MIRA
INFORM REPORT
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Report Date : |
20.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
CADILA HEALTHCARE LIMITED |
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Registered Office : |
Zydus Tower, Satellite Cross Road, Ahmedabad – 380 015, Gujarat, |
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Country: |
India |
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Financials (as on): |
31.03.2006 |
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Date of Incorporation : |
15.05. 1995 |
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Com. Reg. No.: |
04-25878 |
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CIN No.: [Company Identification No.] |
U24230GJ1995PLC025878 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
AHMC00020G |
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PAN No.: [Permanent
Account No.] |
AAACC6253G |
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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 : |
Manufacturer and Seller of pharmaceuticals, bulk drugs, formulations and injectibles. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 29000000 |
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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 leading pharmaceutical company in the country. Available information indicates high financial responsibility of the company. Directors are experienced, respectable and resourceful industrialists. Their trade relations are reported as fair. Financial position of the company is good. Payments are reported as correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Zydus Tower, Satellite Cross Road, Ahmedabad – 380 015, Gujarat, India |
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Tel. No.: |
91-79-2677 0100 |
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Fax No.: |
91-79-2673 2365 / 2673 2366 |
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E-Mail : |
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Website : |
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Corporate Office : |
Zydus Tower, Satellite Cross Roads, Ahmedabad – 380 015, Gujarat |
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Tel. No.: |
91-79-2686 8100 (20 Lines) |
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Fax No.: |
91-79-2686 2365 / 66 |
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Website : |
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Factory 1 : |
Sarkhej-Bavla N.H. No.8, Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat Tel No. 91-79-23750331 / 36 / 36 Fax No. 91-79-23750319 Formulation Unit:
S. No.417, 419 & 420, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat. Kundaim Industrial Estate, Ponda, Goa – 403 401. Village Saraj Mujra, P. O. –Baddi, Tehsil – Nalagarh, District - Solan Neutraceutical Plant
5504, GIDC Estate, Phase III, Vatva, Ahmedabad, Gujarat. SBI Bulk Drug Unit
Plot No. 291, GIDC Industrial Estate, Ankleshwar – 393 002, District Bharuch, Gujarat Tel No. 91-2646-220621/220719 Fax No. 91-2646-250672 |
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Research Center : |
Zydus Research Centre
Ø C/4, MIDC, Pawne Village, Thane Belapur Village, Vashi, Navi Mumbai – 400 705, Maharashtra. Tel No. 91-22-27670224/27670225 Fax No. 91-22-27670223 Ø S. No. 396/403, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat. Ø Sarkhej-Bavla N.H. No.8, Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat. Tel No. 91-79-23750802-05 Fax No. 91-79-23750606 |
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Business Development Office : |
203/204, Neelkant Commercial Centre, Sahar Road, Andheri (East), Mumbai – 400 099, Maharashtra. Tel No. 91-22-28394690/28394698 |
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Branches : |
Khemka House, Drive-in Road, Ahmedabad - 380 052, Gujarat |
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Tel. No.: |
91-79-27410861 |
DIRECTORS
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Name |
Mr. Pankaj R.
Patel |
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Designation |
Chairman &
Managing Director |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Indon Healthcare Limited Ø Cadila Laboratories Limited Ø Zydus Pharmaceuticals Limited Ø Zydus Finance Limited Ø Zydus Aqrovet Limited Ø Zydus International Private Limited,
Ireland Ø Zydus Healthcare S.A. (Pty) Limited, South
Africa Ø Zydus Byk Healthcare Limited Ø Zoom Properties Private Limited Ø Pharmaceuticals Business Group (I) Limited
Ø Pripan Investment Private Limited Ø Rampan Investment Private Limited Ø Pritpan Investments Private Limited Ø Sharvil Investment Private Limited Ø Shivpan Investment Private Limited Ø Pankram Investment Private Limited Ø Vadilal Chemicals Limited Ø Cadmach Machinery Company Private Limited C
Gujarat
Themis Biosyn Limited |
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Name |
Mr. Mukesh M.
Patel |
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Designation |
Director |
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Address |
Ashwamegh
Bungalows, Part II, Off. Satellite Road, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Indo Healthcare Limited Ø Symphony Comfort Systems Limited Ø Magnum Fincap Limited Ø Caditronics Limited Ø Nutan Tobacco Company Private Limited Ø Instavision Systems (I) Private Limited |
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Name |
Dr. Manubhai A.
