	(5.67)

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	0.84	0.66	0.70
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	0.48	0.14	0.16
G-Score Ratio Financial (Networth / Total Assets)	0.42	0.39	0.59
G-Score Ratio Debt (Debts / Equity Capital)	0.78	0.67	0.42
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	0.84	0.66	0.70

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

FINANCIAL ANALYSIS

[all figures are INR Million]

DEBT EQUITY RATIO

Particular	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Share Capital	635.337	635.337	661.998
Reserves & Surplus	(30.845)	(127.252)	(52.641)
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	14.000
Net worth	604.492	508.085	623.357
Long-term borrowings	240.929	281.384	242.104
Short term borrowings	21.051	117.209	225.156
Current maturities of long-term debts	2.250	29.004	48.504
Total borrowings	264.230	427.597	515.764
Debt/Equity ratio	0.437	0.842	0.827

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	71.445	374.414	935.174
		424.059	149.770

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	(INR In Million)	(INR In Million)	(INR In Million)
Sales	71.445	374.414	935.174
Profit/ (Loss)	(34.266)	(96.407)	55.572
	(47.96%)	(25.75%)	5.94%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	No
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	Yes
11	Pan Card No. of Proprietor / Partners	Yes
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	No
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	--
33	Market information	--
34	Payments terms	No
35	Negative Reporting by Auditors in the Annual Report	No

COMPANY OVERVIEW

The Company is a Company domiciled in India and registered under the provisions of erstwhile the Companies Act, 1956 (the Act). The Company was a subsidiary of GIL Agrotech (India) Private Limited (GILAgro). Pursuant to the rights issues made in the current year on 27 September 2016, GIL Agro ceases to be the holding company of Evertogen Life Sciences Limited with effect from 27 September 2016. The Company is primarily engaged in manufacturing and selling of finished dosage formulations.

FINANCIAL PERFORMANCE AND OPERATIONS REVIEW:

During the year, the Company had earned a Profit of INR 55.572 million against the loss of INR 96.407 million for the previous financial year. The Company had achieved a Turnover of INR 989.246 million (Previous Year: INR 383.066 million) and EBIDTA of INR 196.548 million (Previous year: INR 35.573 million) mainly arising from supply of goods under Licensing of dossiers, Contract manufacturing and service income from Licensing of Dossiers and providing Contract Manufacturing/development services to the customers. During the year the Company has successfully completed and obtained the regulatory approval from MHRA, WHO GMP and LOCAL GMP.

The Companys R&D trials and product development on various dossiers is progressing well and they are happy to inform that the Company has received approval for four dossiers during the year. The Companys investment into product development activities is significant for the growth of the Company and the Company has incurred INR 15.632 million (Previous Year: INR 40.532 million) towards dossier development cost in 2016-17. The Company has capitalized the Product development expenditure. According to the accounting policy of intangibles on Product development, the cost of development of dossiers will be amortized over the period of 5 years from the date on which the product is commercialized.

DEVELOPMENTS IN THE INDUSTRY:

(i). GST Act (Tax reform)-

The introduction of GST would improve the operational efficiency by rationalizing the supply chain that could alone add 2 percent to the countrys Pharmaceutical industry. The biggest advantage for the companies would be the reduction in the overall transaction costs with the withdrawal of CST (Central Sales Tax). GST is also expected to lower the manufacturing cost. One more benefit likely to accrue due to GST is the reduction in the overall cost of technology. The import duty which is levied is not allowed as a tax credit under the present tax regulations. However, with GST this scenario will change. Under GST, duty charged on the import of such equipment and machinery would be allowed as a credit.

(ii). Policy support

Government unveiled Pharma Vision 2020 aimed at making India a global leader in end-to end drug manufacture, following are the highlights: Reduced approval time for new facilities to boost investments In this sector, 100 per cent FDI is allowed under automatic route Make in India initiative to promote manufacturing in India.

(iii). Trump Governance Effect (US Market)

Replacing Obamacare by new law (US Market): In March 2017, the US House of Representatives passed the 'American Health Care Act' to replace the PPACA (The Patient Protection and Affordable Care Act, nicknamed Obamacare). President Donald Trump had repeatedly made statements over reducing drug prices and increasing drug manufacturing in US. There is a talk of imposition of BAT, tax on imported drugs, to encourage domestic production in US. This is expected to affect the pricing of Indian drugs in US, when Trump administration is contemplating steps towards price reduction, any hike in price, even due to the tax, may affect the prospect of the Indian companies.

