MIRA INFORM REPORT

Report No. :	494149
Report Date :	28.02.2018

IDENTIFICATION DETAILS

Name :	AKUMS DRUGS AND PHARMACEUTICALS LIMITED
Registered Office :	304, Mohan Place, LSC, Saraswati Vihar, Delhi – 110034
Tel. No.:	91-11-47511000
Country :	India
Financials (as on) :	31.03.2016
Date of Incorporation :	19.04.2004
Com. Reg. No.:	55-125888
Capital Investment / Paid-up Capital :	INR 11.750 Million
CIN No.: [Company Identification No.]	U24239DL2004PLC125888
IEC No.: [Import-Export Code No.]	0505004429
GSTN : [Goods & Service Tax Registration No.]	07AAECA7090B1ZY
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAECA7090B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pharmaceuticals Formulation medicinal and Chemicals products. [Registered Activity]
No. of Employees :	Information denied by the management

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+	Low Risk	Business dealings permissible with low risk of default

Maximum Credit Limit :	USD 19030000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject was incorporated in the year 2004. It is a manufacturer and trader of all kind of Pharmaceuticals products and Formulations. For the financial year ended 2016, the revenue of the company has decreased by 41.63% but has maintain decent profit margin of 7.79%. The strong financial profile of the company marked by healthy net worth base along with strong debt coverage indicators due to low debt balance sheet profile. The company has favorable Earning per Share (EPS) of INR 374.16 against a face value (FV) of INR 10. However, rating strength are partially offset by unfavourable gap between trade payables and trade receivables. Business is active. Payments seems to be usually correct. In view of aforesaid, the company can be considered good business dealings at usual trade terms and conditions. Note: As per the Registrar of Companies date of balance sheet (i.e. financial filed) is shown as 31.03.2017 but documents related to financial for the year 31.03.2017 are not available from any sources.

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	CARE
Rating	Cash Credit facilities = A+
Rating Explanation	Adequate degree of safety and low credit risk
Date	20.02.2017
Rating Agency Name	CARE
Rating	Unallocated = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk
Date	20.02.2017

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 28.02.2018.

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.

INFORMATION DENIED BY

Tel. No. 91-11-47511000 (Office executive)

LOCATIONS

Registered / Corporate Office :	304, Mohan Place, LSC, Saraswati Vihar, Delhi – 110034, India
Tel. No.:	91-11-47511000
Fax No.:	91-11-27023256
E-Mail :	akumsho@akums.net cs@akums.net rp@akums.net excipients@akums.net
Website :	www.akums.in
Unit-1 (Oral Solid Dosage Forms) :	19, 20 and 21, Sector - 6A, I.I.E, SIDCUL, Ranipur, Haridwar – 249403, Uttarakhand, India
Unit-2 (Liquid Orals) :	22, Sector - 6A, I.I.E, SIDCUL, Ranipur, Haridwar - 249403, Uttarakhand, India
Unit-3 (Injectables) :	2, 3, 4 and 5, Sector – 6B, I.I.E, SIDCUL, Ranipur, Haridwar - 249403, Uttarakhand, India
Unit-4 (Hormonal Preparations) :	48, Sector – 6A, SIDCUL, Haridwar – 249403, Uttarakhand, India
Unit-5 (Ointments and Cosmetics) :	47, Sector-6A, SIDCUL, I.I.E.,  Ranipur, Haridwar – 249403, Uttarakhand, India
Unit-6 (Ayurvedic, Food supplement, Nutraceuticals) :	13, Sector 6A, SIDCUL, Haridwar – 249403, Uttarakhand, India
Unit-7 (Oral solid dosages, injections, ointment and cosmetics) :	Pure and Cure Healthcare Private Limited 26A, 27, 28, 29 and 30, Sector – 8A, IIE, Ranipur, Haridwar – 249403, India
Unit-8 (Cephalosporin Unit) :	Malik Lifesciences Private Limited 16, Vardhaman Industrial Estate, Village Bahadarpur Saini, Roorkee, Haridwar, India
Unit-9 (Penicillin Unit) :	Malik Lifesciences Private Limited 16, Vardhaman Industrial Estate, Village Bahadarpur Saini, Roorkee, Haridwar, India
Unit-10 (Under Construction) :	Village-Tezpur, Mouza, Rampur, District - Kamrup, Guwahati (Assam), India
Centralized R and D Centre :	Plot No. 6, Sector 6B, SIDCUL, Haridwar – 249403, India
Mumbai Branch Office :	503/504, Hubtown Solaris, Professor NS Phadke Marg, Andheri (East), Mumbai – 400069, Maharashtra, India
Ahmedabad Branch Office :	405, Pushpak Tower, Ahmedabad – 380015, Gujarat, India
Bangalore Branch Office :	43/33, 59^th A-Cross, 4^th N Block, Rajaji Nagar, Bangalore – 560010, Karnataka, India