Patel |
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Designation |
Director |
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Address |
4, Purohit Society,
B/H Swaminarayan Society, Sardarnagar, Chhani Road, Baroda – 394 220,
Gujarat, India |
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Other Directorships |
Ø Gujarat Lyka Limited Ø Vadilal Chemicals Limited Ø Elysium Pharmaceuticals Limited Ø Nilkamal Synfabs Limited |
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Ø |
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Name |
Mr. Pranlal Bhogilal |
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Designation |
Director |
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Address |
122, Walkeshwar
Road, Mumbai – 400 006, Maharashtra, India |
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Other Directorships |
Ø Wood Papers Limited Ø Bengal Hotels Private Limited Ø Bilimora Commerce Private Limited Ø Bilimora Trading Company Private Limited Ø Das Organochem Private Limited Ø Oriental Estates & Manufactures
Private Limited Ø Consolidated Holdings Limited Ø Bharat Trading & Manufacturing
Corporation Private Limited Ø Modern Bobbin Company Private Limited Ø Das Jubilee Private Limited Ø Collinson & Company Private Limited Ø Midas Touch Investments Limited Ø Dastan Private Limited Ø Karnvati Trading Company Private Limited Ø Sabarmati Trading Company Private Limited Ø Ellisbridge Holds Private Limited Ø Kathwada Holdings Limited Ø Aashka Holdings Limited Ø Aashka Investments Limited Ø Dastan Leasing & Finance Limited Ø Lok Prakashan Limited |
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Name |
Mr. Sharvil P.
Patel |
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Designation |
Director |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Name |
Mr. H. K. Bilpodiwala |
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Designation |
Director |
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Name |
Mrs. Pritiben P. Patel |
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Designation |
Director |
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Name |
Mr. A. S. Diwanji |
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Designation |
Director |
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Name |
Mr. H. Dhanrajgiri |
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Designation |
Director |
KEY EXECUTIVES
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Name |
Mr. Ramanbhai B.
Patel |
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Designation |
Founder |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Cadmach Machinery Company Private Limited –
Managing Director Ø Cadila Laboratories Limited Ø Indon Healthcare Limited Ø Zydus Pharmaceuticals Limited Ø Zydus Finance Limited Ø Zydus Aqrovet Limited Ø Zydus International Private Limited,
Ireland Ø Zoom Properties Private Limited Ø Pharmaceuticals Business Group (I) Limited
Ø Pripan Investment Private Limited Ø Rampan Investment Private Limited Ø Pritpan Investments Private Limited Ø Sharvil Investment Private Limited Ø Shivpan Investment Private Limited Ø Pankram Investment Private Limited |
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Name |
Mr. Upen H. Shah |
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Designation |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter's holding |
45231625 |
72.02 |
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Mutual Funds and UTf |
2457166 |
3.91 |
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Banks, FIs and Insurance Companies |
5233526 |
8.33 |
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Foreign Institutional Investors |
4979232 |
7.93 |
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NRIs/OCBs |
125259 |
0.20 |
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Other Corporate Bodies |
503000 |
0.80 |
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Indian public |
4277046 |
6.81 |
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Total |
62806854 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of pharmaceuticals, bulk drugs, formulations and injectibles. |
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Products : |
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Exports : |
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Countries : |
Ethiopia, Ghana, Kenya, Mauritius, Tanzania, Uganda, Zambia, Sierraleone, South Africa, Bahrain, Sudan, Sultanate of Oman, Yemen, Jordan, Belarus, Estonia, Georgia, Kazakhistan, Khirgstan, Latvia, Lithuania, Moldova, Russia, Ukrain, Uzbekistan, Cambodia, Hong Kong, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Thailand, Vietnam, Bulgaria, Czech Republic, Romania, Malta, Panama, West Indies, Mexico, Papua New Guinea, Germany and UK. |
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Imports : |
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Countries : |
Europe |
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Terms : |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Tablets |
M. L. Nos. |
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7040 |
4035 |
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Capsules |
M. L. Nos. |
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790 |
428 |
