MIRA
INFORM REPORT
|
Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
IND-SWIFT LABORATORIES LIMITED |
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Registered Office : |
SCO 493-494, Sector 35 C, Chandigarh – 160 022 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.01.1995 |
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Com. Reg. No.: |
16-15553 |
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CIN No.: [Company
Identification No.] |
L24232CH1995PLC015553 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLI10111D, PTLI10125D |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the stock exchanges. |
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Line of Business : |
Manufacturing of Pharmaceutical products such as Norfloxacin,
Ampicillin, Amoxycillin, Erythromycin, Roxythromycin, etc. |
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 16000000 |
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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 company having satisfactory track.
Directors are reported as experienced, respectable and having satisfactory means
of their own. Their trade relations are reported as fair. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions |
LOCATIONS
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Registered Office : |
SCO 493-494, Sector 35 C, Chandigarh – 160 022, India |
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Tel. No. |
91-172-2660918, 2604934 |
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Fax No. |
91-172-2660920 |
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Website |
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Overseas Office : |
Ind Swift Laboratories Inc., 9 E., Loockerman St., Ste.
205, Dover, Delaware, 19901 |
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Tel. No.: |
1-908-421-1234 |
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E-Mail : |
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Factory 1 : |
Barwala Road, Village Bhagwanpura, Near Derabassi, District Patiala,
Punjab, India |
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Tel. No.: |
91-1762-231072/231048/233130 |
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Fax No.: |
91-1762-31073 |
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E-Mail : |
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Area : |
Owned |
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Factory 2 : |
SIDCO, Industrial Growth Centre, Jammu (J and K) |
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Research
and Development : |
Plot No. E-5, Industrial Area, Phase II, Mohali, Punjab |
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Branches : |
·
Barwala Road, Village Bhagwanpur, Near Derabassi, District
Patiala (Punjab) Tel. 91-1762- 281048/281072 Fax: 91-1762- 281048 Contact :- Dr. Lalit Wadhwa E - Mail: lalit.wadhwa@indswiftlabs.com
(Head Personnel & Administration) ·
S.C.O. 850, Shivalik Enclave, Manimajra Chandigarh –
160101 Tel. 91-172-2730503/
2730919-20, 5061850-53. 5076458, 5086248, 2738827, 2738828, 5072079, 3292003 Fax: 91-172-2730504 E - Mail: pradeep.verma@indswiftlabs.com Contact - Mr.Pradeep Verma (Company Secretary) Mr.
Varun Razdan Mr. Subodh Gupta (Vice President-Commercial) Mr.
N.K.Bansal (Vice President- Accounts & Finance Mr.
R S Dhaliwal (V.P. H.R.) ·
Barwala Road, Vill. Bhagwanpur, Near Derabassi, District
Patiala (Punjab) Phone 91-1762- 281048,281072 Fax: 91-1762- 281048 E-mail: lalit.wadhwa@indswiftlabs.com Contact - Dr.
Lalit Wadhwa (Vice President-R&D and
Quality Assurance) ·
A-304, 3rd Floor, Ajmera Royal Classic, Near Fame Adlabs (Citimall),
New Link Road, Andheri (West), Mumbai - 400 053 Tel. 91-22-26331218-19, 26310488 Fax. 91-22-56903422 Mobile : 91-9867925919, 9322591917 E-mail: arun.pande@indswiftlabs.com Contact - Mr. Arun Pande ·
711-712,Modi Corp Towers, 98, Nehru Place, New Delhi-110
019 Tel. 011-26226140-43 Fax. 011-26416140 E-mail: varunchhabra@indswiftlabs.com Contact – 1. Mr. Varun Chhabra 2. Mr.
Anurag Chaturvedi 3. Mr.
Vishal Vasudeva 4. Mr. Vijay Kumar (President – Marketing and
Special Projects) |
DIRECTORS
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Name : |
Mr. Gopal Munjal |
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Designation : |
Chairman |
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Name : |
Mr. N. R. Munjal |
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Designation : |
Managing Director |
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Date of Birth/Age : |
54 Years |
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Qualification : |
Graduate |
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Experience : |
30 Years |
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Date of Appointment : |
1995 |
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Name : |
Mr. V. K. Mehta |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
46 Years |
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Qualification : |
B. Com. |
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Experience : |
24 Years |
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Date of Appointment : |
1995 |
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Name : |
Mr. S. R. Mehta |
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Designation : |
Director |
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Name : |
Dr. V. R. Mehta |
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Designation : |
Director |
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Name : |
Mr. K. M. S. Nambiar |
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Designation : |
Director |
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Name : |
Mr. Yogesh Goel |
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Designation : |
Director ( nomination withdrawn by PSIDC w. e. f. 17th
April, 2003) |
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Name : |
Mr. Udayan Roy |
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Designation : |
Director (Nominee IIBI) |
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Name : |
Mr. A. K. Mahajan |
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Designation : |
Director (nomination withdrawn by PSIDC w. e. f. 17th
April, 2003) |
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Name : |
Mr. A. K. Jain |
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Designation : |
Director (passed away on 16.07.2003) |
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Name : |
