MIRA INFORM REPORT
|
Report
Date : |
27.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
USV LIMITED |
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Registered
Office : |
B. S.
Devshi Marg, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
25.04.1961 |
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Com.
Reg. No.: |
11-12098 |
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CIN
No.: [Company
Identification No.] |
U24239MH1961PLC012098 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMU00007A |
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Legal
Form : |
Subject is a closely held public limited liability
company. Subject is a Subsidiary of American Products Company
Limited. |
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Line
of Business : |
Manufacturers of Tablets and Capsules, Liquids, Creams,
Powders and Bulk Drugs/Drug Intermediates. |
RATING &
COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
22000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well established closely held public limited company engaged in
manufacturing and marketing of pharmaceuticals in the form of tablets, capsules,
liquid, creams, etc. The company’s
track record is fine. It is
progressing well in terms of turnover and profit. Directors
are experienced and resourceful businessmen.
Their trade relations are reported fair. Payments are correct and as per
commitments. The company can be considered good for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
B. S.
Devshi Marg, |
|
Tel. No.: |
91-22-25564048/4049/4050/4051/25562225/ 25559915/25581118 |
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Fax
No.: |
91-22-25515608/25584025 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
B. S.
Devashi Marg, Govandi, Mumbai – 400 088, |
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Factory
1 : |
OIDC,
Dhabhel, |
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Factory
2 : |
Plot No. B-1
/ 8, M.I.D.C. Lote Industrial Area, Taluka Khed, Ratnagiri, |
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Tel.
No.: |
91-2356-272242 |
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Fax
No.: |
91-2356-272402 |
DIRECTORS
|
Name |
Mr.
Prashant Tewari |
|
Designation |
Managing
Director |
|
Age |
45 years |
|
Qualification |
M.S., B. Tech,
Indian Institute of Technology, |
|
Experience |
23 years |
|
Date
of Joining |
01.05.1993 |
|
Previous
Employment |
Vital
Pharmacal Private Limited |
|
Name |
Mrs. Leena
Tewari |
|
Designation |
Chairperson |
|
Qualification |
MBA, B.Com., |
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|
|
|
Name |
Mr. |
|
Designation |
Technical
Director |
|
Qualification |
PhD, |
|
Age |
63 years |
|
Date
of Joining |
09.10.1998 |
|
Experience |
40 years |
|
Previous
Employment |
Searle
India Limited |
|
|
|
|
Name |
Mr.
Debabrata Bhaduri |
|
Designation
|
Director
(Technical) |
KEY EXECUTIVES
|
Name |
Mr. Vikas Vinod Kapoor |
|
Designation
|
Company Secretary |
|
Address
: |
Orchid, 501, |
|
Date
of Ceasing : |
01.08.2006 |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
Percentage of Holding |
|
Corporate
Bodies |
0.24% |
|
Directors
and Relatives |
99.76% |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers of Tablets and Capsules, Liquids, Creams,
Powders and Bulk Drugs/Drug Intermediates. |
|
|
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|
Products
: |
Medicaments
(including) Veterinary Medicaments) |
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|
Other
Organic Compounds |
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Brands
: |
v
Pioz (Insulin Sensitizer) v
Arbitace v
Clopigrel (anti-platelet) v
Ecosmin (enteric coated aspirin) v
Nizer D (Nimesulide with Pseudo ephedrine – an anti-cold preparation) v
Quicktest – U (Urine strip for Glucose analysis) |
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|
|
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ITC
Codes with Products |
30.03 :- Medicaments (including) Veterinary Medicaments) |
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|
29.42 :- Other Organic Compounds |
GENERAL
INFORMATION
|
Trade
Terms : |
v Modepro India Private Limited v Nikava Pharmaceuticals Industries v Remidex Pharma Private Limited v Ishaan Labs Private Limited v Sidmak Laboratories India Private
Limited v Savita Pharmaceuticals Private
Limited v Aviat Chemicals Private Limited v Promed Laboratories v Killitch Drugs v Mepro Labs v Tablets |
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|
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No. of
Employees : |
1370 |
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|
|
|
Bankers
: |
v
State Bank of India, Shiv Sagar Estate, Dr. A. B. Road, Worli, Mumbai
- 400001, Maharashtra, India v
Standard Chartered Grindlays Bank Limited, v
The Saraswat Co-operative Bank Limited, Mumbai, v
Canara Bank |
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Facilities : |
Nil |
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Banking Relations : |
Good |
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Auditors
: |
Deloitte
Haskins & Sells Chartered
Accountants 12, Tel. No.:
91-22-66679000 Fax No.:
91-22-66679025 |
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Parent
Company |
American
Products Company Limited B.S.D.
