MIRA
INFORM REPORT
|
Report Date : |
28.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
LUPIN LIMITED |
|
|
|
|
Registered Office : |
159, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
01.03.1983 |
|
|
|
|
Com. Reg. No.: |
11-29442 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24100MH1983PLC029442 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04496C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACL1069K |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of Bulk Drugs and
Formulations. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 65000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established company
having satisfactory track. Available
information indicates high financial responsibility of the company. The
company’s financial position is satisfactory. Payments are correct and as per
commitments. The company is doing well. It can be
considered good for any normal business dealings. It can be regarded as a promising business
partner in a medium to long-run. |
LOCATIONS
|
Registered Office/ Corporate Communications : |
159, |
|
Tel. No.: |
91-22-26931001 / 26526391 / 26528311 /
56402222 / 66402323 |
|
Fax No.: |
91-22-26540484 / 26114008 / 56402299 /
26528806 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plant: |
Located at: Ankleshwar, ·
T-142 MIDC Industrial
Estate, Tarapur Industrial Area, Boisar, District Thane, ·
198-202, New Industrial
Area II, Mandideep, District Raisen, Madhya Pradesh – 462 046, ·
211, New Industrial
Area II, Mandideep, District Raisen, Madhya Pradesh – 462 024, ·
124, GIDC Industrial
Estate, Ankleshwar, Gujarat – 393 002, ·
A28/1, MIDC Area,
Chikalthana, ·
B-15 Phase I-A Verna
Industiral Area, Verma Salcette, Goa – 403 722, |
|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-22-66402222 |
|
Fax No.: |
91-22-66402130 |
|
|
|
|
R & D Park : |
Survey No. 46 A/47A, |
|
|
|
|
Overseas Offices : |
Located at |
|
|
|
|
Branches : |
Located at: Investor Services
Cell 159, Tel. No. 91-22-26931001 / 26526391 /
26528311 Fax. No. 91-22-26540484 / 26114008 Survey No. 46/A and 47/A, |
|
|
|
|
Lupin Human Welfare and Research Foundation: |
Lupin Human Welfare and Research Foundation 160 Krishna Nagar, Bharatpur, Rajasthan 321 001, Phone: 91-5644 223023 Fax: +91-5544 224241 Email: lhwrf@lupinworld.com
|
|
|
|
|
Other Offices: |
Human Resources Lupin Limited Phone: 91 22 6640 2323 Fax: +91 22 6640 2051 Email: hr@lupinworld.com Investors
Services Lupin Limited Phone: 91 22 6640 2402 / 2403 Fax: 91 22 2652 8806 Email: shareholderquery@lupinworld.co Global
Pharmaceutical Business Lupin Pharmaceuticals, Inc Phone: +1 410 576 2000 Fax: +1 410 576 2221 Email: usa@lupinworld.com Lupin ( Suite1 VictoriaCourt, Phone: +44 1565 751378, 751376 Fax: +44 1565 751379 Email: europe@lupinworld.com Japan & AAMLA Lupin Limited A/2 Phone: +91 22 66402222 Fax: +91 22 6640 2299 Email: aamla@lupinworld.com CIS Lupin Limited Phone: 91 22 6640 2323 Fax: 91 22 6640 2051 Email: cis@lupinworld.com Lupin Limited C/4 Fax: 91 22 6640 2299 Email: irf@lupinworld.com Lupin Limited B/4 Fax: +91 22 6640 2299 Email: api@lupinworld.com Global TB Lupin Limited B/4 Fax: +91 22 6640 2299 Email: globaltb@lupinworld.com CRAMS Novodigm Limited Block 21, Dabhasa, Padra Taluka, Vadodara 391 440 Fax: +91 2662 306 305 Email: crams@lupinworld.com |
DIRECTORS
|
Name : |
Dr. Desh Bandhu Gupta |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
08.02.1938 |
|
Qualification : |
M.Sc. |
|
Experience : |
37 years |
|
Date of Appointment : |
11.07.1972 |
|
|
|
|
Name : |
Dr. Kamal K. Sharma |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mrs. M. D. Gupta |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
22.09.1943 |
|
Qualification : |
B.A. |
|
Experience : |
31 years |
|
Date of Appointment : |
11.07.1972 |
|
|
|
|
Name : |
Mrs. Vinita Gupta Sharma |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
05.03.1968 |
|
Qualification : |
Pharmacy Graduate, MBA |
|
Date of Appointment : |
17.08.2001 |
|
|
|
|
Name : |
Mr. P. K. Kaul |
|
Designation : |
Director |
|
Date of Birth/Age : |
03.07.1929 |
|
Qualification : |
B.Sc., M.A. (Eco.), MS – Public
Administration. |
|
Date of Appointment : |
15.02.1992 |
|
|
|
|
Name : |
Mr. K. U. Mada |
|
Designation : |
Director |
|
Date of Birth/Age : |
29-12-1933 |
|
Qualification : |
