Appraisal Note for Working Capital Assessment of:

J B Chemicals & Pharmaceuticals Ltd.

Appraisal Note for Working Capital
J B chemicals & Pharmaceuticals
Project Aim: Increase WC by 25%.
Increase Term Loan by 10%.
Outstandin Term Loan to be reduced by 15% in 1
st
year.

2
PRC!"" N#!
(To be forwarded by Branch to Zonal Office in respect of Credit Limits of Rs.
1.00 Crore and above
Ref. !o." $B%Assignment&'(
#ate" Aug. )*%+'),
#ate of receipt of $roposal at the Branch" Aug. ,'%+'),
Branch" --$ ./0-.1!
Credit Ratin% " A2
Zone" .erala
&sset Classification " "td.
!&'( O) T*( BORRO+(R" J B Chemicals & Pharmaceuticals Ltd.
-. PR!"!N# PRP"AL: )or sanction of Fresh
(,-Renewal-(nhancement of Credit facilities as follows"
!at.re of facility (/istin% Limits Limits &pplied Limits now
proposed
0ec.red
Overdraft
(Cash Credit
Term Loan1
Rs. 23.00 crores
(0ince 'arch 2012
!O"#$s.12.%&
crores
TL-Rs.35.50 crores
(ENHANCEMENT)
!O"#$s.12.%&
crores
TL-Rs.35.50 crores
(SEPARATELY)
'ote: It is assumed t(at t(e Term Loan en(ancement )ro)osa* (as been sanctioned se)arate*y.
3
--. PAR#-C3LAR" 4 #0! BRRW!R:
). Constit.tion " Limited Com)any
2. &ddress of Re%istered Office " Neelam centre, B Wing, Hind Cycle road,
Worli, Mumbai - 400030
Telephone : 0-304!"00


,. &ddress of )actory-4nit at " $anoli5 6.7rat
&n8aleshwar5 6.7rat
9adaiya5 #aman
6ro.p to which the Co. belon% " +, -rou)
(. #ate of :ncorporation " 1.&%
5. 0ector " Pri/ate
4
6. Line of Acti7it8
1i7ision Line of Acti7it8 1ate of
commenceme9
nt of comm.
production
Pharmaceutical Division
Formulation & manufacture of
Tablets and medicines for different
therapies under brands Azicyte,
izfer, !albory, Detra", Dicloran,
#ficipro etc$
%&'(
---. WN!R"0-P AN1 $ANA:!$!N#:

B3"-N!"" $ANA:!$!N# #!A$
'r. ;yotindra B. 'ody5 'ana%in% director
'r. #inesh B. 'ody5 +hole time director (&dministration
'r. 0hirish B. 'ody5 +hole time director ('ar8etin%
'r. $ranabh 'ody5 $resident < +hole time director
(Operations
'r. $. 9. 0in%h5 $resident 1 6lobal B.siness
'r. !irav 'ody5 0r. =ice $resident 1 0trate%ic 'ar8etin% <
B.siness #evelopment
'r. ;ay 'ehta5 0r. =ice $resident 1 6lobal B.siness
(R.ssia < C:0
'r. 0andeep !asa5 *ead of 'oscow Representative Oi ce
'r. &n.pam 'ehta5 0r. =ice $resident 1 'aterials
'r. 0avya 0achi5 #irector 1 'ar8etin% < 0ales
'r. B. 9. #har5 6eneral 'ana%er 1 &$: (B.4.
'r. 'itesh 9othari5 6eneral 'ana%er 1 #ia%nostic
'r. Bhavesh ;oshi5 0r. 6eneral 'ana%er 1 )inance < &cco.nts
)
Auditors - *$ +$ ,hah & !o$
!hartered Accountants
-umbai
Particulars of present .ey personnel and the/ oard !ommittees area supervised by
them
Audit Committee
ansi ,$ -ehta 0!hairman1
Dinesh $ -ody
Dur2a Dass !hopra
-ahesh +$ ,hrof
Dr$ 3iran4an 3$ -aniar
Dr$ ,atyanarain A2ar5ala
Remuneration Committee
Dur2a Dass !hopra
-ahesh +$ ,hrof
Dr$ 3iran4an 3$ -aniar
CORE TECHNICAL TEAM
-r$ harat P$ -ehta, 6hole time director 0Plannin2 & Development1
-r$ +amlesh 7dani, 8"ecutive director 0Technical & Production1
Dr$ -ilind *oshi, President 9 :e2ulatory Af airs
-r$ Parmesh5ar an2, ;ice President 9 6or.s
-r$ -$ +$ +arve, <uality !ontroller 9 !orporate <A
-r$ ;$ =$ Pansuriya, ;ice President 9 :esearch & Development
(
Group Companies Holdins!
