MIRA
INFORM REPORT
|
Report Date : |
05.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
AVENTIS PHARMA
LIMITED |
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Registered Office : |
Aventis House, 54/A,
Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400 093, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
02.05.1956 |
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Com. Reg. No.: |
11-9794 |
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CIN No.: [Company
Identification No.] |
L24239MH1956PLC009794 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH00271F |
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PAN No.: [Permanent
Account No.] |
AAACH2736F |
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Legal Form : |
It is a public limited
liability company. The company’s shares are listed on the Stock Exchanges. The company is
now a subsidiary of Aventis Pharma Holding GmbH, Germany. |
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Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular,
Antibiotics, Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine
Segments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 35000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is
now a subsidiary of Aventis Pharma Holding GmbH, Germany. Available
information indicates high financial responsibility of the company. Financial
position of the company is good. Payments are correct and as per commitment. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Aventis House, 54/A,
Sir Mathuradas Vasanji Road, Andheri (East), Mumbai- 400 093, Maharashtra,
India |
|
Tel. No.: |
91 – 22 – 2283
0607 / 2283 1189/2284 4562 / 28216622 (Ext. 811) / 28242260 / 28278000 |
|
Fax No.: |
91 – 22 – 2282
9532 /2204 6188/2285 0435 / 28242261 /
28370939 / 28278110 |
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E-Mail : |
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Website : |
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Factory 1 : |
3501-15, 6310,
B-14, GIDC Estate, Ankleshwar – 393 002, Gujarat, India |
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Factory 2 : |
GIDC, Plot No.
L-121, Phase III, Verna Industrial Estate, Verna, Goa – 403 722, India |
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Regional
Offices : |
Located at : ·
Mumbai ·
Delhi ·
Chrnnai ·
Kolkata ·
Lucknow ·
Hyderabad |
DIRECTORS
|
Name : |
Dr. Vijay Mallya |
|
Designation : |
Chairman |
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|
Name : |
Mr. Alexandre De
Carvalho |
|
Designation : |
Managing Director
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Name : |
Mr. J M Gandhi |
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Designation : |
Director |
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Name : |
Mr. S R Gupte |
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Designation : |
Director |
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Name : |
Mr. M Lienard |
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Designation : |
Director |
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Name : |
Mr. F. Martinez |
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Designation : |
Director |
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Name : |
Mr. A K R
Nedungadi |
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Designation : |
Director |
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Name : |
Mr. A. Peychaud |
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Designation : |
Director |
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Name : |
Mr. J Silvestre |
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Designation : |
Director |
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Name : |
Mr. M. G. Rao |
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Designation : |
Alternate
Director to Mr. A. Peychaud |
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Name : |
Dr. Sandeep
Bhattacharya |
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Designation : |
Alternate
Director to Mr. J. Silverstre |
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Name : |
Mr. S. Ayyangar |
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Designation : |
Alternate
Director to Mr. M. Lienard |
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Name : |
Mr. P. Vaishnav |
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Designation : |
Alternate
Director to Mr. F. Martinez |
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Name : |
Mr. A. Ponsin |
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Designation : |
Executive
Director |
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|
Name : |
Dr. Shailesh Ayyangar |
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Designation : |
Managing Director |
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Name : |
Mr. O .Charmeil |
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Designation : |
(Alternate Mr .M. Lienard) |
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Name : |
Mr. C .Ger main |
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Designation : |
Director |
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Name : |
Mr. J.M. Georges |
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Designation : |
Director |
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Name : |
Mr. Eric Le Bris |
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Designation : |
Director |
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Name : |
Mr. J. L Grunwald |
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Designation : |
Director
(Alternate to Mr. O/ Charmeil) |
KEY EXECUTIVES
|
Name : |
Mr. K Subramani |
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Designation : |
Company Secretary |
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Name : |
Crawford Bayley and Company |
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Designation : |
Solicitors |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Foreign Promoters (Hoechst GmbH / Sanofi-aventis) |
11543207 |
50.12 |
|
Indian Promoters |
2366460 |
10.28 |
|
Mutual Funds / UTI |
3315708 |
14.40 |
|
Foreign Institutional Investors |
2101566 |
9.12 |
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Banks |
27942 |
0.12 |
|
Insurance Companies |
1314309 |
5.71 |
|
Bodies Corporate |
442814 |
1.92 |
|
Trusts |
550 |
0.00 |
|
Individual holding upto Rs. 0.100 million in nominal capital |
1472404 |
6.40 |
|
Individual holding more than Rs. 0.100
million in nominal capital |
445216 |
1.93 |
|
Others (Clearing Member) |
446 |
0.00 |
|
Total |
23030622 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Allopathic Pharmaceutical Preparations such as Cardiovascular, Antibiotics,
Anti-Diabetic, Vaccines, Diuretic, Analgesic and Anti-Histamine Segments. |
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Products : |
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Brand Names : |
The company sells
its products under the various brand names such as : Ø Avil Ø Rabipur Ø Tarivid Ø Cardace Ø Cefrom Ø Granocyte Ø Campto Ø Taxotere Ø Insuman Ø Amaryl Ø Daonil Ø Allegra Ø Lasix Ø Tavanic Ø Targocid Ø Axem Hib Ø Frisium Ø Streptase Ø Clxane |
PRODUCTION STATUS
As on 31.12.2007
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
I. Basic Drugs: |
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|
|
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Pharmaceuticals |
|
Tonnes |
253.00 |
117.39 |
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II.
