MIRA INFORM REPORT

Report No. :	485179
Report Date :	11.01.2018

IDENTIFICATION DETAILS

Name :	CLARIS LIFESCIENCES LIMITED (w.e.f. 2010)
Formerly Known As :	CORE LABORATORIES LIMITED (w.e.f. 28.07.1994) ORACLE LABORATORIES LIMITED
Registered Office :	Claris Corporate Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, Gujarat
Tel. No.:	91-79-26563331/ 66309330
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	19.07.1994
Com. Reg. No.:	04-022543
Capital Investment / Paid-up Capital :	INR 545.678 Million
CIN No.: [Company Identification No.]	L85110GJ1994PLC022543
IEC No.:	Not Divulged
GSTIN :	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	Not Available
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Subject is engaged into Manufacturer and Wholesaler of Drugs and Pharmaceuticals. [Registered Activity]
No. of Employees :	143 (Approximately) Total manpower of the Group is 2662 nos comprising of 1640 employee and 1022 contact workers.

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 21150000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject was incorporated in the year 1994 and it is engaged in wholesale of pharmaceutical and medical products. ‘Athanas Enterprise Private Limited’ holds the maximum stake of 50.13% in the company. In February 2017, the company has transferred the ownership of its subsidiary company i.e. Claris Injectables Limited to Baxter International INC (Baxter Group) based in USA. As per financials of March 2017, the company has registered sharp decline in its revenue as compared to its previous year revenue and has reported a good profit margin of 54.72% under review. Rating takes into consideration the company’s established track record of business operations marked by sound net worth along with low solvency indicators and good liquidity position. Share are quoted high on Stock Exchanges. (Share are traded at a price of INR 356.45 against its face value of INR 10 on BSE.) However, rating strength is partially offset by product concentration risk as its branded formulations basket has only three large segment anaesthesia, anti-infective and renal therapy along with its dependence on selective brands, exposing it to brand concentration risk and limited diversification of product portfolio. As per quarterly financials of September 2017, the company has achieved a revenue of INR 27.3 million and reported decent profit margin of 6.21%. Payments are reported to be regular. 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 (30.06.2017)	Current Rating (30.09.2017)
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

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 11.01.2018

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/ Corporate Office :	Claris Corporate Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, Gujarat, India
Tel. No.:	91-79-26563331/ 66309330/ 66309339
Mobile No.:	Not Available
Fax No.:	91-79-26408053
E-Mail :	secretarial.corp@clarislifesciences.com
Website :	http://www.clarislifesciences.com
Factory :	Sarkhej-Bavla Road, Chacharvadi-Vasna, Ahmedabad - 382213, Gujarat, India
Tel. No.:	91-2717-661999

DIRECTORS

As on 31.03.2017

Name :	Mr. Arjun Sushilkumar Handa
Designation :	Chairman and Managing Director
Address :	Sharanya, Judges Bunglows Road, Vastrapur, Bodakdev, Ahmedabad – 380054, Gujarat, India
Date of Appointment :	26.09.2011
DIN No.:	00159413
Name :	Mr. Chandrasingh Shivrambhai Purohit
Designation :	Whole time Director
Address :	17, Rajvi Emeralds, Near Gala Gymkhana, Bopal, Ahmedabad – 380054, Gujarat, India
Date of Appointment :	03.07.2009
DIN No.:	00199651
Name :	Mr. Shyamsunder Sharma
Designation :	Whole Time Director (Additional Director)
Address :	A-302, Sukirti Park, Near Kanchanbhumi Apartment, 100 Ft. Ring Road, Satelite Ahmedabad – 380015, Gujarat, India
Date of Appointment :	20.05.2017
DIN No :	07563680
Name :	Mr. Surrinder Lal Kapur
Designation :	Chairman and Non Executive Director
Address :	161 A/1 Western Avenue, Sainik Farms, New Delhi – 110062, India
Date of Appointment :	26.09.2008
Name :	Mr. Tiruponitura Venkatraman Ananthanarayanan
Designation :	Non-Executive and Director
Address :	41/135 (Old), New 19/165 Thangamalai Road, Kotagiri – 643217, Tamilnadu, India
Date of Appointment :	28.01.2008
DIN No.:	00109197
Name :	Mr. Anup Pravin Shah
Designation :	Director
Address :	Suite 8, Jal Kiran Cuffe Parade, Mumbai - 400005, Maharashtra, India
Date of Appointment :	23.02.2013
DIN No.:	00293207
Name :	Mr. Aditya Sushilkumar Handa
Designation :	Director
Address :	Sharanya, Judges Bunglows Road Opposite Ruchir Bunglows, Bodakdev Ahmedabad - 380054, Gujarat, India
Date of Appointment :	13.06.2006
DIN No.:	00308513
Name :	Ms. Milina Purnendu Bose
Designation :	Director
Address :	E 504, Sarjan Towers, Off. Gurukul Road, Memnagar, Ahmedabad – 380052, Gujarat, India
Date of Appointment :	11.08.2014
DIN No.:	02204540
Name :	Mr. Amish Vyas
Designation :	Non-Executive and Non-Independent Director

