MIRA
INFORM REPORT
|
Report Date : |
11.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED |
|
|
|
|
Registered Office : |
‘Orchid Towers’, 313 Valluvar Kottam High Road, Nungambakkam, Chennai- 600 034, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
01.07.1992 |
|
|
|
|
Com. Reg. No.: |
18-22994 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24222TN1992PLC022994 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEO03079G CHEO00121C |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 3404765 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company doing very well. Available information indicates high financial responsibility of the company. Financial position is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partners in a medium to long-run. |
LOCATIONS
|
Registered Office : |
‘Orchid Towers’, 313 Valluvar Kottam High Road, Nungambakkam, Chennai- 600 034, Tamilnadu, India |
|
Tel. No.: |
91-44-28251532 / 28251547 / 28284776/ 28211000/ 28230000 |
|
Fax No.: |
91-44-28284983/ 28211002 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
‘Orchid Towers’, 152, Village Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India |
|
|
|
|
Factory : |
API
FACILITIES Alathur
Works Plot Nos. 85-87, 98-100, 126-131, 138-151 and 159-164, SIDCO Industrial
Estate, Alathur, Kancheepuram Dist. – 603110, Tamilnadu, India Aurangabad
Works L-8 & L-9, MIDC Industrial Area, Waluj, Aurangabad District – 431136, Maharashtra, India FORMULATIONS Plot Nos. A-10, A-11, SIDCO Industrial Estate, Alathur, Kancheepuram
Dist. – 603 110, Tamilnadu, India B3 & B4, B11 to B14, SIDCO Industrial Estate, Alathur,
Kancheepuram Dist. – 603 110, Tamilnadu, India B77, SIDCO Industrial Estate, Alathur, Kancheepuram District – 603110,
Tamilnadu Plot Nos. B3-B6, B11 & B14 SIPCOT Industrial Park,
Irungattukottai, Sriperumbudur – 602 105, Tamilnadu Vinay Bhavya Complex, No. 159A, I Floor, ‘A’ Wing, C S T Road, Kalina,
Santacruz, Mumbai – 400 098, Maharashtra |
|
|
|
|
R & D Centre : |
Ø Plot No. 476 / 14, Old Mahabalipuram Road, Sholinganallur, Chennai – 600 119, Tamilnadu, India Ø Plot No. B21-B23 and B31-B33, SIPCOT Industrial Park, Irungattukotti Sriperumbudur (TK.)- 602 105, Kancheepuram District, Tamilnadu, India |
DIRECTORS
|
Name : |
Mr. R. Narayanan |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K.
Raghavendra Rao |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
44 years |
|
Qualification : |
B.Com., PGDM
(IIM-A), ACS, AICWAI |
|
Experience : |
24 years |
|
Date of Appointment : |
13.07.1992 |
|
Previous Employment : |
Al Buraimi Group,
Sultanate of Oman, Director |
|
|
|
|
Name : |
Dr. C.
Bhaktavatsala Rao |
|
Designation : |
Deputy Managing
Director |
|
Date of Birth/Age : |
53 years |
|
Qualification : |
B.E., M. Tech.,
Ph. D. |
|
Experience : |
29 years |
|
Date of Appointment : |
19.08.1998 |
|
Previous Employment : |
Ashok Leyland
Limited, Deputy General Manager – Corporate Planning |
|
|
|
|
Name : |
Mr. M R Girinath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Deepak Vaidya |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. I. Seetharam
Naidu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Subramanian
Andi |
|
Designation : |
Director (IDBI
Nominee) |
|
|
|
|
Name : |
Mr. Anil Thadani |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Francis Pinto |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Raj Rajkumar |
|
Designation : |
Alternate
Director |
|
|
|
|
Name : |
Mr. S. Jeyakumar |
|
Designation : |
Nominee Director
(IDBI) |
|
|
|
|
Name : |
Mr. Henry Simon |
|
Designation : |
Alternate
Director |
|
|
|
|
Name : |
Mr. Sanjay Sehgal |
|
Designation : |
Alternate
Director |
|
|
|
|
Name : |
Mr. John Cheesmondwas |
|
Designation : |
Alternate
Director |
KEY EXECUTIVES
|
Name : |
Mr. L.
