MIRA
INFORM REPORT
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Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
CIPLA LIMITED |
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Registered Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400008,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
17.08. 1935 |
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Com. Reg. No.: |
11-2380 |
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CIN No.: [Company
Identification No.] |
L24239MH1935PLC002380 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC00352C |
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Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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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 190000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed pharmaceutical company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is considered as good. Business is active. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered/Corporate
Office : |
289, J. B. B. Marg, Mumbai Central, Mumbai – 400008, Maharashtra, India |
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Tel. No.: |
91-22-23095521/ 23082891/ 23023272 |
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Fax No.: |
91-22-23070013/ 23070393/ 85/ 23008101 |
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E-Mail : |
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Website : |
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Factory : |
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Sales Office: |
Located At : · Kochi · Ghaziabad · Kolkata · Chennai · Hyderabad · Delhi · Assam · Nagpur · Chandigarh · Patna · Ambala Cantt · Patna · Vijayawada · Varanasi · Rajasthan · Lucknow · Ahmedabad · Indore · Mumbai · Madhya Pradesh · Pune · Bangalore |
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Branch Office : |
289, Bellasis Road, Dimitkar, Mumbai – 400008, Maharashtra,
India |
DIRECTORS
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Name : |
Dr. Y. K. Hamied |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Amar Lulla |
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Designation : |
Joint Managing Director |
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Name : |
Mr. M. K. Hamied |
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Designation : |
Joint Managing Director |
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Name : |
Dr. H. R. Manchanda |
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Designation : |
Non-Executive Director |
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Qualification : |
M.B.B.S., F.R.C.S. |
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Experience : |
1. Consultant Surgeon at Breach Candy Hospital since 1960. It is also on panel of physicians for USA Visa work at Breach Candy Hospital. 2. Professor of Surgery and Head of Surgery at J.J. Hospital and Grant Medical College for the period 1960-85. Haffkine Institute – Board Member |
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Date of Appointment : |
1983 |
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Name : |
Mr. S. A. A. Pinto |
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Designation : |
Non-Executive Director |
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Qualification : |
M.A.(Economics), LL.B |
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Experience : |
1. Kotak Mahindra Finance Limited – Director and Member of Audit Committee and Chairman of Investor Relations Committee 2. Kotak Mahindra Private-Equity Trustee Limited – Chairman |
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Date of Appointment : |
1983 |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. R. Raghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ramesh Shroff |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. K. Gurjar |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pankaj Patel |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Mr. N R Moorthy |
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Designation : |
Practising company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.06.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Promoters'
holdings
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Indian
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Individuals/ Hindu Undivided Family |
130369637 |
16.77 |
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Bodies Corporate |
8995723 |
1.16 |
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FOREIGN |
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Individuals (Non – Residents Individuals/ Foreign Individuals) |
166742687 |
21.45 |
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PUBLIC SHAREHOLDING |
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Institutions |
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Mutual Funds/ Axis |
14291310 |
1.84 |
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Financial Institutions/ Banks |
1558791 |
0.20 |
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Insurance Companies |
91552431 |
11.78 |
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Foreign Institutional Investors |
137626444 |
17.71 |
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Non
-Institutions
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Bodies Corporate |
10205857 |
1.31 |
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Individuals Shareholders Holding nominal share capital up to Rs.0.100 Millions |
67197777 |
8.65 |
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Individuals Shareholders Holding nominal share capital In excess of Rs.0.100 Millions |
114195778 |
14.69 |
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Trust |
42899 |
0.01 |
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Foreign Bodies |
177129 |
0.02 |
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Non- Resident Indians |
26923493 |
3.46 |
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Clearing Members |
1936260 |
0.25 |
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Share held by custodians and against which depository receipts have been issued |
5475144 |
0.70 |
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Grand Total |
777291357 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Chemicals, Tablets and Capsules, Liquids, Creams, Aerosols, Injections, Sterile Solution and Agrochemicals and Formulations. The company manufactures and markets bulk drugs and
formulations. |
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Products : |
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PRODUCTION STATUS 31.03.2008
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Bulk Drugs (including Malts) |
Tonnes |
1783.0 |
1031.7 |
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Tablets and Capsules |
Million |
12840.7 |
13986.5 |
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Liquids |
Kilolitre |
1334.4 |
7998.9 |
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Creams |
Tonnes |
714.6 |
624.8 |
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Aerosols/Inhalation Devices |
Thousand |
70860.0 |
54327.4 |
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Injections/Sterile Solutions |
Kilolitre |
958.0 |
2473.5 |
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Others |
Million |
- |
268.8 |
Notes:
- The installed capacity is as certified by the management and not
verified by the auditors, this being a technical matter.
- Actual production includes production at loan licencee
locations.
- Actual production includes production of
goods captively consumed.
GENERAL
INFORMATION
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Suppliers: |
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No. of Employees : |
2200 |
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Bankers : |
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Facilities : |
Notes: A sum of Rs.5585.400 Millions (Previous year
Rs.1109.600 Millions) is repayable out of Unsecured Loans within the next 12
months. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chartered Accountants
Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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875000000 |
Equity Share |
Rs.2/- each |
Rs.1750.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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778294752 |
Equity shares |
Rs.2/- each |
Rs.1556.600 millions |
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Subscribed and Paid up Capital :
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No. of Shares |
Type |
Value |
Amount |
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777291357 |
Equity Shares |
Rs.2/- each |
Rs.1554.600 millions |
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Note:
Of the above Equity Shares
- 75,83,20,444 shares of Rs.2 each (Previous year 75,83,20,444 shares of Rs.2 each) were allotted as fully paid-up Bonus Shares by capitalisation of General Reserve and Securities Premium Account.