KEY EXECUTIVES

Name :	Mr. Chandrasingh Shivrambhai Purohit
Designation :	Chief Finance Officer
Address :	17, Rajvi Emeralds, Near Gala Gymkhana, Bopal, Ahmedabad – 380054, Gujarat, India
Date of Appointment :	09.05.2014
PAN No.:	AFKPP3128B
Name :	Mr. Kiritkumar Himatlal Kanjaria
Designation :	Company Secretary and Compliance Officer
Address :	Ashirwad-III, Bunglow No.4 Opposite Auda Garden, Prahladnagar, Ahmedabad -380051, Gujarat, India
Date of Appointment :	13.04.2013
PAN No.:	ADPPK8970R
Audit Committee :	Dr. Anup P. Shah - Chairman Mr. Surrinder Lal Kapur - Member Mr. T. V. Ananthanarayanan - Member Mr. Chandrasingh S. Purohit - Member
Stakeholders Relationship Committee :	Mr. Surrinder Lal Kapur - Chairman Dr. Anup P. Shah - Member Mr. T. V. Ananthanarayanan - Member Mr. Arjun Handa - Member Mr. Chandrasingh S. Purohit - Member
Nomination and Remuneration Committee :	Mr. T. V. Ananthanarayanan - Chairman Dr. Anup P. Shah - Member Mr. Surrinder Lal Kapur - Member
Corporate Social Responsibility Committee :	Mr. Surrinder Lal Kapur - Chairman Mr. Arjun Handa - Member Mr. Chandrasingh S. Purohit - Member Mr. T. V. Ananthanarayanan - Member Dr. Anup P. Shah - Member Mr. Amish Vyas - Member Mr. Shyamsunder Sharma - Member
Committee of Directors :	Mr. Chandrasingh S. Purohit - Chairman Mr. Arjun Handa - Member Mr. Amish Vyas - Member Mr. Shyamsunder Sharma - Member

MAJOR SHAREHOLDERS

As on 30.09.2017

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
(A) Promoter & Promoter Group	27355964	50.13
(B) Public	27211801	49.87
Grand Total	54567765	100.00

"Statement showing shareholding pattern of the Promoter and Promoter Group"

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of
A1) Indian		0.00
Any Other (specify)	27355964	50.13
Athanas Enterprise Private Limited	27353580	50.13
Abellon Energy Limited	2384	0.00
Sub Total A1	27355964	50.13
A2) Foreign		0.00
A=A1+A2	27355964	50.13

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	Total no. shares held	Shareholding % calculated as per SCRR, 1957 As a % of
B1) Institutions		0.00
Mutual Funds/	1054255	1.93
Reliance Capital Trustee Co. Ltd-A/C Reliancesmall Cap Fund	1054255	1.93
Foreign Portfolio Investors	13982586	25.62
East Bridge Capital Master Fund Limited	2422780	4.44
Government Pension Fund Global	1623970	2.98
Cobra India (Mauritius) Limited	1495411	2.74
Orbimed Partners Master Mauritius Limited	1345345	2.47
Signet Healthcare Partners QP Partnership III LP	1216982	2.23
Ashoka Pte Ltd	1178962	2.16
Morgan Stanley Asia (Singapore) Pte.	1119792	2.05
HBM Healthcare Investments (Cayman) Ltd	1092358	2.00
Orbimed Partners II Mauritius Limited	1039551	1.91
Sub Total B1	15036841	27.56
B2) Central Government/ State Government(s)/ President of India		0.00
B3) Non-Institutions		0.00
Individual share capital upto Rs. 2 Lacs	4781460	8.76
Individual share capital in excess of Rs. 2 Lacs	2259273	4.14
Any Other (specify)	5134227	9.41
HUF	442305	0.81
NRI – Non- Repat	325921	0.60
NRI – Repat	164913	0.30
Clearing Members	494035	0.91
Bodies Corporate	3707053	6.79
Sub Total B3	12174960	22.31
B=B1+B2+B3	27211801	49.87

BUSINESS DETAILS

Line of Business :

Subject is engaged into Manufacturer and Wholesaler of Drugs and Pharmaceuticals. [Registered Activity]

Products / Services :

Item Code No.	Products/Services Description
46497	Drugs and Pharmaceuticals (Wholesale of Pharmaceutical & Medical goods)

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 :

143 (Approximately)

Bankers :

Banker Name :	ICICI Bank Limited
Branch :	Landmark Race Course Circle, Alkapuri, Baroda -390015, Gujarat, India
Person Name (With Designation) :	--
Contact Number :	--
Name of Account Holder :	--
Account Number :	--
Account Since (Date/Year of Account Opening) :	--
Average Balance Maintained :	--
Credit Facilities Enjoyed (CC/OD/Term Loan) :	--
Account Operation :	--
Remark :	--

• Canara Bank
• Indian Overseas Bank
• Punjab National Bank
• Qatar National Bank SAQ
• Central Bank of India
• Vijaya Bank
• State Bank of Indi

Facilities :

Secured Loan	31.03.2017 (INR in Million)	31.03.2016 (INR in Million)
Long-term Borrowings
Term Loans From Bank	148.394	0.000
From finance company	0.000	96.204
Other Loan - vehicle loan From Bank	17.441	20.533
Total	165.835	116.737

Notes:

1. Vehicle loans from banks and finance companies are secured by hypothecation of respective vehicles.

b. The term loan as at March 31, 2016 is secured by first and exclusive charge over the immovable and movable assets of Solar Plant located at Modasa.

c. The term loan as at March 31, 2017 is secured by equitable mortgage on the one of the Company's immovable property.