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Injections |
K. Ltrs |
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513 |
229 |
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Dry Powder Injections |
Kgs |
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200 |
3263 |
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Liquids |
K. Ltrs |
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0 |
335 |
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Dry Syrups,Powder and Granuted |
Tonnes |
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6632 |
444 |
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Ointments |
Tonnes |
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0 |
103 |
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Suppositories |
M. L. Nos. |
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7 |
10 |
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Bulk Drugs |
Tonnes |
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373 |
387 |
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Lyophised Injections |
ML Nos. |
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5 |
3 |
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Vaccines |
M. L. Dosages |
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2 |
1 |
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Aeroslos |
M. L. Nos. |
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3 |
0 |
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Transdermals |
ML.Nos. |
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5 |
1 |
GENERAL
INFORMATION
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Customers : |
A bZydus Pharmaceuticals Limited B Zydus Healthcare Brazil Limited C Zydus Pharmaceuticals (USA)
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No. of Employees : |
3000 |
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Bankers : |
Ø ICICI Bank Limited Ø Citi Bank Ø IDBI Bank Ø State Bank of India Ø Bank of Baroda Ashram Road Branch, Opp. Natraj Cinema, Ashram Road, Ahmedabad – 380 009, Gujarat, India Ø Corporation Bank, Industrial Finance Branch, Rangoli Complex, 1st Floor, Opp. V S Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India Ø State Bank of Saurashtra Industrial Finance Branch, Gujarat Chambers of Commerce Building, Ashram Road, Ahmedabad – 380 009, Gujarat, India Ø Global Trust Bank Limited G-2, Samedh, Near Associated Petrol Pump, C G Road, Ahmedabad – 380 006, Gujarat, India |
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Facilities : |
Securities for Loans: 1 [A] First charge by way of
mortgage of immovable properties and hypothecation of movable properties of
the API Unit of the Company at Ankleshwar, Corporate Office Complex of the
Company at Ahmedabad and legal mortgage of selected Trade Marks of the Company
[ Since released ]. [B] First charge by way of mortgage of office complex of the Company
at Mumbai, a residential flat of the Company at Ahmedabad and legal mortgage
of selected Trade Marks of the Company. 2 [A] Secured by hypothecation of three trade marks of the Company. [B] [a] Secured by way of hypothecation of inventories and book-debts
, both present and future, of the specific divisions for which facilities are
availed by the Company. [ b] Further secured by pledge of titles to the goods dispatched,
besides second charge on all the fixed assets of the Formulation Unit of the
Company at Moraiya and Plant and Machineries of the API Unit of the Company
at Ankleshwar. [ c ] The above charges rank" paripassue " amongst banks in
the respective consortium. [C] [a] Rs. 748 Millions [As at 31-03-05 - Rs. 876 Millions] are
secured by first equitable mortgage of immovable properties and hypothecation
of movable properties, both present and future, of the Formulation Unit of
the Company at Moraiya, save and except current assets charged to banks for
working capital finance loans to rank " paripassue " between
lenders at2[C][c]. . [b] Rs. 59 Millions [As at 31-03-05 - Rs. 120 Millions] are secured by
first mortgage of immovable
properties and hypothecation of movable properties, both present and future
of the Formulation Unit situated at Ponda, Goa save and except current assets charged to Banks for working capital finance
loans & to rank" paripassue "with 2[C][c]. [ c ] Rs. 540 [ As at 31-03-05 - Rs. 398 Millions ] are secured by
securities mentioned at 2[C][a] & 2[C][b} above on " paripassue
" basis. [ d ] Rs. 405 Millions [As at 31-03-05 - Rs. Nil] are secured by"
paripassue " first mortgage of immovable properties and hypothecation of
movable properties, both present and future, of the API Unit-1 of the Company
situated at Ankleshwar, save and except current assets charged to banks for
working capital finance loans
Note : Loan at [ 3 - A] is subject to first and / or second charge to
be created on the fixed assets of the Formulation Unit of the Company at Moraiya, to rank " paripassue " with other lenders.
Pending creation of this security, amount upto Rs. 85 Millions is secured b^personal guarantee of the Managing Director of the Company. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Ø R. R. Patel & Company Chartered Accountants 14/15, K. B. Commercial Centre, Lal Darwaja, Ahmedabad – 380 001, Gujarat Ø Mukesh M. Shah & Company Chartered Accountants 3, H. K. House, Second Floor, Ashram Road, Ahmedabad – 380 009, Gujarat |
