MIRA
INFORM REPORT
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Report Date : |
25.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
PANACEA BIOTECH LIMITED |
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Registered Office : |
Derabassi, Teh Rajpura,
Patiala – 140 501, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.02.1984 |
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Com. Reg. No.: |
55-17475 |
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CIN No.: [Company
Identification No.] |
L33117PB1984PLC022350 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEP07035A |
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PAN No.: [Permanent
Account No.] |
AAACP5335J |
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Legal Form : |
Subject is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Marketer of Pharmaceutical Formulations viz. Tablets, Syrups / Liquids, Capsules, Gels and Vaccines. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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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 21570000 |
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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 good. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Derabassi, Teh Rajpura,
Patiala – 140 501, Punjab |
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E-Mail : |
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Corporate Office: |
Ambala Chandigarh Highway, Lalru- 140 501, Punjab, India |
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Tel. No.: |
91–11- 26945270/26945274 |
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Fax No.: |
91–11–26940199/26940621/26948548 |
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E-Mail : |
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Website : |
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Head Office/ Administrative Office: |
B 1 Extension / A-27, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044, India |
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Tel. No.: |
91–11–26945270 / 41679000 Extn. 2081 (D) 41578024 |
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Fax No.: |
91–11–26940199 / 26940621 / 41679075 / 41679070 |
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Telex : |
031 – 75211 SKJ IN |
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E-Mail : |
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Website : |
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Plants / R & D Units : |
· B-1/E-12, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi – 110 044 Tel No.-91-11-26945270 Fax No-91-11-26940199 E-mail- corporate@panaceabiotech.com · A 241 / 242, Okhla Industrial Area, Phase I and II, New Delhi – 110 020 · Ambala-Chandigarh Road, Lalru National Highway, Sub Tehsil Derra Bassi, Tehsil Rajapura, Patiala – 140 501, Punjab · Malpur, Baddi, Tehsil Nalagarh, District – Solan, Himachal Pradesh – 173205 · Village Samalheri, Ambala Chandigarh Highway, Lalru – 140 501, Punjab, India · Plot No. E -4, Phase II, industrial Area, Mohali – 160 055, Punjab , India · Plot No. Gen/73/3, TTC Industrial Estate , Mahape, Navi Mumbai – 400 710, India |
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City Office : |
102, Ashok Plaza, 24 School Lane, New Delhi – 110 001, India |
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Tel. No.: |
91–11–26945270/26945274 |
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Fax No.: |
91–11–26948548/26940199/26940621 |
DIRECTORS
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Name : |
Mr. Soshil Kumar Jain |
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Designation : |
Chairman |
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Age : |
72 years |
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Experience : |
49 years |
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Date of Employment : |
02.02.1984 |
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Qualification : |
Pharmacist |
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Name : |
Mr. Ravinder Jain |
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Designation : |
Managing Director |
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Age : |
47 years |
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Experience : |
24years |
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Date of Employment : |
15.11.1984 |
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Qualification : |
Matriculate |
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Name : |
Mr. Rajesh Jain |
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Designation : |
Joint Managing Director |
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Age : |
40 years |
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Experience : |
20 years |
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Date of Employment : |
15.11.1984 |
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Qualification : |
B.Sc., MBA, Advanced Diploma in Management Research |
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Name : |
Mr. Sandeep Jain |
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Designation : |
Joint Managing Director |
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Age : |
38 years |
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Experience : |
19 years |
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Date of Employment : |
15.11.1984 |
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Qualification : |
B. Com |
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Name : |
Mr. Ashwani Jain |
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Designation : |
Director – Operations and Projects |
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Name : |
Mr. Sunil Anand |
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Designation : |
Director-Finance |
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Name : |
Mr. R. L. Narasimhan |
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Designation : |
Director |
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Name : |
Mr. N. N. Khamitkar |
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Designation : |
Director |
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Name : |
Mr. Sunil Kapoor |
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Designation : |
Director |
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Name : |
Mr. M. L. Kalra |
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Designation : |
Director |
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Name : |
Mr. C. C. Bhagat |
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Designation : |
Director |
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Name : |
Mr. Gurmeet Singh |
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Designation : |
Director |
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Name : |
Mr. Sumit Jain |
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Designation : |
Whole Time Director |
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Name : |
Mr. K. M. Lal |
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Designation : |
Additional Director |
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Name : |
Dr. A N Saksena |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Vinod Goel |
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Designation : |
Company Secretary |
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Name : |
Ms. Sangeeta Nagpal |
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Designation : |
Executive secretarial |
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NON-EXECUTIVE DIRECTORS |
