MIRA
INFORM REPORT
|
Report Date : |
21.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
CIPLA LIMITED |
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Registered Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400 008,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.08. 1935 |
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Com. Reg. No.: |
11-2380 |
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CIN No.: [Company
Identification No.] |
U24239MH1935PLC002380 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC00352C |
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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 of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 75000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed pharmaceutical company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is considered as good. Business is active. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered/Corporate
Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400 008, Maharashtra, India |
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Tel. No.: |
91-22-23095521/23082891/23023272 |
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Fax No.: |
91-22-23070013/23070393/85/23008101 |
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E-Mail : |
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Website : |
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Factory : |
MIDC, Patalganga – 410 220, District Raigad, Maharashtra, India D7, MIDC Industrial Area, Kurkumbh – 413 802, District Pune, Maharashtra, India LBS Marg, Vikhroli (West), Mumbai – 400 083, Maharashtra, India Virgonagar, Old Madras Road, Bangalore – 560 049, Karnataka, India Verna Industrial Estate, Verna-403722, Salcette, Panaji,
Goa |
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Sales Office: |
Located At : Kochi, Ghaziabad, Kolkata, Chennai, Hyderabad, Delhi, Assam, Nagpur, Chandigarh, Patna, Ambala Cantt., Patna, Vijayawada, Varanasi, Rajasthan, Lucknow, Ahmedabad, Indore, Mumbai, Madhya Pradesh, Pune and Bangalore. |
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Branches : |
289, Bellasis Road, Dimitkar, Mumbai – 400 008,
Maharashtra |
DIRECTORS
|
Name : |
Dr. H. R. Manchanda |
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Designation : |
Non-Executive Director |
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Qualification : |
M.B.B.S., F.R.C.S. |
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Experience : |
1. Consultant Surgeon at Breach Candy Hospital since 1960. It is also on panel of physicians for USA Visa work at Breach Candy Hospital. 2. Professor of Surgery and Head of Surgery at J.J. Hospital and Grant Medical College for the period 1960-85. Haffkine Institute – Board Member |
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Date of Appointment : |
1983 |
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Name : |
Mr. S. A. A. Pinto |
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Designation : |
Non-Executive Director |
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Qualification : |
M.A.(Economics), LL.B |
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Experience : |
1. Kotak Mahindra Finance Limited – Director and Member of Audit Committee and Chairman of Investor Relations Committee 2. Kotak Mahindra Private-Equity Trustee Limited – Chairman |
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Date of Appointment : |
1983 |
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Name : |
Dr. Y. K. Hamied |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. Amar Lulla |
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Designation : |
Joint Managing Director |
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Name : |
Mr. M. K. Hamied |
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Designation : |
Joint Managing Director |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. R. Raghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ramesh Shroff |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. K. Gurjar |
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Designation : |
Non-Executive Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Promoters'
holdings
|
|
|
|
Indian Promoters |
23,950,112 |
39.94% |
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Non
promoter's holdings
|
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Mutual Funds and UTI |
3,564,975 |
5.94% |
|
Banks, Financial Institutions and Insurance Companies |
6,127,356 |
10.22% |
|
FIIs |
5,184,232 |
8.64% |
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|
|
|
|
Private Corporate Bodies |
1,369,319 |
2.28% |
|
Others |
133,782 |
0.22% |
|
NRIs / OCBs |
2,121,742 |
3.54% |
|
General Public |
17,520,831 |
29.21% |
|
Grand Total |
59,972,349 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
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|
|
Products : |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Bulk Drugs (including Malts) |
Tonne |
|
1598.0 |
1054.3 |
|
Tablets and Capsules |
Million |
|
12296.0 |
11167.8 |
|
Liquids |
Kilolitre |
|
1404.0 |
6711.0 |
|
Creams |
Tonne |
|
616.0 |
541.4 |
|
Aerosols/Inhalation Devices |
Thousand |
|
53580.0 |
43018.4 |
|
Injections/Sterile Solutions |
Kilolitre |
|
1071.0 |
1296.3 |
|
Others |
Million |
|
-- |
2.3 |
GENERAL
INFORMATION
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No. of Employees : |
2200 |
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Bankers : |
v Bank of Baroda, Mumbai, Maharashtra v Canara Bank, Mumbai, Maharashtra v Corporation Bank, Mumbai, Maharashtra v Indian Overseas Bank, Mumbai, Maharashtra v Standard Chartered Grindlays Bank Limited, Mumbai, Maharashtra v The Hong Kong & Shanghai Banking Corporation Limited, Mumbai, Maharashtra v Corporation Limited, Mumbai, Maharashtra v Union Bank of India, Mumbai, Maharashtra |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
R. S. Bharucha & Company Chartered Accountants R. G. N. Price & Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
875000000 |
Equity Share |
Rs. 2/- each |
Rs. 1750.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
300873628 |
Equity shares |
Rs. 2/- each |
Rs. 601.750 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
299850000 |
Equity Shares |
Rs. 2/- each |
Rs. 599.700 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
599.700 |
599.740 |
599.720 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
19233.000 |
14936.640 |
12040.780 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
19832.700 |
15536.380 |
12640.500 |
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LOAN FUNDS |
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|
|
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1] Secured Loans |
512.700 |
403.730 |
