MIRA
INFORM REPORT
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Report Date : |
11.04.2007 |
IDENTIFICATION
DETAILS
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Correct Name : |
AUROBINDO PHARMA LIMITED |
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Registered Office : |
Plot No. 2, Mythri Vihar, Behind Mythri Vanam, Ameerpet, Hyderabad – 500 038, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.12.1992 |
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Com. Reg. No.: |
01-15190 |
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CIN No.: [Company
Identification No.] |
L24239AP1986PLC015190 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
HYDA01477A |
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Legal Form : |
Public Limited Liability Company. The Company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of Bulk Drugs, Formulations, Tablets & Capsules, Syrups and Injectables. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 36000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company engaged in manufacturing and marketing of Bulk drugs, Drug intermediates and Formulations. The company’s track are fine. It is making excellent progress in its turnover and profits. The company’s directors are well qualified and experienced in their line of business. Trade relations are fair. Payments are reported as correct and as per commitments. It can be considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 2, Maithri Vihar, Behind Mythri Vanam, Ameerpet, Hyderabad – 500 038, Andhra Pradesh, INDIA. |
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Tel. No.: |
91-40-23741083 / 23741084 / 23744919 |
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Fax No.: |
91-40-23746833 / 23741080 / 23748112 |
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E-Mail : |
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Website : |
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Plants : |
Unit I Survey No. 388
& 38, 9, Borapatla Village, Hatnoora Mandal, Medak Dist, Andhra Pradesh Unit II 103/A S.V.C.I.E.,
I.D.A., Bollaram Jinnaram Mandal, Medak Dt., Andhra Pradesh Unit III Survey No. 313
& 314, Bachupally Village, Quathubullapur Mandal, R. R. Dist., Andhra
Pradesh Unit IV Survey No. 61-
66, Industrial Development Area, Pydibhimavaram, Ranasthalam Mandal,
Srikakulam Dist., Andhra Pradesh Unit V Plot No. 79-91,
Chemical Zone, IDA, Pashamylaram, Patancheru Mandal, Medak Dt., Andhra
Pradesh Unit VI Survey Nos.
329/39 & 329/47, Chitkul Village, Patancheru Mandal, Medak Dt., Andhra
Pradesh Unit VII
Plot No. 32 and
33, Block A, Phase I, Industrial Development Area, Pashamyalaram, Patancheru Mandal,
Medak District, Andhra Pradesh Unit VIII
Survey No. 10,
Gaddapotharam Village, Jinnaram Mandal, Medak District, Andhra Pradesh Unit IX
Survey No. 13,
Industrial Development Area, Kazipally, Gaddapotharam Village, Jinnaram
Mandal, Medak District, Andhar Pradesh Unit X
Survey No. 374, Gundlamachunoor Village, Hatnoora Mandal, Medak District, Andhra Pradesh Unit XI
B-2, SIPCOT
Industrial Complex, Kudikadu Village, Cuddalore, Tamilnadu Unit XII
Survey No. 314,
Bachupally Village, Putubullapur, Mandal, Ranga Reddy District, Andhra
Pradesh, India Bhiwadi
Unit No. 1128, RIICO Phase III, Bhiwadi, Alwar District, Rajasthan, India |
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Research Centre
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Survey No. 313, Bachupally Village, Quathubullapur Mandal, R. R. Dist., Andhra Pradesh |
DIRECTORS
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Name : |
Mr. P. V.
Ramaprasad Reddy |
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Designation : |
Chairman |
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Date of Birth/Age : |
42years |
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Qualification : |
M. Com. |
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Experience : |
19years |
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Date of Appointment : |
26.12.1986 |
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Name : |
Mr. K. Nityananda
Reddy |
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Designation : |
Managing Director |
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Date of Birth/Age : |
42years |
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Qualification : |
M. Sc. |
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Experience : |
19years |
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Date of Appointment : |
26.12.1986 |
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Name : |
Dr. M.
Sivakumaran |
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Designation : |
Whole-time
Director |
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Date of Birth/Age : |
56 years |
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Qualification : |
M. Sc., Ph. D. |
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Experience : |
26 years |
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Date of Appointment : |
30.03.1992 |
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Name : |
Mr. B. Sivaprasad
Reddy |
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Designation : |
Whole-time
Director |
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Name : |
Mr. Lanka
Srinivas |
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Designation : |
Non Executive
Director |
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Name : |
Dr. I.
Sathyamurthy |
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Designation : |
Non Executive
Director |
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Name : |
Mr. V. S.
Janardhanam |
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Designation : |
Non Executive
Director |
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Name : |
Dr. S. Bimal
Singh |
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Designation : |
Non Executive
Director |
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Name : |
Dr. K. A.
Balasubramanian |
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Designation : |
Non Executive
Director |
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Name : |
Mr. A. Siv Rama
Prasad |
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Designation : |
Director |
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Name : |
Mr. K. A.
Venkatachalam |
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Designation : |
Director |
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Name : |
Mr. M. Ajaya
Kumar |
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Designation : |
Director |
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Name : |
Mr. A. J. Kamath |
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Designation : |
Director |
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Name : |
Mr. P. Suneela
Rani |
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Designation : |
Director |
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Name : |
Mr. K. A.
