MIRA
INFORM REPORT
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Report Date : |
18.07.2007 |
IDENTIFICATION DETAILS
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Name : |
AVENTIS PHARMA
LIMITED |
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Registered Office : |
Aventis House,
54/A, Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400 093, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.05.1956 |
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Com. Reg. No.: |
11-9794 |
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CIN No.: [Company
Identification No.] |
L24239MH1956PLC009794 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH00271F |
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PAN No.: [Permanent
Account No.] |
AAACH2736F |
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Legal Form : |
It is a public
limited liability company. The company’s shares are listed on the Stock
Exchanges. The company is now
a subsidiary of Aventis Pharma Holding GmbH, |
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Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular,
Antibiotics, Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine
Segments. |
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 24000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is
now a subsidiary of Aventis Pharma Holding GmbH, The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Aventis House,
54/A, Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400 093, |
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Tel. No.: |
91 – 22 – 2283
0607 / 2283 1189/2284 4562 / 28216622 (Ext. 811) / 28242260 / 28278000 |
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Fax No.: |
91 – 22 – 2282
9532 /2204 6188/2285 0435 / 28242261 /
28370939 / 28278110 |
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E-Mail : |
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Website : |
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Factory 1 : |
3501-15, 6310,
B-14, GIDC Estate, Ankleshwar – 393 002, |
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Factory 2 : |
GIDC, Plot No.
L-121, Phase III, Verna Industrial Estate, Verna, Goa – 403 722, |
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Regional Offices
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DIRECTORS
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Name : |
Dr. Vijay Mallya |
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Designation : |
Chairman |
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Name : |
Mr. Alexandre De
Carvalho |
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Designation : |
Managing Director
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Name : |
Mr. J M Gandhi |
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Designation : |
Director |
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Name : |
Mr. S R Gupte |
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Designation : |
Director |
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Name : |
Mr. M Lienard |
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Designation : |
Director |
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Name : |
Mr. F. Martinez |
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Designation : |
Director |
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Name : |
Mr. A K R
Nedungadi |
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Designation : |
Director |
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Name : |
Mr. A. Peychaud |
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Designation : |
Director |
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Name : |
Mr. J Silvestre |
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Designation : |
Director |
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Name : |
Mr. M. G. Rao |
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Designation : |
Alternate
Director to Mr. A. Peychaud |
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Name : |
Dr. Sandeep
Bhattacharya |
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Designation : |
Alternate
Director to Mr. J. Silverstre |
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Name : |
Mr. S. Ayyangar |
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Designation : |
Alternate
Director to Mr. M. Lienard |
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Name : |
Mr. P. Vaishnav |
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Designation : |
Alternate
Director to Mr. F. Martinez |
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Name : |
Mr. A. Ponsin |
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Designation : |
Executive
Director |
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Name : |
Dr. Shailesh
Ayyangar |
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Designation : |
Managing Director |
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Name : |
Mr. O .Charmeil |
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Designation : |
(Alternate Mr .M. Lienard) |
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Name : |
Mr. C .Ger main |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K Subramani |
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Designation : |
Company Secretary |
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Name : |
Crawford Bayley and Company |
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Designation : |
Solicitors |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Foreign Promoters (Hoechst GmbH / Sanofi-aventis) |
11543207 |
50.12 |
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Indian Promoters |
2366460 |
10.28 |
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Mutual Funds / UTI |
3315708 |
14.40 |
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Foreign Institutional Investors |
2101566 |
9.12 |
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Banks |
27942 |
0.12 |
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Insurance Companies |
1314309 |
5.71 |
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Bodies Corporate |
442814 |
1.92 |
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Trusts |
550 |
0.00 |
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Individual holding upto Rs. 0.100 million in nominal capital |
1472404 |
6.40 |
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Individual holding more than Rs. 0.100
million in nominal capital |
445216 |
1.93 |
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Others (Clearing Member) |
446 |
0.00 |
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Total |
23030622 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular, Antibiotics,
Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine Segments. |
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Products : |
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Brand Names : |
The company sells
its products under the various brand names such as : Ř
Avil Ř
Rabipur Ř
Tarivid Ř
Cardace Ř
Cefrom Ř
Granocyte Ř
Campto Ř
Taxotere Ř
Insuman Ř
Amaryl Ř
Daonil Ř
Allegra Ř
Lasix Ř
Tavanic Ř
Targocid Ř
Axem
Hib Ř
Frisium Ř
Streptase Ř
Clxane |
PRODUCTION STATUS
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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I. Basic Drugs: |
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Pharmaceuticals |
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Tonnes |
186.20 |
112.11 |
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II.