305.990 |
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2] Unsecured Loans |
4176.400 |
1546.690 |
1799.850 |
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TOTAL BORROWING |
4689.100 |
1950.420 |
2105.840 |
|
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DEFERRED TAX LIABILITIES |
979.500 |
889.460 |
659.460 |
|
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Equity Shares to
be issued |
0.000 |
0.000 |
0.020 |
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TOTAL |
25501.300 |
18376.260 |
15405.820 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
10566.100 |
7389.100 |
5475.610 |
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Capital work-in-progress |
870.100 |
1059.640 |
560.110 |
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|
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INVESTMENT |
224.300 |
183.020 |
1803.690 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
|
|
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Inventories |
9570.000 |
7456.790 |
5689.420 |
|
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Sundry Debtors |
8759.600 |
5873.230 |
4982.270 |
|
|
Cash & Bank Balances |
444.800 |
153.800 |
62.440 |
|
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Other Current Assets |
133.500 |
135.170 |
75.580 |
|
|
Loans & Advances |
4014.900 |
3909.90 |
3552.590 |
|
Total
Current Assets |
22922.800
|
17528.890 |
14362.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Current Liabilities |
6358.900 |
4944.540 |
3753.530 |
|
|
Provisions |
2723.100 |
2839.850 |
3042.360 |
|
Total
Current Liabilities |
9082.000
|
7784.390 |
6795.890 |
|
|
Net Current Assets |
13840.800 |
9744.500 |
7566.410 |
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
|
|
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TOTAL |
25501.300 |
18376.260 |
15405.820 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
31135.600 |
23364.980 |
19585.930 |
|
|
Other Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income |
31135.600 |
23364.980 |
19585.930 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
7098.400 |
5146.140 |
4040.860 |
|
|
Provision for Taxation |
1022.000 |
1050.000 |
973.950 |
|
|
Profit/(Loss) After Tax |
6076.400 |
4096.140 |
3066.910 |
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Earnings in Foreign Currency : |
|
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|
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Export Earnings |
N.A. |
N.A. |
8706.130 |
|
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Commission Earnings |
N.A. |
N.A. |
0.000 |
|
|
Other Earnings |
N.A. |
N.A. |
0.000 |
|
Total Earnings |
N.A. |
N.A. |
8706.130 |
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Imports : |
|
|
|
|
|
|
Raw Materials |
N.A. |
4477.330 |
2842.200 |
|
|
Stores & Spares |
N.A. |
0.000 |
0.000 |
|
|
Capital Goods |
N.A. |
0.000 |
0.000 |
|
|
Others |
N.A. |
0.000 |
0.000 |
|
Total Imports |
N.A. |
4477.330 |
2842.200 |
|
|
|
|
|
|
|
|
Total Expenditure |
24037.200 |
18218.840 |
15545.070 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 1st
Qtr. |
30.09.2006 2nd
Qtr. |
31.12.2006 3rd
Qtr. |
|
Sales Turnover |
8635.800 |
8961.100 |
8805.400 |
|
Other Income |
219.500 |
189.900 |
261.300 |
|
Total Income |
8855.300 |
9151.000 |
9066.700 |
|
Total Expenditure |
6347.100 |
6685.100 |
6612.700 |
|
Operating Profit |
2508.200 |
2465.900 |
2454.000 |
|
Interest |
27.900 |
15.600 |
13.200 |
|
Gross Profit |
2480.300 |
2450.300 |
2440.800 |
|
Depreciation |
260.000 |
245.000 |
275.000 |
|
Tax |
491.000 |
377.500 |
272.000 |
|
Reported PAT |
1704.300 |
1802.800 |
1843.800 |
Notes :
200606 Quarter 1
Status of Investor Complaints for the quarter ended
30.06.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 14 Complaints disposed off during the quarter 11 Complaints
unresolved at the end of the quarter 03 1. The Company is exclusively in the
Pharmaceutical business segment. 2. The paid-up equity share capital stands
increased to Rs 1554.600 million (77,72,91,357 equity shares of Rs 2 each) upon
allotment of 1,10,46,310 shares underlying Global Depository Receipts (GDRs)
and 46,63,74,814 bonus shares during the quarter. 3. The Directors at their
meeting held on 21.07.2006 recommended payment of dividend of Rs 2 per equity
share (face value Rs 2) on 77,72,91,357 equity shares (including shares
underlying GDRs and bonus shares) for the year 2005-2006 amounting to Rs
1554.600 million. 4. The quarterly Earning Per Share (EPS) figures are not
annualized and previous years EPS figures are adjusted for bonus issue. 5. The
Company had challenged the inclusion of the drugs - Salbutamol, Theophylline,
Ciprofloxacin and Norfloxacin - within the ambit of price control. The petition
filed by the Company had been decided in favour of the Company by the Bombay
High Court, which held that the said drugs were outside the ambit of price
control. However, on an appeal filed by the government, the Supreme Court has
remanded the matter to the Bombay High Court for further and more detailed
examination in the light of the principles laid down by the Supreme Court. The
Supreme Court had also permitted the government to recover 50% of the amount
that they had claimed was overcharged. The government had sent notices to the
Company demanding an aggregate of Rs 1803.70 million in respect of the said
drugs, which according to them was 50% of the amount allegedly overcharged by
the Company till July 2003. Subsequently, in separate proceedings the Allahabad
High Court had ruled that the prices fixed by the government in respect of the
said drugs were illegal and void. On an appeal filed by the government against
this ruling, the Supreme Court has stayed the judgment of the Allahabad High
Court. Further, the Supreme Court has directed that no coercive action shall be
taken against the Company till the appeal is finally decided. The Company has
received legal advice that the demand notices of the government are not
sustainable. 6. The figures of the previous year have been regrouped/recast to
render them comparable with the figures of the current year. 7. The above
results after being reviewed by the Audit Committee were approved and taken on
record at the meeting of the Board of Directors held on 21.07.2006.
200609 Quarter 2
Expenditure Includes (Increase)/Decrease in Stock in Trade
Rs (24.109) million Consumption of Raw Materials Rs 60.118 million Other
Expenditure Rs 27.689 million Employee Cost Rs 1.898 million Sales,
Administration charges Rs 2.601 million Tax Includes Provision for Fringe
Benefit Tax EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended September 30, 2005 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 13 Complaints disposed off
during the quarter 13 Complaints unresolved at the end of the quarter Nil 1.