Balasubramanian |
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Designation : |
Non Executive
Director |
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Name : |
Mr. Karamjit
Singh Butalia |
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Designation : |
Non Executive
Director |
KEY EXECUTIVES
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Name : |
Mr. P S Chandra Mouli |
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Designation : |
Company Secretary |
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Name : |
Mr. Sudhir B. Singhi |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Category |
No. of Shares |
% of Shares |
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Promoters, Directors, Associates and their relatives |
29712344 |
55.78 |
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NRIs/FIIs/OCBs |
16583567 |
31.13 |
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Government /Banks/FIs |
1536697 |
2.89 |
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UTI / Mutual Funds |
1663851 |
3.12 |
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Bodies Corporate |
533094 |
1.00 |
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General Public |
3144679 |
5.90 |
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Others |
95768 |
0.18 |
Shareholding Pattern
as at March 31, 2007
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Category of
Shareholder |
Total number of shares |
Total shareholding as a percentage of total number of shares |
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Shareholding of
promoter and promoter group |
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Indian |
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Individual/Hindu Undivided family |
29712232 |
55.69 |
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Public shareholding |
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Institutions |
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Mutual funds / UTI |
2756475 |
11.66 |
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Financial Institutions/Banks |
27100 |
0.11 |
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Insurance Companies |
1366075 |
5.78 |
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Foreign institutional investors |
16307656 |
68.99 |
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Sub Total (B 1) |
20457306 |
86.55 |
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Non Institutions |
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Bodies Corporate |
221908 |
0.94 |
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Individuals shareholders holding nominal share capital up
to Rs. 0.1 million |
2724694 |
11.53 |
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Individuals shareholders holding nominal share capital in
excess of Rs. 0.1 million |
137525 |
0.58 |
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Others |
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Non-Resident Indians |
73036 |
0.31 |
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Overseas Corporate Bodies |
12000 |
0.05 |
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Clearing Members |
9936 |
0.04 |
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Sub Total |
3179099 |
13.45 |
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Sub Total |
23636405 |
100.00 |
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Total |
23636405 |
100.00 |
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Grand Total |
23636405 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Bulk Drugs, Formulations, Tablets & Capsules, Syrups and Injectables. |
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Products : |
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Imports from : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C, D/A or D/P |
PRODUCTION STATUS
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PARTICULARS |
Unit |
Installed Capacity |
Actual
Production |
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Bulk Drugs &
Drug Intermediates |
Tonnes |
16807 |
8683 |
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Tablets &
Capsules |
Million Nos. |
24402 |
9290 |
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Injectables |
Nos. |
56960000 |
13917151 |
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Syrups |
Ltrs. |
32500000 |
2833869 |
GENERAL
INFORMATION
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Suppliers : |
v Helm AG, Germany v Harbin Pharmaceutical Factory, China v Hunan Provincinal Medicines & Health Products I/E Corporation, China v Voest – Alpine Intertrading GmbH, Austria v Siber Henger, Hongkong v Indukern Chemie AG, Switzerland v Chemica E Farmaceutica SPA, Italy v Deriva Dos Deretil S. A., Spain v Lisa Ampoules & Vials Private Limited v Ravi Industries v Polomon Instruments Private Limited v Plastic Shapers v Rolon Seals v Forbes Marshall Hyd Limited v Global Electronics v Fine Fabs Private Limited v Paper Pack Industries |
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Customers : |
v Ranit Pharma Limited v Vamsi Organics Private Limited v Sharp Organics Private Limited v Champion Industries Corporation v Global Electronics v LG Thermoflo Systems Private Limited v Lakshmi Engineering Enterprises v Ravi Industries v Southern Plantiaids Private Limited v Vaiktro Enterprises v Hyderabad Packaging v Lisa Ampoules & Vials Private Limited v Sree Krishna Prasad Graphic Private Limited v Citadel Aurobindo Biotech Limited |
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No. of Employees : |
2450 |
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Bankers : |
v Andhra Bank v Canara Bank v HDFC Bank Limited v HSBC Bank v ICICI Bank Limited v IDBI Bank Limited v Standard Chartered Grindlays Bank v State Bank of Hyderabad v State Bank of India v EXIM Bank v ANZ Grindlays Bank Limited, 5-9-234, M G Road, Abid, Hyderabad-500001, Andhra Pradesh, India v Canara Bank, India v Punjab National Bank, Musheerabad Branch, Hyderabad-500020, Andhra Pradesh, India v Vietcom Bank, Vietnam v Vheshtorg Bank, russis v Bank of Nova Scotia, Costa Rica v Commerce Bank, USA v Wells Fargo Bank, USA v Unicredit Bank, Italy v Sber Bank, Russia |
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Facilities : |
(figures are in Rupees Millions)
Secured Loans (Rs. In millions) a. Debentures are
secured by: registered
mortgage of immovable property situated at Thane, Maharashtra. first pari passu
charge by equitable mortgage by deposit of title deeds by way of constructive
delivery of all the Company's immovable property wherever situated including
plant and machinery, spares, tools and accessories both present and future. first charge by
way of hypothecation ranking pari-passu with term loans of all the movable
assets (save and except book debts), both present and future subject to prior
charges created in favour of the Company's bankers to secure working capital
requirements. b. Term loans are
secured by: first charge
ranking pari-passu with debentures on the immovable properties both present
and future, by equitable mortgage by deposit of title deeds by way of constructive
delivery of the Company's lands wherever situated. first charge
ranking pari-passu with debentures on all the movable assets (save and except
book debts), both present and future subject to prior charges created in
favour of the Company's bankers to secure working capital requirements. personal
guarantees given by the Chairman and the Managing Director of the Company
aggregating to Rs.2,257.1 (Rs.2,890.7) c. Other working
capital loans from banks are secured by: first charge,