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Associates/Subsidiaries : |
Associates: Pharmaceutical Business Group (India) Limited Zydus Byk Healthcare Limited Pripan Investment Private Limited Incorporated on 1st December, 1980 Taram Investment Private Limited Incorporated on 30th October, 1984 Pritpan Investment Private Limited Incorporated on 22nd May, 1992 Sharvil Investment Private Limited Incorporation on 22nd May, 1992 Shivpan Investment Private Limited Incorporated on 22nd May, 1992 Rampan Investment Private Limited Incorporated on 22nd May, 1992 Pankram Investment Private Limited Incorporated on 22nd May, 1992 Zydus Travelease Private Limited Incorporated on 15th May, 1995 Zydus Finance Limite Incorporated on 31st October, 1994 Caditronics Limited Incorporated on 6th July, 1982 Instavision Systems (India) Private Limited Incorporated on 16th November, 1984 Cadmach Machinery Company Private Limited Incorporated on 6th September, 1973 Onconova Therapeutics Inc., U.S.A. Sarabhai Zydus Animal Health Limited Subsidiaries : Zydus Pharmaceuticals Limited German Remedies Limited Dialforhealth India Limited. Dialforhealth Unity Limited Zydus International Private Limited Zydus Healthcare SA(Pty)Limited. Zydus Healthcare (USA) LLC Zydus Pharmaceuticals USA Inc. Zydus Healthcare Brasil LTDA. Zydus France SAS SCI Immopharm |
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Joint Venture Companies: |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
90000000 |
Equity Shares |
Rs.5/- each |
Rs.450.000 Millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
62806854 |
Equity Sahres |
Rs.5/- each |
Rs,314.000
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 |
314.000 |
314.000 |
314.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7049.000 |
5830.000 |
5081.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
7363.000 |
6144.000 |
5395.000 |
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LOAN FUNDS |
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1] Secured Loans |
3125.000 |
2874.000 |
3437.000 |
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2] Unsecured Loans |
1207.000 |
841.000 |
620.000 |
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TOTAL BORROWING |
4332.000 |
3715.000 |
4057.000 |
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DEFERRED TAX LIABILITIES |
1097.000 |
1012.000 |
974.000 |
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TOTAL |
12792.000 |
10871.000 |
10426.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6860.000 |
6784.000 |
6476.000 |
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Capital work-in-progress |
589.000 |
396.000 |
408.000 |
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Preoperative
& Project Expenses Pending allocation |
0.000 |
4.000 |
8.000 |
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INVESTMENT |
1851 |
1368.000 |
1381.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2128.000
|
1939.000 |
1603.000 |
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Sundry Debtors |
1851.000
|
1088.000 |
1659.000 |
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Cash & Bank Balances |
23.000
|
264.000 |
372.000 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
2086.000
|
1372.000 |
701.000 |
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Total
Current Assets |
6088.000
|
4663.000 |
4335.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
1999.000
|
1844.000 |
1819.000 |
|
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Provisions |
597.000
|
575.000 |
511.000 |
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Total
Current Liabilities |
2596.000
|
2419.000
|
2330.000
|
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|
Net Current Assets |
3492.000
|
2244.000 |
2005.000 |
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MISCELLANEOUS EXPENSES |
0.000 |
75.000 |
148.000 |
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TOTAL |
12792.000 |
10871.000 |
10426.000 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
12460.000 |
11419.000 |
11243.000 |
|
|
Other Income |
0.000 |
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|
|
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Total Income |
377.000 |
11419.000 |
11243.000 |
|
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|
|
|
|
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|
Profit/(Loss) Before Tax |
1888.000 |
1504.000 |
1634.000 |
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Provision for Taxation |
239.000 |
190.000 |
205.000 |
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Profit/(Loss) After Tax |
1649.000 |
1314.000 |
1429.000 |
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Earnings in Foreign Currency : |
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|
|
|
|
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F.O.B value of Exports |
2073.000 |
0.000 |
0.000 |
|
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Commission Earnings |
0.000 |
0.000 |
0.000 |
|
|
Other Earnings |
117.000 |
1388.000 |
1773.000 |
|
Total Earnings |
2190.000 |
1388.000 |
1773.000 |
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Imports : |
|
|
|
|
|
|
CIF values of imports |
1315.000 |
0.000 |
0.000 |
|
|
Expenditure in foreign currency |