- 8,488 shares of Rs.2 each were issued for consideration other than cash pursuant to the Scheme of Arrangement in September 2004.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1554.600 |
1554.600 |
599.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
36003.600 |
30808.100 |
19233.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
37558.200 |
32362.700 |
19832.700 |
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LOAN FUNDS |
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1] Secured Loans |
169.800 |
72.500 |
512.700 |
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2] Unsecured Loans |
5635.500 |
1163.100 |
4176.400 |
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TOTAL BORROWING |
5805.300 |
1235.600 |
4689.100 |
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DEFERRED TAX LIABILITIES |
1491.500 |
0.000 |
0.000 |
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TOTAL |
44855.000 |
33598.300 |
24521.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16613.600 |
13880.700 |
10566.100 |
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Capital work-in-progress |
2331.200 |
731.900 |
870.100 |
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INVESTMENT |
947.500 |
1178.000 |
224.300 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
11204.900 |
9786.000 |
9570.000 |
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Sundry Debtors |
13939.100 |
10287.800 |
8759.600 |
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Cash & Bank Balances |
792.800 |
1314.900 |
444.800 |
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Other Current Assets |
344.900 |
0.000 |
0.000 |
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Loans & Advances |
11158.100 |
6958.100 |
4148.500 |
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Total
Current Assets |
37439.800
|
28346.800
|
22922.900
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
8309.000 |
6437.800 |
7338.500 |
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Provisions |
4168.100 |
4101.300 |
2723.100 |
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Total
Current Liabilities |
12477.100
|
10539.100
|
10061.600
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Net Current Assets |
24962.700 |
17807.700 |
12861.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
44855.000 |
33598.300 |
24521.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
39979.000 |
35331.700 |
30196.800 |
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Other Income |
3403.100 |
2305.500 |
2161.000 |
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Stock Adjustments |
0.000 |
(307.300) |
943.500 |
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Total Income |
43382.100 |
37329.900 |
33301.300 |
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Profit/(Loss) Before Tax |
8383.600 |
8079.800 |
7098.400 |
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Provision for Taxation |
1369.300 |
1399.500 |
1022.000 |
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Profit/(Loss) After Tax |
7014.300 |
6680.300 |
6076.400 |
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Earning in Foreign Currency : |
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Export Earnings |
21017.400 |
1784.400 |
15136.400 |
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Technical Know-how/ Fees |
1533.900 |
764.700 |
415.600 |
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Others |
0.800 |
81.600 |
104.300 |
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Total Earnings |
22552.100 |
2630.700 |
15656.300 |
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Imports |
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Raw Materials / Packing Materials |
7242.700 |
5432.900 |
4624.100 |
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Components and Spare Parts |
193.500 |
119.800 |
60.000 |
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Capital Goods |
2029.300 |
948.500 |
1065.500 |
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Total Imports |
9465.500 |
6501.200 |
5749.600 |
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Expenditures: |
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Raw Materials |
20599.600 |
16948.500 |
15059.200 |
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Excise Duty |
0.000 |
949.300 |
1283.200 |
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Power and Fuel Cost |
0.000 |
867.100 |
630.800 |
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Other Manufacturing Expenses |
2141.200 |
2998.700 |
2745.200 |
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Employee Cost |
2554.500 |
1620.500 |
1273.200 |
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Selling and Administration Expenses |
0.000 |
4010.800 |
3463.800 |
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Miscellaneous Expenses |
0.000 |
709.900 |
785.000 |
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Interest and financial Charges |
116.900 |
111.600 |
160.700 |
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Depreciation |
1306.800 |
1033.700 |
801.800 |
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Other Expenses |
8279.500 |
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Total Expenditure |
34998.500 |
29250.100 |
26202.900 |
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QUARTRLY RESULTS
|
PARTICULARS |
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|
30.06.2008 1st
Quarter |
|
Sales Turnover |
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|
12071.200 |
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Other Income |
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|
170.200 |
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Total Income |
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|
12241.400 |
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Total Expenditure |
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|
10117.100 |
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Operating Profit |
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|
214.300 |
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Interest |
|
|
36.600 |
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Gross Profit |
|
|
2087.700 |
|
Depreciation |
|
|
382.300 |
|
Tax |
|
|
215.000 |
|
Reported PAT |
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|
1400.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt
Equity Ratio |
0.10 |
0.11 |
0.19 |
|
Long
Term Debt Equity Ratio |
0.10 |
0.10 |
0.16 |
|
Current
Ratio |
2.66 |
2.42 |
2.06 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
2.05 |
2.24 |
2.59 |
|
Inventory
|
3.90 |
3.65 |
3.55 |
|
Debtors |
3.38 |
3.71 |
4.13 |
|
Interest
Cover Ratio |
47.45 |
73.40 |
45.17 |
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Operating
Profit Margin (%) |
24.14 |
26.11 |
26.69 |
|
Profit
Before Interest and Tax Margin (%) |
20.95 |
23.18 |
24.04 |
|
Cash
Profit Margin (%) |
20.35 |
21.83 |
22.78 |
|
Adjusted
Net Profit Margin (%) |
17.16 |
18.91 |
20.12 |
|
Return
on Capital Employed (%) |
22.31 |
28.28 |
34.75 |
|
Return
on Net Worth (%) |
20.12 |
25.69 |
34.55 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Dr. Khwaja Abdul Hamied founded The Chemical, Industrial and
Pharmaceutical Laboratories at Mumbai, which came to be popularly known as
company. He gave the company all his patent and proprietary formulas for
several drugs and medicines, without charging any royalty. On August 17, 1935,
Subject was registered as a public limited company. Subject was officially
opened on September 22, 1937 when the first products were ready for the market
and now over 170 countries buy Company’s products. Company’s products and
services are categorized into Prescription, Animal Products, OTC, Bulk Drugs,
Flavours and Fragrances, Agrochemicals and Technology.
As the Second World War cuts off drug supplies, the company starts producing
fine chemicals, dedicating all its facilities for the war effort in 1941. The
government accepted Dr. Hamied's blueprint for a technical industrial research
institute in 1942, and led to the birth of the Council of Scientific and
Industrial Research (CSIR), which is today the zenith research body in the
country. In 1944, the company bought the premises at Bombay Central and decided
to put up a "first class modern pharmaceutical works and laboratory."