ranking pari-passu by way of hypothecation of all the stocks, book debts and
other current assets (both present and future). second charge on
all the immovable properties of the Company subject to charges created in
favour of term lenders and debenture holders. personal
guarantees given by the Chairman and the Managing Director of the Company
aggregating to Rs.3,291.7 (Rs.2,602.6). Unsecured loans a. Short Term Loans: Short Term Loans
from banks aggregating to Rs.2,175.0 (Rs.l,300.0) are personally guaranteed
by the Chairman and the Managing Director of the Company. b. Foreign Currency Convertible Bonds: 60,000 Zero
Coupon Foreign Currency Convertible bonds (bonds) due 2010 of US$ 1,000 each
are: i. convertible by
the holders at any time on or after September 20, 2005 but prior to close of
business (at the place the bonds are deposited for conversion) on August 8,
2010. Each bond will be converted into 83.12 fully paid up equity share with
par value of Rs.5 per share at a fixed price of Rs.522.036 per share at a
fixed exchange rate conversion of Rs.43.3925 = US$ 1. ii. redeemable in
whole but not in part at the option of the Company at any time on or after
February 25, 2008 and on or prior to August 1, 2010 as per the terms and
conditions of the bonds mentioned in the Offering circular. iii. redeemable
on maturity date at 139.954% of its principal amount if not redeemed or
converted earlier. iv. The Company
is of the opinion that since the bonds are convertible into equity shares,
the creation of Debenture Redemption Reserve is not required. |
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Banking Relations
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Good |
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Auditors : |
S. R. Batliboi & Company Chartered Accountants 205, 2nd Floor, Ashoka Bhoopal Chambers, S. P. Road, Hyderabad, Andhra Pradesh, India Internal Auditors K. Nagaraju & Associates Chartered Accountants 1-8-197, Chikkadpally, Hyderabad, Andhra Pradesh, India |
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Joint Venture : |
Citadel Aurobindo Biotech Limited, India |
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Holding Company |
Pravesha Industries Private Limited, India |
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Associates/Subsidiaries : |
v Ranit Finance & Leasing Limited v P. V. R. Investments Private Limited v Ranit Agro Private Limited v Pravesha Machine Works Private Limited v Andhra Organics Limited v Sharp Organics Private Limied v Ranit Agro Private Limited Subsidiaries v APL Pharma Thai Limited, Thailand v Aurobindo USA LLC, Miami, USA v Aurobindo (HK) Limited, Hongkong v APL Holdings Inc. California, USA v Aurobindo Pharmaceutical Do Brazil Limiteda, Brazil v Aurobindo (Datong) Bio-Pharma Company Limited, China v Aurobindo Tongling (Datong) Pharmaceutical Co. Limited, China v Shanghai Widetex Chemical Company Limited, China v Helix Healthcare B.V. v Aurobindo Pharma USA Inc. v APL Life Sciences Limited, India (formerly APL Chemi Natura Limited) v APL Pharma Thai Limited, Thailand v A B Farmo Quimica Brazil Limited, Brazil v Auro Pharma Inc., Canada v Aurex Generics Limited, U.K. v Aurobindo Pharma (Pty.) Limited, South Africa v Milpharm Limited, U.K. v ZAO Aurobindo Pharma, Russia |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000,000 |
Equity Shares |
Rs. 5/- |
Rs. 500.000 millions |
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1,000,000 |
Preference Shares |
Rs. 100/- |
Rs. 100.000 millions |
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Total |
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Rs. 600.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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53,270,000 |
Equity Shares |
Rs.5/- |
Rs. 266.300 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
266.300 |
253.900 |
253.900 |
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2] Share
Application Money |
0.400 |
0.000 |
0.000 |
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2] Reserves &
Surplus |
8787.800 |
7632.000 |
7309.900 |
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NETWORTH
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9054.500 |
7885.900 |
7563.800 |
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LOAN FUNDS |
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1] Secured Loans |
6441.200 |
6244.000 |
5146.100 |
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2] Unsecured
Loans |
5611.000 |
2047.200 |
1037.800 |
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TOTAL BORROWING
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12052.200 |
8291.200 |
6183.900 |
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Equity Share Warrants
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0.000 |
350.000 |
350.000 |
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DEFERRED TAX
LIABILITIES |
718.600 |
559.800 |
521.000 |
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TOTAL
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21825.300 |
17086.900 |
14618.700 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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6816.800 |
5780.500 |
4730.000 |
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Capital work-in-progress
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1454.500 |
1765.000 |
1116.000 |
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INVESTMENT
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367.400 |
1512.700 |
1488.900 |
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Intangible Assets
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1741.600 |
167.300 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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3834.400 |
3235.800 |
2596.400 |
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Sundry Debtors
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5690.000 |
4413.800 |
4568.500 |
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Cash & Bank Balances
|
1420.700 |
138.000 |
374.100 |
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Other Current Assets
|
0.400 |
0.500 |
3.700 |
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Loans & Advances
|
3481.600 |
2134.700 |
1494.500 |
Total Current Assets
|
14427.100 |
9922.800 |
9037.200 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
2845.300 |
1951.500 |
1550.900 |
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Provisions
|
136.800 |
109.900 |
202.500 |
Total Current Liabilities
|
2982.100
|
2061.400
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1753.400
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Net Current Assets
|
11445.000 |
7861.400 |
7283.800 |
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TOTAL
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21825.300 |
17086.900 |
14618.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
13952.100 |
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13090.500 |
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Other Income |
578.700 |
297.300 |
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Total Income |
14530.800 |
11147.500 |
13090.500 |
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Profit/(Loss) Before Tax |
929.000 |
429.200 |
1725.300 |
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Provision for Taxation |
235.200 |
78.400 |
455.000 |
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Profit/(Loss) After Tax |
693.800 |
350.800 |
1270.300 |
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Earnings in
Foreign Currency : |