M.A., Ph.D. (Eco.), Financial Management
Certificate from Jamnalal Bajaj Institute of Management Studies. |
|
Date of Appointment : |
27-06-2001 |
|
|
|
|
Name : |
Dr. D. P. Sinha |
|
Designation : |
Director (up to 09.05.2006) |
|
|
|
|
Name : |
Mr. D. K. Contractor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Parameswaran |
|
Designation : |
Director (UTI Nominee) |
|
|
|
|
Name : |
Mr. P. Ojha |
|
Designation : |
Director (IDBI Nominee from 20.09.2001) |
|
|
|
|
Name : |
Mr. Marc Desaedeleer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Kelkar |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Sunil Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. A. Shah |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Edward R Roberts |
|
Designation : |
Director |
|
|
|
|
Name : |
D.K Contractor |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Kiran N. Bade |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Satish Khanna |
|
Designation : |
Group President - API |
|
|
|
|
Name : |
Mr. Dr. Sudershan Arora |
|
Designation : |
President - NCE Research |
|
|
|
|
Name : |
Mr. Indrajit Banerjee |
|
Designation : |
President • Finance & Planning |
|
|
|
|
Name : |
Mr. Shakti Chakraborty |
|
Designation : |
President - |
|
|
|
|
Name : |
Mr. Vinod Dhawan |
|
Designation : |
President - Business Development |
|
|
|
|
Name : |
Mr. Rajan Dutta |
|
Designation : |
President - Human Resources Development |
|
|
|
|
Name : |
Mr. Harish Narula |
|
Designation : |
President - Corporate |
|
|
|
|
Name : |
Mr. Dr. Himadri Sen |
|
Designation : |
President - Pharma Research &
Regulatory Affairs |
|
|
|
|
Name : |
Mr. Nilesh Gupta |
|
Designation : |
Executive Vice President - Advanced Markets |
|
|
|
|
Name : |
Mr. R.V Satam |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
|
|
Designation: |
President - Pharma Research & Development |
|
|
|
|
Name : |
|
|
Designation: |
Executive Vice President - Global Dosage
Form Manufacturing & Quality Assurance |
|
|
|
|
Name : |
|
|
Designation: |
Executive Vice President - Finance |
|
|
|
|
Name : |
|
|
Designation: |
Executive Vice President - Supply
Planning & Strategic Sourcing |
|
|
|
|
Name : |
|
|
Designation: |
Executive Vice President - Business Development |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Category |
No. of Shares |
(%) of
Shares |
|
(As on 31.03.2008) |
|
|
|
Shareholding of Promoter & Promoter Group |
|
|
|
Indian |
|
|
|
Individuals / HUF |
1580284 |
1.93% |
|
Bodies Corporate |
40373154 |
49.20% |
|
Foreign |
|
|
|
NRI / Foreign Individuals |
10320 |
0.01% |
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds / UTI |
8208484 |
10.00% |
|
Financial Institutions / Banks |
103000 |
0.13% |
|
Insurance Companies |
6769605 |
8.25% |
|
Foreign Institutional Investors |
7851450 |
9.57% |
|
Non-Institutions |
|
|
|
Bodies Corporate |
1608655 |
1.96% |
|
Individuals - |
|
|
|
i. Individual shareholders holding nominal share
capital upto Rs. 0.100 Million |
4859390 |
5.92% |
|
ii. Individual shareholders holding nominal share
capital in excess of Rs. 0.100 Million |
3757963 |
4.58% |
|
Any other (specify) |
|
|
|
Foreign Bodies ( |
6609525 |
8.05% |
|
Foreign Bodies (other) |
254751 |
0.31% |
|
Clearing Member |
75155 |
0.09% |
|
Clearing House |
2688 |
0.00 |
|
Trusts |
16471 |
0.02% |
|
Total |
82080895 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Bulk Drugs and
Formulations. |
||||||||
|
|
|
||||||||
|
Products : |
·
Rcinex ·
AKT 4 ·
Rcin ·
Ceff ·
Odoxil ·
Optineuron ·
Lipril ·
Cetil ·
Pyzina ·
Combutol ·
AKT 3 ·
Tonact ·
Ramistar ·
Ramiastar A ·
Doxcefr ·
Valent ·
Cef 4 ·
Ceff ER ·
Novapime ·
L Cin ·
Co-Q-Dent ·
Gatispanm ·
Abel ·
Valent ·
Starcet ·
Tegaspa ·
Cluconorm SR ·
Gluconorm G1 and G2 ·
Gluconorm P15 and P30 ·
Clopitab A ·
Cyclorin ·
Efficin ·
Praxis
|
||||||||
|
|
|
||||||||
|
Imports : |
|
||||||||
|
Countries : |
|
PRODUCTION STATUS
The company’s production status as on 31st
March 2006 was as under:-
|
Classification |
Unit |
Installed Capacity |
Actual Production |
|
Tablets |
No. in Millions |
1570.000 |
1697.600 |
|
Liquids |
Kilo-Litres |
3216.000 |
457.900 |
|
Capsules |
No in Millions |
446.000 |
371.300 |
|
Injections: |
|
|
|
|
- Liquids |
Kilo-Litres |
42.000 |
102.200 |
|
- Vials |
No in Millions |
12.000 |
62.500 |
|
Creams & Powder |
MT |
403.000 |
325.200 |