Financial Institution:	Tata Capital Financial Services Limited
Auditors :
Name :	Shah and Shah Associates Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Internal Auditors
Name :	KPMG Chartered Accountants
Address :	Ahmedabad, Gujarat, India
Memberships :	Not Available
Collaborators :	Not Available
Holding Company:	Athanas Enterprise Private Limited [U51909GJ2013PTC075961]
Subsidiary Companies (including step-down subsidiaries) :	Claris Lifesciences Venezuela C. A Claris Produtos Farmaceuticos Do Brasil Limitada PT. Claris Lifesciences Indonesia Claris Lifesciences Colombia Limitada iCubix Infotech Limited Catalys Venture Cap Limited Claris injectable Limited (Formerly known as Claris Lifesciences International Limited) Claris Lifesciences Philippines Inc. Claris Lifesciences De Mexico SA de CV Claris Lifesciences (UK) Limited Claris Lifesciences (Aust) Pty. Limited Claris Lifesciences Inc. Claris Lifesciences & CIA Chile Limitada OGEN Nutrition Limited Claris Infrastructure Limited Claris Pharma services Claris Steri One Claris Middle East FZ-LLC ELDA International DMCC Claris Capital Limited
Associate Company :	Otsuka Pharmaceuticals India Private Limited (Formerly known as Claris Otsuka Private Limited)
Companies over which Key Management Personnel and their relatives are able to exercise significant influence :	Zivene Design and Development Private Limited Abellon Energy Limited Dorizoe Lifesciences Limited Poiesis Education Foundation Redbricks Education Foundation India Renal Foundation

CAPITAL STRUCTURE

As on 31.03.2017

Authorised Capital:

No. of Shares	Type	Value	Amount
120510000	Equity Shares	INR 10/- each	INR 1205.100 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
54567765	Equity Shares	INR 10/- each	INR 545.678 Million

a) Reconciliation of the Shares Outstanding at the beginning and at the end of the reporting period

PARTICULARS

Year ended 31.03.2017

Equity Share	Number of shares	Value (in Million)
At the beginning of the period	54567765	INR 545.678 Million
Issued during the period - Bonus issue	--	--
Bought back during the year	--	--
Outstanding at the end of the period	54567765	INR 545.678 Million

b) Rights, Preferences and Restrictions attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 per share. Each shareholder is eligible for one vote per equity share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all the preferential amounts, in the proportion of their shareholding.

Name of the shareholders	As at March 31, 2017
Equity Shares held by Holding Company	No. of Shares	% of Shareholding
Athanas Enterprise Private Limited	27353580	50.13%
Shareholders holding more than 5% of total equity shares
Athanas Enterprise Private Limited	27353580	50.13%
First Carlyle Ventures III	-	-
Abellon Energy Limited	-	-

c) During the period ended on March 31, 2015, the company had bought back 92,50,000 equity shares of the face value of Rs. 10 each (representing 14.49 % of the total equity share capital of the Company) at the price of Rs.250 per equity share aggregating to Rs.23,125 Lacs which is less than 25% of the aggregate of equity share capital and free reserves of the Company as per audited financial statements of the Company for the financial year ended December 31, 2012 through “Tender Offer” route as prescribed under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 1998.

FINANCIAL DATA

[all figures are INR Million]

ABRIDGED BALANCE SHEET (STANDALONE)

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	545.678	545.678	545.678
(b) Reserves & Surplus	6857.099	6876.887	8030.036
(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	7402.777	7422.565	8575.714
(3) Non-Current Liabilities
(a) long-term borrowings	165.835	116.737	143.168
(b) Deferred tax liabilities (Net)	0.000	0.000	27.257
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	50.877	37.716	25.061
Total Non-current Liabilities	216.712	154.453	195.486
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	226.576
(b) Trade payables	607.675	1202.478	956.433
(c) Other current liabilities	1149.785	1238.475	2687.654
(d) Short-term provisions	3.084	2.457	46.084
Total Current Liabilities	1760.544	2443.410	3916.747
TOTAL	9380.033	10020.428	12687.947
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	493.456	324.285	368.636
(ii) Intangible Assets	6.670	10.668	14.666
(iii) Capital work-in-progress	24.019	60.622	17.723
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	17.670	319.321	192.696
(c) Deferred tax assets (net)	235.571	189.207	0.000
(d) Long-term Loan and Advances	430.717	0.000	88.773
(e) Other Non-current assets	177.734	172.566	0.000
Total Non-Current Assets	1385.837	1076.669	682.494
(2) Current assets
(a) Current investments	1872.289	1910.035	3316.125
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	229.618	782.310	1518.498
(d) Cash and cash equivalents	222.262	452.611	442.412
(e) Short-term loans and advances	4957.220	5049.385	1107.017
(f) Other current assets	712.307	749.418	5621.401
Total Current Assets	7993.696	8943.759	12005.453
Assets classified as held for sale	0.500	0.000	0.000
TOTAL	9380.033	10020.428	12687.947

