MIRA INFORM REPORT
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Report Date : |
05.09.2007 |
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IDENTIFICATION DETAILS
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Name : |
CADILA HEALTHCARE LIMITED |
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Registered Office : |
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Country: |
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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 : |
Good |
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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 : |
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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 : |
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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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Unit : |
National Highway No. 31, Near 1, |
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Factory 1 : |
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, Kundaim Industrial Estate, Ponda, Village Saraj Mujra, P. O. –Baddi, Tehsil – Nalagarh, District - Solan Neutraceutical Plant
5504, GIDC Estate, Phase III, Vatva, Ahmedabad, SBI Bulk Drug Unit
Plot No. 291, GIDC Industrial Estate, Ankleshwar – 393
002, District Bharuch, Tel No. 91-2646-220621/220719 Fax No. 91-2646-250672 |
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Zydus Research Centre
Ø
C/4, MIDC, Tel No. 91-22-27670224/27670225 Fax No. 91-22-27670223 Ø
S. No. 396/403, Village Moraiya, Taluka
Sanand, District Ahmedabad, Ø
Tel No. 91-79-23750802-05 Fax No. 91-79-23750606 |
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Business Development Office : |
203/204, Neelkant Commercial Centre, Tel No. 91-22-28394690/28394698 |
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Branches : |
Khemka House, |
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Tel. No.: |
91-79-27410861 |
DIRECTORS
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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, |
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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, Ø Zydus Healthcare S.A. (Pty) Limited, 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, |
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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, |
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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, |
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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, |
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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
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Name |
Mr. Ramanbhai B.
Patel |
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Designation |
Founder |
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Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, |
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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, 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 Accounts Officers |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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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 : |
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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. |
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7840 |
6178 |
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Capsules |
M. L. Nos. |
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790 |
560 |
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Injections |
K. Ltrs |
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513 |
930 |
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Dry Powder Injections |
Kgs |
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200 |
3756 |
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Liquids |
K. Ltrs |
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0 |
763 |
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Dry Syrups,Powder and Granuted |
Tonnes |
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5800 |
432 |
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Ointments |
Tonnes |
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0 |
128 |
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Suppositories |
M. L. Nos. |
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7 |
11 |
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Bulk Drugs |
Tonnes |
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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 : |
²
A bZydus Pharmaceuticals Limited ²
B Zydus Healthcare Brazil Limited ²
C Zydus Pharmaceuticals ( |
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No. of Employees : |
3000 |
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Bankers : |
Ø ICICI Bank Limited Ø Citi Bank Ø IDBI Bank Ø
State Bank of Ø
Bank of Ashram Road
Branch, Opp. Natraj Cinema, Ø
Corporation Bank, Industrial Finance Branch,
Rangoli Complex, 1st Floor, Opp. V S Hospital, Ellisbridge,
Ahmedabad – 380 006, Ø State Bank of Saurashtra Industrial
Finance Branch, Gujarat Chambers of Ø Global Trust Bank Limited G-2, Samedh,
Near Associated Petrol Pump, |
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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, 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: Out of Loan at (3 – A <a>), Rs.85.000 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, Ø Mukesh M. Shah & Company Chartered Accountants 3, H. K. House, Second Floor, |
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Associates/Subsidiaries : |