|
Inhalers |
No. In million |
-- |
1.000 |
|
Bulk drugs & Intermediates |
MT |
3785.700 |
3010.000 |
GENERAL INFORMATION
|
Suppliers : |
|
|
|
|
|
No. of Employees : |
4000 |
|
|
|
|
Bankers : |
·
Central Bank of Shiv Chhaya Co-operative Housing Society
Limited, ·
State Bank of ·
Bank of Foreign Exchange
Bills Department, Nariman Point, Mumbai – 400 021 ·
Citibank N.A. 293, ·
Syndicate Bank,
Mumbai, ·
Punjab National Bank,
Mumbai, ·
Axis Bank Limited,
Mumbai, ·
The Federal Bank
Limited, Mumbai, ·
Dena Bank, Mumbai, ·
ABN AMRO Bank N.V. ·
ICICI Bank Limited. ·
Standard Chartered
Bank ·
The Hongkong and
Shanghai Banking Corporation Limited |
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Memberships : |
Confederation of Indian Industry |
|
|
|
|
Associates: |
·
Badhira Leasing and
Finance Private Limited ·
Bharat Steel
Fabrication and Engineering Works ·
Croptech Chemicals ( ·
D. B. Estate ·
D. B. Promoters ·
Enzal Chemicals ( ·
Frigid Leasing and
Finance Limited ·
Goodyear Investment
Private Limited ·
Khandelwal Estates
Private Limited ·
Lotus Corporation
(taken over by Novamed Pharmaceuticals Private Limited w.e.f. 1st
October, 2003) ·
Lovin Care Products
Private Limited ·
Lupin Human Welfare
and Research Foundation ·
Lupin International
Private Limited ·
Lupin Investment
Private Limited ·
Lupin Marketing
Private Limited ·
Lupin Performance
Chemicals Limited ·
Lupin Real Estates
Limited ·
Lupin Securities
Limited ·
Matashree Gomati Devi
Jana Seva Nidhi ·
Novamed
Pharmaceuticals Private Limited ·
Pipleswar Holdings
Private Limited ·
Polynova Industries
Limited ·
Pranik Landmark
Associates ·
Rahas Investments
Private Limited ·
Samiksh Investment
Private Limited ·
Santosh Leasing
Private Limited ·
Synchem Chemicals (I)
Private Limited ·
Timita Leasing and
Finance Private Limited ·
Varija Leasing and
Finance Private Limited ·
Vishtosh Investments
and Finance Private Limited ·
Visiomed ( ·
Yogini Leasing and
Finance Private Limited ·
Zuari Leathers Private
Limited ·
Zyma Laboratories
Private Limited ·
Alpha Corporation ·
Apposite Trading
Company ·
·
High Tech Commercial ·
Luxury International
Private Limited Wellworth Laboratories |
|
|
|
|
Subsidiaries : |
·
Lupin Chemicals ( ·
Lupin Laboratories ·
Lupin Pragati Limited,
·
Lupin Pharmaceuticals
Inc., ·
Lupin Hong Kong
Limited ·
Lupin Holdings S.A., ·
Lupin ·
Lupin Herbal Limited,
(LHL) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000
millions |
|
1500000 |
Redeemable
Preference Shares |
Rs. 100/- each |
Rs. 150.000
millions |
|
|
Total |
|
Rs. 650.000millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
82080895 |
Equity Shares |
Rs. 10/- each |
Rs. 820.809
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
820.800 |
803.400 |
401.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12349.700 |
8080.700 |
6038.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
13170.500 |
8884.100 |
6439.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5608.800 |
3909.100 |
4286.500 |
|
|
2] Unsecured Loans |
4046.700 |
4736.400 |
4839.500 |
|
|
TOTAL BORROWING |
9655.500 |
8645.500 |
9126.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
956.100 |
|
|
|
|
|
|
|
TOTAL
|
22826.000 |
17529.600 |
16521.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8630.700 |
7138.100 |
6424.000 |
|
|
Capital work-in-progress |
689.500 |
825.500 |
252.100 |
|
|
|
|
|
|
|
|
INVESTMENTS |
2924.900 |
58.600 |
95.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6258.500 |
4020.700 |
3102.900 |
|
|
Sundry Debtors |
6322.600 |
4793.000 |
3483.900 |
|
|
Cash & Bank
Balances |
2150.800 |
3527.800 |
4558.000 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans &
Advances |
2604.600 |
2479.500 |
2328.700 |
|
Total Current Assets |
17336.500 |
14821.000 |
13473.500 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
5672.800 |
4649.600 |
2995.400 |
|
|
Provisions
|
1082.800 |
664.000 |
727.600 |
Total Current Liabilities
|
6755.600 |
5313.600 |
3723.000 |
|
|
Net Current Assets |
10580.900 |
9507.400 |
9750.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
22826.000 |
17529.600 |
16521.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales
Turnover |
26098.600 |
19709.300 |
16610.400
|
|
|
Other
Income |
1974.200 |
1866.500 |
725.100
|
|
|
Total Income |
28072.800 |
21575.800 |