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Export Earnings |
8163.300 |
5546.200 |
6448.700 |
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Other Earnings |
166.200 |
81.000 |
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Total Earnings |
8329.500 |
5627.200 |
6448.700 |
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Imports : |
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Raw Materials |
6547.500 |
4898.500 |
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Stores & Spares |
53.800 |
50.200 |
5395.800 |
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Capital Goods |
292.100 |
324.800 |
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Others |
75.800 |
33.400 |
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Total Imports |
6969.200 |
5306.900 |
5395.800 |
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Expenditures : |
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Manufacturing Expenses |
1796.500 |
1724.600 |
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Administrative Expenses |
868.900 |
952.300 |
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Raw Material Consumed |
8873.900 |
6404.800 |
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Purchases made for re-sale |
152.800 |
169.600 |
11365.000 |
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Salaries, Wages, Bonus, etc. |
792.100 |
662.200 |
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Interest |
606.400 |
399.900 |
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Depreciation & Amortization |
511.200 |
404.900 |
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Total
Expenditure |
13601.800 |
10718.300 |
11365.000 |
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QUARTERLY RESULTS
|
Particulars |
30.06.2006 (1st Qtr.) |
30.09.2006 (2nd Qtr.) |
31.12.2006 (3rd Qtr.) |
|
Sales
Turnover |
4385.600 |
4800.000 |
5284.000 |
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Other
Income |
171.100 |
267.000 |
263.300 |
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Total
Income |
4556.700 |
5067.000 |
5547.300 |
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Total
Expenditure |
3726.800 |
4109.100 |
4499.300 |
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Operating
Profit |
829.900 |
957.900 |
1048.000 |
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Interest |
180.900 |
202.400 |
196.700 |
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Gross
Profit |
649.000 |
755.500 |
851.300 |
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Depreciation |
142.800 |
149.900 |
162.900 |
|
Tax |
6.700 |
47.700 |
43.200 |
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Reported
PAT |
362.100 |
546.400 |
601.200 |
200606 Quarter 1
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (445.10)million Consumption
of Raw Materials Rs 2921.20 million Staff Cost Rs 258.00 million Other
Expenditure Rs 992.70 million Tax Includes Provision for Current Tax (MAT
Provision) Rs 58.10 million MAT Credit Entitlement Rs (52.20) million Deferred
Tax Rs 137.40 million Fringe Benefit Tax Rs 0.80 million EPS is Basic Status of
Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at
the beginning of the quarter Nil Complaints Received during the quarter 125
Complaints disposed off during the quarter 125 Complaints unresolved at the end
of the quarter Nil 1. The above unaudited results subject to limited review by
the Auditors of the Company, were reviewed by the Audit Committee and have been
taken on record by the Board at its meeting held on July 31, 2006. 2. The
Company's operations fall within a single primary business segment viz.
pharmaceutical Products. 3. Sales for the quarter include exports of Rs 2515.90
million (Rs 1585.30 million). 4. During the quarter, Company has raised USD 200
Millions through issue of zero coupon Foreign Currency Convertible Bonds due
2011. 5. Figures for the previous quarter have been rearranged wherever
necessary.
200609 Quarter 2
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs 84.40 million Consumption
of Raw Materials Rs 2541.70 million Staff Cost Rs 288.10 million Other
Expenditure Rs 1194.90 million Tax Includes Provision for Current Tax (MAT
Provision) Rs 60.50 million MAT Credit Entitlement Rs (13.70) million Deferred
Tax Rs 11.50 million Fringe Benefit Tax Rs 0.90 million EPS is Basic Status of
Investor Complaints for the quarter ended September 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 218
Complaints disposed off during the quarter 218 Complaints unresolved at the end
of the quarter Nil 1. The above unaudited results which are subject to limited
review by the Auditors of the Company were reviewed by the Audit Committee and
have been taken on record by the Board at its meeting held on October 30, 2006.
2. Sales for the quarter include exports of Rs 2801.70 million (Rs 1506.20
million). 3. The Company operations & fall within a single primary business
segment viz. 'Pharmaceutical Products'. 4. During the quarter the Company
allotted 24,661 equity shares of Rs 5 each at Rs 362.60 per share under
Employees Stock Option Plan 2004. Hence, the paid up capital stands increased
to Rs 266.473 million divided into 532.95 Lakh (532.70 lakhs) shares of Rs 5
each. 5. Premium on redemption of USD 260 Million zero coupon Foreign Currency
Convertible Bonds is contingent in nature, the outcome of which is dependant on
uncertain future events. 6. With regard to addressing the qualifications of
audited accounts for the year ended March 31, 2006 in the Quarterly results (a)
on treatment of non-compete fee adjusted against the capital reserve, it is to
explain that the issue has no impact either on the profit of March 31, 2006 or
on any of the quarterly results of the current year and (b) On non - provision
for diminution in value of certain investments made in overseas subsidiaries,
it is to explain that the Company has made strategic investments in
manufacturing overseas subsidiaries for vertical integration. Considering
nature of industry and gestation period involved, in the opinion of management,
the diminution is of temporary nature and does not require any provision. 7.
The Company has acquired during the quarter a US FDA compliant cGMP facility in
Dayton, New Jersey, which has fully integrated state of the art R&D,
formulation manufacturing and distribution facilities with potential for future
expansion. 8. The formulation manufacturing facility situated at Bachupally
village, Ranga Reddy District, (Unit III) is converted in to 100% Exported
Oriented Undertaking with effect from July 01, 2006. 9. Figures for the
previous periods have been rearranged / regrouped wherever necessary.
200612 Quarter 3
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (222.90) million
Consumption of Raw Materials Rs 3284.60 million Staff Cost Rs 262.70 million
Other Expenditure Rs 1174.90 million Tax Includes Provision for Current Tax
(MAT Provision) Rs 40.00 million MAT Credit Entitlement Rs 11.30 million
Deferred Tax Rs 44.00 million Fringe Benefit Tax Rs 1.10 million Tax adjustment
of previous years Rs (9.20) million EPS is Basic Status of Investor Complaints
for the quarter ended December 31, 2006 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter 79 Complaints disposed
off during the quarter 79 Complaints unresolved at the end of the quarter Nil
1. The above unaudited results which are subject to limited review by the
Auditors of the Company were reviewed by the Audit Committee and have been
taken on record by the Board at its meeting held on January 31, 2007. 2. Sales
for the quarter include exports of Rs 3048.90 million (Rs 2338.00 million). 3.