Mr. J. K. Kakkar |
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Designation : |
Director |
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Name : |
Mr. Himanshu Jain |
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Designation : |
Director |
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Name : |
Mr. Viswajeet Khanna (IAS) |
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Designation : |
Chairman (nomination withdrawn by PSIDC w. e. f. 17th
April, 2003) |
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Name : |
Dr. S D Nanda |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Dr. Lalit K Wadhwa |
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Designation : |
Chief Technical Officer |
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Name : |
Mr. N. K. Bansal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Vijay Kumar |
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Designation : |
President – International Marketing |
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Name : |
Mr. Vikas Narendra |
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Designation : |
President – US Operations |
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Name : |
Mr. G K Sharma |
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Designation : |
Senior Vice President - Production |
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Name : |
Mr. Subodh Gupta |
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Designation : |
Senior Vice President – Commercial |
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Name : |
Mr. S C Srinivasan |
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Designation : |
Vice President – R and D |
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Name : |
R S Dhaliwal |
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Designation : |
Vice President – Human Resources |
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Name : |
Mr. Pradeep Verma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding
of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided
Family |
851825 |
3.57 |
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Bodies Corporate |
7433521 |
31.11 |
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Public
shareholding |
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Institutions |
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Financial Institutions / Banks |
71129 |
0.30 |
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Investors |
287047 |
1.20 |
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Non-institutions |
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Bodies Corporate |
3485102 |
14.59 |
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Individuals |
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Individuals -i. Individual shareholders
holding nominal share capital up to Rs 0.100 Million |
9670273 |
40.48 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1693440 |
7.09 |
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Any Other (specify) |
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NRI |
397300 |
1.66 |
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Trust |
1100 |
0.005 |
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Shares Held by
Custodians |
141213 |
0.00 |
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TOTAL |
24031950 |
100.00 |
Dematerialization of Shares (As on 31.03.2007)
|
Mode of Shares |
Number of Shares |
% |
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Physical |
682284 |
2.99 |
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NSDL |
19371887 |
84.83 |
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CDSL |
2781779 |
12.18 |
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Total |
22835950 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Pharmaceutical products such as Norfloxacin, Ampicillin,
Amoxycillin, Erythromycin, Roxythromycin, etc. |
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Products : |
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Exports : |
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Countries : |
·
Netherland, Poland, USA and Austria ·
Switzerland ·
China, Singapore ·
Singapore ·
Japan ·
Singapore, Hongkong ·
Belgium ·
Singapore, Polan, Netherland, Austria and Germany |
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Imports : |
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Countries : |
·
Netherland, Poland, USA and Austria ·
Switzerland ·
China, Singapore ·
Singapore ·
Japan ·
Singapore, Hongkong ·
Belgium ·
Singapore, Polan, Netherland, Austria and Germany |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
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Bulk Drugs, Intermediates, Solvents and others |
kgs |
255880 |
GENERAL
INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
·
State Bank of India Specialised Commercial
Branch, SCO : 103-106, Sector 17-B,
Chandigarh – 160 017, India ·
State Bank of Patiala Commercial Branch, SCO:103-107, Sector 8-C,
Chandigarh, India ·
Bank of India Bank Square, SCO: 81-93, Sector 17-B,
Chandigarh – 160 017, India ·
IDBI Bank Limited (Bill Discounting of Ranbaxy) Sector
8, Chandigarh, India ·
Deutsche Bank (Bill Discounting of
Ranbaxy) Sector 8, Chandigarh, India |
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Facilities : |
Note :
Short Term Loan and Advances from banks Rs.31.914 millions (Previous Year
Rs.46.135 Millions) being bill factoring facility from ABN Amro Bank against
accepted hundies, bills and other instruments duly rndorsed and personal
guarantees of directors and corporate guarantees of other Companies. Other Loans and Advances from Bank including Rs.50.000 millions
(Previous Year Rs.50.000 millions) Loan from Yes Bank which are secured by
the personal guarantees of Mr. S R Mehta, Mr. V K Mehta, Mr. N R Munjal, Dr.G
Munjal, Mr.Himanshu Jain and V R Mehta. |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
M/s Jain & Associates Chartered Accountants, SCO : 819-20, Sector 22-A, Chandigarh - 160 022, India |
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Associates : |
·
Ind Swift Limited ·
Essix Biosciences Limited ·
Ind Swift Communications (P) Limited ·
Ind Swift Infrastructures and Developers Limited ·
Mukur Pharmaceuticals Company Private Limited ·
Swift Formulations Private Limited ·
Punjab State Industrial Development Corporation Limited ·
Aarambh Finance Limited ·