Formulations: |
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|
|
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|
Liquid Injectibles |
|
KL |
- |
288.38 |
|
Tables and dragees |
|
Mio Nos. |
7600.00 |
5736.12 |
|
Capsules |
|
Mio Nos. |
- |
159.29 |
|
Oinments |
|
Tonnes |
- |
393.37 |
|
Granules |
|
Tonnes |
- |
0.87 |
|
Drops, syrup and other liquids |
|
KL |
- |
414.75 |
GENERAL
INFORMATION
|
Suppliers : |
v Award Packaging v Laxmi Print Art v D M Printers v On-Line
Packaging Private Limited v Goa Art Printer v Laser Securities v Paras
Enterprises v Archana glass
Works Private Limited v Yagnesh printing
Company v Icon Prints
Private Limited v Vial Seal
Industries v Excellent
Printers v Canton
Laboratories Private Limited v Anupam Seal
Private Limited v Surya Packaging v Reliance
Packaging Industries v Supreme Packs v Rajdeep Plastic
Containers (India) Limited v Kishore ampoule
Private Limited v Aar Aar Private
Limited v Indian
Scientific Glass Industries v Award Offset
Printers and Packaging v Pioneer
Extruders Private Limited |
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No. of Employees : |
2065 |
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Bankers : |
v
Bank of
America, Mumbai v
BNP Paribas,
Mumbai v
Citibank N
A, Mumbai v
Deutsche
Bank, Mumbai v
Hongkong and
Shanghai Banking Corporation Limited, Mumbai v
State Bank
of India, Mumbai v
HDFC Bank Limited |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S . R. Batliboi and Company Chartered
Accountants |
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Solicitors: |
Crawford Bayley and Company Chartered Accountant |
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Parent Company
: |
Aventis Pharma
Holding GmbH, Germany |
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Memberships : |
Confederation of
Indian Industry |
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Group Companies: |
Europe Germany ·
Sanofi- Aventis Deutschland GmbH ·
Hoechst GmbH ·
Winthroop Arzeimittel GmnbH ·
Sanofi-Synthelabo GmbH ·
Sanofi-Syntelabo Holding GmbH Austria Sabnofi-Aventies GmbH Belgium Sanofi-aventis Belgium SANV Denmark Sanofi-Aventis Denmark A/S Spain Sanofi-Aventis OY France ·
Sanofi-Aventis Europe S.A.S ·
Sanofi-Aventis Participations S.A.S ·
Sanofi-Aventis Amerique due Nord S.N.C ·
Sunofi Pasteur Holding S.A ·
Aventis Pharma S.A ·
Sanofi Pasterur S.A ·
Aventis Agriculture S.A ·
Francopia S.A.R.L ·
Winthrop Medicaments S.A ·
Sanofi Chimie S.A ·
Sanofi Participations S.A.S ·
Sanofi-Aventis S.A ·
Sanofi-Aventis France S.A ·
Sanofi-Aventis Group S.A ·
Sanofi-Aventis Recherche and Developpment S.A ·
Sanofi Winthrop Industries S.A Greece Sanofi-Aventis A.E.B.E Hungary ·
Chinonin Pharmaceutical ands Chemical Works Company Limited ·
Sanofi-Aventis Private Company Limited Ireland · Cahir Insurance Limited · Carraig Insurance Limited · Sanofi-Synthelabo Ireland Limited Italy Sanofi-Aventis Spa Norway Sanofi-Aventis Norge AS Netherlands Sanofi- Aventis Netherlands BV Poland Sanofi-Aventis SP Zoo Portugal · Winthrop FArmaceutical Portual Lda · Sanofi- Aventis Produtos Farmaceuticos SA Czech Republic Sanofi-Aventis Sro United Kingdom · Sanofi-Aventis Holdings UK Limited · Sanofi Syntelabo Limited · Sanofi – Synthelabo UK Limited · Withrop Pharmaceuticals UK Limited · Fisons Limited · May and Baker Limited Russia ZAO Aventis Pharma Sweden · Sanofi- SA-AG · Sanofi-Aventis (Suisse) SA · Sanofi-Synthelabo CIS and Eastern Countries SA Turkey · Sanofi – Aventis Liaclari Limited, Sirketi · Winthrop IIac AS · Sanofi –Synthelabo IIac AS · United States of America · Sanofi-Aventis US Inc. · Sanofi- Synthelabo Inc. · Sanofi-Aventis US LLC · Aventis Pharmacetucals Inc. · Carderm Capital L.P · Carderm Investments Inc. · Aventisub Inc. · Aventis Holdings Inc. · Aventis Holdings Inc. · Avenisub II, Inc. · Starlink Logistics Inc. (SLLLI) · Armour Pharmaceutical Company · Sanofi Pasteru Inc. · Marieux America Holdings, Inc. · Aventis Pharmaceuticals Puerto Rico Inc. · Aventis Inc. · VaxServe Inc. · Sanofi-Aventis Puerto Rico Inc. South Africa · Sanfi- Aventis South Africa (Proprietory) Limited · Winthrop Pharmaceuticals (Proprietary) Limited Algeria · Sanofi-Aventis Algerie · Winthrop Pharma Saidal SPA Argentina Sanofi- Aventis Australia Pty. Limited Brazil Sanofi-Aventis Farmaceutical Limited Canada · Sanofi Pasteru Limited · Sanofi-Aventis Canada Inc. Chile Sanofi-Aventis de Chile S.A China · Sanofi-Aventis Pharma Beijing Company Limited · Hangzhou Sanofi-Aventis Minsheng · Pharmaceuticals Company Limited · Shenzhen Sanofi Pasteur Biological Products Company Limited Colombia · Winthrop Pharmaceuticals