DIRECTORS

AS ON 31.03.2017

Name :

Mr. Sanjeev Jain

Designation :

Whole-time Director

Address :

E - 1052, Saraswati Vihar, Delhi – 110034, India

Date of Birth/Age :

11.04.1966

Qualification :

Master Degree

Date of Appointment :

19.04.2004

PAN No.:

AAAPJ1897J

DIN No.:

00323433

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74899DL1986PTC025186	WELCURE PHARMACEUTICALS PRIVATE LIMITED	21/08/1986	-

Name :

Mr. Sandeep Jain

Designation :

Whole-time Director

Address :

E - 1052, Saraswati Vihar, Delhi – 110034, India

Date of Birth/Age :

05.08.1967

Qualification :

Master Degree

Date of Appointment :

19.04.2004

PAN No.:

AAAPJ1891Q

DIN No.:

00323476

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U74899DL1986PTC025186	WELCURE PHARMACEUTICALS PRIVATE LIMITED	04/10/1999	-

Name :

Mr. Vijayapal Singh Rawat

Designation :

Whole-time Director

Address :

19-21, Sector-6A, Ranipur, Haridwar – 249403, Uttarkhand, India

Date of Birth/Age :

13.09.1961

Qualification :

Master in Science

Date of Appointment :

27.09.2015

PAN No.:

AENPR5657K

DIN No.:

06744017

Name :

Mr. Narendra Dev Sachdeva

Designation :

Director

Address :

40/22, 3^rd Floor, C R Park, Delhi – 110019, India

Date of Birth/Age :

15.10.1950

Qualification :

B. Pharma

Date of Appointment :

27.08.2004

PAN No.:

AYZPS4234M

DIN No.:

00330005

Name :

Mr. Nand Lal Kalra

Designation :

Director

Address :

4 BA 11, Jawahar Nagar, Jaipur – 302004, Rajasthan, India

Date of Birth/Age :

05.02.1950

Qualification :

Masters In Science

Date of Appointment :

01.06.2012

PAN No.:

AFTPK6497D

DIN No.:

05268554

Name :

Ms. Neena Vivek

Designation :

Director

Address :

3rd Floor, H-1/135-136, Sector - 16, Rohini, Delhi – 110085, India

Date of Appointment :

13.03.2015

DIN No.:

07118115

Other Directorship:

CIN/FCRN	Company Name	Begin Date	End Date
U63021DL2004PTC299408	MALIK LIFESCIENCES PRIVATE LIMITED	23/07/2017	-
U24232DL2005PTC266385	PURE AND CURE HEALTHCARE PRIVATE LIMITED	24/09/2017	-
U74899DL1994PLC057323	MAXCURE NUTRAVEDICS LIMITED	23/07/2017	-

KEY EXECUTIVES

Name :	Mr. Dharamvir Malik
Designation :	Company Secretary
Address :	RZ/A-1/20, 2nd Floor, Mahavir Enclave, Near Bank of Baroda, New Delhi -110045, India
Date of Birth/Age :	21.06.1983
Date of Appointment :	01.04.2014
PAN No.:	AQPPM7439Q

MAJOR SHAREHOLDERS

AS ON 31.03.2017

Names of Shareholders	No. of Shares
Sanjeev Jain	587075
Lata Jain	75
Sanjeev Jain J/w Arushi Jain	300
Lata Jain J/w Umang Jain	50
Sandeep Jain	587150
Sandeep Jain J/w Kanishk Jain	300
Manan Jain U/g Sandeep Jain	50
Total	1175000

AS ON 24.09.2017

Equity Share Break up	Percentage
Category
Promoters – [Individual/Hindu Undivided Family – Indian]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pharmaceuticals Formulation medicinal and Chemicals products. [Registered Activity]

Products / Services :

ITC Code	Product/ Services Description
30044040	Tablets

NIC Code	Product/ Services Description
2100	Manufacturer of Pharmaceutical, Medicinal & chemical products.

