MIRA
INFORM REPORT
|
Report Date : |
01.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
WOCKHARDT LIMITED |
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Registered Office : |
Wockhardt Towers, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.07.1999 |
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Com. Reg. No.: |
11-120720 |
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CIN No.: [Company
Identification No.] |
L24230MHPLC120720 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMW01642E |
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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 and Marketing of Pharmaceuticals in the form of
Injections, Liquids and solutions, Agro Products, Tablets and Capsules,
Ointments, Powders, Bulk Drugs, large volume parenterals and others. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 51000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed Company primarily engaged in
manufacturing and marketing of Pharmaceutical products. The Company has
emerged as a leading player in domestic as well as international markets,
with widely accepted and efficacious drugs and formulations. Directors are
very well known industrialists. The Company’s performance has been extremely
well. Trade relations are fair. Payments are correct and as per commitments.
It can be considered good for business dealings on normal trade terms and
conditions. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Wockhardt Towers, Bandra-Kurla Complex, Bandra (East), Mumbai – 400
051, Maharashtra, India |
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Tel. No.: |
91-22-26534444 / 26533333 |
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Fax No.: |
91-22-26522727 / 26522828 / 26534242 |
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E-Mail : |
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Website : |
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Factory : |
Pharmaceuticals
and Fermentation ·
L-1, M.I.D.C. Area, Chikalthana, Aurangabad - 431 210, Maharashtra,
India. Tel. No.: 91-240-2485102 /
2485041 / 2485696 Fax No. :91-240-2484796 ·
B-51/2, M.I.D.C. Area, Waluj - 431 136, Aurangabad, Maharashtra,
India. Tel. No.: 91-240-2554426 /
2554092 / 2464315 Fax No.: 91-240-2554356 ·
Plot No. 87-A, Silver Industrial Estate, Patalia Road, Bhimpore, Nani
Daman - 396 210, India. Tel. No.: 91-260-2257042 Fax No.: 91-260-2258940 ·
69-72 SIDCO Pharmaceutical Complex, Alathur – 603 110, Tamilnadu,
India. Tel. No.: 91-4114-246210 /
246410 Fax No.: 91-4114-246432 ·
Survey No. 106/4, 5, 7 Daman Industrial te, Kadaiya, Nani Daman – 396
210 ·
Plot No. H-14/2, Waluj Industrial Area, MIDC, Waluj, Aurangabad,
Maharashtra, India ·
57, Kunjhal, Barotiwala, Nalagarh, District Solan, Himachal Pradesh –
174 103, India Bulk Actives and
Intermediates ·
Plot No.138, G.I.D.C. Estate, Ankleshwar - 393 002, Dist. Bharuch,
Gujarat, India. Tel. No.: 91-2646-251293 /
251316 / 221367 Fax No.: 91-2646-251087 Infant and
Medical Nutrition ·
Village Sarsini, Lalru P.O., Ambala-Chandigarh Road, Dist. Patiala,
Punjab - 140 501, India. Tel. No.: 91-171-279119 Fax No.: 91-171-279118 BIO-PESTICIDES ·
B-33, M.I.D.C. Area, Waluj - 431 136, Aurangabad, Maharashtra, India. Tel. No.: 91-240-2564756 /
2564757 Fax No.: 91-240-2564757 R and D Centre ·
D – 4, M.I.D.C Industrial Area, Chikalthana, Aurangabad – 431 210,
Maharashtra, India Tel. No.: 91-240-2485498 Fax No.: 91-240-2489219 Healthcare
Services ·
Wockhardt Hospital and Hear Institute 14, Cunnigham Road,
Bangalore – 560 052, Karnataka, India Tel. No.: 91-80-2261037 /
2281146 Fax No.: 91-80-2281149 E-Mail: wocknet@giasbg01.vsnl.net.in ·
Wockhardt Medical Centre 2/7, Sarat Bose Road,
Kolkata – 700 020, West Bengal, India Tel. No.: 91-33-24754320 /
24749165 Fax No.: 9133-24749237 E-Mail: wmccal@cal.vsnl.net.in ·
Wockhardt Hospital & Kidney Institute 111A Rash Behari Avenue,
Kolkata – 700 029, West Bengal, India. Tel. No.: 91-33-24633320 (20 lines) Fax No.: 91-33-24634802 E-Mail: wmccal@cal.vsnl.net.in |
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Overseas Office : |
·
Wockhardt Europe
Limited Central Chambers, Dame
Court, Dublin - 2, Ireland. ·
Wockhardt
Americas Inc.