PROFIT & LOSS ACCOUNT (STANDALONE)

	PARTICULARS	31.03.2017	31.03.2016	31.03.2015
	SALES
	Income	211.162	1220.538	7222.841
	Other Income	480.258	425.184	762.552
	TOTAL	691.420	1645.722	7985.393
Less	EXPENSES
	Cost of Materials Consumed	0.000	0.000	761.628
	Purchases of Stock-in-Trade	82.160	968.377	3726.794
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	0.000	0.000	(42.769)
	Employees benefits expense	277.396	184.517	666.150
	Other expenses	441.969	851.397	1247.507
	Exceptional Items	0.000	0.000	(52.303)
	TOTAL	801.525	2004.291	6307.007
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(110.105)	(358.569)	1678.386
Less	FINANCIAL EXPENSES	37.318	39.104	310.440
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(147.423)	(397.673)	1367.946
Less	DEPRECIATION/ AMORTISATION	33.241	35.595	295.756
	PROFIT/ (LOSS) BEFORE TAX	(180.664)	(433.268)	1072.190
Less	TAX	(296.220)	(230.643)	(314.706)
	PROFIT/ (LOSS) AFTER TAX	115.556	(202.625)	1386.896
	EARNINGS IN FOREIGN CURRENCY
	F.O.B. Value of Exports	0.000	0.000	6045.380
	Freight	0.000	0.000	115.768
	TOTAL EARNINGS	0.000	0.000	6161.148
	IMPORTS
	Raw Materials	0.000	0.000	66.287
	Components and Stores parts	0.000	0.000	314.042
	Capital Goods	0.000	0.000	261.264
	Plant & Machinery	0.000	0.000	651.158
	Stores and Spares	0.000	0.000	7.772
	TOTAL IMPORTS	0.000	0.000	641.593
	Earnings / (Loss) Per Share (INR)	2.12	(3.71)	7.20

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt
Term loans from Bank	37.800	13.591	-
Vehicle loans	11.936	7.380	-
Total	49.736	20.971	19.014
Cash generated from operations	2596.690	536.927	911.997
Net cash flows from (used in) operating activity	1793.547	204.588	485.750

QUARTERLY RESULTS

Particulars	30.06.2017 Unaudited	30.09.2017 Unaudited
Net Sales	15.230	27.270
Total Expenditure	153.930	128.430
PBIDT (Excl OI)	(138.700)	(101.160)
Other Income	101.220	438.340
Operating Profit	(37.480)	337.180
Interest	8.920	7.550
Exceptional Items	NA	NA
PBDT	(46.400)	329.630
Depreciation	10.420	10.920
Profit Before Tax	(56.820)	318.710
Tax	(22.420)	115.580
Provisions and contingencies	NA	NA
Profit After Tax	(34.400)	203.130
Extraordinary Items	NA	NA
Prior Period Expenses	NA	NA
Other Adjustments	NA	NA
Net Profit	0.400	16936.730

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	396.90	233.95	76.74
Account Receivables Turnover (Income / Sundry Debtors)	0.92	1.56	4.76
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	2699.63	453.24	77.78
Inventory Turnover (Operating Income / Inventories)	0.00	0.00	0.00
Asset Turnover (Operating Income / Net Fixed Assets)	(0.21)	(0.91)	4.19

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.21	0.26	0.32
Debt Equity Ratio (Total Liability / Networth)	0.03	0.02	0.05
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.24	0.33	0.46
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.07	0.05	0.05
Interest Coverage Ratio (PBIT / Financial Charges)	-2.95	-9.17	5.41

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	54.72	(16.60)	19.20
Return on Total Assets ((PAT / Total Assets) * 100)	%	1.23	(2.02)	10.93
Return on Investment (ROI) ((PAT / Networth) * 100)	%	1.56	(2.73)	16.17

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	4.54	3.66	3.07
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	4.54	3.66	3.07
G-Score Ratio Financial (Networth / Total Assets)	0.79	0.74	0.68
G-Score Ratio Debt (Debts / Equity Capital)	0.40	0.25	0.71
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	4.54	3.66	3.07

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

STOCK PRICES

Face Value	INR 10.00/-
Market Value	INR 356.45/- [BSE]

FINANCIAL ANALYSIS

[all figures are in 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	545.678	545.678	545.678
Reserves & Surplus	8030.036	6876.887	6857.099
Money received against share warrants	0.000	0.000	0.000
Share Application money pending allotment	0.000	0.000	0.000
Net worth	8575.714	7422.565	7402.777
long-term borrowings	143.168	116.737	165.835
Short term borrowings	226.576	0.000	0.000
Current maturities of long-term debts	19.014	20.971	49.736
Total borrowings	388.758	137.708	215.571
Debt/Equity ratio	0.045	0.019	0.029