Mr. R.L. Narasimhan Director Mr. N.N. Khamitkar Director Mr. Sunil Kapoor Director Mr. M.L. Kalra Director Mr. Gurmeet Singh Director Mr. K.M. Lai Director Dr. A.M. Saksena Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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As on 31.03.2007:- |
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Promoters, Relatives and Associates |
43622840 |
66.26% |
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Institutional Investors (FII Banks, and Mutual Funds) |
15212873 |
23.11% |
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Domestic Companies |
2742864 |
4.17% |
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Indian Public |
3131939 |
4.76% |
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NRIs / OCBS |
1115488 |
1.69% |
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Clearing Member |
4500 |
0.01% |
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Total
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65830504 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of Pharmaceutical Formulations viz. Tablets, Syrups / Liquids, Capsules, Gels and Vaccines. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Tablets |
Nos. |
1684.0 |
439428872 |
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Capsules
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Nos. |
370.0 |
48115434 |
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Syrups/Liquids
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Bottles / MI |
15.8 |
280384720 |
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Gels |
Tubes / Gms |
21.2 |
79511400 |
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Vaccines
Formulation |
Doses / Vials |
820.0 |
61164671 |
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Recombinant Bulk
Vaccine |
Doses |
12.5 |
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Injections |
Nos |
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1560952 |
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Husk |
Packs |
--- |
--- |
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Kit |
Nos |
--- |
--- |
GENERAL
INFORMATION
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Suppliers: |
· Ambika Parental Containers · Sri Krishna / Pharmaceuticals Limited · Advanced Microdevices Private limited · Wincoat Colours and Coating private limited · Paras enterprises · Canton Laboratories Private Limited · HRJ Surgicals · Siva chemicals · Sukkan Industries · Protech Engg. Industries Private Limited |
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No. of Employees : |
Around 1622 |
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Bankers : |
Ř Punjab National Bank Ř Standard Chartered Grindlays Bank, Ř Canara Bank, Ř State Bank of India, Ř Standard Chartered Bank Ř Axis Bank Limited, Punjab Ř Bank of Bahrain
and Kuwait B.S.C. Ř Export-Import
Bank of India Ř Indian Overseas
Bank Ř Industrial
Development Bank of India Limited. Ř State Bank of
Bikaner and Jaipur Ř State Bank of
India Ř State Bank of
Mysore Ř State Bank of
Travancore Ř Union Bank of India |
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Facility |
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Banking Relations
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Good |
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Auditors : |
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Name: |
S. R. Batiliboi and Associates Chartered Accountants |
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Address: |
New Delhi |
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Joint Venture: |
· Panheber Biotec Private Limited · Chiron Panacea Vaccines Private Limited · Cambridge Biostability Limited |
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Associates/Subsidiaries : |
· Best On Health Limited · Radicura And Company Limited |
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CAPITAL STRUCTURE
Authorised Capital :
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No. Of Shares |
Type |
Value |
Amount |
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125000000 |
Equity Shares |
Re. 1/- Each |
Rs.125.000 Millions |
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110000000 |
Preference Shares |
Rs. 10/- Each |
Rs.1100.000 Millions |
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Total |
Rs.1225.000 Millions
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Issued, Subscribed & Paid-Up Capital :
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No. Of Shares |
Type |
Value |
Amount |
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65830504 |
Equity Shares |
Re. 1/- Each |
Rs.65.830
Millions |
Paid-Up Capital :
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No. Of Shares |
Type |
Value |
Amount |
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65681504 |
Equity Shares |
Re. 1/- Each |
Rs.65.681
Millions |
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Add: |
Forfeited Shares |
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Rs. 0.092
Millions |
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Total |
Rs.65.773 millions |
Forfeited
Shares(14900 Shares @ Rs.10/- each forfeited on May 15,1999, which were later on
sub-divided into 149000 Equity Shares of Re.1/- each on February 12,2003)
(149000 Forfeited Shares have been allotted on 24th August,2005 in the name of
employees of the Company for sale thereof at the prevailing market prices
through recognised Stock Exchanges on the terms and conditions as specified by
Managing / Joint Managing Directors or Director (Finance) of the Company and
reimbursement of net sales proceeds to the company account) (Out of the above
shares, 1814240 Equity Shares of Rs.10 each were issued as fully paid up bonus
shares by capitalisation of General Reserves in earlier years, which were later
on sub-divided into 18142400 Equity Shares of Re.1/- each on February 12,2003)
Nil Redeemable Cumulative Preference Shares* (RCPS) of Rs.10/-each- Series III
(Previous Year 90434914) 4.5% Preference Shares.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
65.774 |
961.518 |
961.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5325.109 |
1546.036 |
1192.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5390.883 |
2507.554 |
2153.900 |
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LOAN FUNDS |
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1] Secured Loans |
0.557 |
1158.454 |
1342.500 |
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2] Unsecured Loans |
2133.645 |
4708.084 |
267.900 |
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TOTAL BORROWING |
2134.202 |
5866.538 |
1610.400 |
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DEFERRED TAX LIABILITIES |
383.869 |
246.832 |
0.000 |
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TOTAL |
7908.954 |
8620.924 |
3764.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2773.229 |
1370.093 |
1091.400 |
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Capital work-in-progress |
1237.247 |
967.007 |
285.400 |
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INVESTMENT |
229.475 |
61.407 |
61.400 |
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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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Inventories |
2081.604
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1804.469 |
1910.100
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Sundry Debtors |
929.160
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774.535 |
787.300
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Cash & Bank Balances |
1571.241
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4414.573 |
75.000
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Other Current Assets |
22.705
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34.481 |
0.000
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Loans & Advances |
1479.857
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679.488 |