It was also decided to acquire land and buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals. Company’s
product for hypertension, Serpinoid, was exported to the American Roland
Corporation, to the tune of Rs.0.800 Millions during the year 1946. The company
had lay down the first research division for attaining self-sufficiency in
technological development during the period of 1952 and the company entered
into an agreement with a Swiss firm for manufacturing foromycene. In 1960 the company
started its operations at second plant at Vikhroli, Mumbai, producing fine
chemicals with special emphasis on natural products and the Vikhroli factory
was started its manufacturing of diosgenin in 1961. This heralded the
manufacture of several steroids and hormones derived from diosgenin. Company
manufactures ampicillin in 1968; it was the first time of its kind in the
country.
The Agricultural Research Division at Bangalore was commenced to vigorous in
1972, for the purpose of scientific cultivation of medicinal plants. Company
launched the medicinal aerosols for asthma, wins Chemexcil Award for Excellence
for exports and the fourth factory begins operations at Patalganga, Maharashtra
during the periods of 1976, 1980 and 1982 respectively. The name of the Company
was changed from The Chemical Industrial & Pharmaceutical Laboratories
Limited., to the present one company in July 1984 and Company Developed
anti-cancer drugs, vinblastine and vincristine in collaboration with the
National Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing
in-house technology for indigenous manufacture of a number of basic drugs. In
1988, Cipla wins the National Award for Successful Commercialisation of
Publicly Funded R&D. Company launched etoposide; a breakthrough in cancer
chemotherapy by association with Indian Institute of Chemical Technology in
1991 and the company pioneers the manufacture of the antiretroviral drug,
zidovudine, in technological collaboration with Indian Institute of Chemical
Technology, Hyderabad. The fifth factory of the company was started its
commercial production at Kurkumbh, Maharashtra in the year 1994. As a social
responsibility, the company sets up the palliative cancer care centre through
its Foundation, begins offering free services in the year 1997 at Warje, near
Pune. In 1998 the company launched the product lamivudine, becomes one of the
few companies in the world to offer all three-component drugs of retroviral
combination therapy (zidovudine and stavudine already launched).
Launched Nevirapine, antiretroviral drug by the company in 1999, it used to
prevent the transmission of AIDS from mother to child. Cipla and Ranbaxy have
entered into a strategic partnership in the same year 1999 to jointly market a
select basket of drugs. The alliance helped their strengths in the strongly
emerging cardiovascular and perennial anti-infectives market. During the period
2000, Cipla became the first company, outside the USA and Europe to launch
CFC-free inhalers - ten years before the deadline to phase out use of CFC in
medicinal products. Four state-of-the-art manufacturing facilities sets up in
Goa in a record time of less than twelve months in the year 2002 and the second
phase of manufacturing operations at Goa was commissioned in 2003. The company
launched TIOVA (Tiotropium bromide), a novel inhaled, long-acting
anticholinergic bronchodilator that is employed as a once-daily maintenance
treatment for patients with chronic obstructive pulmonary disease (COPD). In
2004, the company signed a long-term agreement with Morton Grove
Pharmaceuticals Inc (MGP) of Illinois, US, for launch the product in US market
and made alliance with Avesthagen forges. Cipla has joined a global initiative
taken up by the Vatican in collaboration with global generic pharmaceutical
manufacturers and the International Federation of Catholic Pharmacies and
Academics to float CUMVIVIUM. The company launched a new treatment for
arthritis in technical collaboration with California-based Cymbiotics Inc.
During the period 2005, Cipla sets up state-of-the-art facility for manufacture
of formulations at Baddi, Himachal Pradesh.
As of February 2007, the company has entered into a development and supply
agreement with Drugs for Neglected Diseases Initiative (DNDi), a global
non-profit organisation, for a new anti-malarial combination drug as a global
initiative. Cipla overtook Ranbaxy and GlaxoSmithKline India (GSK) to become
the largest pharmaceutical company in the domestic market for the first time in
May 2007 and Cipla scores a generic win over Swiss drug major Roche for
manufacturing and selling generic versions of its patented anti-cancer drug
Tarceva (Erlotinib) in India in 2008.
Cipla is born
In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories,
which came to be popularly known as Cipla. He gave the company all his patent
and proprietary formulas for several drugs and medicines, without charging any
royalty. On 17.08.1935, Cipla was registered as a public limited company with
an authorised capital of Rs 0.600 million.
The search for suitable premises ended at 289, Bellasis Road (the
present corporate office) where a small bungalow with a few rooms was taken on
lease for 20 years for Rs 350 a month.
The company was officially opened on 22.09.1937 when the first products
were ready for the market. The Sunday Standard wrote: "The birth of Cipla
which was launched into the world by Dr K A Hamied will be a red letter day in
the annals of Bombay Industries. The first city in India can now boast of a
concern, which will supersede all existing firms in the magnitude of its
operations. India has lagged behind in the march of science but she is now
awakening from her lethargy. The new company has mapped out an ambitious
programme and with intelligent direction and skillful production bids fair to
establish a great reputation in the East. "
04.07.1939 was a red-letter day for company, when the Father of the
Nation, Mahatma Gandhi, honoured the factory with a visit. He was
"delighted to visit this Indian enterprise", he noted later. From the
time of the company came to the aid of the nation gasping for essential
medicines during the Second World War, the company has been among the leaders
in the pharmaceutical industry in India.
On 31.10.1939, the books showed an alltime high loss of Rs 67,935. That
was the last time the company ever recorded a deficit.
In 1942, Dr Hamied's blueprint for a technical industrial research
institute was accepted by the government and led to the birth of the Council of
Scientific and Industrial Research (CSIR), which is today the apex research
body in the country.