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	7222.841	1220.538	211.162
		(83.102)	(82.699)

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	7222.841	1220.538	211.162
Profit / (Loss)	1386.896	(202.625)	115.556
	19.20%	(16.60%)	54.72%

ABRIDGED BALANCE SHEET (CONSOLIDATED)

SOURCES OF FUNDS	31.03.2017	31.03.2016
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	545.678	545.678
(b) Reserves & Surplus	9653.681	8649.377
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds	10199.359	9195.055
(3) Non-Current Liabilities
(a) Long-term borrowings	165.835	3516.704
(b) Deferred tax liabilities (Net)	185.257	247.190
(c) Other long term liabilities	0.000	42.150
(d) long-term provisions	69.384	141.171
Total Non-current Liabilities	420.476	3947.215
(4) Current Liabilities
(a) Short term borrowings	0.000	1709.992
(b) Trade payables	467.654	1455.611
(c) Other current liabilities	237.574	1400.011
(d) Short-term provisions	7.826	12.281
Total Current Liabilities	713.054	4577.895
LIABILITIES ASSOCIATED WITH ASSETS HELD FOR SALE	6673.976	0.000
TOTAL	18006.865	17720.165
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	557.061	8650.676
(ii) Intangible Assets	6.990	10.988
(iii) Capital work-in-progress	24.019	104.216
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	1035.302	1172.806
(c) Deferred tax assets (net)	246.610	352.890
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	194.484	322.394
Total Non-Current Assets	2064.466	10613.970
(2) Current assets
(a) Current investments	1877.286	1910.038
(b) Inventories	0.000	946.807
(c) Trade receivables	181.312	1674.198
(d) Cash and cash equivalents	306.103	1861.906
(e) Short-term loans and advances	95.141	172.757
(f) Other current assets	500.722	540.489
Total Current Assets	2960.564	7106.195
ASSETS CLASSIFICATION AS HELD FOR SALE	12981.835	0.000
TOTAL	18006.865	17720.165

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

	PARTICULARS		31.03.2017	31.03.2016
	SALES
		Revenue from Operations	255.287	1331.625
		Other Income	374.588	458.475
		TOTAL	629.875	1790.100
Less	EXPENSES
		Purchases of Stock-in-Trade	82.160	1023.967
		Employees benefits expense	326.246	223.694
		Other expenses	478.000	863.544
		Share in Profit/ (Loss) of Associates	260.927	921.210
		TOTAL	1147.333	3032.415
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(517.458)	(1242.315)
Less	FINANCIAL EXPENSES		39.832	54.792
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(557.290)	(1297.107)
Less	DEPRECIATION/ AMORTISATION		39.684	38.573
	PROFIT BEFORE TAX		(596.974)	(1335.680)
Less	TAX		(1696.224)	(941.330)
	PROFIT AFTER TAX		1099.250	(394.350)

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	No
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	No
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	Yes
17]	Details of sister concerns	Yes
18]	Major suppliers	No
19]	Major customers	No
20]	Banking Details	Yes
21]	Banking facility details	No
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]	Litigations that the firm/promoter involved in	--
32]	Market information	--
33]	Payments terms	No
34]	Negative Reporting by Auditors in the Annual Report	No

CORPORATE INFORMATION

The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company's shares are listed on BSE, a recognised stock exchange, in India.

The registered office of the company is located at Claris Corporate Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad - 380 006, India. The Company is engaged in the business of selling injectable products and providing management consulting towards various operational and strategic activities and certain other shared services to some of its subsidiaries. A significant majority of injectables products are generic drugs, capable of being directly injected into the human body, predominantly used in the treatment of critical illnesses. The standalone financial statements were authorised for issue in accordance with a resolution of the directors on May 20, 2017.

MANAGEMENT DISCUSSION & ANALYSIS

Global Injectables Outlook

The global injectable drug delivery market, in terms of value, is projected to reach USD 624.50 Billion by 2021 from USD 362.38 Billion in 2016, at a CAGR of 11.5% during the forecast period. US Generic Injectable market expected to grow at 10% CAGR 2015-2020.

The injectable drug delivery market is segmented based on type, formulation packaging, therapeutic application, usage pattern, site of administration, distribution channel, facility of use, and regions.

As per ICRA research, during the 2015-19 period Injectables drugs worth ~US$16 billion are expected to go off-patent in the US alone. While significant price erosion is normal once the drugs go off-patent, the injectable segment still holds a sizeable opportunity to gain meaningful revenue growth for Indian generic companies because the upcoming patent expiries. In addition, increase in manufacturing costs, required as part of complying with USFDA cGMP norms and drug shortages, has led to price increases in the past and the trend is expected to continue forward - contributing to the overall market growth. Supported by the patent expiries and favourable pricing environment, the US generic injectable market is expected to grow at a CAGR of 10% over the next five years. Stringent USFDA cGMP regulations have led to supply issues for various injectable players and focus on maintaining quality remains critical.