Rajat Securities Private Limited ·
Rohit Profin Securities Private Limited ·
Aadee Securities Private Limited ·
Profab System Engineering Private Limited ·
Bhurjee Associates Private Limited |
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Subsidiaries : |
Ind Swift Laboratories Inc. USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27500000 |
Equity Shares |
Rs.10/- each |
Rs.275.000 millions |
|
750000 |
Preference Shares |
Rs.100/- each |
Rs.75.000 millions |
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Total |
|
Rs.350.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22835950 |
Equity Shares |
Rs.10/- each |
Rs.228.360
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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|
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1] Share Capital |
228.360 |
250.252 |
219.100 |
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2] Share Application Money |
17.255 |
12.586 |
0.000 |
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3] Reserves & Surplus |
2901.411 |
1681.023 |
887.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3147.026 |
1943.861 |
1106.500 |
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LOAN FUNDS |
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1] Secured Loans |
2634.492 |
1945.819 |
1204.900 |
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2] Unsecured Loans |
278.281 |
273.923 |
248.500 |
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TOTAL BORROWING |
2912.773 |
2219.742 |
1453.400 |
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DEFERRED TAX LIABILITIES |
175.421 |
148.111 |
0.000 |
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TOTAL |
6235.220 |
4311.714 |
2559.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3615.684 |
1891.972 |
885.600 |
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Agents held for Disposal |
12.550 |
0.000 |
0.000 |
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Capital work-in-progress |
210.330 |
479.153 |
593.500 |
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INVESTMENT |
226.456 |
173.986 |
31.400 |
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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 |
874.607
|
826.464 |
694.700 |
|
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Sundry Debtors |
837.190
|
666.300 |
485.100 |
|
|
Cash & Bank Balances |
98.822
|
104.949 |
117.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
649.199
|
416.148 |
245.600 |
|
Total
Current Assets |
2459.818
|
2013.861 |
1543.200 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
717.313
|
589.143 |
628.500 |
|
|
Provisions |
55.098
|
73.766 |
53.000 |
|
Total
Current Liabilities |
772.411
|
662.909 |
681.500 |
|
|
Net Current Assets |
1687.407
|
1350.952 |
861.700 |
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MISCELLANEOUS EXPENSES |
482.793 |
415.651 |
187.700 |
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|
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TOTAL |
6235.220 |
4311.714 |
2559.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3492.065 |
3140.927 |
2290.300 |
|
|
Other Income |
28.620 |
10.341 |
110.000 |
|
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Total Income |
3520.685 |
3151.268 |
2400.300 |
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|
|
|
Profit/(Loss) Before Tax |
254.359 |
408.834 |
317.800 |
|
|
Provision for Taxation |
60.721 |
60.966 |
53.100 |
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Profit/(Loss) After Tax |
193.638 |
347.868 |
264.700 |
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Earnings in Foreign Currency : |
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|
|
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|
FOB value of Goods |
1553.281 |
1507.068 |
0.000 |
|
|
FOB value of Services |
7.724 |
35.283 |
0.000 |
|
Total Earnings |
1561.005 |
1542.351 |
0.000 |
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Imports : |
|
|
|
|
|
|
Raw Materials |
1149.600 |
978.312 |
0.000 |
|
|
Capital Goods |
24.707 |
56.506 |
0.000 |
|
Total Imports |
1174.307 |
1034.818 |
0.000 |
|
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|
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|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
279.059 |
196.094 |
69.500 |
|
|
Administrative Expenses |
110.115 |
96.656 |
0.000 |
|
|
Raw Material Consumed |
2269.961 |
2047.565 |
1630.100 |
|
|
Excise Duty |
0.000 |
0.000 |
76.500 |
|
|
Employee Cost |
0.000 |
0.000 |
35.400 |
|
|
Selling and Distribution Expenses |
73.951 |
85.217 |
174.900 |
|
|
Financial charges |
258.757 |
124.520 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(93.300) |
|
|
Research and Development Expenses |
54.451 |
63.319 |
0.000 |
|
|
Loss on Sale of Fixed Assets |
6.814 |
5.360 |
0.000 |
|
|
Provision for Doubtful Debts |
0.943 |
1.569 |
0.000 |
|
|
Interest |
0.000 |
0.000 |
83.000 |
|
|
Misc. Expenditure Written Off |
87.526 |
36.839 |
21.300 |
|
|
Power & Fuel |
0.000 |
0.000 |
44.100 |
|
|
Depreciation & Amortization |
122.433 |
81.088 |
41.000 |
|
|
Other Expenditure |
2.316 |
4.207 |
0.000 |
|
Total Expenditure |
3266.326 |
2742.434 |
2082.500 |
|
SUMMARISED RESULTS
|
PARTICULARS |
31.03.2008 (Full Year) |
|
|
Full Year |
|
Sales Turnover |
4550.400 |
|
Other Income |
0.000 |
|
Total Income |
4550.400 |
|
Total
Expenditure |
3717.200 |
|
Operating Profit |
833.200 |
|
Interest |
292.700 |
|
Gross Profit |
540.500 |
|
Depreciation |
151.400 |
|
Tax |
65.500 |
|
Reported PAT |
310.200 |
|
Dividend (%) |
10 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
1.27 |
1.21 |
1.25 |
|
Long Term
Debt-Equity Ratio |
0.98 |
0.95 |
0.96 |
|
Current Ratio |
1.44 |
1.51 |
1.51 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.41 |
2.05 |
2.63 |
|
Inventory |
4.19 |
4.25 |
3.69 |
|
Debtors |
4.74 |
5.62 |
6.53 |
|
Interest Cover
Ratio |
1.98 |
4.28 |
4.83 |
|
Operating Profit
Margin(%) |
17.85 |
19 |
19.29 |
|
Profit Before
Interest And Tax Margin(%) |
14.41 |
16.49 |
17.5 |
|
Cash Profit
Margin(%) |
8.87 |
13.26 |
13.35 |
|
Adjusted Net
Profit Margin(%) |
5.44 |
10.76 |
11.56 |
|
Return On
Capital Employed(%) |
12.39 |
17.46 |
22.85 |
|
Return On Net
Worth(%) |
9.65 |
23.42 |
33.34 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject, a part of the Rs.4940 Millions Ind Swift Group, is
based at Chandigarh, India. It has been promoted by Ind-Swift Ltd in 1995 in
joint venture with the Punjab State Industrial Development Corporation(PSIDC).