723.000 |
0.000 |
0.000 |
|
|
Others |
0.000 |
1285.000 |
1072.000 |
|
Total Imports |
2038.000 |
1285.000 |
1072.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Consumption of Material and finished Goods |
5090.000 |
0.000 |
0.000 |
|
|
General Expenses |
4489.000 |
0.000 |
0.000 |
|
|
Research Expenses |
817.000 |
0.000 |
0.000 |
|
|
Interest |
205.000 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
616.000 |
0.000 |
0.000 |
|
|
Other Expenditure |
0.000 |
9791.000 |
9484.000 |
|
Total Expenditure |
11217.000 |
9791.000 |
9484.000 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
|
Sales
Turnover |
3572.000 |
3820.000 |
3544.000 |
|
Other
Income |
182.000 |
209.000 |
281.000 |
|
Total
Income |
3754.000 |
4029.000 |
3825.000 |
|
Total
Expenditure |
2984.000 |
3070.000 |
2994.000 |
|
Operating
Profit |
770.000 |
959.000 |
831.000 |
|
Interest |
49.000 |
47.000 |
44.000 |
|
Gross
Profit |
721.000 |
912.000 |
787.000 |
|
Depreciation |
159.000 |
167.000 |
172.000 |
|
Tax |
58.000 |
52.000 |
90.000 |
|
Reported
PAT |
492.000 |
655.000 |
525.000 |
200606 Other Income Includes Other Income from Operations Rs
77.00 million Other Income Rs 105.00 million Expenditure Includes (Increase) / Decrease
in Stock in Trade Rs(231.00) million Consumption of Materials Rs 1521.00
million Staff Cost Rs 393.00 million Other Expenditure Rs 1288.00 million
Interest Includes Interest & Financial charges Rs 49.00 million Exchange
rate Fluctuations on Foreign Currency Loans Rs 13.00 million Tax Includes
Provision for Current Tax Rs 51.00 million Deferred Tax Rs 12.00 million Fringe
Benefit Tax Rs 7.00 million 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 40 Complaints disposed off during the quarter 40
Complaints unresolved at the end of the quarter Nil 1. The above results were
reviewed by the Audit Committee and then approved by the Board of Directors at
their meeting held on July 28, 2006. 2. The Statutory auditors of the Company
have carried out a limited review of the financial results of the Company for
the quarter ended June 30, 2006. 3. Board of Directors of the Company has fixed
August 31, 2006 as record date for the purpose of issue of Bonus Shares. 4. (A)
The Company has made Investments in Shares of the following Group Companies
during the Quarter : Carnation Nutra Analogue Foods Ltd : Rs 251 million BSV
Research & Development Pvt Ltd : Rs 5 million BSV Pharma Pvt Ltd : Rs 5
million Zydus Mayne Oncology Pvt Ltd : Rs 35 million (B) The Company has
subscribed Rs 10 million to the capital of M/s Zydus Healthcare, a partnership
firm in which the Company is a partner. 5. The Company has one segment of
activity viz. Pharmaceuticals
200609 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 45 Complaints disposed off during the
quarter 45 Complaints unresolved at the end of the quarter Nil 1. The above
results were reviewed by the Audit Committee and then approved by the Board of
Directors at their meeting held on October 31, 2006 and the statutory auditors
of the Company have carried out a limited review of the financial results of
the Company. 2. During the quarter, USFDA has approved two more ANDAs filed by
the Company. 3. The Company has allotted 62,806,854 fully paid equity shares of
Rs 5/- each as bonus shares in the ratio of 1:1 on September 05, 2006 and they
are now listed on NSE, BSE & ASE. 4. (A) The Company has made Investments
in Shares of the following Group Companies during the Quarter : Name of the
Concern: Zydus International Pvt Ltd (wholly owned subsidiary: Rs 213.70 million
Carnation Nutra Analogue Foods Ltd (Partly owned subsidiary) : Rs 0.50 million
Zydus Mayne Oncology Pvt Ltd : (Joint Venture) : Rs 40.00 million (B) The
Company has subscribed Rs 55.90 million to the capital of M/s. Zydus
Healthcare, a partnership firm in which the Company is a partner. 5. The
Company has established a wholly owned subsidiary company namely Zydus Pharma
Inc, Japan. 6. The Company has one segment of activity viz. Pharmaceuticals.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.60 |
0.67 |
0.85 |
|
Long
Term Debt-Equity Ratio |
0.43 |
0.53 |
0.68 |
|
Current
Ratio |
1.14 |
1.07 |
1.06 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.33 |
1.25 |
1.36 |
|
Inventory |
6.43 |
6.35 |
6.64 |
|
Debtors |
8.90 |
8.19 |
7.37 |
|
Interest
Cover Ratio |
7.94 |
7.04 |
6.71 |
|
Operating
Profit Margin(%) |
21.22 |
20.61 |
21.96 |
|
Profit
Before Interest And Tax Margin(%) |
16.51 |
15.58 |
17.20 |
|
Cash
Profit Margin(%) |
17.31 |
16.71 |
17.56 |
|
Adjusted
Net Profit Margin(%) |
12.61 |
11.68 |
12.80 |
|
Return
On Capital Employed(%) |
20.11 |
18.37 |
21.19 |
|
Return
On Net Worth(%) |
24.42 |
22.77 |
28.61 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.339.00 |
|
Low |
Rs.334.50 |
LOCAL AGENCY
FURTHER INFORMATION
Operations and
Business Performance
During the year under review, the Company achieved sales of Rs. 13082
millions, showing a growth of 16.25%
compared to the previous year. The PBIDT increased by 17.70% to Rs. 2820
millions.The Profit Before Tax was higher 25.53 % to Rs. 1888 millions. The
Profit After Tax increased to Rs. 1649 millions up 25.49% compared to Rs. 1314
millions in 2004-05. The Company achieved EPS (After Extraordinary items) of
Rs. 26.26 compared to Rs. 20.93 in 2004-05.