Drug shortages are led by supply disruptions because of USFDA cGMP violations as well as consolidation of in-house manufacturing facilities. Several warning letters had been issued by USFDA in the past to generic injectable players, though sorted out over period.

USA remains a challenging market due to high entry barriers and established incumbents. The generic injectable market is characterised by high capital investments and operational costs coupled with relatively higher compliance requirement owing to the sterile nature of the products. These factors have resulted in high barriers to entry and, thus, a limited number of competitors relative to other segments. These have further reduced due to mergers and acquisition (“M&A”) activities within the sector over the last few years. For the US Generic Injectable market, 70% of the market (by value) has three or less than three companies compared to five or more players for the oral solids generics corroborating high level of entry barriers owing to high upfront capital investments, compliance issues and economies of scale requirements. In 2015, the top five generic companies controlled ~52% of the market share by value and ~73% of the market by volume (source: Industry). Any new entrant is required to have a relatively large basket of products and cost advantage to gain traction with customers.

Over the past few years, manufacturing units of several large players operating in the US generic injectable market have faced regulatory interruptions due to non-compliance to cGMP guidelines. Injectables, being sterile products, require stringent manufacturing processes across development, formulation, packaging, storage and transportation phases and attract greater scrutiny from regulatory agencies. Approximately 65% of the drug shortages in the US are because of quality manufacturing/ delays or capacity constraints and thereby making them one of the critical success factors to build sustainable business.

INDIA OUTLOOK

Stable Profitability Supports Stable Outlook: It is expected that a stable outlook on the pharmaceutical sector for FY18 will be maintained, on the expectation that the sector’s profitability will remain stable. Domestic market growth to remain brisk and compensate for weak export growth.

Exports continue to Support Profitability: Though export revenue growth remained weak, the profitability of companies exporting to regulated markets improved during FY16 and FY17. Indian companies received close to 200 abbreviated new drug application (ANDA) approvals each in 2015 and 2016 (2014: 122) from US Food and Drug Administration (USFDA). A higher proportion of revenue from new products during this period aided in margin expansion. The intensity of new actions by the USFDA was lower in 2016. Eight warning letters and three import alerts (2015: 17 and 12, respectively) were issued and the number of facilities under import alert has now increased to 45. Increased regulatory actions by the USFDA has resulted in export revenue going down to 6.6% CAGR for the three years ended FY16 as compared to the 13.7% CAGR for the six years ended FY16.

M&A can delay deleveraging: It is anticipated that the pharmaceutical companies may engage in M&A to overcome regulatory and competition headwinds. The high intensity of competition among peers to acquire ‘attractive’ assets can lead to an overheated market. We also expect companies with strong balance sheets to take advantage of favorable credit market conditions and use debt to fund acquisitions, which can delay deleveraging. A sustained improvement in export growth of the sector and/ or an increase in the proportion of revenue from differentiated generic products resulting in a sustained improvement in operating profitability can be positive for the sector.

Sale of Global Generic Injectables Business to Baxter International Inc.

The injectable generics sector has been through a sustained period of consolidation over the last few years as the leading companies have increased their presence through acquisition. Interest in this specialist sector has come from both established generic manufacturers and major pharmaceutical companies.

They had announced on December 15, 2016, that we have entered into definitive agreements with Baxter International Inc. (Baxter) for the sale of their global generic Speciality Injectables business, carried on by them through their subsidiary Claris Injectables Limited (CIL) and their other identified indirect subsidiaries, at an enterprise value of US$ 625 million on a cash free debt free basis.

CIL manufactures and/or markets products across multiple delivery systems, markets, and therapeutic segments including anesthesia, anti-infectives, critical care and nephrology. A significant majority of these products are generic drugs, capable of being directly injected into the human body, predominantly used in the treatment of critical illnesses. The customer base primarily includes government & private hospitals, aid agencies, and Group Purchasing Organizations. With emphasis on quality, technology, and innovation, theyoffer a range of niche technology-driven injectable products across delivery systems such as glass bottles, vials & ampoules, and non-PVC/PVC bags.

The Injectables business, has been growing rapidly over the last few years and has been attracting significant interest. The business encompasses several specialty high entry barrier products and it has capabilities and technologies that enables an integrated business model from research to marketing with an advantage of lower cost of production in India as compared to the other developed countries. We believe that this strategic partnership with Baxter will create a very promising future roadmap for the business including for the team and the stakeholders. Over the last 5 years, the management and team at the Company have scaled up and created significant value across both their businesses – the earlier infusions business and now the Speciality Injectables.

Baxter International Inc. is a US$ 10 billion (FY2015) revenue company, employing around 50,000 employees worldwide with manufacturing presence in more than 27countries world-wide. Baxter provides a broad portfolio of essential renal and hospital products, including home, acute and in-center dialysis; sterile IV solutions; infusion systems and devices; parenteral nutrition; bio-surgery products and anesthetics; and pharmacy automation, software and services. The company’s global footprint and the critical nature of its products and services play a key role in expanding access to healthcare in emerging and developed countries. Baxter’s employees worldwide are building upon the company’s rich heritage of medical breakthroughs to advance the next generation of healthcare innovations that enable patient care.