The Company operations & fall within a single primary business segment viz.
'Pharmaceutical Products'. 4. During the quarter the Company allotted 53976
equity shares of Rs 5 each at Rs 362.60 per share under Employees Stock Option
Plan 2004. Hence, the paid up capital stands increased to Rs 266.743 million
divided into 533.49 Lakh (532.70 lakhs) shares of Rs 5 each. 5. Premium on
redemption of USD 260 Million zero coupon Foreign Currency Convertible Bonds is
contingent in nature, since its outcome of which is dependant on uncertain
future events. 6. With regard to addressing the qualifications of audited
accounts for the year ended March 31, 2006 in the Quarterly results (a) on
treatment of non-compete fee adjusted against the capital reserve, it is to
explain that the issue has no impact either on the profit of March 31, 2006 or
on any of the quarterly results of the current year and (b) On non - provision
for diminution in value of certain investments made in overseas subsidiaries,
it is to explain that in the opinion of management, the diminution is of
temporary nature and does not require any provision. 7. The Company has
acquired during the quarter (a) a Hyderabad based Senor Organics Private
Limited a profit making small pharma manufacturing Company to integrate its
operations with the Company and (b) a Netherlands based - Pharmacin
International BV profit making generic pharma Company through its WOS at
Netherlands to expand its marketing presence in Europe with a dependable
infrastructure. 8. The Company has formed during the quarter two WOS viz APL
Research Centres and APL Healthcare Limited. 9. The Company has filed with the
Hon'ble High Court of Judicature of Andhra Pradesh at Hyderabad a Scheme of
Arrangement ('the Scheme') for the merger of APL Life Sciences Limited and
Sciences Limited and Senor Organics Private Limited., both wholly owned
subsidiary Companies, with the Company and for utilisation of its Securities
Premium Account. Pursuant to the Direction of the Equity Shareholders for
approving the Scheme is scheduled to be held on February 20, 2007. pending
approval of the Hon'ble High Court, on effect of the Scheme is given in these
financials. 10. Figures for the previous periods have been rearranged
/regrouped wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.20 |
0.94 |
0.89 |
|
Long Term Debt-Equity
Ratio |
0.64 |
0.51 |
0.53 |
|
Current Ratio |
1.50 |
1.54 |
1.69 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.74 |
1.73 |
2.77 |
|
Inventory |
4.10 |
3.96 |
5.76 |
|
Debtors |
2.87 |
2.57 |
3.09 |
|
Interest Cover
Ratio |
2.53 |
2.07 |
6.35 |
|
Operating Profit
Margin(%) |
14.13 |
10.70 |
17.90 |
|
Profit Before
Interest And Tax Margin(%) |
10.60 |
7.19 |
15.34 |
|
Cash Profit
Margin(%) |
8.32 |
6.55 |
12.08 |
|
Adjusted Net
Profit Margin(%) |
4.79 |
3.04 |
9.52 |
|
Return On Capital
Employed(%) |
8.24 |
5.54 |
16.83 |
|
Return On Net
Worth(%) |
8.19 |
4.54 |
19.70 |
STOCK PRICES
|
Face Value |
Rs.100.00/- |
|
High |
Rs.690.00 |
|
Low |
Rs.682.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 26th December, 1986 at Hyderabad in Andhra Pradesh having Company Registration Number 01-15190.
Now Ranit Pharma Limited has merged with Subject w.e.f. 30th December, 1992.
The company which commenced production in 1988 is one of the largest manufacturer of semi-synthetic penicillin bulk drugs --ampicillin and amoxycillin. It has integrated facilities to manufacture bulk drugs, bulk drug intermediates and formulations.
Commercial production at the pharmaceutical formulation unit started in April 1994. Installed capacity at the bulk drugs unit was expanded in 1994-95. Over the years, the product range was expanded to include antibiotic bulk drugs like cloxacillin and dicloxacillin and high value drugs like astemizole, famotidine, domeperidone, omeprazole, norfloxacin and ciprofloxacin.
Chaitanya Organics Private Limited was set up in 1992 to manufacture CMIC chloride -- a bulk drug intermediate. Its capacity was increased from 120 tpa to 144 tpa after its merger with the company in 1994-95. The capacity for a new intermediate, DCMIC chloride, which is being manufactured in this unit since April 1994, has also been expanded. A separate block was set up to manufacture norfloxacillin and perfloxacillin. A government recognised export house, the company has developed a reputed client base both in India and abroad.
During 1999-2000, the company diversified its product portfolio further with the introduction of wide range of Cephalosporins (Oral and Sterile) and anti - virals in addition to macrocodes, anti-ulcerates, quinolones, semi synthetic penicillin's and formulations for domestic and export market . In April 2000, the company has allotted bonus shares in ratio 1:1.
Biodata
Subject, which commenced production in 1988, is one of the largest manufacturer of semi-synthetic penicillin bulk drugs -- ampicillin and amoxycillin. It has integrated facilities to manufacture bulk drugs, bulk drug intermediates and formulations.
Commercial production at the pharmaceutical formulation unit started in
Apr.'94. Installed capacity at the bulk drugs unit was expanded in 1994-95.
Over the years, the product range was expanded to include antibiotic bulk drugs
like cloxacillin and dicloxacillin and high-value drugs like astemizole,
famotidine, domeperidone , omeprazole, norfloxacin and ciprofloxacin.
Chaitanya Organics Private Limited was set up in 1992 to manufacture CMIC
chloride -- a bulk drug intermediate. Its capacity was increased from 120 tpa
to 144 tpa after its merger with Subject in 1994-95. The capacity for a new
intermediate, DCMIC chloride, which is being manufactured in this unit since
Apr.'94, has also been expanded. A separate block was set up to manufacture
norfloxacillin and perfloxacillin. A government recognised export house, the
company has developed a reputed client base both in India and abroad.