Formulations: |
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Liquid Injectibles |
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KL |
- |
284.73 |
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Tables and dragees |
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Mio Nos. |
6900.00 |
5536.01 |
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Capsules |
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Mio Nos. |
- |
166.20 |
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Oinments |
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Tonnes |
- |
570.53 |
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Granules |
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Tonnes |
- |
2.31 |
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Drops, syrup and other liquids |
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KL |
- |
604.04 |
GENERAL INFORMATION
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Suppliers : |
v
Award Packaging v
Laxmi Print Art v
D M Printers v
On-Line Packaging Private Limited v
v
Laser Securities v
Paras Enterprises v
Archana glass Works Private Limited v
Yagnesh printing Company v
Icon Prints Private Limited v
Vial Seal Industries v
Excellent Printers v
Canton Laboratories Private Limited v
Anupam Seal Private Limited v
Surya Packaging v
Reliance Packaging Industries v
Supreme Packs v
Rajdeep Plastic Containers ( v
Kishore ampoule Private Limited v
Aar Aar Private Limited v
Indian Scientific Glass Industries v
Award Offset Printers and Packaging v
Pioneer Extruders Private Limited |
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No. of Employees : |
1465 |
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Bankers : |
v
Bank
of v
BNP
Paribas, Mumbai v
Citibank
N A, Mumbai v
Deutsche
Bank, Mumbai v
Hongkong
& Shanghai Banking Corporation Limited, Mumbai v
State
Bank of v
HDFC Bank Limited |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S . R. Batliboi
& Company Chartered
Accountants |
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Parent Company
: |
Aventis Pharma
Holding |
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Memberships : |
Confederation of
Indian Industry |
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Subsidiaries : |
v Aventis Pharma
Deutschland GmbH, v Aventis Pharma
SA, France v Aventis Pharma
Limited, v Aventis Pharma
Pte Limited, v Aventis
Pharmaceuticals Inc, v Aventis Inc, v Gruppo Lepetit
S.P.A., v Aventis Pharma
ZAO, v Aventis Pharma
Limited, v Aventis Pharma
Specialite, France v v Aventis Pharma
International SA, v Aventis Pharma
Investment Limited, v Fison-Holmes
Chapel Limited, v Aventis Pharma
Bejing Co. Limited, v Aventis Bulk
S.P.A., v Aventis Limited, v Hoechst Marion
Roussel Limited, v Aventis Pharma v Aventis Pharma
Pty Limited, v Aventis
Intercontinental, France v Aventis Pharma
Limited, v PT v Aventis Pharma
Exports Limited, v Aventis Farma Sa v Aventis Pharma
Limited, v Sanofi-Synthelabo
( v Chiron Behring
Vaccines Private Limited, v Aventis Pharma
S.P.A., v Aventis Pharma
(Pty) Limited, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23,500,000 |
Equity shares |
Rs. 10.00 each |
Rs. 235.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,30,30,622 |
Equity shares |
Rs. 10.00 each |
Rs. 230.306 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
230.306 |
230.306 |
230.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5851.754 |
5007.531 |
3988.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
6082.060 |
5237.837 |
4218.300 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
196.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
196.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6082.060 |
5237.837 |
4414.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1324.250 |
1404.997 |
1516.600 |
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Capital work-in-progress |
131.951 |
13.434 |
27.900 |
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INVESTMENT |
53.088 |
53.088 |
52.900 |
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DEFERREX TAX ASSETS |
131.089 |
57.216 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1588.029
|
1363.369 |
1016.400 |
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Sundry Debtors |
684.867
|
510.332 |
918.200 |
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Cash & Bank Balances |
3861.173
|
2943.898 |
1673.100 |
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Other Current Assets |
139.199
|
113.865 |
0.000 |
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Loans & Advances |
668.551
|
487.309 |
693.500 |
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Total
Current Assets |
6941.819
|
5418.773 |
4301.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1104.200
|
845.576 |
1158.800 |
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Provisions |
1395.937
|
864.095 |
325.500 |
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Total
Current Liabilities |
2500.137
|
1709.671 |
1484.300 |
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Net Current Assets |
4441.682
|
3709.102 |
2816.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
6082.060 |
5237.837 |
4414.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
8839.344 |
8078.368 |
8557.000 |
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Other Income |
527.270 |
502.752 |
0.000 |
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Total Income |
9310.739 |
8409.647 |
8557.000 |
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Profit/(Loss) Before Tax |
2497.054 |
2363.893 |
2262.000 |
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Provision for Taxation |
804.127 |
913.059 |
777.000 |
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Profit/(Loss) After Tax |
1692.927 |
1450.834 |
1485.000 |
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Earnings in Foreign Currency : |
NA |
2425.430 |
1928.550 |
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Imports : |
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Raw Materials |
1472.855 |
1486.439 |
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Stores & Spares |
1.723 |
1.766 |
1687.691 |
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Capital Goods |
12.578 |
9.209 |
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Finished Goods |
707.331 |
617.308 |
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Total Imports |
2194.487 |
2114.722 |
1687.691 |
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Expenditures : |
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Materials |
4286.253 |
3790.637 |
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Personnel Expenses |
785.128 |
734.752 |
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Operating and other Expenses |
1562.021 |
1348.093 |
6296.400 |
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Depreciation & Amortization |
178.465 |
171.813 |