Names and Relationships o" the Related #arties!
i$ %u&sidiar' Companies!
a$ >>> 7ni?ue Pharmaceutical @aboratories$
b$ *$ $ Aealthcare Pvt$ @td$
c$ *$ $ !hemicals & Pharmaceuticals Pvt$ @td$
d$ @@! 7ni?ue Pharmaceutical @aboratories$
ii$ Asso(iate Con(erns ) Trusts ) Companies ) *oint
+enture!
a$ -ody Tradin2 !ompany
b$ -ody rothers
c$ *yotindra Family Trust
d$ Dinesh Family Trust
e$ ,hirish Family Trust
f$ iotech @aboratories 0Pty$1 @td$
2$ *yotindra -ody Aoldin2s Pvt$ @td$
h$ Ansuya -ody ,ecurities Pvt$ @td$
i$ Dinesh -ody ,ecurities Pvt$ @td$
4$ +umud -ody ,ecurities Pvt$ @td$
.$ ,hirish $ -ody #nvestments Pvt$ @td$
l$ harati ,$ -ody #nvestments Pvt$ @td$
m$ *$ $ -ody 8nterprises Pvt$ @td$
n$ Ansuya -ody 8nterprises Pvt$ @td$
o$ Dinesh -ody ;entures Pvt$ @td$
p$ +umud -ody ;entures Pvt$ @td$
?$ ,hirish -ody 8nterprises Pvt$ @td$
r$ harati -ody ;entures Pvt$ @td$
s$ ,ynit Dru2s Pvt$ @td$
t$ 7ni?ue Pharmaceutical @aboratories @td$
u$ #i uni. Pharmaceuticals @td$
v$ 3amplas !hemicals Pvt$ @td$
5$ :aptim :esearch @td$
"$ =emma *e5ellery Pvt$ @td$
y$ @e.ar Pharma @td$
'
2$ Chief !;ecuti7e" *'otindra Modi, Chairman - M. o" the (ompan'
3$ Capital "tructure" /%ee Note 0! %hareIssue$
Authorized !apital/ As on 10.21.2201, there 3ere 0222,22,222 E4uit' %hares o"
Rs. 2 ea(h "or an amount o" Rs. 2222.22 la(s
Paid up !apital/ As on 10.21.2201, there 3ere 567,27,122 E4uit'
%hares o" Rs.2 ea(h, "ull' paid-up "or an amount o" Rs.
0896.0: la(s.

4$ "hare holding patterns" /%ee Note 2! .istri&ution o" shareholdin$
Name of
"hareholder
As at $arch ,)< +'), As at $arch ,)< +')+
!o. of 0hares
held
> of
*oldin%
!o. of 0hares
held
> of
*oldin%
*yotindra -ody
Aoldin2s Pvt$
@td$
'4,((,242 B$B% (3,%%,32) '$4)
Dinesh -ody
,ecurities Pvt$
@td$
'C,)),32( B$33 )&,CC,4%C ($&'
,hirish $ -ody
#nvestments Pvt$
@td$
(),3C,(C% '$'% )3,'),(B) ($3)
Ansuya -ody
,ecurities Pvt$
@td$
'2,34,BB2 B$)4 (C,'&,&() '$%B
+umud -ody
,ecurities Pvt$
@td$
'%,B%,232 B$4B (C,2(,3%) '$%%
harati ,$ -ody
#nvestments Pvt$
@td$
'B,'3,&B' &$3C (',%&,C'C '$&3
7ni?ue
Pharmaceutical
@aboratories
@td$
D DD 44,B2,3&C )$2&
Ashish Dha5an '','3,('2 &$%B '',(%,2(2 &$%(
B
* ; Chemi(als - #harma(euti(als Ltd. +alues!
+ision
>ur vision is to become one of the leadin2 2lobal 2eneric manufacturers of ?uality pharmaceutical
products by e"cellin2 in the fields of research, re2ulatory and manufacturin2$
Mission
*!P@ aims to manufacture affordable products that improve lives across the 2lobe$ Providin2
medicines of the hi2hest ?uality to our customers, is very much part our mission$ 6e endeavor to
please every *!P@ client and sta.eholder throu2h focus, hard 5or. and honesty$
* ; Chemi(als - #harma(euti(als %tratei( Fo(us!