188 Route, 10, West Suite 309, East Hanover, New Jersey 07936, U.S.A. Tel. No.: 1-973-5601901 Fax No.: 1-973-5601904 E-mail : wockamer@worldnet.att.net ·
Wockhardt
Limited No. 1611, Jindu Apartments, Building - B,
Fanh Zhuang, Beijing 100078,
China. Tel/Fax No.:
86-10-67620458 E-Mail : bkm@info.iuol.cn.net ·
Wockhardt
Limited Plateau Akasaka North # 104, 7-6-59 Akasaka, Minato-ku, Tokyo
107, Japan. Tel. No.: 03-3505-5964 Fax No.: 03-3856-0798 ·
Wockhardt
(Europe) Limited Centre for African
Operations, P. O. Box 42718, Nairobi,
Kenya. Tel. No.: 254.2.440020 Fax No.: 254.2.447005 E-mail : wockafrica@nbnet.co.ke ·
Wallis
Laboratories Limited Laporte Way, Luton,
Bedfordshire, LU4 8WL, England Tel. No.: 44-1582-413615 Fax No.: 44-1582-417964 E-Mail : rajan@wallisgroup.com ·
Wockhardt Europe
Limited Trident Trust Company (B.V.I.) Limited,
Trident Chambers, P. O. Box 1
6, Road Town, Tortola, British Virgin Islands. ·
Wockhardt Europe
Limited Office No. A225, Prospect Vernadskago, DGM
101, Korpus 3, Moscow – 117526, Russia Tel/Fax No : 95-937-2288 E-Mail : wockru@com2com.ru ·
Wockhardt
Limited 38, Nguyen Thi Huynh Street, Ward 11,
Dist. Phu Nhuan, Ho Chi Minh City, Vietnam. Tel. No:: 00848-8477862 Fax No:: 00848-8440953 E-Mail:wock@hcm.vnn.vn ·
Wockhardt
Limited M. N. Egypt, 50 B, Ahed Eaziz Fahim
Street, Horeya, Hiliopolis, Cairo, Egypt. Tel. No.: 00202-2414280 Fax No.: 00202-2456221 |
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International Offices : |
Wockhardt USA
Inc. |
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Branches : |
Located at :- ·
Surendra Industrial Compound, 2nd Pokhran Road, Post Box
117, Thane - 400 601, India. Tel/Fax No.:
91-22-25343106 / 2534 28 60 ·
BFF2, Dilkush Industrial Estate, G T Karnal Road, Delhi - 110 033,
India. Tel. No.: 91-11-272260 74
/ 27226293 / 27144061 Fax No.: 91-11-27419716 ·
94-B Abhiramapuram Fourth Street, Alwarpet, Chennai - 600 018, India. Tel. No.: 91-44-2499 79 26
/ 24997927 / 24997928 Fax No.: 91-44-24997929 ·
P-25, C.I.T. Road, Scheme No. VI - M, Calcutta - 700 054, India. Tel. No.: 91-33-23341761 /
23342272 / 23340703 Fax No.: 91-33-23340705 ·
A-7, Meerut Road, Near Sri Ram Piston, Ghaziabad - 201 001, Uttar
Pradesh, India. Tel. No.: 91-575-2714883 Fax No.: 91-575-2718995 |
DIRECTORS
|
Name : |
Mr. Habil F. Khorakiwala |
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Designation : |
Chairman |
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Qualification : |
B.Pharm, M.S. |
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Date of Appointment : |
01.07.1984 |
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Previous
Employment |
Wockhardt Private Limited – Managing Director |
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Name : |
Mr. Huzaifa H Khorakiwala |
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Designation : |
Executive Director |
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Name : |
Dr Murtaza H Khorakiwala |
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Designation : |
Executive Director |
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Name : |
Mr. Lalit Kumar |
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Designation : |
Executive Director |
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Name : |
Mr. Dinesh Dua |
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Designation : |
President – Biotechnology Strategic Business Unit |
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Name : |
Mr. Rajiv B Gandhi |
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Designation : |
Director - Corporate Finance and
Information |
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Name : |
Dr. Yatendra Kumar |
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Designation : |
President – Pharma Research and Regulatory Affairs |
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Name : |
Mr. Abbas Master |
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Designation : |
President - Projects |
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Name : |
Mr. Sanjeev V Mehta |
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Designation : |
President - Corporate Supply Chain |
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Name : |
Mr. K A Narayan |
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Designation : |
President - Corporate Human Resources
& Legal |
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Name : |
Dr. Mahesh V Patel |
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Designation : |
Director - New Drug Discovery |
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Name : |
Dr. MK Sahib |
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Designation : |
Director - Genomics and Biotechnology Research |
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Name : |
Dr. Bharat Trivedi |
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Designation : |
Chief Scientific Officer Medicinal Chemistry-Drug Discovery |
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Name : |
Mr. Arvind Vasudeva |
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Designation : |
President - Japan and Developing Countries |
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Name : |
Mr. George Cubuk |
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Designation : |
Managing Director Esparma GmbH, Germany |
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Name : |
Mr. Sirjiwan Singh |
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Designation : |
Managing Director - Wockhardt UK, Wales |
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Name : |
Mr. Sunil Khera |
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Designation : |
President – Domestic and International (ROW) Business |
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Name : |
Mr. Frederic Champavere |
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Designation : |
President – Negma Laboratories, France |
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Name : |
Mr. Manish Gupta |
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Designation : |
Managing Director – Pinewood Laboratories, Ireland |