Previous year figures have re-grouped / re-arranged whenever necessary. 2. The
above Unaudited results were reviewed by record by the Audit Committee and
thereafter approved at the meeting of the Board of Directors held on October
28, 2005. 3. The Statutory Auditors of the Company have carried out a limited
review of the financial results of the Company for the Quarter ended on
September 30, 2005 as required under clause 41 of listing Agreement. 4. The
Company operates in a Single Segment-Open Die Forging. As such there is Notes:
1. The Company is exclusively in the pharmaceutical business segment. 2. The
paid-up equity share capital stands increased to Rs.1554.6 millions (77,72,91,357
equity shares of Rs.2 each) upon allotment of 1,10,46,310 shares underlying
Global Depository Receipts (GDRs) and 46,63,74,814 bonus shares during the
quarter ended June 2006. 3. The quarterly Earning Per Share (EPS) figures are
not annualized and previous years' EPS figures are adjusted for the bonus
issue. 4. Three investor grievances were pending at the beginning of the
quarter. During the quarter ended 30th September, 2006, eleven investor
grievances were received. As of 30th September, 2006 and all grievances have
been suitably replied to. 5. The Company has setup a new Export Oriented Unit
(EOU) at Patalganga and commercial production has commenced during August 2006.
6. The Company has in October 2006, setup a wholly owned subsidiary 'Cipla FZE'
at Jebel Ali Free Zone, Dubai, United Arab Emirates. The subsidiary has been
formed to aid logistics and to explore new export opportunities. 7. The Company
had challenged the inclusion of the drugs - Salbutamol, Theophylline,
Ciprofloxacin and Norfloxacin - within the ambit of price control. The petition
filed by the Company had been decided in favour of the Company by the Bombay
High Court, which held that the said drugs were outside the ambit of price
control. However, on an appeal filed by the government, the Supreme Court has
remanded the matter to the Bombay High Court for further and more detailed
examination in the light of the principles laid down by the Supreme Court. The
Supreme Court had also permitted the government to recover 50% of the amount
that they had claimed was overcharged. The government had sent notices to the
Company demanding an aggregate of Rs.180.37 crores in respect of the said
drugs, which according to them was 50% of the amount allegedly overcharged by
the Company till July 2003. Subsequently, in separate proceedings the Allahabad
High Court had ruled that the prices fixed by the government in respect of the
said drugs were illegal and void. On an appeal filed by the government against
this ruling, the Supreme Court has stayed the judgment of the Allahabad High
Court. Further, the Supreme Court has directed that no coercive action shall be
taken against the Company till the appeal is finally decided. The Company has
received legal advice that the demand notices of the government are not
sustainable. 8. The figures of the previous year have been regrouped/recast to
render them comparable with the figures of the current year. 9. The above
results after being reviewed by the Audit Committee were approved and taken on
record at the meeting of the Board of Directors held on 20th October, 2006.
200612 Quarter 3
The Company is exclusively in the pharmaceutical business
segment. 2. The paid-up equity share capital stands increased to Rs.1554.6
millions (77,72,91,357 equity shares of Rs.2 each) upon allotment of
1,10,46,310 shares underlying Global Depository Receipts (GDRs) and
46,63,74,814 bonus shares during the quarter ended June 2006. 3. The quarterly
Earning Per Share (EPS) figures are not annualized and previous years' EPS figures
are adjusted for the bonus issue. 4. No investor grievances were pending at the
beginning of the quarter. During the quarter ended 31st December, 2006, twenty
one investor grievances were received. As of 31st December, 2006 all grievances
have been suitably replied to. 5. The Company had challenged the inclusion of
the drugs - Salbutamol, Theophylline, Ciprofloxacin and Norfloxacin - within
the ambit of price control. The petition filed by the Company had been decided
in favour of the Company by the Bombay High Court, which held that the said
drugs were outside the ambit of price control. However, on an appeal filed by
the government, the Supreme Court has remanded the matter to the Bombay High
Court for further and more detailed examination in the light of the principles
laid down by the Supreme Court. The Supreme Court had also permitted the
government to recover 50% of the amount that they had claimed was overcharged.
The government had sent notices to the Company demanding an aggregate of
Rs.180.37 crores in respect of the said drugs, which according to them was 50%
of the amount allegedly overcharged by the Company till July 2003.
Subsequently, in separate proceedings the Allahabad High Court had ruled that
the prices fixed by the government in respect of the said drugs were illegal
and void. On an appeal filed by the government against this ruling, the Supreme
Court has stayed the judgment of the Allahabad High Court. Further, the Supreme
Court has directed that no coercive action shall be taken against the Company
till the appeal is finally decided. The Company has received legal advice that
the demand notices of the government are not sustainable. 6. The figures of the
previous year have been regrouped/recast to render them comparable with the figures
of the current year. 7. The above results after being reviewed by the Audit
Committee were approved and taken on record at the meeting of the Board of
Directors held on 23rd January, 2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.19 |
0.15 |
0.13 |
|
Long
Term Debt Equity Ratio |
0.16 |
0.12 |
0.11 |
|
Current
Ratio |
2.06 |
1.89 |
1.87 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.59 |
2.73 |
3.19 |
|
Inventory
|
3.55 |
3.54 |
3.41 |
|
Debtors |
4.13 |
4.29 |
4.63 |
|
Interest
Cover Ratio |
45.17 |
39.73 |
30.28 |
|
Operating
Profit Margin (%) |
26.69 |
22.27 |
22.70 |
|
Profit
Before Interest and Tax Margin (%) |
24.04 |
19.90 |
20.66 |
|
Cash
Profit Margin (%) |
22.78 |
17.81 |
17.57 |
|
Adjusted
Net Profit Margin (%) |
20.12 |
15.44 |
15.53 |
|
Return
on Capital Employed (%) |
34.75 |
28.93 |
31.15 |
|
Return
on Net Worth (%) |
34.55 |
25.70 |
26.51 |
STOCK PRICES
|
Face Value |
Rs.10/-each |
|
High |
Rs.236.50/- |
|
Low |
Rs.232.55/- |
LOCAL AGENCY
FURTHER INFORMATION
One of the largest drug manufactures, Cipla manufactures and markets
bulk drugs and formulations. It is now ranked second in India by ORG in terms
of retail pharmaceutical sales. It has manfacturing facilities at Kurkumbh,
Bangalore, Patalganda and Vikroli in Mumbai. All the bulk drug facilities have
been approved by the US FDA and the formulation facilities have been approved
by the Medicine Control Agency, UK; the Medicine Control Council, South Africa;
the Therapeutic Goods Administration, Australia and other international
agencies.