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Not Divulged

PRODUCTION STATUS – (NOT AVAILABLE)

GENERAL INFORMATION

Suppliers :

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

Customers :

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

No. of Employees :

Information denied by the management

Bankers :

Banker Name	State Bank of India
Branch Address	Industrial Finance Branch, 14^th Floor, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110001, 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)	--

• Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi - 110001, India

Facilities :

SECURED LOANS	31.03.2016 INR In Million	31.03.2015 INR In Million
LONG TERM BORROWINGS
Term Loan from Bank	120.000	240.000
SHORT TERM BORROWINGS
Working capital loan from Banks	379.388	701.496
Total	499.388	941.496

Auditors :
Name :	Anil Jain D.D and Company Chartered Accountants
Address :	611, Surya Kiran Building, 19 Kasturba Gandhi Marg, New Delhi -110 001, India
PAN No.:	AARFA8414D
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Companies : (As on 2017)	Amazing Research Laboratories Limited, India [CIN No.U99999DL1998PLC095297] Delcure Lifesciences Limited, India [CIN No.U24100DL2013PLC286876] Malik Lifesciences Private Limited, India [CIN No.U63021DL2004PTC299408] Maxcure Nutravedics Limited, India [CIN No.U74899DL1994PLC057323] May and Baker Pharmaceuticals Limited, India [CIN No.U15400DL2006PLC145272] Nicholas Healthcare Limited, India [CIN No.U24232DL2009PLC186841] Plenteous Pharmaceuticals Limited, India [CIN No.U24232DL2008PLC185686 Pure and Cure Healthcare Private Limited, India [CIN No.U24232DL2005PTC266385] Unosource Pharma Limited, India [CIN No.U24233DL2013PLC262364]
Subsidiary Companies : (As on 31.03.2016)	Akumentis Healthcare Limited, India [CIN No. U72900DL2010PLC206414] Amazing Research Laboratories Limited, India [CIN No.U99999DL1998PLC095297] Corwis Pharmaceuticals Limited, India [CIN No.U24230DL2006PLC147642] Delcure Lifesciences Limited, India [CIN No.U24100DL2013PLC286876] Gatle Healthcare Limited, India [CIN No.U24297DL2012PLC243745] Maxcure Nutravedics Limited, India [CIN No.U74899DL1994PLC057323] Plenteous Pharmaceuticals Limited, India [CIN No.U24232DL2008PLC185686 Malik Lifesciences Private Limited, India [CIN No.U63021DL2004PTC299408] May and Baker Pharmaceuticals Limited, India [CIN No.U15400DL2006PLC145272] Nicholas Healthcare Limited, India [CIN No.U24232DL2009PLC186841] Plenteous Pharmaceuticals Limited, India [CIN No.U24232DL2008PLC185686 Pure and Cure Healthcare Private Limited, India [CIN No.U24232DL2005PTC266385] Unosource Pharma Limited, India [CIN No.U24233DL2013PLC262364
Enterprises which are owned, or have significant influence of or are partners with Key Management personnel and their relatives: (As on 31.03.2016)	Upadhrish Reserchem LLP

CAPITAL STRUCTURE

AS ON 24.09.2017

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000	Equity shares	INR 10/- each	INR 12.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1175000	Equity Shares	INR 10/- each	INR 11.750 Million

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET (STANDLONE)

SOURCES OF FUNDS	31.03.2016	31.03.2015	31.03.2014
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	11.750	11.750	11.750
(b) Reserves & Surplus	6648.830	6206.186	5359.833
(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)	6660.580	6217.936	5371.583
(3) Non-Current Liabilities
(a) long-term borrowings	120.000	240.000	15.122
(b) Deferred tax liabilities (Net)	225.862	220.293	234.976
(c) Other long term liabilities	20.600	21.252	22.671
(d) long-term provisions	211.014	202.086	201.850
Total Non-current Liabilities (3)	577.476	683.631	474.619
(4) Current Liabilities
(a) Short term borrowings	379.388	701.496	1245.165
(b) Trade payables	410.443	572.230	1110.557
(c) Other current liabilities	344.042	232.620	258.372
(d) Short-term provisions	1.424	141.253	52.544
Total Current Liabilities (4)	1135.297	1647.599	2666.638
TOTAL	8373.353	8549.166	8512.840
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	2283.231	2332.779	2554.277
(ii) Intangible Assets	31.013	40.346	42.450
(iii) Capital work-in-progress	0.000	0.000	0.000
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	217.838	39.351	44.397
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	3291.249	3632.717	2031.161
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	5823.331	6045.193	4672.285
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	1200.226	918.212	1608.615
(c) Trade receivables	1163.151	1425.133	1911.317
(d) Cash and cash equivalents	20.805	20.150	211.548
(e) Short-term loans and advances	165.840	140.478	109.075
(f) Other current assets	0.000	0.000	0.000
Total Current Assets	2550.022	2503.973	3840.555
TOTAL	8373.353	8549.166	8512.840