In 1944, the company bought the premises at Bombay Central and decided
to put up a "first class modern pharmaceutical works and laboratory."
It was also decided to acquire land and buildings at Vikhroli. With severe
import restrictions hampering production, the company decided to commence
manufacturing the basic chemicals required for pharmaceuticals.
In 1946, Cipla's product for hypertension, Serpinoid, was
exported to the American Roland Corporation, to the tune of Rs 0.800 Millions.
Five years later, the company entered into an agreement with a Swiss firm for
manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a doctorate in
chemistry from Cambridge and joined Cipla as an officer in charge of research
and development in 1960.
In 1961, the Vikhroli factory started manufacturing diosgenin. This
heralded the manufacture of several steroids and hormones derived from diosgenin.
Milestones
1935
Dr. K. A. Hamied sets up "The Chemical, Industrial and
Pharmaceutical Laboratories Limted." in a rented bungalow, at Bombay
Central.
1941
As the Second World War cuts off drug supplies, the company starts producing
fine chemicals, dedicating all its facilities for the war effort.
1952
Sets up first research division for attaining self-sufficiency in
technological development.
1960
Starts operations at second plant at Vikhroli, Mumbai, producing fine
chemicals with special emphasis on natural products.
1968
The company manufactures ampicillin for the first time in the country.
1972
Starts Agricultural Research Division at Bangalore, for scientific
cultivation of medicinal plants.
1976
The company launches medicinal aerosols for asthma.
1980
Wins Chemexcil Award for Excellence for exports.
1982
Fourth factory begins operations at Patalganga, Maharashtra.
1984
Develops anti-cancer drugs, vinblastine and vincristine in collaboration
with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for
developing inhouse technology for indigenous manufacture of a number of basic
drugs.
1985
US FDA approves Cipla's bulk drug manufacturing facilities.
1988
The company wins National Award for Successful Commercialization of
Publicly Funded R&D.
1991
Lauches etoposide, a breakthrough in cancer chemotherapy, in association
with Indian Institute of Chemical Technology.
The company pioneers the manufacture of the antiretroviral drug, zidovudine,
in technological collaboration with Indian Institute of Chemical Technology,
Hyderabad.
1994
The company’s fifth factory begins commercial production at Kurkumbh,
Maharashtra.
1997
Launches transparent Rotahaler, the world's first such dry powder inhaler
device now patented by Cipla in India and abroad. The palliative cancer care
centre set up by the Cipla Foundation, begins offering free services at Warje,
near Pune.
1998
Launches lamivudine, becoming one of the few companies in the world to offer
all three component drugs of retroviral combination therapy (zidovudine and
stavudine already launched).
1999
Launches Nevirapine, antiretroviral drug, used to prevent the
transmission of AIDS from mother to child.
2000
The company became the first company, outside the USA and Europe to
launch CFC-free inhalers – ten years before the deadline to phase out use of
CFC in medicinal products.
2002
Four state-of-the-art manufacturing facilities set up in Goa in a record
time of less than twelve months.
2003
Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD).
Commissioned second phase of manufacturing operations at Goa.
2005
Set-up state-of-the-art facility for
manufacture of formulations at Baddi, Himachal Pradesh.
BUSINESS
The company’s
products are approved by:-
- Food and Drug
Administration (FDA), USA
- Medicines
Control Agency (MCA), UK
- Therapeutic
Goods Administration (TGA), Australia
- Medicines
Control Council (MCC), South Africa
- National
Institute of Pharmacy (NIP), Hungary
- Pharmaceutical
Inspection Convention (PIC), Germany
- World Health
Organization (WHO)
Subject is one of the largest drug manufactures. It
manufactures and markets bulk drugs and formulations. It is now ranked second
in India by ORG in terms of retail pharmaceutical sales. It has manufacturing
facilities at Kurkumbh, Bangalore, Patalganda and Vikroli in Mumbai. All the
bulk drug facilities have been approved by the USA FDA and the formulation
facilities have been approved by the Medicine Control Agency, UK; the Medicine
Control Council, South Africa; the Therapeutic Goods Administration, Australia
and other international agencies.
The company has a very wide product range which includes antibiotics,
anti-bacterials, anti-asthmatics, anti-inflammatory anthelminites, anti-cancer
and cardiovasculars. In domestic formulation market, antibiotics are the mainstay,
which contributes around 50% of the company's revenue. Some of the leading
brands are Ciplox (Ciprofloxacin), Novamox (Amoxycilin) and Norflox
(Norfloxacin). The company is also has in its product portfolio Zidovir
(zidovudine, anti-AIDS drug). The company was one of the first among the Indian
pharmaceutical companies to introduce ampicillin and norfloxacin.
The company is constantly maintained its lead in introducing new drug
formulation. The company has very strong research and development facilities
which, has been bearing fruits. Its ability to quickly duplicate a new drug
introduced elsewhere and introduce it in the Indian market has played a
significant role in building a basket of formulation brands. Being one of the
earliest entrants into the market with a new drug, generally, enables a company
achieve higher realizations. In addition to being among the early entrants, one
aspect which has given an edge to company’s strategy is the ability to market
products at a significantly lower price.
The company has developed the world's first budesonide-based,
chlorofluorocarbons (CFC) - free anti-asthma inhaler, 'Budecort CFC-free'.
Budesonide, which falls in the preventive class of anti-asthmatic drugs, is
essentially a steroid and preferred due to its safety profile. The company has
invested over Rs. 200 millions in developing CFC-free asthma products over a
period of 12 month. The product is largely being targeted at the international
markets, which are CFC-sensitive and is awaiting for registration in the
European markets. The fruits of the new product will be obtained in the coming
years, since the company expects to increase its exports through this
product.
