MIRA
INFORM REPORT
|
Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
CADILA HEALTHCARE LIMITED |
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Registered Office : |
Zydus Tower, Satellite Cross Road, Ahmedabad – 380 015, Gujarat |
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Country: |
India |
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Financials (as on): |
31.03.2007 |
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Date of Incorporation : |
15.05.1995 |
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Com. Reg. No.: |
04-25878 |
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CIN No.: [Company Identification No.] |
U24230GJ1995PLC025878 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
AHMC00020G |
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PAN No.: [Permanent
Account No.] |
AAACC6253G |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Seller of pharmaceuticals, bulk drugs, formulations and injectibles. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 29000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a leading pharmaceutical company in the country. Available information indicates high financial responsibility of the company. Directors are experienced, respectable and resourceful industrialists. Their trade relations are reported as fair. Financial position of the company is good. Payments are reported as correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Zydus Tower, Satellite Cross Road, Ahmedabad – 380 015, Gujarat, India |
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Tel. No.: |
91-79-2677 0100 |
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Fax No.: |
91-79-2673 2365 / 2673 2366 |
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E-Mail : |
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Website : |
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Corporate Office : |
Zydus Tower, Satellite Cross Roads, Ahmedabad – 380 015, Gujarat |
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Tel. No.: |
91-79-2686 8100 (20 Lines) |
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Fax No.: |
91-79-2686 2365 / 66 |
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Website : |
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Factory 1 : |
Sarkhej-Bavla N.H. No.8, Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat Tel No. 91-79-23750331 / 36 / 36 Fax No. 91-79-23750319 Formulation Unit:
S. No.417, 419 & 420, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat. Kundaim Industrial Estate, Ponda, Goa – 403 401. Village Saraj Mujra, P. O. –Baddi, Tehsil – Nalagarh, District - Solan Neutraceutical Plant
5504, GIDC Estate, Phase III, Vatva, Ahmedabad, Gujarat. SBI Bulk Drug Unit
Plot No. 291, GIDC Industrial Estate, Ankleshwar – 393 002, District Bharuch, Gujarat Tel No. 91-2646-220621/220719 Fax No. 91-2646-250672 |
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Research Center : |
Zydus Research Centre
Ø C/4, MIDC, Pawne Village, Thane Belapur Village, Vashi, Navi Mumbai – 400 705, Maharashtra. Tel No. 91-22-27670224/27670225 Fax No. 91-22-27670223 Ø S. No. 396/403, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat. Ø Sarkhej-Bavla N.H. No.8, Village Moraiya, Taluka Sanand, District Ahmedabad - 382210, Gujarat. Tel No. 91-79-23750802-05 Fax No. 91-79-23750606 |
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Business Development Office : |
203/204, Neelkant Commercial Centre, Sahar Road, Andheri (East), Mumbai – 400 099, Maharashtra. Tel No. 91-22-28394690/28394698 |
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Branches : |
Khemka House, Drive-in Road, Ahmedabad - 380 052, Gujarat |
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Tel. No.: |
91-79-27410861 |
DIRECTORS
|
Name |
Mr. Pankaj R.
Patel |
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Designation |
Chairman &
Managing Director |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Indon Healthcare Limited Ø Cadila Laboratories Limited Ø Zydus Pharmaceuticals Limited Ø Zydus Finance Limited Ø Zydus Aqrovet Limited Ø Zydus International Private Limited,
Ireland Ø Zydus Healthcare S.A. (Pty) Limited, South
Africa Ø Zydus Byk Healthcare Limited Ø Zoom Properties Private Limited Ø Pharmaceuticals Business Group (I) Limited
Ø Pripan Investment Private Limited Ø Rampan Investment Private Limited Ø Pritpan Investments Private Limited Ø Sharvil Investment Private Limited Ø Shivpan Investment Private Limited Ø Pankram Investment Private Limited Ø Vadilal Chemicals Limited Ø Cadmach Machinery Company Private Limited C
Gujarat
Themis Biosyn Limited |
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Name |
Mr. Mukesh M.