de Colombia S.A · Sanfoi-Aventis de Colombia S.A Korea Sanofi-Aventis Korea Company Limited Egypt Sanofi –Aventis del Eculador S,A Hong Kong Sanofi-Aventis Hong Kong Limited India · Sanofi-Synthelabo (India) Limited · Aventis Pharma Limited Sri Lanka Aventis Pharma Limited Indonesia · PT Sanofi-Aventis Indonesia · PT Aventis Pharma (Indonesia) Japan · Sanofi- Aventis KK · Sanofi-Aventis Meiji Pharma Company Limited · Winthrop Pharmaceutical Japan Company Limited · Sanofi-Aventis Yamanouchi Pharma KK Malayisa · Winthrop Pharmaceuticals (Malaysia) SDN, BHD · Sanofi-Aventis (Malaysia) SDN BHD Morocco · Maphar · Sanofi-Aventis Maroc Mexico · Sanofi-Aventis de Mexico SA de CV · Saofi-Aventis Winthrop S.A de C.V · Winthrop Pharmaceticals de Mexico SA de CV Panama Sanofi-Aventis del Pru S.A Philippines · Sanofi-Aventis Philipintes Inc. · Dom. Rep. · Sanofi-Aventis Republica Dominicana S.A Singapore · Aventis Pharma Manufacturing Pte. Limited · Sanofi –Aventis Singapore Pte. Limited Taiwan Sanofi- Aventis Taiwan Company Limited Thailand · Sanofi-Syntelabo (Thailand) Limited · Sanofi-Aventis Thailand Limited Tunisia · Sanofi Aventis Pharma Tunisie · Winthrop Pharma Tunisie Venezuela Sanofi – Aventis de Venezuela S.A Vietnam · Sanofi-Synthelabo Vietnam Pharmacetical · Shareholding Company · Sanofi-Aventis Vietnam Company Limited |
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Subsidiaries : |
v
Aventis Pharma Deutschland GmbH, Germany v
Aventis Pharma SA, France v
Aventis Pharma Limited, Thailand v
Aventis Pharma Pte Limited, Singapore v
Aventis Pharmaceuticals Inc, USA v
Aventis Inc, USA v
Gruppo Lepetit S.P.A., Italy v
Aventis Pharma ZAO, Moscow v
Aventis Pharma Limited, Sri Lanka v
Aventis Pharma Specialite, France v
Sanofi-Aventis, Philippines v
Aventis Pharma International SA, Vietnam v
Aventis Pharma Investment Limited, UK v
Fison-Holmes Chapel Limited, UK v
Aventis Pharma Bejing Co. Limited, China v
Aventis Bulk S.P.A., Italy v
Aventis Limited, Pakistan v
Hoechst Marion Roussel Limited, Bangladesh v
Aventis Pharma Senegal, Senegal v
Aventis Pharma Pty Limited, Australia v
Aventis Intercontinental, France v
Aventis Pharma Limited, Japan v
PT Aventis Pharma, Indonesia v
Aventis Pharma Exports Limited, UK v
Aventis Farma Sa Malaysia SON BHD, Malaysia v
Aventis Pharma Limited, Thailand v
Sanofi-Synthelabo (India) Limited, India v
Chiron Behring Vaccines Private Limited, India v
Aventis Pharma S.P.A., Italy v
Aventis Pharma (Pty) Limited, South Africa |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23,500,000 |
Equity shares |
Rs. 10.00 each |
Rs. 235.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,30,30,622 |
Equity shares |
Rs. 10.00 each |
Rs. 230.306 millions |
Note:
Of the above:
a)
18376831 ( 2006 : 18376831) Equity Share were
fully paid bonus shares by capitalization of reserve and security premium
b)
11538342 ( 2006 : 11538342) Equity Shares are
held by Hoechst Gmbh, Germany, holding company asn 4865 ( 2006: 4865) Equity
Shares are held by sanofi-Aventis SA, Frnace, Ultimate Holding Company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
230.306 |
230.306 |
230.306 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6838.225 |
5851.754 |
5007.531 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7068.531 |
6082.060 |
5237.837 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7068.531 |
6082.060 |
5237.837 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1356.667 |
1324.250 |
1404.997 |
|
|
Capital work-in-progress |
93.198 |
131.951 |
13.434 |
|
|
|
|
|
|
|
|
INVESTMENT |
53.088 |
53.088 |
53.088 |
|
|
DEFERREX TAX ASSETS |
126.166 |
131.089 |
57.216 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1807.985
|
1588.029
|
1363.369 |
|
|
Sundry Debtors |
575.052
|
684.867
|
510.332 |
|
|
Cash & Bank Balances |
3906.161
|
3861.173
|
2943.898 |
|
|
Other Current Assets |
77.918
|
139.199
|
113.865 |
|
|
Loans & Advances |
1159.332
|
668.551
|
487.309 |
|
Total
Current Assets |
7526.448
|
6941.819
|
5418.773 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1133.506
|
1104.200
|
845.576 |
|
|
Provisions |
953.530
|
1395.937
|
864.095 |
|
Total
Current Liabilities |
2087.036
|
2500.137
|
1709.671 |
|
|
Net Current Assets |
5439.412
|
4441.682
|
3709.102 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7068.531 |
6082.060 |
5237.837 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
8735.403 |
8839.344 |
8078.368 |
|
|
Other Income |
739.468 |
527.270 |
502.752 |
|
|
Total Income |
9474.871 |
9310.739 |
8409.647 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2228.411 |
2497.054 |
2363.893 |
|
|
Provision for Taxation |