Chandrasekar |
|
Designation : |
Company
Secretary |
|
|
|
|
MANAGEMENT TEAM |
·
Mr. D S Bhaskara
Raju - President - Finance and Business Planning ·
Dr Gautam Kumar Das - President - Active Pharmaceutical Ingredients ·
Dr Sumant Baukhandi - President - Regulatory Affairs & Quality
Assurance ·
Ms Edna Braganza - Senior Vice
President - International Marketing & Procurement ·
Mr. Kalidindi V Raju
- Senior Vice President - Manufacturing ·
Mr. S Mani - Senior Vice President -
Manufacturing ·
Mr. Ashutosh Ojha - Country Head (Domestic
Formulations) ·
Mr. L Chandrasekar - Vice President - Internal
Audit & Co. Secretary ·
Mr. P N Deshpande -
Vice President - Production & Technical ·
Mr. C R Dwarakanath - Vice President -
Corporate Safety, Health & Environment ·
Mr. Imtiyaz Basade -
Vice President - Regulatory Affairs ·
Mr. S Krishnan - Vice President - Finance ·
Dr S Mahender Rao - Vice President - Chemical Development ·
Mr. Makarand M Deshpande - Vice President -
International Marketing ·
Mr. S Nammalvar - Vice President - Projects
& Engineering Services ·
Mr. K C Pathak - Vice President - PPIC &
Outsourcing ·
Dr Praveen Reddy - Vice President - Pharma Research ·
Mr. K Ramesh - Vice President - Analytical
Development ·
Mr. M S Rangesh - Vice President - Human
Resources ·
Mr. Satish Haribhau Joshi - Vice President -
Quality Assurance ·
Dr U P Senthil Kumar - Vice President - Chemical Development ·
Mr. Umesh D Kapre -
Vice President - Manufacturing |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Promoters' Holdings
|
|
|
Indian
|
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
12470257 |
17.70 |
|
Bodies Corporate |
2436915 |
3.46 |
|
|
|
|
|
Public
shareholding |
|
|
Institutions
|
|
|
|
Mutual Funds / Axis |
4080744 |
5.79 |
|
Financial Institutions / Banks |
7683986 |
10.91 |
|
Foreign Institutional Investors |
7839041 |
11.13 |
|
|
|
|
|
|
|
|
|
NON-INSTITUTIONS |
|
|
|
Bodies Corporate |
23160254 |
32.88 |
|
Individuals - ii) Individual shareholders holding nominal share capital in excess of
Rs. 0.100 million |
741536 1027643 |
10.53 1.46 |
|
Any other (specify) ¡
NRI (R) ¡
NRI (NR) ¡
Foreign Companies ¡
Overseas Corporate Bodies |
215438 49556 835891 300 |
0.31 0.07 1.19 0.00 |
|
|
|
|
|
Shares held by
Custodians against which Depository Receipts have been issued. |
3226688 |
4.58 |
|
|
|
|
|
TOTAL |
70442076 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
v "Tax-o-Bid" v "Cefogram" v "Orzid" v "Spizef" v "N-Lid DT" v "N-Lid Gel" v "N-Lid Suspension" v "Orchidol" |
PRODUCTION STATUS (As on 31.03.2008)
|
Particulars |
Unit |
|
Licensed
Capacity |
Installed
Capacity |
|
Bulk Drugs and Intermediates |
|
|
|
|
|
Oral and Sterile |
MT |
|
900 |
800 |
|
Formulations |
No. Millions |
|
748 |
748 |
GENERAL
INFORMATION
|
Bankers : |
v Bank of India v Canara Bank v Citibank N. A. v Export-Import Bank of India v ICICI Bank Limited v IDBI Bank Limited v Indian Bank v Punjab National Bank v State Bank of India v Union Bank of India v Bank of Baroda v Allahabad Bank v Federal Bank v State Bank of Indore v Axis Bank Limited v Bank of America v ABN Amro Bank v ECO Bank v JS ATF Bank v Industrial Investment Bank |
||||||||||||||||||||
|
|
|
||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
STATUTORY AUDITORS SNB Associates Chartered Accountants No. 12, 3rd Floor, Gemini Parsn Complex, 121, Anna Salai, Chennai – 600006, Tamil Nadu COST AUDITORS Mr. V. Kalyanaraman Cost Accountants No. 4 (Old No. 12), Second Street, North Gopalapuram, Chennai – 600086, Tamilnadu INTERNAL / US GAAP
AUDITORS Deloitte Haskins & Sells Chartered Accountants 476, Temple Towers, 2nd Floor, Nandanam, Chennai – 600 035, Tamilnadu |
|
|
|
|
Associates : |
Orchid Research Laboratories Limited |
|
|
|
|
Joint Venture : |
v NCPC Orchid
Pharmaceuticals Company Limited, China v BChD
Biotechnological Chemical Development Limited, UK |
|
|
|
|
Subsidiaries: |
v Orchid Europe Limited, UK ( Previously known as Orchid Nutricare Limited) v Ogna Farma, Brazil v Gene Arrays Inc., USA v Orchid Pharmaceuticals Inc., USA v Orchid Research Laboratories Limited, India v Orchid Pharmaceuticals SA (Proprietary) Limited, South Africa v Bexel Pharmaceuticals Inc., USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs. 10/- Each |
Rs.1000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65850776 |
Equity Shares |
Rs. 10/- Each |
Rs.658.508 Millions |
|
|
|
|
|
Of the above:
17376940 Equity Shares of Rs. 10/- each were allotted as fully paid
bonus shares by Capitalization of reserves.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
658.508 |
658.163 |
646.182 |
|
|
2] Share Application Money |
0.000 |
0.096 |
0.000 |
|
|
3] Reserves & Surplus |
6222.445 |
4354.257 |
7204.071 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6880.953 |
5012.516 |
7850.253 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9624.614 |
6896.676 |
8265.585 |
|
|
2] Unsecured Loans |
9909.818 |
9422.457 |
2016.902 |
|
|
TOTAL BORROWING |
19534.432 |
16319.133 |
10282.487 |
|
|
DEFERRED TAX LIABILITIES |
1157.755 |
923.600 |
800.600 |
|
|
|
|
|
|
|
|
TOTAL |
27573.140 |
22255.249 |
18933.340 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
14138.067 |
9824.160 |
8898.985 |
|
|
Capital work-in-progress |
6163.261 |
5504.516 |
2691.740 |
|
|
|
|
|
|
|
|
INVESTMENT |
1138.200 |
1157.080 |
982.369 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6331.864