Acquisition
The Company has acquired 14.96% stake in Carnation Nutra Analogue Foods
Limited (Carnation), a listed public limited Company through open market. The
Company has also made voluntary open offer to acquire 20% stake in Carnation in
accordance with the SEBI Regulations. As on 31st March, 2006, the Company holds
30.69% stake in Carnation. Pursuant to the acquisition, the Company will have a
leading additional brand "Nutralite" in the basket of their Consumer
Health Products Division. At present, consumer division of the Company is
marketing India's leading table-top Sweetener "Sugar Free".
Acquisition of "Nutralite". brand will bring in synergy.
Performance of
Major joint Venture Companies
Detailed discussion of performance of joint ventures is covered in
Management Discussion and Analysis Report.
1. Zydus Altana Healthcare,Private Limited (ZAHL)
This 50:50 joint venture company between the Company and Altana Pharma
AG, is a 100% EOU situated at
Navi Mumbai. The company achieved turn over of Rs. 1280 millions for the
year ended on 31st December, 2005 as
against Rs.l367 millions in the previous year. The net profit of the
Company was Rs. 935 millions as against Rs. 1121 millions in the previous year.
ZAHL paid out four interim dividends of Rs. 750 millions in addition to a final
dividend of Rs.5
millions during the year making total of Rs. 755 millions.
2. Sarabhai Zydus Animal Health Ltd. (SZAHL)
SZAHL is a 50:50 joint venture formed between the Company and Ambalal
Sarabhai Enterprises Limited to
market animal healthcare products. The company recorded sales of Rs. 835
rnn showing growth of 17.7%. The
company improved its all round performance in the current year and
earned a net profit of Rs. 66 millions. The
spread of bird flu in India and other countries is likely to adversely
affect its poultry business in the current
year.
3. Zydus Pharmaceuticals USA Inc.
The aforesaid Company though subsidiary of the Company is a joint
Venture between 100% subsidiary
Zydus International Private Limited, Mr. Joseph Renner and Dr. Mahendra
Patel. During the year, the Company
has started marketing of generic products in the U.S. market and has
achieved turnover of Rs. 247 millions in the
very first year of its operations. The strategy for USA for dual
marketing of products and by the Company's own
staff and by Mallinckrodt Inc., is working well. The manufacturing
facilities of the other Joint Venture Companies namely Zydus Mayne Oncology
Private Limited and BSV Pharma Private Limited are under construction.
International market initiatives The Directors are pleased to inform you
that the Company has started commercial activities in the regulated developed
markets like U.S.; France and Brazil. The initial response in both U.S. and
Brazil is encouraging. The French subsidiary Zydus France SAS has reorganised
its product portfolio and its non-core OTC product portfolio has been disposed
off. Zydus France has also entered into an agreement with one of the largest buying
groups for marketing its generics in France. A detailed discussion on these
initiatives are
covered in Management Discussion and Analysis.
International market initiatives
Your Directors are pleased to inform you that the Company has started
commercial activities in the regulated developed markets like U.S.; France and
Brazil. The initial response in both U.S. and Brazil is encouraging. The French
subsidiary Zydus France SAS has reorganised its product portfolio and its
non-core OTC product portfolio has been disposed off. Zydus France has also
entered into an agreement with one of the largest buying groups for marketing
its generics in France. A detailed discussion on these initiatives are covered
in Management Discussion and Analysis.
Fixed Assets:
Freehold Land
Leasehold Land
Buildings
Plant and Machinery
Furniture, Fixture and Office Equipments
Vehicles
Trademarks, Patents and Designs
Technical Know-how
Commercial Rights
Management's Discussion and Analysis
Indian Pharma Industry
FY 2005-06 was a watershed year, both for the Indian pharmaceutical
industry as well as for the Company. As is well known, the long anticipated
change in the country's patent regime took place on January 1, 2005. The
amendment to the Patents Act of 1970 introduced was expected to usher in
significant changes to the Indian pharma market. These were not long in coming.
The most important change was in the number of new products launched in the
market. Over 7,200 brands were introduced in the last four years with over
2,700 new products launched in FY 2004-05 alone (Source: ORG Review) as Indian
companies rushed to take advantage of the older patent law. In marked contrast,
with the introduction of the product patent regime, FY 2005-06 saw a massive
drop in the number of new products launched by Indian companies. Only 2080 new
products were launched during the year. What this also meant was that Indian
pharma companies in the long term will have to deal with a completely new
reality. Earlier, the launch of new products was one of the major growth
drivers of any Indian company's marketing strategy. However, with this spigot
turned off, the Indian pharma industry had to take a hard look at its existing
brands and focus on rejuvenating some of the mature brands. The Company's
management had foreseen most of these changes and has long been preparing for
them. It has analysed the molecules
which are out of purview of patent law and identified more than 150 molecules
for launch in India. This will help the'Company continue its new product launch
programme as aggressively as before. The year also saw several global pharma
majors who had earlier exited the Indian market, returning with their latest
product offerings, now protected by patents. As discussed last year, the
Company's response to the challenges in the Indian pharmaceutical market is
multipronged.