784.165 |
804.127 |
913.059 |
|
|
Profit/(Loss) After Tax |
1444.246 |
1692.927 |
1450.834 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
NA |
NA |
2425.430 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
1472.855 |
1486.439 |
|
|
Stores & Spares |
NA |
1.723 |
1.766 |
|
|
Capital Goods |
NA |
12.578 |
9.209 |
|
|
Finished Goods |
NA |
707.331 |
617.308 |
|
Total Imports |
NA |
2194.487 |
2114.722 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Materials |
4225.203 |
4286.253 |
3790.637 |
|
|
Personnel Expenses |
1037.205 |
785.128 |
734.752 |
|
|
Operating and other Expenses |
1797.589 |
1562.021 |
1348.093 |
|
|
Depreciation & Amortization |
184.539 |
178.465 |
171.813 |
|
|
Interest |
1.924 |
1.818 |
0.459 |
|
Total Expenditure |
7246.460 |
6813.685 |
6045.754 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2008 1st
Quarter |
30.06.2008 2nd Quarter |
30.09.2008 3rd
Quarter |
|
Sales Turnover |
2169.000 |
2486.000 |
2479.000 |
|
Other Income |
189.000 |
196.000 |
253.000 |
|
Total Income |
2358.000 |
26852.000 |
2732.000 |
|
Total Expenditure |
1764.000 |
1982.000 |
2000.000 |
|
Operating Profit |
594.000 |
700.000 |
732.000 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Gross Profit |
594.000 |
700.000 |
732.000 |
|
Depreciation |
51.000 |
44.000 |
43.000 |
|
Tax |
202.000 |
236.000 |
243.000 |
|
Reported PAT |
345.000 |
418.000 |
446.000 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
15.24
|
18.18 |
17.25 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
25.51
|
28.25 |
29.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.09
|
30.21 |
34.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.41 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.29
|
0.41 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.61
|
2.78 |
3.17 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is a pharmaceutical company that discovers, develops
and markets branded prescription drugs and vaccines to protect and improve the
quality of life of people around the world. The company provides medicines for
the treatment of patients in several therapeutic areas such as Cardiovascular
Disease, Thrombotic Diseases, Metabolic Disorders, Oncology, Disorders of the
Central Nervous System, Internal medicine and Vaccines. They are having their
manufacturing facilities at Ankleshwar in Gujarat and Verna in Goa. The company
also manufactures their products on loan license which are manufactured in
accordance with the same quality standards as those prevalent at their
manufacturing sites.
Subject
was incorporated in
May 1956 under the name Hoechst Fedco Pharma Private Limited Over the years,
the name was changed to Hoechst Pharmaceuticals Private Limited, Hoechst India
Limited and Hoechst Marion Roussel Limited Sanofi-aventis, one of the world's
leading pharmaceutical companies, and their 100% subsidiary, Hoechst GmbH, are
the major shareholders of Aventis Pharma Limited and together hold 50.12% of
their paid-up share capital.
During the year 1997-98, the joint venture company Chiron Behring
Vaccines Private Limited started to manufacture anti-rabbies vaccine 'Rabipur'.
Roussel India Limited was amalgameted with the company with effect from April 1
1997 and Hoechst Nepal (Private) Limited, a subsidiary company in Nepal has
been wound up during the year. During the year 1999-2000, Aventis has launched
anti-diabetic Amaryl broad spectrum anti-infective Tavanic and line extension
of anti-hypertensive Cardace H.
In the year 2001, Rhone-Poulenc Rorer (India) Private
Limited was amalgamated with the company. The company name was changed from
Hoechst Marion Roussel Limited to Aventis Pharma Limited with effect from July
11 2001. In July 2003. the company launched Lantus, the world's first and only
once a day insulin and in December 2003, Actonel, designed for the treatment of
osteoporosis was launched.
In the year 2004, the company came under the control of Sanofi-Synthelabo, now
called sanofi-aventis which acquired indirect control 50.1% of the company's
paid-up share capital. In the year 2006, the company completed the project for
setting up additional facilities for manufacturing Combiflam Tablets in
Ankleshwar, Gujarat.
In the year 2007, the company launched Cardace H 10 mg as a comprehensive
cardiovascular treatment option in hypertension at risk patients. In May 2007,
the company launched a line extension, Amaryl M. A new granulation train
dedicated for production of Combiflam tablets was installed in Ankleshwar. This
product which was being manufactured partly in a toll manufacturing site is now
planned to be manufactured entirely in Ankleshwar.