Cipla has a very wide product range which includes antibiotics,
anti-bacterials, anti-asthmatics, anti-inflammatory anthelminites, anti-cancer
and cardiovasculars. In domestic formulation market, antibiotics are the
mainstay, which contributes around 50% of the company's revenue. Some of the
leading brands are Ciplox (Ciprofloxacin), Novamox (Amoxycilin) and Norflox
(Norfloxacin). Cipla also has in its product portfolio Zidovir (zidovudine,
anti-AIDS drug). Cipla was one of the first among the Indian pharmaceutical
companies to introduce ampicillin and norfloxacin.
The company is constantly maintained its lead in introducing new drug
formulation. The company has very strong research and developement facilities
which has been bearing fruits. Its ability to quickly duplicate a new drug
introduced elsewhere and introduce it in the Indian market has played a
significant role in building a basket of formulation brands. Being one of the
earliest entrants into the market with a new drug, generally, enables a company
achieve higher realisations. In addition to being among the early entrants, one
aspect which has given an edge to Cipla's strategy is the ability to market
products at a significantly lower price.
Cipla has developed the world's first budesonide-based, chlorofluorocarbons
(CFC) - free anti-asthma inhaler, 'Budecort CFC-free'. Budesonide, which falls
in the preventive class of anti-asthmatic drugs, is essentially a steroid and
preferred due to its safety profile. The company has invested over Rs 20
Millions in developing CFC-free asthma products over a period of 12 month. The
product is largely being targeted at the international markets, which are
CFC-sensitive and is awaiting for registration in the European markets. The
fruits of the new product will be obtained in the coming years, since the
company expects to increase its exports through this product.
In Dec 2000, the company cut the price of its anti-AIDS drug Nevimune (scientific
name : nevirapine) by 34% to Rs 650 for a strip of ten tablets. The price was
earlier Rs 985. Cipla has slashed the price of the drug thrice reducing it from
the launch price of Rs 1,350 for a strip of ten to the current price. The
company attributes this to improvements in technology that has enabled it to
cut costs and pass on the savings to consumers.
Cipla is the only manufacturer of nevirapine from the basic stage in India.
This is the fourth price cut of anti-AIDS drugs effected by Cipla in the last
three years. The last reduction was in Sep 2000 when prices of its Lamivir,
Duovir, Stavir and Nevimune brands were cut between 13 - 45% across six dosage
forms.
Among the large pharma companies, Cipla was considered as the fastest growing
company with a pre-eminent position in anti-asthma and its foray into
high-growth areas like anti-cancer and anti-AIDS. However, current performance
is not in line with this perception.
The company is a leader in the anti-bacterial and anti-asthmatic segments in FY
2000. Cipla became the first player outside the US and Europe to launch non-CFC
(chlorofluorocarbons) metered dose inhalers. The company has applied for
process registration in Europe, which it is likely to get in 2002.
The market for such metered dose inhalers in the US and Europe is worth around
$ 2.5 billion and is growing at 20% p.a. Thus, even a mere 2% market share can
rake in more than Rs 2300.000 Millions into Cipla's kitty. Cipla has one of the
best R&D facilities for reverse engineering in the country. As in the past,
its R&D division continues with its focus on finding new processes for
existing products.
After growing smartly in the domestic market, the company is now focussing on export
markets. Cipla has tied up with US major Andrx to supply Omeprazole, an
anti-ulcer bulk drug slated to go off patent in October. Andrx is expected to
gain the 180 days exclusivity for marketing the generic Omeprazole in the US
market, post-patent expiry in October 2001.
Cipla has also tied up with the US-based Zenith Goldline and United Research
Labs for marketing Flutamide (an oncology drug) and Felodipine (a
cardiovascular drug) in the US and European markets. Flutamide will go off
patent in May, while the patent for Felodipine will expire in late 2001. Cipla
is now focussing on high-margin areas like anti-AIDS, cardiovascular and
anti-cancer, in order to reduce its exposure to the highly competitive
anti-infectives segment.
Recently, in July 2001, the company has effected another round of price cuts of
its anti-AIDS drug segment. This is the fourth price cut in AIDS segment during
the last nine months (last one was in May 2001). The company has cut prices of
its triple drug regimen by as much as 39%. The three-drug combination of
lamivudine, stavudine and nevirapine, which has the potential to reduce the HIV
virus in the body to very low levels, will now cost the patient Rs 2,130 per
month down from Rs 3,495 per month.
Cipla has a very good product pipeline for years to come. The only threat for
the company is that the government is going to introduce the product patents
post 2005. But even if it is introduced, the company expects that it is only
going to be affected after 2012 or 2015. Because, till then, the company has
very good product pipeline. But as per company reports, if government is
pragmatic in framing new patent laws, then Cipla will obviously progress much
faster.
The company is one of the three Indian pharma companies who will jointly market
the anti-anthrax drug, Ciprofloxacin, in India. The company is also to benefit
in case if USA allows the Indian companies to sell their anti-anthrax dose over
there . Anthrax has gripped the world, mainly the USA recently and is suspected
to be a form of biological terrorist attack. During 2001-02 a number of Active
Pharmaceutical Ingredients which was made in house was introduced, This will
definitely scale up the overall sales growth in the near future.