513.500
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Total
Current Assets |
6084.567
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7707.546 |
3285.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1397.485
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987.278 |
732.200
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Provisions |
1025.096
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507.487 |
242.100
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Total
Current Liabilities |
2422.581
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1494.765 |
974.300 |
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Net Current Assets |
3661.986
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6212.781 |
2311.600
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MISCELLANEOUS EXPENSES |
7.017 |
9.636 |
14.500 |
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TOTAL |
7908.954 |
8620.924 |
3764.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
8315.513 |
5363.545 |
3766.200 |
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Other Income |
299.568 |
70.914 |
0.000 |
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Total Income |
8615.081 |
5434.459 |
3766.200 |
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Profit/(Loss) Before Tax |
2091.010 |
1002.071 |
429.100 |
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Provision for Taxation |
622.925 |
392.685 |
128.400 |
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Profit/(Loss) After Tax |
1468.085 |
609.386 |
300.700 |
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Export Value
|
6816.475 |
4154.441 |
2277.440 |
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Import Value
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4006.969 |
2294.768 |
1480.630 |
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Expenditures : |
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Manufacturing and Administrative Expenses |
4268.078 |
3143.790 |
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Purchases of Finished Goods |
100.254 |
20.371 |
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Increase/(Decrease) In Finished Goods |
117.559 |
2.971 |
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Personnel Expenses |
787.959 |
429.689 |
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Selling And Distribution Expenses |
326.921 |
264.424 |
3337.100 |
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Research And Development Expenses |
505.011 |
291.530 |
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Interest And Financials Charges |
170.445 |
133.332 |
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Miscellaneous Expenditure Written off |
2.619 |
4.823 |
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Depreciation |
245.222 |
139.156 |
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Total Expenditure |
6524.068 |
4430.086 |
3337.100 |
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QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
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Type
|
2nd
Quarter |
1st
Quarter |
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Sales Turnover |
1751.400 |
2334.300 |
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Other Income |
86.600 |
88.200 |
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Total Income |
1838.000 |
2422.500 |
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Total Expenditure |
1254.200 |
1630.900 |
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Operating Profit |
583.800 |
791.600 |
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Interest |
21.400 |
9.700 |
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Gross Profit |
562.400 |
781.900 |
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Depreciation |
100.100 |
91.800 |
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Tax |
99.800 |
193.700 |
|
Reported PAT |
320.800 |
472.500 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
17.04
|
11.21 |
7.98 |
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Net Profit Margin (PBT/Sales) |
(%) |
25.14
|
18.68 |
11.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
20.71
|
9.97 |
9.20 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.39 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.84
|
2.93 |
1.20 |
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Current Ratio (Current Asset/Current Liability) |
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2.51
|
5.15 |
3.37 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
Net Worth:
The Net Worth of the Company has improved to Rs.5383.9 millions from
Rs.1593.6 millions as at the end of previous year registering a growth of around
238%. The retained profits have contributed around 86% growth in net worth over
previous year and the remaining increase of 152% has been on account of issue
of 7987684 Equity Shares of Re.1 each at a premium of Rs.275.3 per share and
617220 Equity Shares of Re.1 each at a premium of Rs.356.57 per share on
account of conversion of the USD 55 millions Foreign Currency Convertible Bonds
(FCCBs) issued in Feb'06.
Loan Funds:
The total loan funds as at 31st March, 2007, have decreased to Rs.2134.2
millions as against Rs.5866.5 millions on account of part conversion of FCCBs
of US$ 100.0 millions and repayment of other Loans from Banks and Financial
Institutions. The Company has repaid all its term loans and almost all of the
working capital loans by utilizing the funds post conversion of FCCBs.
Profit and Loss
Account:
Turnover: The Company has achieved net turnover of Rs.8315.5 millions
during fiscal 2007 as compared to Rs.5363.5 millions for fiscal 2006,
registering an increase of 55%.
Vaccines: In fiscal 2007, the vaccines segment's turnover grew by 63%
and contributed Rs.6627.2 millions or 79% of gross turnover, as compared to
Rs.4066.9 millions or 74% of gross turnover for fiscal 2006. The domestic
institutional vaccine business grew by 37% to Rs.5064.0 millions from Rs.3693.9
millions during fiscal 2006. The private domestic vaccine sales to JV Company
Chiron Panacea increased by 100% to Rs.211.0 millions as against Rs.105.7
millions during fiscal 2006. The export of vaccines increased by over 400% to
Rs.1352.2 millions as compared to Rs.267.300 millions during fiscal 2006.
The growth in the turnover of vaccine segment is contributed by the vaccines
supplied to UNICEF as well as growth in supplies to the domestic private
vaccine market through the joint venture company, Chiron Panacea Vaccines
Private Limited, which has already garnered around 35% market share in the
domestic market by aggressive brand building.
During the year under review, the Company made supplies of Oral Polio Vaccines to
various countries including Abidjan, Afghanistan, Angola, Bangladesh, Cameroon,
Chad, Congo, Ethiopia, Indonesia, Kenya, Myanmar, Nepal, Nigeria, Somalia,
Sudan, Turkey and Uganda through UNICEF against their global tenders and
achieved a turnover of Rs.1352.2 millions by export of vaccines to these
markets.
The Company has also started supplying Hepatitis B Vaccines to UNICEF against
their global tenders, during the current year.
Pharmaceutical formulations:
The pharmaceutical formulations segment's turnover grew by 25% and
contributed Rs.1762.9 millions or 21% of gross turnover, as compared to
Rs.1405.0 millions or 26%, of the gross turnover for fiscal 2006.
In the Pharmaceutical Formulations segment the domestic net turnover increased
by 27% to Rs.1422.3 millions from Rs.1123.1 millions during fiscal 2006. The
export turnover of formulations increased significantly by 56% at Rs.258.3
millions (including deemed exports of Rs.1.8 millions) during fiscal 2007 from
Rs.165.7 millions (including deemed exports of Rs. nil) during fiscal
2006.