PROFIT & LOSS ACCOUNT (STANDLONE)

	PARTICULARS	31.03.2016	31.03.2015	31.03.2014
	SALES
	Income	5643.047	9667.950	8966.357
	Other Income	440.399	377.494	212.866
	TOTAL	6083.446	10045.444	9179.223
Less	EXPENSES
	Cost of Materials Consumed	3802.236	6629.618	6121.779
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(236.035)	106.057	(33.781)
	Employees benefits expense	1020.444	1101.802	916.684
	Exceptional Item	30.000	0.000	0.000
	Other expenses	629.540	637.590	548.499
	TOTAL	5246.185	8475.067	7553.181
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	837.261	1570.377	1626.042
Less	FINANCIAL EXPENSES	77.499	138.495	76.518
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	759.762	1431.882	1549.524
Less	DEPRECIATION/ AMORTISATION	221.271	237.063	143.542
	PROFIT/ (LOSS) BEFORE TAX	538.491	1194.819	1405.982
Less	TAX	98.847	348.466	349.034
	PROFIT/ (LOSS) AFTER TAX	439.644	846.353	1056.948
	Earnings / (Loss) Per Share (INR)	374.16	720.30	899.53

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2016	31.03.2015	31.03.2014
Current Maturities of Long term debt	120.000	21.252	60.490
Net cash flow from (used in) operations	315.294	1841.094	753.489
Net cash flow from operating activities	34.397	1680.833	1530.302

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Average Collection Days (Sundry Debtors / Income * 365 Days)	75.23	53.80	77.81
Account Receivables Turnover (Income / Sundry Debtors)	4.85	6.78	4.69
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	39.40	31.50	66.21
Inventory Turnover (Operating Income / Inventories)	0.70	1.71	1.01
Asset Turnover (Operating Income / Net Fixed Assets)	0.36	0.66	0.63

LEVERAGE RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.16	0.22	0.32
Debt Equity Ratio (Total Liability / Networth)	0.09	0.15	0.25
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.17	0.26	0.50
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.35	0.38	0.48
Interest Coverage Ratio (PBIT / Financial Charges)	10.80	11.34	21.25

PROFITABILITY RATIOS

PARTICULARS		31.03.2016	31.03.2015	31.03.2014
Net Profit Margin [(PAT / Sales) * 100]	%	7.79	8.75	11.79
Return on Total Assets ((PAT / Total Assets) * 100)	%	5.25	9.90	12.42
Return on Investment (ROI) ((PAT / Networth) * 100)	%	6.60	13.61	19.68

SOLVENCY RATIOS

PARTICULARS	31.03.2016	31.03.2015	31.03.2014
Current Ratio (Current Assets / Current Liabilities)	2.25	1.52	1.44
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	1.19	0.96	0.84
G-Score Ratio Financial (Networth / Total Assets)	0.80	0.73	0.63
G-Score Ratio Debt (Debts / Equity Capital)	52.71	81.94	112.41
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	2.25	1.52	1.44

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	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Share Capital	11.750	11.750	11.750
Reserves & Surplus	5359.833	6206.186	6648.830
Share Application money pending allotment	0.000	0.000	0.000
Net worth	5371.583	6217.936	6660.580
Long Term borrowings	15.122	240.000	120.000
Short Term borrowings	1245.165	701.496	379.388
Current Maturities of Long term debt	60.490	21.252	120.000
Total borrowings	1320.777	962.748	619.388
Debt/Equity ratio	0.246	0.155	0.093

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Sales	8966.357	9667.950	5643.047
		7.825	(41.631)