The company brands namely Combiflam, Cardace, Rabipur, Amaryl, Avil and
AllegraTM feature in the top 100 brands of the retail market. In that, Cardace
continues to be the number one cardiovascular brand in the Indian
pharmaceutical market.
The company plans to upgrade the capacities in Ankleshwar for the manufacture
of Combiflam. Also, the Ankleshwar API plant will commence manufacture of
Pentoxifylline which was so far imported and is the raw material for
manufacture of Trental. The product will also be exported to Hungary.
In April 2008, the company has launched a new prefilled diaposable
insulin pen, SoloStar for use with the 24-hour insulin Lantus. This disposable
insulin pen is to be used for the treatment of hyperglycemia in people with
type 1 or type 2 diabetes
MANAGEMENT DISCUSSION AND ANALYSIS
PHARMACEUTICAL
MARKET:
Total pharmaceutical market (retail and hospital) in India during the year
ended 31st December 2007 was estimated at Rs. 335 billion. The retail market
grew by 13.4% over the previous year.
Key drivers have been new introductions (8%) and volumes (4.3%). Prices
contributed only 1.1% to the growth.
The Company has a market share of 2.1% in the pharma market (retail and
hospital). In the retail market the Company has a market share of 1.95%. In the
hospital market the Company has a market share of 3.9%.
Six brands of the Company, Combiflam(r), Cardace(r),
Rabipur(r), Amaryl(r), Avil(r) and AllegraTM feature in the top 100 brands of
the retail market.
SALES AND PROFITABILITY:
During the year ended 31st December 2007, the Company had net sales (excluding
Excise Duty) of Rs. 8735 million as against Rs. 8840 million during the
previous year. This represents a decline of 1.18%.
Profit before Tax decreased by 10.77% to Rs. 2228 million as against
Rs.2497 million in 2006.
The decline in both sales and profit was primarily due to the sharp
decline of 24.5% in exports.
DOMESTIC SALES REVIEW:
The Company's products and services continued to be greatly
appreciated by doctors and patients. In a highly competitive market, domestic
sales were Rs. 7031 million in 2007 as against Rs. 6582 million, a growth of
6.82%.
The growth would have been much higher but for the short supplies of the anti
rabies vaccine RABIPUR(r) (the largest selling product of the Company) which is
purchased by the Company from the joint venture Company, Chiron Behring
Vaccines Private Limited. Sales of SOFRAMYCIN(r) were also impacted as the raw
material which is imported for its manufacture was not available for the last
five months of the year.
Core strategic brands grew by 20%. Among the core brands,
AllegraTM, Amaryl(r), Actonel(r), Cardace(r) and Lantus(r) are retail dominant
brands with 95% contribution from retail sales. In the key therapeutic segments
that the Company participates in, these brands have grown faster than their
respective markets.
36% of the Company's portfolio comes under the purview of the current
Drug Price Control Order (DPCO).
Major Brand Performance Review:
Cardace(r) continues to be the number one cardiovascular brand in the
Indian pharmaceutical market.
During the year the Company launched Cardace(r) H 10 mg as a
comprehensive cardiovascular treatment option in hypertension at - risk
patients.
Lantus(r), the world's first once daily insulin glargine, had an impressive 64%
growth. It is now the fifth largest human insulin in India and has a market
share of 6.1% in its category. It is also the fifth most prescribed insulin by
diabetologists.
In a continuous effort to improve the Quality of Life (QOL) of diabetics, a
world class Autopen 24 in a starter pack with three cartridges was
launched.
Amaryl(r) grew by 23.9% in 2007. It is the leading oral anti diabetic with a
4.4% market share in the oral anti diabetic (OAD) market. It continues to be
one of the top ten prescribed brands in the OAD market.
In May 2007 the Company launched a line extension - Amaryl(r)M.
Clexane(r) had a growth of 4.9%. Growth was impacted as it operates in a highly
competitive market with a number of generic brands, seven of which were
launched in the last one year.
It ranks No. 1 in the injectable anti-coagulant market with a market
share of 29.5%.
AllegraTM group had another successful year with a growth of 35.9%
following up on the strong performance in 2006 when it had a growth of
30%.
AllegraTM group growth has been over twice the market growth.
AllegraTM is the No. 1 brand in the anti histamine oral solids market. In 2007
it entered the list of top 100 brands in the Indian pharmaceutical
industry.
AllegraTM Suspension which was launched in 2006 is currently at the No. 1
position in the anti histamine oral liquid market.
Targocid(r) recorded a lower than expected growth of 5.6%. Sales were impacted
in major institutions on account of its price.
It has a market share of 52% in its market - both retail and hospital
sales.
Actonel(r) had a growth of 31%. It has a market share of 9.5% in the
total osteoporosis market.
Arava(r) had a growth of 52.6%. It has a market share of 8.2% in the
Rheumatoid Arthritis market.
Steps taken by the Company's field force helped to acquire and retain
patients for both Actonel(r) and Arava(r).
Combiflam(r) range had a growth of 12.6%.
Avil(r) had a growth of 13%.
Both Combiflam(r) and Avil(r) maintained volume leadership and patient
penetration in their respective categories.
The Base Business division was able to effectively extend doctor coverage to
over 40,000 General Practitioners (GPs) across the country through a rural
field force driving prescription generation efforts on mature products. The
channel sales force team helped to service demand by reaching across to over
45,000 retail counters in the country. These efforts have helped the division
to achieve consistent growth in the last few years.