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Interest |
1.818 |
0.459 |
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Total Expenditure |
6813.685 |
6045.754 |
6296.400 |
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SUMMARISED RESULTS
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PARTICULARS |
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|
31.03.2007 1st
Quarter |
|
Sales Turnover |
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|
2129.000 |
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Other Income |
|
|
200.000 |
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Total Income |
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|
2329.000 |
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Total Expenditure |
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|
1635.000 |
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Operating Profit |
|
|
694.000 |
|
Interest |
|
|
0.000 |
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Gross Profit |
|
|
694.000 |
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Depreciation |
|
|
45.000 |
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Tax |
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|
199.000 |
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Reported PAT |
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|
433.000 |
200703
Notes Status of Investor complaints for the
quarter ended 31.03.2007 complaints Pending at the beginning of the quarter 02
complaints Received during the quarter 01 Complaints disposed off during the quarter
02 Complaints unresolved at the end of the quarter 01. 1. The above Results
were approved by the Board of Directors of the company at its Meeting held on
16.04.2007. 2. The Break up of Net Sales is as follows: Fort the quarter ended
31.03.2007 Domestic Sales: Rs. 1706.000 millions export Sales: Rs. 423.000
millions Total Sales: Rs. 2129.000 millions 3. Other Income for the quarter
ended 31.03.2007 includes write back of excess provision for indirect tax
amounting to Rs. 50.000 millions. 4. Effect of accounting Standard 15 (Revised)
(AS 15) Employee Benefits for the quarter ended 31.03.2007 has been considered
in the above and additional impact, if any as at the beginning of the year will
be adjusted from the Reserves and Surplus as per transitional provisions of AS
15. 5. The company has a single business segment namely “Pharmaceutical
Business”. 6. IN accordance with clause 41 of the Listing Agreement with the
stock Exchanges, the company’s Statutory Auditors have conducted a “Limited
Review” of the financial Results for the quarter ended 31.03.2007. 7. The Board
of Directors had at its Meeting held on 16.03.2007 declared Second Interim
Dividend of Rs. 28.50 per equity share of Rs. 10.00 (inclusive of a special
one-time Golden Jubilee Dividend of Rs. 16.00 per Equity Share of Rs. 10.00 to
commemorate the completion for fifty years of the Company which was
incorporated in May, 1956) for the year ended 31.12.2006. The said Second
Interim Dividend has been paid in March 2007. 8. The figures for the previous
period have been re-grouped wherever necessary.
9. The Register of Members and Share Transfer Books of the Company will
be closed from 05.06.2007 to 15.06.2007 (both days inclusive) for the purpose
of the annual General Meeting.
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
Debt Equity Ratio |
|
0.00
|
0.00 |
0.02 |
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Long Term Debt Equity Ratio |
|
0.00
|
0.00 |
0.02 |
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Current Ratio |
|
2.85
|
2.80 |
2.34 |
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TURNOVER RATIOS |
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Fixed Assets |
|
3.53
|
3.33 |
3.16 |
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Inventory |
|
6.35
|
7.27 |
8.37 |
|
Debtors |
|
15.67
|
12.10 |
11.47 |
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Interest Cover Ratio |
|
1387.39
|
4725.00 |
2262.30 |
|
Operation Profit Margin |
(%) |
28.57
|
29.31 |
30.74 |
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Profit Before Interest and Tax Margin |
(%) |
26.66
|
27.33 |
28.62 |
|
Cash Profit Margin |
(%) |
19.98
|
18.77 |
20.91 |
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Adjusted Net Profit Margin |
(%) |
18.07
|
16.78 |
18.79 |
|
Return on Capital Employed |
(%) |
45.45
|
51.88 |
62.67 |
|
Return on Net Worth |
(%) |
30.81
|
31.86 |
42.03 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 1414.15 |
|
Low |
Rs.1355.55 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was
incorporated on 31st March, 1956 at Mumbai in
Aventis Pharma (APL), previously known as Hoechst Marion Roussel (HMR) is a 50.10% subsidiary of the international pharma giant Aventis (formed by the merger of Hoechst AG and Rhone Poulenc). APL manufactures and markets drugs and pharmaceuticals, agro-chemicals and animal health-care products.
The company has a very large and diversified product portfolio, with
significant share of antibiotics. Hoechst and its 66.7% subsidiary Roussel have
a co-marketing agreement in the domestic market. Hoechst has entered into
co-marketing alliance with two domestic pharmaceutical companies namely Ranbaxy
and Nicholas Piramal.
In 1999-2000, Aventis has launched anti-diabetic Amaryl broad spectrum
anti-infective Tavanic and line extension of anti-hypertensive Cardace H. The
company has plans to launch pediatric vaccines Vaxcem Hib (for Haemophilus
influenza type B) and Morupar (for mumps, measles and rubella) in coming
year.
In Dec. 1999, the life sciences business of Hoechst AG and Rhone Poulenc SA was
formally merged, into a global life sciences giant called Aventis. The
pharmaceutical business of both companies have been combined into Aventis
Pharma AG.
In Dec 2000,
HMR has strong products and caters to a wide therapeutic area. Its brands such
as Combiflam (anti-inflammatory), Daonil (anti-diabetic), Avil (anti-allergic),
Soframycin (dermatological) and Novalgin (analgesic) are household names.
The Board of Directors of the company has approved the amalgamation of Rhone-Poulence
Rorer (
The company has increased the installed capacity of Capsules during the year 2002 by 34 Millions (Nos).Consequent of this expansion the total capacity has been increased to 102 Millions (Nos).
The divestment of the therapeutic proteins business Aventis Behring to CSL
Limited of
LANTUS,the world's first and only once a day insulin,was launched in July 2003,
The company was awarded The Niryat Shree Gold Trophy for highest export growth
during 2001-02 by the Federation of Indian Export Organisations, set up by the
Ministry of Commerce, Government of India.
The FDA authority in Germany has approved the company's manufacturing
site at Goa for the product DIONIL sourcing to Europe and with this approval,
exports of DIONIL to European countries had began in the first quarter of 2004.