6e believe that innovation is essential to developin2 a 5orld class pharmaceutical company
especially in a 2lobalised 5orld$ ThatEs 5hy 5e aim to develop ne5 products that cater to every
population$As diseases chan2e and 2ro5, innovation is the only 5ay to truly succeed$ +eepin2
apace 5ith an ever dynamic health industry is absolutely fundamental to our lives as 5ell to those
5e are tryin2 to save$
&
-=. BAN.-N: ARRAN:!$!N#":
). 1ealing >ith our ?ank since:
As a borro5in2 customer since %&&(9&'$

2. 0a7e the Co po>ers to ?orro>:
Fes$ The relevant clause of Article of Association of the company permits the company to
borro5 from ban.s and financial institutions$ There is no ne2ative covenant on the borro5in2 of
the company$ This is assumed on the basis of the auditorEs report, the company havin2
borro5ed from different ban.s thou2h the primaryGcollateral securities are different in each
case$
?. Present ?anking arrangement "
List o" present ;an<ers!
,tandard !hartered an.
an. of #ndia
3P Paribas
Complete details o" the (ompan'=s &an<in arranement is not a>aila&le in the Annual
Report o" the (ompan'.
=. 1!#A-L" 4 !@-"#-N: CR!1-# 4AC-L-#-!" A1etails as per
Anne;ure -B:
a With our Bank"
T(e com)any is enjoyin t(e 0o**o1in credit 0aci*ity 1it( our ban2.
)acility Limit #ate of
doc.me
nt
Balance
as on
@@@.
Overd.es Rate
of
:ntere
st
0ec.r
ity
).nd Based Nil
!on1).nd
Based
(e/cl.din%
#$6
Term credit
facilities
(incl.din% #$6
Rs. )+6C.'' lacs
%C
A. #otal inde?tedness to our Bank (1B2B?"
a ).nd based Rs.)+6C.'' lacs
b !on1f.nd based Nil
TOT&L Rs.)+6C.'' lacs
=:. BR:() *:0TORC incl.din% c.rrent profile
J B Chemical & Pharmaceuticals - Historical Milestones
%&)C D8!8-8: 9
-r *$ $ -ody so5ed the first seeds of the venture in the form of a partnership firm, -Gs$ 7ni?ue
Pharmaceutical @aboratories$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%&'( D8!8-8: 9
The landmar. incorporation of *$ $ -ody !hemicals & Pharmaceuticals @td$ too. place$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%&B3 *738 9
*!P@ ac?uired the pharmaceutical business of the partnership firm *$ $ -ody & ros$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%&B) AP:#@
7ni?ue !hemicals, a partnership firm 0one of the partners bein2 *$ $ !hemicals & Pharmaceuticals
Pvt$ @td$1, 5as amal2amated 5ith *$ $ -ody !hemicals & Pharmaceuticals @td$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%&B) 3>;8-8:
-aiden public issue of %2,CC,CCC e?uity shares of :s$%CG9 each for cash at par 5hich 5as
oversubscribed 2% times$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%&&3 D8!8-8:
!ompany issued 2C,%',)CC e?uity shares as bonus shares in the ratio of %/2$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
2CCC
!ompany a5arded a =olden ,tatus certificate by the =ovt$ of #ndia$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
%%
2CC3
First A3DA filin2 5ith 7,FDA for !iproflo"acin$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
2CC4
Features in the Forbes =lobal list %CC for Iest under J% illionK in Asia9Pacific$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
2CC)
T=A Australia approves *!P@Es tablet manufacturin2 facilities at Panoli, =u4arat, #ndia$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
2CCB
-ade a strate2ic investment in a company in ,outh Africa called iotech @aboratories$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
2C%%
Divested the >T! portfolio in :ussia, 7.raine and !#, to *&*$
HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH
#ro"ile
The pro2ression of *$ $ !hemicals & Pharmaceuticals @imited has been on its ability to identify
opportunities early, both in terms of mar.et and products, and successfully build on these
opportunities to deliver value$ #n the Leld of healthcare, transformin2 opportunities to deliver
success mandates preparation to provide ?uality products$ >ver the years, 5e have continually
invested in the facilities, products and people, to ensure that 5e have the ri2ht platform in place to
embrace each opportunity that come by and create a value9driven entity$
Durin2 the year, 5e continued 5ith our tradition of sin2ularly dedicatin2 ourselves in the pursuit of
2ro5th$ 6e have consolidated our stren2ths in the #ndian mar.et 5hile ma.in2 investments to
build the products and people po5er and increase our foothold in the e"ports mar.ets, 5ith intent to
reach ne5 milestones$
The rapidly chan2in2 healthcare environment and competition creates an ever challen2in2 and
dynamic business situation$ 6ith our business model 5ell9validated, the sta2e is set for buildin2 on
ne5er opportunities and enhancin2 value for our customers and each of our sta.eholders$
IN.?%TR@ %TR?CT?RE AN. .E+ELO#MENT
The domestic formulations industry at sales of over (%,CCC crores, for %2 months period ended
-arch 2C%3, 2re5 at %CM 0>:= #-,1$ The 2ro5th of #ndian formulations industry continues to
remain robust and volumes and ne5 introductions from e"istin2 molecules remained .ey
contributors to 2ro5th$ The recent rulin2 on patentability by the ,upreme !ourt in =livecEs case
has provided much needed clarity on patentability under the #ndian la5 and 5ould help 2ro5th of
2enerics business in the lon2 run$
%2
!learly 5ith a vie5 to participate in 2ro5th potential of domestic pharmaceutical mar.et, the
mar.et continues to sho5 intense competition 5ith increased number of brands and ne5
combination bein2 launched in the mar.et$ This has put pressure on prices and calls for product
differentiation and innovative strate2ies for 2ro5th$
O##ORT?NITIE%, THREAT% AN. RI%A%
.omesti( ;usiness!