Associates: ²
Pharmaceutical Business Group ( ² Zydus Byk Healthcare Limited ² Pripan Investment Private Limited Incorporated on 1st December, 1980 ² Taram Investment Private Limited Incorporated on 30th October, 1984 ² Pritpan Investment Private Limited Incorporated on 22nd May, 1992 ² Sharvil Investment Private Limited Incorporation on 22nd May, 1992 ² Shivpan Investment Private Limited Incorporated on 22nd May, 1992 ² Rampan Investment Private Limited Incorporated on 22nd May, 1992 ² Pankram Investment Private Limited Incorporated on 22nd May, 1992 ² Zydus Travelease Private Limited Incorporated on 15th May, 1995 ² Zydus Finance Limited Incorporated on 31st October, 1994 ² Caditronics Limited Incorporated on 6th July, 1982 ²
Instavision Systems ( Incorporated on 16th November, 1984 ² Cadmach Machinery Company Private Limited Incorporated on 6th September, 1973 ²
Onconova Therapeutics Inc., ²
Sarabhai Zydus Animal Health Limited Subsidiaries : ²
Zydus Pharmaceuticals Limited ²
German Remedies Limited ²
Dialforhealth India Limited. ²
Dialforhealth Unity Limited ²
Zydus International Private Limited ²
Zydus Healthcare SA(Pty)Limited. ²
Zydus Healthcare ( ²
Zydus Pharmaceuticals USA Inc. ²
Zydus Healthcare Brasil LTDA. ²
Zydus ²
SCI Immopharm |
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Joint Venture Companies: |
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CAPITAL STRUCTURE
Authorised Capital :
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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.628.068
Millions |
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 |
NA |
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 |
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Inventories |
3287.000
|
2128.000
|
1939.000 |
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Sundry Debtors |
2386.000
|
1851.000
|
1088.000 |
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Cash & Bank Balances |
124.000
|
23.000
|
264.000 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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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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|
|
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Current Liabilities |
3764.000
|
1999.000
|
1844.000 |
|
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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 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
75.000 |
|
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|
|
|
|
|
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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 |
0.000 |
|
|
Total Income |
14619.000 |
12460.000 |
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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|
|
|
|
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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 |
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
|
CIF values of imports |
1660.000 |
1315.000 |
0.000 |
|
|
Expenditure in foreign currency |
707.000 |
723.000 |
0.000 |
|
|
Others |
0.000 |
0.000 |
1285.000 |
|
Total Imports |
2367.000 |
2038.000 |
1285.000 |
|
|
|
|
|
|
|
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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 /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Sales
Turnover |
|
|
4429.000 |
|
Other
Income |
|
|
200.000 |
|
Total
Income |
|
|
4629.000 |
|
Total
Expenditure |
|
|
3738.000 |
|
Operating
Profit |
|
|
891.000 |
|
Interest |
|
|
(39.000) |
|
Gross
Profit |
|
|
930.000 |
|
Depreciation |
|
|
176.000 |
|
Tax |
|
|
85.000 |
|
Reported
PAT |
|
|
664.000 |
200706
Quarter 1 ---
Notes Other Income Includes Other Income from Operations Rs
94.00 million Other Income Rs 106.00 million Expenditure Includes (Increase) / Decrease
in Stock in Trade Rs 87.00 million Consumption of Materials Rs 1637.00 million
Staff Cost Rs 454.00 million Other Expenditure Rs 1560.00 million Interest
Includes Interest & Financial charges Rs 52.00 million Exchange Rate
Fluctuations on Foreign Currency Loans Rs (91.00)million Tax Includes Provision
for Current Tax Rs 70.00 million Deferred Tax Rs 5.00 million Fringe Benefit
Tax Rs 15.00 million Status of Investor Complaints for the quarter ended June
30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 24 Complaints disposed off during the quarter 24
Complaints unresolved at the end of the quarter Nil 1. The above results were
reviewed by the Audit Committee and then approved by the Board of Directors at
their meeting held on July 31, 2007 and the statutory audit of the Company have
carried out a limited review of the financial results of the Company for the
quarter ended June 30, 2007. 2. During the quarter, the Company has acquired:
(A) 100% stake in Quimica e Farmaceutica Nikkho do Brazil Ltda (Nikkho),
through its wholly owned Brazilian subsidiary. (B) additional 50% shares in
Sarabhai Zydus Animal Health Ltd at Rs 686 million, due to which it become
wholly owned subsidiary of the Company. 3. During the quarter, the company has
invested: (A) Live Healthcare Ltd - Rs 482 million (B) Zyduz International Pvt
Ltd - Rs 136 million (C) Zydus BSV Pharma Ltd - Rs 8 million (D) M/s Zydus
Healcare - Rs 118 million 4. The Company has entered into Joint Venture with
TGL Enterprise LLC,
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 |
|
TURNOVER
RATIOS |
|
|
|
|
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.1039.95 |
|
Low |
Rs.1011.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on
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,
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
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.