Baxter is a company with a very deep and long history and roots in the hospital business with a focused strategy to grow in Injectables market and is perfectly suited to take their business forward. It has the requisite expertise and the resources along with its global reach to leverage the business as a strategic platform and to catapult its R&D, manufacturing and people capabilities and build it into a world class Injectables story. After achieving this milestone of signing definitive agreement, we along with Baxter are working towards closing the transaction and make it fully effective.

The Board of Directors in their meeting held on December 15, 2016, has approved sale and transfer of the ‘Injectables Business’ carried on by them in India and overseas, through their subsidiary Claris Injectables Limited and their other identified indirect subsidiaries, through one or more transactions involving the transfer of ownership of the subsidiary(ies) to the Baxter Group at an aggregate enterprise value of USD 625 million for the said transaction relating to the sale of Injectables business, subject to agreed adjustments, permitted under applicable law, including for repayment of lenders debt, certain inter-group transactions, and other closing adjustments, which may be substantial. We have taken the approval of their Company’s shareholders through the postal ballot on February 17, 2017. Accordingly, the Injectables business is considered as Discontinued Operations in terms of Ind-AS 105 in their standalone and consolidated financials. We intend to repatriate a significant majority of the net cash proceeds (post taxes and expenses) to their Company’s shareholders.

FINANCIAL PERFORMANCE

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all the periods, up to and including the year ended March 31, 2016, we prepared their financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). We have adopted IND AS for the year ended on March 31, 2017 with transition date of April 1, 2015. Accordingly, these financial statements are their first financial statements prepared in accordance with Ind AS. The financial statements for the year ended on March 31, 2016 are restated in accordance with IND AS.

INDEX OF CHARGES

SNo	SRN	Charge Id	Charge Holder Name	Date of Creation	Date of Modification	Date of Satisfaction	Amount	Address
1	G10004240	100046036	ICICI BANK LIMITED	12/08/2016	-	-	2300000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGu390015IN
2	G05463526	100032156	ICICI BANK LIMITED	24/05/2016	-	-	2054000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGu390015IN
3	G05463971	100032158	ICICI BANK LIMITED	24/05/2016	-	-	3750000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGu390015IN
4	G05463112	100032154	ICICI BANK LIMITED	24/05/2016	-	-	3500000.0	LANDMARKRACE COURCE CIRCLEALKAPURIBARODAGu390015IN
5	G52120540	100053478	Punjab National Bank	30/09/2016	-	24/08/2017	200000000.0	Large Corporate Branch, Neelkamal BuildingAshram RoadAhmedabadGJ380009IN
6	G05862065	10459609	TATA CAPITAL FINANCIAL SERVICES LIMITED	24/10/2013	-	08/06/2016	150000000.0	One Forbes,Dr. V. B. Gandhi Marg, FortMumbaiMH400001IN
7	G04747044	10551917	Deutsche Bank AG	02/02/2015	-	25/05/2016	742080000.0	ECE House, 28 Kasturba Gandhi Marg,New DelhiDL110001IN
8	C31931579	10168330	Canara Bank	23/07/2009	31/07/2013	31/10/2014	3354100000.0	Prime Corporate Branch, 104, Jyoti Commercial CompNear Shyamal cross road, Satellite, VejalpurAhmedabadGJ380015IN
9	C31929482	10129270	Canara Bank	17/11/2008	31/07/2013	31/10/2014	3354100000.0	Prime Corporate Branch, 104, Jyoti Commercial CompNear Shyamal cross road, Satellite, VejalpurAhmedabadGJ380015IN
10	B80640923	10250995	Central of Bank India	03/11/2010	-	31/07/2013	470400000.0	Gulbai Tekra Branch,101,Sears Tower,EllisbridgeGJ380006IN

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS	31.03.2017	31.03.2016
Claim against the company not acknowledge as debts	249.121	87.209
Disputed demand under :
Income tax	35.420	38.220
Sales tax	4.771	1.785
Excise duty	9.219	9.219
Regulatory	1040.000	1040.000
Customs duty draw back	-	0.726
Bills discounted	14.786	102.755
Guarantees given by the Company	5048.474	8642.377

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE HALF YEAR AND QUARTER ENDED 30.09.2017

(INR In Million)