It involves:
Increased R&D spend to create intellectual property U De-risking the
revenue stream by operating in the advanced markets of U.S. and Europe U
Leveraging the quality, size and low cost advantage of its manufacturing base
to explore contract manufacturing opportunities and, Forging alliances and
partnerships to in-license promising new products in the Indian market All
these initiatives have been highly successful and significant progress has been
made on all fronts. Apart from the changes induced by the new patent regime,
several other changes are also taking place in the Indian pharma market. The
most significant of them was the massive Rs. 12,500 cr hike in healthcare
spending by the government, a significant increase of 22% (Source: Union Budget
2006-07).
The government also announced it's decision to set up six more
institutions on the lines of All India Institute of
Medical Sciences (AIIMS) around the country besides allocating Rs. 100
cr each to 11 Central Government
hospitals. It also gave special concessions to few anti-AIDS,
anti-cancer and life-saving drugs. The cumulative
impact of this increased focus on healthcare can only be positive for
the Indian pharma industry.
Another significant change was the increased focus of government
policies on rural areas. Its Rural Employment
Guarantee Scheme is expected to kick-start growth and alleviate poverty
in several rural areas. This, coupled
with the Rs. 8,200 cr (Union Budget 2006-07) allocation to Rural Health
Missions for improving healthcare at
the district level and reducing regional imbalances in health
infrastructure, is expected to have a significant
impact on rural healthcare, besides opening up new markets for Indian
pharma companies.
Other interesting trends that were discernible during the year were the
emergence of corporate hospitals and
health resorts as players of increasing importance in healthcare, as
well as the growth in medical tourism that
is expected to reach a figure of over $2 bn by 2012 (Source: A study by
the Confederation of Indian Industry
and international management consultancy McKinsey & Co., 2004). With
Schedule 'M' becoming compulsory, WHO GMP facilities are now a must. Even
government hospitals have made it compulsory for purchas of goods. The medium
to long-term impact of this in the market will see a consolidation of the
industry with several smaller players being forced to exit. However, the
Management believes that this process of consolidation itself offers a huge new
opportunity which companies of its size and reach can exploit. This new
development, along with the growing acceptance of medical insurance, is
expected to boost market growth. Considering all these factors, the domestic
market which is valued by ORG at Rs. 236 bn for FY 2005-06 will grow at higher
rate in 2006-07.
Zudus Cadila acquires Nippon Universal , Strength its Presences in Japan
Ahmedabad, April 19, 2007
Strength its base in japan, the world’s second
largest pharma market, zudus cadila today announced the acquition of Nippon
universal pharmaceutical Limited. The group has acquired 100% stake in thus is
privately held company head quatered at Tokyo.
The Japanese generics market valued at $ 3 bn
has a trenmendous growth potential as it currently stands at just 5% of the
total pharma market in Japan in value sterm and 17% by volume. The acquisition
will provide ceitical access to a ready manufacturing and marketing bases as
well as a strong distribution reach. This is expected to provide a fillip to
the group’s operations in a market that is highly complex and dominated by
local pharam accompanies.
Zydus which had set upZydus pharma Inc in 2006
to spearhead its foray in the generics market of Japan will now be able to
jumpstart its operation. Nippon provides an opportunity for the group to
established itself in Japan’s rapidly evolving generics space. Zydus will be
looking to leverage Nippon’ strong relationship with key wholesalers which
spans over three decades
The group has identified a new product
development programmed that will feed at leadt 5 to 6 products each year to
their portfolio and build a basket of 40-50 products over the next 3 to 4
years. Moreover Zydus will acquire new Marketing Authorizations (MA) from the
market to cut short on development time and would also explore in-licensing
agreement with other gereric companies. With a sizeable number of products in
its portfolio the group will also be looking t expand the field force to cover
new areas and customers in the medium term.
In this highly regulated market with high
expectation in terms of quality and consistency of supplies, companies looking
to consolidated their prnces have found the actuation route the most ideal one.
Speaking on the acquisition, Chairman and
Managing director, Mr. Pankaj R. Patel said “we had announced our intentions o
being a long term player in this market when we set up our subsidiary last
year. Going forward, I believe this acquition will unlock value for su a
generics market in japan opening up and post 2010 we expect this market to be
major growth driver for our global business.