Marg, Govandi, Mumbai – 400088, |
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Associates
: |
v
Treva Health Care Private Limited v
Vipal Health Care Private Limited v
Tender Remedies v
Business Link Automation ( v
Vital Pharmacal Private Limited v
Neo Pharma Industries Private Limited v
Chronomed Health Care Private Limited |
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|
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Subsidiaries
: |
v
USV ( v
USV North America Inc. v
Indicus Pharma LLC |
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Membership
: |
Organisation
of Pharmaceutical Products of |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs. 1250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
99966957 |
Equity Shares |
Rs. 10/- each |
Rs. 999.669 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 |
999.670 |
107.590 |
107.600 |
|
2] Reserves & Surplus |
4587.978 |
4183.758 |
3184.400 |
|
NETWORTH |
5587.648 |
4291.348 |
3292.000 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
2] Unsecured Loans |
55.761 |
55.789 |
61.000 |
|
TOTAL BORROWING |
55.761 |
55.789 |
61.000 |
|
Deferred Tax Liabilities |
217.778 |
128.958 |
0.000 |
|
|
|
|
|
GRAND TOTAL |
5861.187 |
4476.095 |
3353.000 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1840.995 |
1453.448 |
1174.900 |
|
Capital work-in-progress |
215.014 |
146.386 |
0.000 |
|
|
|
|
|
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INVESTMENTS |
2641.159 |
1828.723 |
1096.500 |
|
|
|
|
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|
CURRENT ASSETS, LOANS &
ADVANCES |
|
|
|
|
Interest accrued on investments |
0.000 |
0.000 |
0.000 |
|
Inventories |
816.266 |
630.815 |
525.000 |
|
Sundry Debtors |
513.560 |
444.806 |
552.400 |
|
Cash & Bank Balances |
65.851 |
127.197 |
182.900 |
|
Other Current Assets |
0.002 |
0.024 |
0.000 |
|
Loans & Advances |
394.599 |
390.305 |
328.000 |
|
Total Current Assets |
1790.278 |
1609.300 |
1588.300 |
|
Less : |
|
|
|
|
Current Liabilities |
570.394 |
537.119 |
494.500 |
|
Provisions |
55.865 |
8.490 |
12.200 |
|
Total
Current Liabilities |
626.259 |
690.800 |
506.700 |
|
|
|
|
|
|
Net Current Assets |
1164.019 |
1047.538 |
1081.600 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
GRAND TOTAL |
5861.187 |
4476.095 |
3353.000 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover (including other
income] |
5730.784 |
4993.864 |
5885.000 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1605.458 |
1486.583 |
1952.500 |
|
Provision for Taxation |
233.420 |
370.548 |
474.800 |
|
Profit/(Loss) After Tax |
1372.038 |
1116.035 |
1477.700 |
|
|
|
|
|
|
Total Exports |
1750.580 |
NA |
618.000 |
|
|
|
|
|
Total Imports
|
NA |
NA |
341.300 |
|
|
|
|
|
Total Expenditures
|
4125.326 |
3507.281 |
3932.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT /
Total Income |
(%) |
23.94
|
22.35 |
25.11 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
28.01
|
29.77 |
33.18 |
|
|
|
|
|
|
|
Return on
Total Assets (PBT/Total
Assets} |
(%) |
44.21
|
48.54 |
70.66 |
|
|
|
|
|
|
|
Return on
Investment (ROI) (PBT/Networth) |
|
0.29
|
0.35 |
0.59 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
0.12
|
0.17 |
0.17 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
2.86
|
2.33 |
3.13 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 25th August, 1961 at
Mumbai in
The company was founded in 1921 by Dr. V. B. Gandhi, a
leading economist and a Member of the Indian Parliament. In 1961, his son Mr.
Arvind Gandhi incorporated USV as a joint venture with US Vitamin and
Pharmaceutical Corporation,
Subject is the only Indian Company that provides a complete
range of therapeutic solutions to the diabetic population in
It is currently ranked 3rd in the cardiovascular
segment. The successful launches in March 2001 of LIPICARD (Fenofibrate – a
cholesterol lowering drug) and CLOPIGREL (Clopidogrel – an anti platelet agent)
will strengthen this leadership position.
During the year, brands Derobin and Anovate were acquired
from Glaxo (
Subject is a leading health care company ranked 18th in the
Indian pharmaceutical industry, with leadership positions in the fast growing
areas of diabetes and cardiovascular diseases. A strong R&D focus is a part
of its corporate strategy with emphasis on Biotechnology. Its branded generics
and APIs are marketed globally and supported by a US FDA approved manufacturing
facility. Over the years The company had built an excellent reputation in the
35 countries in which it operate. The company provide a supportive and learning
environment where personal growth is encouraged and nurtured.
The company was founded in 1921 by Dr. V. B. Gandhi, a
leading economist and a member of the Indian Parliament. In 1961, he and his
son Arvind Gandhi incorporated USV as a joint venture with US Vitamin and
Pharmaceutical Corporation.
Over the past 40 years the company had posted uninterrupted
and consistent growth, emerging today as the 18th largest Pharma
company in
Retrospective
1927 American Products Company
Limited founded by Dr. V. B. Gandhi.
1950 USV & P Corporation,
1962 Incorporation of USV Limited
Commissioning of plant and Manufacturing
1969 Timed release preparations
launched.