Patel |
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Designation |
Director |
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Address |
Ashwamegh
Bungalows, Part II, Off. Satellite Road, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Indo Healthcare Limited Ø Symphony Comfort Systems Limited Ø Magnum Fincap Limited Ø Caditronics Limited Ø Nutan Tobacco Company Private Limited Ø Instavision Systems (I) Private Limited |
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Name |
Dr. Manubhai A.
Patel |
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Designation |
Director |
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Address |
4, Purohit Society,
B/H Swaminarayan Society, Sardarnagar, Chhani Road, Baroda – 394 220,
Gujarat, India |
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Other Directorships |
Ø Gujarat Lyka Limited Ø Vadilal Chemicals Limited Ø Elysium Pharmaceuticals Limited Ø Nilkamal Synfabs Limited |
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Ø |
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Name |
Mr. Pranlal Bhogilal |
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Designation |
Director |
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Address |
122, Walkeshwar
Road, Mumbai – 400 006, Maharashtra, India |
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Other Directorships |
Ø Wood Papers Limited Ø Bengal Hotels Private Limited Ø Bilimora Commerce Private Limited Ø Bilimora Trading Company Private Limited Ø Das Organochem Private Limited Ø Oriental Estates & Manufactures
Private Limited Ø Consolidated Holdings Limited Ø Bharat Trading & Manufacturing
Corporation Private Limited Ø Modern Bobbin Company Private Limited Ø Das Jubilee Private Limited Ø Collinson & Company Private Limited Ø Midas Touch Investments Limited Ø Dastan Private Limited Ø Karnvati Trading Company Private Limited Ø Sabarmati Trading Company Private Limited Ø Ellisbridge Holds Private Limited Ø Kathwada Holdings Limited Ø Aashka Holdings Limited Ø Aashka Investments Limited Ø Dastan Leasing & Finance Limited Ø Lok Prakashan Limited |
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Name |
Mr. Sharvil P.
Patel |
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Designation |
Director |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Name |
Mr. H. K. Bilpodiwala |
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Designation |
Director |
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Name |
Mrs. Pritiben P. Patel |
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Designation |
Director |
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Name |
Mr. A. S. Diwanji |
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Designation |
Director |
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Name |
Mr. H. Dhanrajgiri |
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Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr. Ramanbhai B.
Patel |
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Designation |
Founder |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, Gujarat, India |
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Other Directorships |
Ø Cadmach Machinery Company Private Limited –
Managing Director Ø Cadila Laboratories Limited Ø Indon Healthcare Limited Ø Zydus Pharmaceuticals Limited Ø Zydus Finance Limited Ø Zydus Aqrovet Limited Ø Zydus International Private Limited,
Ireland Ø Zoom Properties Private Limited Ø Pharmaceuticals Business Group (I) Limited
Ø Pripan Investment Private Limited Ø Rampan Investment Private Limited Ø Pritpan Investments Private Limited Ø Sharvil Investment Private Limited Ø Shivpan Investment Private Limited Ø Pankram Investment Private Limited |
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Name |
Mr. Upen H. Shah |
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Designation |
Company Secretary |
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Name |
Mr. Jyotindra B. Gor |
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Designation |
Chief Accountant Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter's holding |
90463250 |
72.02 |
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Mutual Funds and UTf |
7483365 |
5.96 |
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Banks, FIs and Insurance Companies |
10743859 |
8.55 |
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Foreign Institutional Investors |
6258288 |
4.98 |
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NRIs/OCBs |
320883 |
0.26 |
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Other Corporate Bodies |
1579765 |
1.26 |
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Indian public |
8764298 |
6.98 |
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Total |
125613708 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of pharmaceuticals, bulk drugs, formulations and injectibles. |
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Products : |
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Exports : |
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Countries : |
Ethiopia, Ghana, Kenya, Mauritius, Tanzania, Uganda, Zambia, Sierraleone, South Africa, Bahrain, Sudan, Sultanate of Oman, Yemen, Jordan, Belarus, Estonia, Georgia, Kazakhistan, Khirgstan, Latvia, Lithuania, Moldova, Russia, Ukrain, Uzbekistan, Cambodia, Hong Kong, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Thailand, Vietnam, Bulgaria, Czech Republic, Romania, Malta, Panama, West Indies, Mexico, Papua New Guinea, Germany and UK. |