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Name : |
Mr. Kurt Orlofski |
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Designation : |
President – Wockhardt USA Inc. and Morton Grove Pharmaceuticals Inc.,
USA |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.12.2007)
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
80585382 |
73.64 |
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Financial Institutions |
85000 |
0.08 |
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Banks |
262733 |
0.24 |
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Mutual Funds |
2428493 |
2.22 |
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Insurance Companies |
8625555 |
7.88 |
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Foreign Institutional Investors/OCB’s |
3851983 |
3.52 |
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Bodies Corporate |
1674757 |
1.53 |
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Non-resident Indians |
215858 |
0.19 |
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Shares Representing GDRs |
774718 |
0.71 |
|
Public |
10931424 |
9.99 |
|
Total |
109435903 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pharmaceuticals in the form of Injections,
Liquids and solutions, Agro Products, Tablets and Capsules, Ointments,
Powders, Bulk Drugs, large volume parenterals and others. |
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Products : |
·
Pelox ·
Spasmoproxyvon ·
Proxyvon |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Injections |
Ltrs. |
462600) |
245764 |
|
Liquids and Solutions |
Ltrs. |
2100000 |
2271455) |
|
Tablets and Capsules |
Nos. in Lacs |
53878 |
41933) |
|
Ointments |
Kgs. |
240000) |
96986) |
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Powder |
Kgs. |
- |
4885093) |
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Bulk Drugs |
Kgs. |
420200) |
450918) |
GENERAL
INFORMATION
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No. of Employees : |
2700 |
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Bankers : |
·
State Bank of India, Mumbai (CAG Branch) ·
Punjab National Bank ·
HSBC ·
Standard Chartered Grindlays Bank Limited, Mumbai ·
Citibank N.A., Mumbai ·
ICICI Bank Limited ·
HDFC Bank Middle East, 16, Veer Nariman Road, Fort, P.O. Box. 876,
Mumbai - 400001 ·
ABN Amro Bank N. V. ·
Credit Agricole Indosuez ·
Credit Lyonnais ·
Dena Bank, 17 B, Horniman Circle, Fort, Mumbai – 400023, Maharashtra,
India |
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Facilities : |
(A) Term Loans are secured as under : ·
Foreign currency denominated loan (External Commercial Borrowings) are
secured by mortgage and hypothecation of movable and immovable assets at
Aurangabad, Ankleshwar, Daman, Biotech-Waluj, Cephal-Waluj (Plant and
Machinery) and Research Centre, Aurangabad. The loans are repayable in July
2008, September 2008 and March 2009. ·
Rupee denominated loans from banks and others are for purchase of
vehicles and are secured by hypothecation of vehicles purchased under the
agreement. (B) Working
capital loans from banks are secured by hypothecation of inventories and
debtors.
108,500
(Previous Year – 108,500 ) Zero Coupon Foreign Currency Convertible Bonds of
USD 1000 each are: ·
Convertible by the holders at any time on or after 24 November, 2004 but
prior to close of business on 25th September, 2009. Each bond will be
converted into 94.265 fully paid up equity shares with par value of Rs. 5 per
share at a fixed price of Rs. 486.075 per share. ·
Redeemable, in whole but not in part, at the option of the Company at
any time on or after 25th October 2007 but not less than seven business days
prior to maturity date i.e. 25th October, 2009 as per the terms and
conditions of the bonds mentioned in the offering circular. ·
Redeemable on maturity date at 129.578 percent of its principal
amount, if not redeemed or converted earlier. |
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Banking
Relations : |
Good |
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Auditors : |
Batliboi and Company Chartered Accountants |
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Associates : |
Khorakiwala Foundation |
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Subsidiaries : |
·
Wockhardt UK Holdings Limited (formerly, Wockhardt UK Limited) ·
CP Pharmaceuticals Limited ·
CP Pharma (Schweiz) AG ·
Wallis Group Limited ·
The Wallis Laboratory Limited ·
Wockhardt Farmaceutica Do Brazil Ltda ·
Wallis Licensing Limited ·
Wockhardt Biopharm Limited ·
Vinton Healthcare Limited ·
Wockhardt Infrastructure Development Limited ·
esparma GmbH ·
Wockhardt Europe Limited ·
Wockhardt Nigeria Limited ·
Wockhardt USA Inc. ·
Wockhardt EU Operations (Swiss) AG ·
Wockhardt UK Limited ·
Wockhardt Cyprus Limited ·
Wockpharma Ireland Limited ·
Pinewood Laboratories Limited ·
Nonash Limited ·
PWH Limited ·
Atlantis USA Inc. ·
Negma Lerads S.A.S. ·
Wockhardt France (Holdings) S.A.S. ·
esparma AG ·
Wockhardt Holding Corp ·
MGP Holding Corporation ·
Morton Grove Pharmaceuticals, Inc. ·
MGP Incorporation ·
Girex S.A.S. ·
Mazal Pharmaceutique S.A.R.L. ·
Pharma 2000 S.A.S. ·
Hariphar S.C. ·
Niverpharma S.A.S. ·
Cap Dermatology S.A.R.L. ·
Negma Beneulex S.A. ·
S.E.G.A. S.A.S. ·
Chams Informatique S.A.R.L. ·
S.C.I. Salome ·
DMH S.A.S. ·
Phytex S.A.S. ·
Scomedia S.A.S. ·
Wallis Group Limited ·
Wockhardt Rhein Biopharm Limited |
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Fellow Subsidiary : |
Carol Info Services Limited |
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Holding Company : |
Khorakiwala Holdings and Investments Private Limited |
CAPITAL STRUCTURE
(As on 31.12.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250000000 |
Equity Shares |
Rs.5/- each |
Rs.1250.000 |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
109435903 |
Equity Shares |
Rs.5/- each |
Rs.547.180 |
Of the above :
·
70,123,304 (Previous Year – 70,123,304) fully paid-up equity shares of
Rs. 5/- each were allotted pursuant to scheme of arrangement to demerge
pharmaceuticals business of Carol Info Services Limited (‘CISL’) (formerly
Wockhardt Life Sciences Limited).
