MIRA INFORM REPORT
|
Report
Date : |
17.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
DR. REDDY’S LABORATORIES LIMITED |
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Registered
Office : |
7-1-27, Ameerpet, Hyderabad – 500 016, Andhra Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date of
Incorporation : |
24.02.1984 |
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Com.
Reg. No.: |
01-4507 |
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CIN
No.: [Company
Identification No.] |
L85195AP1984PLC004507 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
HYDD00080D |
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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 : |
Manufacturers
and Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits. |
RATING & COMMENTS
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MIRA’s
Rating : |
A |
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
90000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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0Comments
: |
Subject is an old, well-established and reputed company
engaged in manufacturing and marketing of pharmaceuticals. The company manufactures wide range of
pharmaceutical products in India and overseas. The company is making satisfactory progress in its business and
profitability. Directors are
well-experienced and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. It can be considered good for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
7-1-27,
Ameerpet, Hyderabad – 500 016, Andhra Pradesh, India |
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Tel.
No.: |
91-40-23731946/23731397/26511723 |
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Fax
No.: |
91-40-23731955/23734504 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
7-1-27, Ameerpet, Hyderabad – 500 016, Andhra Pradesh,
India |
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Tel.
No.: |
91-40-23731946 |
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Fax
No.: |
91-40-23731955 |
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Website
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Plants
(In India) : |
Bulk Drugs – I, II, III and IV Plot Nos.
137, 138 & 146, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh Plot Nos.
110 & 111, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh Plot Nos.
116, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh Plot No.
9/A, Phase III, IDA Jeedimetla Ranga Reddy District – 500 055, Andhra Pradesh
Bulk Drugs – V Peddadevulapally,
Tripuraram Mandal, Nalgonda District – 508207, Andhra Pradesh, India Bulk Drugs – VI IDA Pydibheemavaram, Ransthal Mandal, Srikakulam District – 532409,
Andhra Pradesh Bulk Drugs - IX IDA Pydibheemavaram, Ransthal
Mandal, Srikakularrf Dist, AP 532 409 Formulations I – IDA Bollaram Jinnaram Mandal,
Medak District – 502320, Andhra Pradesh, India II- Survey No. 42, Bachupally
Quthbullapur Mandal, Ranga Reddy District – 500123, Andhra Pradesh, India III – R S No. 63/3 and 63/4,
Thiruvandarkoil Mannvipet, Pondicherry – 605102, Tamil Nadu, India IV – Ward – F, Block –4, Adavipolam,
Yanam, Pondicherry – 533465, Tamil Nadu, India V – Plot No. A-3 to A-6, Phase 1-A,
Verna Industiral Estate, Verna, Goa – 403722 VI – Khol, Nalagarh, Solan, Nalagarh
Road, Baddi – 173205, Himachal Pradesh Generics Survey
No. 41, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500043, Andhra
Pradesh, India Boitech/Critical Care/Diagnostics Survey No.47, Bachupally Quthbullapur Mandal, Ranga Reddy District –
500043, Andhra Pradesh, India Custom Chemical Services/Discovery
Research Bollaram
Road, Miyapure, Hyderabad – 500050, Andhra Pradesh, India |
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Plants
(Outside India) : |
Riverview
Road, Beverly, East Yorkshire, HU 17 Old United Kingdom Huangpujiangzhonglu
Kunshan Economic and Technologica Development Zone, Jiangsu Province, China 208-214,
York Road, Battersea, London, SW 11-3SD, United Kingdom |
DIRECTORS
|
Dr. K.
Anji Reddy |
Executive Chairman |
|
Mr. G. V.
Prasad |
Executive Vice-Chairman & Chief Executive
Officer |
|
Mr.
Satish Reddy |
Managing Director & Chief Operating Officer |
|
Dr. P.
Satyanarayana Rao |
Director |
|
Dr. V. Mohan |
Director |
|
Dr. Omkar
Goswami |
Director |
|
Mr. Ravi
Bhoothalingam |
Director |
|
Mr. P. N.
Devarajan |
Director |
|
Dr. A.
Venkateswarlu |
Director |
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Mr.
Krishna G. Palepu |
Additional Director |
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Mr.
Anupam Puri |
Non – Executive Director |
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OTHER PERSONNEL:-
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Mr.
Santosh Kumar Nair |
Company Secretary |
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MANAGEMENT
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Dr. K.
Anij Reddy |
Executive Director |
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Mr. G. V.
Prasad |
Executive Vice Chairman & CEO |
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Mr. K.
Satish Reddy |
Managing Director and Chief Operation Officer |
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Mr. V. S.
Vasudevan |
Chief Financial Officer |
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Dr. R.
Rajagopalan |
President |
|
Mr. Arun
Sawhney |
President |
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Mr.
Abhijit Mukherjee |
President |
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Mr. K. B.
Sankara Rao |
Executive Vice President |
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Mr.
Saumen Chakraborthy |
Executive Vice President |
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Mr. S.
Venkatraman |
Senior Vice President |
|
Mr. Vilas
M. Dholye |
Senior Vice President |
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Mr.
Ashwani Kumar Malhotra |
Senior Vice President |
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Mr. C. V.
Narayana Rao |
Vice President |
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Mr.
Ranjan Chakraborthy |
Vice President |
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Dr. N. R.
Srinivas |
Vice President |
|
Dr. Javed
Iqbal |
Distinguish Research Scientist |
|
Mr.
Jaspal Singh Bajwa |
President |
|
Dr.
Jayaram Chigurupati |
Executive Vice President |
|
Dr. G. Om
Reddy |
Senior Vice President |
|
Mr. B. R.
Reddy |
Senior Vice President |
|
MR.
Arvind Vasudeva |
Vice President |
|
Dr. M.
Satyanarayana Reddy |
Vice President |
|
Dr. R.