The domestic formulations industry has been consistently 2ro5in2 5ell for last several years$ The
future outloo. for the industry and 2ro5th e"pectations remains positive$ The per capita
consumption of dru2s is on increase due to spurt in chronic diseases coupled 5ith increase in
literacy rate, increase in per capita income, improved
healthcare access, increasin2 mar.et penetration and increasin2 health a5areness$ All these are
e"pected to provide 2ro5th opportunity in comin2 years$ The brand buildin2, ne5 products
introductions, product a5areness pro2rams, price revisions and penetration in Tier ## and rural
mar.ets 5ill remain 2ro5th enablers$
For the company, the domestic formulations business is a thrust area$ #n vie5 of 2ood lon2 term
2ro5th prospects offered by the domestic industry and the companyEs stren2ths in this business, the
company is 5ell poised to ta.e advanta2e of the 2ro5in2 mar.et$
The overall 2ro5th of the domestic formulations business durin2 the year 5as in line 5ith the
industry 2ro5th, ho5ever, the focus products in !ardiac, <uinoliones, Antacid, 3,A#D,
Dermitolo2y and #ron supplement se2ment re2istered hi2her 2ro5th$ The companyEs 2ro5th
strate2y includes focusin2 on 2ro5in2 therapeutic se2ments li.e anti9infectives, cardiovasculars,
pain mana2ement and 2astrointestinal, ne5 product introductions, deeper penetration in rural
mar.et and increased focus on hospital
business accompanied by !-8 pro2rammes for doctors and special mar.etin2 campai2ns$ Durin2
the year, the company also launched products in dermatolo2ical and anti9infective se2ment$ Despite
the challen2es before the company to 2ro5 the domestic formulation business and further as the
sales in this business essentially depend
on prescription 2eneration 5hich is a slo5 process, the company is ?uite hopeful of 2ro5in2 the
business in this se2ment$
The company has already created 2ood brands li.e :antac 0Anti9peptic ulcerant1, 3icardia
0!ardiolo2y1, -etro2yl 0Amoebicides1, etc$ and other5ise en4oys stron2 brand e?uity in trade and
medical fraternity$ The sustained brand buildin2 efforts in !ardiac, Antacid, <uinoliones and Pain
mana2ement se2ments have met 5ith 2ood success$ Four companyEs contrast media division
performed 5ell 5ith 2ro5th of %)M$ The company plans to enhance its focus on 2overnment tender
business in vie5 of si2nificant spends planned under various healthcare schemes$ The company is
evaluatin2 bac.5ard inte2ration in this se2ment to offset pressure on mar2ins posed by increasin2
prices of imported ra5 materials and depreciation of :upee$
The risin2 costs on one hand and price control on the other remain a concern$
International &usiness!