The Oncology Business Unit had a growth of 3%. Sales of one of the brands,
Granocyte(r) were impacted due to price reductions by generic
manufacturers.
EXPORT SALES:
Export Sales during the year were Rs. 1704 million, a
decline of 24.5% over 2006.
The sharp decline in exports was due to reduced purchases by customers in the
Company's traditional export markets and adverse exchange rates.
Exports to Russia of key products such as Festal(r), Baralgin(r) and Trental(r)
declined as they were removed from the Federal Reimbursement list. Exports of
other products grew but not sufficiently to compensate the decline in the key
products.
Exports to Sri Lanka grew by 8% due to a large order received for
Clexane(r).
Exports of Paracetamol tablets to the U.K. commenced in March 2007 and
are growing steadily.
Sourcing of products from the Company to sanofi-aventis group companies
declined by 28% due to reduced purchases of Ramipril Precursor (II/3) and
Glibenclamide bulk tablets.
72,000 kg of Lasamide was exported. Exports of Pheniramine Maleate
commenced to Egypt.
A temperature controlled export warehouse facility was commissioned in Taloja
near Mumbai to facilitate consolidation and stuffing of containers under excise
supervision.
Accounts receivable and inventory were under control.
MANUFACTURING OPERATIONS:
During the year, two line extensions were launched :
a) Amaryl(r) M 1mg and 2mg
b) Cardace(r)H 10mg
Exports of Paracetamol tablets to U.K. commenced from Goa in March
2007.
The Goa plant received approval from TGA (Australia).
Registration approval has also been received from MHRA, U.K. for export
of Cocodamol tablets from Goa.
A new granulation train dedicated for production of Combiflam(r) tablets
was installed in Ankleshwar. This product which was being manufactured partly
in a toll manufacturing site is now planned to be manufactured entirely in
Ankleshwar.
Highest ever production of tablets (3378 million tablets) in a year and
of Active Pharmaceutical Ingredients (API) (174 tonnes) was achieved in
Ankleshwar in 2007.
The API warehouse at Ankleshwar was expanded to cater to increased
volumes.
The Ankleshwar site which was awarded Environment Management System (EMS)
ISO 14001 was again re-accredited during 2007. This is valid till November
2010.
Continuous efforts were made on Health, Safety and Environmental protection.
The Ankleshwar site received a 'Climate Change Award' from the sanofi-aventis
group.
There were no reportable accidents and incidents of potential hazards
during the year.
The Company continued to extend support and voluntary services to society
for health related matters and to surrounding industries in cases of
emergencies.
JOINT
VENTURE WITH NOVARTIS VACCINES & DIAGNOSTICS INC. (formerly called Chiron
Corporation):
The Company had entered into a Joint Venture (JV) Agreement with Chiron
Corporation [now called Novartis Vaccines and Diagnostics Inc. (NVD)] in 1997
to form a Company to manufacture the anti rabies vaccine Rabipur(r).
In terms of the said JV Agreement, the JV Company, Chiron Behring Vaccines
Private Limited (CBVPL), granted the Company the exclusive right to distribute
Rabipur(r) in India and Nepal under a Marketing and Distribution Agreement
(Distribution Agreement) for an initial period of ten years upto 30th April
2008.
CBVPL gave a Notice of Non-Renewal of the Distribution Agreement. The Company
contended that the said Notice was void, illegal and of no effect. As CBVPL
refused to withdraw the said Notice, the Company had to file a suit in the
Bombay High Court against CBVPL, NVD and other Novartis affiliates challenging
the validity of the said Notice.
NVD and CBVPL filed Arbitration Petitions in the Bombay High Court for
referring the matter to arbitration under the Rules of Conciliation and
Arbitration of the International Chamber of Commerce. The High Court rejected
the Petitions. NVD and CBVPL have filed Special Leave Petitions in the Supreme
Court challenging the decision of the Bombay High Court, which Petitions are
yet to be admitted by the Supreme Court.
In the meantime, CBVPL has given an undertaking before the Bombay High Court that
it will not appoint another distributor for Rabipur(r) for the period after 1st
May 2008, till further orders of the Court in the Company's suit pending before
it.
PROSPECTS
FOR 2008:
The prospects for 2008 are expected to be reasonable, barring the risks of an
unfavourable Drug Price Control Order.
Export turnover is expected to be higher than that achieved in
2007.
The Company plans to launch line extensions of some products during
2008.
Export of Cocodamol tablets to U.K. from the Goa plant is likely to
commence in Q1 2008.
Export of Codydramol tablets is likely to commence from the Goa plant in
Q3 2008.
Export of Mersyndol range of tablets to Australia from the Goa plant is
likely to commence in Q3 2008.
The Ankleshwar API plant will commence manufacture of Pentoxifylline which was
hitherto imported and is the raw material for manufacture of the Company's
product Trental(r). It will also be exported to Hungary.
There is likely to be further upgradation of capacities in Ankleshwar for
manufacture of Combiflam(r) to meet the growing demand.
The Ankleshwar pharma plant will undergo upgradation for obtaining
approval of the MHRA (U.K.) for exports.