Subject later purchased the PSIDC equity to emerge as a single largest
shareholder, holding 24.31% equity in the company. The company commenced
production from 1997. The company has emerged as one of the largest
manufacturer of APIs (active Pharmaceutical ingredients) and advanced
intermediates. The company at present is among the leading global manufacturers
of Clarithromycin/granules, Atovastatin, Fexofenadine, Clopidogrel and
Nitazoxanide. The company has its plants located at Patiala, Punjab and at
Jammu, J and K with nine manufacturing blocks. The company possesses a
cumulative reactor capacity of 150 TPA per annum, one of the largest in North
India.
The company went public in 1997 and concentrated on the manufacture of Active
Pharmaceutical Ingredients(API). The company has established a strong
reputation as innovators in the Indian pharmaceutical industy. It's strength in
organic synthetic chemical resulted in the company emerging as the pioneer for
a number of productsboth in the National and International markets.
In 1998-99, the company launched two molecules, Clarithromycin and
Roxithromycin. The companies inhouse Rand D developed Clarithromycin Granules
for the first time in India.
Subject enjoys around 15% share of world market as on March 2003. The company
has also commercialized 6 new products during FY 2002-03.
It's plants are confined to USFDA norms and practices cGMP thus enablingthe
company to penetrate the regulated markets like US, Europian Union etc.
During 2003-04, the company allotted 13,40,000 equity shares on preferential
basis to private corporate bodies at a price of Rs.25 per share to raise
Rs.33.500 millions. These funds were utilized for the up-gradation of the R and
D and manufacturing facilities to meet long-term working capital requirements.
With the members approval the board issued 12,27,375 equity shares at a price
of Rs.32 per share upon conversion of one percent preference shares.
In 2004-2005, the capacity for production of Bulk Drugs, Intermediates,
Solvents & Others stands at 150000 kgs.
The company has announced that as part of the on-going expansion plan the
company has put to operation three new manufacturing facilities covered under
its Rs 1 bn. expansion plans. The Three facilities are a dedicated facility to
manufacture Statins (installed capacity of 40TPA), a new dedicated facility for
an Anti Histamine drug (installed capacity 27 TPA) and a New API facility at
Samba, Jammu (installed capacity of 50TPA). The new facility at Jammu is
situated in Tax free zone and shall be entitled to tax holiday for a period of
ten years. The Company's new state of the art Research and Development center
is also ready and is expected to be operational by September 2005. The new R
and D center would have all the latest equipments and gazettes to facilitate
development of non-infringing processes, to generate data as per ICH guidelines
and to prepare DMFs in CTD format for US and other regulated markets. Company
also plans to increase its present R&D strength of 85 to 150 scientists by
2006.new state of the art R and D center.
The Company has recently inked a Joint Venture with an Iranian Company. The
Joint Venture will primarily focus on manufacturing of APIs in Iran and its
marketing in the Middle East and some part of the Europe. The Company will be
providing the necessary Know-how and all the intermediates of the JV.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure and
Developments
As per IMS Health, the 2006 global pharmaceutical market grew 7.0 percent, to $
643 billion. A rebound in growth to 8.3 percent in the U.S fueled by an
increase in prescribing volume due to Medicare Part D and innovations in
oncologics that drove strong 20.5 percent global growth in that therapeutic
class, were key contributors to the market's expansion.
In 2006, specialist-driven products contributed 62 percent of the market's
total growth, compared with just 35 percent in 2000. A number of primary care
classes are experiencing slowing or below market-average growth due to the
entry of lower-cost, highquality generics and switches to over-the-counter
product. These classes include proton pump inhibitors, and antidepressants.
Last year, generics represented more than half of the volume of pharmaceutical
products sold in seven key world markets - U.S., Canada, France, Germany,
Italy, Spain, and the U.K. This trend reflects the changing balance between new
and old products and the growing 'genericization' of many primary care
categories.
In 2006, North America, which accounts for45 percent of global pharmaceutical
sales, grew 8.3 percent to $290.1 billion, up from 5.4 percent the previous
year. This strong growth was due to the impact in the U.S. of the first year of
the Medicare Part D benefit and the resulting increase in prescribing volume,
as well as solid 7.6 percent growth in Canada. The five major European markets
(France, Germany, Italy, Spain and the U.K.) experienced 4.4 percent growth to
$123.2 billion, down from 4.8 percent growth in 2005, the third year of slowing
performance. Sales in Latin America grew 12.7 percent to $33.6 Billion, while
Asia Pacific (outside of Japan) and Africa grew 10.5 percent to $66
billion.
Japan experienced a 0.4 percent decline from a year earlier, to $64.0 billion,
the result of the government's biennial price cuts. Pharmaceutical sale in
China grew 12.3 percent to $13.4 billion in 2006, compared with a 20.5 percent
pace the prior year. This slowdown in growth was due to the government's
introduction of a campaign to limit physician promotion of pharmaceuticals.
India was one of the fastest growing markets in 2006, with pharmaceutical sales
increasing 17.5 percent to $7.3 billion.