The 5ide 2eo2raphical presence in international mar.et, ,tate9of9the9art manufacturin2 facilities
5ith approval from health authorities such as 7, FDA, 7+ -A:A, T=A Australia, -!! ,outh
Africa, ->A97.raine, etc$ and 5ide ran2e of products across in4ectable, solids and semi9solids
alon2 5ith stron2 re2ulatory and :&D bac.up present a 2ood business opportunity and offers 2ood
2ro5th outloo.$
The companyEs e"ports to :est of the 5orld countries stood at 7,J 4% million$ The e"ports to 7,
continued to do 5ell$ All other focus mar.ets in this business se2ment too performed 5ell$ The
company has increased its focus on 7, business and accordin2ly filed 3 A3DAs durin2 the year
%3
and plans ( more submissions durin2 the current year$ esides A3DAs, the companyEs focus is on
contract manufacturin2 in tablets9lozen2es9in4ectables, branded 2enerics
products, lozen2es and contrast media products$ 6hile in terms of mar.et, the companyEs focus is
on 7,A, ,outh Africa, 7+, !anada, Australia and semi9re2ulated mar.ets$ The company has
placed hi2h focus on the contract manufacturin2 business to build lon2 term stable revenue stream$
iotech @aboratories 0Pty$1 @td$, a ,outh African mar.etin2 and distribution company in 5hich
your company holds 4&M e?uity sta.e, has been performin2 5ell$ For the year ended 2C%2,
it re2istered %'M 2ro5th in its income and )M 2ro5th in its profit after ta"$
As re2ards :ussia9!#, remainin2 business, the company is in the process of rampin2 up its
operations in this re2ion post sale of >T! business in this re2ion$ The company continues to invest
in this mar.et to scale up the business$
Outloo< "or 2201-2206
#n vie5 of 2ood business outloo. both in domestic and international mar.et as discussed above, the
companyEs manufacturin2 infrastructure of international standard, stron2 products portfolio 5ith
2ro5th brands, stron2 mar.etin2 capability and stron2 balance sheet present 2ood outloo. for the
companyEs business$
INTERNAL CONTROL %@%TEM% AN. THEIR A.EB?AC@
Four company has an ade?uate system of internal controls, 5hich ensures that its assets are
protected from loss and unauthorized use as 5ell as business affairs are carried out in accordance
5ith established procedures$ These systems of internal controls also ensure that transactions are
carried out based on authority and are recorded and reported in line 5ith 2enerally accepted
accountin2 principles$ The company also has a system of re2ular internal audit carried out by
competent professional retained by the company$
The internal audit pro2ram is approved by the audit committee, and findin2s of the internal auditor
are placed before the audit committee at re2ular interval$ The companyEs use of ,AP as 8:P
platform and various function specific soft5are also help in e"ercise of timely controls$
FINANCIAL - O#ERATING #ERFORMANCE
The net revenue from operations stood at N B%($42 crores as a2ainst (B($42 crores in the previous
year, 5hile total revenue for the year stood at N B42$3B crores a2ainst N '%4$&3 crores in the previous
year 0e"cludin2 8"ceptional income1$ The finance cost at N )$24 crores 5as lo5er due to better
5or.in2 capital mana2ement$ The profit before ta" 0before e"ceptional item1 for the year at N%C'$'4
crores 5ere %2%$)(M hi2her compared to profit of N 4B$(2 crores at the same level last year$ The
financial performance for the year 2C%29%3 is strictly not comparable 5ith the previous year as the
previous yearEs revenue included results of operations of :ussia9!#, >T! business up to *uly %3,
2C%% and income on sale thereof thereafter$ The earnin2 per share for the year 5as N %C$C3 per
e?uity share of face value of N 2 each$
%4
=---. A""!""$!N# 4 #!R$ LAN%1P: A4ill up Anne;ure D --- if there
Comments on >orking results and financial
position n >orking results
&. $rod.ction (for the previo.s )inancial Cear "
The performance of the company improved by 1D>
d.rin% the year 20121201?. 6ross Reven.es stood
at DA2 crores.
B. 0ales t.rnover "
$ro7ected 0ales Ety"
=al.e" 201?11A
"
Rs DF1.3 Crores
&ct.al for the year Ety"
=al.e" 201211?
" Rs GH?.23 Crores
$ercenta%e increase over previo.s year " 1H.D> increase over last year sales
Reasons for not achie7ing the proEections%
decline in sales
"
C. $rofitability for the year 201? " #ecreased by D3.D> over the year 2012.(beca.se
the company sold its R.ssia1C:0 OTC plant in 2012
operative profit for the year 201? " Rs 1D?.1D crores
&ct.al operative profit fortheyear 2012 " Rs G0.F? crores
Reasons for variation " :mproved by 13D>.
n financial position A"ee notes under
-ndi7idual 4ormsB
a Remar8s on retained profits
"
The company has been payin% dividend re%.larly.
b Remar8s on tan%ible net worth
"
The tan%ible net worth of the company is Rs
111H.FF crores as on 'arch ?15 201?. The
companyIs net worth is satisfactory considerin% its
o.tside liability.
c Remar8s on net wor8in% capital
"
!et wor8in% capital of company has increased
which is d.e to an increase in the c.rrent asset d.e
to an increase in stoc8 of raw material to meet
pro7ect demands and also d.e to increase in n.mber
of advances in the e/pansion process .nder
constr.ction.
d Remar8s on c.rrent ratio
"
C.rrent ratio has increased over the years
e Remar8s on total o.tside liabilities to T!+
"
This ratio has been almost same over the years.