NET PROFIT MARGIN

Net Profit Margin	31.03.2014	31.03.2015	31.03.2016
	INR In Million	INR In Million	INR In Million
Sales	8966.357	9667.950	5643.047
Profit	1056.948	846.353	439.644
	11.79%	8.75%	7.79%

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	11.750	11.750
(b) Reserves & Surplus	6281.880	4928.448
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Minority interest	121.111	26.253
Total Shareholders’ Funds (1) + (2)	6414.741	4966.451
(3) Non-Current Liabilities
(a) long-term borrowings	516.842	778.750
(b) Deferred tax liabilities (Net)	394.062	254.026
(c) Other long term liabilities	60.070	63.345
(d) long-term provisions	258.664	233.970
Total Non-current Liabilities (3)	1229.638	1330.091
(4) Current Liabilities
(a) Short term borrowings	1355.055	1562.530
(b) Trade payables	1506.644	1532.371
(c) Other current liabilities	1035.379	829.678
(d) Short-term provisions	65.381	197.446
Total Current Liabilities (4)	3962.459	4122.025
TOTAL	11606.838	10418.567
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	4901.223	4390.005
(ii) Intangible Assets	103.958	53.043
(iii) Capital work-in-progress	67.623	0.000
(iv) Intangible assets under development	37.557	0.000
(b) Non-current Investments	178.988	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	512.533	366.448
(e) Other Non-current assets
Total Non-Current Assets	5801.882	4809.496
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	2887.218	2608.462
(c) Trade receivables	2591.228	2727.598
(d) Cash and cash equivalents	136.813	118.703
(e) Short-term loans and advances	128.690	95.569
(f) Other current assets	61.007	58.739
Total Current Assets	5804.956	5609.071
TOTAL	11606.838	10418.567

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS	31.03.2016	31.03.2015
	SALES
	Income	16509.143	14642.695
	Other Income	56.301	68.501
	TOTAL	16565.444	14711.196
Less	EXPENSES
	Cost of Materials Consumed	8129.449	7686.360
	Purchases of Stock-in-Trade	1302.363	957.580
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(266.825)	(301.241)
	Employees benefits expense	3146.435	2681.894
	Other expenses	2766.960	2383.283
	TOTAL	15078.382	13407.876
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	1487.062	1303.320
Less	FINANCIAL EXPENSES	215.227	225.654
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	1271.835	1077.666
Less	DEPRECIATION/ AMORTISATION	384.011	310.323
	PROFIT/ (LOSS) BEFORE TAX	887.824	767.343
Less	TAX	442.472	384.878
	PROFIT/ (LOSS) AFTER TAX	445.352	382.465
	Profit (Loss) of minority interest	169.408	52.834
	TOTAL PROFIT (LOSS) FOR PERIOD	614.761	430.653
	Earnings / (Loss) Per Share (INR)	379.02	325.5

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	Yes
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	No
8	Designation of contact person	Yes
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	No
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

OPERATING RESULTS

The Standalone revenue (Sales and other incomes) of Akums Drugs and Pharmaceuticals Limited (Akums) has been INR 6083.446 million (Previous Year INR 10045.444 million). Sales have been to INR 5643.047 million (Previous Year INR 9667.950 million). Other Income increased to INR 440.399 million from INR 377.494 million.

The EBIDTA had been INR 837.261 million (Previous year 1570.377 million). The Profit before tax had been INR 538.491 million (Previous year 1194.819 million). The net profits after tax (including capital subsidy) had been INR 439.644 million (Previous Year INR 846.353 Million).

The financials for Financial Year 2015-16 clearly reflect the impact of expiry of excise exemption limit of Plant-1 of the Company, which has been the biggest manufacturing and revenue generating unit of the Company and was contributing approximately 70% revenue of the Company.

Therefore, financial of the current year are not strictly comparable to the financial numbers for Financial Year 2014-15. The Company would upgrade its Plant-I for export purpose.