This marks zydus Cadila’s second overseas
acquisition, the first being Alpharma France in 2003. With a turnover of over
Rs. 18000.000 Millions , Zydusc Cadilla is a global healthcare [provider and
amongst the leading Health care group in India . On a path of accelerate
growth, the group has been expanding its operation through both the organic and
inorganic route. Starting with th acquisition of Recon Healthcare in 2000 Zydus
Cadila went on to acquire German Remedies Limited, In 20011 and Banyan
Chemicals in 2002. Most recently the group made a foray in the 1500 crore Derma
market in India within the acquitiuon of the Mumbai-Based Liva Healthcare. With
over 6000 employee Zydus has business operation in more than 50 countries
worldwide.
HISTORY
The company was incorporated on 15th May, 1995 at Ahmedabad in Gujarat as a Private Limited Liability Company under the Companies Act, 1956 and subsequently the company was converted into a Public Company and then renamed as Cadila Healthcare Limited effective from 17th July, 1996.
It’s Company Registration Number is 25878.
Subject is the flagship of Zydus Cadila Group.
Subject was established in 1951. After an existence of four and a half decades subject restructured its operations in 1995, to keep pace with the new business environment. Subject, under the aegis of the Zydus Group came into existence with a focus on total healthcare solutions.
Two families, "the Patel's" and "the
Modi's", promoted the Cadila group of companies. The flagship company was
Cadila Laboratories. There were other companies named Cadila Chemicals, Cadila
Exports, Cadila Antibiotics and Cadila Veterinary Limited. In 1995, to pursue
their independent business philosophies a restructuring of the group was
carried out under which two companies were formed Cadila Laboratories Limited
(Modi's) and the subject.
The business was divided into two equal parts. After the restructuring the company embarked on a major marketing exercise, which helped it, catapult from 15th rank to 6th rank in the Indian Pharma industry. The promoters of the company, Mr. Ramanbhai Patel and Mr. Pankaj Patel are both well qualified in the field of Pharmaceuticals and have received several awards for their recognition.
In February, 2000 it came out with a pubic issue of 14886000 shares of Rs. 5 each which included a book build portion of 13397400 equity shares of Rs. 5 each and a fixed price portion of 1488600 equity shares at a premium of Rs. 245/- per share.
The fund raised is proposed to utilise for financing new formulations unit at Moraiya, near Ahmedabad and for expansion of bulk drug unit at Ankleshwar, Gujarat. It entered into technical collaboration with Ethical Holdings of UK to manufacture and market transdermal patches in India.
The company’s operation include pharmaceuticals (human formulations, veterinary formulations and bulkdrugs), diagnostics, herbal products like skin care products and OTC products. Its formulation complex is located at Moraiya Village, Sanand Taluka, Ahmedabad.
The company has entered into a joint venture with USA based Onconova Teherapeuticsl Inc. a biopharmaceutical company specialising in the field of oncology (cancer research). This agreement provides for future collaboration on research manufacturing and marketing of products.
As a result of the merger of 4 companies the company has been rated as fourth largest Pharmaceutical company in the domestic formulations market with a market share of 3.80%.
Consequent of merger the Equity Paid up has been risen by 5% during the year 2003.
Highlights of Domestics operations for the year 2003-04
Ø Domestic formulations business grew at 11.9%, well above the market growth rate of 7.3%
Ø Overall 5th ranking in the domestic formulations market (ORG MAT-March 2004).
Ø Retained No. 1 Position in CVS, GI and FHC participated segments (ORG-MAT-March-2004)
Ø Launched 69 new products in the domestic market.
Ø Crystallised in-licensing arrangements with Schering AG, Boehringer ingelheim.
Ø Manufacturing optimisation implemented.
Financial Highlights For the year 2003-04
Ø Sales revenue of Rs. 11723 millions, up 14% from Rs. 10282 millions in 2002-03.
Ø PBIDT up 29.4% y-y to Rs.2488 millions from Rs. 1922 millions last year.
Ø PBIDT margin up to 21.2%, compared to 18.7% last year.
Ø PBT up 55.2% to Rs. 1634 millions, from Rs. 1053 millions last year. PBT margin expanded to 13.9% from 10.2% in 2002-03.
Ø Net profits of Rs. 1429 millions, up 86.5% y-y from Rs. 766 millions in 2002-03. Net Margin of 12.2% compared to 7.4% last year.
Ø EPS of Rs. 22.75 compared to Rs. 12.2 in 2002-03, up 86.5%.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.97 |
|
UK Pound |
1 |
Rs.82.18 |
|
Euro |
1 |
Rs.56.91 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
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 |
|