&ppro/imately 0.22
f Remar8s on investments-advances to
associate concerns
"
There is si%nificant investment in s.bsidiaries as
well as in acJ.isitions in order to %o %lobal as per
companyIs policy as mentioned in &R in order to
e/pand the mar8et.
% Remar8s on diversion of f.nds
" !o diversion of f.nds
h Remar8s on borrowin% from friends and
relatives
"
The company does not follow a practice of
borrowin% from friends and relatives.
i Remar8s on overd.e stat.tory liabilities
"
There is no s.ch over d.e stat.tory liabilities.
7 Remar8s on contin%ent liabilities not provided
for
"
There are no ne%ative remar8s.
8 #oes the acco.nt show si%ns of incipient
sic8ness
"
+e do not perceive any s.ch si%n prima facie.
%)
=---. A""!""$!N# 4 #!R$ LAN%1P: A4ill up Anne;ure D --- if there
is a reFuest for term loan%1P::
Not Appli(a&le sin(e it is assumed that the in(rease in the Term loan &' 02C is alread'
san(tioned. Further, the (ompan' alread' has a san(tioned limit o" Rs.2:22.22 la(s 3ith ;an<
o" India, in"ormation 3ith respe(t to it is pro>ided at Note 5.
-@. A""!""$!N# 4 WR.-N: CAP-#AL R!G3-R!$!N#"
PRJ!C#-N" 4R #0! !N"3-N: H!AR%N!@# H!AR:
The act.al prod.ction-sales for the last 2 years and estimation-pro7ection for
the ens.in%-ne/t year.
Cear 0ales ( Rs Crores
E.antity =al.es
2010111 D11.2A
2011112 H3?.AG
201211? GH?.23
201?11A DF1.AD
1etailed operating statements for achie7a?le le7el of production%sales
are enclosed as anne;ure D =-

Assessment of Working Capital ReFuirements:
ARs. in CroresB
%ee Form I+ and + 3ith notes.
Comments on the
le7els of current assets
proEected:
a Raw material The raw material mainly consists medical
chemicals.
b 0tores < 0pares" 0tores and spares are in the form of spares
reJ.ired for the eJ.ipment and machinery .sed in
the prod.ction of pharma prod.cts.
%(
c 0emi finished %oods" The companyIs semi1finished %oods mainly consist
of the chemicals bein% processed for
medicine-dr.%s.
d )inished 6oods 0toc8 of finished %oods is in the form of medicinal
tablets5 syr.p5 in7ections and dr.%s.
e Receivables The receivable level consists of mainly the
domestic and international receivables.
f Other c.rrent assets The other c.rrent assets consist of a si%nificant
portion of the c.rrent asset. This is d.e to
s.fficient advances which are to be recovered.

Comments on current
lia?ilities
a Creditors for p.rchase The company p.rchases material on credit and this
consists of the ma7or trade creditors of the
company in last two years.. :n recent years the
company has been decreasin% credit from its
s.pplier vendors.
b&dvances from
c.stomers
!il.
c Other c.rrent liabilities The other c.rrent liability mostly comprises short
term loans and is in line with the historical trend.
/. OT*(R T(R'0 O) 0&!CT:O!"
Rate of -nterest" $artic.lars of rate of interest char%ed -recommended
are as follows"

Char%ed for e/istin% limits Recommended for proposed
limits
)acility Rate of
:nterest
)acility Rate of
:nterest
0O# 0O# Rs 12.HG
Crores
1.3> above
$LR s.b7ect to
a minim.m of
12.00 > p.a.
payable at
monthly rates.
%'
K:. 04''&RC O) (K:0:T!6 &!# $RO$O0(# CR(#:T L:':T0 )RO' O4R
B&!9"
)acility (/istin% $roposed
a ).nd
Based
To
tal
0O# TL1
Rs23.0crores
12.HG Crores
?3.F2 Crores
b !on ).nd
based
Tot
al
!one !:L !:L
K::. 0*&R:!6 O) )4!# B&0(# &!# !O! )4!# B&0(# CR(#:T L:':T :!
