Attachment 1
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Report
Update On |
1st October, 2001 |
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Report on |
AHP MANUFACTURING BV |
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Registered Office |
New No. 68, Old No. 40, Landons Road, Kilpauk, Chennai – 600 010,
Tamilnadu, INDIA |
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Tel. No. |
91-44-5329099 / 6415203 / 5329005 |
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Fax No. |
91-44-6415210 |
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E-Mail |
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Website |
Attachment 2
SUMMARY
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Incorporated |
1998 |
Status |
Good |
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Registration No. |
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Chief Executive |
Mr. David D. Brown |
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Capital (Rs.) |
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Payments |
Regular |
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Sales (US$) |
6.0 millions |
Litigation |
-- |
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Net Worth |
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Banking Reputation |
Satisfactory |
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No. of Employees |
125 |
Auditors |
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Credit Rating |
Ba (See attachment 3) |
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INDUSTRY
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HISTORY
Subject is a division of AHP Inc., U.S.A. It has commenced distribution activities in India from November 1998.
Fort Dodge was founded in 1912 and was acquired by American Home Products in the year 1945.
American Home Products Corporation, headquartered in Madison, New Jersey, is one of the largest research-based pharmaceutical and health care product companies in the world. AHP is a world leader in research and development, spending about $1.7 billion in overall research and development in 2000. With annual sales of $13.3 billion in 2000 and operations in more than 100 countries, AHP is truly a global health care leader.
AHP is comprised of WYETH; Genetics Institute (a subsidiary of WYETH); Whitehall-Robins Healthcare; Fort Dodge Animal Health; Scientific Protein Laboratories, Inc.; and is the largest shareholder of Immunex Corporation.
IMPORTANT EXECUTIVES
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Mr. David D. Brown |
Country Manager – India |
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Mr. M V. Sudhakar |
General Manager (Sales & Marketing) – India |
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Dr. Arvind Kumar |
Product Manager – India |
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Mr. Vikram P. Narvekar |
Finance Manager |
CORPORATE GOVERNANCE
Board of Directors
John R. Stafford 1
Clifford L. Alexander,Jr. 2,4
Frank A. Bennack, Jr.1,3,5
Richard L. Carrión 3,5
Robert Essner 1
John D. Feerick 2,3
John P. Mascotte 2,3,5
Mary Lake Polan, M.D., Ph.D. 2,4
Ivan G. Seidenberg 1,4,5
Walter V. Shipley 3,5
John R. Torell III 2,4
Directors Emeriti
John W. Culligan
William F. Laporte
PRINCIPAL CORPORATE OFFICERS
John R. Stafford 6,7,8
Robert Essner 6,7,8
Louis L. Hoynes, Jr. 6,7,8
L. Patrick Gage, Ph.D. 7
Kenneth J. Martin 6,7,8
David M. Olivier 6,7
Bernard J. Poussot 7
John B. Adams
Egon E. Berg
Bruce Fadem
Leo C. Jardot
Paul J. Jones 6,7
René R. Lewin 6,8
Thomas M. Nee 6,8
Jack M. O'Connor
Marily H. Rhudy
Lawrence V. Stein
Steven A. Tasher
Justin R. Victoria
Eileen M. Lach
BUSINESS
Subject acts as manufacturers and distributors of animal health products vaccine.
They sell in India through C&F agents and dealer network with a tight spun sales force.
Subject does not export its products.
However, it imports Animal Health Products from America, The Netherlands and other branches all over the world.
The production capacity details could not be available, as they get their products mainly from the parent company.
Today, Fort Dodge Animal Health has approximately 4,000 employees worldwide: 1,700 employees in North America (150 at the headquarters in Overland Park, Kansas), 1,900 international employees, and 400 employees in research and development in New Jersey.
The division established its worldwide headquarters in Overland Park, Kansas,
in 1995. The move to the Kansas City suburb followed the acquisition of the
American Cyanamid Company and Syntex Animal Health, and allowed the company to
centralize its rapidly growing operations.