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Imports : |
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Countries : |
Europe |
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Terms : |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Tablets |
M. L. Nos. |
|
7840 |
6178 |
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Capsules |
M. L. Nos. |
|
790 |
560 |
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Injections |
K. Ltrs |
|
513 |
930 |
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Dry Powder Injections |
Kgs |
|
200 |
3756 |
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Liquids |
K. Ltrs |
|
0 |
763 |
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Dry Syrups,Powder and Granuted |
Tonnes |
|
5800 |
432 |
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Ointments |
Tonnes |
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0 |
128 |
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Suppositories |
M. L. Nos. |
|
7 |
11 |
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Bulk Drugs |
Tonnes |
|
552 |
432 |
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Lyophised Injections |
ML Nos. |
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12 |
4 |
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Vaccines |
M. L. Dosages |
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2 |
1 |
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Aeroslos |
M. L. Nos. |
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3 |
1 |
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Transdermals |
ML.Nos. |
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5 |
0 |
GENERAL
INFORMATION
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Customers : |
A bZydus Pharmaceuticals Limited B Zydus Healthcare Brazil Limited C Zydus Pharmaceuticals (USA)
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No. of Employees : |
3000 |
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Bankers : |
Ø ICICI Bank Limited Ø Citi Bank Ø IDBI Bank Ø BNP Paribas Ø State Bank of India Ø Bank of Baroda Ashram Road Branch, Opp. Natraj Cinema, Ashram Road, Ahmedabad – 380 009, Gujarat, India Ø Corporation Bank, Industrial Finance Branch, Rangoli Complex, 1st Floor, Opp. V S Hospital, Ellisbridge, Ahmedabad – 380 006, Gujarat, India Ø State Bank of Saurashtra Industrial Finance Branch, Gujarat Chambers of Commerce Building, Ashram Road, Ahmedabad – 380 009, Gujarat, India Ø Global Trust Bank Limited G-2, Samedh, Near Associated Petrol Pump, C G Road, Ahmedabad – 380 006, Gujarat, India |
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Facilities : |
Securities for
Loans: 1. First charge by way of mortgage of office complex of the Company
at Mumbai, a residential flat of the Company at Ahmedabad and legal mortgage
of selected Trade Marks of the Company. 2 [A] Secured by hypothecation of three
specific Trade Marks of the Company. [B] [a ] Secured by way of hypothecation
of inventories [ Including goods in transit ], Bills
Receivables, Book-Debts and all other movables of the Company including
documents of titles to goods, both present and future, of the specific divisions for which facilities are
availed by the Company, [b] Further secured by second
charge on all the fixed assets of the Formulation Unit of the Company at
Moraiya and Plant and Machineries of the API Unit of the Company at
Ankleshwar. [c] The above charges rank" pari
passue " amongst banks in the respective consortium. [C] Out of
External Commercial Borrowings in Foreign Currency: [ a ] Rs. 599 [As at 31-03-06- Rs.
748] Millions are secured by first equitable
mortgage of immovable properties and hypothecation of movable
properties, both present and future, of the Formulation Unit of the Company
at Moraiya, to rank "pari passue" with lenders referred to at
2[C][c] & 2[C][f], save and except current assets charged to banks for
Working Capital Loans. [b] Rs. Nil [As at 31-03-06-Rs. 59]
Millions secured by first mortgage of immovable properties and hypothecation
of movable properties, both present and future of the Formulation Unit
situated at Ponda, Goa, save and except current assets charged to Banks for
Working Capital Loans. [ c ] Rs. 290 [
As at 31-03-06 - Rs. 540 ] Millions secured by securities mentioned at
2[C][a] & 2[C][b] above on "pari passue " basis with lenders
referred at 2[C][a] & 2[C][f]. [ d ] Rs. 435 [
As at 31-03-06 - Rs. 405 ] Millions are secured by first mortgage of
immovable properties and hypothecation of movable properties, both present
and future, of the API Unit-1 of the Company situated at Ankleshwar, save and
except current assets charged to banks for Working Capital Loans. [e] Rs. 290 [As
at 31-03-06- Rs. Nil] Millions to be secured by mortgage of a specific Trade
Mark of the Company. [f] Rs. 542 [As
at 31-03-06- Rs. Nil] Millions to be secured by first equitable mortgage of
immovable properties and hypothecation of movable properties, both present
and future, of the Formulation Unit of the Company at Moraiya, to rank
"pari passue" with lenders referred at 2[C][a] & 2[C][c], save
and except current assets charged to banks for Working Capital Loans and to
be further secured by mortgage / hypothecation of a specific Trade Mark of
the Company.