The Company has introduced formulations and APIs during the year. Some
of these advanced drugs have been manufactured for the first time India by and
include:
·
Adesera (Adefovir Tablets) for Chronic Hepatitis B virus Infection
Adults
·
Dorzox (Dorzolamide Eye Drops) for Glaucoma
·
Dytor (Torsemide Tablets and Injection) - A new loop diuretic
·
Ginette 35 (Cyproterone Acetate and Tablets) For Acne and Hirsutism
·
Rizact (Rizatriptan Tablets) for Acute Migraine
·
Valcivir (Valaciclovir Tablets) new for Herpes
Number of dosage forms and APIs manufactured the Company's various
facilities continue to enjoy the regulatory including the US FDA, MHRA UK, PIC
MCC South TGA Australia, WHO Geneva and the Department of Canada.
The Company commissioned the second phase of manufacturing operations
Goa this year. Some of these new facilities have already been accredited by
regulatory agencies.
The Company has also acquired land at Baddi in Himacha Pradesh, where
work has started on a new formulations plant.
The Cipla Chest Research Foundation Pune initiated number of important
and academic research studies in medical in its very first year. The foundation
also conducted training programmes for the medical profession.
The company has maintained high safety standards in its plants. The preservation
of environment has remained a priority. The British Safety Council Awarded the
“Five Star Ratin” to the Kurkumbh plant and also presented the coveted “Sword
of Honour” to the Patalganga plant.
It exports its products to America (41%), Asia (5%), Australia (6%),
Africa (12%), Middle East (12%) and Europe (24%).
It is one of the leading exporters of bulk drugs and formulations and
its products are registered in over 140 countries.
The leap in exports was a result of the company’s constant efforts to
tap new markets and introduce new products.
MANAGEMENT
REVIEW: 2007 - 08
Industry Structure and Development
The Indian economy continued to perform well in the current year. The actual
growth was around 9 percent. However, inflation is now the biggest concern and
there are all the signs of a slowdown in industrial growth.
The present period is critical, for both India and the world
economy. This is because of mounting problems like the impact of sub-prime
losses, spiraling oil prices and a slowdown in the economy worldwide.
Overall, this has been a satisfactory year for the Indian
pharmaceuticals industry. The total domestic market grew by 15 percent
according to ORG-IMS statistics. However exports were hit by appreciating upee
and declining margins. As the US dollar begins to pick up strength, it is hoped
that the pressure on export will ease in the near term.
Performance Review:
The Company’s turnover at Rs.44290.000 Millions crossed the USD 1 billion mark for the first time. Inspite of a sluggish start in the first quarter, the overall turnover (including other income) of the Company grew by 18 per cent. Although, the export figure was reduced by the appreciating rupee, total exports recorded a healthy growth of 18 per cent and domestic sales grew by 13 per cent. Notably, earnings on account of technology fees crossed Rs.1500.000 Millions. On the domestic front, the Company’s continued emphasis on expansion and greater market penetration contributed to its growth. During the year, Cipla was ranked number one in India in terms of domestic market share by ORG-IMS (MAT March 2008).
Awards
The Company received two honours during the year from the Forbes
Magazine, Asia. Company was named the Best Pharmaceutical Company and also the Most
Profitable Company overall among those “Under a Billion in the Region’s Top 200
Small and Mid Size companies.”
Products
The Company is focused in developing new formulations for
existing and new drug substances. Some of the significant introductions during
the year were:
- Ritomune (ritonavir tablets) – new antiretroviral for booster
therapy in HIV/AIDS
- Adlube (lubricating eye ointment with white petrolatum and mineral
oil) – for dry eye
- Olmecip (olmesartan tablets) – new angiotensin blocker for hypertension
- Ston 1 (potassium citrate and magnesium citrate solution) – for
urinary stones
- Nova (pregabalin capsules) – for neuropathic pain
- Riomont (rimonabant tablets) – for obesity management
- Imicrit (imipenem-cilastatin intravenous injection) – broad-spectrum
combination antibiotic for serious infections
- Fullform (beclomethasone dipropionate and formoterol fumarate
inhaler/rotacaps) – combination therapy for asthma control
- Junior Lanzol (lansoprazole orally disintegrating tablets) – for
reflux oesophagitis in children
- Amlopres-NB (amlodipine and nebivolol tablets) – new beta-blocker
combination therapy for hypertension
- Fit Eye (antioxidant tablets) – for eye protection
- Alfusin-D (alfuzosin hydrochloride and dutasteride tablets) – new
combination therapy for prostate enlargement
- EG1 (gemifloxacin mesylate tablets) – new quinolone antibacterial
- Enclex (enoxaparin pre-filled injection) – anticoagulant for deep
vein thrombosis
- Assurans (sildenafil tablets) – for pulmonary hypertension
- Crisanta (drospirenone and ethinyl estradiol tablets) – latest oral
contraceptive pill
- Ciclospray (ciclesonide aqueous nasal spray) – new steroid spray
for allergic rhinitis
- Vanlid (vancomycin hydrochloride capsules) – for treatment of
enterocolitis
- Zordox (doxofylline tablets) – new oral bronchodilator for asthma
and COPD
- Ceftorin (cefditoren pivoxil tablets) – advanced cephalosporin
antibiotic
- Levorid-AX (levocetrizine and ambroxol capsules) – non-sedating
cough expectorant
- Triohale (tiotropium bromide, formoterol fumarate and ciclesonide
inhaler) – first triple-drug combination inhaler for COPD
- Ziprax-CL (cefixime and clavulanic acid tablets) – new combination
for resistant infection.
The Company continued to lay stress on introducing several
new products and line extensions, along with new drug delivery systems. During
the current year, the Company successfully launched an oral emergency
contraceptive pill under the brand name i-pill
in the OTC segment.
INFRASTRUCTURE
Manufacturing Facilities
The Company’s
Rs.2500.000 Millions project in Sikkim for manufacture of formulations
including capsules, tablets, liquid orals, nasal spray, inhalers, injectables
using form-fill-seal technology, etc. is nearing full completion. The Company
has already commenced commercial production in some of these facilities in the
first quarter of the current financial year.