·
2,400,000 (Previous Year – 2,400,000) fully paid-up equity shares of Rs.
5/- each were allotted pursuant to amalgamation of Wockhardt Veterinary Limited
(‘WVL’) with the Company.
·
69,716,132 (Previous Year – 69,716,132) equity shares of Rs. 5/- fully
paid up are held by Khorakiwala Holdings and Investments Private Limited, the
holding company.
·
439,200 (Previous Year – 439,200) fully paid equity shares of Rs. 5/-
each were allotted pursuant to exercise of stock options.
·
36,431,502 (Previous Year – 36,431,502) equity shares of Rs. 5/- each
are allotted as Bonus shares out of Capital Redemption Reserve.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
547.180 |
547.180 |
546.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9713.060 |
9018.370 |
7505.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10260.240 |
9565.550 |
8051.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2539.760 |
2221.580 |
3156.300 |
|
|
2] Unsecured Loans |
5548.280 |
4853.420 |
4940.800 |
|
|
TOTAL BORROWING |
8088.040 |
7075.000 |
8097.100 |
|
|
DEFERRED TAX LIABILITIES |
1121.210 |
816.730 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19469.490 |
17457.280 |
16149.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5697.500 |
5482.500 |
3656.200 |
|
|
Capital work-in-progress |
3409.210 |
1530.110 |
2311.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
3024.660 |
1598.910 |
1842.800 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2654.560
|
2149.820 |
1561.500 |
|
|
Sundry Debtors |
3469.840
|
2543.780 |
2066.800 |
|
|
Cash & Bank Balances |
1771.490
|
5192.170 |
6460.700 |
|
|
Loans & Advances to subsidiaries |
1368.470
|
1061.550 |
0.000 |
|
|
Other Loans & Advances |
1213.820
|
1062.260 |
1620.100 |
|
Total
Current Assets |
10478.180
|
12009.580 |
11709.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2574.600
|
2337.200 |
2611.900 |
|
|
Provisions |
565.460
|
826.620 |
758.600 |
|
Total
Current Liabilities |
3140.060
|
3163.820 |
3370.500 |
|
|
Net Current Assets |
7338.120
|
8845.760 |
8338.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
19469.490 |
17457.280 |
16149.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
Sales Turnover |
12367.930 |
11344.880 |
9978.500 |
|
|
Other Income |
110.070 |
219.050 |
584.000 |
|
|
Total Income |
12478.000 |
11563.930 |
10562.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2731.070 |
2526.240 |
2654.200 |
|
|
Provision for Taxation |
592.310 |
390.750 |
269.500 |
|
|
Profit/(Loss) After Tax |
2138.760 |
2135.490 |
2384.700 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1370.100 |
1142.080 |
|
|
|
Capital Goods |
524.560 |
254.710 |
|
|
Total Imports |
1894.660 |
1396.790 |
1343.810 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
207.200 |
|
|
Administrative Expenses |
0.000 |
0.000 |
1075.200 |
|
|
Material Consumed and purchase of goods |
6059.880 |
4809.270 |
4322.300 |
|
|
Operating and Other Expenses |
3696.670 |
3332.470 |
0.000 |
|
|
Research and Other Expenses |
354.540 |
512.090 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
(517.650) |
(257.020) |
(437.700) |
|
|
Employee Cost |
0.000 |
0.000 |
810.500 |
|
|
Excise Duty |
0.000 |
0.000 |
491.700 |
|
|
Interest |
0.000 |
0.000 |
270.700 |
|
|
Financial Expenses |
(191.920) |
(311.270) |
0.000 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
740.800 |
|
|
Power & Fuel |
0.000 |
0.000 |
185.400 |
|
|
Depreciation & Amortization |
345.410 |
348.430 |
242.200 |
|
|
Other Expenditure |
0.000 |
603.720 |
0.000 |
|
Total Expenditure |
9746.930 |
9037.690 |
7908.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2008 |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
3297.000 |
3870.800 |
4168.300 |
|
Other
Income |
19.000 |
132.200 |
28.700 |
|
Total
Income |
3316.000 |
4003.000 |
4197.000 |
|
Total
Expenditure |
2897.000 |
3033.400 |
3722.600 |
|
Operating
Profit |
419.000 |
969.600 |
474.400 |
|
Interest |
216.000 |
501.000 |
96.600 |
|
Gross
Profit |
203.000 |
468.600 |
377.800 |
|
Depreciation |
99.000 |
102.000 |
123.400 |
|
Tax |
97.000 |
133.100 |
120.100 |
|
Reported
PAT |
7.000 |
233.500 |
134.300 |
KEY RATIOS
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
Debt-Equity Ratio |
0.76 |
0.86 |
1.14 |
|
Long Term Debt-Equity Ratio |
0.67 |
0.86 |
1.13 |
|
Current Ratio |
2.16 |
3.17 |
3.49 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
1.68 |
1.91 |
2.23 |
|
Inventory |
5.15 |
6.15 |
8.13 |
|
Debtors |
4.11 |
4.95 |
5.68 |
|
Interest Cover Ratio |
8.41 |
30.1 |
10.8 |
|
Operating Profit Margin(%) |
27.87 |
31.05 |
31.74 |
|
Profit Before Interest And Tax
Margin(%) |
25.07 |
28 |
29.31 |
|
Cash Profit Margin(%) |
20.1 |
25.6 |
26.33 |
|
Adjusted Net Profit Margin(%) |
17.3 |
22.55 |
23.9 |
|
Return On Capital Employed(%) |
17.72 |
19.5 |
19.17 |
|
Return On Net Worth(%) |
21.58 |
29.23 |
33.45 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject is a global pharmaceutical company incorporated in 8th July of the
year 1999. Subject is engaged in the manufacturing and marketing of
pharmaceutical and biotechnological products, also involved in new drug
discovery and clinical trials and has an active multi-disciplinary R and D
program. The Company has 10 manufacturing plants across India and UK, which are
certified under USA's FDA (United States Food and Drug Administration) and UK's
MHRA, subsidiaries in US, UK and Brazil, majority- owned companies in South
Africa and Mexico and the company's marketing offices situated in Africa,
Russia, Central and South East Asia.