In addition to the worldwide headquarters located in Overland Park, Kansas,
Fort Dodge Animal Health has global biological facilities in Fort Dodge, Iowa;
Charles City, Iowa; Campinas, Brazil; Sligo, Ireland; Weesp, Netherlands; Olot,
Spain; Glenorie, Australia; and Penrith, Australia. Global pharmaceutical
facilities are located in Fort Dodge, Iowa; Charles City, Iowa; Varela,
Argentina; Olot, Spain; Catania, Italy; Bulsar, India; and Hsinchu, Taiwan.
While visiting the office of the subject, the following observations were carried on :
K Name Board of the subject could be sighted and the visibility of the name board is high.
K Subject office is easy to locate and is situated in an residential premises close to Ega Theatre Complex and Police Head Quarters, Chennai.
K Subject operates from a office area of approximately 50,000 sq. fts., which is worth Rs.50.0 millions.
K Subject office is situated in an upmarket ares.
K Items such as Telephone, Fax Machine, Computers, Air Conditioners, Office Equipments, Xerox Machine, etc. could be easily sighted in the office premises.
Subject is reported to employ around 125 persons comprising of 25 persons in office and 100 persons in factory.
SISTER CONCERNS
Nil in India
BANKERS
K Citibank, Chennai, Tamilnadu, India
FINANCIAL INFORMATION
The parent company's latest financial information for the period ended 31st December, 2000 is enclosed herewith.
Subject’s annual turnover comes to around US$ 6 millions.
COMMENTS
Subject is a part of AHP (American Health Products), U.S.A.
Available information indicates high financial responsibility of the subject. Payments are correct and as per commitments.
Your proposed business dealings of US$ 91,000 can be considered against D/A, D/P or Open Account trade terms.
ABRIDGED BALANCE SHEET AS ON 31ST DECEMBER, 2000
[figures are in thousands except per share amounts]
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December 31, |
2000 |
1999 |
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Assets |
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Cash and cash equivalents |
$ 2,644,306 |
$ 1,892,715 |
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Marketable securities |
341,031 |
520,587 |
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Accounts receivable less allowances (2000 - $144,150 and 1999 - $141,759) |
2,740,272
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2,389,863
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Inventories |
1,531,727 |
1,607,960 |
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Net assets-discontinued business held for sale |
- |
4,192,346 |
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Other current assets including deferred taxes |
2,923,475 |
1,781,307 |
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Total Current Assets |
10,180,811 |
12,384,778 |
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Property, plant and equipment: |
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Land |
149,810 |
135,013 |
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Buildings |
2,694,612 |
2,598,890 |
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Machinery and equipment |
3,510,529 |
3,269,793 |
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Construction in progress |
1,223,282 |
389,252 |
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7,578,233 |
6,392,948 |
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Less accumulated depreciation |
2,543,409 |
2,274,771 |
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5,034,824 |
4,118,177 |
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Goodwill
and other intangibles, net of accumulated amortization |
4,052,410 |
4,823,309 |
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Other assets including deferred taxes |
1,824,421 |
1,797,492 |
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Total Assets |
$21,092,466 |
$23,123,756 |
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Liabilities |
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Loans payable |
$ 58,717 |
$ 1,880,816 |
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Trade accounts payable |
595,233 |
562,679 |
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Accrued expenses |
8,831,459 |
3,809,525 |
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Accrued expenses |
256,650 |
227,363 |
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Total Current Liabilities |
9,742,059 |
6,480,383 |
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Long-term debt |
2,394,790 |
3,606,423 |
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Other noncurrent liabilities |
5,226,495 |
5,925,313 |
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Accrued post-retirement benefits other than pensions |
911,029 |
896,890 |
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Stockholders' Equity |
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$2.00 convertible preferred stock, par value $2.50 per share; 5,000,000 shares authorized |
55 |
61 |
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Common
stock, par value $0.33 1/3 per share; 2,400,000,000 shares authorized (outstanding
shares: 2000-1,311,774,000 and |
437,258 |
434,639 |
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Additional paid-in capital |
3,952,457 |
3,392,705 |
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Retained earnings (accumulated deficit) |