During 1999-2000, the company has diversified its product portfolio further
with the introduction of wide range of Cephalosporins (Oral & Sterile) and
anti - virals in addition to macrolides, anti-ulcerants, quinolones,
semi-synthetic penicillins and formulations for domestic and export market. In
April 2000, the company has alloted bonus shares in ratio of 1:1.
Sri Chakra Remedies Limited was amalgamated with the company and three equity
share of Rs 10/- each of the company was alloted for every 100 existing equity
shares of Rs 10/- each of Sri Chakra Remedies held.
The company has a new division called 'IMUNUS' dedicated to AIDs patients. The
division has launched two new products called INDIVEX and STAVEX and is
planning to launch few more products.
For marketing of its branded formulations in the domestic market the company
has formed a 50:50 JV with Citadel Group. The joint venture, Citadel Aurobindo
Biotech Limited will focus on therapetutic areas like Cardiovascular,
diabetology, gastroenterology, infection and pain management. During 2001-02
the company acquired 79% stake in Ranit Pharma a unlisted company under the
same management. In 2002-03 Ranit Pharma and Calc Private Limited was
amalgamated with APL and date was as on 1st April,2002.
The company has gone for expansion during the year 2002-03 for both Bulk drugs
and Formulations. The installed capacity of Bulk Drugs & Drug Intermediates
has been increased by 5153 tonnes, thereby the total capacity to 12115 tonnes.
In the Formulation segment, installed capacity of Tablets and Injectibles have
been increased by 369 millions (Nos) and 120 millions (Nos) respectively.
It has entered into an agreement joint venture company called Cephazone Pharma
LLC, USA in association with Geravi Inc, a subsidiary of Medpharmex USA to
manufacture sterile and non-sterile cephalosporin. The company is also setting
up a 100% subsidiary in China which will help to procure raw material 6 APA at
an economical cost. This subsidiary unit is expected to commence its operation
in the current financial year(2002-03).The Srikakulam Unit to manufacture
products like Ciprofloxacin, Enrofloxacin, Amoxycillin went on stream during
2002-03. The total investment for the green field project is Rs.1150 million
and spread over 112 acres of land.
Profile
Subject is a fast track integrated pharmaceutical company headquartered in Hyderabad, India, producing and marketing some of the most quality conscious Active Pharmaceutical Ingredients (bulk actives), intermediates and speciality generic formulations.
It ranks among the top 5 pharma companies in India and is a multi product, multi technology, transnational company. Today the Company’s products are serving consumers in India and over 100 other countries.
Subject is an R&D driven chemistry business house, with a very broad product portfolio. The Company has a presence in fast growing life style disease drugs, anti infective drugs and key speciality therapeutics.
The Company is a known leader in the semi synthetic penicillins and cephalosporins. Indeed, Subject seeks to attain significant market presence in every area of its business. After creating a name for itself in producing APIs and intermediates, Subject sees major growth in its speciality generic formulations business.
Subject values its contribution to its customers and the medical profession.
The Company has accordingly planned its strategic growth, proactively responded
to the changing requirements of the medical profession, and enabled its core
customers to meet their market needs.
The customers of the Company benefit from the most modern and state-of-the-art manufacturing facilities and a quality conscious approach to business. Subject believes in delivering value in every transaction.
The Company sees its potential both in regulated and other global markets. In regulated markets, Subject visualises profits aided by the thrust in building intellectual property. In the large growth segments of other global markets, the Company will succeed by virtue of its cost efficient production.
Volumes have been ensured by expanding capacities in the remunerative/demand
pull segments. In turn, this has provided economies of scale. Subject takes
care to remain a quality conscious cost efficient producer.
Business
The company is engaged in manufacturing and marketing of Bulk Drugs, Formulations, Tablets & Capsules, Syrups and Injectables.
Sri Chakra Remedies Limited was amalgamated with the company and three equity shares of Rs. 10/- each of the company were allotted for every 100 existing equity shares of Rs. 10/- each of Sri Chakra Remedies held.
The company has a new division called 'IMUNUS' dedicated to AIDs patients. The division has launched two new products called INDIVEX and STAVEX and is planning to launch few more products.
For marketing of its branded formulations in the domestic market the company has formed a 50:50 joint venture with Citadel Group. The joint venture, Citadel Aurobindo Biotech Limited will focus therapeutic areas like Cardiovascular, diabetology, gastroenterology, infection and pain management. During 2001-02 the company acquired 79% stake in Ranit Pharma a unlisted company under the same management. It has entered into an agreement with joint venture company called Cephazone Pharma LLC, USA in association with Geravi Inc, a subsidiary of Medpharmex USA to manufacture sterile and non-sterile cephalosporin. The company is also setting up a 100% subsidiary in China, which will help to procure raw material 6 APA at an economical cost. This subsidiary unit is expected to commence its operation in the current financial year (2002-03). The Srikakulam Unit to manufacture products likes Ciprofloxacin, Enrofloxacin, Amoxycilin will be on stream in the 3rd Quarter of 2002.
REVIEW OF OPERATIONS
During 2005-06, the
Company made a strategic entry with its generic formulations in the premium
markets of USA & Europe, participated in the PEPFAR program initiated by
the Government of USA and consolidated its strengths in the less regulated and
emerging markets.
This was done while
retaining its leadership position in the domestic API market.
All these positive
developments helped the Company improve its top and bottom line.
Margins were
better, and hence the operating profit was higher over the previous year.
Revenues for the
year at Rs.14722.0 million were higher by 27% and the consolidated net income
was Rs.693.8 million, an increase of 98%. Subject effectively faced the
challenges of entering into severely competitive markets, prevailing high raw
material costs and pressure on product prices. The strengths of the Company -
efficient production systems, ability to manage resources from end-to-end, cost
competitiveness, and capacity to deliver what the customer wants at affordable
prices – helped overcome the constraints.