|
6022.722
|
4380.772
|
|
|
Sundry Debtors |
5225.638
|
3642.513
|
3288.153
|
|
|
Cash & Bank Balances |
228.484
|
1122.576
|
112.959
|
|
|
Other Current Assets |
1.318
|
1.492
|
5.074
|
|
|
Loans & Advances |
1464.267
|
1314.042
|
980.351
|
|
Total
Current Assets |
13251.571
|
12103.345 |
8767.309
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
7117.959
|
6333.852
|
2407.063
|
|
|
Provisions |
0.000
|
0.000
|
0.000
|
|
Total
Current Liabilities |
7117.959
|
6333.852
|
2407.063
|
|
|
Net Current Assets |
6133.612
|
5769.493 |
6360.246
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
27573.140 |
22255.249 |
18933.340 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
12389.162 |
9129.178 |
8734.571 |
|
|
Other Income |
725.087 |
114.980 |
13.273 |
|
|
Total Income |
13114.249 |
9244.158 |
8747.844 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2385.413 |
1105.918 |
906.117 |
|
|
Provision for Taxation |
540.032 |
139.600 |
77.100 |
|
|
Profit/(Loss) After Tax |
1845.361 |
966.318 |
829.017 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
10085.560 |
7010.835 |
6210.136 |
|
|
Other Earnings |
412.310 |
293.796 |
10.710 |
|
Total Earnings |
10497.870 |
7304.631 |
6220.846 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1959.804 |
3142.870 |
2133.873 |
|
|
Stores & Spares |
417.466 |
667.120 |
323.250 |
|
|
Capital Goods |
706.407 |
527.242 |
129.875 |
|
Total Imports |
3083.677 |
4337.232 |
2586.998 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
4346.490 |
3105.555 |
3452.651 |
|
|
Manufacturing Expenses |
4594.405 |
3224.947 |
2689.187 |
|
|
Interest |
811.263 |
983.065 |
870.132 |
|
|
Depreciation & Amortization |
976.678 |
824.673 |
829.757 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
10728.836 |
8138.240 |
7841.727 |
|
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2008 (1st
Quarter) |
30.09.2008 (2nd
Quarter) |
|
Sales Turnover |
|
2876.600 |
3484.500 |
|
Other Income |
|
186.700 |
0.100 |
|
Total Income |
|
3063.300 |
3484.600 |
|
Total Expenditure |
|
2767.900 |
3297.000 |
|
Operating Profit |
|
295.400 |
187.600 |
|
Interest |
|
302.500 |
312.300 |
|
Gross Profit |
|
(7.100) |
(124.700) |
|
Depreciation |
|
311.800 |
331.100 |
|
Tax |
|
(2.400) |
(49.200) |
|
Reported PAT |
|
(316.500) |
(406.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
14.07
|
10.45 |
9.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.25
|
12.11 |
10.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.71
|
5.04 |
5.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.22 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.87
|
4.52 |
1.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.86
|
1.91 |
3.64 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is a globally recognized, integrated pharmaceutical company
with core competencies in the development and manufacture of Active
Pharmaceutical Ingredients (APIs) and Finished Dosage Forms as well as in drug
discovery, which was incorporated on 1st July 1992 as a 100% Export Oriented
Unit (EOU). Subject has two manufacturing sites for APIs (at Alathur near
Chennai and at Aurangabad, near Mumbai) and three manufacturing sites for
Dosage forms (at Irungattukottai and Alathur in Chennai), besides two R and D
centres (at Sholinganallur and Irungattukottai, Chennai), all are
state-of-the-art and have several international regulatory approvals, including
the US FDA and UK MHRA. Subject's API facilities are ISO certified for their
quality, environmental management and operational health and safety systems.
Subject has a Joint Venture in China for manufacturing sterile APIs.
The Company commenced its operation in the year 1994, also in the same year;
Subject had entered into an agreement with SBD Laboratories Italy for
technology for keeping production in sterile condition. Subject became the
youngest Indian pharmaceutical company to be awarded the ISO 9002 certification
in 1997. During the same year of 1997, the company made a tie-up with
Technology Innovative Industry of Italy and also launched a range of new products
in the steriles category. In 1998, Subject, along with Cipla and Ranbaxy, had
received approval from the Drug Controller of India (DCI) for the manufacture
and export of sildenafil citrate, the main ingredient in Viagra, the drug
developed by Pfizer to treat human male erectile dysfunction; by the way it had
entered into the formulation market.
The Trophy for Excellent Performance in Exports was awarded to the company as
part of the National Export Awards Programme for the year 1998-99. The initial
range of products was launched by the company in 1999, which includes three
injectable cephalosporin formulations and two coprescription analgesics of the
NSAID category. These are Tax-O-bid (Cefotaxime injection), Cefogram
(Ceftriaxone injection), Orzid (Ceftazidime injection), Orchidol (Tramadol
tablets) and N-Limited (Nimesulide dispersible tablets. In the year 2000,
Orchid had signed a Memorandum of Understanding (MoU) with the Mumbai-based
Ajanta Pharma Limited to acquire the latter's bulk drugs manufacturing plant
located at Aurangabad. During the year 2001, the company had issued foreign
currency convertible bonds to International finance Corporation. Subject had
inked a 50:50 joint venture alliance pact with a California-based drug
discovery research firm Bexel Biotechnology Inc in the year of 2002.