HISTORY:
Subject was incorporated on 17.08.1935 at Mumbai in Maharashtra under
the name and style of Chemical Industrial and Pharmaceutical Laboratories
Limited having Company Registration Number 2380. In 1984, the name of the company was changed to the present.
Mr. Khwaja Abdul Hamied, set up in 1935 the Chemical, Industrial and
Pharmaceutical Laboratories which came to be popularly known as Cipla. He gave the company all his patent and
proprietory formulas for several drugs and medicines.
On 17.08.1935, the subject was registered as a public limited liability
with an authorised capital of Rs. 0.600 millions. Subject was officially opened on 22.09.1937 when the first
products were ready for the market.
04.07.1939 was a red letter day for the company when the Father of the
Nation, Mahatma Gandhi, honoured the factory with a visit. On 31.10.1939, the books showed an all-time
high loss of Rs. 67935. That was the
last time for the company ever recorded a deficit.
In 1942, Dr. Hamied's blueprint for a technical industrial research was
accepted by the government and led to a birth of a Council of Scientific and
Industrial Research (CSIR), which is today the apex research body in the
country.
In 1944, the company bought the premises at Bombay Central and decided
to put up a first class modern pharmaceutical works and laboratory. It was also decided to acquire land and
buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals.
In 1946, the company's product for hypertension, Serpinoid was exported
to the American Roland Corporation to the tune of Rs. 0.800 million. Five years later the company entered into an
agreement with a Swiss firm for manufacturing foromycene.
In 1960, Dr. Yusuf Hamied, the founder's son joined the company as an
officer incharge of research and development.
In 1961, the Vikhroli factory started manufacturing diosgenin. The company set up an agricultural research
division in Bangalore in early 1973.
The Bangalore factory was opened on 22.10.1977.
The company was awarded the CHEMEXCIL Second Award for 1978-79 in
recognition of the company's role in the international market as also the high
ratio of exports to local sales.
The CHEMEXCIL First Award followed this in 1981-82. The company bagged the Sir P. C. Ray Award
for the development of indigenous technology in the face of stiff
competition. In the same year 1981-82,
the company developed two anticancer drugs, vinlbastine and vincristine from the
common garden plant vinca rosea.
Commercial production commenced in the company's fourth factory at
Patalganga in November, 1983. In 1985,
the US FDA approved the company's bulk drug manufacturing facilities for the
first time. In 1988, the company won
the National Award for successful commercialisation of publicly funded R &
D. The company pioneered the
manufacture of the antiretroviral drug, zidovudine, in technological
collaboration with Indian Institute of Chemical Technology in 1993.
In 1994, the company's fifth factory began commercial production at
Kurkumbh, Maharashtra. The company
launched its transparent Rotahaler, the world's first such dry powder device,
in 1995. In 1997, the palliative cancer
care centre set up by the company's foundation at Warje, near Pune.
In 1998, the company launched lamivudine, drug of retroviral combination
therapy.
In December 2000, the company cut the price of its anti-AIDS drug
Nevimune (scientific name : nevirapine) by 34% to Rs 650 for a strip of ten
tablets. The price was earlier Rs 985. Cipla has slashed the price of the drug
thrice reducing it from the launch price of Rs 1,350 for a strip of ten to the
current price. The company attributes this to improvements in technology that
has enabled it to cut costs and pass on the savings to consumers.
Subject is the only manufacturer of nevirapine from
the basic stage in India. This is the fourth price cut of anti-AIDS drugs
effected by company in the last three years. The last reduction was in September
2000 when prices of its Lamivir, Duovir, Stavir and Nevimune brands were cut
between 13 - 45% across six dosage forms.
Among the large pharma companies, the company was considered as the fastest
growing company with a pre-eminent position in anti-asthma and its foray into
high-growth areas like anti-cancer and anti-AIDS. However, current performance
is not in line with this perception.
The company is a leader in the anti-bacterial and anti-asthmatic segments in FY
2000. The company became the first player outside the US and Europe to launch
non-CFC (chlorofluorocarbons) metered dose inhalers. The company has applied
for process registration in Europe, which it is likely to get in 2002.
The market for such metered dose inhalers in the US and Europe is worth around
$ 2.5 billion and is growing at 20% p.a. Thus, even a mere 2% market share can
rake in more than Rs. 2300 millions into Cipla's kitty. The company has one of
the best R&D facilities for reverse engineering in the country. As in the
past, its R&D division continues with its focus on finding new processes
for existing products.
After growing smartly in the domestic market, the company is now
focussing on export markets. The company has tied up with US major Andrx to
supply Omeprazole, an anti-ulcer bulk drug slated to go off patent in October.
Andrx is expected to gain the 180 days exclusivity for marketing the generic
Omeprazole in the US market, post-patent expiry in October 2001.
The company has also tied up with the US-based Zenith Goldline and United
Research Labs for marketing Flutamide (an oncology drug) and Felodipine (a
cardiovascular drug) in the US and European markets. Flutamide will go off
patent in May, while the patent for Felodipine will expire in late 2001. Cipla
is now focussing on high-margin areas like anti-AIDS, cardiovascular and
anti-cancer, in order to reduce its exposure to the highly competitive
anti-infectives segment.
Recently, in July 2001, the company has effected another round of price cuts of
its anti-AIDS drug segment. This is the forth price cut in AIDS segment during
the last nine months (last one was in May 2001). The company has cut prices its
triple drug regimen by as much as 39%. The three-drug combination of
lamivudine, stavudine and nevirapine, which was the potential to reduce the HIV
virus in the body to very low levels, will now cost the patient Rs. 0.002
millions per month down from Rs. 0.003 per month.