The Company sees
big potential for its products in the regulated markets, with its large basket
of regulatory approved products.
As at March 31,
2006, Subject holds 27 product approvals from US FDA (inclusive of tentative)
and approvals for 3 products each from EDQM, UK MHRA and Health Canada. The
pipeline of new products being developed by the team in R&D and the pending
dossiers awaiting approvals, would add to the offers to the market in the
future.
RECOGNITION
The State Labour
Department of the Government of Andhra Pradesh has awarded the "Best
Management Award" for the year 2005 for the Company's contributions
towards community development, harmonious employee relations and their welfare.
The award was presented by the Hon'ble Chief Minister of Andhra Pradesh on May
1, 2006 during May Day Celebrations.
Subject's three US
Patents received the prestigious national level Patent Appreciation Award from
the Indian Drug Manufacturers' Association for the year 2004-2005. Subject
received the award for the following patents:
v
Preparation of
pure Citalopram (Depression)
v
A process for
Lactonization to produce Simvastatin (Hypercholesterolemia) and,
v
Process for
producing highly pure
v
Simvastatin
(Hypercholesterolemia).
The Company has
filed applications for over 160 patents in various countries.
ACQUISITIONS
The Company
acquired UK based Milpharm Limited, the generic formulation pharmaceutical
company engaged in marketing generic formulations mainly in the UK market.
Under the terms of
the share purchase agreement, Subject has acquired 100% shares of Milpharm
Limited, a profit making generic formulations company, which owns over one hundred
Marketing Authorizations (MAs) approved by Medicines and Healthcare Products
Regulatory Agency, UK
(UK MHRA).
Milpharm recorded a
sale of Ł7.7 million for the 12 month period ended September 30, 2005.
The MAs are well
diversified into various segments - CNS, CVS, GI, diabetology, antifungal,
Anti-bacterial, oncology, macrolides, cephalosporins and SSPs, anti diabetic,
NSAIDS and others. Milpharm has established relationships in the generic
Pharmaceuticals and Subject expects to build on these relationships to
participate in the generic Pharmaceuticals value chain.
The Company also
acquired a business entity in Dayton, New Jersey, USA, for US$ 19 million,
which has US FDA Compliant cGMP facility and freehold land spread over 20
Acres. It has 100,000 sft. of fully integrated state-of-the-art facility with
R&D capabilities and for manufacture of formulations and distribution.
In addition to
expanding its reach in the market, the Company is pursuing inorganic growth in USA
and Europe to reduce the time to market and enhance the relationships in the
generic value chain.
OUTLOOK
The presence of the
Company in almost all major markets, ability to read the market trends, a large
product basket in key therapeutic segments, well-organised manufacturing
infrastructure with necessary inspections by international regulatory
authorities, a reservoir of skills amongst scientists and technical staff have
all made Subject into a powerhouse of opportunities.
The Company today
has the strategy and strength to play a larger role in all its addressable
markets.
The Company's
robust product portfolio is spread over 6 major therapeutic/product areas
encompassing (antibiotics, anti-retrovirals, CVS, CNS, gastroenterologicals,
and antiallergies) 65 APIs in the non-antibiotics and 55 APIs in the antibiotic
segment. Within each segment, they are well represented.
For instance,
Subject has 13 products in its ARV portfolio. This has made it easier for the
countries participating in the PEPFAR program to place order at a single
window.
INDUSTRY STRUCTURE
Subject is a fast
track integrated pharmaceutical company headquartered in Hyderabad, India,
developing, manufacturing and marketing Active Pharmaceutical Ingredients (bulk
actives), intermediates and generic formulations. The Company ranks among the
top five pharmaceutical companies in India and is a multi product, multi
technology, and transnational company. Today the Company's products are serving
consumers in India and over 100 other countries, including the premium markets
of US & Europe.
The Company values
its contribution to its customers and the medical profession and growth plans
have been made keeping this perspective. Subject proactively responds to the
changing requirements of the medical profession and enables its core customers
to meet their market needs while
taking care to
remain a quality conscious cost efficient producer. Subject's goal is to build
a globally successful pharmaceutical company and its mission is to make quality
pharmaceutical products affordable to all. The Company seeks to establish a
strong presence for its generic formulation products in the regulated markets.
INDUSTRY DEVELOPMENTS
The global
pharmaceutical industry is growing at 10% per annum and is estimated to be
valued at US$ 518 billion of which North America and Europe account for 48% and
28% respectively. The highly regulated US market includes drugs which are under
patent and those that have gone off patent, and is valued at around US$ 248
billion.
The regulated
markets protect intellectual property rights, including product patent
protection. These are also markets which have stringent quality standards, and
stipulate regulatory inspection of manufacturing
facilities and
approval of products marketed. Rising healthcare costs have led to many
governments enforcing stricter cost containment measures. The effect of this is
a growing market for generic pharmaceutical products. The generics market is
notching percentage growth higher than the industry growth.
Under the new
patent regime, the innovator (patent holder) of the drug retains the product
patent for a fixed period of twenty years.
Generic
manufacturers are permitted to compete with the innovator after patent expiry.
The world's leading
drugs are facing patent expiry in the near future. In the United States alone,
close to $50 billion worth of branded revenue will be made available to generic
competition.
This is the right
time for a research led company such as Subject with quality products,
regulatory approvals and a competitive approach to gain significant market
share; in the process creating a name for itself. The Company recognizes this
opportunity and has positioned itself to enter regulated pharmaceutical
markets.
The Company has
initiated and completed quality and capacity upgrades and is ready to make the
shift. Subject today is a manufacturer of antiinfectives, intermediates and
active ingredients for anti-infectives with leadership positions in India and a
significant presence in emerging global markets. These markets are growing fast
and offer steady profitability.