Cash Flow from
Operating Activities:
The liquidity position of the Company has improved significantly with
Operating Cash Profit increasing by over 68% during fiscal 2007 to Rs.2324.8
millions as compared to Rs.1385.5 millions during fiscal 2006.
However the net cash from operating activities declined by 4% during
fiscal 2007 primarily due to higher tax outflows and increase in the working
capital.
Cash Flow from Investment Activities:
Net cash used in investment activities amounting to Rs.1730.2 millions
was primarily used for acquiring fixed assets for various ongoing expansion
projects including new manufacturing facility at Baddi, Himachal Pradesh,
expenditure on modernization of vaccine plant at New Delhi and R and D centers
in New Delhi, Mohali and Lalru in Punjab and Navi Mumbai.
Cash Flow from Financing Activities:
The Company has utilized Rs.2361.9 millions for financing activities as
it repaid the Preference Share Capital of Rs.904.3 millions and other term
loans and working capital loans and invested Rs.168.1 millions in the shares of
Cambridge Biostability Limited during the year under review.
Opportunities and Outlook: The Indian Pharmaceutical Industry's greatest
strengths are its strong scientific talent pool and low cost manufacturing
base. While the Indian companies initially started as a contract manufacturing
partner to multi-national pharmaceutical companies, they have now moved up the
value chain and are providing high quality research and development, clinical,
analytical and niche manufacturing capabilities. With the high cost involved in
the discovery and development of a new molecule, India offers a very high
competitive advantage in terms of reducing the cost of this development.
Since the mid-1990s, leading Indian companies actively started research
activities, both in New Drug Delivery Systems (NDDS) and New Chemical Entities
(NCEs), to respond to the impending change in the patent regime.
This brought to fore India's inherent advantages in basic research as
well as in clinical development of products. These advantages are based on a
large pool of trained chemists and biologists available at lower costs as
compared to developed economies, a large English-speaking workforce, and a
large population of treatment-native patients in most disease areas. Indian
companies have followed a partnering strategy with global pharmaceutical
companies - usually licensing out NCEs and NDDS for clinical development and
commercialization. With the increasing economic prosperity of the country, a
number of Indian Pharmaceutical companies have now started acquiring a global
scale and are competing with large pharmaceutical companies in their market.
With their increasing size and ambitions, the Indian pharmaceutical companies
are making cross border acquisitions, where they supplement the existing
product portfolio and scientific / distribution capabilities of the target with
the ability to add to their product pipeline and transfer manufacturing to more
cost competitive plants in India. India also offers a compelling opportunity in
R and D sourcing for global pharmaceutical majors. The global Companies can
develop a comprehensive strategy to access innovations from the Indian
pharmaceutical research to supplement their global R and D efforts. Momentum is
growing in the measures of global competitiveness and profitability. The
Company is optimistic about its growth prospects in the future. The Company
expects to continue increasing its market share in the existing markets by
increasing its portfolio through new product launches and expanding its
geographical coverage in each region by getting necessary regulatory approvals
in more countries.
In line with its stated mission and vision, the company will continue to pursue
all the options to achieve faster growth and create value for the shareholders
with focused efforts in business development, mutually rewarding partnerships
and launch of new products both in vaccines and pharmaceutical formulation segments.
Further, the Company has committed significant investments in the
infrastructure and facilities for both the segments to support potential
revenue scale-ups in the near future.
All the building blocks for growth are in place and therefore, the
outlook for the coming years is encouraging. And the Company looks forward to
continuing a healthy financial performance in the future.
Future Growth
Drivers:
Panacea Biotec's goal is to become a leading global research based health
management company with an established leadership in niche therapeutic areas
and with a strong focus on R and D. The Company intends to accomplish its goal
by:
Launch of NOVOHIB and POLPROTEC (IPV) through Chiron Panacea Vaccines in
domestic market and rest of the world markets.
Launch of combination vaccines (Easyfive, Ecovac4, NOVOHIB, POLPROTEC) in
semi-regulated markets (South East Asia and African countries, etc.)
Expanding institutional business with WHO/UNICEF and new business with Pan
American Health Organization (PAHO) for vaccines such as Easy five, Ecovac4,
Enivac HB and Easy four)
Participation in potential supply of Recombinant Anthrax vaccine to US
stock-pile program.
Diversifying into new vaccines such as adult prophylactic and
therapeutic vaccines antibodies and innovative vaccines including the
recombinant anthrax vaccine, Japanese encephalitis vaccine, dengue vaccine,
measles vaccine etc.
Launch of patented pharmaceutical products (Willgo, Panimun Bioral, Pangraf,
Mycept, Sitcom, etc.) in the developed markets of US and Europe.
Continuing and expanding its therapeutic focus on high growth, lifestyle
segments and new therapeutic segments such as Oncology through new SBU
Oncotrust, etc.
Increasing exports to semi-regulated markets including LATAM countries, SEA
Region, South Africa and French speaking African Region.
Introducing biopharmaceuticals in the domestic and international markets.
Achieving WHO prequalification for its anti-TB and anti-retroviral products for
which the Company is in the process of filing dossiers for the same.
In-licensing of technologies/products from national and international research
agencies/international institutions
Management Discussion and Analysis Report: As required by Clause 49 of
the Listing Agreement with the Stock Exchanges, a detailed Management
Discussion and Analysis Report forms part of the Annual Report.