Last year, India transitioned from a'developing' market to an emerging one,
with many multi-national pharmaceutical companies tapping into the huge
potential this market offers. Several factors, including the acceptance of
intellectual property rights, a robust economy and the country's burgeoning
healthcare needs have contributed to accelerated growth in India.
Overall, 27 percent of total market growth is now coming from countries with a
per-capita Gross National Income of less than $20,000. As recently as 2001,
these lower-income countries contributed just 13 percent of growth.
Opportunities
Demand for effective medicines is rising, as the population ages, new medical
needs emerge and the disease burden of the developing world increasingly
resembles that of the developed world. The E7 countries Brazil, China, India,
Indonesia, Mexico, Russia and Turkey are also becoming much more prosperous,
with real gross domestic product (GDP) projected to triple over the next 13
years. By 2020, the E7 could account for as much as one-fifth of global
sales.
Despite continued expansion of the pharmaceutical market, underlying dynamics
continue to alter the landscape. In 2006, products with sales in excess of $18
billion lost their patent protection in seven key markets - including the U.S.,
which represents more than $14 billion of these sales. With high uptake of
lower-cost therapies replacing branded products in classes such as lipid
regulators, antidepressants, platelet aggregation inhibitors, antiemetics and
respiratory agents, generics will assume a more central role as payers seek to
restrict the growth of healthcare expenditures. Another factor influencing the
market is the increasingly active role of patients as they take charge of their
health and demand greater access to therapies that will improve or prolong
their lives.
These shifts are placing new demands on pharmaceutical and biotech
companies of all sizes. The most successful manufacturers will be those that
focus on payers and patients, without losing perspective on the crucial role of
physicians.
To sustain growth, pharmaceutical companies need to stay ahead of the dynamics
that are rebalancing the marketplace worldwide. This requires a sharper focus
on realizing productivity gains from their sales, marketing and launch
investments, a comprehensive assessment of their R&D and portfolio
strategies to support opportunities in both emerging and mature markets, and a
commitment to better demonstrate the value of the medications among key
interest holders.
Financial
Performance with respect to Operational Performance Sales
The gross sales revenue increased from Rs. 3234.16 Million in 2005-06 to Rs.
3561.06 Million in 2006-07 recording a growth of 10.11% over the previous
financial year.
Revenue from Domestic sales increased from Rs.1674.07 Million to Rs. 2017.43
Million recording a growth of 20.51%. The revenue from exports decreased by
1.06%, ie., from Rs.1560.09 Million in the previous year to Rs. 1543.63 Million
in the year 2006-07.
The Company experienced pricing pressure on its products during the year. In
volume terms the sales increased from 194.04 Tonnes in 2005-06 to 227.51 Tonnes
in 2006-07.
Exports constitute about 43.35% of the company's gross sales. The company has
presence in 45-50 countries-principally European countries, Asian Countries,
Latin American countries and Middle East.
Review of the Key Export Markets
USA
US continues to be a major thrust area for the Company. Ind Swift Laboratories
Inc. (ISL, Inc.), a wholly owned subsidiary of Company, was incorporated in USA
in March, 2004 to facilitate the entry of the Company to the regulated markets.
ISL Inc. has been instrumental in triggering and completion of USFDA for the
Company.
Company has thru its subsidiary tied up for 8 of its products in the US markets
the supplies will commence after the patent expiry. Company has also bagged an
agreement with a biotech company to supply API's on an exclusive basis for
their ongoing NDA project. In next 4-5 years, Company expects US to contribute
to 20% of the Revenues
Latin America
In the last few years, the world has witnessed the great pace of economic
development in Latin American region wherein, majority of the countries have
demonstrated a record economic boom. In the light of exploring more business
opportunities, Subject has thus, been able to effectively carve out a niche for
itself within this region, with its ability to provide a strong technical
support to its customers.
Brazil
Brazil has the distinction of being the largest pharmaceutical market in Latin
America. Last fiscal year witnessed, Subject, consolidating its position for
its products mainly, Fexofenadine, Clarithromycin powder and Granules with the
leading generic companies. With patents nearing expiry for few products from
their range in Brazil, they have successfully been able to enter into the
tie-ups with generic companies with Ind-Swift Labs as the exclusive primary
source. The strategy of laying focus on the specific customer has been the key
to the consistent growth in this market.
Mexico
In the year 2004-2005, they started our operations in Mexico, which has started
yielding results. With a turnover of more than 1 million USD, within the first
year of operation, the market further, opens up new avenues of growth. They
have attained the position of market leader for our macrolide range of
products, and with the considerable interest developing on Clopidogrel and
Nitazoxanide, they aim to maximize business from other products in the years to
come.
Argentina
Despite economic slowdown in Argentina, subject has continued to strengthen its
position in the market. The market has a huge potential for all the products
manufactured by company. Besides their existing marginal market share for
Clarithromycin Powder, Clarithromycin Granules and Atorvastatin, Subject has
positioned its new range of products viz., Letrozole, Nitazoxanide &
Clopidogrel. In Chile, the pharmaceutical industry is mainly dominated by three
local pharma companies with which subject has entered into alliances for its
range of products. The market share in Columbia has further grown considerably,
in the lastfiscal year.
Uruguay and Paraguay
Although Uruguay and Paraguay are not very big markets but the countries offer
good potential for the range of products. Thus, in the year 2006-2007, the
company made a strategic move of entering Paraguay and within a year, Subject
emerged as a strong API player has been able to firm up its presence in these
markets within a short span of time.