Commercial
production also commenced in January 2008 at the Rs.1000.000 Millions new
export oriented unit (EOU) for the manufacture of API’s and intermediates at
Kurkumbh.
The
Company’s Special Economic Zone (SEZ) project at Kerim, Goa continues to be
suspended due to the stop-work order issued by the State Government. The
Company has just received an order dated 11th July 2008 from the State
Government revoking the stop-work order consequent to a petition filed by the
developer of the SEZ against this order.
Construction
work at the Company’s SEZ project for pharmaceutical formulations, at Indore,
Madhya Pradesh, is ongoing and will be completed in stages starting from 2009.
Regulatory Approvals
Several dosage forms and API’s manufactured in
the Company’s plants continue to enjoy the approval of most major international
regulatory agencies. These agencies include the US FDA, MHRA (UK), PIC
(Germany), MCC (South Africa), TGA (Australia), Department of Health (Canada),
ANVISA (Brazil), SIDC (Slovak Republic), Ministry of Health (Kingdom of Saudi
Arabia), the Danish Medical Agency and the WHO.
Safety and Environment Care
Various health, safety and environment awareness programmes were organised for
neighbouring villages and school children living around the Company’s units at
Baddi (Himachal Pradesh), Patalganga (Maharashtra), Kurkumbh (Maharashtra),
Verna (Goa) and Bangalore (Karnataka).
As always, the Company maintained
high standards of occupational health, safety and environment preservation
practices at all its manufacturing units.
In addition, the Kurkumbh,
Bangalore and Patalganga plants have been certified for compliance with ISO
14001 and OHSAS 18001 standards. The Company continued to maintain its modern,
well-designed effluent treatment plants at its factories. The “zero discharge”
treated water is used for maintaining a green belt at all the locations.
Internal
Control Systems
The Company’s
internal control procedures are tailored to match the organisation’s pace of
growth and increasing complexity of operations. These ensure compliance with
various policies, practices and statutes. Cipla’s internal audit team carries
out extensive audits throughout the year, across all functional areas and
submits its reports to the Audit Committee of the Board of Directors.
Human Resources
Particulars of employees
required to be furnished under section 217(2A) of the Companies Act, 1956 forms
part of this report. Any shareholder interested in obtaining a copy may write
to the Company Secretary at the Registered Office of the Company.
THREATS, RISKS, CONCERNS
Patents
In a significant development, on 19th March
2008, the Delhi High Court rejected an injunction plea by Roche to prevent
Cipla from manufacturing and selling generic versions of the anti-cancer drug
erlotinib (Erlocip, Cipla) in India. According to The Economic Times, “the
Indian drug maker’s generic version of Tarceva is priced at one-third the price
of Tarceva and the HC rejected Roche appeal in public interest given the huge
cost difference between the two drugs”. This ruling vindicates Cipla’s constant
appeal to modify the patent laws of the country to safeguard the Indian
consumer from monopolistic pricing by patent holders. Such disputes in the
interpretation of the new patent laws are likely to remain a major area of
concern to millions of patients in India. They remain hopeful that the
government would pay heed and take the right steps in order to ensure that
monopolistic forces do not prevail in the Indian market and essential as well
as vital drugs remain within the reach of masses.
Drug
Pricing
As always, the health of the domestic pharmaceutical industry is very much dependent on the government’s drug pricing policy. They appeal to the Group of Ministers, which is reportedly considering the policy, to let free and fair competition rather than arbitrary drug control measures decide prices of essential drugs.
Companyis at all times willing to extend all co-operation and support to the government to achieve this objective. The Company would like to reiterate that it is willing to share its pharmaceutical technology with the Government of India, free of charge, so that the public sector pharmaceutical undertakings can also manufacture and market all vital and life saving drugs at economical prices.
OPPORTUNITIES
Domestic Markets
The Company has among the widest range of pharmaceutical
products in its portfolio. A focused approach and increased marketing efforts,
in recent years, has resulted in the growth of the Company. In the coming
years, the Company would continue to build its reputation and strong brand
equity in order to maintain its leadership position.
International Markets
The Company continues to lay emphasis on its overseas business. Almost 55 per cent of the overall income from operations comes from outside India. The Company works closely with all its overseas partners in over 180 countries to maintain its export growth. As on date, the Company has registered about 5500 products in various countries. Recently, a leading European advisory firm, after due research, ranked Cipla 14th among all pharmaceutical companies worldwide as a provider of access to medicines with a corporate social responsibility.
COMMUNITY CARE
The Company continues to work closely with several reputed non-profit
organisations such as Drugs for Neglected Diseases Initiative, Médecins Sans
Frontières and the Clinton Foundation in order to make drugs for malaria,
HIV/AIDS and several neglected diseases available at affordable prices. Company
also provides medicines to treat over a million poor, aged patients in slums
and villages through Helpage India, the Umeed Foundation, etc. These
initiatives are part of Cipla’s endeavour to fulfil its corporate social
responsibility.
The Cipla Palliative Care and Training Centre in Pune continue to provide care to terminally ill cancer patients. As of date, the Centre has provided comfort and solace to nearly 5700 patients. The focus is on integrating palliative medicine with curative therapy.
Contingent
Liabilities:
- Guarantees given by banks on
behalf of the Company Rs.526.400 Millions
- Letters of credit Rs.528.200
Millions
- Technical know-how/fees
Rs.11.500 Millions pending completion of certain obligations.
Claims against the Company not
acknowledged as debts:
- Income Tax Rs.735.700
Millions.
The above amount of Rs.735.700
Millions represents claims where the Company has filed appeals and expects a
favorable outcome, based on decisions in earlier assessment years.
- Excise Duty/Service Tax
Rs.408.400 Millions
The above represents claims where,
based on decisions in earlier years, the Company is of the opinion that the
demand is not sustainable.