It has a very good product pipeline for years to come. The only threat for the
company is that the government is going to introduce the product patents post
2005. But even if it is introduced, the company expects that it is only going
to be affected after 2012 or 2015. Because, till then, the company has very
good product pipeline. But as per company reports, if government is pragmatic
in framing new patent laws, then it will obviously progress much faster.
The company is one of the three Indian pharma companies who will jointly market
the anti-anthrax drug, Ciprofloxacin, in India. The company is also to benefit
in case USA allows the Indian companies to sell their anti-anthrax dose over
there. Anthrax has gripped the world, mainly the USA recently and is suspected
to be a form of biological terrorist attack. During 2001-02 a number of Active
Pharmaceutical Ingredients which, was made in house was introduced. This will
definitely scale up the overall sales growth in the near future.
Khwaja Abdul Hamied, the founder of company, was born on 31.10.1898. The
fire of nationalism was kindled in him when he was 15 as he witnessed a wanton
act of colonial highhandedness. The fire was to blaze within him right through
his life.
In college, he found Chemistry fascinating. He set sail for Europe in
1924 and got admission in Berlin University as a research student of "The
Technology of Barium Compounds". He earned his doctorate three years
later.
In October 1927, during the long voyage from Europe to India, he drew up
great plans for the future. He wrote: "No modern industry could have been
possible without the help of such centres of research work where men are
engaged in compelling nature to yield her secrets to the ruthless search of an
investigating chemist." His plan found many supporters but no financiers.
However, Dr Hamied was determined to being "a small wheel, no matter how
small, than be a cog in a big wheel."
Cipla is born
In 1935, he set up The Chemical, Industrial & Pharmaceutical
Laboratories, which came to be popularly known as Cipla. He gave the company
all his patent and proprietary formulas for several drugs and medicines,
without charging any royalty. On 17.08.1935, Cipla was registered as a public
limited company with an authorised capital of Rs 0.600 million.
The search for suitable premises ended at 289, Bellasis Road (the present
corporate office) where a small bungalow with a few rooms was taken on lease
for 20 years for Rs 350 a month.
The company was officially opened on 22.09.1937 when the first products
were ready for the market. The Sunday Standard wrote: "The birth of Cipla
which was launched into the world by Dr K A Hamied will be a red letter day in
the annals of Bombay Industries. The first city in India can now boast of a
concern, which will supersede all existing firms in the magnitude of its
operations. India has lagged behind in the march of science but she is now
awakening from her lethargy. The new company has mapped out an ambitious
programme and with intelligent direction and skillful production bids fair to
establish a great reputation in the East. "
04.07.1939 was a red-letter day for company, when the Father of the
Nation, Mahatma Gandhi, honoured the factory with a visit. He was
"delighted to visit this Indian enterprise", he noted later. From the
time of the company came to the aid of the nation gasping for essential
medicines during the Second World War, the company has been among the leaders
in the pharmaceutical industry in India.
On 31.10.1939, the books showed an alltime high loss of Rs 67,935. That
was the last time the company ever recorded a deficit.
In 1942, Dr Hamied's blueprint for a technical industrial research
institute was accepted by the government and led to the birth of the Council of
Scientific and Industrial Research (CSIR), which is today the apex research
body in the country.
In 1944, the company bought the premises at Bombay Central and decided
to put up a "first class modern pharmaceutical works and laboratory."
It was also decided to acquire land and buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals.
In 1946, Cipla's product for hypertension, Serpinoid, was
exported to the American Roland Corporation, to the tune of Rs 0.800 Millions.
Five years later, the company entered into an agreement with a Swiss firm for
manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a doctorate in
chemistry from Cambridge and joined Cipla as an officer in charge of research
and development in 1960.
In 1961, the Vikhroli factory started manufacturing diosgenin. This
heralded the manufacture of several steroids and hormones derived from
diosgenin.
Milestones
1935
Dr. K. A. Hamied sets up "The Chemical, Industrial and
Pharmaceutical Laboratories Limted." in a rented bungalow, at Bombay
Central.
1941
As the Second World War cuts off drug supplies, the company starts
producing fine chemicals, dedicating all its facilities for the war effort.
1952
Sets up first research division for attaining self-sufficiency in
technological development.
1960
Starts operations at second plant at Vikhroli, Mumbai, producing fine
chemicals with special emphasis on natural products.
1968
The company manufactures ampicillin for the first time in the country.
1972
Starts Agricultural Research Division at Bangalore, for scientific
cultivation of medicinal plants.
1976
The company launches medicinal aerosols for asthma.
1980
Wins Chemexcil Award for Excellence for exports.
1982
Fourth factory begins operations at Patalganga, Maharashtra.
1984
Develops anti-cancer drugs, vinblastine and vincristine in collaboration
with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for
developing inhouse technology for indigenous manufacture of a number of basic
drugs.
1985
US FDA approves Cipla's bulk drug manufacturing facilities.
1988
The company wins National Award for Successful Commercialisation of
Publicly Funded R&D.
1991
Lauches etoposide, a breakthrough in cancer chemotherapy, in association
with Indian Institute of Chemical Technology.
The company pioneers the manufacture of the antiretroviral drug,
zidovudine, in technological collaboration with Indian Institute of Chemical
Technology, Hyderabad.
1994
The company’s fifth factory begins commercial production at Kurkumbh,
Maharashtra.
1997
Launches transparent Rotahaler, the world's first such dry powder
inhaler device now patented by Cipla in India and abroad. The palliative cancer
care centre set up by the Cipla Foundation, begins offering free services at
Warje, near Pune.
1998
Launches lamivudine, becoming one of the few companies in the world to
offer all three component drugs of retroviral combination therapy (zidovudine
and stavudine already launched).
1999
Launches Nevirapine, antiretroviral drug, used to prevent the
transmission of AIDS from mother to child.