Subject has been able to successfully mark its presence in the Central American
markets of Guatemala, and Costa Rica, as well and making inroads in the other
countries in the region.
Europe
In line with the vision of the company to have a progressive shift to the
regulated markets, the year witnessed a substantial share of revenues from the
European markets.
The European markets mainly include the 27 member states of the European Union.
Most countries in the European Union follow similar rules and regulations
pertaining to the Pharmaceutical sector. Whereas in 2004 the European Union
added 10 states including countries like Poland, Cyprus, Hungary, Slovenia,
beginning of 2007, two more countries Bulgaria and Romania joined the European
Union.
Subject recorded US$ 12 million in sales during the fiscal year with a large
part of it coming from the Central and Eastern European markets (CEE). Though
the sales from this region have grown over the years are the company has filed
more DMF's in the last few years and established new plants consistent with the
standards set by the European Union, the best is yet to be seen in the next few
years.
The grant of the Certificate of Suitability (COS) for Clarithromycin, company's
paramount product, opened many more opportunities not only in CEE but also West
Europe.
Subject is now exporting to more than 15 member states of the EU including some
of the highly potential markets such as Germany, France, Greece, Spain, Poland,
Romania and Slovenia. With an array of new product developments and patents for
several of the range of products expiring in the next 5 years, this region
promises to offer the necessary impetus to growth and expansion of the company.
The company is scheduled to file DMFs in CTD format for several new products in
Europe throughout next year.
WestAsia, North Africa and Gulf
Countries.
The WestAsia which is also sometimes referred to as the Middle East, which also
includes certain states of the African Continent has been the mainstay for the
company for past several years.
Turkey
Turkey one of the prime markets for the company witnessed many uncertainties in
the Pharmaceutical Industry, mainly due to economic and political decisions,
pertaining to the very important Social Security Health Insurance schemes.
Despite this, the company has maintained its share owing to the strong customer
base and long term contracts. The company recorded exports of US$ 7 Million in
the Turkish market. Things have already started looking-up for the current year
and we hope to cross the 10 Million Dollar mark during the next financial
year.
Iran
Iran will now be the next focus market for the company. With successful audits
from the Ministry of Health and Medical Education (MHME, Iran), the company is
all set to have a manifold increase in revenues from this very potential
market. The company shall also expand its product line through the newly setup
Joint Venture Company in Iran for the manufacture of APIs where a host of
products shall be manufactured in multi purpose plants, to cater to the growing
demands from the local and the Middle-East markets.
Jordan and Syria
Jordan and Syria are the other important markets in this region. Despite being
highly price sensitive, they continue to hold the leadership position for the
main APls in these markets.
North Africa (Egypt, Tunisia and Morocco)
North Africa, comprising of Egypt, Tunisia and Morocco are markets which are
more dependent on low priced pharmaceuticals owing to their Socio-Economic
conditions. Some of their products such as Nitazoxanide which is an
anti-diarrheal product and Roxithromycin, a macrolide antibiotic hold good
promise in these markets.
UAE, Oman, Yemen and Saudi Arabia
The company has also established its customer base in the Gulf countries such
as UAE, Oman, Yemen and Saudi Arabia with regular supplies to the Top generic
companies in these markets. The company relies and lays great importance to
this region which has all along contributed to the revenues, before the company
entered the highly regulated markets of Europe and the US. The customers in
these markets now enjoy the advantage of receiving their product at competitive
prices from a fully regulated manufacturing facility.
Asia Pacific
Asia Pacific Pharmaceutical market is a unique mix of non-regulated, soft regulated
and regulated markets. In line with the vision of leveraging maximum business
opportunities existing in the Asian Market, Subject, has not only, effectively
penetrated in non-regulated market segment which comprises of Pakistan,
Bangladesh, Malaysia, Taiwan, Singapore and Philippines, but it is also now,
venturing into the Japanese market, which is a highly regulated market.
With the increasing dominance of Chinese manufacturers, due to the low price
advantage which they offer to the market, Subject has efficiently emerged as a
strong contender. Despite of its strong focus on quality and stress on meeting
delivery time lines, Subject too has been offering a competitive advantage. The
company has thus, created a niche for itself in the market and in the years to
come, it aims to capture the maximum market share.
Korea
Korea has presented itself as another key market in the year 2006-2007, wherein
they were able to successfully register our macrolide range of products. They
are the leading suppliers of Clarithromycin granules and are actively working
with major companies in Korea.
Japan
The last financial year also witnessed our entry into the Japanese market with
our Clarithromycin powder. They have reached the final stages of negotiations
with the major Japanese generic companies to get ourselves approved, either as
primary or secondary sources of Clarithromycin powder. Japan and Korea are also
the markets, which hold tremendous potential for CUSTOM SYNTHESIS and CONTRACT
MANUFACTURING. Ind-Swift with its strong R and D and core production
capabilities has generated substantial interest in some of the companies in
these markets.
Vietnam, Malaysia, Indonesia and
Philippines
Vietnam, Malaysia, Indonesia and Philippines are the other countries where they
have put in increased efforts to enter into strategic alliances with strong
local companies for the promotion of the API's.