Buchi Reddy |
General Manager |
KEY EXECUTIVES
|
Name |
Mr. K. Satish Reddy |
|
Designation |
Managing Director & Chief Operating Officer |
|
Age |
33 years |
|
Qualification |
B. Tech., M. S. |
|
Experience |
9 years |
|
Date
of Joining |
18th January, 1993 |
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Previous
Employment |
Director – Globe Organics Limited |
|
Other
Directorships |
1.
Diana Hotels Limited 2.
DRL Investments Limited 3.
Compact Electric Limited 4.
Cheminor Investments Limited |
|
Name |
Dr. K. Anji Reddy |
|
Designation |
Executive Chairman |
|
Age |
61 years |
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Qualification |
B. Sc. (Tech.), Ph. D. |
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Experience |
31 years |
|
Date of
Joining |
1st September, 1986 |
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Previous
Employment |
Managing Director – Standard Organics Limited |
|
Other
Directorships |
1.
Diana Hotels Limited 2.
ICICI Venture Funds 3.
Deccan Hospitals Corporation Limited 4.
Biotech Consortium India Limited 5.
Viral Therapeutic, Inc. |
Brief Profile of Dr. K. Anji Reddy:
He is the founder and the Executive Chairman of Dr. Reddy’s
Laboratories Limited. He is also the founder of the Dr. Reddy’s Group, Dr.
Reddy’s Research Foundation and Dr. Reddy’s Foundation for Human and Social
Development. He is the chairman of the Academy of Human Resources Development
and chairman of the Research and Development Committee of the Federation of
Indian Chamber of Commerce and Industry (FICCI). He is a member of both the
Board of Trade and the Task Force on pharmaceuticals and knowledge-based
industries, which was instituted by the Prime Minister. He has been recently
honoured with the Padmashree by the Government of India, for his distinguished
service in the field of trade and commerce.
MAJOR SHAREHOLDERS
Category |
No. of shares |
% of shareholding |
promoters' holdings
|
|
|
|
Individuals
|
2232542 |
2.91 |
|
Companies
|
18893245 |
24.64 |
|
Sub Total |
21125787 |
27.55 |
|
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|
Indian
Financial Institutions |
5536530 |
7.22 |
|
Banks |
24750 |
0.03 |
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Mutual funds
|
1679347 |
2.19 |
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Foreign Holdings |
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Foreign
Institutional Investors |
21829357 |
28.46 |
|
NRIs |
1711228 |
2.23 |
|
American Depository Receipts |
15441327 |
20.13 |
|
Overseas Corporate Bodies |
1000 |
0.00 |
|
Sub Total |
38982912 |
50.82 |
|
|
|
|
|
Indian Public and Corporate |
9345244 |
12.19 |
|
Grand Total |
76694570 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers and Sellers of Bulk Drugs, Formulations and
Diagnostic Reagents and Kits. |
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Products
: |
Item Code No. [ITC Code] 29419003 Product Description Ciprofloxacin Hydrochloride Item Code No. [ITC Code] 29420001 Product Description Norfloxacin Item Code No. [ITC Code] 30049038 Product Description Omerprazole |
PRODUCTION STATUS
|
Class of Goods |
Unit |
Actual Production |
|
Formulations |
Million
Units |
2816 |
|
Active Pharmaceutical ingredients and
intermediates [API] |
Tones |
3101 |
|
Generics |
Million
Units |
1939.48 |
|
Biotechnology – on single shift basis |
Grams |
73 |
|
Custom Pharmaceutical Services |
Kilograms |
219200 |
GENERAL INFORMATION
|
No. of
Employees : |
1449 |
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Bankers
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
Bharat S.
Raut & Company Chartered
Accountants |
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Associates
: |
Pathnet
India Private Limited Aurantis
Farmaceutica Ltda Compact
Electric Limited APR LLC Standard
Organics Limited Dr.
Reddy’s Exports Limited Sol
Pharmaceuticals Limited |
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Subsidiaries
: |
OOO JV
Reddy Biomed Limited, Russia Reddy
Pharmaceuticals Hong Kong Limited, Hong Kong Dr.
Reddy’s Laboratories Inc., USA Reddy’s
Cheminor S.A., France Reddy
Antilles N.V. Aurigene
Discovery Technologies Limited, India Dr.
Reddy’s Laboratories {EU} Limited, UK [Formerly known as BMS Laboratories
Limited, UK] Dr.
Reddy’s Laboratories {EU} Limited, UK [Formerly known as Meridian Healthcare,
UK] Chemnior
Investments Limited, India DRL
Investments Limited, India OOO Dr.
Reddy’s Laboratories Limited Dr.
Reddy’s Laboratories [Proprietory] Limited, South Africa Dr.
Reddy’s Biosciences Limited Reddy
Netherlands B.V. , Netherlands Reddy
Pharmaceuticals Singapore Pte. Limited, Singapore Reddy US
Therapeutics Inc., USA AMPNH
Inc. Zenovus
Biotech Private Limited, India Compact
Electric Limited, India Dr.