The Company has an
established reputation as a supplier in domestic as well as other emerging
markets. This position shall be maintained and expanded upon. The Company plans
to leverage this strength to open new markets for its products.
In the past two
years, concerted efforts have been made successfully, to gain a toe-hold in the
developed markets such as US & Europe.
Subject will pursue
to gain a significant presence in such generic markets.
Table of Plants
Inspected
|
Unit |
Authority |
|
API |
|
|
Unit I |
US FDA, WHO |
|
Unit 1 A |
US FDA |
|
Unit VI A |
US FDA, WHO,
Health Canada |
|
Unit VIII |
US FDA, WHO |
|
Unit XI |
US FDA |
|
|
|
|
Formulations |
|
|
Unit III |
US FDA, UK MHRA,
WHO, Health Canada, Brazil Anvisa, MCC (SA) |
|
Unit VI B |
US FDA, Health
Canada, Brazil Anvisa, MCC (SA) |
|
Unit XII |
US FDA, UK MHRA,
Health Canada, Brazil Anvisa |
PRODUCTS
The Company's robust
product portfolio is spread over 6 major therapeutic/product areas
(antibiotics, anti-retrovirals, CVS, CNS, gastroenterologicals, and
anti-allergies) encompassing around 65 APIs in the nonantibiotics and 55 APIs
in the antibiotic segment.
INFRASTRUCTURE
The Company has
received approvals for several of its manufacturing facilities from leading
regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa.
A large infrastructure supports the operation (as in table).
The company is in trade terms with :
v Pravesha Industries (Private) Limited
v Andhra Organics Limited
The company's fixed assets of important value include Leasehold Land, Freehold land, Leasehold buildings, Freehold buildings, plant & machinery, furniture and fittings, and vehicles.
Press Release:
Hyderabad, April
4, 2007
MEB Netherlands
approves Lisinopril
Tablets of Aurobindo
Subject (Reuters Code: ARBN.BO) is delighted to announce
that it has received the marketing authorization approval from Medicines Evaluation
Board (MEB), NETHERLANDS for Lisinopril 10, 20, 30 and 40 mg tablets.
This is the fourth formulation approval received from MEB,
NETHERLANDS for a product developed in house by Aurobindo, and sixth such
approval in Europe as a whole. With this approval, it will be easier for
Aurobindo to obtain similar marketing authorization for Lisinopril tablets in
the other countries of the European Union through Mutual Recognition Procedure.
Lisinopril is the generic version of Zestril marketed by
Astra Zeneca. Lisinopril Dihydrate is an effective, long
acting orally administered ACE inhibitor. It is used
often in the management of Hypertension.
Aurobindo has already filed 36 products in various EU countries, some of
which are nearing the marketing authorization approvals. Many more filings in
the EU countries are in pipeline in the coming year.
Lisinopril in Europe has a market of over 300 mio US dollars.
About Subject:
Subject headquartered at Hyderabad, India, manufactures generic pharmaceuticals
and active pharmaceutical ingredients. The company’s robust product portfolio
is spread over 6 major therapeutic/product areas encompassing (Antibiotics,
Anti-Retrovirals, CVS/ Statins/Diabetology, CNS, Gastro/Uro/Kidney
therapeutics, Anti fungal/ allergics/respiratory)
The Company markets its
products in over 100 countries. The company has filed over 86 ANDAs and 110
DMFs for the USA market, in addition to several filings in other countries. The
company has received approvals for several facilities from leading regulatory
agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa.
Hyderabad, March
29, 2007
Cephazone, cephalosporin sterile injectable facility in California, is
approved by US FDA and receives approval of Ceftriaxone from US FDA
Subject is pleased to announce that its Joint venture,
Cephazone Pharma LLC, at California, USA, a facility dedicated to cephalosporin
injectable drugs, has received the first ANDA approval for Ceftriaxone
The company has received approval for Ceftriaxone
injectable, a third generation cephalosporin antibiotic. 250mg, 500mg, 1Gm and
2Gm single use vials for intra muscular, intra venous use and also 1Gm and 2Gm
bottles (popularly known as piggy pack) for intravenous use are approved.
Ceftriaxone is the research innovation of Hoffmann-La Roche
and often used in respiratory infections and as a choice antibiotic in
bacterial meningitis. Besides, its use is well documented in pediatrics in
febrile conditions to prevent possible septicemias.
Cephazone is a joint venture of Aurobindo and has filed
several ANDAs with US FDA. Aurobindo has already received the facility approval
for sterile Cephalosporin APIs.
Cephalosporin injectables market is an attractive
opportunity in USA and globally. Aurobindo is vertically integrated in
the cephalosporin category and enjoys a leading position in the category.
About Subject:
Subject headquartered at Hyderabad, India, manufactures generic
pharmaceuticals and active pharmaceutical ingredients. The company has received
approvals for most of the targeted API and formulation facilities from leading
regulatory agencies like US FDA, UK MHRA, WHO, Health Canada, MCC South Africa.
The company’s robust product portfolio is spread over 6 major
therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS,
Gastroenterologicals, and Anti-Allergics. The formulation portfolio is
built on six technology platforms such as immediate release generics, SR/CR
generics, orally disintegrating/Mouth dissolving generics, Combination
products, Sterile/Lyophilized generics and Liquids/Dry syrups.
Aurobindo has filed over 105 DMFs and 79 ANDAs
for the USA market alone in addition to filings in other countries. The pace of
filings is matched by rapid product approvals from various markets. Till date
Aurobindo received 38 ANDA approvals (both final and tentative) from US alone.
Aurobindo operates in over 100 countries and markets over 180 APIs and 250
formulations
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.86 |
|
UK Pound |
1 |
Rs.84.75 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|