(899,118) |
3,000,827 |
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Accumulated other comprehensive loss |
(672,559) |
(613,485) |
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Total Stockholders' Equity |
2,818,093 |
6,214,747 |
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Total Liabilities and Stockholders' Equity |
$21,092,466 |
$23,123,756 |
CONSOLIDATED STATEMENT OF OPERATIONS
[in thousands except per share amounts]
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Years Ended December 31, |
2000 |
1999 |
1998 |
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Net Revenue |
$13,262,754 |
$11,881,196 |
$11,268,570 |
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Cost of goods sold |
3,269,418 |
3,022,556 |
2,843,185 |
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Selling, general and administrative expenses |
5,032,548 |
4,388,265 |
4,209,162 |
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Research and development expenses |
1,687,889 |
1,587,505 |
1,475,862 |
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Interest expense, net |
57,562 |
213,866 |
207,157 |
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Other income, net |
(161,039) |
(255,697) |
(285,848) |
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Gains on sales of business and Immunex common stock |
(2,061,204) |
-
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(592,084) |
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Termination fee |
(1,709,380) |
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- |
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Litigation charges |
7,500,000 |
4,750,000 |
- |
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Goodwill impairment |
401,000 |
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- |
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Special charges |
347,000 |
82,000 |
321,200 |
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Income (loss) from continuing operations before federal and foreign taxes |
(1,101,040) |
(1,907,299) |
3,089,936
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Provision (benefit) for federal and foreign taxes |
(200,000) |
(700,056) |
937,592
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Income (Loss) from Continuing Operations |
(901,040) |
(1,207,243) |
2,152,344 |
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Discontinued operations: |
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Income (loss) from operations of discontinued agricultural products business (including federal and foreign taxes of $57,289, $1,551 and $173,530 for 2000, 1999 and 1998, respectively) |
103,346 |
(19,878) |
321,994 |
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Loss on disposal of agricultural products business (including federal and foreign tax charges of $855,248) |
(1,572,993) |
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- |
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Income (Loss) from Discontinued Operations |
(1,469,647) |
(19,878) |
321,994
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Net Income (Loss) |
$(2,370,687) |
$ (1,227,121) |
$ 2,474,338 |
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Basic Earnings (Loss) per Share from Continuing Operations |
$ (0.69) |
$ (0.92) |
$ 1.64 |
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Basic Earnings (Loss) per Share from Discontinued Operations |
(1.12) |
(0.02) |
0.24
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Basic Earnings (Loss) per Share |
$ (1.81) |
$ (0.94) |
$ 1.88 |
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Diluted Earnings (Loss) per Share from Continuing Operations |
$ (0.69) |
$ (0.92) |
$ 1.61
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Diluted Earnings (Loss) per Share from Discontinued Operations |
(1.12) |
(0.02) |
0.24
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Diluted Earnings (Loss) per Share |
$ (1.81) |
(0.94) |
$ 1.85 |
Attachment 3
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SCORE SHEET |
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SCORE |
CREDIT RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an
extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational
base are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. Maybe drawn to
slightly difficult position as unfavourable conditions arise. Minimal
assurance for timely payment on interest and principal sums |
Moderate |
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26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively limited or considered not known.
Capability to pay both interest and principal sums is doubtful |
Small |
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11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |
Attachment 4
ACKNOWLEDGEMENT
Dear Sir/Madam,
As part of our control
system, please fax/email us this note
upon receipt of this report. If we do not receive the acknowledgement within 24
hours, we will assume that our report meets your requirement. If you have any
suggestion to help us improve our reports and services, please do not hesitate
to let us know.
Thank you.
______________________________________________________________________________
To : MIRA INFORM PRIVATE
LIMITED
From :
To :
Feedback – Please tick
the appropriate box.
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