Reddy’s Pharmaceutical Do Brasil LTDA Kunshan
Rotam Reddy Pharmaceutical Company Limited Globe
Enterprises [a partnership firm in India] BMU
Laboratories Limited Meridian
Healthcare (U.K.) Limited |
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Membership
: |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
100000000 |
Equity
Shares |
Rs. 5/- each |
Rs. 500.000 millions |
Issued
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
76694770 |
Equity
Shares |
Rs. 5/- each |
Rs. 383.473 millions |
Subscribed
& Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
76694570 |
Equity
Shares |
Rs. 5/- each |
Rs. 383.472 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
383.473 |
382.600 |
382.595 |
|
2] Reserves & Surplus |
22237.944 |
20358.200 |
20087.566 |
|
NETWORTH |
22621.417 |
20740.800 |
20470.161 |
|
|
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|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
1451.285 |
32.700 |
356.379 |
|
2] Unsecured Loans |
7787.410 |
2699.700 |
225.846 |
TOTAL BORROWING
|
9238.695 |
2732.400 |
582.225 |
|
DEFERRED TAX LIABILITIES |
530.847 |
0.000 |
422.582 |
|
|
|
|
|
GRAND
TOTAL
|
32390.959 |
23473.200 |
21474.968 |
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5618.151 |
5625.400 |
4580.983 |
|
Capital work-in-progress |
1129.160 |
601.300 |
1052.469 |
|
|
|
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|
|
INVESTMENTS |
8217.937 |
3584.600 |
6120.511 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
4430.968 |
3038.100 |
2580.110 |
|
Sundry Debtors |
5812.160 |
4176.400 |
4440.462 |
|
Cash & Bank Balances |
6509.429 |
8917.200 |
4080.832 |
|
Loans & Advances |
6776.456 |
2679.000 |
2114.856 |
|
Total Current Assets |
23529.013 |
18810.700 |
13216.260 |
|
Less : |
|
|
|
|
Current Liabilities |
5532.648 |
4515.000 |
2913.942 |
Provisions
|
570.654 |
633.800 |
581.313 |
Total Current Liabilities
|
6103.302 |
5148.800 |
3495.255 |
|
Net
Current Assets |
17425.711 |
13661.900 |
9721.005 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
GRAND
TOTAL
|
32390.959 |
23473.200 |
21474.968 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
21365.711 |
17299.700 |
17423.711 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2637.646 |
443.600 |
3033.438 |
|
Provision for Taxation |
526.407 |
(211.000) |
201.475 |
|
Profit/(Loss) After Tax |
2111.239 |
654.600 |
2831.960 |
|
|
|
|
|
|
Export Value |
12100.041 |
9197.355 |
9854.318 |
|
|
|
|
|
Import Value
|
2744.535 |
2282.872 |
2186.677 |
|
|
|
|
|
Total Expenditure
|
18.728 |
16424.100 |
14390.273 |
QUARTERLY RESULTS
|
Particulars |
|
|
30.06.2006 [1st Qtr.] |
|
Sales Turnover |
|
|
7433.800 |
|
Other Income |
|
|
282.900 |
|
Total Income |
|
|
7716.700 |
|
Total Expenditure |
|
|
5822.500 |
|
Operating Profit |
|
|
1894.200 |
|
Interest |
|
|
132.400 |
|
Gross Profit |
|
|
1761.800 |
|
Depreciation |
|
|
315.400 |
|
Tax |
|
|
79.500 |
|
Reported PAT |
|
|
1318.100 |
Notes
200606
Quarter 1
Expenditure Includes Increase in Stock Rs.
(118.80) million Material Consumed Rs. 2756.30 million Excise Duty Rs. 5.10
million Research & development expenses Rs. 582.00 million Personnel Costs
Rs. 615.00 million Selling Expenses Rs. 748.20 million Other Expenditure Rs. 1239.80
million Tax Includes Provision for Current Tax Rs. 65.00 million Deferred Tax
expenses / (benefit) Rs. 48.80 million Fringe Benefit Tax Rs. 14.50 million EPS
is Basic Status of Investor Complaints for the quarter ended June 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 06 Complaints disposed off during the quarter 06 Complaints
unresolved at the end of the quarter Nil 1. On May 19, 2006 the Company through
its wholly owned subsidiary Reddy Pharma Iberia, S.A., acquired marketing
authorizations of the pharmaceutical specialties, marketing authorization
applications and a trademark along will physical inventories of the related
products from Laboratories Litaphar. S.A. (Litaphar) for total consideration of
Rs. 218.90 million This has been accounted as acquisition of intangibles and
inventories. 2. During the quarter ended June 30, 2006 the Company received a
license fee of Rs. 350.90 million from an overseas subsidiary in connection
with sale at certain products. 3. Mr V.S. Vasudevan, the present President and
CPO will be moving as Head of Europe region w.e.f. July 29, 2006. Consequently,
Mr. Sauman Chakraborty, currently Executive Vice President and Global Chief of
HR. IT and Business Process Excellence, will take over as CFO from, July 29,
2006. 4. In view of Accounting Standard (AS) 15 (revised 2005) Employee
Benefits, issued by The Institute of the Charted Accountants of India which is
applicable w. e. f. April 01, 2006, an additional one-time provision against
compensated absences amounting Rs. 85.70 million (net of deferred tax asset of
Rs. 43.40 million) up to March 31, 2006 has been charged to the opening balance
of revenue reserves during quarter ended June 30, 2006. 5. The figures for the
previous periods have been re-grouped /reclassified, wherever necessary, to
conform with the current period classification. 6. The above results have beet,
taken on record by the Board of Directors of the Company at its meeting held on
July 27, 2006
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.28 |
0.08 |
0.02 |
|
Long Term Debt Equity Ratio |
0.04 |
0.01 |
0.01 |
|
Current Ratio |
1.85 |
2.64 |
3.73 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.05 |
1.79 |
2.33 |
|
Inventory |
5.64 |
5.79 |
6.99 |
|
Debtors |
4.21 |
3.78 |
3.97 |
|
Interest Cover Ratio |
10.39 |
4.48 |
72.71 |
|
Operating Profit Margin (%) |
17.44 |
9.19 |
21.80 |
|
Profit Before Interest and Tax Margin (%) |
12.15 |
3.51 |
17.67 |
|
Cash Profit Margin (%) |
14.12 |
9.71 |
20.40 |
|
Adjusted Net Profit Margin (%) |
8.83 |
4.02 |
16.27 |
|
Return on Capital Employed (%) |
9.24 |
2.56 |
15.61 |
|
Return on Net Worth (%) |
8.57 |
3.18 |
14.70 |
STOCK PRICES
|
Face Value |
Rs. 5/- |
|
High |
Rs. 722.00/- |
|
Low |
Rs. 716.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on 24th February
1984 as a Private Limited Liability Company at Hyderabad in Andhra Pradesh
having Company Registration Number 4507 and was converted into a Public Limited
Liability Company on 2nd November 1985.