The company has a
very large and diversified product portfolio, with significant share of
antibiotics. It major brands are
detailed below. Though many of these are
market leaders, they are all old, mature brands. High DPCO coverage of 50%+
affects margins adversely, with volumes alone driving sales of most
products.
1956
The Company was
incorporated as Hoechst Fedco Pharma Private Limited on 31st March. The word
`Private' was deleted on 19th April, 1961 as the Company was deemed to be
Public Limited Company under Section 41-A of the Act.
The company
manufactures bulk drugs, drug intermediates, veterinary formulations and
pesticides. It was established with financial and technical collaboration of
Farbwerke Hoechst AG (now Hoechst AG),
Under the Licence and Technical Collaboration Agreement
dated 11th July, made between Hoechst AG and the Company, the Company was inter
alia granted the right to use the word `HOECHST' in its corporate name and the
use of the trade marks owned by Hoechst AG in India in respect of various
pharmaceutical preparations which would be manufactured and marketed by the
Company in India on the terms and conditions mentioned in the said Agreement.
10,000 Preference
and 10,000 No. of Equity shares of Rs 100 each issued to promoters. 5000
Preference and 9,867 No. of Equity shares as Rights in proportion to holdings.
1957
The company set up
a manufacturing unit at Mulund, for production of basic drugs. In also manufactures
intermediates including some of the latest discoveries in the Hoechst Group
involving high technology and application of sophisticated modern manufacturing
techniques. It also supplies basic drugs to other pharmaceutical companies in
1961
28,133 No. of
Equity shares issued as Rights.
1967
37,800 bonus equity
shares issued proportion 3:5. In June and August, 17,000 No. of Equity shares
issued as Rights.
1969
57,222 Bonus equity
shares issued in the proportion 49:100.
1974
1,64,990 Bonus
equity shares issued in the proportion 94:100,
1979
1,70,256 Bonus
equity shares issued in the proportion 1:2.
1982
The Company set up
a manufacturing unit at the Kandla Free Trade Zone to cater to the increasing
export market for its products.
2,55,384 Bonus
equity shares issued in the proportion 1:2.
1984
The main objects of
the public issue was to achieve the voluntary dilution of Hoechst AG's holding
in the Company from 50% to 40% and also to provide the requirements of long
term resources for capital expenditure to be incurred on account of normal
replacement and renovation of capital assets, continuous modernisation and
upgradation programmes to achieve efficiency and use of the latest techniques
and methods of manufacture to impart high quality and sophistication to the
product range.
1,19,538 No. of
equity shares issued (Prem. of Rs 100 per share) in July, of which 3,800 shares
to business associates and 9,600 shares to employees including working
directors) were reserved for preferential allotment. The balance 1,78,138
shares offered for public subscription.
1986
The Land and
building water works, plant and machinery of the Company were revalued as on
31st December.
A new company under
the name Hoechst Nepal Private Limited, was incorporated as a subsidiary of the
company in February in
1987
A new extension of
the Haemaccel plant at Mulund and a multi-purpose fine chemicals plant for bulk
drugs at Ankleshwar went into commercial production.
During the year, an
industrial licence was obtained for the manufacture of Petoxifylline (TRENTAL),
2 tonnes of Ciclopiroxolamine (BATRAFEN), an antifungal drug and 0.530 million
TPA of diagnostic reagents at Ankleshwar.
1988
Industrial licence
was, received for the manufacture of 0.200 million doses of purified chick
embroy cell culture vaccine (Human rabies vaccine) known as RABIPUR.
The company
obtained Central Government approval under the M.R.T.P. Act, 1969 to the establishment
of a new undertaking for producing, processing and selling hybrid and high -
yielding varieties of seeds.
The company issued
2,30,000 - 14% secured redeemable non-convertible debentures of Rs 100 each on
private placement basis. These are redeemable at a premium of Rs 5 per
debenture on 1st February, 1996.
1989
The Company
re-entered the antifugual market with the introduction of "BATRAFEN"
which was an original research product of the Company's collaborators Hoechst
AG,
The Company
introduced a new insecticide "HOSTATHION". "FLAVOMYCIN", a
modern performance promoter for poultry was launched during the year.
The Pharma
formulation plant was commissioned at Ankleshwar in October, liquid injectible
automatic filling line was commissioned in Mulund in September.
1990
New pharma products
introduced were TARIVID (a modern oral antibacterial), AVIL retard (sustained
release formulation for treatment of allergies) and TABLON (a formulation
containing Ibuprofen for the treatment of pain).
In co-operation
with Boots Pharmaceuticals Limited, a new anti-arthritic drug `FLUROFEN' was
introduced.
A letter of intent
was received for BARALGAN Ketone and formulations, Glybenclamide and
formulations, Hostathion technical and formulations, Fenbendazole substance and
formulations and Ethion technical and formulations at the Company's works in
Ankleshwar. Industrial license was received for manufacture of LASIX retard
besides receiving endorsement for manufacture of 13 tonnes of AVIL maleate.
1991
A new herbicide
Klass (Diuron) was introduced during the year. `Butox' and `Tolzan' were the
new products introduced for external and internal parasites.
Industrial licences
were received for manufacture of Tonophosphan, Berenil and Fenbendazole and
their formulations at Ankleshwar. Letters of intent were received for
manufacture of Novalgin tablets and Roxatidine and their formulations at
Ankleshwar and Lasiride and Betrafen and their formulations at Mulund.