STATE OF AFFAIRS OF THE COMPANY

Akums undertakes contract manufacturing of pharmaceuticals formulations in almost all therapeutic segments and in the form of tablets, Capsules, Soft gelatin, dry syrup, liquid orals, injections dry and liquids, pre-filled syringes and eye & ear drops, hormones, ointments, cosmetics, Ayurveda’s, herbals, nutraceuticals and other similar products for domestic as well as multi-national Pharmaceutical Companies in India and abroad.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

SECTOR STRUCTURE AND DEVELOPMENT

GLOBAL PHARMACEUTICAL SECTOR

Standing at the midpoint of 2016, the pharmaceutical sector looks in very good shape, the market for medicines could be worth nearly $1.6 trillion by 2020, indeed, it could be worth even more. Demand for pharma’s products is rising dramatically, as the global population increasing same time it being more sedentary. In 2010, there were an estimated 6.9 billion people. By 2020, there will be more than 7.6 billion, and, if present lifestyle would continue, people would be more health conscious.

More than 20% will be overweight or obese; and more than 13% will be 60 or older. Thus number of people reaching old age is mounting, and the prevalence of a chronic diseases doubles every five years after the age of 65.

In short, there are more people – and more sick or elderly people – in the world today than ever before. More people have access to affordable healthcare than ever before, and, in coming years, access to healthcare may well be regarded everywhere as a basic human right.

CHALLENGES FOR THE GLOBAL PHARMACEUTICAL SECTOR

Some of the challenges the pharmaceutical sector faces include research and development failures, changes in regulatory aspects, patent, litigation, patent, and foreign currency movements.

However, the major challenge is the drug pricing, which has been a major global debate. As the population over age 65 is increasing. A higher incidence of lifestyle-related diseases is further fueling governments’ healthcare expenditure worldwide.

The governments across the world are trying to curb these healthcare costs either by drug price revisions, asking for higher discounts and rebates to the manufacturers, or by promoting generic drugs.

However, with the launch of innovative drugs, pharmaceutical companies can bring in sales growth. The life-saving abilities of the drugs fetch higher prices and wider margins.

INDIAN PHARMACEUTICAL SECTOR

Indian pharmaceutical sector accounts for about 2.4 per cent of the global pharmaceutical sector in value terms and 10 per cent in volume terms and is expected to expand at a Compound Annual Growth Rate (CAGR) of 15.92 per cent to US$ 42 billion by 2020 from US$ 20 billion in 2015.

With 71 per cent market share, generic drugs form the largest segment of the Indian pharmaceutical sector. The country accounts for the second largest number of Abbreviated New Drug Applications (ANDAs) and is the world’s leader in Drug Master Files (DMFs) applications with the US.

Indian drugs are exported to more than 200 countries in the world, with the US as the key market. Generic drugs account for 20 per cent of global exports in terms of volume, making the country the largest provider of generic medicines globally and expected to expand even further in coming years. Pharmaceuticals Exports Promotion Council (Pharmexcil) expects pharmaceutical exports to reach US$ 26 billion in 2016.

The Indian pharma sector, which is expected to grow over 15 per cent per annum between 2015 and 2020, will outperform the global pharma sector, which is set to grow at an annual rate of 5 per cent between the same periods.

India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level.

ROAD AHEAD

The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, driven by increasing consumer spending, rapid urbanization, and raising healthcare insurance among others.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes and anti-depressants that are on the rise. In 2016, growth is expected to continue to be healthy, as the momentum continues and improving economic growth allows individuals more legroom to spend on health.

The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.

In addition, the thrust on rural health programmers and lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.

Yet pharma also faces some enormous obstacles. Innovation has declined, the regulations are becoming more onerous and market conditions are getting harsher, as healthcare costs everywhere keep rising.

The regulatory environment is simultaneously getting more rigorous.

INDUSTRY STRUCTURE AND DEVELOPMENT

CONTRACT MANUFACTURING IN PHARMA INDUSTRY

The pharmaceutical companies are looking for various opportunities to reduce cost, improve efficiencies, improve pipeline and reduce the time-to-market. To reduce cost, the pharmaceutical companies are adopting different strategies like outsourcing (in areas like manufacturing and product developments and other functions). The marketing companies have specialized themselves in marketing and exports and left the activity of product development and manufacturing to contract manufacturing, who have developed their expertise in those areas.

DRIVERS FOR CONTRACT MANUFACTURING

The key objectives and drivers for outsourcing the manufacturing functions for pharma marketing companies are as follows:

• Improving cost
• Better capacity management with flexibility to handle business needs

• Effectively utilizing internal core expertise and other resources (including financial) and more opportunity to focus on core competencies of marketing

• Quick time-to-market
• Leveraging external expertise (and addressing the challenge of non-availability of internal resources and capabilities)
• Investing less capital (and leveraging financial resource in other core activities)
• Leveraging vendor’s innovative, state-of-the-art process and production technologies to support the rapid technical transfer of products from R and D to full scale commercial manufacturing.