Subject
is a leading Indian pharmaceutical company with vertically integrated
operations. The company develops, manufactures and markets a wide range of
pharmaceutical products in India and overseas. It produces finished dosage
forms, active pharmaceutical ingredients, diagnostic kits, critical care and
biotechnology products. The company has over 190 finished dosage brands and 60
active pharmaceutical ingredients currently in production.
The company actively pursues a basic research programme
under the aegis of Dr. Reddy’s Research Foundation (DRF). DRF focuses on
cancer, diabetes, bacterial infections and pain management. The company has
several pharmaceutical products in development, three of which are in clinical
trials and two had completed pre-clinical testing.
The merger with Cheminor Drugs (the swap ratio at nine
shares of company for 25 shares of Cheminor), had made DRL the third largest
pharmaceutical company in India with participation in every element of the
value chain. DRL is a major player in the domestic finished dosages market and
many of its brands are leaders. The company has a formidable presence in the
highly regulated markets of the U.S.A., the Europe and Japan and it exports
its’ products to 60 countries.
The company has two US-FDA approved plants. It has been
exporting its products to the UK, Switzerland, Germany, Spain, Italy and The
Netherlands. It also started exporting its formulations in a big way to Russia
and has set up an office there. DRL has signed a joint venture agreement with
the Khetan Group, Nepal, for setting up a joint venture for the manufacture and
marketing of finished formulations in Nepal and other neighbouring countries.
It also signed a marketing and distribution agreement with Organics, Israel,
for a wide range of sophisticated diagnostic kits. The products are recognized
by World Health Organization and other leading organizations in the healthcare
industry.
In May 2002, DRL has completed phase I clinical trials on
its anti-cancer compound DRF-1042. This
is company’s first new chemical entity (NCE) in the cancer area.
The company issued 4,301,076 GDSs representing 4,301,076
equity shares of the company, par value Rs.10 ("Shares"), in a
private placement in 1994 pursuant to Regulation S and Rule 144A under the
Securities Act of 1933 (the "Securities Act"). The GDSs are listed on the Luxembourg Stock
Exchange and each GDS represents one Share. As of May 4, 2001, there were
1,789,285 GDSs outstanding representing 1789285 Shares.
The company entered the global generic market with exports of Ranitidine-75 mg
and Fluoxetine to North America.
The company has entered into an exclusive co-marketing and development
agreement with Par Pharmaceuticals Inc. covering fourteen generic
pharmaceutical products. This will strengthen the company's position in the US
generic market and it will get a substantial cost advantage on account of its
vertical integration capabilities. The company unveiled its new corporate
identity and philosophy - "Life, Research, Hope"- reinforcing its
commitment of bringing hope to life through research. Its new identity also
highlights the company's ethos - a caring organisation that leverages its
expertise in research for a healthier life.
In April 2001, as a first step towards taking its molecules
through clinical development on its own, the company had selected Simbec
Research Limited, a well-known U.K.-based Clinical Research Organization (CRO),
for conducting clinical trials of DRF 4832. DRF 4832 was a PPAR against for
treatment of cardiovascular complications.
In April 2001, the company began trading on the New York
Stock Exchange (code : RDY). The price to the public per ADS was $ 10.04. Total
amount raised (net) was $ 124 million.
In May 2001, Novartis Pharma AG and the company announced
that they had entered a licensing agreement for a novel anti-diabetes agent.
Under terms of the agreement, the company will grant Novartis worldwide
exclusive right to development and commercialization of their insulin
sensitizer DRF 4158 in type 2 diabetes,
in return for up to USD 55 million in upfront and milestone payments for
specific clinical and regulatory end points, as well as royalties. The Company
would have co-promotion rights for DRF 4158 in India. The agreement has
received US regulatory clearance and had become effective from July 30, 2001.
This event had triggered an upfront payment of 5 millions US$ from Novarties.
The company had received this payment.
In May 2002, DRL has completed phase I clinical trials on
its anti-cancer compound DRF-1042. This is companies first new chemical entity
(NCE) in the cancer area. With the approval of Shareholders the Face value of
the company shares has been reduced to Rs.5 per share . The Scheme of merger
with erstwhile American Remedies Ltd was fully completed and shares were
exchanged for one share of the company for every 12 shares in erstwhile
ARL.
In April 2004 the company has launched Redotil, the first anti-hypersecretory
agent for the management of acute diarrhea and the first Dutas for the
treatment of enlarged prostate, which is a oral treatment, in India.
During September 2005 the company has planned about the formation of India's
first integrated drug development company Perlecan Pharma Private Limited with
the equity capital commitment of USD 52.5 Million from India's leading Captial
Ventures.
In the year 2005 the company has entered into a partnership with ICICI Venture
Funds Management Company for commericalization of the company's US ANDAs in the
generics business. The company has acquired Trigenesis Therapeutics, Inc., a US
based R&D company which is privately owned dermatology in April 2004. The
company has also entered into a multi-product agreement with Pharma-science
Group for the development and marketing of generic products in Canada. Also the
company has alliance with a biotechnology company for the development of a
bio-generics portfolio.
The company has increased its installed capacity of Biotechnology by 30 Grams
and with this the total installed capacity of Biotechnology has increased to
370 Grams.
In 2006, The company involved de-bottlenecking of existing capacities and
adding new lines, especially to meet growing international demand for generics
and customs pharmaceuticals services. During the year company has made two
major acquisitions. The first was the purchase of Roche's API Business, its
order-book and its manufacturing plant at Cuernavaca in Mexico. The another
acquisition was that a betapharm, Germany.