Directors Report:
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
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.
During the year under report Company has incorporated Zydus
Pharma Inc.,
During the year under review the Company has established a partnership
business in the name 'Zydus Healthcare' to set up manufacturing facilities to
manufacture pharmaceutical products in
As required under the provisions of Section 212 of the Companies Act, 1956, a
statement of the holding Company's interest in the subsidiary companies is
attached to this report.
In terms of the approval granted by the Central Government under Section 212(8)
of the Companies Act, 1956, copy of Annual Reports of the subsidiary companies
have not been attached with the Balance Sheet of the Company. The Company will
make these documents/details available upon request by any shareholder of the
Company.
The annual accounts of the subsidiaries are also available for inspection by
the shareholders at the Registered Office of the Company and also at the
respective registered offices of its subsidiaries. However, pursuant to
Accounting Standard AS-21, issued by the Institute of Chartered Accountants of
India, Consolidated Financial Statements presented by the Company includes the
financial information of its subsidiaries. The following information for each
subsidiary Company is also being disclosed in a separate annexure with consolidated
balance sheet: (a) Capital (b) Reserves (c) Total assets (d) Total liabilities
(e) Details of investment (except in case of investment in subsidiaries) (f)
Turnover (g) Profit before taxation (h) Provision for taxation (g) Profit after
taxation and 0) Proposed dividend.
Performance of Major Joint Venture
Companies:
Detailed discussion of performance of each joint venture Company is covered in
Management Discussion and Analysis Report.
1. Zydus Altana Healthcare Private
Limited (ZAHL):
This 50:50 joint venture between the Company and Altana Pharma AG, is a 100%
EOU situated at Navi Mumbai. This JV Company achieved turn over of Rs.1508
millions for the year ended on 31st December, 2006 as against Rs.1280 millions
in the previous year. The net profit of the Company was Rs.1227 millions
against Rs. 935 millions in the previous year. ZAHL paid four interim dividends
aggregating to Rs. 925 millions for the year ended on 31st December, 2006. ZAHL
also paid first interim dividend of Rs. 100 millions out of the profits of the
current year.
2. Sarabhai Zydus Animal Health
Ltd. (SZAHL):
SZAHL is a 50:50 joint venture formed between the Company and Ambalal Sarabhai
Enterprises Limited to market animal healthcare products. The Company recorded
sales of Rs. 859.14 millions showing growth of 4%. The Company improved
performance all round in the current year and earned net profit of Rs. 84.15
millions. The spread of bird flu in other countries disturbed import of some of
its products initially followed by bird flu in
3. Zydus Pharmaceuticals USA Inc.:
The aforesaid Company though subsidiary of the Company, is a joint
Venture between 100% subsidiary Zydus International Private Limited, Mr. Joseph
Renner and Dr. Mahendra Patel to market generic products in the
4.
Zydus Mayne Oncology Private Limited (ZMOPL):
This 50:50 joint venture company between
5. Zydus BSV Pharma Private
Limited (ZBPL):
This is 50:50 joint venture between the Company and Bharat Serum and Vaccines
Limited. The joint venture has acquired intellectual property of pagylated
doxorubicin from Bharat Serum and Vaccines Ltd. The manufacturing facilities of
the Joint Venture Company is under construction.
Fixed Assets:
Buildings
Plant and Machinery
Furniture, Fixture and Office Equipments
Vehicles
Trademarks, Patents and Designs
Technical Know-how
Commercial Rights
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.40.94 |
|
|
1 |
Rs.82.26 |
|
Euro |
1 |
Rs.55.59 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
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 |
|