Subject had launched the cardiac drug enalapril maleate in the US through its
marketing joint venture with Sidmak Laboratories in the year 2000 and also in
the same year the company had set up a corporate training centre with modern
and state-of-the-art facility under one roof at Aurangabad. During the year
2001, the company had terminated its three-year old marketing alliance with
Sidmak Laboratories, one of the top ten generic Pharma companies in the US and
had entered into a strategic alliance with a Japanese firm Eisai Company
Limited to manufacture and market a neurology drug Methycobal. Subject had
restructured its field organization in the year 2003 to upgrade its
competitiveness and productivity, launched new four speciality hospitals at its
Mulund complex in Mumbai and also in the same year, the company had acquired CP
pharmaceuticals (Holdings) Limited, along with its subsidiaries. Subject had
launched Asia's first human recombinant insulin, making India the first Asian
country to develop, manufacture and market the product and also received USFDA
approval for marketing bethanecol Chloride tablets in the US.
During the year 2004, the company had acquired the German pharmaceutical
company esparma GmbH for a consideration of million (around Rs 490 millions)
and in the identical year of 2004, Subject got USFDA nod for 6 manufacturing
units. As at February 2005, the company had launched India's first automatic
insulin delivery device specially designed for the convenience of Indian
diabetic patients. During the same year of 2005, Subject forged alliance with
Kamineni Group to establish two world-class heart hospitals in the Hyderabad
and the company had received US FDA approval for marketing cefuroxime axetil in
the US market. The US FDA had approved the company's Waluj plant in the year
2006. During the year 2007, Subject had signed in-licensing pact with Crawford
Healthcare of UK. The Company had acquired Negma Laboratories in the same year
2007. Negma, the fourth largest independent, integrated pharmaceutical groups
in France, in an all-cash deal worth $ 265 million.
In October of the year 2007, Subject had acquired the Morton Grove
Pharmaceuticals, a leading liquid generic and speciality dermatology company in
the US and also in the same month and the same year, the company had inked an
in-licensing agreement with the Italy-based Gnosis, to market SAMe (S-adenosyl
methionine). The Company had approved demerger of its Research and Development business
into a separate entity in January of the year 2008 and also in the same month
of the year, Subject had launched the Cetirizine tablets in the USA. The
Company had received the ANDA from the US FDA for marketing the tablets
containing 5mg and 10mg Cetirizine Hydrochloride.
Subject had received approval from the US FDA for marketing the tablets
containing 250 mg, 500 mg and 600 mg Azithromycin in February 2008. As at
August 2008, the company had received tentative approval from the US FDA to
make and sell Sumatriptan Succinate injection, in the strength of 6-mg/0.5 ml.
Subject is planning to build a global manufacturing hub in Aurangabad. It has
signed a memorandum of understanding (MoU) with Maharashtra Industrial
Development Corporation (MIDC) to establish a special economic zone (SEZ) in
Aurangabad. This SEZ will be spread across 107 hectares of land.
CONSOLIDATED
FINANCIAL STATEMENTS
The Company recorded 53.5% growth in consolidated revenue for the year at Rs.
26532 million. The Consolidated Net Profit grew by 59.9% at Rs. 3858 million as
against Rs. 2413 million for the previous financial year. As required under
Clause 32 of the Listing Agreements with the Stock Exchanges, audited
consolidated financial statements form part of the annual Report and the same
are annexed to this report.
DIVIDEND AND RESERVES
The Board of Directors in the month of October, 2007 had declared and paid an
interim dividend of 175% on equity shares for the year December 31, 2007,
absorbing an amount of Rs. 957.56 million. The Board further recommends a final
dividend of 50%, which will absorb an amount of Rs.273.59 million. It is
recommended that an amount of Rs. 500.00 million be transferred to General
Reserve.