The company’s 9 products were awaiting USFDA approval with
brand market value of US$ 10.4 billion and it plans to file 11 ANDAs in FY 02
with brand market value of $ 8.9 billion. In May 2002, The company has
completed phase I clinical trials on its anti-cancer compound DRF-1042. This
was companies first new chemical entity (NCE) in the cancer area.
With the approval of shareholders the face value of the
company shares has been reduced to Rs. 5/- per share. The scheme of merger with
erstwhile American Remedies Limited was fully completed and shares were
exchanged for one share of the company for every 12 shares in erstwhile ARL.
The company has expanded the installed capacity of
formulations, bulk drugs and generics during the year 2002-03 by 1.3 million
units, 546 tonnes and 1950 million (units), respectively. With this expansion the total capacity had
been risen to 2137.3 million (units), 3859 tonnes, 5550 million (units)
respectively.
The year 2003 was significant to the company as it was
poured by Awards. The company has got
many awards during the year which includes the National Award for best
presented accounts in Annual Reports for the financial year 2001-02 from ICAI.
The company has expanded the installed capacity of
Formulations and Bulk Drugs during the year 2003-04 by 669650000 (Nos) and 209
Tonnes respectively. Consequent of this expansion the total capacity has risen
to 2806950000 (Nos) in respect of Formulations and 4068 Tonnes in respect of
Bulk Drugs.
SHARE CAPITAL
The paid up Share Capital of the company increased by Rs. 878105 in the
financial year ended March 31, 2006, due to exercise of Stock Options by the
eligible employees under Dr. Reddy's Stock Option Scheme, 2002.
The Board of Directors have recommended issue of bonus shares to the
shareholders in the ratio of 1:1 (one equity share for each equity share held)
for all existing shares including American Depository Shares on the record date
to be fixed by the Board.
OVERVIEW
2005-06 has been a momentous- indeed defining - year for Dr. Reddy's
Laboratories (Dr. Reddy's' or 'the company). To understand why, it is necessary
to touch upon the situation of the company a year earlier, at the end of
2004-05. 2004-05 was probably the most challenging year in the history of Dr.
Reddy's. Due to severe pricing pressure on its Generics business, consolidated
revenues had declined year-on-year by 3 percent to Rs.19519 million. Post-tax
profit fell by almost 91 percent to Rs. 211 million. Instead of concentrating
only on cutting costs, Dr. Reddy's decided to re-commit its strategies and
organizational architecture to aggressively growing all its businesses and
increasing profitability. In the course of 2005-06, the Company significantly
de-risked its drug discovery process by forming an integrated drug development
Company called Perlecan Pharma Private Limited with Citigroup Venture and ICICI
Venture. It acquired Roche's API business, its order-book and its U.S.
FDA-approved manufacturing plant at Cuernavaca in Mexico, with a portfolio of
18 products as well as a range of intermediates and steroids. Thereafter, it
acquired betapharm, Germany's fourth largest generics pharmaceuticals Company,
with a portfolio of 145 marketed products. All this was carried out even as the
Company actively pushed the sale of its pharmaceutical products throughout the
world to grow revenues and profits, while creating a more robust API and
generics pipeline for the future. These and other initiatives have resulted in
a rebound in growth and profitability. The Company crossed the historical
milestone of U.S.$500 million in revenues. Simultaneously, the Company
whole-heartedly focused on having its internal controls over financial
reporting in line with the stringent requirements of Section 404 of the U.S.
Sarbanes-Oxley ('SOX') Act. The objective was to complete this task well before
the mandatory deadline of March 31, 2007 for foreign US Securities and Exchange
Commission ('SEC') registrants, such as Dr. Reddy's. We are delighted to inform
you that, thanks to the unremitting efforts of the various cross-functional
teams, Dr. Reddy's is now compliant with Section 404 of the U.S. Sarbanes Oxley
Act. That makes Dr. Reddy's the first manufacturing Company in India, and one
of the earliest foreign filers, to become SOX compliant - testimony to the
strong internal controls over financial reporting and corporate governance
standards and practices of the Company. Given below are some key financial
highlights: * Revenues increased by 24.3 percent from Rs. 19519 million in
2004-05 to Rs. 24267 million in 2005-06.
* Profits after tax increased from Rs. 211 million in 2004-05 to Rs. 1629
million in 2005-06.
* Earnings per share on a fully diluted basis rose from Rs. 2.76 in the
previous year to Rs. 21.24 in 2005-06.
While these are discussed in detail in the sections that follow, the drivers of
performance in 2005-06 were:
* Well-diversified revenue growth of 17 percent (excluding acquisitions)
across key markets and for key product segments, which demonstrated the
strength of the Company's underlying businesses.
* Initiatives to de-risk R&D investments - specifically, the initiatives
with ICICI Venture Funds Management Company towards the product development for
U.S. Generics and co-promotion of Perlecan Pharma for Discovery Research.
* Decrease in foreign exchange loss compared to 2004-05.
* One-time income from the profit on the sale of the Company's formulations
manufacturing facility at Goa.
Briefly, the revenue growth for each of the key businesses in 2005-06 was
:
a) API : 19 percent growth to Rs. 8238 million, mainly due to a better
combination of products and markets.
b) FORMULATIONS : 27 percent growth to Rs. 9926 million, led by excellent
performance across markets, particularly India, Russia and the CIS
countries.
c) GENERICS BUSINESS (excluding acquisition): Grew by 28 percent in Europe.