2000
The company became the first company, outside the USA and Europe to
launch CFC-free inhalers – ten years before the deadline to phase out use of
CFC in medicinal products.
2002
Four state-of-the-art manufacturing facilities set up in Goa in a record
time of less than twelve months.
2003
Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD).
Commissioned second phase of manufacturing operations at Goa.
2005
Set-up state-of-the-art facility for manufacture
of formulations at Baddi, Himachal Pradesh.
BUSINESS
Subject is engaged in manufacturing of Chemicals, Tablets and Capsules,
Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and
Formulations.
It is also manufacturing and marketing of Bulk Drugs and Formulations.
It is now ranked second in India by ORG in terms of retail
pharmaceutical sales.
Generic Names of Principal Products/Services of Company are :-
|
Product
Description |
Item Code No. |
|
Norfloxacin |
300490.14 |
|
Ciprofloxacin |
300420.11 |
|
Amoxycillin |
300410.04 |
The company’s
products are approved by:-
Food and Drug Administration (FDA), USA
Medicines Control Agency (MCA), UK
Therapeutic Goods Administration (TGA), Australia
Medicines Control Council (MCC), South Africa
National Institute of Pharmacy (NIP), Hungary
Pharmaceutical Inspection Convention (PIC), Germany
World Health Organisation (WHO)
Subject is one of the largest drug manufactures. It
manufactures and markets bulk drugs and formulations. It is now ranked second
in India by ORG in terms of retail pharmaceutical sales. It has manufacturing
facilities at Kurkumbh, Bangalore, Patalganda and Vikroli in Mumbai. All the
bulk drug facilities have been approved by the USA FDA and the formulation
facilities have been approved by the Medicine Control Agency, UK; the Medicine
Control Council, South Africa; the Therapeutic Goods Administration, Australia
and other international agencies.
The company has a very wide product range which includes antibiotics,
anti-bacterials, anti-asthmatics, anti-inflammatory anthelminites, anti-cancer
and cardiovasculars. In domestic formulation market, antibiotics are the
mainstay, which contributes around 50% of the company's revenue. Some of the
leading brands are Ciplox (Ciprofloxacin), Novamox (Amoxycilin) and Norflox
(Norfloxacin). The company is also has in its product portfolio Zidovir
(zidovudine, anti-AIDS drug). The company was one of the first among the Indian
pharmaceutical companies to introduce ampicillin and norfloxacin.
The company is constantly maintained its lead in introducing new drug
formulation. The company has very strong research and development facilities
which, has been bearing fruits. Its ability to quickly duplicate a new drug
introduced elsewhere and introduce it in the Indian market has played a
significant role in building a basket of formulation brands. Being one of the
earliest entrants into the market with a new drug, generally, enables a company
achieve higher realizations. In addition to being among the early entrants, one
aspect which has given an edge to company’s strategy is the ability to market
products at a significantly lower price.
The company has developed the world's first budesonide-based,
chlorofluorocarbons (CFC) - free anti-asthma inhaler, 'Budecort CFC-free'.
Budesonide, which falls in the preventive class of anti-asthmatic drugs, is
essentially a steroid and preferred due to its safety profile. The company has
invested over Rs. 200 millions in developing CFC-free asthma products over a
period of 12 month. The product is largely being targeted at the international
markets, which are CFC-sensitive and is awaiting for registration in the European
markets. The fruits of the new product will be obtained in the coming years,
since the company expects to increase its exports through this product.
The Company has introduced formulations and APIs during the year. Some
of these advanced drugs have been manufactured for the first time India by and
include:
Adesera (Adefovir Tablets) for Chronic Hepatitis B virus Infection
Adults
Dorzox (Dorzolamide Eye Drops) for Glaucoma
Dytor (Torsemide Tablets and Injection) - A new loop diuretic
Ginette 35 (Cyproterone Acetate and Tablets) For Acne and Hirsutism
Rizact (Rizatriptan Tablets) for Acute Migraine
Valcivir (Valaciclovir Tablets) new for Herpes
Number of dosage forms and APIs manufactured the Company's various
facilities continue to enjoy the of regulatory including the US FDA, MHRA UK,
PIC MCC South TGA Australia, WHO Geneva and the Department of Canada.
The Company commissioned the second phase of manufacturing operations
Goa this year. Some of these new facilities have already been accredited by
regulatory agencies.
The Company has also acquired land at Baddi in Himacha Pradesh, where
work has started on a new formulations plant.
The Cipla Chest Research Foundation Pune initiated number of important
and academic research studies inmedical in its very first year. The foundation
also conducted training programmes for the medical profession.
The company has maintained high safety standards in its plants. The
preservation of environment has remained a priority. The British Safety Council
Awarded the “Five Star Ratin” to the Kurkumbh plant and also presented the
coveted “Sword of Honour” to the Patalganga plant.
It exports its products to America (41%), Asia (5%), Australia (6%),
Africa (12%), Middle East (12%) and Europe (24%).
It is one of the leading exporters of bulk drugs and formulations and
its products are registered in over 140 countries.
The leap in exports was a result of the company’s constant efforts to
tap new markets and introduce new products.
Management Review: 2005-2006:
Industry Structure and Developments:
The domestic pharmaceutical industry in India grew at more than double the
rate, recording a 11 per cent growth in value as per ORG-IMS, compared to 4.2%
during 2004-2005. As expected, it was a year of consolidation, mergers and
acquisitions. Several international pharmaceutical companies established and
strengthened their presence in India.
Performance Review:
For the first time, the Company's turnover crossed the
Rs.30000.000 Millions mark. At Rs.30196.800 Millions, sales recorded a healthy
30 per cent growth over the previous year. Once again, this was way above the
overall growth rate of the industry. Exports continued to do well and at
Rs.15136.400 Millions contributed 50 per cent to the overall sales of the
Company. Cipla now exports to nearly 170 countries in Europe, Australia,
Africa, Asia, the Middle East, and North, Central and South America. Technical
know-how/fees received during the year amounted to Rs.415.600 Millions.