Note : Loan at [ 3 - A] Rs. 85 Millions is secured by personal
guarantee of the Managing Director of the Company. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Ø R. R. Patel & Company Chartered Accountants 14/15, K. B. Commercial Centre, Lal Darwaja, Ahmedabad – 380 001, Gujarat Ø Mukesh M. Shah & Company Chartered Accountants 3, H. K. House, Second Floor, Ashram Road, Ahmedabad – 380 009, Gujarat |
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Associates/Subsidiaries : |
Associates: Pharmaceutical Business Group (India) Limited Zydus Byk Healthcare Limited Pripan Investment Private Limited Incorporated on 1st December, 1980 Taram Investment Private Limited Incorporated on 30th October, 1984 Pritpan Investment Private Limited Incorporated on 22nd May, 1992 Sharvil Investment Private Limited Incorporation on 22nd May, 1992 Shivpan Investment Private Limited Incorporated on 22nd May, 1992 Rampan Investment Private Limited Incorporated on 22nd May, 1992 Pankram Investment Private Limited Incorporated on 22nd May, 1992 Zydus Travelease Private Limited Incorporated on 15th May, 1995 Zydus Finance Limite Incorporated on 31st October, 1994 Caditronics Limited Incorporated on 6th July, 1982 Instavision Systems (India) Private Limited Incorporated on 16th November, 1984 Cadmach Machinery Company Private Limited Incorporated on 6th September, 1973 Onconova Therapeutics Inc., U.S.A. Sarabhai Zydus Animal Health Limited Subsidiaries :
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Joint Venture Companies: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
130000000 |
Equity Shares |
Rs.5/- each |
Rs. 650.000 Millions |
|
500000 |
Preference Shares |
Rs.100/- each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125613708 |
Equity Shares |
Rs.5/- each |
Rs. 628.000
Millions |
Note : of the above shares
[A] 33034332
shares were allotted as fully paid up pursuant to the scheme of arrangement and
amalgamation without payments being received in cash.
[B] 77691976 [14885122] shares were allotted
as fully paid up by way of bonus shares by capitalization of shares premium
account [General reserve]
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
|
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1] Share Capital |
628.000 |
314.000 |
314.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
8195.000 |
7049.000 |
5830.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8823.000 |
7363.000 |
6144.000 |
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LOAN FUNDS |
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|
1] Secured Loans |
3627.000 |
3125.000 |
2874.000 |
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2] Unsecured Loans |
850.000 |
1207.000 |
841.000 |
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TOTAL BORROWING |
4477.000 |
4332.000 |
3715.000 |
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DEFERRED TAX LIABILITIES |
1127.000 |
1097.000 |
1012.000 |
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TOTAL |
14427.000 |
12792.000 |
10871.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7415.000 |
6860.000 |
6784.000 |
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Capital work-in-progress |
521.000 |
589.000 |
396.000 |
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Preoperative & Project Expenses Pending allocation |
0.000 |
0.000 |
4.000 |
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INVESTMENT |
2928.000 |
1851 |
1368.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3287.000
|
2128.000
|
1939.000 |
|
|
Sundry Debtors |
2386.000
|
1851.000
|
1088.000 |
|
|
Cash & Bank Balances |
124.000
|
23.000
|