However, because of heavy pricing pressure, revenues in North America, declined
by 27 percent to Rs. 1631 million.
d) CUSTOMS PHARMACEUTICAL SERVICES (CPS): Excluding acquisition, the CPS
business grew by 68 percent to Rs. 523 million in 2005-06.
e) ACQUISITIONS: The Company's acquisitions in Mexico and Germany contributed
to Rs. 1509 million to the revenues of 2005-06.
In the following sections, we discuss acquisitions, markets, business-wise
revenues, R & D and financials in greater detail.
ACQUISITIONS
Dr. Reddy's had realized that in order to rapidly grow its businesses it had to
focus on acquisitions. Fortunately, the Company had a strong balance sheet with
the value of cash and cash equivalents to the tune of U.S$ 209 million and
hardly any long-term debt as on March 31, 2005. It therefore had the financial
strength to make major acquisitions. Two significant ones were concluded in
2005-06.
* The first was the purchase of Roche's API business, its order-book and
its manufacturing plant at Cuernavaca in Mexico at an investment of U.S$ 61
million. The plant, approved by the U.S. FDA and other international regulatory
agencies, employs around 240 people, with the current portfolio comprising 18
products including mature APIs as well as a range of intermediates and
steroids.
* The second acquisition during the year was that of betapharm, Gemany's
fourth largest generics pharmaceuticals Company. Dr. Reddy's entirely bought
out betapharm in an all cash deal for approximately Euro 483 million. The
Company currently has a portfolio of 145 marketed products; employs 370 people
with a dedicated revenues force of 250; and achieved a turnover of Euro 164
million in 2005. betapharm gives Dr. Reddy's access to a broad portfolio and a
strong foothold in the large German generics market.
MARKETS
GLOBAL TRENDS
In 2005, global pharmaceutical revenues was estimated at U.S.$602 billion. In
the ten major markets that account for 81 percent of the total global revenues,
the average growth was 6 percent in 2005, compared with 7 percent the previous
year. However, emerging markets - including China, Korea, Mexico, Russia and
Turkey-experienced double-digit growth and, by consistently out-pacing global
performance, have begun to signal important shifts in the market place. With
improving patient access to prescription drugs, the emerging markets of Asia,
Latin America and Eastern Europe have gained in strength. Global growth in
pharmaceutical revenues was driven by increased longevity of the populations,
rising wealth, innovative new products, and new applications for existing
products. In 2005 alone, 40 percent of total market growth was fuelled by the
introduction of new products, including 30 new molecular entities launched in
key markets. North America, which accounts for 47 percent of global
pharmaceutical revenues, grew 5 percent, to U.S$ 266 billion, while Europe
experienced somewhat higher growth of 7 percent, to U.S$ 170 billion. Japan,
the world's second largest market and one which had been posting slower growth
rates, performed strongly in 2005 - growing 7 percent to U.S$ 60 billion, its
highest year-on-year growth since 1991. Revenues in Latin America grew at an
exceptional rate of 19 percent to U.S$ 24 billion, while Asia Pacific
(excluding Japan) and Africa grew 11 percent to U.S$ 46 billion. China
continued showing spectacular growth - of 20 percent to almost U.S$ 12 billion
in 2005. This is the third consecutive year that China has achieved over 20
percent growth. In fact, IMS estimates that China will be the world's seventh
largest pharmaceutical market by 2009.
The number of blockbuster products (those with revenues exceeding U.S.$1
billion per year) reached 94 in 2005, vis-a-vis just 36 in 2000. These included
17 new members of the billion-dollar club. While six blockbusters are expected
to lose their patents in 2006, the launch of new products and continued growth
of those already on the market will result in an increasing number of
blockbusters over the next five years.
TRENDS IN INDIA
With 2005 witnessing the advent of the product patent regime, both MNCs and
Indian pharmaceutical companies have begun to adapt their strategies. The MNCs
are now preparing to bring in their research molecules to the country to
leverage India's strength of knowledge workers, while Indian companies are
trying to focus on developing brands and exploring in-licensing and marketing
alliances.
In 2005, the Indian pharmaceutical market grew by 7 percent in volume and 9
percent in value to Rs.230 billion. New product launches contributed to almost
90 percent of this 9 percent value growth. All the top-10 new products crossed
the milestone revenues figure of Rs.100 million. Overall growth, however,
occurred more in the second half of the year compared to first half when it was
affected by the uncertainty over the impact of implementation of the VAT
regime. Some of the key trends in the market during 2005 were:
* Revenue of acute therapy products grew by 8 percent in 2005 compared to 6
percent in 2004. Chronic therapy revenues grew by 11 percent in 2005 - in line
with the 2004 growth rate.
* Except pain and cardiac therapeutic segments, most therapy areas observed
higher growth in 2005 compared to 2004.
* Share of the top 10 companies declined from 38 percent of the Indian market
in 2003 to 36 percent in 2005. indicating higher market penetration by the
mid-sized and smaller pharmaceutical companies.
DR. REDDY'S MARKET PERFORMANCE
REVENUES
Revenues increased by almost 24 percent to Rs. 24267 million in 2005-06. This
was primarily due to increase in revenues of APIs, Formulations, Generics in
Europe, as well as the revenue contribution from Mexico (with effect from
December 30, 2005) and Germany (from March 3, 2006). Excluding the two
acquisitions, revenues grew by 17 percent.
India contributed 34 percent of total revenues in 2005-06. International
operations accounted for the remaining 66 percent, which was distributed as
follows:
* 16 percent of total revenues from North America (United States and
Canada).
* 15 percent from Russia and other countries in the Common wealth of
Independent States ('CIS').
* 18 percent from Europe, and 17 percent from other countries.
* Revenues from Europe increased by 51 percent
to Rs. 4326 million in 2005-06, primarily on account of the Company's growing
revenues of Generics, APIs and Formulations. This revenue includes Rs. 686
million from betapharm, which as acquired in March 2006.