C&0( O) CO!0ORT:4'. T(e )ro)osed 0und based *imit is 1it(in t(e
3P,4 o0 t(e com)any.
K:::. OT*(R L:&B:L:T:(0 O) T*( CO'$&!C-#:R(CTOR0-$&RT!(R0 TO T*(
B&!9" 'i*
K:=" $&RT:C4L&R0 O) &00OC:&T(-6RO4$ CO!C(R!0 #(&L:!6 +:T*
O4R B&!9" 'i*
K=" $&RT:C4L&R0 O) &00OC:&T(-6RO4$ CO!(R!0 #(L&:!6 +:T* OT*(R
B&!90" '.A.
K=:. $O0:T:O! R(6&R#:!6 O4R (K$O04R(" Our )ro)osed e5)osure 1i**
be 1it(in t(e )rudentia* norms o0 t(e $eser/e ,an2 o0 India.
K=::.&. $RO0$(CT0 O) T*( L:!( O) &C:T:=:TC "
:t is a %rowin% ind.stry and e/pandin% %lobally. The company has well
strate%ic foc.s in this area with AH years of e/perience and contin.o.sly
%rowin%. *ence5 it has very %ood prospects.
B. CO'$(T:T:=( $O0:T:O! O) T*( CO'$&!C"
The company beca.se of its inherent stren%th in %lobal e/pansion s.ccess.
R<# is c.rrently foc.sed on the new form.lations development for and as
filin%s5 development of new dr.% delivery systems and development of new
form.lations. CompanyIs R<# has also s.ccessf.lly developed vario.s
prod.cts for site variation pro7ects.
%B
K=:::. OT*(R B(!):T0 #(R:=(# BC T*( BR&!C* )RO' T*:0 &CCO4!T" The
Company is a %ood client with which lon% term relationship can be developed
which will help ban8 in realiLin% more deposits by attractin% companyIs
acco.nt as well as that of e/tendin% non f.nd based facilities in f.t.re
alon%with cash mana%ement facilities.
(:ndicate the e/tent of ancillary income5 deposits maintained with .s etc.
K:K. &!C OT*(R OB0(R=&T:O!0-R('&R90 O) T*( BR&!C* "'one
KK. +*(T*(R T*( CO'$&!C -$R'OT(R0-&00OC:&T( CO'$&!:(0 &R(
):64R:!6 :! T*( L:0T O) #()&4LT(R0 C:RC4L&T(# BC RB:. :) 0O
)4R!:0* #(T&:L0" 'one
KK:. R(CO''(!#&T:O!
+e recommend sanction of the followin% credit limits on the terms and
conditions mentioned a%ainst them5 valid .p to for a period of 12 months.
)acility Limit (Rs in
Crores
RO:-Commn 'ar%in 0ec.rity
0O# 12.HG 1.3> above
$LR s.b7ect
to a
minim.m of
12.0> p.a.
23> on
Receivable
1
st
Char%e on all
c.rrent assets of
the company
ran8in% pari pass.
with other
wor8in% capital
ban8er.
Collateral 0ec.rities" 'i*
!ame of %.arantors" 'one
Other terms of sanction" 'one
&sst-0.b 'ana%er 0r Br. 'ana%er
#ate of forwardin% the $roposal to ZO
20.0D.201?
%&
Actual figures for pre7ious + 8ears and current 8ear
Year
Amounts
in Rs. Thousand
Last 2 Years Actuals
Current
Yr. Next Year
2011 2012 2013 2014
Gross Sales
Total Sales 811.24 653.47 763.25 891.48
Less Excse !ut" 9.22 11.06 12.92 15.09
Net Sales #1 $ 2% 802.02 642.41 750.33 876.39
Cost of Sales
. &a' (aterals #nclu)n* stores an)
ot+er te(s use) n t+e ,rocess o-
(anu-acture% 261.71 277.56 294.49 312.46
. .o'er an) /uel 23.34 29.89 38.26 48.97
0.