The pharmaceutical contract manufacturing (PCM) industry and Contract Research and Manufacturing Service (CRAMS) continues to grow at a steady pace, driven by cost pressures, stringent regulatory requirements and patent expires.

Contract manufacturing approach is adopted for improving cost, process and capabilities as Contract Manufacturing Organizations (CMO) can leverage their skills and competencies to improve process, avail volume discounts on raw material on account of economies of scale. The knowledge and experience of CMO helps marketing companies to get the best practices and leverage experiences of contract manufacturing companies for their products.

Apart from the above CMO provides a range of services like product development, obtaining DCGI approvals, lesser costs due to manufacturing in excise free zones and other related services. CMO employs latest manufacturing facilities and techniques and has the capability to understand and deploy multiple regulatory requirements. CMO brings maturity while integrating with customer process and system. To provide efficient and

Integrated services, CMO integrates with supply chain activities of the pharmaceutical companies.

OUTSOURCING STRATEGY DECISION FRAMEWORK

Their decision to outsource the marketing companies base on the following factors:

• Company internal capabilities and capacity

• Product development related to capabilities of manufacture & ability to take risks
• Strategic importance; and availability of pharmaceutical formulations at lower price because of manufacturing in tax free zones.
• Cost of internal operations; being higher than contract manufacturer.
• Availability of internal resources (including Financial)
• Stage of drug lifecycle

PREVAILING TREND:

The cost of drug development has increased in last few years forcing pharmaceutical companies to adopt new approaches towards drug discovery and delivery. As part of various core and non-core operations, companies are increasingly deploying outsourcing strategies to increase revenues through faster and cost effective drug development. In addition to outsourcing other non-core and secondary functions, most of the pharmaceutical companies outsourcing manufacturing functions. Consequently, cost is controlled with flexible model, without making any large capital investment and also allows companies to invest and focus resources on their core competencies to generate more value, through their expertise in marketing.

Most pharma companies evaluate its manufacturing strategy based on new options, challenges, internal capabilities and constraints.

Recently, a large pharmaceutical companies announced that they will outsource all the manufacturing functions of the company within the next 10 years as they do not consider manufacturing as their “core” activity, but “innovation and brand-building in marketing” as core activity.

The Global Pharmaceuticals Contract Manufacturing market is worth about USD 60 billion. This market is highly fragmented.

Contract manufacturing in India is forecast to expand at a CAGR of 20%. Big Pharma Companies are increasingly outsourcing manufacturing to low cost destinations due to cost and margin pressures, India is one of the best market for Pharma Contract Manufacturing, which offer skilled manpower and a robust manufacturing infrastructure.

AKUMS POSITION IN PHARMA CONTRACT MANUFACTURING INDUSTRY

Akums is India’s largest contract manufacturing company engaged in manufacturing of pharmaceuticals formulations, Ayurveda / herbal preparations, hormones, nutraceuticals and more, in all dosage forms like tablets, capsules, injectable, Ear and Eye drops, hormonal preparations, liquid orals, creams & ointments, dry syrup etc. Akums manufacturers over 10% of India’s total medicine consumptions.

Quality, innovation and customer satisfaction are virtues at Akums. The approach is technology driven to serve the emerging needs in the ever expanding market. The 10 (Ten) state of art manufacturing facilities dedicated to separate dosage forms across therapeutic segments are equipped with sophisticated and ultra-modern equipments & machines, with huge manufacturing capacities in all sections Akums has an acumen to innovate and dedication to provide quality products.

Akums carry out various steps for its customers like research, testing, regulatory approvals, manufacturing, customization packaging & logistics support etc. which prove true the concept of “one stop shop”. Akums has state of the art technology, equipment, automation and robust Health, Safety & Environment procedures to ensure the wellbeing of all employees and protection of the environment; and to provide best quality medicines to the customers.

In their continuous pursuit of a healthier world, we are continuously working toward redesigning global healthcare while setting new goals for ourselves.