Joint Ventures and Subsidiaries:
The Company's Joint Venture Company ("JV Company"), Panheber
Biotec Private Limited ("Panheber"), in joint venture with M/s. Heber
Biotec S.A., Cuba, an arm of the world renowned bio-technology research
facility, Center for Genetic Engineering and Biotechnology (CIGB), is meeting
requirement of Recombinant Hepatitis B Bulk Vaccine and Antigen for the
manufacture of Hepatitis B and combination vaccines by the Company. WHO
pre-qualification for the Recombinant Hepatitis B Vaccine has been received
during the year under review. The Company has started supplying Hepatitis B
Vaccines to UNICEF for its global requirements. The process for WHO
pre-qualification for Combination Vaccines is at an advanced stage of approval
and the approval is expected during the current financial year. Due to
strategic reasons, Heber Biotec has offered to sell its stake in Panheber and
the Company is actively evaluating the offer.
The Company's another JV Company, viz. Chiron Panacea Vaccines Private Limited
("Chiron Panacea"), in joint venture with world's 5th
largest Vaccine group, viz. Chiron Corporation (now Novartis Vaccines), which
began its operations in Jan'05 by way of marketing and distribution of
Combination and other Vaccines in India, has made available innovative
pediatric vaccines to reduce the burden of various diseases in the country. Chiron
Panacea achieved a turnover of Rs.422.4 millions (up by 100%) and net profit of
Rs.61.83 millions (an increase of more than 6 times) during the year under
review. Chiron Panacea now commands around 35% market share in the paediatric
combination vaccines segment in India.
During the year under review, the Company entered into a joint venture and made
investment of Rs.168.07 millions (Pound 1.94 millions) for acquiring 10% of the
share capital in Cambridge Biostability Limited (CBL), a U.K. based Company.
The Company has an Management Discussion and Analysis:
Industry Structure and Developments: Vaccines have been in use for over two
centuries and have been considered for a long time as a commodity product.
Nevertheless, the vaccine sector is undergoing a period of growth due to the
introduction of improved vaccines, new delivery technologies and increased
focus on segments such as pediatric specialty and influenza, and emerging
sectors utilizing vaccines to fight bio-terrorism. In addition, changing population
demographics, competition and new technologies are further transforming this
area with new avenues introduction of different products. The supra-national
agencies like UNICEF, GAVI have played a pivotal role in emergence of the
vaccine market in the last decade by providing funding support and vaccines to
many developing and third world countries for different diseases.
Vaccine Industry is highly technology and R and D driven industry, which
requires high capital investments for creating infrastructure as well as
developing newer vaccines. The gestation period in vaccine industry is longer,
typically 3-5 years for existing known vaccines. These characteristics play as
entry barriers to vaccine industry for new players.
The vaccine market is now shifting towards combination vaccines as against
traditional single vaccines as multiple diseases can be managed with different
combination vaccines with same amount of resources.
The global vaccine
business is surging:
As per industry estimates, the global vaccine market is expected to top
$10 billion in 2007 and $23.8 billion by 2012. Pediatric vaccines have
historically dominated this field, but adult vaccines will see a big spike due
to increased uptake of influenza and hepatitis vaccines. Cancer vaccines will
also become a major player in the vaccine market. The fastest growing segments
in the adult vaccines area are influenza and Hepatitis vaccines.
Indian Vaccine Market:
India is poised to play a leading role in the vaccine market of the
world even as Asia starts to become the vaccine hub of the world. The Indian
vaccine market is estimated to be around US$500 millions with a private vaccine
market of US$125 millions, growing at 20% per annum. Though the Indian vaccine
market is primarily dominated by traditional vaccines like Tetanus, DPT, Polio,
Typhoid and Hepatitis-B, the private vaccine market is now shifting from single
traditional vaccines to new innovative combination vaccines like Hep. B + DTP +
Hib and Hib + DTP.
The government immunization program guides the primary demand for vaccines,
which is in line with WHO universal immunization policy. This policy recommends
universal immunization of all children to reduce child mortality.
The proposed National Biotechnology Policy is expected to provide the
much needed funding for augmenting startups and supporting product development.
Given the right impetus and with India positioning itself as the
preferred global destination for biotechnology, Indian Companies are poised to
feature among the top 10 biotech companies globally by 2015.
Polio - Current Scenario:
Globally, the launch of WHO's global polio eradication programme fuelled
the polio eradication activities in 1988. The WHO's initial target of
eradicating polio globally by 2000 has been revised to 2008 to incorporate
solutions for practical difficulties faced during the past. However, there has
been a significant progress in combating the deadly disease. The number of
countries affected by polio has come down rapidly from 125 countries in 1988 to
4 countries in 2005, namely India, Nigeria, Pakistan and Afghanistan. India is
the second largest country (Nigeria has reported maximum number of cases)
affected by polio.
There has been a steady decline in Polio cases, from an estimated 350000 cases
in 1988 world wide, the total number of cases drastically coming down to around
376 in 2007. India has registered significant achievements in polio eradication
and the number of cases being reduced from 25000 in 1988 to just 139 in 2007
(till 8th July, 2007).
As per WHO guidelines, a WHO region can be certified polio free only if
it does not record any case of polio during three consecutive years following
the year in which zero case is registered first time. India hopes to register
zero case for the first time in CY 2008. Thereafter, if it does not record any
case of polio in 2009, 2010 and 2011, India can achieve its target of becoming
a polio free country. However, immunization activities may continue until entire
region (Pakistan and Afghanistan) becomes a polio free nation.