The Company
revalued its freehold land, buildings etc and the net surplus of Rs 470,733,868
arising out of its was transferred partly to capital reserve (Rs 149,489,737)
and to Revaluation reserve (Rs 321,244,131).
1992
A modern anti hypertensive
`Rene Dil' and latest anti-ulcer drug. `Rotane' were introduced during the
year.
Industrial licences
were received for manufacture of Baralgan, Glybenclamide, and their
formulations, Roxatidine, Lasiride and formulations and Novalgin tablets at
Ankleshwar and Batrafen formulations at Mulund.
Letters of intent
were received for manufacture of Ranipril and formulations, Tabalon tablets and
Tarivid tablets at Ankleshwar and Cosavil syrup and Streptase formulations at
Mulund.
An additional super
centrifuge and auxilliary equipments for the PCEC plant in Ankleshwar were
installed and commissioned.
1993
19,38,411 No. of
Equity shares of Rs 10 each issued at a premium of Rs 60 per share to Hoechst
AG to raise its capital from 40% to 51%.
1994
A product cardare,
an ACE inhibitor was introduced. An oral typhoid vaccine called typhonal was
also introduced. Candur-R, and antirabies vaccine was launched during the year.
With effect from
1st April, the Scheme of Arrangement was sanctioned for transfer of the
company's agrochemicals division to Hoechst Schering Agrofoo Limited. In terms of the scheme every shareholder of
the Company holding 50 shares, were allotted 10 shares of Rs 10 each of Hoechst
Schering Agrofoo Limited without any payment.
Roussel India
Limited in which the Company held 4,18,560 No. of equity shares out of 6,27,840
No. of equity shares of Rs 100 each issued is a subsidiary of the Company.
115,15,311 shares
issued at a bonus shares in proportion 1:1.
1995
The new products
such as ACE inhibitor, Cardace etc. were attributed. The Company launched
INSUMAN (human insulin) apart from Floxidin a new broad spectrum antibiotic.
Due to the technical difficulties, the Company had to close both foot and mouth
disease vaccine and Candur DHL plants.
Roussel India
Limited, the Company's subsidiary was amalgamated with the Company. Accordingly
the name of the Company was changed to Hoechst Marion Roussel Limited,
effective 1st January, 1996.
1996
`Insuman' an
anti-diabetic drug was launched. The production of `Baralgan' was suspended as
per the Government order.
The capacity of
Rabipur plant at Ankleshwar was expanded from 1.8 million doses to 3.5 million
doses per annum to meet the increased demand for the product.
The Company proposed
to set up a joint venture company with Chiron Corporation,
1997
The Company
proposed to introduce four new products viz. Frisium (anti-epileptic). Amaryl (
The German drug
multinational Hoechst Roussel is buying out the equity stakes of Colour Chem
and two individual entrepreneurs in its Indian joint venture, Hoechst Roussel
Vet Private Limited, to convert it into a fully-owned subsidiary.
Currently, Hoechst
Roussel Vet GmbH, along with its subsidiary Hoechst Schering Agrevo Limited,
holds 51 per cent equity in the joint venture.
Hoechst-Huabei
Pharmaceuticals Company Limited, is a 50:50
Hoechst Marion
Roussel recently forged a manufacturing joint venture for vaccines with the
Chiron group in
1998
Hoechst Marion
Roussel (HMR), a 51 per cent subsidiary of Hoechst Marion Roussel,
The new joint
venture company will manufacture the anti rabies vaccine Rabipur and other
vaccines of the Chiron Group.
HMRL had purchased
the 33.33 per cent shareholding of Roussel Laboratories UK in Roussel
The company is all
set to transfer its animal healthcare business to a joint venture company, in
which HMR will have a 49 per cent stake and Chiron Corporation of the
Hoechst proposes to
enter into a joint venture with Chiron Corporation of
1999
Hoechst Marion
Roussel has launched a voluntary retirement scheme (VRS) at its Mulund factory
in Mumbai.
2000
The Company plans
to introduce variants of brands like Allegra and Tavanic in the domestic
market.
The Company has re-designated
Ramesh Subrahmanian as deputy managing director of the company with effect from
1st July.
The Company and
Rhone-Poulenc Rorer (India) Limited two separate Indian subsidiaries of the
French Pharmaceuticals and Chemicals major, Aventis SA, are implementing
employee stock option schemes as part of the parent company's worldwide
strategy.
Hoechst Marion
Roussel Limited acquired 29,55,608 No. of Equity shares of Rhone-Poulenc Rorer
at Rs 15 per share.
Hoechst Marion
Roussel changed its name to Aventis Pharma even as it aims to maintain a
leading position within the Indian pharma sector.
2002
The company
informed that the Board of Directors of the company has, at its meeting held on
October 30, 2002 appointed Mr W Wagner as a Director of the company in the
casual vacancy caused by resignation of Mr. J Silvestre.