264.000 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
2273.000
|
2086.000
|
1372.000 |
|
Total
Current Assets |
8070.000
|
6088.000 |
4663.000 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Current Liabilities |
3764.000
|
1999.000
|
1844.000 |
|
|
Provisions |
743.000
|
597.000
|
575.000 |
|
Total
Current Liabilities |
4507.000
|
2596.000
|
2419.000
|
|
|
Net Current Assets |
3563.000
|
3492.000 |
2244.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
75.000 |
|
|
|
|
|
|
|
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TOTAL |
14427.000 |
12792.000 |
10871.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
14137.000 |
12460.000 |
11419.000 |
|
|
Other Income |
482.000 |
0.000 |
|
|
|
Total Income |
14619.000 |
377.000 |
11419.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2319.000 |
1888.000 |
1504.000 |
|
|
Provision for Taxation |
272.000 |
239.000 |
190.000 |
|
|
Profit/(Loss) After Tax |
2047.000 |
1649.000 |
1314.000 |
|
|
|
|
|
|
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|
Earnings in Foreign Currency : |
|
|
|
|
|
|
F.O.B value of Exports |
2943.000 |
2073.000 |
0.000 |
|
|
Commission Earnings |
0.000 |
0.000 |
0.000 |
|
|
Other Earnings |
154.000 |
117.000 |
1388.000 |
|
Total Earnings |
3097.000 |
2190.000 |
1388.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
CIF values of imports |
1660 |
1315.000 |
0.000 |
|
|
Expenditure in foreign currency |
300.000 |
723.000 |
0.000 |
|
|
Others |
407 |
0.000 |
1285.000 |
|
Total Imports |
2367.000 |
2038.000 |
1285.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Consumption of Material and finished Goods |
5249.000 |
5090.000 |
0.000 |
|
|
General Expenses |
5439.000 |
4489.000 |
0.000 |
|
|
Research Expenses |
1291.000 |
817.000 |
0.000 |
|
|
Interest |
176.000 |
205.000 |
0.000 |
|
|
Depreciation & Amortization |
667.000 |
616.000 |
0.000 |
|
|
Other Expenditure |
0.000 |
0.000 |
9791.000 |
|
Total Expenditure |
12822.000 |
11217.000 |
9791.000 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
4474.000
|
4429.000
|
|
Other Income |
|
61.000
|
200.000
|
|
Total Income |
|
4535.000
|
4629.000
|
|
Total Expenditure |
|
3476.000
|
3738.000
|
|
Operating Profit |
|
1059.000
|
891.000
|
|
Interest |
|
70.000
|
-39.000
|
|
Gross Profit |
|
989.000
|
930.000
|
|
Depreciation |
|
181.000
|
176.000
|
|
Tax |
|
95.000
|
85.000
|
|
Reported PAT |
|
713.000
|
664.000
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.54 |
0.60 |
0.67 |
|
Long Term Debt-Equity Ratio |
0.37 |
0.43 |
0.53 |
|
Current Ratio |
1.17 |
1.14 |
1.07 |
|
Fixed Assets |
1.40 |
1.33 |
1.25 |
|
Inventory |
5.55 |
6.43 |
6.35 |
|
Debtors |
7.09 |
8.90 |
8.19 |
|
Interest Cover Ratio |
8.76 |
7.94 |
7.04 |
|
Operating Profit Margin(%) |
21.88 |
21.22 |
20.61 |
|
Profit Before Interest And Tax Margin(%) |
17.44 |
16.51 |
15.58 |
|
Cash Profit Margin(%) |
18.08 |
17.31 |
16.71 |
|
Adjusted Net Profit Margin(%) |
13.63 |
12.61 |
11.68 |
|
Return On Capital Employed(%) |
20.95 |
20.11 |
18.37 |
|
Return On Net Worth(%) |
25.29 |
24.42 |
22.77 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.339.00 |
|
Low |
Rs.334.50 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Freehold Land
Leasehold Land
Buildings
Plant and Machinery
Furniture, Fixture and Office Equipments
Vehicles
Trademarks, Patents and Designs
Technical Know-how
Commercial Rights
HISTORY
The company was incorporated on 15th May, 1995 at Ahmedabad in Gujarat as a Private Limited Liability Company under the Companies Act, 1956 and subsequently the company was converted into a Public Company and then renamed as Cadila Healthcare Limited effective from 17th July, 1996.