- Others Rs.20.200 Millions
The Government of India has served demand notices in March 1995 and May 1995 on the Company in respect of six bulk drugs, claiming that an amount of Rs.54.600 Millions along with interest due thereon is payable into the DPEA under the Drugs (Prices Control) Order, 1979 on account of alleged unintended benefit enjoyed by the Company. The Company has filed its replies to the notices and has contended that no amount is payable into the DPEA under the Drugs (Prices Control) Order, 1979.
The Government of India (NPPA) has served show cause notices on the Company on account of overcharging in respect of Salbutamol, Theophylline, Ciprofloxacin, Cloxacillin, Norfloxacin, Cefadroxil, Trimethoprim and Sulphamethoxazole formulations under the Drugs (Prices Control) Order, 1995. The aggregate demand of the show cause notices received upto July 2003 amounted to Rs.3607.500 Millions.
In response to the writ petition filed by the Company against the aforesaid show cause notices, the Hon’ble High Court of Bombay had upheld the Company’s contentions and held that the drugs Norfloxacin, Ciprofloxacin, Theophylline, Salbutamol and Cloxacillin cannot be included under price control and consequently had quashed the above show cause notices. The Government of India had filed an appeal in the Supreme Court of India. The Hon’ble Supreme Court of India by its order dated 1st August 2003 laid down the principles for interpretation of the Drug Policy and has remanded the matter to the Hon’ble High Court of Bombay where the petitions are now pending. The Hon’ble Supreme Court of India had also given liberty to the NPPA to recover 50 per cent of the allegedly overcharged amount. In addition, the Company’s writ petition has also challenged the wrongful withholding by the Government of the exemption to Salbutamol manufactured by the Company on the grounds of Research and Development. The said challenge is pending in the Hon’ble High Court of Bombay, which has granted interlocutory orders regarding the same.
With regard to the other drugs in the show cause notices, the Company has also pointed out to the Government that it does not manufacture formulations of Cloxacillin and Cefadroxil and has also pointed out that the Company is following the notified prices in respect of formulations of Trimethoprim and Sulphamethoxazole.
The Company had not deposited the amount demanded, as in another petition challenging the Price Fixation notifications of formulations of Salbutamol, Norfloxacin, Ciprofloxacin and Theophylline, the Karnataka High Court had granted an interim stay against the government. Subsequently, in separate proceedings on the same basis as before the Karnataka High Court, the Allahabad High Court had ruled that the prices fixed by the government in respect of the said drugs were ultra vires, illegal and void. On an appeal filed by the government against this ruling, the Supreme Court stayed the judgment of the
Allahabad High Court but directed that no prosecution should be launched or coercive action taken against the Company for recovery, till the appeal was finally decided. The Company has, subsequently, in April 2007 received demand notices for the entire 100 per cent of the aforesaid amount along with interest, aggregating Rs.7482.700 Millions contrary to the orders of the Supreme Court. In addition during the financial year 2007-08, the Company has received from the government further demand notices inclusive of interest for Rs.3621.200 Millions which according to them was allegedly overcharged by the Company forn the period upto March 2007 in respect of the aforesaid drugs. Further, the Company has in March 2008 received a demand notice from the government for an amount of Rs.3.200 Millions inclusive of interest, allegedly overcharged in respect of the drug Doxycycline. The Company has received legal advice that none of these demand notices of the government is tenable or sustainable.
Fixed Assets
- Freehold Land
- Leasehold Land
- Buildings and Flats
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
Press
Release
Business
Standard / Wednesday, 30 April 2008
Cipla: Overseas sales a booster
The drug firm has managed to grow its top line but operating margins remain uninspiring.
The Rs.42270.000 Millions drug major Cipla has just seen its best ever quarter for international sales logging a growth of 23 per cent, driven by higher sales of international active pharmaceuticals ingredients and finished dosages.
Cipla follows a strategy where it has partners in foreign markets to sell
products. While this model limits aggressive profit expansion, since the
company has to share profits with the overseas partner, it also involves a
lower risk because expenses on marketing and allied costs are lower.
Unlike in recent quarters, where profits have been boosted by technology fees, the March 2008 quarter has seen the both domestic and overseas businesses fare well, the former growing 13 per cent.
However, while Cipla's domestic sales in the March quarter were reasonably good, they were not as brisk as those of players like Ranbaxy, which posted an increase of 16 per cent. Technology fees too brought in some money for Cipla, though less than in previous quarters.
As a result, the company's operating profit grew a fairly impressive 39 per
cent to 2030.000 Millions, on a revenue growth of 19.6 per cent. However some
of it was due to foreign exchange gains rather than from the core business.
So while Cipla may have managed to improve its operating profit margin for the
March 2008 quarter by 240 basis points to 18.1 per cent, this was well below
the company's run rate for the past two years.
Besides, the higher margins also came off a low base. The street was expecting much more and was disappointed because the margin expansion was more the result of a much lower other expenditure, which dropped nearly 200 basis points as a percentage of sales.
For the full year FY08, the company's operating profit margin fell 290 basis points to just over 20 per cent, because of higher raw material costs.
Moreover, the Cipla management expects to grow revenues by just about 12-15 per cent and maintain margins in FY09, numbers that have not enthused industry watchers. Technology fees could be lower in the coming years and forex gains are unlikely to sustain.
Analysts believe that earnings should grow by about 10-14 per cent over the next couple of years. Other large generic players like Ranbaxy saw operating profit margins improve by 290 basis points to 15 per cent in the March 2008 quarter.
The Cipla stock stayed flat on Tuesday at around Rs.2150.000 Millions. At this price the stock trades at 21.6 times estimated FY 09 earnings and are not cheap given the risks in the business. Thus, the stock should be a market performer going forward.
Ranbaxy, at the current price of Rs.4850.000 Millions, is somewhat cheaper and trades at under 21 time’s estimated CY 08 earnings, but that too are expected to perform only in line with the broader market.