AKUMS’ BUSINESS MODEL

Akums focus rests on specialized products with limited reliance on commodity products. The company’s strengths lies in developing new formulations, conducting Stability studies, undertaking Bio-equivalence studies, clinical trials, obtaining Drug Controller General of India’s (DCGI) approval for manufacturing and marketing new Fixed Dose Combinations (FDCs) and formulations; and thereafter offering new formulations with Akums own technology to its customers under marketing Company’s brand names.

Business Model Includes –

a. Contract Research and Manufacturing Services (CRAMS) in Medicines.

b. Research and Development of New Formulations and obtaining DCGI approval

c. Technology Development and Transfer to others

d. Technical Collaboration and Joint Ventures

e. Offering tailor made Specialized products

f. Arranging Clinical Trials and Bio-equivalence Studies

g. Research and Development of formulations based on N.D.D.S

h. Patenting of Innovative Drugs

i. Development in Process and Packaging

j. Sustained Improvement in Product Quality.

k. Loan License

l. Institutional Business

Akums manufacture Pharmaceutical Formulations in most of the Therapeutic Segments and in almost all dosage forms, covering about 4000 formulations. It is a research based company manufacturing products on contract basis mostly with its own technology.

INVESTING FOR FUTURE:

Akums continue to strengthen and build its leadership position in pharma contract manufacturing business segments. The Company has large 10 manufacturing facilities at Haridwar, out of which 9 facilities are eligible for excise exemption which differ from unit to unit. As a part of the focus towards continues serve its customers for speedy delivery of finished products at best possible competitive rates, the Company is under process to establish a large manufacturing facility at Guwahati (Assam) in order to continuously provide excise benefits to its valuable clientele.

OUTLOOK

An analysis by IMS shows that the Indian Pharmaceuticals Market will likely grow between 10% and 11% year on year to more than INR 0.100 million by 2018. This growth will be driven by increasing affordability, increasing access particularly as private providers expand to lower tier towns and cities and favorable demographic factors – an overall increase in Indian population as well as increased prevalence of chronic diseases.

INDEX OF CHARGE:

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	C63041800	10556644	STANDARD CHARTERED INVESTMENTS AND LOANS (INDIA) LIMITED	24/03/2015	01/09/2015	-	300000000.0	Floor No. 6, Crescenzo Building, C-38/39,"G" Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India
2	C77442853	10217825	Standard Chartered Bank	27/04/2010	28/01/2016	-	150000000.0	Credit Risk Controlnarain Manzil, 23 Barakhamba Road, New Delhi - 110001, India
3	G32268138	10019466	State Bank of India	25/08/2006	29/12/2016	-	600000000.0	Industrial Finance Branch, 14th Floor, Jawahar Vyapar Bhawan, 1, Tolstoy Marg, New Delhi – 110001, India
4	C53455101	10217291	Standard Chartered Bank	26/03/2010	21/12/2010	12/05/2015	250000000.0	Credit Risk Controlnarain Manzil, 23 Barakhamba Road, New Delhi - l110001, India
5	B83390161	10120161	ICICI BANK LIMITED	21/08/2008	-	29/08/2013	200000000.0	Landmarkrace Cource Circle, Alkapuri, Vadodara-390015, Gujarat, India
6	B35066018	10032291	ICICI BANK LIMITED	29/11/2006	-	29/02/2012	200000000.0	Landmarkrace Cource Circle, Alkapuri, Vadodara-390015, Gujarat, India
7	B18495754	10050600	State Bank of India	25/08/2006	27/01/2011	08/08/2011	92100000.0	Commercial Branch M-47, Connaught Circus, New Delhi-110001, India
8	A59661512	10107784	STANDARD CHARTERED BANK	23/06/2008	-	01/04/2009	150000000.0	Credit Risk Control Narain Manzil, 23 Barakhamba Road, New Delhi-110001, India
9	A04341079	90039296	STATE BANK OF INDIA	30/08/2004	-	25/08/2006	132000000.0	Wazirpur Industrial Area, Delhi-110052, India
10	A04340576	80011044	STATE BANK OF INDIA	30/08/2004	-	25/08/2006	52000000.0	Wazirpur Industrial Area, Delhi-110052, India

FIXED ASSETS:

Tangible Assets

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

Intangible assets

• Brands and trade marks
• Licenses and franchise

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	INR
US Dollar	1	INR 64.85
UK Pound	1	INR 90.58
Euro	1	INR 79.97

INFORMATION DETAILS

Information Gathered by :	PON
Analysis Done by :	VAR
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.