CHANGES IN CAPITAL STRUCTURE
During the year there has been no change in the capital structure of the
Company.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Key business highlights:
·
The European business was at Rs. 14095 million growing at 97% and thus
exceeded @ 250 million. The year captured the effect of full annual
consolidation of Pinewood, the Company's acquisition Ireland and Negma Lerads,
the Company's acquisition in France in May 2007.
·
The Indian business was at Rs. 7812 million growing at 15%. This was
largely on account of new product launches and in-licensing arrangements in
fast-growing areas of dermatology, nutraceuticals and osteoarthritis.
·
The US business was at Rs. 2718 million growing at 64%. This was backed
by new product launches and the acquisition of Morton Grove Pharmaceuticals in
October 2007.
·
The ROW business was at Rs. 1906 million growing at 11% on back of
strong formulation sales and biotech registrations in South East Asian markets,
Africa, GCC countries and Latin America.
OUTLOOK
ON OPPORTUNITIES AND CHALLENGES
Global pharma companies are experiencing an ever shifting landscape, ripe with
challenges and opportunities. In this challenging environment, Subject is
enhancing its reach and leveraging its competitive advantages to become a
global player.
More and more governments worldwide are seeking to curb their soaring
prescription drug costs through greater use of generics. These opportunities
are presenting themselves not only India's traditional wealthy client markets
such as the U.S. and European Union nations but also in emerging economies with
vast populations such as Africa, South America, Asia and Eastern and Central
Europe.
The global market for contract manufacturing was estimated to be US$ 19 billion
and is likely to expand to US$ 31 billion by 2010. Asia - Pacific is expected
to emerge as the fastest growing region. This region was estimated to be US$ 2
billion and projected to reach US$ 3 billion by 2010 (CAGR of 16%). Sterile
injectables represent the fastest growing product segment of the pharmaceutical
contract manufacturing Industry. This segment was valued at US$ 3 billion. It
is anticipated that there will be massive demand for manufacturing sterile
syringes, cartridges and vials as biopharmaceutical companies continue to make
R and D investments.
Subject has substantial investment in manufacturing facilities and a very broad
range of capabilities, with 9 plants in India, 4 in Europe and 1 in US. Most of
these plants have got approval for either MHRA or US FDA or both as well as
other national and international bodies. Given this and its experience in
contract research and manufacturing services (CRAMS) via Wockhardt UK's
contract with Amyln, the Company has taken a decision to develop and implement
a plan to become a significant player in this large and growing market.
Both multinational and local drug manufacturers could eventually benefit from
the market potential of India's population of over one billion. A large market
will likely open up as the result of a projected boom in health insurance, an
area in which the country is currently woefully underdeveloped. New government
initiatives seek to enable the majority of the population to access the life
saving drugs they need, while even greater opportunities may be presented by
the rise of the new Indian consumer. This group-urban, middle class and
wealthy-live fast-paced, Western-style lives and, as a result, they are
beginning to suffer from Western, lifestyle-related illnesses, for which they
want, and can afford, innovative drug treatments.
The domestic industry is still spending far too little on R and D, which must
change quickly if it is to begin to address the new opportunities and
challenges. On the international front, the industry still has some catching up
to do in terms of quality assurance while, on the local market, pricing remains
a problem.
Subject invests heavily in R and D with a robust NCE (new Chemical Entity)
program with 5 molecules in various stages of development. Our lead molecule,
WCK 771, is currently undergoing phase IIb clinical trials.
SEGMENT-WISE PERFORMANCE:
The Company is exclusively into pharmaceutical business segment.
Internal Control Systems and Adequacy
The Company has set up internal control procedures commensurate with its size
and nature of the business. These business procedures ensure optimum use and
protection of the resources and compliance with the policies, procedures and
statutes. The internal control systems provide for well-defined policies
guidelines, authorizations and approval procedures. the prime objective of such
audits is to test the adequacy and effectiveness of the internal controls laid
down by management and to suggest improvements.
Human Resources
Subject, change is the only constant in the process of constantly reinventing
themselves. The changing Indian pharmaceutical industry, the evolution of
biotechnology and global competition, call for new strategy and organizational
responses. Subject, the global acquisitions, expansion into overseas markets
and increasing efforts in biotechnology research and marketing, have market the
beginning of a revolution in the organization.
The context in which subject operates today thus demands new and dynamic
leadership and management responses. Leadership development is therefore a
strategic priority for subject. Alongside the other initiatives to build a
learning organization and leverage people potential, they have embarked on a
systematic process of developing global leadership capabilities. There is no
greater joy for them at subject than to nurture the more than 6000 people at
the threshold of the opportunities that lie ahead.
Subject, employee initiatives are constantly updated and modified to mark newer
beginnings. The professional development programs are designed to cover every
spectrum of individual development. A competency-based model has been adopted
which defines the required competencies and employee development initiatives at
various levels and functions.
FIXED ASSETS
·
Trademarks / Technical knowhow
·
Software
·
Freehold land
·
Leasehold land
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipments
·
Information Technology Equipments
·
Vehicles
CONTINGENT LIABILITIES NOT PROVIDED FOR
·
Demands by Central Excise authorities in respect of Classification/Valuation/Cenvat
Credit related disputes; stay orders have been obtained by the Company in case
of demands which have been confirmed – Rs. 63.01 million (Previous Year – Rs.