(iv). Increasing trend of manufacturing site audits by the USFDA

USFDA has focused on the quality aspect and in the last few months some Indian companies have received warning letters from USFDA for not following manufacturing standards at the production units. In a USFDA blog, Mary Lou Valdez, Association Commissioner for International Program, USFDA, has said that quality is a challenge for Indian pharma sector and has initiated actions accordingly. Out of the total 42 Good Manufacturing Practices (GMP) related warning letters issued by USFDA last year nine were addressed to Indian companies. It is probably the result of doubling of FDA inspections of pharma company sites since 2012. Edelweiss securities in its report apprehends that the number may go up even further as FDA would inspect 190 facilities that it had not in earlier five years. India has 572 USFDA compliant plants, the highest outside US.

(v). Brexit (Europe Market)

Brexit exclude one of the continents biggest buyer from the EUs single market from 2018 and consequently oblige companies to start obtaining separate certifications from agencies/authorities outside UK. It will also remove the expertise of UK government officials (with their traditionally industry friendly attitudes) from EU deliberations on pharmaceutical policy. And at the practical level, it will oblige EMA to quit its London headquarters and relocate elsewhere in Europe a prospect that is an administrative nightmare, but also, as its bosses openly admit, that it is already damaging staff motivation and impeding recruitment, with obvious implication for operational efficiency.

OUTLOOK FOR FUTURE:

The Company continues to focus and grow in each of the business segments, namely –

Out licensing of dossiers and supply of products

Contract manufacturing

Contract Development

Regulatory approvals are expected to be received during the year for some more products for which dossiers have been developed and the applications have been filed for approval during the previous years. Similarly, site variation approvals are expected to be received during the year for some more products, which have been validated and filed during the previous years. Company has also received and expected to receive regulatory approvals for some more products developed by the company during the previous year.

Commercial sales of the products are starting month after month for more and more products as and when the few more approvals are received and commercial orders are received. The sales revenue from the products are thus going up continuously month after month and the company is confident of achieving a turnover of over INR 1200.000 million in the current year.

Company continues to sign new contracts under each of the 3 business segments and the revenues/ incomes are expected to grow under the service income significantly during the year as well.

(i). Market Expansion in New Territories

Besides existing presence in regulated markets like EU, Canada, Australia and ongoing projects for US market, the company has started working on other semi-regulated markets like South East Asia/Asia Pacific and CIS/Russia with focused approach. Company has entered into business arrangement for New Zealand and Philippines markets through Licensing and supply agreement with reputed companies. Company has worked on market evaluation and entry strategies for Russia, Indonesia and Vietnam and is in discussion with few potential partners for commercialization.

(ii). Product Development

The company continues to lay the emphasis on developing new products with a view to launch the generic products immediately after the patent expiry and gain a significant/reasonable market share. Developing more and more new products and addition to its pipeline of products will help the Company in increasing the own products business segment which gives good margins/Profits.

Further, Company has screened about 30 molecules for development and is in the process of finalization to take up for development through market intelligence and evaluation of different data sources like Newport and Evaluate Pharma. Company has plans to subscribe IMS data for further due-diligence. Company has plans to further strengthen its portfolio for Anti-Diabetic (including Gliflozins and DPP-IV inhibitors), Cardio-vascular segment, Pain management and Non-Cytotoxic Oncology and Neurology.

INDEX OF CHARGE:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Amount	Address
1	G73747297	10477914	Axis Bank Limited	07/02/2014	29/12/2017	898000000.0	No. 6-3-879-B, G Pulla Reddy Building, Greenlands, Begumpet, Hyderabad-500016, Telangana, India

FIXED ASSETS:

Tangible Asset:

• Land
• Building
• Plant and equipment
• Furniture and Fixture
• Office equipment
• Computer
• Vehicles

Intangible Asset:

· Computer software

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 records 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	INR
US Dollar	1	INR 64.53
UK Pound	1	INR 90.13
Euro	1	INR 79.86

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	BHG

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.