The Econonic Times / Thursday, 20 March 2008
Cipla scores a generic win over Roche
NEW DELHI: In what could be a shot in the arm for Indian
generic drug makers, the Delhi High Court on Wednesday rejected an injunction
plea by Swiss drug major Roche to prevent Cipla from manufacturing and selling
generic versions of its patented anti-cancer drug Tarceva (Erlotinib) in India.
The Indian drug maker’s generic version of Tarceva is priced
at one-third the price of Tarceva and the HC rejected Roche appeal in public
interest given the huge cost difference between the two drugs.
However, this is only an interim order and HC will deliver
its final judgement at the completion of the hearing. The court has also
directed Cipla to keep a separate record of the sale of its generic anti-cancer
drug as it will have to compensate Roche if the final verdict goes in favour of
the Swiss company.
“Roche has applied for a stay (on the sale of the generic
version of Tarceva). This is an interim order for not granting the stay,” said
Cipla joint MD Amar Lulla.
“The court has given an interim order which allows Cipla to
market the generic copy of Tarceva. However, Cipla has been asked to keep the
sales record of Tarceva separately, as Cipla would have to pay profit and
damages cost to Roche if the Swiss company gets a favourable verdict after the
complete hearing,” an executive of an Indian drug maker who attended the
hearing told ET.
Cipla’s share closed at Rs.206 on BSE, up 0.76% from
Tuesday’s close of Rs.204.45. Roche received patent for Tarceva in India last
year, but has been subsequently facing post-grant patent opposition from Cipla
and NGOs. Two months ago Cipla decided to market copy cat versions of the drug
in India at Rs 1,600 per tablet one-third the cost of the patented drug.
India, with a strong generic drug industry is fast becoming
a battle ground between domestic drug makers and big pharma MNCs. With the
Indian pharma industry set to grow annually at 13%, drug discovery companies
are keen to establish a strong presence in India and protect their patents
here.
Domestic drug makers, on the other hand, want a liberal interpretation
of the Indian patent laws and any favourable verdict strengthens their case.
Watching closely from the sidelines are consumers who stand to gain if generic
versions are introduced at lower costs.
In addition, there are concerns in the government that once
drugs are patented, the cost of medical treatment could become unaffordable and
will prevent many patients from getting treatment of diseases such as HIV and
cancer.
Several Indian companies and NGOs have filed both pre-patent
and post-patent oppositions to prevent global companies from getting patent
protection. In the much publicised Glivec case, Novartis had unsuccessfully
challenged section 3(d) of the Indian patent law which states that an
innovation to a drug can only be granted patent if the new drug provides
significant therapeutic advantages.
This decision had made Indian patent laws one of the most
effective in the world. Another Indian drug maker, Hyderabad-based Natco has also
sought compulsory licensing (CL) from the government for two cancer drugs
Tarceva and Pfizer’s Sunitnib (Sutent). However, the decision on Cipla’s case
is not expected to have any bearing on Natco’s plea for a CL.
Business Standard / Tuesday, 01 January 2008
Cipla maintains No.1 position in Indian
mkt
P B Jayakumar
Mumbai
Tops pharma rankings with 5.42% market share, a head of
Ranbaxy and GSK.
Cipla Laboratories continues to be the largest
pharmaceutical company in the domestic market.
Cipla has topped the ORG-IMS rankings for the month of
November with a market share of 5.42 per cent and sales of Rs.1463.200
Millions, edging out Ranbaxy which stood at second position with 5.09 per cent
market share and Rs.1374.900 Millions sales.
In October, Cipla topped with Rs.1520.400 Millions sales and
a market share of 5.23 per cent, ahead of Ranbaxy, which garnered Rs.1484.000
Millions sales and 5.11 per cent market share, said sources.
Cipla overtook Ranbaxy and GlaxoSmithKline India (GSK) to
become the largest pharmaceutical company in the domestic market for the first
time in May 2007.
While GSK has maintained its number three position in
November, Zydus Cadila (fourth), Alkem Laboratories (fifth) and Sun Pharma
(sixth) have moved one rank up from October.
Nicholas Piramal, which faced raw material shortages for its
largest selling codiene based formulations, like Phensydyl, in recent months,
slipped three positions to number seven in November.
ORG-IMS, the largest market intelligence company in India
focusing on the healthcare sector, tracks sales of Indian pharmas on a monthly
basis, through over 3,000 stockists and 6,000 doctors.
“Indian companies are increasing their share in the domestic
market mainly due to increased number of high value new introductions, though
the number of new introductions has reduced recently,” Shailesh Gadre, managing
director, ORG-IMS, said in an interview last week.
Ranbaxy's growth has been largely driven by new introductions
such as Volix, an anti-diabetes drug launched in January, Oframax-Forte and
anti-asthmatic drug Synasma, which it in-licensed from Eurodrug Laboratories.
Ranbaxy's antibiotic Mox (amoxyllin), which was not among
the top ten brands a year ago, has grown to become the fourth largest brand in
the domestic market with monthly sales at Rs.98.000 Millions in November,
sources said.
Cipla's growth was powered by positive growth in their
existing portfolio, especially its respiratory products.
However, GSK has lost market share mainly in its main
portfolios such as anti- infectives, dermatologicals and pain management drugs
which grew slower than the market for these products, ORG-IMS said.
ORG-IMS named Alkem Laboratories as the only company among
the top ten for which both older products (10 per cent) and new introductions
(12 per cent) have contributed significantly to value growth.
“Our growth in the domestic market is mainly due to the
growth of our anti-infective Taxim and other brands such as Taximo, Clavem, A
to Z and Gemcal,” explained Vinod Dua, head, domestic business of Alkem
Laboratories.
Alkem's Taxim is now the third largest brand in the domestic
market with sales of Rs.103.000 Millions, behind Pfizer's cough syrup Corex
(Rs.152.000 Millions) and Novartis India's pain killer Voveron (Rs.116.000
Millions).
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.47 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.66.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
YES |
|
--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 |
|