Immunization against Polio to Continue:
The immunization against polio will continue in the post polio
eradication era. It is expected that the mode of immunization will change from
Oral Polio Vaccine to Injectable Polio Vaccine. In those countries where polio
has been eradicated, the Injectable Polio Vaccine is being used. The world
health regulatory bodies suggest that the vaccination against polio must
continue even after achieving polio eradication.
Global Pharmaceutical Market:
The global pharmaceutical market continued to expand its size year on
year on the back of increased expenditure on health management in expanding
economies. The changing demographies and epidemiological trends with ever
increasing demand for lifestyle products supported the current growth in the
global pharmaceutical market. The global pharmaceutical market registered a
growth of 6.5% in 2006, down slightly from 2005 and passed another threshold to
reach US$ 608 billion. [Source IMS MIDAS].
As per the industry estimates, the global pharmaceutical market is forecast to
grow to US$842 billion in 2010, an equivalent CAGR of 6.9% over the next five
years.
FIXED ASSTES:
· Land and Buildings
· Leasehold Equipments
· Plant and Machinery
· Vehicles
· Furniture and Fixtures
· Office Equipments
· Computer Equipments
PRESS RELEASE:
New Delhi, October 23, 2007:
Panacea Biotec today announced its unaudited financial results for the
quarter and half year ended September 30, 2007. The company’s board met here on
Tuesday 23 October 2007 to consider and approve its unaudited financial results
for the quarter and half year ended September 30, 2007. The results were also
reviewed by the company’s Audit committee in their meeting on Monday October
22, 2007.
The key financial
highlights are as follows: (Rs. In
millions)
|
FINANCIAL HIGHLIGHTS |
Quarter Ended |
YoY |
Half Year Ended |
YoY |
||
|
30.09.07
|
30.09.06
|
Change
|
30.09.07
|
30.09.06
|
Change
|
|
|
|
|
|
|
|
|
|
|
Net Turnover |
1751.4 |
1742.7 |
0.5% |
4085.7 |
4076.6 |
0.2% |
|
|
|
|
|
|
|
|
|
EBITDA |
497.4 |
579.2 |
-14.1% |
1,200.6 |
1427.5 |
-15.9% |
|
|
|
|
|
|
|
|
|
Profit Before Tax (PBT) |
462.3 |
634.8 |
-27.2% |
1152.4 |
1419.8 |
-18.8% |
|
|
|
|
|
|
|
|
|
Profit After Tax (PAT) |
320.8 |
465.3 |
-31.1% |
793.3 |
962.9 |
-17.6% |
|
|
|
|
|
|
|
|
|
EPS – Basic |
4.88 |
8.02 |
-39.2% |
12.07 |
16.53 |
-27.0% |
|
|
|
|
|
|
|
|
|
EPS – Diluted |
4.51 |
6.78 |
-33.5% |
11.14 |
13.66 |
-18.4% |
|
|
|
|
|
|
|
|
|
Margin - EBITDA |
28.4% |
33.2% |
|
29.4% |
35.0% |
|
|
- PBT |
26.4% |
36.4% |
|
28.2% |
34.8% |
|
|
- PAT |
18.3% |
26.7% |
|
19.4% |
23.6% |
|
The Company has registered net turnover of Rs.1751.4 millions during the
QE September 30, 2007 as compared to Rs.1742.7 millions for the corresponding
quarter of previous financial year. The net turnover for the half year ended
September 30, 2007 was Rs.4085.7 millions against Rs.4076.6 millions during the
corresponding period of previous financial year.
During the quarter under review, the Company registered net profit of
Rs. 320.8 millions against Rs. 465.3 millions during corresponding quarter of
previous financial year. The net profit during previous corresponding quarter
included exchange gain of around Rs. 100 millions on account of conversion of
convertible bonds into equity and interest income of Rs. 50 millions on unused
funds from convertible bonds. Further, the operating costs during the current
period have also gone up by around Rs. 82 millions.
Mr. Rajesh Jain, Joint Managing Director,
said,”The Company has successfully faced the challenges posed by the
continuously appreciating domestic currency by increasing volumes and price to
the extent possible. Though the company’s turnover continues to grow in volume
and foreign currency terms however in rupee terms the growth is not duly
reflected. The company’s domestic turnover grew by 17% to Rs.1531.5 millions,
the domestic vaccine sales grew by 21% to Rs.1125.8 millions and the domestic
formulations sales grew by 8% to Rs.405.7 millions during the QE September 30,
2007. The export turnover witnessed 26% growth in the formulations segment at
Rs.90.9 millions however the vaccines export declined by 65% to Rs.125.5
millions on account of shift in demand towards domestic program.”