17636.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
5576.400 |
3967.500
|
2302.000
|
|
|
Provision for Taxation |
1142.600 |
946.900
|
474.800
|
|
|
Profit/(Loss) After Tax |
4433.800 |
3020.600
|
1827.200
|
|
|
|
|
|
|
|
|
Export Value |
NA |
NA |
8093.600 |
|
|
|
|
|
|
|
|
Import Value |
NA |
NA |
3465.100 |
|
|
|
|
[425.900
] |
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw
Materials |
12803.900 |
7297.000 |
7868.200
|
|
|
Increase/(Decrease) in Finished Goods |
(1841.700) |
0 |
[300.500
] |
|
|
Purchases of traded goods |
0.000 |
2256.600 |
0.000 |
|
|
Manufacturing and Other Expenses |
1654.600 |
5771.000 |
0.000 |
|
|
Excise
Duty |
862.300 |
0.000 |
645.000
|
|
|
Power
& Fuel Cost |
1092.600 |
0.000 |
732.500
|
|
|
Other
Manufacturing Expenses |
1654.600 |
0.000
|
1005.200
|
|
|
Employee
Cost |
2314.800 |
1875.000 |
1490.900
|
|
|
Selling
and Administration Expenses |
3867.100 |
0.000
|
2345.900
|
|
|
Miscellaneous
Expenses |
837.800 |
0.000
|
539.800
|
|
|
Interest
& Financial Charges |
343.900 |
0.000
|
303.000
|
|
|
Depreciation
|
561.100 |
834.600 |
403.500
|
|
Total Expenditure |
22496.400 |
17608.300 |
15334.000 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Sales Turnover |
|
7124.200 |
7714.700 |
|
Other Income |
|
188.100 |
9.700 |
|
Total Income |
|
7312.300 |
7724.400 |
|
Total Expenditure |
|
5747.500 |
5962.100 |
|
Operating Profit |
|
1564.800 |
1762.300 |
|
Interest |
|
86.500 |
107.900 |
|
Gross Profit |
|
1478.300 |
1654.400 |
|
Depreciation |
|
153.600 |
158.000 |
|
Tax |
|
239.500 |
177.000 |
|
Reported PAT |
|
1085.200 |
1319.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
Debt Equity ratio |
0.83 |
1.16 |
1.18 |
|
Long Term Debt Equity Ratio |
0.42 |
0.71 |
0.63 |
|
Current ratio |
1.53 |
1.68 |
1.38 |
|
Turnover Ratio |
|
|
|
|
Fixed Assets |
2.48 |
2.27 |
2.14 |
|
Inventory |
5.08 |
5.70 |
5.95 |
|
Debtors |
4.70 |
4.90 |
5.69 |
|
Interest cover Ratio |
13.99 |
8.65 |
8.60 |
|
Operating profit margin (%) |
20.59 |
18.10 |
18.11 |
|
Profit Before Interest and Tax Margin (%) |
18.44 |
15.81 |
15.68 |
|
Cash profit Margin (%) |
15.68 |
12.82 |
13.43 |
|
Adjusted Net Profit margin (%) |
13.53 |
10.53 |
11.00 |
|
Return on Capital Employed (%) |
23.85 |
19.39 |
20.86 |
|
Return on Net worth (%) |
32.02 |
27.89 |
31.93 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company was incorporated on 11th
July 1972 at Mumbai in
Lupin, came into existence due to amalgamation of Subject
laboratories with Subject Chemicals. The scheme of amalgamation has been
approved by the high court on 13 June 2001 and the same is effective from April
2000.
Subject Chemicals was incorporated in the year 1983, promoted by Laboratories,
with an aim to manufacture rifampicin, an anti-TB drug at Tarapur. The company
consolidated its position in fermentation to produce rifampicin from the basic
stage. The highly complicated procedure of stabilising the bacteria, which
normally takes three to four years under local conditions was achieved in around
one year with the help of a technological tie-up from
Subject Laboratories was bought as defunct firm in 1968. It had manufacturing
facilities in
The company also expects strong gains from its entry into the
Subject commissioned its state of art USFDA approval oral Cephalosporin dosage
manufacturing plant, for meeting the requirements of the generics markets with
some of the Cephalosporins going off patent in the coming years. At present the
facility is catering to the requirements of exhibit batches needed by the R and
D for the purpose of ANDA filings planned during the year.
During February 2002, Rabeprazole an anti-peptic in the therapeutic segment was
introduced by Subject under the brand name of Rablet. The company spent most of
the capital expenditure for expansion of its R and D facilities, Expansion and
Modernization of the anit-TB dosage facility, Commisioning of a new lisinopril
facility. The company is setting up a USFDA approval plant at Tarapur,
During 2003-04 the company commissioned a new facility at Verna,
The company's subject division is offering solutions in the respiratory segment
with a range covering anti-TB, anti-Asthma (Inhalation segment),
anti-Infectives, anti-Allergics and supportive therapy products. During 2004-05
the company has entered into the anti-Asthma inhalation product range.