During the year 2003, the company had acquired Mano Pharmaceuticals for a
consideration of Rs.260 millions and also in the same year received a formal
approval from US Food and Drug Administration for Cephalaxin. Subject signed a
pact with Par Pharmaceuticals Inc in 2004 to market oral cephalosporin
formulations in US market. In 2005, the company made pact with Alpharma Inc to
market oral non-antibiotic formulations in US and European markets and also entered
into agreement with STADA Pharmaceuticals, Inc (USA). In 2006, Subject had
signed a deal with Biovitrum in drug discovery field. The Company received
approval from the US FDA for its ANDAs (abbreviated new drug application) for
Cefdinir for capsules 300 mg and Cefdinir for oral suspension in July 2007.
In April 2008, Subject formed a wholly owned subsidiary Orchid Pharma Japan K K
(Orchid Japan) to foray into the high potential Japanese generics market and in
August of the same year 2008 received approvals of its marketing authorization
(MA) for piperacillin and tazobactam for injection for marketing in the EU
countries. The Company made a strategic research collaboration and license
agreement with Merck and Co in September 2008 focused on the discovery,
development and commercialization of novel agents for the treatment of
bacterial and fungal infections.
PERFORMANCE
During
the year, the Company achieved a turnover and operating income of Rs.12389.200
millions compared to Rs.9129.200 millions in 2006-07, registering a 35.7%
increase.
After
providing for lower interest expenses of Rs. 811.300 millions (Rs.983.100
millions in the previous fiscal) and higher depreciation of Rs.976.700 millions
(Rs. 824.700 millions in the previous fiscal), the profit before tax of the
Company was Rs.2385.400 millions, compared to
the previous year’s profit before tax of Rs.1105.900 millions,
registering a 115.7% increase. Net profit after tax stood at Rs.1845.400
millions, compared to Rs.966.300 millions in the previous fiscal, registering a 91%
increase.
The Company’s
business comprising Active Pharmaceutical Ingredients (API), generic
formulations and branded formulations continued to post steady growth. The
Company’s strategic shift from a bulk drug to a formulation-driven growth
strategy, with focus on the regulated markets, continued to contribute to a
significant improvement in turnover and profitability.
The Company’s
active pharmaceutical ingredients are increasingly being supplied to the
Company’s own generic formulations, representing an integrated pharmaceutical
operation.
PHARMACEUTICALS BUSINESS
The
Company’s formulations business increased to Rs.6825 millions during the
fiscal, compared to Rs.3857.400 millions in 2006-07. A large part of this
business was contributed by the Regulated markets where the Company achieved a
new watermark in the sales turnover. The consolidated turnover of all the four
divisions of the domestic formulations segment grew by 10% compared to the
previous financial year to Rs.749.400 millions. The Company also sold
Rs.5201.800 millions of active pharmaceutical ingredients (APIs) during the
fiscal, compared to Rs.5112.100 millions in the previous fiscal. This excludes
the captive sale to the Company’s formulations business.
During the year,
in the US generics market, the Company launched Cefepime Arginine, an
injectable product for which the Company was the sole generic player throughout
the year. This achievement is a reflection of the Company’s unique IP,
development and manufacturing capabilities. The Company also launched another
premium oral product, Cefdinir capsules in the US market. These two premium
products of the Company continued to show steady growth in terms of sales and
turnover.
The Company has
also launched Cefadroxil capsules and Cefadroxil oral suspension range in the
US generics market. The products already launched in the US continued to record
a rampup of market volumes with a robust share of the overall revenue mix. The
Company is also set to foray into the European, Australian/New Zealand markets
with its premium product Piperacillin / Tazobactam injections for which
approvals are expected. The Company is also making regulatory filings for its
Carbapenem products for entry into the lucrative Carbapenem generics markets in
the US and Europe.
ALLIANCES:
The
Company signed new pan-European distribution agreement with global Injectable
generics major for distributing seven of subject’s sterile cephalosporin
products. The Company also added new products and geographies to the alliance
it has already with the generics major. The Company also extended its marketing
arrangement with a leading distribution major in the US to include 11
additional oral non-antibiotic formulations for the US generic space. These new
arrangements will pave the way for further utilization of the second sterile
cephalosporin line and the new up-scaled NPNC commercial block. With these
arrangements, the number of products with exclusive distribution alliances
increased to 52 in over 70 dosage forms for the US and 16 Injectable products
in over 20 dosage forms to Europe. The Company has also entered into a supply
agreement in the US for the distribution of Cephalexin capsules and dry syrups.
The Company is also negotiating country-specific alliances for individual
products for Europe, of which a few have already been entered into.
During April 2008,
the Company entered into a business alliance with Ranbaxy Laboratories Limited
to explore and enter into specific collaboration agreements for multiple
geographies and therapies in active pharmaceutical ingredients and finished
dosage forms. This alliance would leverage the respective strengths of Orchid
and Ranbaxy, benefiting business growth for both the companies. This alliance
also establishes a framework for enhanced future co-operation between the two
companies.