The segmental
financial highlights are as under:
|
SEGMENTALHIGHLIGHTS |
Quarter Ended |
YoY |
Half Year Ended |
YoY |
||
|
30.09.07 |
30.09.06
|
Growth |
30.09.07
|
30.09.06
|
Growth
|
|
|
VACCINES SEGMENT |
|
|
|
|
|
|
|
Turnover |
1251.3 |
1293.0 |
-3.2% |
3088.1 |
3232.9 |
-4.5% |
|
Profits |
578.0 |
622.7 |
-7.2% |
1371.4 |
1541.8 |
-11.1% |
|
Margin |
46.2% |
48.2% |
|
44.4% |
47.7% |
|
|
SEGMENTAL HIGHLIGHTS |
Quarter Ended |
YoY |
Half Year Ended |
YoY |
||
|
FORMULATIONS
SEGMENT |
30.09.07 |
30.09.06 |
Growth |
30.09.07 |
30.09.06 |
Growth |
|
Turnover |
496.6 |
448.8 |
10.7% |
994.1 |
839.7 |
18.4% |
|
Profits |
63.0 |
100.2 |
-37.2% |
144.1 |
163.6 |
-11.9% |
|
Margin |
12.7% |
22.3% |
|
14.5% |
19.5% |
|
During the quarter under review, in the vaccine segment, institutional business
witnessed 8% growth in volumes and 12% in foreign exchange value terms however
the rupee value declined around by 2%. The vaccine segment margin remained
around 46%. In the Pharma (Formulations) segment, exports grew by 26% and
domestic business grew by 8%. The segmental margins declined to 13% on account
of new initiatives taken by the company which included launch of new domestic
SBU OncoTrust foraying into Rs.800 Crores oncology market in the country.
Key highlights during the Quarter Ended September 30, 2007.
Approvals from WHO
During the current quarter the WHO team visited company’s vaccine
facilities at Delhi and Lalru as part of the pre-qualification process for the
combination vaccines. The WHO pre-qualification for the combination vaccines
Ecovac-4, Easyfour and Easyfive is expected to be received during the current
quarter. The Company expects to begin supply of combination vaccines to
UNICEF/WHO to meet their requirements for international markets with a USD 300
millions potential market.
New Product Launches
Panacea Biotec has launched several new brands during QE 30.09.07,
including:
|
SBU |
Brand |
Launched Month |
Product’s use in
general terms |
|
Procare |
KONDRO ACUTE TABS 10'S |
Sep-07 |
For Osteoarthritis |
|
KONDRO-CERIN CAPS 10'S |
Aug-07 |
|
|
|
KINGCAL 15 TAB |
Jul-07 |
||
|
OD-PEP CAPSULES 10X10 |
Jul-07 |
For GERD & Dyspepsia |
|
|
Growcare |
FREEWAY TABLETS 10'S |
Sep-07 |
For COPD and Anti Asthmatic |
|
THANKGOD - PI CREAM 30G |
Aug-07 |
For Piles Management |
|
|
ZOMONT AL KID Tabs 10's |
Aug-07 |
For Alergic Rhinitis |
|
|
ZOMONT-THEO 400mg 10'S |
Jul-07 |
Anti Asthmatic |
|
|
OncoTrust |
DOCETRUST - 80 - 2ml Vial |
Aug-07 |
Chemotherapeutic agent used in Cancer Management |
|
DOCETRUST-120 - 3ml Vial |
Aug-07 |
||
|
DOCETRUST-20 - 0.5ml Vial |
Aug-07 |
||
|
GEMTRUST - 1000mg Vial |
Sep-07 |
||
|
GEMTRUST - 200mg Vial |
Sep-07 |
||
|
PACLITRUST-100 - 16.67ml Vial |
Aug-07 |
||
|
PACLITRUST-260 - 43.34ml Vial |
Aug-07 |
||
|
PACLITRUST-30 - 5ml Vial |
Aug-07 |
||
|
TEMOTRUST - 100mg Caps |
Sep-07 |
||
|
TEMOTRUST - 20mg Caps |
Sep-07 |
||
|
TEMOTRUST - 250mg Caps |
Sep-07 |
||
|
ZOLETRUST 4mg Vial |
Sep-07 |
Supportive Therapy used for Cancer patients |
New Facilities
The company‘s new Vaccine Formulation Facility at Baddi is successfully
completed and was inaugurated on September 25, 2007. The new facility has a
capacity to manufacture one billion doses of vaccines per annum. The Tetanus
and Bacterial vaccines bulk production facilities at Lalru, Punjab have also
been successfully completed. The construction work at Mumbai R and D center-
GRAND is also progressing satisfactorily
New Corporate Identity
On our Annual Day, September 25, 2007, we have evolved a new logo for
our corporate identity. The logo has a new tagline- Innovation in support of
life. This has been done to portray an image of a truly world class, innovative
global organization. The exuberant logo in vibrant colors truly represents our goal
to transform ourselves into a company which is young, enthusiastic, ambitious,
committed and aspiring to be global leaders in healthcare. The new Panacea
Biotec logo is a representation of the future endeavors and aspirations of the
Company. Our new identity communicates the vision of being an exemplary
‘pioneer’ and an ‘eternal guide’ to all within the organization and outside. It
reflects the company’s quest for collective ‘innovation’ where leadership,
employee participation, stakeholder expectations coupled with integrity come
together to build a radiant future for all.
About Panacea Biotec
Panacea Biotec is one of India's leading research-based health
management companies with established research, manufacturing and marketing
capabilities. Panacea Biotec is the 2nd largest vaccine producer in
India. Panacea Biotec has been ranked as the 3rd largest
biotechnology Company (ABLE Survey 2007) and is also amongst the top 50
pharmaceutical companies in India. The product portfolio of the Company includes
highly innovative prescription products in important therapeutic areas such as
pain management, diabetes management, renal-disease management,
anti-osteoporosis, anti-tubercular, gastro-intestinal care products and
vaccines. The Company has collaborations and tie-ups with leading national and
international research organizations and corporations. The Company's state of
the art manufacturing facilities for vaccines and pharmaceutical formulations
comply with the US-FDA, UK-MHRA, SA-MCC and WHO-cGMP standards. The Company has
four research and development centers. The Company has around 2800 employees
including over 250 scientists. The Company also has 19 product patents, valid
in more than 60 countries worldwide.