1975 Forbes Street in
1976 Launch of Glynase- New oral
hypoglycemic therapy drug.
1986 USV Limited becomes 100% Indian.
1988 R & D Labs recognised by the
Government of India.
1989 Chiplun plant commissioned.
1996 US Process Patent granted for
Glipizide.
1998 Molecular Medicine Research Laboratory
inaugurated.
1999 Acquisition of Lyka Lab brands
Angispan and Amlopine. Acquisition
of Neo Pharma Private Limited.
2000 Glipizide plant approved by US
FDA.
Launch of Human, Porcine
and Bovine Insulin.
Acquisition of Glaxo
brands Anovate and Deborin.
2002
Agreement
with B Braun for distribution of Quicktest.
A Metformin plant inaugurated and approved by the US FDA,
TGA,
2003
The
new dosage facility at
Designed to meed US and European requirements.
Merger of the Subsidiary :
Life on Paediatrics
Limited, a wholly owned subsidiary of the Company, has been progressing well in
the paediatrics market with a launch of a number of pharmaceutical specialties.
Although Paediatrics business was launched under a separate entity with a view
to create a distinct identity, it has been felt that combining the paediatrics
business structures with those of the business of the Company would lead to a
number of synergies in terms of marketing, distribution and sharing of common
resources. Therefore, the Board of Directors discussed and decided at their
meeting held on 29th April, 2002 to merge the Life on Paediatrics Limited with
the Company by applying for a legal merger with the approval of court.
Accordingly, Lifeon Paediatrics Limited has been merged with the Company in
terms of the Scheme of Amalgamation as approved by the Order of the Honorable
Bombay High Court dated 5th September 2002. The paediatrics business of Life on
is now being operated as a separate and distinct division of Company.
Turnover, profits, dividend & reserves
Their financial performance during the year has been excellent. Sales
registered a growth of 36% from Rs. 3975.94 million to Rs. 5407.15 million
while the profit before interest and depreciation has grown by 66.32% from Rs.
1185.46 million to Rs. 1971.69 million. The Board of Directors have declared
and paid an interim dividend of Rs.5 per share during the year. The Directors
do not propose any further dividend. Thus, the total dividend for the year
amounted to Rs. 107.59 million and tax paid by Company on this dividend
amounted to Rs. 13.78 million. For the preceding year ended 31stMarch, 2003,
the dividend proposed by the Board of directors of Rs.5 per equity share, was
not approved by the shareholders at the Annual General Meeting (AGM) held on
10th July, 2003, and consequently, the provision relating thereto as well as to
the tax thereon, was reversed in the accounts for the current year:
National business
Their domestic business continued to show stable growth. National business grew
by 21.39 %, out performing the industry average of: 7.3% (IMS-ORG March 2004
MAT). Their focus has been to build long lasting brands, which are easily
associated with the product and at the same time provide high quality
affordable healthcare.
International business
International business continued to leverage on its strengths in the regulated
markets primarily US, EU and
Building partnerships that add value is their belief. They constantly seek to
establish partnerships that are complementary and which enhance existing
product lines.. USV has successfully entered into an Out-licensing agreement
with Green Cross Pharmaceutical Corp. of
Their partnership with B. Braun has progressed a step further, whereby they
will be marketing their oral anti-diabetic brands in select South-East Asian
markets.
Manufacturing operations (World class facilities)
Their manufacturing facilities are being continuously upgraded to make the
operations most efficient and conform to the latest international standards.
Plans are underway to set up a manufacturing facility in
Website Details :
Subject
is a leading health care company with three clear areas of focus: Branded
Generics, Active Pharmaceutical Ingredients (marketed globally with a focus on
In
Subject has established their presence in the international
market as the largest generic manufacturer of Met form in worldwide. Subject
Active Pharmaceutical Ingredients business focuses on regulated markets; and
their plants have been inspected and approved by global agencies like MCA,
In the area of research, they offer RDNA proteins and
peptides backed by validated bio-assays, clinical trials and intellectual
property rights. Subject look for alliances in areas of mutual interest
benefiting from developments in their laboratories, which are currently manned
by 150 scientists. 5% of sales revenue each year is invested in research and
subject currently hold 8 patents and have 20 submissions to their credit.
Subject drug delivery laboratory works on value added dosages. Recently subject
out licensed 1000 mg Slow Release Met form in to Green Cross Pharmaceutical
Corporation,
They completed 2004 financial year in March registering
sales of Rs. 5,407 million (USD 125 million) and growth of 36%. Subject has
2075 employees that have the opportunity to learn and grow in an open,
encouraging and team environment. They aim at being a reliable healthcare
partner to those they interact with whether customer, collaborator, in license
partner, doctor or patient.
Domestic Market
Subject
is an ideal partner for marketing premium products in
Asia,
Subject
Branded Generics are now marketed globally, through two independent business
units, one, which is focused on
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.40.54 |
|
|
1 |
Rs.82.02 |
|
Euro |
1 |
Rs.55.31 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
|