DRUG DISCOVERY
The
new drug discovery initiatives of the Company conducted through its wholly
owned subsidiary in India, Orchid Research Laboratories Limited (ORLL) are
progressing well. Continued efforts are being made for developing the
identified lead molecules and potential back-up molecules in the therapeutic
areas of anti-infective, anti -inflammation, anti-cancer and antidiabetes
drugs. New programmes in obesity and CNS / obesity are being evaluated. As part
of the constant efforts to secure alliance opportunities, continuous networking
and business development is being attempted.
In the area of
Custom Research and Manufacturing Services (CRAMS), certain agreements have
been signed by ORLL and further discussions are going on for various potential
projects. Bexel Pharmaceuticals, Inc., USA, has continued the phase II(a)
trials on its anti-diabetes molecule in Europe. The final results of the study
are expected during the first quarter of fiscal 2008-09.
AWARDS
During
the year, the Company’s wholly owned subsidiary, Orchid Research Laboratories
Limited (ORLL) was conferred the Frost and Sullivan award for the Partner of
Choice in contract research - collaborative drug discovery. This award
recognizes the best Indian research and manufacturing services capability in
the arena of Life Sciences and assesses their global competitiveness.
Conferment of this award on ORLL reconfirms the state-of-the-art infrastructure,
processes and competencies that Orchid possesses.
Mr. K. Raghavendra
Rao, Managing Director of the Company, was bestowed with Doctor of Letters
(Honoris Causa) by the Thanjavurbased SASTRA University for his entrepreneurial
achievements and contribution to the growth of the Indian pharmaceutical
industry. He was also awarded the Alpha Distinguished Citizen Award for
Entrepreneurship and Industry Leadership in the decennial celebrations of the
Alpha Arts and Science College.
OVERSEAS JOINT VENTURES
NCPC ORCHID PHARMACEUTICALS COMPANY LIMITED, CHINA:
The
Company’s 50:50 joint venture in China, NCPC Orchid Pharmaceuticals,
established for the manufacture of sterile cephalosporin APIs is progressing well.
The joint venture is profitable with good sales turnover in the Chinese market.
During the year, NCPC Orchid recorded a turnover of US$ 39.09 million. The
Company has gained considerable share for its key injectable Cephalosporin API
products in the Chinese market.
BIOTECHNOLOGICAL CHEMICAL DEVELOPMENT LIMITED,
UNITED KINGDOM:
The
joint venture was set up as a limited-time horizon project to develop and
assimilate select peptide technologies. The joint venture company has been dissolved
during the year. The Company has already transferred the IP and assets of the
joint venture to India.
SUBSIDIARIES
Orchid Research Laboratories Limited, India (ORLL): ORLL has
been developing its pipeline of new chemical entities (NCEs) in the fields of
oncology, inflammation, diabetes and anti-infectives aggressively. ORLL has
been conducting extensive pre-clinical studies of the lead molecules in the
chosen therapeutic areas. It is also undertaking efforts to secure business
alliances with pharmaceutical multinational corporations.
Bexel Pharmaceuticals, Inc., USA (Bexel): The planned work
on Bexel’s anti-diabetes molecule BLX-1002 up to phase II(a) clinical studies has been completed. It was decided
to carry out further work on other compounds through the Company’s larger
subsidiary ORLL at Chennai. ORLL has taken over the other ongoing programmers
of Bexel and will move forward, based on relevant scientific and business
considerations. In view of the residual clinical analysis work and out-licensing
activities related to BLX- 1002, Bexel will continue to operate as a company
with a small staff. These measures would sharply reduce the cost of overseas
R&D expenditure hitherto incurred on Bexel. Orchid is also evaluating
alternative options to leverage minimal infrastructure of Bexel for expert
networking in newer areas of science. Consequent to this, the senior scientific
and management team of Bexel has sought separation during the year. ORLL team
is now overseeing Bexel’s developments.
Orchid Pharmaceuticals, Inc., USA: The Company established
Orchid Pharmaceuticals Inc. in the Delaware State of the US as a 100%
subsidiary company, to provide any identified services to Orchid through its
whollyowned subsidiary Orgenus Pharmaceuticals Inc. USA.
Orchid Pharmaceuticals (South Africa) Pty Limited, South
Africa: The Company’s wholly owned subsidiary, Orchid
Pharmaceuticals (South Africa) Pty Limited was incorporated
to register and market bulk drugs and formulations in South Africa. Orchid has
been successfully audited by MCC and has since received the approval for
cephalosporin and penicillin Injectable dosage form facilities. The Company
expects to launch the first cephalosporin antibiotic, Ceftazidime in the South
African market during the current fiscal. Marketing and distribution alliances
have also been firmed up for this purpose. The South African entity supports
these activities.
Orchid Pharma Japan K.K: During April 2008, the Company
announced the planned formation of Orchid Pharma Japan K.K as a wholly owned
subsidiary in Japan. Orchid Japan, headquartered in Tokyo, will drive Orchid’s
foray into the high potential and growing Japanese generics market. It is
expected that the Japanese generics market would grow at a rapid pace in the coming
years, due to an increasing recognition of the need for quality generic
medicines by the government and healthcare sectors. The Company, with its
comprehensive range of antibiotic and life style products, is ideally
positioned to meet a broad spectrum of acute and chronic therapy needs of the
growing Japanese healthcare market.
The Company has commenced the process of dissolution of its
subsidiary in Brazil viz., Ogna Farma. The Company’s another subsidiary in the
USA viz., Gene Arrays Inc. was wound up during the year.