It is in trade terms with :
+
Nilmac
Packaging Industries Limited
+
Columbia Petro
Chem Limited
+
Corru –
Cartons (India) Private Limited
+
Laxmi Print
Art
+
Nylocel
Industrial Coatings Private Limited
+
Printania
Offset Private Limited
+
Mesha Pharma
Private Limited
+
Vibha Chem
Products Private Limited
+
Priya Foils
Private Limited
+
Jazz Interiors
Leathers Boutique
+
Shalimar Tubes
and Industries Limited
+
Kishore
Ampoule Private Limited
+
Supac
Packaging Private Limited
+
Lactose
(India) Limited
+
Goa Packaging
Products
+
Mukesh
Stationery Mart
+
IJCP
Publication Private Limited
+
Waghulede
Screens
Fixed Assets:
· Software
· Marketing and technical rights for formulations
· Technical know-how
· Freehold Land
· Leasehold Land
· Building and Waterworks
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Computers
· Motor Vehicles
AS PER WEBSITE
Profile
Subject is the
second largest pharmaceutical multinational company in India. In 2003 its sales
turnover stood at Rs. 6157 mio and its market share was 2.9%.
The Aventis product
portfolio in India is in synergy with the organization’s global strengths in
seven key therapeutic areas. These are anti-infectives, metabolism,
cardiology/thrombosis, respiratory, CNS, bone/joint and oncology. In six of its
therapeutic areas, Aventis leads the market in India.
In each of these
the thrust is on consolidating existing markets, penetrating new markets,
offering high quality support to care providers and keeping patient well being
at the heart of all business efforts.
Subject employs
around 1242 people and believes that attracting, retaining and developing a
world class workforce is critical for long term business success.
The company has six
regional offices at Mumbai, Calcutta, Delhi, Hyderabad, Lucknow and Chennai and
two state-of-the-art manufacturing sites at Ankleshwar (active pharmaceutical
ingredients & formulations) and Goa (formulations). Incorporating the
latest designs and processes in manufacturing, both sites have been identified
as potential global sourcing units.
Though the Company
is not actively involved in R&D of its own in India, it has access to the
Group's global research initiatives and has an impressive line-up of
blockbusters in the Pipeline.
Vision
Subject aspires to
be an industry leader valued by patients and healthcare providers for its
commitment to path breaking therapies; by employees for its commitment to
fairness and openness; by the scientific community for its support to research
and development; and its peers for seeing fair competition as best serving the
interest of patients.
Values
+
Respect for
People
+
Integrity
+
Sense of
Urgency
+
Networking
+
Creativity
+
Empowerment
+
Courage
+
Strategy
Subject believes
that in markets such as India, global strategy must align to local
requirements, so that the real needs of patients and healthcare providers are
met efficiently and cost effectively. Making available products of global
innovation, marketing them with skill and maintaining leadership in segments of
existing strength remain the key strategic imperatives. Globally Aventis
remains committed to inventing, developing, supplying and successfully
commercializing products that offer patients and doctors a substantial
difference in drug efficiency and disease management.
As India’s
healthcare challenges multiply, enlarge and change character, so will the
Company’s response, staying a step ahead, picking solutions that are
therapeutically effective and economically sound. It is through this that
Aventis will sustain its growth and remain one of India’s most respected
pharmaceutical companies.
Key Therapeutic
Areas
Breast Cancer
Breast Cancer is a
major disease in India with an estimated incidence of about 1,00,000 new cases
occurring every year. It is the second commonest cancer in India, after Head
& Neck. It accounts for 1 out of 3 cancer diagnoses and is a leading cause
of cancer deaths for women in the age group of 40-55 years. Like other cancers,
early diagnosis can significantly increase the chances of survival.
Chemotherapy is
fast emerging as a critical component of therapy in both pre and post surgery
treatment schedules.
Taxotere, a drug in
the taxoid class of chemotherapeutic agents is the foundation of Aventis
oncology franchise and has been available in India for past few years. It is currently
indicated as a therapy for treatment of locally advanced or metastatic breast
cancer after prior failure of chemotherapy.
Diabetes
The World Health
Organization estimates that of the 150 million people worldwide who have
diabetes, 21% (31.5 million) are Indians. This is the largest population of
diabetes patients anywhere in the world. This number is expected to grow to
57.2 million by the year 2025.
The star in the
Aventis portfolio for diabetes treatment in India is Lantus (insulin glargine)
introduced in the last quarter of 2003.
Lantus is the first
and only 24-hour basal (long acting) insulin in India for us in both Type 1 and
Type 2 diabetes. Clinical trials have established its 24-hour action with just
one daily injection. Patients receiving Lantus have experienced fewer episodes
of hypoglycemia as compared to those who were treated with other basal
insulins, including NPH (neutral protamine Hagedorn).
Lantus was first
launched in Germany in 2000, followed by the US in 2001 and the UK in 2002. It
is now the single-largest basal insulin brand in the German market, and in US
it is the number one insulin in the newly insulinized Type 2 patients, and the
most frequently prescribed basal insulin in newly diagnosed Type 1 patients.
In the oral
hypoglycemic market Aventis offers Amaryl, which today is the second largest
brand in its category with a market share of 5.7% (IMS data). Amaryl has
dominated this market despite the introduction of many generic competitors.
Amaryl is the preferred choice with doctors because it offers tested efficacy
and safety. Value addition for patient compliance and patient awareness has
helped Amaryl differentiate itself from generics.