WEBSITE DETAILS:
Subject is India’s highly progressive research
based health management company involved in research, manufacturing and
marketing of branded pharmaceutical formulations, vaccines and natural
products. The product portfolio includes highly innovative prescription
products in important therapeutic areas like pain management, diabetes and
cardiovascular management, renal disease management, osteoporosis management,
anti-tubercular, gastro-intestinal care products and vaccines. The flagship
brands of the company- Willgo
for pain management; Glizid and
Glizid-M for diabetes; Panimun
Bioral and Mycept for kidney transplant occupy leadership positions in
their therapeutic segments. This is in persuit of marketing strategies to
build brands and drive the growth of the company.
The vaccines portfolio consists of oral polio vaccines (type I and type
III), Enivac-HB (Hepatitis B
vaccine), Enivac-HB Safsy, Ecovac-4 (DTwP+Hep B), Easyfour (DTwP+Hib), Easyfive (DTwP+Hep B+Hib). Vaccines in
the offing are- Anthrax, Dengue, Japanese encephalitis and several others.
Subjecthas earned the distinction of being a WHO pre-qualified supplier of oral polio and Hepatitis-B vaccines
and are in the process of obtaining similar pre-qualifications for other
vaccines. Subject is contributing in disease prevention and reducing the
child mortality.
Ardent Research and Development efforts have always been a great
strength of Panacea Biotec. The
main research areas are New Chemical Entities (NCE), New Biological Entities
(NBE) Novel Drug Delivery System (NDDS) based pharmaceutical formulations,
Novel peptides and human monoclonal antibodies and Vaccine development. The
company has developed four
distinguished, ultra modern, state-of-art R and D centers in different
locations, having internal capabilities for constant research, with over 200
highly professional and skilled scientists engaged in various aspects of
research.
Focused research efforts have led to grant of worldwide product patents valid in over 60 countries for
subject. As on March, 2007, the company had filed 490 patent
applications in various parts of the world including India. Of these, 163 have
been granted patent and others are under various stages of examination or publication
by the patent authorities. Some of these countries are USA, U.K., France,
Germany, Italy, Sweden, Denmark, Spain, Finland, Switzerland, The Netherlands,
New Zealand, Mexico, Brazil, Nigeria, Zimbabwe, Australia, South Africa, Japan,
Russia, Canada, Ukraine, Korea and China.
The exclusive products based on patented Drug Delivery System include Panimun Bioral (Cyclosporine), Willgo, ThankGod (for comprehensive management of haemorrohoids), Xeed (anti-tubercular FDC with
innovative Drug Delivery for optimum bioavailability of Rifampicin), Nimulid Safeinject, Nimulid MD, Nimulid Transgel.
Commencing fiscal 2008, the company plans for international marketing of
novel NDDS based pharmaceutical formulation products to the international
markets, like USA, U.K., Germany, France, Latin American countries and Italy through marketing
collaborations and are on the look out for partners for distribution and
marketing.
Subject is the third largest
biotechnology company (as per ABLE Survey, 2006), as well as among the top 50
pharmaceutical companies (as per ORG IMS July 2006) of India. To tap newer
opportunities, Subject has organized its formulation marketing into
four SBUs - PRO, Diacar, GROW and Critical Care, which enables it
to respond to changes in the industry and marketplace. The vaccines are
marketed through Chiron Panacea Vaccines, a 50:50 joint venture with Novartis
Vaccines, U.K
Subject has identified brand building in exports as its thrust area and
it has significant presence in the global markets including the CIS, Africa,
the Middle East and Asia. The company is actively exploring opportunities for
launching as well as licensing out some of their patented products for
manufacture/marketing in developed countries in Europe, North America and Latin America.
Subject has significant collaborations
and joint ventures with leading national and international research
organizations and corporations. With Cambridge
Biostability Limited, U.K., Subject has entered into strategic
collaboration for developing thermo stable vaccines; with National Institute of Immunology,
India for Japanese Encephalitis candidate vaccine, Biotech Consortium India Limited for the development, manufacture
and marketing of Anthrax vaccine,
worldwide. With National Institute of Health,
USA, Subject has entered into an in-licensing arrangement for use of a peptide
based product for generation of hair follicles and hair growth. Subject has
also collaborated with Netherlands
Vaccine Institute for Inactivated Polio Vaccine; NRDC- India for Foot and Mouth Disease vaccine for veterinary use
and Bio Farma-Indonesia for
Measles vaccine.
The company has ultra modern,
state-of-art production facilities at Baddi (Himachal Pradesh), Larlu
(Punjab) and Delhi for manufacturing tablets, capsules (including soft
gelatin), ointments (transgel formulation) liquids, herbal formulations and
vaccines. The facilities are WHO cGMP compliant.
Subject has established a countrywide sales and marketing network in
India through a vibrant sales force of more than 1,000 professionally trained
and highly motivated marketing and sales professionals and efficient logistic
network of 23 sales depots/carrying and forwarding agents all over India to
make its products available at all places and at all times.
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.39.44 |
|
UK Pound |
1 |
Rs.78.73 |
|
Euro |
1 |
Rs.57.69 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|