The Company had applied for an approval under Section 212(8)
of the Companies Act, 1956 from the Department of Company Affairs, Ministry of
Finance seeking exemption from attaching the Annual Reports of subsidiary
companies with the Annual Report of Orchid and to provide the accounts in the
same manner as certified by overseas auditors in the respective countries where
the subsidiaries are situated. The statement as required under Section 212 has
been prepared on the assumption that the Company would receive the approval and
the same is given as part of this report.
The consolidated financial statements of the subsidiaries
duly audited are presented along with the accounts of the Company. The annual
accounts of subsidiary companies are kept at the Company’s registered office
and also at the respective registered office of each of the subsidiaries for
inspection and will be made available to the members seeking such information.
EXPENSES:
The Company’s expense component comprised material costs,
staff costs and welfare expenses, power and fuel costs, other manufacturing,
selling and other expenses, R&D, interest and depreciation expenses.
While with increasing scale of operations and general inflationary
trends, escalation in operational costs was inevitable during the year higher
revenues facilitated a containment of cost spikes as a percentage of total
revenues, reflecting a broad measure of operational efficiency.
OPERATING
EXPENSES
Imported raw materials, Pen-G, 7-ACA and intermediates used
in the manufacture of relevant Orchid products, principally constituted the
Company’s material costs. Staff costs and welfare expenses comprised wages,
salaries, bonus and other expenses for their employees as well as contributions
to employee provident fund, medical and other funds. Power and fuel expenses
involved the cost of electricity, diesel and furnace oil for their
manufacturing facilities. The principal components of other manufacturing, selling
and other expenses comprised selling commission, insurance charges, factory
maintenance expenses, consumption of stores, spares and chemicals and traveling
expenses.
The Company’s R&D expenses included regular operating
expenses, project costs and expenses for research and infrastructure programs.
While R&D revenue expenditures were expensed when incurred, R&D capital
expenditures were added to assets and depreciated. Interest and finance charges
comprised interest on long-term and working capital borrowings, bill
discounting and other bank charges. Depreciation and amortization comprised a
major portion of our operating expenses. The effective income tax rate for
fiscal 2008 stood at 22.64%.
MATERIAL
COSTS:
Higher scale of business, coupled with escalations in the
average price of key inputs, led to an increase in raw material costs to Rs.
4346.500 Millions for the fiscal ended 2008, compared with Rs. 3105.600
Millions for fiscal ended 2007. Material costs grew only marginally from 34% to
35% as a percentage of total revenue.
STAFF
COSTS AND WELFARE EXPENSES:
Widening geographic reach, expanding scale of operations
with multiple units coming on stream, increasing product portfolio and an
enhanced focus on drug discovery led to increased recruitment. With increased
incentives offered to retain talent, the staff cost and welfare expenses
increased by 28.5% from Rs. 777.257 Millions in 2006-07 to Rs. 998.976 Millions
in 2007-08. As a percentage of total revenue, the staff and welfare costs,
however, declined from 8.5% to 8.1%.
Power and fuel costs: A direct impact of the global rise in
crude oil prices was felt on power and fuel costs, which increased by 34% from
Rs. 520.200 Millions in 2007 to Rs. 695.800 Millions in 2008, reflecting the
cost impact and also the higher throughput. As a percentage of total revenue,
power and fuel costs declined marginally from 5.7% to 5.6%.
Other manufacturing, selling and other expenses: Geographic expansion,
coupled with general inflation, increased ‘other manufacturing, selling
and other expenses’ by 60% from Rs. 1531.100 Millions in 2006-07 to
Rs. 2447.700 Millions in 2007-08. As a percentage of total revenue,
this expense group was 19.7 %, compared with 16.7 % in 2006-07.
TRADE REFERENCE:
Ø Abasi Engineering Works
Ø Ag Filters
Ø Arvind Pipes & Fittings Industries
Ø Aditya Better Containers Private Limited
Ø Anant Company
Ø Atoz Pharmaceuticals Private Limited
Ø Ammonia Marketing Company
Ø B. K. Equipments Private Limited
Ø Cee Kay Electricals
Ø Biotrans Pharmaceuticals (Private) Limited
Ø D. Parikh Engineering Works
Ø Dr. Hedgewar Rugnalaya
Ø Eltech Engineers Madras Private Limited
Ø Grand Polycoats Company Private Limited
Ø Hyderabad Ammonia & Chemicals Private Limited
Ø Hi-Fab Engineers Private Limited
Ø GP Fitwell Systems Private Limited
Ø Elder Instruments Private Limited
Ø Industrial Fabrics (Chennnai)
Ø Jasmine Art Printers Private Limited
Ø Corosynath Services Private Limited
Ø Mayura Analytical Private Limited
Ø Mysore Ammonia Private Limited
Ø Inject ampoules Private Limited
Ø Jay Dheep Techno Enterprises Private Limited
Ø Joseph Leslie & Company
Ø Maral Labs
Ø Millipore (India) Private Limited
Ø N. K. Joshi & Company
Ø Parishram Engineering Works
Ø Praktan Industries
Ø Prafab Engineers Private Limited
Ø R. Stahl (Private) Limited
Ø Ramsons Garment Finishing Equipment
Ø Rockwin Flowmeter India Private Limited
Ø Safex Fire Services Limited
Ø Southern Gasket Products
Ø Supreme Chemiplast Piping Private Limited
Ø Trans Electris
Ø Uniflow
Ø Up-Datar Services
Ø Atra Pharmaceuticals Limited
Ø Ceekay Electricals
Ø Eltech Engineers Madras Private Limited
Ø Hemson Private Limited
Ø Mihir Engineers Limited
Ø Manali Lubricants Private Limited
Ø R P Products
Ø Futura Electronics Private Limited
FIXED ASSETS:
- Freehold Land
- Leasehold Land
- Building
- Plant and Machinery
- Factory Equipment
- Laboratory Equipment
- Office Equipment
- Furniture and Fitting
- Vehicles
WEBSITE DETAILS:
PROFILE:
Subject was established in 1992 as a 100% Export Oriented Unit (EOU). Commencing operations in 1994, company has achieved amazing and consistent growth, quantitatively and qualitatively to emerge among the Top-15 companies in the Indian pharmaceutical industry in a short span of fourteen years of operations. company employs over 3700 people, of which over 600 are scientists, technologists and other professionals.