Backed with the efficient support from our R and D and quality control team,
Subject has been able to build a favorable image and a trustworthy reputation
with its customers. Today, the client list includes some of the highly reputed
and well established pharma companies. In spite of the cut throat competition
in highly price sensitive markets such as Pakistan and Bangladesh, Ind-Swift
has been able to dominate the market and has further, been successful in
creating a strong customer base in these markets.
Material
consumed
The cost of materials consumed during the year has increased during the year by
10.86% over the previous financial year. The company procures its material
inputs from domestic and international sources. More than 25% of the raw
materials and intermediates are sourced from Chinese pharmaceutical companies.
For this purpose, the company had set up an office in China, which enables the
company to procure quality material. In addition, the company also sources
material from the US and other European countries.
Power Costs
Power costs have increased by 33.09% over the previous year, largely due to
increase in scale of operation. However, the company has taken a number of
initiatives during the year to reduce its power costs.
i. Higher rating motor of Boiler ID Fan and FD fan replaced with proper
rating motors resulting in 40% energy saving and 50% reduction in connected
load.
ii. Optimized the flow rate of cooling water pumps with variable
frequency drives resulting in 40% energy saving.
iii. Traditional lamps replaced by CFL, Metal Halide and Energy efficient
tube light fitting thereby reducing the energy consumption by 65% without
affecting the illumination level.
iv. Fuel cost saved by 70% in steam generation by arrangement of low cost
fuel (Pet Coke) in place of furnace oil.
v. Fan fitted induced draft cooling tower replaced with fan less Jet
water cooling tower of DG Sets result in 100% energy saved consumed by
fans.
Personnel
Costs
The Personnel cost increased by 41.86% from Rs.64.00 Millions in 2005-06 to Rs.90.79
Million in 2006-07. Increase in personnel cost was mainly due to new staff
recruitments and Annual wages increase for all he employees of the Company. The
total number of employees at the end of the year stands at 695.
The Company has also filed over 72 DMFs with the US,
Canadian, UK and European Drug Authorities. The DMF filing will facilitate the
launching of the drugs by the Company upon the patent Expiry in those
countries.
Manufacturing,
Administration, Selling and Distribution expenses
Manufacturing expenses during the year increased by 42.31% to Rs.279.06 Million
from Rs. 196.09 Million in the previous year. The Administration expenses
increased by 13.93% from Rs. 96.66 Million to Rs.110.12 Million. Selling and
distribution expenses decreased from Rs.85.21 Million to Rs.73.95
Million.
Fixed
Assets
Fixed Asset during the end of the Financial Year 2006-07 stood at 3838.57
Million mainly on account of addition of Rs.1467.4 Million on account of
revaluation of fixed assets of the Company situated at its Derabassi facility.
Revaluation was carried out mainly to take into account the appreciation in the
value of the fixed assets of the Company.
Company's
Outlook
Product Launches
- The Company has a robust product pipeline of 25 products which includes
blockbuster drugs like Clarithromycin (Macrolide Anti-biotic), Atorvastatin
(Anti-Cholestrol), Fexofenadine (Anti-Histamine), Clopidogrel (Anti-Cholestrol)
Nitazoxanide (Anti-Diarrheal), Pioglitazone (Anti-Diabetic), Letrozole and Anastrozole
(Anti-Cancer) Venlafaxine (Anti-Depressants) Quetipine and Aripirazole
(Anti-Pshychotic)
- 8 new products were successfully Developed in the R&D which
included products from the Anti-Obesity, Anti-ischemic, Anti-migrane, Anti-diabetic,
Anti-cholestrol therapeutic segments.
- The Company will be launching two new products-thus becoming the third
company, globally, to launch these APIs (STATINS range) with a combined market
size in excess of US$ 15bn expected to drive the Company's business
significantly.
Accreditions
- During the year Company received USFDA approval for its API
manufacturing facility at Derabassi Punjab for Clarithromycin. The Company has
already received the TGA and COS approval for its facilities. This will pave
the way for Company's entry into the regulated markets.
- The FDA inspection for Company's other API's are also expected shortly.
The Company is hopeful of getting 3-4 USFDA approvals for its product by the
year 2009-10.
OPERATIONS
AND BUSINESS PERFORMANCE
The company has achieved a turnover of Rs.3520.68 millions registering a growth
of 11.72% over the previous year's turnover of Rs. 3151.27 Millions. Profit
before tax decreased from Rs. 408.83 millions to Rs.254.36 millions and profit
after tax also decreased from Rs.347.87 millions to Rs.193.64 millions. A
provision for fringe benefit tax and deferred tax to the tune of Rs.1.41
million and Rs. 27.31 million was made during the financial year 2006-2007. The
Earning per share decreased to Rs.8.72 per share from Rs.17.52 per share.
Its exports during the financial year ending 31st March, 2007 were Rs.1543.63
millions as compared to Rs.1560.09 million recorded in the previous year.
SUBSIDIARY,
IND-SWIFT LABORATORIES INC.
The US subsidiary of the Company Viz. Ind-Swift Laboratories Inc. continued in
development stage. During the year, the total income and Net Loss after
providing provision for taxes of the company were US$ 3,30,128 and US$ 2,52,025
as compared to US$2,04,980 and US$ 2,89,011 in the previous year. The Annual
accounts and reports of the US Subsidiary along with statements pursuant to
Section 212 of the Companies Act, 1956, forming a part of this annual report
are enclosed.