* Revenues from North America decreased by 8 percent to Rs. 3984 million in
2005-06, largely because of severe pricing pressure in Generics and lower
revenues in API.
* Revenues from India increased by 24 percent to Rs. 8272 million in
2005-06, thanks to significantly better performance in the performance by
business under U.S.GAAP.
ACTIVE PHARMACEUTICAL INGREDIENTS AND INTERMEDIATES ('API')
In 2005-06, revenue from API increased by 19 percent to Rs. 8238 million, with
international revenues accounting for 72 percent of this segment's revenue.
International revenues grew by 20 percent to Rs. 5942 million in 2005-06.
Several markets showed high growth. For instance, revenues from Europe grew by
30 percent primarily due to key product such as terbinafine, montelukast and
sertraline, which more than offset the decline in revenues of ramipril due to
pricing pressure. The Company performed very well in emerging markets,
especially in Israel, Turkey and Mexico. Robust growth in other international
markets more than offset the decline in North American revenues, which fell by
11 percent to Rs. 1654 million in 2005-06 - largely because of the lack of
significant new product launches coupled with revenues decline in the existing
portfolio. Revenues from India grew by 16 percent to Rs. 2296 million in
2005-06. Ciprofloxacin, sparfloxacin and ranitidine drove this growth.
It is in trade terms
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The
company’s fixed assets of important value include Land, Factory Buildings,
Leasehold Buildings, Plant & Machinery, Electrical Equipments, Laboratory
Equipments, Furniture & Fixtures, Patents & Trademarks, Vehicles and
Library.
PRESS RELEASES:
Hyderabad, India and
Windsor, United Kingdom, September 27, 2006
DR. REDDY'S
AND CLINTEC INTERNATIONAL ANNOUNCE
CO-DEVELOPMENT OF ANTI-CANCER COMPOUND DRF 1042
Hyderabad, India and Windsor, United Kingdom, September 27, 2006: Dr. Reddy’s
Laboratories (NYSE: RDY) and ClinTec International announced today that they
have entered into an agreement for the joint development of an anti-cancer
compound, DRF 1042, belonging to the Topoisomerase inhibitors class of
compounds for use as potential treatment of various types of cancer.
Dr. Reddy’s has completed Phase I clinical trials for DRF
1042 in India. Under the terms of the agreement, Dr. Reddy’s and ClinTec
International will co-develop DRF 1042; undertaking Phase II and Phase III
clinical trials, with the aim of securing USFDA and EMEA approvals.
Under the terms of the agreement, Dr. Reddy’s retains the
commercialization rights for the U.S. and rest of the world markets (excluding
ClinTec International territories). ClinTec International will be granted the
commercialization rights for most of Europe including major European markets.
On commercialization of the product, Dr. Reddy’s will
receive royalty on sales by ClinTec International in its designated territories
and ClinTec International will receive royalty on sales by Dr. Reddy’s in the
U.S. In the event, either party out-licenses the drug product, the proceeds
from such an arrangement will be shared by both the parties in a pre-determined
ratio (excluding Dr. Reddy’s territories outside the US). Dr. Reddy’s will also
retain the exclusive rights to supply commercial quantities of the drug
product.
The financial terms of the agreement have not been
disclosed.
Commenting on the co-development and commercialization deal,
GV Prasad, Chief Executive Officer, Dr. Reddy’s Laboratories, said, “We are
excited about the R&D collaboration with ClinTec International as it will
bring a very exciting cancer drug to the market and is a step forward in their
efforts to transform ourselves into a discovery led global pharmaceutical
company. ClinTec International brings to this partnership their vast experience
and in-depth expertise in the anti-cancer clinical development space.
They look
forward to this exciting collaboration with ClinTec International.”
Dr. Rabinder Buttar, President & CEO of ClinTec
International, added, “They are delighted to be working with Dr Reddy’s, which
has a strong reputation in the global pharmaceutical industry. They are
impressed with the quality and commitment of Dr. Reddy’s clinical research
staff with whom they have worked for sometime and they are proud to build on
their existing relationship with this company. They are also proud that ClinTec
International’s expertise and experience in clinical drug development has been
recognized by Dr Reddy’s and they look forward to a mutually beneficial long
term collaboration.”
About
ClinTec International
ClinTec International is a privately owned full service
global clinical research organization, which was founded in 1997 by Dr Rabinder
Buttar, the company’s President & CEO. ClinTec International is
headquartered in Windsor, UK and has a presence in more than 30 countries
covering most of Europe, Middle East, North and South Africa and India. As well
as working in the oncology field, ClinTec International has conducted over 100
clinical trials in many other therapeutic areas including anti-infective,
cardiology, dermatology, gastroenterology, neurology, oncology, respiratory
medicine and rheumatology. ClinTec International excels in conducting clinical
studies in diverse geographical locations, supported by a team of world class
project managers and clinical research associates. ClinTec International’s
‘fast, flexible and focused’ approach to clinical research ensures an added
advantage to the drug development process.
Dr Reddy’s inaugurates its first Finished
Dosages Facility in Visakhapatnam
Visakhapatnam, September 26, 2006: Dr Reddy’s Laboratories today announced the
inauguration of their first Finished Dosages plant at Visakhapatnam. With a built
up area of 15.7 acres (65,000 sq ft), the plant is ecologically balanced with a
beautiful green belt covering 8 acres of surrounding land. This plant is the
seventh Finished Dosage facility of the company. The last facility was
inaugurated in March, 2006, at Baddi, Himachal Pradesh.
The state of the art plant is specially designed
to manufacture a broad range of products including Cytotoxic and Anti-hormonal
products, and injectibles catering to the international market for the
treatment of cancer, hormonal imbalances & other diseases. The facility is
also designed to cater to the manufacturing needs of international
pharmaceutical companies.