66.67 million).
·
Demand by Income tax authorities Rs. 535.35 million (Previous Year – Rs.
408.53 million) disputed by the Company.
·
Corporate Guarantee given on behalf of various subsidiaries in respect
of bank loans amounts to Rs. 11,599.73 million (Previous Year – Rs. 13,218.52
million).
·
108,500 (Previous Year – 108,500) Zero coupon Foreign Currency
Convertible Bonds of USD 1,000 each are:
o
Convertible by the holders at any time on or after November 24, 2004 but
prior to close of business on September 25, 2009. Each bond will be converted
into 94.265 fully paid up equity share with par value of Rs. 5 per share at a
fixed price of Rs. 486.075 per share.
o
redeemable, in whole but not in part, at the option of the Company at
any time on or after October 25, 2007 but not less than seven business days
prior to maturity date i.e October 25, 2009 subject to the fulfillment of
certain terms and obtaining requisite approvals.
o
redeemable on maturity date at 129.578 percent of its principal amount,
if not redeemed or converted earlier.
The Bonds are considered as monetary liability. The bonds are redeemable
only if there is no conversion of the bonds earlier. Hence the payment of
premium on redemption is contingent in nature, the outcome of which is
dependent on uncertain future events. Hence no provision is considered
necessary nor has been made in the accounts in respect of such premium
amounting to a maximum of Rs. 775.98 million. (Previous Year – Rs. 581.74
million).
WEB DETAILS
Profile
Preparing for change before change beckons. Harnessing the power of
innovative research. Providing high-quality medicines for a healthier world.
This is the world at Wockhardt.
Subject is a global, pharmaceutical and biotechnology company
that has grown by leveraging two powerful trends impacting the world of
medicine - globalisation and biotechnology.
The Company has a market capitalisation of over US$ 1 billion
and an annual turnover of US$ 650 million. Subject’s pace of growth and
momentum permeates every mindset, system and technology within the
organisation.
Subject today, is distinguished by a strong and growing
presence in the world’s leading markets, with more than 65% of its revenue
coming from Europe and the United States. Subject’s market presence covers
formulations, biopharmaceuticals, nutrition products, vaccines and active
pharmaceutical ingredients (APIs).
The Company has its headquarters in India, and has
·
14 manufacturing plants in India, UK, Ireland, France and US
·
Subsidiaries in US, UK, Ireland and France
·
Marketing offices in Africa, Russia, Central and South East Asia.
Subject has a strong track record in acquisition management,
with five successful acquisitions in the European market. These acquisitions
have strengthened subject’s position in the high-potential markets of Europe,
and have expanded the global reach of the organisation.
Subject’s manufacturing facilities in India, UK, Ireland, France and US
have the approval of major regulatory bodies, including US FDA and UK's MHRA,
with capabilities for both Finished Dosage Formulations and APIs. The output
includes
·
Steriles (Injectables)
·
Biopharmaceuticals
·
Orals (Tablets and Liquids)
·
Topicals (Creams and Ointments).
Subject is a partner of choice for manufacturing, having entered into
manufacturing alliances with leading pharmaceutical and biotechnology majors,
including
·
Astra Zeneca
·
Lab Aguettant
·
Aventis
·
Amylin
·
Schering-Plough
·
Eisai
·
Cell Therapeutics
·
LSI, UK
·
AFT, New Zealand
·
Ebewe, Austria
A key growth
driver at subject is its state-of-the-art, multi-disciplinary research capability
backed by a team of 500 skilled scientists. Consistent efforts have resulted in
six breakthrough biotechnology products, 750+ patent filings and a pipeline of
promising new molecules.
Subject’s strategies are aligned towards being a significant player in
the emerging global biopharmaceuticals market. In order to achieve this goal,
the company has set up the subject Biotech Park, India’s largest
biopharmaceuticals complex, with six dedicated plants built to international
standards.
Press Release
Wockhardt’s Q3 Results 2008
Sales
grow by 25.1% to Rs. 9240 millions Operating Profit up by 16.5%
Pharmaceutical
and biotechnology major Wockhardt Limited today announced a 25.1% increase in
consolidated sales revenues to stand at Rs. 9235 millions for the third quarter
ended September 30, 2008 over the corresponding quarter of 2007. Operating
profit grew by 16.5% to Rs. 2108 millions. Net profit stood at Rs. 622
millions.
“Our US and European businesses have shown tremendous growth potential
in the world’s two most mature markets and currently our international
operations contributes three quarters to our overall business growing at 31%,”
said Wockhardt Chairman Habil Khorakiwala. “This exemplifies our ability to
create significant value from not only our acquisitions but also in our organic
growth, which is growing at 16%,” he added.
USA Business:
Wockhardt’s US subsidiary, Wockhardt USA Inc. grew by 123% and the
overall US operations including Morton Grove Pharmaceuticals grew by 222% in
Q3-2008. This phenomenal growth is now contributing to 20% of consolidated
sales. Wockhardt has 11 approvals from the US FDA for its sterile products
including Cephalosporins and is currently marketing 63 products in the US
market. Recently, the Morton Grove Pharmaceutical production plant in Chicago
underwent an inspection and was found fully compliant by the US FDA
authorities.