PARTICULARS	QUARTER ENDED		HALF YEAR ENDED 30.09.2017
	30.09.2017 Unaudited	30.06.2017 Unaudited
REVENUE FROM OPERATIONS
Revenue from operations	27.274	15.233	42.507
Other Income	438.339	101.233	539.562
Total Income	465.613	116.466	582.069
EXPENSES
Employee benefits expense	75.091	110.247	185.338
Finance Costs	7.545	8.923	16.468
Depreciation and Amortization expenses	10.919	10.419	21.339
Other Expenditure	53.348	43.684	97.031
Total Expenses	146.903	173.273	320.176
Profit / (Loss) before share of profit or loss of associates, exceptional item and tax from continuing operation	318.710	(56.817)	261.893
Share in profit/ loss of Associate	--	-	-
Profit / (Loss) before exceptional item and tax from continuing operation	318.710	(56.817)	261.893
Exceptional item	--	-	-
Profit / (Loss) before tax from continuing operation	318.710	(56.817)	261.893
Tax Expense
Current Tax	-	-	-
Deferred Tax Liability	115.582	(22.420)	93.162
Tax Expense	115.582	(22.420)	93.162
Profit / (Loss) for the period from continuing operation	203.128	(34.397)	168.731
Profit / (Loss) for the period from discontinuing operation	2289.173	53.214	22942.387
Tax Expense discontinuing operation	6155.567	18.416	6173.984
Profit / (Loss) for the period from continuing operation	16733.606	34.798	16768.403
Profit / (Loss) for the period	16936.734	0.401	16937.134
Other comprehensive income/expenses
Gain/ loss of on FVTOCI debt instrument	(21.966)	2.728	(19.238)
income tax after effect	7.602	(0.944)	6.658
Items that will not be reclassified to profit and loss
Re- measurment gains / losses on defied benefit plans	(0.346)	(2.377)	(2.723)
income tax after effect	0.120	0.823	0.942
comprehensive income for the period	(14.590)	0.230	(14.361)
Total comprehensive income for the period	16922.144	0.631	16922.773
Paid-up equity share capital	545.678	545.678	545.678
Basic and Diluted EPS - continuing operation	3.72	(0.63)	3.09
Basic and Diluted EPS - Discontinuing operation	306.66	0.64	307.30
Basic and Diluted EPS - Continuing and Discontinuing operation	310.38	0.01	310.39

STATEMENT OF UNAUDITED STANDALONE ASSETS AND LIABILITIES AS ON 30.09.2017

(INR in Million)

SOURCES OF FUNDS	30.09.2017
	Unaudited
I.              EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	545.678
(b) Reserves & Surplus	23648.520
(c) Money received against share warrants	0.000
(d) Share Application Money Pending Allotment	0.000
Total Shareholders’ Funds	24194.198
(3) Non-Current Liabilities
(a) long-term borrowings	10.000
(b) Deferred tax liabilities (Net)	0.000
(c) Other long term liabilities	0.000
(d) long-term provisions	69.355
Total Non-current Liabilities	79.355
(4) Current Liabilities
(a) Short term borrowings	0.000
(b) Trade payables	536.856
(c) Other current liabilities	9932.524
(d) Short-term provisions	4.305
Total Current Liabilities	10473.685
TOTAL	34747.238
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	475.702
(ii) Intangible Assets	4.666
(iii) Capital work-in-progress	46.161
(iv) Intangible assets under development	0.000
(b) Non-current Investments	428.173
(c) Deferred tax assets (net)	156.466
(d) Long-term Loan and Advances	0.000
(e) Other Non-current assets	101.391
Total Non-Current Assets	1212.559
(2) Current assets
(a) Current investments	2947.110
(b) Inventories	0.000
(c) Trade receivables	333.560
(d) Cash and cash equivalents	3354.159
(e) Short-term loans and advances	153.908
(f) Other current assets	222.942
Total Current Assets	33534.679
TOTAL	34747.238

Notes :

1. The above financial results have been reviewed by the Audit Committee and approved to issue by the Board of Directors at their meeting held on November 14, 2017.

2. On July 27, 2017, post receipt of all the regulatory approvals as may be required , Company has received sale consideration thereof related to transfer of Injectable Business’ carried on by the Company in India and Overseas, though its Subsidiary Claries Injectables Limited and other identified indirect subsidiaries of the Company, through one or more transactions involving the transfer of ownership of the subsidiary(ies) to the Baxter Group and transferred the Injectable Business to Baxter on such date.
   
   On September 21, 2017, post receipt of all the regulatory approvals. Company received sale consideration thereof for transfer of its 20% stake in erstwhile associate, Otsuka Pharmaceutical India Private Limited (formerly known as Clans Otsuka Private Limited). Accordingly, the said stake stands transferred on such date.

In line with Ind-AS 105, Injectable business and holding in Otsuka Phannaceutical India Private Limited, were classified as Discontinuing operations for the year ended March 31, 2017 and quarter ended June 30, 2017 respectively, hence, profit on transfer of such operations, net off the expenses to sale and tax thereon has been treated as profit from discontinuing operations.

3. Tax expenses include current tax, deferred tax and adjustment of taxes for the earlier years/period.

4. Following the completion of sale of Injectable business composing of the Group's Drug & Pharmaceuticals segment, Clans Lifesciences is evaluating various sectors to invest proceeds received on sale of its injectable business, m a way that results in long term value creation for shareholders. The operating segment of the company continues to be identified to be "Drug and Phannaceuticals".

5. Previous period's figures have been regrouped/rearranged wherever considered necessary, to confirm to the current period s classification.

FIXED ASSETS

Tangible Asset

• Buildings
• Plant and Equipment
• Electrical Installation
• Furniture and Fixtures
• Office Equipment
• 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 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 63.82
UK Pound	1	INR 86.28
Euro	1	INR 76.13

INFORMATION DETAILS

Analysis Done by :	VIK
Report Prepared by :	TRUP

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.