The Company has launched its Herbal division during 2004 and the company has
promotes a range of efficacious herbal products in therapeutic areas including
Diabetes, common Pediatric problems, GI disorders, pain management and
Gynaecological problems.
In 2006, the company has increased its installed capacity of Bulk drugs and
Intermediates and Tablets by 221.80 MT and 40 Million Nos respectively and with
this expansion the total installed capacity of Bulk drugs and Intermediates has
increased to 3785.70 MT and 1570 Million Nos respectively. The company has
issue of bonus shares in the ratio of one for one. The company has issued FCCB
aggregating US $100 million. These Bonds are listed on the Singapore Stock
Exchange.
Business:
Subject is engaged in the business as
Manufacturers of Bulk Drugs and Formulations.
Highlights of the operations, during the
year ended March 31, 2007, are given below:-
1) Finished Dosages
a.
The IRF
yet again outperformed the Indian finished dosages market by attaining a growth
of 30%. The Indian Pharmaceutical market grew by 14% as per ORG MAR MAT 07. The
Company enjoys a market share of 2.4% and its ranking has improved from 9th to
7th in the Indian Pharmaceutical Market. It also has the distinction of
recording the highest value growth among the top 10 Indian pharma
companies.
While maintaining its undisputed leadership in the Anti-TB segment with a
market share of 46%, the Company has also sustained the number two position in
Anti-Asthma segment. In Cardiovasculars, the Company recorded the fastest
growth rate (41%) among the top 10 companies and exceeded the market growth
rate by over three times. The Diabetes business, which was launched three years
ago, registered a growth of 54% during the year as against industry growth of
17%. In the Anti-infective segment, the Company ranks amongst the top ten
players.
It is gratifying that through its Lupinova Division engaged in providing
essential medicines to the rural masses at an affordable price, the Company's
endeavour is to discharge its social obligations, apart from attaining deeper
and wider market reach.
Launch of innovative combinations and introducing in-licensed products,
attainment of critical mass through depth and width of market penetration,
focus on rural marketing, new introductions, rising market share in chronic
segments, coupled with higher volumes of existing products and motivated and
passionate sales team have been some of the critical growth drivers.
b. Advanced Markets
The
Company operates in the advanced market of the
The noteworthy feature has been that the Company has attained significant
market share and rankings for its product portfolio. The launch of Lisinopril
tablets last year was listed by IMS Health as one of the top 10 launches in the
On the branded side, Suprax., a product promoted by internalised sales team,
performed very well during the year. Prescriptions increased from 5,000 per
week last year, to 8,500 in the high season. A novel formulation of Cefixime,
which is a line extension of Suprax., would further strengthen the Company's
position in the Cephalosporins oral suspension paediatric market.
The Company's strength in API has been effectively leveraged to attain critical
position in formulation space. This in turn injects greater sustainability to
the business model in the advanced markets.
A significant feature of the play in this market has been the transformation
and maturing of LPI into a Direct To Market' (DTM) entity, which has been
recognised by customers and channels of trade. The company selectively follows
marketing alliance route.
For the European markets, the Company has accelerated its filings to create a
pipeline of lucrative products. The Company was the first to receive marketing
approval for generic Cefpodoxime Proxetil 100mg tablets in
c. Rest of the world
The
AAMLA division, which covers the regions of Asia, Africa, Middle East, Latin
America and
The CIS business recorded steady progress and offers good growth prospects. The
Company has established its reputation and eminence in Anti-TB segment and is
consolidating its presence in herbal segment and Anti-Infectives, including
Cephalosporins. CIS shows strong brand preference. Through its motivated,
trained and focused sales team of over 85 representatives, the Company is set
to further strengthen its branded business for long-term gains.
The Company is one of the few that were pre-qualified as a preferred supplier
of Anti-TB products to the Global Drug Facility (GDF). The Anti-TB formulations
manufactured by the Company are supplied through GDF to more than 50 countries,
which are identified as High TB Burden Countries by the WHO.
2) API and Intermediates
The
Company adopts the strategy of becoming global leader in chosen products, which
insulates the API business from being thinly spread. The leadership stems from
its capabilities in the areas of knowledge of complex chemistry, project
implementation, research and regulatory understanding.
This business continued to perform exceedingly well, taking support of the
solid foundation in terms of its skills, scales and reach. The performance was
mainly on account of larger volumes and cost efficiency. The Company has
further strengthened its leadership position in segments, such as Anti-TB,
Cephalosporins and Prils.
The Company has established business blocks, tailor made for some of the large
multi-national companies, which would provide an opportunity of inter-linking
the Company's competencies with theirs. The Company is also exploring the
possibilities of entering new therapies and of inorganic growth.
Overall, this makes the Company the most profitable API business in the
country.
3) Research and Development
The
progress in the field of research has been steady and remarkable. The
In a landmark development, the Company entered into an agreement with
Laboratories Servier of France for the sale of certain patent applications and
related Intellectual Property (IP) for Perindopril, for a consideration of Euro
20 Mn. This agreement testifies and demonstrates the Company's research and IP
capabilities.