FIXED ASSETS
·
Land Free Hold
·
Land Lease Hold
·
Factory Buildings
·
Office Buildings
·
R and D Buildings
·
Plant and Machinery
·
R and D Machinery
·
Electric Installations
·
Furniture and Fixtures
·
Office Equipments
·
Vehicles
·
R and D Technology
CONTINGENT
LIABILITIES
|
|
31.03.2007 (Rs,
in Millions) |
|
Letter of Credit against purchase of raw material: |
95.800 |
|
Bank Guarantees |
NIL |
|
Export bills purchased by bank : |
NIL |
|
Export obligation in respect of custom duty : |
30.043 |
|
Contingent Liabilities Tax, Excise Duty, Sales Tax and Service Tax |
Unascertained |
|
Corporate guarantees given on behalf of Ind Swift Limited |
0.990 |
|
Corporate guarantees given on behalf of Ind Swift Infrastructure and
Developers Limited of which, this company is principal shareholder having 49%
holding in Equity Share Capital |
300.000 |
·
Estimated amount of contracts remaining to be executed on capital not
provided for (Net of advances) Rs.42.607 millions. (Previous year Rs.26.138
millions)
·
In the opinion of the Board, the Current Assets, Loans and Advances
shown in the Balance Sheet have a value on realization in the ordinary course
of business at least equal to the amount at which they are stated.
·
During the uear, Assets Comprising of Land, Building, Machinery of
Derabassi Unit have been revalued by the approved External Valuer to reflect
the market value and accordingly the appreciation amounting to Rs.1013.873
millions have been credited to Capital Reserve Account (Re-valuation Reserve A/c)
as on 31.03.2007. No Depreciation for the year has been provided on such amount
since the re-valuation has been made on 31.03.2007.
AS PER WEB SITE:
Ind-Swift Laboratories Limited undergoes successful USFDA audit
Subject has
successfully completed USFDA inspection for Clarithromycin, Active
Pharmaceutical Ingredient (API) manufacturing facility. Ind-Swift Laboratories
Inc. USA ( ISL INC.), a wholly owned subsidiary of Company was instrumental in
achieving this milestone, said N.R. Munjal, Managing Director.
This would enable us to roll out the API’s in the North American market. ISL
Inc. has partnered with top US generic companies for generic pharmaceutical
business. They are also working on alliances with biotechnology companies in
North America which will fuel our long term growth strategy said Vikas
Narendra, President Ind-Swift Laboratories Inc.
Subject has already filed 10 Drug Master Files (DMF’s) and
plans to file a significant number of DMF’s with USFDA during next financial
year. This will pave way for the company to enter the US market, which is
biggest generic drugs market in the World.
Subject has a significant presence in more than 45 countries, in addition to a
strong position in the domestic market. Its research and development centre
employs over 150 scientists.
Clarithromycin is a Macrolide Antibiotic Molecule used in the treatment of the
lower respiratory tract infections. The Macrolides have a World Market Size of
US$ 1.3 bn . Subject is one of the largest manufacturer of Clarithromycin after
the innovator.
The facility has already received the COS and TGA certifications . The Company
is also at an advanced stage of launching its drugs in the Japanese Markets .
Press Release
Ind-Swift Labs raises US$ 10.62 mns thru GDR issue
To augment the resources for the expansion plans, Ind-Swift Laboratories
has successfully raised US $ 10.625 Million through the issue of 25 Lacs Global
Depository Receipts (GDRs), each representing one underlying equity share of
Rs.10/- each. The GDRs will be listed shortly on the Luxembourg Stock Exchange.
M/s Elara Capital Advisors Limited, London acted as Lead Manager to the issue.
The GDR was priced at $ 4.25 per GDR. Commenting Mr. V.K. Mehta, Jt. Managing
Director said that the response to the first international offering of the
group was tremendous.”
The major investor for the GDR of the company are : Sloane Robinson, London (
9.41 lacs GDRs) , Ward Ferry Fund, Hongkong ( 4.70 lacs GDRs) , Goldman Sacchs,
Cayman Islands ( 0.353 Millions GDRs) .
The company is in the process of completing its first phase of the
expansion plans involving an investment of Rs.100.000 Millions. Under phase– I
it has already put to operation three new manufacturing units all complying to
FDA standards and a state of art R&D center is expected to be operational
by Sept. 05.
The Phase-II of the expansion plan again involving a sum of Rs. 100.000
Millions is expected to commence in September/
October,05.
ISLL is positioning itself as a primary supplier of APIs to generic players in
regulated markets. The company already has a good presence in unregulated /
soft regulated markets– it is now in negotiations with global players for the
supply of high potential drugs like Clarithromycin, Atorvastatin and
Fexofenadine to regulated markets on patent expiry. ISLL has already built up
sizable capacities in all these molecules.
The company has posted a growth of 251.26 per cent in its net profit that
surged from Rs.28.60 Million to Rs.100.44 Million during the first quarter of
the fiscal 2005-06, on a sales turnover of Rs.799.74 Million, up 81.76 per cent
from Rs.440.00 Million as compared to the corresponding quarter of the last
year. With this, the earnings per share (EPS) for the quarter too has shot up
from Rs.1.83 to Rs.5.46 per share on the expanded capital base of Rs.184
Million. During the quarter, exports to soft regulated markets contributed
39.44 per cent to the company’s turnover.
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.42.47 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.66.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
68 |
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. |
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 |
|