It is in trade
terms with :
+
Nilmac
Packaging Industries Limited
+
Columbia
Petro Chem Limited
+
Corru –
Cartons (
+
Laxmi
Print Art
+
Nylocel
Industrial Coatings Private Limited
+
Printania
Offset Private Limited
+
Mesha
Pharma Private Limited
+
Vibha
Chem Products Private Limited
+
Priya
Foils Private Limited
+
Jazz
Interiors Leathers Boutique
+
Shalimar
Tubes and Industries Limited
+
Kishore
Ampoule Private Limited
+
Supac Packaging
Private Limited
+
Lactose
(
+
+
Mukesh
Stationery Mart
+
IJCP
Publication Private Limited
+
Waghulede
Screens
Management discussion and Analysis
PHARMACEUTICAL
MARKET:
Total Pharmaceutical market during the year ended 31st December 2006 (MAT-Dec
2006) was estimated at Rs.248.6 billion & grew by 12.9% over the previous
year.
Key drivers have primarily been New Products (8.9%) and Volumes (4.4%). Prices
declined marginally (-0.5%).
The ORG IMS Stockiest Audit report shows the Company as the 9th largest domestic player with a market share of 2.7% and a growth of 9.9% (MAT Dec 2006).
SALES AND PROFITABILITY:
During the year ended 31st December 2006, the Company had net sales (excluding
excise duty) of Rs.8840 million as against Rs.8078 million during the previous
year. This represents a growth of 9.4%.
Profit before Tax grew by 5.6% to reach Rs.2497 million against Rs.2364
million in 2005.
During the year ended 31st December 2006, the Company has changed its
accounting policy in respect of provision for estimated sales returns on
account of date expiry and breakages and has provided for such returns based on
historical experience. In the past, such returns were accounted on actual
basis. As a result of this change, sales and profit before tax for the
financial year under review were lower by Rs.110 million.
Had it not been for this provision, sales growth would have been 10.8% and
profit before tax would have grown by 10.2%.
DOMESTIC SALES REVIEW:
The Company's products and services were greatly appreciated by the Physicians and Patients during the year signifying their confidence on the quality and scientific evidence generated on the Company's products. As a consequence, in a highly competitive market, the domestic sales were Rs.6582 million in 2006 versus Rs.5791 million in 2005, a growth of 13.6%. The growth would have been 15.6% but for the provision for sales returns referred to above.
The Company's strategy of expanding its presence in larger geographies of the
country and improving the frequency of calls to optimal levels resulted in the
expansion of the sales force. This expansion has already started paying
dividends during the year under review.
Sales of 11 major products promoted by the Company's sales force on
comparable basis grew by 17% and they contributed to around 79% of the domestic
sales for 2006. The rest of the portfolio on comparable basis grew by
14%.
32% of the Company's portfolio comes under the purview of the current
Drug Price Control Order (DPCO) and under the mandatory price control regime,
resulting in lower margins for the Company.
Major Brand Performance Review:
Cardace(R), the Company's flagship brand in the cardio-vascular segment,
continued its leadership position in 2006 in the segment of Renin Angiotensin
System Inhibitors (mono and combination). It has a market share of 28% and
faced competition from the Angiotensin II receptor blockers that are driving the
market strongly.
Strong scientific promotion by an exclusive sales force has helped the brand to
penetrate new markets and the product has remained a mainstay for patients
suffering from cardio-vascular risk factors.
Lantus(R), the world's first once daily Insulin glargine, had an impressive 57%
growth. It is increasingly gaining acceptance as the preferred way to treat
patients suffering from diabetes.
By improving its market share to 7% in the insulin market, Lantus(R) is now the
4th largest insulin brand in
Amaryl(R) with a growth of 15% and a market share of 6.1% continues to be the
largest brand in the crowded oral anti diabetic market.
Daonil(R) registered a 8% growth, reflecting the continued three decades of confidence of the medical fraternity in this superior product.
With a market share of 3.8%, Daonil(R) continues to be a strong No 2 brand in
the Oral anti diabetic market.
A line extension, Daonil(R) M, a combination of Glibenclamide with Metformin,
was launched in the second half of 2006.
Allegra(TM) used by patients suffering from allergy had a very impressive
year with a growth of 30%. It enjoys a market share of 9.1%.
It formally made the much awaited entry into the pediatric market with the launch
of Allegra(TM) Suspension in July 2006.
In the solids only market, Allegra(TM) has now become the No. 1 brand.
In terms of prescriptions, Allegra(TM) continues to be the 2nd most prescribed
brand amongst all anti-histamines in the country.
Clexane(R) has maintained its leadership position in the Anti-coagulant
market.
Introduction of several copies of Clexane(R) has created a fierce
competition in the market. Clexane(R) with its established track record and
usage, however, remains the most preferred low molecular weight heparin in the
country.
Targocid(R) had a very satisfactory year. It has a market share of 28% in the
market comprised of glycopeptides and oxazolidinone.
Actonel(R), the osteoporosis brand of the Company, had an impressive
growth of 31% in a highly price sensitive market which grew by 16%. Strong
patient benefits coupled with counsellor services to patients helped in
increasing patient acquisition and also in patient retention.
Combiflam(R) range was a major driver for the Company registering a
growth of 27%.
Combiflam(R) & Avil(R) tablets have retained their volume leadership in
their respective categories.
Avil(R) range grew by 11% & Soframycin(R) range (including Sofradex(R))
grew by 4%.
The External Field-Force Pilot project was expanded across the country and
helped revive the Doctor promotion on Combiflam(R), Soframycin(R) and other
similar brands in smaller towns which were hitherto untapped.
Taxotere(R) and Granocyte(R), the products of the Oncology Business Unit,
achieved growths in excess of 30%.