The Company continued with its successful strategy of working through
partnerships and strategic alliances in order to sustain its expansion in
international markets.
The overall net profits of the Company grew by 48 per cent and stood at
Rs.6076.400 Millions. This was mainly on account of improved product mix,
optimum utilisation of tax benefits and higher non-operating income.
The Company's steady progress won it the Express Pharma Pulse Award for
'sustained growth' for the year 2005-2006. Cipla is one of the handful of
companies in India that has consistently increased its turnover and
profitability over the past 15 years in a row.
Products:
Cipla yet again took a lead in introducing many drug formulations and Active
Pharmaceutical Ingredients (APIs) in the country. Some of the formulations have
the unique distinction of being the first products of their kind in the world.
These introductions included:
Imidara (imiquimod cream) - Topical immune response modifier for genital
warts.
Lopimune (lopinavir and ritonavir sofgelcaps) - Combination protease inhibitor
for HIV/AIDS
Bifilin (prebiotic and postbiotic capsules and sachet) - Probiotic
supplement
Dorzox T (dorzolamide and timolol eye drops) - Combination therapy for
glaucoma
Latim (latanoprost and timolol eye drops) - Novel combination therapy for
glaucoma
Ribocor (d-ribose sachet) - Cardiac energy supplement
Simcard EZ (simvastatin and ezetimibe tablets) - Combination therapy for
lowering cholesterol and lipids
Tenvir (tenofovir tablets) - Novel antiretroviral for HIV/AIDS
Aqwet (sodium carboxymethylcellulose spray) - Hydrating spray for dry
mouth
Diurem (metolazone tablets) - Thiazide-like diuretic
Migset (miglitol tablets) - Novel alpha-glucosidase inhibitor for use in diabetes
Zoratame (acitretin capsules) - Retinoid for psoriasis
8X shampoo (ciclopirox shampoo) - Antifungal shampoo for
dandruff and seborrhoeic dermatitis
Cresar (telmisartan tablets) - New angiotensin II receptor antagonist for
hypertension
Urimax D (tamsulosin and dutasteride tablets) - Novel combination treatment for
benign prostatic hyperplasia
Propcaine (proparacaine eye drops) - Topical anaesthetic agent for use in
ocular surgery.
Divaine (minocycline tablets) - Antibiotic for acne
Infrastructure:
Manufacturing Facilities:
The Company's new export-oriented manufacturing unit for APIs and
drug formulations is nearing completion at Patalganga. It is expected to
commence production in the second quarter of 2006-2007. During the year, the
Company expanded its facilities at Baddi in Himachal Pradesh.
In addition, the Company is planning to set up a large drug formulation
manufacturing facility for various dosage forms at a Special Economic Zone
(SEZ) in Goa.
The Company has also planned major additions to its manufacturing facilities at
Kurkumbh and Bangalore
Safety and Environment Care:
As always, the Company maintained high standards of occupational health, safety
and environment friendly practices at all units. During the year, Cipla's
Kurkumbh unit was awarded the 'Five Star' rating and qualified for the 'Sword
of Honour' while the Patalganga unit was awarded the 'Sword of Honour' for the
second time, by the British Safety Council, UK.
In addition, the Kurkumbh plant has been certified for compliance with ISO
14001 and OHSAS 18001 standards. Cipla's Goa unit was awarded the 'Longest
Accident-Free Year' trophy by the Chief Minister of Goa after certification of
its performance by the Green Triangle Society, Goa in consultation with the
Factory Inspectorate, Goa.
Opportunities:
International Markets:
While the Company has a strong presence in the developing countries, one of the
Company's business strategies is to collaborate with its international business
partners to develop and supply products to the regulated and developed markets.
Cipla has entered into partnerships for 123 products with a number of partners
in the USA alone. The Company has filed over 170 registrations in Europe,
principally for marketing its drug formulations in the continent. In addition,
Cipla has approvals for over 4000 drug formulations in the emerging markets,
including South & Central America, the Middle East and Africa.
Technological Strengths:
The Company intends to leverage its technological advantage developed over 70
years to maintain its leadership position in the domestic market while striving
to expand its business in other markets.
The Company will retain its focus on result-driven research work to develop and
enhance know-how for new drug delivery systems and manufacturing processes both
for APIs and drug formulations.
Cipla's strategic alliance with Avestha Gengraine Technologies Private.
Limited., for the development of biotherapeutic products is progressing
satisfactorily.
The Company has continued to file a number of patents both in India and in many
other countries throughout the world.
The Company is confident that its emphasis on large scale commercial
exploitation of technologically advanced products in its state-of-the-art
facilities will give Cipla a definite advantage in meeting the future demands
of the global market.
Community Care:
The Cipla Foundation's Palliative Care Centre in Pune continues to provide care
to terminally ill cancer patients. As of date, this institution has provided
comfort and solace to nearly 5000 patients.
The Company continues to provide patients in India and other countries, drugs
for Malaria, HIV and several neglected diseases, at very reasonable prices.
Cipla also provides medicines to treat over a million poor, aged patients in
slums and villages through Helpage India and the Umeed Foundation.
The Company has always been prompt in providing free medicines to those
affected by natural calamities in various parts of the country. During the
year, Cipla supplied free medicines to the flood-affected in various states of
India and parts of Sri Lanka. They also took up the formidable challenge of
commercially manufacturing oseltamivir and zanamivir, two important antiviral
drugs that can control avian flu in humans.
In addition, the Company continued to support the promotion of education and
community welfare, both directly and through its charitable trusts.
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.41.67 |
|
UK Pound |
1 |
Rs.83.41 |
|
Euro |
1 |
Rs.56.61 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
80 |
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 |
|