Cardiovascular
The World Health
Organization (WHO) estimates that by 2010, 60% of the world's cardiac patients
will be Indians In India, nearly 50% of CVD-related deaths occur below the age
of 70, compared with just 22% in the West. That trend is particularly alarming
because of its potential impact on one of the region's fastest-growing
economies.
Cardace from
Aventis Pharma has been in the market since 1994 and today enjoys a dominant
position being the most-prescribed cardiovascular brand by cardiologists and
diabetologists (CMARC). In 2002 it consolidated its strong equity and grew by
32%. It has consistently maintained its growth profile and has become an
undisputed leader in the ACE inhibitor market (IMS bz ORG) and the number one
brand in terms of sales in the Indian cardiovascular segment (IMS R ORG).
Cardace bagged the
prestigious ’Marketing Excellence’ award for 2001-2002 from the OPPI. In 2003
Cardace maintained its market position and has held on to this in 2004.
Deep Vein
Thrombosis
Aventis is working to
grow the DVT prophylaxis market by increasing awareness of Deep Vein Thrombosis
(DVT) as a major health risk.
This has enabled
Clexane, the most widely used low molecular weight heparin in the world, to put
perform competition. It has maintained its leadership position with around 34%
market share in the category of anti thrombotics in India (IMS September 2004).
Clexane is now
recommended for use in Unstable Angina / Non Q Wave Myocardial Infarction by
the American College of Cardiology and American Heart Association 2002
guidelines as a preferred molecule compared to UFH.
Osteoporosis
Over 61 million
Indians have osteoporosis. Eighty percent of these are women. On a global
basis, Indians have the highest prevalence of osteopenia, which is the weakening
of bones before the osteoporosis stage. Aventis offers a drug and a disease
management program – WISHBONE- to manage this challenge in India.
The WISHBONE
Program offers patients subsidized diagnostic facilities, insurance against
fractures, free calcium, support from dietitians and counselors and other
services at home. Actonel is the drug at the heart of this program and the only
osteoporosis treatment consistently proven to provide rapid fracture protection
in just one year and sustained fracture protection for at least five years.
Clinical studies in women with postmenopausal osteoporosis have shown that
Actonel reduces moderate and severe vertebral fracture risk by 70% within one
year.
Actonel has also
been shown to reduce the risk of hip fractures by 60% in elderly women with
established postmenopausal osteoporosis
Allergy
Allergic reaction
to a variety of environmental factors both in childhood and through adult life
is a growing concern amongst medical practitioners in India. Allegra is today
the preferred prescription for the treatment of seasonal allergic rhinitis and
chronic idiopathic urticaria. Allegra is the most prescribed antihistamine
brand among both Dermatologists and ENT specialists.
Allegra
outperformed the market in the year 2002, grew at an impressive 15% (ORG - MAT
December growth) against 9% market growth in the segment and has since
maintained its growth path in the face of competition from newer molecules like
mizolastine, ebastine, desloratidine and levocetrizine.
Aventis will
continue to focus on sophisticated marketing techniques to leverage investments
in this area.
Rheumatoid
Arthritis
Arava, in the first
full year of launch, reached more than 4500 patients and achieved a market
share of 34% (IMS) in the Rheumatoid Arthritis segment. Arava has established
itself as the preferred brand among the country’s rheumatologists; Aventis has
succeeded in establishing a three-way bond between the patient, the
rheumatologist and the Company with the help of its Joint Effort program. Under
the Joint Effort program, Aventis provides counseling, patient education,
physical support devices for patients, doctor-patient meets and lab tests and
physiotherapy wherever required.
Industrial
Operations
The success stories
of Industrial Operations continue in the current year. At the end of Q 3, 2004,
just concluded, all the planned financial deliverables have been achieved.
Major contribution
to this success is in the area of implementation of strategic initiatives,
rolled out by subject globally, at
their two State-of-the-Art manufacturing plants (Ankleshwar and Goa) holding
the ISO 14001 environmental certificate.
Excellence in
quality continues to be one of their main thrust areas. The Goa Plant has
received the Runners-Up Aventis Board of Management Award successively for the
last 2 years (year 2002 and 2003).
The facilities and
the systems in their plants undergo continuous up-gradations to suit the
demands of the future. A recent example is the upgradation of their facilities
at their Ankleshwar Plant.
They have
successfully completed the transfer of Glibenclamide bulk tablets from
Frankfurt to their Goa Plant. The export of these tablets to Europe has
commenced from Q 1 this year. Simultaneously, the activities of another
transfer i.e. Glibenclamide (API) from Frankfurt to Ankleshwar are on track and
the first export have just taken place which will enable the final customers to
conduct stability studies on the formulated product. The Ankleshwar API Plant
is gearing up for the pre- approval inspection by the US FDA in Q 1, 2005.
The project of
manufacturing Ornidyl and Pentamidine for WHO is also on track. They expect the
pre-approval inspection of their external manufacturing sites by the French and
German Regulatory authorities to take place this year, so that the supplies of
both these products could commence in the coming year.
A motivated team
strives continuously to improve the Cost of goods manufactured.
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 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. 49.79 |
|
UK Pound |
1 |
Rs. 73.38 |
|
Euro |
1 |
Rs. 63.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|