It’s Company Registration Number is 25878.
Subject is the flagship of Zydus Cadila Group.
Subject was established in 1951. After an existence of four and a half decades subject restructured its operations in 1995, to keep pace with the new business environment. Subject, under the aegis of the Zydus Group came into existence with a focus on total healthcare solutions.
Two families, "the Patel's" and "the
Modi's", promoted the Cadila group of companies. The flagship company was
Cadila Laboratories. There were other companies named Cadila Chemicals, Cadila
Exports, Cadila Antibiotics and Cadila Veterinary Limited. In 1995, to pursue
their independent business philosophies a restructuring of the group was
carried out under which two companies were formed Cadila Laboratories Limited
(Modi's) and the subject.
The business was divided into two equal parts. After the restructuring the company embarked on a major marketing exercise, which helped it, catapult from 15th rank to 6th rank in the Indian Pharma industry. The promoters of the company, Mr. Ramanbhai Patel and Mr. Pankaj Patel are both well qualified in the field of Pharmaceuticals and have received several awards for their recognition.
In February, 2000 it came out with a pubic issue of 14886000 shares of Rs. 5 each which included a book build portion of 13397400 equity shares of Rs. 5 each and a fixed price portion of 1488600 equity shares at a premium of Rs. 245/- per share.
The fund raised is proposed to utilise for financing new formulations unit at Moraiya, near Ahmedabad and for expansion of bulk drug unit at Ankleshwar, Gujarat. It entered into technical collaboration with Ethical Holdings of UK to manufacture and market transdermal patches in India.
The company’s operation include pharmaceuticals (human formulations, veterinary formulations and bulkdrugs), diagnostics, herbal products like skin care products and OTC products. Its formulation complex is located at Moraiya Village, Sanand Taluka, Ahmedabad.
The company has entered into a joint venture with USA based Onconova Teherapeuticsl Inc. a biopharmaceutical company specialising in the field of oncology (cancer research). This agreement provides for future collaboration on research manufacturing and marketing of products.
As a result of the merger of 4 companies the company has been rated as fourth largest Pharmaceutical company in the domestic formulations market with a market share of 3.80%.
Consequent of merger the Equity Paid up has been risen by 5% during the year 2003.
Operations
and Business Performance:
During the year under review, the Company achieved sales of
Rs.15014 Millions, showing a growth of 14.76 % compared to the previous year.
The PBIDT increased by 12.13% to Rs. 3162 Millions. The Profit before Tax was
higher 22.83% to Rs.2319 Millions. The Profit after Tax increased to Rs. 2047
Millions up 24.14% compared to Rs.1649 Millions in 2005-06. The Company
achieved EPS (After Extraordinary items) of Rs.16.30 compared to Rs.13.13 in
2005-06, calculated on the enhanced capital after bonus of 1:1.
Acquisition:
The
Company has entered into Share Purchase Agreement to acquire 97.95% stake in
Liva Healthcare Limited (LIVA), a closely held public Company from its
promoters. LIVA is carrying on business of manufacturing and marketing of
Formulations and is focused on Derma Segment. As on the date of this report,
the transaction is completed and the Company has taken over charge of the
management of LIVA.
The Company has also entered into Share Purchase Agreement to acquire
100% stake in Nippon Universal Pharmaceutical Ltd., (Nippon) a privately held
company headquartered at Tokyo, Japan. The acquisition is made through its
wholly owned subsidiary set up during the year in Japan. The acquisition will
provide critical access to a manufacturing and marketing base as well as a
strong distribution reach. The acquisition will unlock value for the Company,
as generic market in Japan is opening up and post 2010 the Company expects this
market to be a major growth driver for its global business.
Both the above acquisitions were made during the current year and in April,
2007 so its effect on the financials of the Company will be reflected in the
accounts for the year ending on 31st March 2008.
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. 39.32 |
|
UK Pound |
1 |
Rs. 81.82 |
|
Euro |
1 |
Rs. 56.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|