Subject is a globally recognized, integrated pharmaceutical company with core
competencies in the development and manufacture of Active Pharmaceutical
Ingredients (APIs) and Finished Dosage Forms as well as in drug discovery. From
the very inception, Orchid has been investing aggressively for establishing
modern research and manufacturing facilities aimed at global markets, thus
emerging as a world-class pharmaceutical company covering the entire value
chain from “Discovery to Delivery”.
Subject has two manufacturing sites for APIs (at Alathur near Chennai and at
Aurangabad, near Mumbai) and three manufacturing sites for Dosage forms (at
Irungattukottai and Alathur in Chennai), besides two R&D centres (at
Sholinganallur and Irungattukottai, Chennai). Orchid’s facilities are
state-of-the-art and have several international regulatory approvals, including
the US FDA and UK MHRA. Orchid’s API facilities are ISO certified for their
quality, environmental management and operational health and safety systems.
Company has a Joint Venture in China for manufacturing sterile APIs.
Company’s scientific and technical strengths have made it a partner of choice
for several multinational corporations. Orchid has long-term exclusive
marketing alliances with reputed global companies such as Apotex, Actavis, Dava
and Hospira for distribution of Company’s products in the advanced markets of
US and Europe.
Company has an established end-to-end connected infrastructure for drug
discovery and development which are channeled through its two subsidiaries,
Orchid Research Laboratories in Chennai and Bexel Pharmaceuticals in the US.
Through superior infrastructure and by adopting a judicious blend of
structure-based drug design approach, Company has been able to simultaneously
work on six therapeutic programs with several lead compounds in advanced stages
of trials.
Company is a leader in the use of environment friendly technologies. Company has invested substantially in zero-discharge manufacturing processes at its facilities and is considered a national show-case in environmental friendliness.
PRESS RELEASE:
Orchid’s revenue during Q2FY09 rises by 18.7% to Rs 3484.500
Millions
Achieves salient progress in the Generics and R&D verticals
Chennai,
India – October 30, 2008
Q2
earnings (for the quarter ended September 30, 2008)
The Chennai-based pharma major, Orchid Chemicals and
Pharmaceuticals Limited (Orchid) achieved a higher turnover and operating
income of Rs 3484.500 Millions for the quarter ended September 30, 2008 (Q2 FY
2008-09) in comparison to Rs 2935.900 Millions registered during the
corresponding quarter of the last fiscal. Earnings before Interest & Tax
(EBIT) stood at Rs 672.200 Millions compared to Rs 816.700 Millions of the
corresponding quarter of last year. Due to the sharp depreciation in the value
of Rupee vis-à-vis Dollar, a notional loss on FCCBs is reflected in the
accounts as opposed to the notional gain reflected in the accounts of the
corresponding quarter of the previous fiscal. Profit/(loss) before tax (prior
to exceptional item on account of exchange (loss)/gain on the FCCBs) was Rs
360.000 Millions as against Rs 645.200 Millions of the corresponding Q2 of the
last fiscal. After considering the exceptional item on account of exchange
(loss)/gain on the FCCBs, the profit/(loss) before tax for the second quarter
was at Rs (455.800) Millions compared to Rs 842.800 Millions during the
corresponding Q2 of the last fiscal. During the quarter, at the net level, the
company registered a loss (due to the loss on the exceptional item of Rs
815.800 Millions) of Rs (406.600) Millions compared to a PAT of Rs 632.700
Millions (which included the exceptional item gain of Rs 197.600 Millions) of
the corresponding Q2 of the last fiscal.
H1 earnings (for the half year ended September 30, 2008) –
Standalone
Orchid’s revenues for the half-year (H1) ended September 30,
2008 increased by 23.6% and stood at Rs 6547.700 compared to Rs 5298.700
Millions registered during the corresponding period of last fiscal. Earnings
before Interest & Tax (EBIT) stood at Rs 1243.900 Millions compared to Rs
1249.000 Millions registered during the corresponding H1 of the last fiscal.
Profit/(loss) after tax (after considering a loss of Rs 1403.700 Millions due
to the exceptional item of foreign exchange loss on FCCBs) stood at Rs
(723.100) Millions as compared to Rs 1145.700 Millions of the corresponding
half-year of last fiscal (which included an exceptional item due to foreign
exchange gain on FCCBs of Rs 726.200 Millions).