The Company has made significant strides in the NCE space. It has received
approvals from Drugs Controller General of India (DCGI) for conducting
Phase-III clinical trials for its Anti-Migraine compound LLL 2011 (Amigra) and
Phase-II clinical trials for its Psoriasis compound LL-4218 (Desoside-P). Two
other molecules for Anti-TB and Psoriasis (herbal compound) are in various
phases of clinical trials.
While R and D provided the requisite lever to maintain the pace of regulatory
filings, its focus during the year was oriented towards increasing the
complexity of the pipeline through controlled release and differentiated
products that would offer niche opportunities. In line with this orientation,
the Company has established an innovation Celt for creating higher innovations.
Rural Development Programme
The
Company is committed to fulfilling its social responsibilities through its NGO
arm, namely, Subject Human Welfare and Research Foundation (LHWRF). It has set
in motion a silent revolution in the upliftment of rural underprivileged and
vulnerable sections of the society including women and children. It operates in
the states of Rajasthan,
LHWRF was conferred the prestigious FICCI Ladies Organisation Award for its
outstanding contribution in women's welfare. LHWRF was also conferred the
'Stree Shakti' Award, instituted by the Government of Rajasthan.
Subsidiary Companies
The
Company has the following subsidiaries –
a) Lupin Pharmaceuticals Inc. (LPI), U.S.A. LPI is engaged in trading,
marketing and development activities in the
b) Lupin Chernicats (
LCTL ceased to be a subsidiary of the Company with effect from June 1,
2006.
c) Lupin Hong Kong Limited (LHKL), Hong Kong
LHKL was incorporated to co-ordinate and support the Company's API business in
d) Lupin
LAPL, a wholly owned subsidiary of the Company, was constituted primarily to
effect and hold product registrations in
e) Max
Pharma Pty Limited (MPPL),
MPPL
is a joint venture subsidiary company and its commercial operations are yet to
commence. MPPL would target niche products in hospitals and non-prescription
category in the territories of
f) Lupin Holdings B.V. (LHBV),
LHBV
is a wholly owned subsidiary of the Company, which would be used as a special
purpose vehicle for overseas investments.
g) Lupin Herbal Limited (LHL),
HL
provides marketing and promotional services to the Company's herbal division.
It recorded a profit of Rs. 49,327/-, during the year.
h) Lupin Pharmacare Limited (LPL),
LPL
plans to set up a plant for the manufacture of finished dosages at a suitable
Special Economic Zone, details of which are being worked out.
A statement containing particulars pursuant to the provisions of Section
212(1)(e) of the Companies Act, 1956 in respect of the above subsidiaries forms
part of this Annual Report. In compliance with Clause 32 of the Listing
Agreement, audited consolidated financial statements also form part of this
Annual Report.
MANAGEMENT DISCUSSION AND
ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
The Global Pharmaceutical Market*
According
to IMS Health, the world pharmaceutical market grew from US$ 334 Bn. in 1999,
to US$ 643 Bn. in 2006.
The economic, structural, political and health dynamics that impact growth, are
rebalancing the worldwide pharmaceutical market, driving global growth to 5-6%
for 2007 and it is expected to see global pharmaceutical sales to reach US$
665-685 Bn. in 2007. The expanding availability of healthcare and an increasing
need for treatment associated with chronic disease, more typically found in
developed countries, is driving higher growth rates in the developing
countries. It is estimated that emerging markets, currently representing around
17% of the global market, are expected to contribute 30% of growth next
year.
The top five markets of Europe (
Recognition and
awards
·
FICCI Award by the
Honourable Prime Minister of
·
ICMA Award - In 1993
·
Jamnalal Bajaj Award –
In 1995
·
Bhamashah Award- In 1995
·
Merit Award – In 1998
·
State Awards under Child
Welfare Program – In 2000, 2002, 2003.