EXPORT SALES:
Export sales during the year were Rs.2258 million, a decline of 1.3% over
2005 when the highest ever sales were achieved.
The main reason for the decline in exports was the removal of some of the
Company's products from the Federal Reimbursement list in
There were no significant
defaults in Accounts Receivables. Inventory was under control. Export
incentives were availed promptly.
Exports to
Exports to
Sourcing of products from the Company to sanofi-aventis Group companies grew by
over 25% primarily due to increase in exports of Active pharmaceutical
ingredients (API) such as Articaine, Glibenclamide and Lasamide.
MANUFACTURING OPERATIONS:
Capacities continued to be optimally utilized in both the manufacturing sites.
During the second half of 2006, two line extensions and one new product were
launched:
a) Allegra (TM) Suspension -
b) Cetapin(R) 500 mg XR and Cetapin(R) 1 g XR
c) Daonil(R) M
The Goa manufacturing plant received regulatory approvals from
The Chemistry Site in Ankleshwar received French regulatory approval for
manufacture of Glibenclamide and Articaine Hydrochloride.
Regulatory approvals have also been received from
Manufacture of validation batches of Paracetamol in
The project for setting up additional facilities for complete manufacture
of Combiflam(R) tablets in Ankleshwar has been completed. This product was also
earlier being manufactured in two external manufacturing sites. At full
capacity this would be one of the biggest plants in
Anti counterfeit measures were introduced in four products - Combiflam(R), Hostacycline(R), Novalgin(R) and Trental(R) - so that copies could be easily detected.
Process improvements in major products helped to achieve higher batch
yields.
The Company continues to fulfill its responsibilities towards safety, health
and environmental protection at the manufacturing sites. It also continues to
extend voluntary services to educate the public including school children,
vendors, suppliers and the surrounding industrial units about its HSE systems
as a part of the Company's Community Outreach programme.
PROSPECTS
FOR 2007:
The prospects for 2007 are expected to be reasonable, barring the risks of an
unfavourable Drug Price Control Order.
Government has reduced prices by 18% of Analgin & Spironolactone based
formulations based on cheap imports from
In the Union Budget announced in February 2007, the customs duty on finished
medicines has been reduced from 12.5% to 10%. The customs duty on active raw
materials has been reduced to 7.5%.
No new life saving drug has been included in the Union Budget in the list
of drugs exempted from customs duty. As a result, the Company's anti cancer
product Taxotere. Continues to attract customs duty although fourteen
anti-cancer drugs had been exempted from customs duty in the Union Budget
announced in February 2006.
By a notification issued in March 2007, the National Pharmaceutical Pricing
Authority (NPPA) has stipulated that companies would be short listed where
there is an increase in prices of a non-scheduled formulation by more than 10%
(as against 20% earlier) during a period of 12 months and the annual turnover
of the formulation pack exceeds Rs.1 crore. Further, the manufacturer would be
asked to furnish reasons for such price increases or to bring down the prices
voluntarily and to thereafter maintain the price levels.
This latest notification would impact the pharmaceutical industry's
ability to increase prices of decontrolled products beyond the limit of 10%
even if such price increases are warranted to compensate for increases in input
costs.
As Per Web Details
Subject is committed to improving the quality of life. Through the incredible growth of knowledge, their scientists are on the threshold of major innovations in the field of healthcare. This includes pharmaceuticals (prescription drugs) and vaccines among others. Servicing healthcare providers and patients in major markets around the world, Aventis Pharma Limited aims to achieve sustained growth by concentrating on innovative products that need significant medical needs. In each area, Aventis Pharma Limited is cultivating a continuous flow of new product launches with high potential.
Subject stands out among pharmaceutical companies for global reach, with a strong presence in major markets, and for the diversity of people in the management teams and business units. They are committed to a strong multicultural team as a source of innovative thinking and customer-oriented service.
Subject has two manufacturing units - one at Ankleshwar and
the other at
Subject aims to achieve leadership in healthcare by building on the strengths of its multicultural global management team, drawing on best practices from internal & external sources, and constantly monitoring its own performance.
Profile
Subject is the
second largest pharmaceutical multinational company in
The Aventis product
portfolio in
In each of these
the thrust is on consolidating existing markets, penetrating new markets,
offering high quality support to care providers and keeping patient well being
at the heart of all business efforts.
Subject employs
around 1242 people and believes that attracting, retaining and developing a
world class workforce is critical for long term business success.
The company has six
regional offices at Mumbai,
Though the Company
is not actively involved in R&D of its own in
Vision
Subject aspires to
be an industry leader valued by patients and healthcare providers for its
commitment to path breaking therapies; by employees for its commitment to
fairness and openness; by the scientific community for its support to research
and development; and its peers for seeing fair competition as best serving the
interest of patients.
Values
+
Respect
for People
+
Integrity
+
Sense
of Urgency
+
Networking
+
Creativity
+
Empowerment
+
Courage
+
Strategy
Subject believes
that in markets such as
As
Key Therapeutic
Areas
Breast Cancer
Breast Cancer is a
major disease in
Chemotherapy is
fast emerging as a critical component of therapy in both pre and post surgery
treatment schedules.
Taxotere, a drug in
the taxoid class of chemotherapeutic agents is the foundation of Aventis
oncology franchise and has been available in
Diabetes
The World Health
Organization estimates that of the 150 million people worldwide who have
diabetes, 21% (31.5 million) are Indians. This is the largest population of
diabetes patients anywhere in the world. This number is expected to grow to
57.2 million by the year 2025.