From the Managing Director
“The second quarter of this fiscal has witnessed several
milestones in our operational journey. Key developments in the twin growth
verticals of generics and R&D have positioned the company strongly and will
aid robust performance patterns going forward. Our entry into the EU generics
market with the approval of key product Piperacillin-Tazobactam is noteworthy
and should lead to a strong revenue stream from Q3 onwards. With the pace of
our regulatory filings being enhanced, with a particular focus on injectables
and Para IV FTF products, we are confident of a robust pipeline that can
witness a niche market presence across major markets like US & EU in the
further quarters. In the R&D space, we are extremely confident of our
initiative through Diakron to take forward the Merck Phase I anti-coagulant
compound and our research collaboration with Merck & Company Inc. to
discover, develop and commercialize novel anti-infective drugs. These seeds of
innovation would ensure a strong growth path going forward”, said Mr. K
Raghavendra Rao, Managing Director, Orchid Chemicals & Pharmaceuticals
Limited.
Generics update
During the second quarter of this fiscal, Orchid continued
to derive strong revenues from the US generics market. Earlier launched
products like Cefoxitin, Ceftriaxone, Cefepime and Cefdinir continued to garner
robust revenues. Competitive pricing and robust supply chain capabilities have
helped the company to maintain market shares despite additional competition in
certain products.
The company also received its first MA (Marketing
Authorisation) approval for Piperacillin-Tazobactam in the EU market during the
second quarter of this fiscal. This approval will spearhead the European
generics foray in distribution partnership with Hospira, a leading global
injectable generics player and will lead to a strong revenue base for the
company in this geography from the current quarter onwards.
The product has already been launched in Australia through
Hospira and in Canada through Apotex.
Regulatory update
During the quarter under review, Orchid continued to enhance
its product pipeline by filing regulatory documentation (DMFs / ANDAs &
MAs) in major generic markets of the world.
In the API (Active Pharmaceutical Ingredient) segment,
Orchid increased the cumulative filing cunt of its US DMFs to 64. Of these, 26
correspond to the Cephalosporin space, 26 to the NPNC space, 2 in the
penicillin injectables space and 10 in the Carbapenems product space. During
the quarter under review, Orchid’s cumulative filings of Certificates of
Suitability (CoS) for the EU market also increased to 20.
The company during the quarter filed an additional 3 ANDAs (Abbreviated New
Drug Application) taking the cumulative count to 53 ANDAs till date. Of the
total ANDAs filed, 29 are in the cephalosporin area, 18 in non-penicillin,
non-cephalosporin (NPNC) and 5 in the penicillin product segment and 1 in the
Carbapenem space. Orchid has received
approvals for 28 ANDAs till date.
The country-wise approvals for Piperacillin-Tazobactam
injections have started flowing in pursuant to DCP approval. Orchid has so far
filed 19 dossiers for MAs (Marketing Authorisations) comprising 15 in the
Cephalosporins space and 1 in the sterile penicillin space and 3 in the NPNC
space.
During the quarter under review, Orchid filed another Para
IV-FTF (First-to-file) product with the US FDA thereby taking the total FTF
count to 6.
During the quarter under review, the non-penicillin,
non-cephalosporin dosage forms facility at Irungattukottai, Chennai underwent a
successful inspection by the UK MHRA. Receipt of the formal approval in due
course will enable the company step up its foray into the EU NPNC generics
space.
R&D Update
During the quarter under review, Orchid acquired a
significant stake in the US-based drug discovery and development company,
Diakron Pharmaceuticals Inc. to co-develop a novel investigational oral
anticoagulant drug, in-licensed by Diakron from Merck. The target will be to
develop the compound as a novel oral anticoagulant and position it uniquely
first for the prophylaxis and treatment of deep vein thrombosis in patients
undergoing hip and knee replacement and later for chronic use indications. Both
these therapies have wide market potential. Diakron has also other products
especially T-Calcium Channel Blockers in its fold which can be pursued
separately.
In a first of its kind initiative, Orchid through its
research subsidiary, Orchid Research Laboratories (ORL) entered into a
strategic research collaboration and licence agreement with Merck & Company
Inc. to discover, develop and commercialize novel agents for the treatment of
bacterial and fungal infections. Through this collaboration, both the partners
would work to identify and develop novel antibacterial and anti fungal
compounds as clinically validated drug candidates. Orchid will undertake
discovery and candidate development through Phase IIa human clinical trials.
Merck will conduct late‐stage clinical development and commercialization
based on regulatory approvals.
Orchid has been paid an undisclosed upfront sum on signing
of the agreement and would be eligible for milestones totaling more than US$100
million spread over a period of time (besides royalties upon
commercialization).
Orchid receives US FDA approvals for three Cefuroxime Inj. ANDAs
Chennai,
India – October 16, 2008
The Chennai-based pharma major, Orchid Chemicals &
Pharmaceuticals Limited (Orchid) today announced that it has received approvals
from the US FDA for three of its ANDAs (Abbreviated New Drug Application) for
Cefuroxime for Injection, 750 mg & 1.5 g vials (infusion packs), 7.5 g
(pharmacy bulk pack) and 1.5 g vial. Cumulatively, Orchid has secured 28 ANDA
approvals.
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.49.12 |
|
UK Pound |
1 |
Rs.63.59 |
|
Euro |
1 |
Rs.63.52 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
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 |
|