The company has
joint venture with Lupin Chemicals (
The company is in trade terms with:
·
A. S. Enterprises
·
Aakar Arts
·
Adit Containers Private
Limited
·
Adit Industries
·
Adit Phama
·
Agarwal Paper Products
·
Amar Equipments Private
Limited
·
AMI Polymers Private
Limited
·
Amijal Chemicals
·
Bhavna Chemicals
·
·
·
Clean Air Engineers
·
Diva Envitech
·
Dorik Plastochem Limited
·
·
Enar Echemie Private
Limited
·
Nikita Chemicals
·
Nishflex Packaging
Private Limited
·
Aspage Integrated
Systems Private Limited
·
Novex PolyFilms Private
Limited
·
Multi-tech Engineers
Private Limited
·
Jain Carton Industries
Private Limited
·
Fluid Pack Machinery
Company Private Limited
·
Yoyo Chemicals
·
Amsal Chem Private
Limited
·
Kisalaya Herbals Limited
·
Pharmaceuticals Coatings
·
Western Drugs Private
Limited
·
Award Packaging
·
Aadarsh Offset Private
Limited
·
Hymech Engineers Private
Limited
·
Printania Offset Private
Limited
·
Ramesh Industries
·
Harelm Polycontainers
Private Limited
·
Gujarat Chemicals
Private Limited
·
Goyal MG Gases Limited
·
Niket Udyog Limited
·
S. D. Limited
·
Sales Worth India
Private Limited
·
Jain Carton Private
Limited
·
Kailash Corrugators
Private Limited
·
Madhav Ratna Packaging
Industries
·
Sanjivani Parenterals
Limited
·
Vivid Systems
·
Webtech Systems
·
Zeolites and Allied
Products
·
Universal Insulation
Company
·
Vijay Pumps
·
Vikas Pharmaceutical
Laboratories
·
Techno Cell
·
Truimph Pack Private
Limited
·
System and Components
·
Taran Industries
·
Tatva Chintan Pharma
Chem Private Limited
·
Subhadra Packaging
·
Rotex Manufacurers
·
RDG Engineering Works
·
Regal Chemical and
Mineral
·
Mayank Engineering Works
·
Gimar Corrugators
Private Limited
·
Glamour Packaging
·
Godavri Plsto Containers
Private Limited
·
Goel Process Systems
Private Limited
·
J U Engineering
Fixed Assets
·
·
· Buildings,
· Plant and Machinery,
· Furniture, Fixtures
· Office Equipments,
· Vehicles,
· Air Conditioners
· Technical Know-How.
UNAUDITED
FINANCIALS RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2008
(Rs.
In Millions)
|
Particulars |
Quarter Ended
30/09/2008 (Unaudited) |
Half
Year Ended 30/09/2008 (Unaudited) |
|
1) a. Sales (Gross) |
7656.400 |
14935.800 |
|
Less: Excise Duty |
129.600 |
284.800 |
|
Sales
(Net) |
7526.800 |
14651.000 |
|
b. Other Operating Income |
187.900 |
353.200 |
|
2) Total |
7714.700 |
1504.200 |
|
3) Expenditure |
|
|
|
Decrease/(Increase) in stock in trade and
work-in-progress |
[664.400] |
[767.200] |
|
Consumption of raw and packing materials |
2670.100 |
4833.300 |
|
Purchase of traded goods goods |
827.300 |
1767.400 |
|
Employees cost (Refer note no.7 below) |
1056.300 |
1732.900 |
|
Depreciation and amortisation |
158.000 |
311.600 |
|
Manufacturing and other expenses |
2072.800 |
4143.200 |
|
Total |
6120.100 |
12021.200 |
|
4 ) Profit from Operations before Other Income,
Interest and Exceptional Items |
1594.600 |
2983.000 |
|
5 ) Other Income |
9.700 |
32.500 |
|
6) Profit before Interest and
Exceptional Items |
1604.300 |
3015.500 |
|
7) Interest and finance charges |
107.900 |
194.400 |
|
8) Profit after Interest but before
Exceptional Items |
1496.400 |
2821.100 |
|
9) Exceptional items |
-- |
-- |
|
10) Profit from Ordinary Activities
before tax |
1496.400 |
2821.100 |
|
11) Tax Expense1 |
|
|
|
Current and deferred tax |
124.200 |
328.200 |
|
Fringe benefit tax |
52.800 |
88.300 |
|
12) Net Profit from Ordinary Activities
after tax |
1319.400 |
2404.600 |
|
13) Extraordinary items (net of tax
expense) |
-- |
-- |
|
14) Net profit |
1319.400 |
2404.600 |
|
15) Paid up equity share capital (Face
value Rs.10/- each) |
822.900 |
822.900 |
|
16) Reserves excluding Revaluation
Reserves |
|
|
|
17) Earnings Per Share [EPS] (Not
Annualised) Rs. |
|
|
|
Basic |
16.06 |
29.28 |
|
Diluted |
15.79 |
28.78 |
|
18) Public Shareholding |
|
|
|
Number of share |
40356748 |
40356748 |
|
Percentage of shareholding |
49.04 |
49.04 |
NOTES:
1. The above financial results were
reviewed by the Audit Committee and thereafter approved and taken on record by the
Board of Directors at their meeting held on October 24, 2008. The statutory
auditors of the Company have carried out limited review of the above results
pursuant to Clause 41 of the Listing Agreement.
2. The Company is exclusively in the Pharmaceutical business and has
only one reportable primary segment.
3. The aggregate amount of revenue expenditure incurred on Research and
Development and shown in the respective heads of account is as under:
(Rs. In Millions)
|
|
Quarter |
Half Year |
|
Rs. In Millions |
514.300 |
923.400 |
4. During the quarter, 125,128 (year to
date 131,930) equity shares of Rs.10/- each, fully paid-up were allotted on exercise
of the vested stock options in accordance with the terms of exercise under the
Lupin Employees Stock Option Plans, thereby resulting into an increase in the
paid-up share capital by Rs.1.200 Millions (year to date Rs. 1.300 Millions)
and securities premium by Rs. 37.700 Millions (year to date Rs. 40.100
Millions).