Commenting on the new facility, Satish Reddy,
Managing Director & Chief Operating Officer, Dr. Reddy’s said, “Their
organization’s multi-disciplinary capabilities have enabled our rapid growth in
the pharmaceutical industry. The new facility is benchmarked to the highest
global regulatory standards and is designed to cater to a global market that
requires the most stringent standards of quality. We strongly believe that this
unit will be one of the drivers of quantum growth for Dr. Reddy’s.”
The plant has an in-built capacity-expansion capability, keeping in mind Dr.
Reddy’s product pipeline and global market trends. The plant has a production
capacity of manufacturing 40 million Cytotoxic OSD capsules, 40 million Anti
Hormonal formulations & 7 million injectibles per annum.
Speaking on the occasion, Ashwani Kumar Malhotra, Executive Vice President,
Formulations Technical Operations, Dr. Reddy’s said, “With the setting up of
this new unit, their key focus is to use the most advanced techniques and our
large pool of scientific talent, coupled with superior process R&D skills
for rapid process development. This facility, fully equipped with
state-of-the-art infrastructure, will give us a competitive edge.”
The unit has been designed to handle potent compounds using isolation
technology, with equipment like a fully automated injectible filling line,
single pot processors and wash-in-place tablet presses. The new facility
represents a significant advance in technical sophistication over Dr. Reddy’s
other FTO facilities, of which 3 are located in Hyderabad, 1 in Yanam near
Kakinada and 1 in Baddi, Himachal Pradesh. Its manufacturing facilities have
been inspected by some of the world’s most stringent regulatory authorities,
including USFDA, MHA, MCC, and ANVISA.
December 27 , 2006
DR. REDDY’S ANNOUNCES FINAL APPROVAL OF
ONDANSETRON TABLETS WITH 180-DAYS OF MARKETING EXCLUSIVITY
December 27, 2006, Hyderabad, India: Dr. Reddy’s
Laboratories Limited (NYSE:RDY) announced today, that the U.S. Food and Drug
Administration has granted final approval for the Company's Abbreviated New
Drug Application ("ANDA") for Ondansetron Hydrochloride Tablets, 4
mg, 8mg, 16 mg and 24 mg. As the first company to file an ANDA containing a
paragraph IV certification for this product, Dr. Reddy’s has been awarded a
180-day period of marketing exclusivity. The Company will commence the shipment
of this product shortly.
GV Prasad, Vice-Chairman and CEO of Dr. Reddy’s
commented, "We are obviously pleased with the final approval of our
generic version of Zofran® with 180-days of marketing exclusivity. With six
product introductions to date in the current year, we are making good progress
in building a sustainable base generics business with potential upsides in the
US in the medium term. This reaffirms our commitment to developing one of the
largest pipelines in the U.S. generic industry."
Dr. Reddy’s Ondansetron Hydrochloride Tablets
are the AB-rated generic equivalent of GSK’s Zofran® Tablets, a product
indicated for the prevention of nausea and vomiting associated with cancer
treatment. The brand product has annual IMS sales (June 2006 MAT) of
approximately $639 million.
Today's approval follows an order by the United
States Court Of Appeals for the DC Circuit denying Apotex’s request that the
FDA not approve Dr. Reddy’s generic Zofran® products pending a determination of
its motion for a preliminary injunction.
November 29, 2006, India
DR. REDDY’S ANNOUNCES ISSUANCE OF ADDITIONAL AMERICAN DEPOSITARY SHARES
November 29, 2006, India: Dr. Reddy’s
Laboratories Limited (NYSE:RDY) announced today, the issuance of an additional
1,800,000 American Depositary Shares (“ADS”) to the underwriters at a public
offer price of U.S.$16.00 per ADS pursuant to the exercise of the
over-allotment option that Dr. Reddy’s had granted to the underwriters in a
previously announced offering completed on November 22, 2006. A total of
14,300,000 ADSs have been issued under the offering (including this issuance).
On November 16, 2006, Dr. Reddy’s announced the
pricing of the public offering of 12,500,000 ADSs (excluding the underwriter’s
over-allotment option) at a public offer price of U.S.$ 16.00 per ADS. The
final prospectus supplement was filed with the Securities and Exchange
Commission on November 17, 2006 and the offering was completed on November 22,
2006. The underwriters’ had the option to purchase up to an additional
1,800,000 ADSs within 30 days starting November 22, 2006.
About Dr. Reddy’s
Established in 1984, Dr. Reddy's Laboratories (NYSE: RDY) is an emerging global
pharmaceutical company with proven research capabilities. The Company is vertically
integrated with a presence across the pharmaceutical value chain. It produces
finished dosage forms, active pharmaceutical ingredients and biotechnology
products and markets them globally, with focus on India, US, Europe and Russia.
The Company conducts research in the areas of diabetes, cardiovascular,
anti-infectives, inflammation and cancer.
Disclaimer
This press release includes forward-looking
statements, as defined in the U.S. Private Securities Litigation Reform Act of
1995. We have based these forward-looking statements on our current
expectations and projections about future events. Such statements involve known
and unknown risks, uncertainties and other factors that may cause actual
results to differ materially. Such factors include, but are not limited to,
changes in local and global economic conditions, our ability to successfully
implement our strategy, the market acceptance of and demand for our products,
our growth and expansion, technological change and our exposure to market risks.
By their nature, these expectations and projections are only estimates and
could be materially different from actual results in the future.
Contact Information
Dr. Reddy’s:
Investors and Financial Analysts:
Nikhil Shah at nikhilshah@drreddys.com
or on 91-40-66511532
Media:
M
Mythili at mythilim@drreddys.com
or on 91-40-66511620
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. 44.27 |
|
UK Pound |
1 |
Rs. 86.87 |
|
Euro |
1 |
Rs. 57.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
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 |