India Business:
Wockhardt’s India business grew by 11% in Q3-2008. As per ORG-IMS,
Wockhardt’s cumulative rank (Jan-Aug) improved from the 19th position in 2007
to the 15th position in 2008 and the cumulative market share (Jan-Aug) improved
from 1.83% in 2007 to 2.13% in 2008. Wockhardt’s in-licensing strategy of
getting niche global products to India is seen as a key growth driver with a number
of products like Sammy, B-Lift, Novaphane and Mobiwok already launched. Overall
10 brands feature in the list of ‘Top 300’ brands of the industry with Dexolac
and Spasmo-Proxyvon still maintaining its position in the ‘Top 100’.
Europe Business:
Wockhardt’s European business grew by 11% in Q3 of 2008 and continues to
be Wockhardt’s single largest market accounting for 52% of consolidated sales.
In Europe, Wockhardt UK is a key growth driver growing by 20% against the
industry growth of 6%.
Wockhardt Limited is a global pharmaceutical and biotechnology major
with an innovative research and development programme. Wockhardt has global
footprints including UK, France, Germany, Ireland and USA. Wockhardt employs a
multi-cultural and multi-ethnic workforce of 7500 people worldwide belonging to
14 different nationalities.
Wockhardt gets US FDA nod to market Ceftazidime injections
To
launch generic version of broad spectrum antibiotic Fortaz in the US
Pharmaceutical
and biotechnology major Wockhardt will be launching Ceftazidime injection in
the United States. Wockhardt has received approval from the United States Food
& Drug Administration (US FDA) for marketing the injections containing 1
Gm/Vial Ceftazidime, which is used for treating various kinds of infections.
Ceftazidime is the generic name for the brand Fortaz, sold in the US by Glaxo
Smithkline.
“Wockhardt is one of the only three companies to have received this
approval” said Wockhardt Chairman Habil Khorakiwala. “This product required
significant R and D activity in both API and injections and is a reflection of
the multi-faceted capabilities of Wockhardt to meet the challenges of the US
markets.”
Wockhardt’s Ceftazidime injections will be launched in the US very
shortly. According to IMS, the total market for Ceftazidime injections in the
US is $42 million, of which the 1 gm market has sales worth US$12.6 million.
Ceftazidime is used in treating several kinds of infections and is one
of the most potent, powerful and safe antibiotics.
The Ceftazidime pentahydrate API is manufactured in the FDA approved API
facility at Ankleshwar, Gujarat and the injections are manufactured at the US
FDA certified formulation plant at Waluj, Maharashtra. The API and the product
were developed in-house.
Wockhardt has 11 approvals from the US FDA for its sterile products
including Cephalosporins. In the prescription generic pharmaceutical market,
Wockhardt has been consistently growing market shares for all its products.
Wockhardt today markets over fifty five products in the US.
Wockhardt Limited is a global pharmaceutical and biotechnology major
with an innovative research and development programme. Wockhardt has global
footprints including UK, France, Germany, Ireland and USA. Wockhardt employs
around 6000 people worldwide belonging to 14 different nationalities.
Wockhardt
takes huge strides towards In-licensing and collaborative agreements
Signs
in-licensing deal with UK based Sinclair Pharma
Pharmaceutical
and biotechnology major Wockhardt Limited has forged an in-licensing agreement
with Sinclair Pharma plc of UK to market a range of dermatology and dental
products in September 2008. Sinclair Pharma plc is an international speciality
pharmaceutical company having subsidiaries in France, Italy, Spain, and
Portugal with operations spanning across 82 countries. As per ORG IMS, the
Indian dermatology market is worth a whopping Rs. 17820 millions.
“As a part of our India business strategy, in-licensing is seen as one
of our key growth drivers. These in-licensing deals will fulfil our aim of
getting niche global products for the benefit of our Indian patients”, said
Wockhardt chairman Habil Khorakiwala. “We bring to India break through products
that have proved their effectiveness in Europe and USA and also strengthen our
existing portfolios”, he further added.
As per the agreement, Wockhardt will leverage its technological
capabilities by manufacturing the formulations in India from bulk imported from
Sinclair Pharma. Wockhardt is also in talks with Sinclair on contract
manufacturing of the signed products for their European markets and to bring in
to India the next phase of dermatology products from the Sinclair stable.
This agreement is a further step towards Wockhardt’s strategy of
consolidating its position in Dermatology and focus in Dentistry. The 10 year
exclusive agreement covers a range of patented and innovative products like;
Papulex – Innovative formulation for acne and is the largest selling
product for acne in France
Atopiclair – non steroidal cream for atopic dermatitis
Aloclair – Patented gel for mouth ulcer
Decapinol range – Patented formulation for the treatment of Gingivitis
and plaque
Wockhardt Limited is a global pharmaceutical and biotechnology major
with an innovative research and development programme. Wockhardt has global
footprints including UK, France, Germany, Ireland and USA. Wockhardt employs
around 6000 people worldwide belonging to 14 different nationalities.
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.49.25 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.62.84 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|