5. During the quarter, in accordance with
the terms of issue, Foreign Currency Convertible Bonds aggregating US$ 1
million (year to date US$ 1 million) were converted into 81,581 (year to date
81,581) equity shares of Rs.10/- each, fully paid-up, at a predetermined price
of Rs. 567.04 per share, thereby resulting into an increase in the paid-up
share capital by Rs. 80.000 Millions (year to date Rs.0.800 Million) and
securities premium by Rs. 45.400 Millions (year to date Rs. 45.400 Millions).
6. The Company during the quarter through
its wholly owned subsidiary Lupin Holdings B.V.,
7. The Company during the quarter recognised an amount aggregating Rs.
297.400 Millions towards the termination benefits payable to the permanent
workers under the Voluntary Retirement Scheme (VRS) and discounted value of the
pensions payable under the said scheme consequent to implementation of the VRS
scheme on restructuring of operations of its manufacturing plant located at
Aurangabad.
8. There was no unresolved investor complaint pending as on July 01,
2008. The Company received 17 complaints during the quarter which were
resolved. There was no unresolved complaint pending as on September 30, 2008.
9. Figures for the previous periods have been regrouped, wherever
necessary, to correspond with the figures of the current period.
PRESS RELEASE:
Lupin
Q2 FY 08-09 – Strong Performance & Strategic Growth
Oct
24, 2008,
Indian Pharma Major, Lupin Limited, today reported revenues
of Rs. 9221 mn for the quarter ended September 2008, a rise of 36.5% from
revenues of Rs. 6756 mn in the corresponding period last year. International
market revenues at Rs. 5449 mn, recorded a rise of 65%. Of these, Formulation
Business in Advanced Markets constituted 70% at Rs. 3820 mn. Formulation
revenues from domestic market at recorded an increase of 24% to Rs. 3033 mn.
Earnings before Interest, Tax, Depreciation and Amortization
(EBITDA) (adjusted for Employee benefits payable under VRS Rs. 297 mn) were Rs.
2099 mn (Rs.1314 mn) a rise of 60%. After Interest and Finance charges of Rs.
127 mn (Rs. 80 mn) and Depreciation of Rs. 201 mn (Rs.140 mn), Profit before
Tax grew by 35% to Rs. 1474 mn (Rs. 1094 mn). Provision for taxation including
Fringe Benefit Tax was Rs. 312 mn (Rs. 338 mn)
Net profit for the quarter increased by 53% to Rs.1156 mn
(Rs.756 mn). Net Profit for the quarter (adjusted for Employee benefits payable
under VRS) works out to an increase of 88% at Rs. 1421 mn.
Lupin
in Equity Partnership with
Sep
18, 2008,
Lupin Limited announced today that it has completed the
acquisition of a majority stake in Pharma Dynamics (PD) in
Mr. Paul Anley, remains with a significant equity holding
and will continue as the CEO of the organization. The South African market is
estimated at USD 2.5 Billion. Generics currently are a third of the market and
growing rapidly.
Commenting on the development, Dr. Kamal Sharma, Managing
Director, Lupin Limited said, “We are extremely excited with this entry into
this significant geography and we are pleased that Mr. Paul Anley will continue
to lead the company. With the synergies of the two companies, we expect to be
in the top league in the South African market very soon.”
Pharma Dynamics MD, Paul Anley said that the partnership
will be of considerable benefit to PD’s position in the generics industry
locally. “The equity acquisition by Lupin gives us increased access to
international research and development which will further strengthen our local
position”, he said. Paul Anley added, “We look forward to leveraging and
rapidly expanding our market share in the Southern African markets.”
In the current year, PD will launch at least 12 new
products, which is one a month, much higher than industry standards of about
four new products per year. The pipeline of new products will drive growth and
PD has the most extensive pipeline of new products in the country due to a
network of strong alliances with international manufacturers. The equity
participation by Lupin will strengthen its position.
The backward integration capabilities of Lupin will assist
with patent issues, regular and reliable supplies and overall process control.
The dedicated Global Business Development department will ensure continual
exposure to international companies and product opportunities.
Lupin is amongst the fastest growing pharmaceutical company
in
About
Lupin
Headquartered in Mumbai, India, Lupin Limited is an
innovation led transnational pharmaceutical company producing a wide range of
quality, affordable generic and branded formulations and APIs for the developed
and developing markets of the world. The Company has secured global leadership
position in Anti-TB and Cephalosporins and has a significant presence in the
areas of Cardiovascular (prils and statins), Diabetology, Asthma and NSAIDs.
The Company’s R&D endeavors have resulted in significant progress in its
NCE program. The Company’s foray into Advanced Drug Delivery Systems has
resulted in the development of platform technologies that are being used to
develop value-added generic pharmaceuticals.
Currently positioned amongst the top five pharmaceutical
companies of
For the financial year ended March 2008, the Lupin's
Revenues and Profit after Tax were Rs.27, 730 million (US$ 694 million) and
Rs.4,083 million (US$ 102 million) respectively.
About
Pharma Dynamics
Pharma Dynamics has consistently been rated as the fastest
growing generic company in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.49.84 |
|
|
1 |
Rs.76.81 |
|
Euro |
1 |
Rs.64.38 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
75 |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|