!rect La1our #/actor" 'a*es 2
salares% 116.43 101.36 118.39 138.28
0. 3t+er (anu-acturn* ex,enses 18.32 12.97 9.18 6.50
0. !e,recaton 22.65 22.30 21.96 21.62
x. Cost o- .ro)ucton 441.69 444.77 482.91 528.40
xiii. Su1$total Total Cost of Sales! "#$.$% ""&."' "(%.)" %)'.$$

Selln*4 *eneral an) a)(nstrat0e ex,enses 188.19 124.08 81.81 53.94
Su1$total #5 5 6% 614.84 571.48 567.15 584.60
*+eratin, Profit -efore .nterest #3 $ 7% /(&./( &'.0) /()./( #0/.&0
6nterest 10.19 23.87 26.73 29.94
*+eratin, Profit after .nterest #8 $ 9% /&$.00 "&.'$ /%$."% #$/.(%
1et Profit 2 3oss #12 $13% //(.%0 $)).(# (0.0$ /&/.%"
%$ 1epreciation: The depreciation has been char2ed as per #ndian !ompany Act %&)(.
2C
%$ The Ae' "inan(ial ratios for the last five years are as follo5s/
J B Chemicals & Pharmaceuticals 3td.
4ear 5ndin, March )/6 #'// #'/# #'/) #'/"
S+are Ca,tal 16.90 16.94 16.98 17.02
Tan*1le Net 7ort+ 712.83 953.06 1115.71 1307.88
Net 8loc9 228.44 279.19 326.65 381.53
Current Assets 723.84 841.27 980.71 1146.92
Current La1ltes 260.60 182.48 210.66 257.57
Net 7or9n* Ca,tal 463.24 658.79 770.05 889.35
Net .ro-t:Loss 118.59 633.82 89.96 171.54
Cas+ .ro-t:Loss 141.24 656.12 111.92 193.16
Current &ato 2.78 4.61 4.66 4.45
Total 3uts)e La1lt":Tan*1le Net 7ort+ 0.41 0.23 0.22 0.22
Net Sales 802.02 642.41 750.33 876.39
3t+er 6nco(e $35.60 753.28 $49.35 $57.64
.ro-t 8e-ore Tax 141.39 800.34 107.10 204.21
Net .ro-t A-ter Tax 118.59 633.82 89.96 171.54
!e,recaton 22.65 22.30 21.96 21.62
Cas+ ;eneraton 141.24 656.12 111.92 193.16
/xe) Assets 228.44 279.19 326.65 381.53
Ter( La1ltes 33.35 36.34 33.77 31.87
Net .ro-t:Net Sales # <% 14.79< 98.66< 11.99< 19.57<
!0e)en) .a) 16.92 347.30 23.08 26.96
!0)en):Net .ro-t #<% 11.97< 43.39< 21.55< 13.20<
2. The shares o" the (ompan' are traded in %to(< ED(hanes and the mo>ement o" the
share pri(e durin the last 02 months 3as as "ollo3s!
2%
1. A?.ITOR% COMMENT ON COM#AN@=% ;ALANCE %HEET !
A?.ITOR% COMMENT%! /%ee Note-02, 00, 02$
%1 a1 The company has maintained proper records sho5in2 full particulars includin2
?uantitative details and situation of fi"ed assets$
b1 These fi"ed assets have been physically verified by the mana2ement at re2ular interval
considerin2 the size of the company and nature of assets$ 3o material discrepancies have
been noticed on such verification$
c1 3o disposal of a substantial part of fi"ed assets of the company has ta.en place durin2 the
year$
21 a1 As e"plained to us, the inventories 5ere physically verified by the mana2ement at
reasonable intervals durin2 the year$
b1 #n our opinion and accordin2 to the information and e"planation 2iven to us, the
procedures of physical verification of inventories follo5ed by the mana2ement are
reasonable and ade?uate in relation to the size of the company and the nature of its business$
31 a1 Accordin2 to information and e"planation 2iven to us, the company has, durin2 the
year, not 2ranted any loan secured or unsecured to the companies, firms or other parties
covered in the re2ister maintained under section 3C% of the !ompanies Act, %&)($
b1 Accordin2 to information and e"planation 2iven to us, the company had, ta.en unsecured
loans from t5o companies covered in the re2ister maintained under section 3C% of the
!ompanies Act, %&)($
41 The company has ade?uate internal control procedure commensurate 5ith the size of the
company and nature of its business 5ith re2ard to purchase of inventories and fi"ed assets
and for sale of 2oods and services$ 6e have not come across any ma4or 5ea.ness in internal
control$
)1 The company has no accumulated losses and has not incurred cash losses in the current
financial year and in the immediately precedin2 financial year$
(1 The company has not defaulted in repayment of dues to any an.s$
'1 The >verall Financial Position and 5or.in2 results based on the above analysis is
satisfactory$
-ana2er !hief -ana2er
Date/
3ame of theranchGPlace/
22