The star in the
Aventis portfolio for diabetes treatment in
Lantus is the first
and only 24-hour basal (long acting) insulin in
Lantus was first
launched in
In the oral
hypoglycemic market Aventis offers Amaryl, which today is the second largest
brand in its category with a market share of 5.7% (IMS data). Amaryl has
dominated this market despite the introduction of many generic competitors.
Amaryl is the preferred choice with doctors because it offers tested efficacy
and safety. Value addition for patient compliance and patient awareness has
helped Amaryl differentiate itself from generics.
Cardiovascular
The World Health Organization
(WHO) estimates that by 2010, 60% of the world's cardiac patients will be
Indians In India, nearly 50% of CVD-related deaths occur below the age of 70,
compared with just 22% in the West. That trend is particularly alarming because
of its potential impact on one of the region's fastest-growing economies.
Cardace from
Aventis Pharma has been in the market since 1994 and today enjoys a dominant
position being the most-prescribed cardiovascular brand by cardiologists and
diabetologists (CMARC). In 2002 it consolidated its strong equity and grew by
32%. It has consistently maintained its growth profile and has become an
undisputed leader in the ACE inhibitor market (IMS bz ORG) and the number one
brand in terms of sales in the Indian cardiovascular segment (IMS R ORG).
Cardace bagged the
prestigious ’Marketing Excellence’ award for 2001-2002 from the OPPI. In 2003
Cardace maintained its market position and has held on to this in 2004.
Deep Vein
Thrombosis
Aventis is working
to grow the DVT prophylaxis market by increasing awareness of Deep Vein
Thrombosis (DVT) as a major health risk.
This has enabled
Clexane, the most widely used low molecular weight heparin in the world, to put
perform competition. It has maintained its leadership position with around 34%
market share in the category of anti thrombotics in
Clexane is now
recommended for use in Unstable Angina / Non Q Wave Myocardial Infarction by
the
Osteoporosis
Over 61 million
Indians have osteoporosis. Eighty percent of these are women. On a global
basis, Indians have the highest prevalence of osteopenia, which is the
weakening of bones before the osteoporosis stage. Aventis offers a drug and a
disease management program – WISHBONE- to manage this challenge in
The WISHBONE
Program offers patients subsidized diagnostic facilities, insurance against
fractures, free calcium, support from dietitians and counselors and other
services at home. Actonel is the drug at the heart of this program and the only
osteoporosis treatment consistently proven to provide rapid fracture protection
in just one year and sustained fracture protection for at least five years.
Clinical studies in women with postmenopausal osteoporosis have shown that
Actonel reduces moderate and severe vertebral fracture risk by 70% within one
year.
Actonel has also
been shown to reduce the risk of hip fractures by 60% in elderly women with
established postmenopausal osteoporosis
Allergy
Allergic reaction
to a variety of environmental factors both in childhood and through adult life
is a growing concern amongst medical practitioners in
Allegra outperformed
the market in the year 2002, grew at an impressive 15% (ORG - MAT December
growth) against 9% market growth in the segment and has since maintained its
growth path in the face of competition from newer molecules like mizolastine,
ebastine, desloratidine and levocetrizine.
Aventis will
continue to focus on sophisticated marketing techniques to leverage investments
in this area.
Rheumatoid
Arthritis
Arava, in the first
full year of launch, reached more than 4500 patients and achieved a market
share of 34% (IMS) in the Rheumatoid Arthritis segment. Arava has established
itself as the preferred brand among the country’s rheumatologists; Aventis has
succeeded in establishing a three-way bond between the patient, the
rheumatologist and the Company with the help of its Joint Effort program. Under
the Joint Effort program, Aventis provides counseling, patient education,
physical support devices for patients, doctor-patient meets and lab tests and
physiotherapy wherever required.
Industrial
Operations
The success stories
of Industrial Operations continue in the current year. At the end of Q 3, 2004,
just concluded, all the planned financial deliverables have been achieved.
Major contribution
to this success is in the area of implementation of strategic initiatives,
rolled out by subject globally, at their
two State-of-the-Art manufacturing plants (Ankleshwar and
Excellence in
quality continues to be one of their main thrust areas. The Goa Plant has
received the Runners-Up Aventis Board of Management Award successively for the
last 2 years (year 2002 and 2003).
The facilities and
the systems in their plants undergo continuous up-gradations to suit the
demands of the future. A recent example is the upgradation of their facilities
at their Ankleshwar Plant.
They have
successfully completed the transfer of Glibenclamide bulk tablets from
The project of
manufacturing Ornidyl and Pentamidine for WHO is also on track. They expect the
pre-approval inspection of their external manufacturing sites by the French and
German Regulatory authorities to take place this year, so that the supplies of
both these products could commence in the coming year.
A motivated team
strives continuously to improve the Cost of goods manufactured.
Fixed Assets:
v
Software
v
Marketing and Technical Rights for formulations
v
Technical know-how
v
Land
v
Buildings and waterworks
v
Plant and
Machinery
v
Furniture and Fixtures
v
Office Equipments
v
Computers
v
Motor Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.39 |
|
|
1 |
Rs. 82.93 |
|
Euro |
1 |
Rs. 55.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|