MIRA
INFORM REPORT
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Report Date : |
16.12.2011 |
IDENTIFICATION DETAILS
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Name : |
PIRAMAL HEALTHCARE LIMITED (w.e.f. 24.06.2008) NICHOLAS PIRAMAL CONSUMER PRODUCTS PRIVATE LIMITED AMALGAMATED WITH
PIRAMAL HEALTHCARE LIMITED |
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Formerly Known
As : |
NICHOLAS PIRAMAL
INDIA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
26.04.1947 |
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Com. Reg. No.: |
11-005719 |
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Capital Investment
/ Paid-up Capital : |
Rs.335.800 Millions |
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CIN No.: [Company Identification
No.] |
L24110MH1947PLC005719 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMN07675D |
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PAN No.: [Permanent Account No.] |
AAACN4538P |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of
tablets, capsules, liquids, powders, creams and ointments, granules, bulk drugs
and intermediates, vitamin A in various forms and combinations, soda line and
borosilicate and also glass manufacturers. |
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No. of Employees
: |
3238 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 467900000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and a reputed pharmaceutical company having good track. Directors
are reported to be experienced and respectable industrialists. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
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Name : |
Mr. Navalkar |
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Designation : |
Vice President - Finance |
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Date : |
15.12.2011 |
LOCATIONS
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Registered
Office : |
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Email : |
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Website : |
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Head Office : |
100, Centrepoint,
Dr. Ambedkar Road, Parel, Mumbai – 400 012, Maharashtra, India |
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Tel. No.: |
91-22-66636666/24134653/24102082 |
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Fax No.: |
91-22-24163787/24172861/24163787/24144687/24902363 |
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E-Mail : |
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Website : |
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Administrative
Office : |
Morarjee Mills
Compound, Administrative Building, Dr. Ambedkar Road, Parel, Mumbai - 400
012, Maharashtra, India |
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Tel. No.: |
91-22-66636666 |
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Fax No.: |
91-22-66636416 |
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E-Mail : |
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Website : |
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Plant
Locations : |
India: ·
Plot No.K-1,
Additional M.I.D.C, Mahad, Dist. Raigad, 402 302, Maharashtra. ·
C-301/1
T.T.C. Industrial Area, Pawne, Navi Mumbai, 400 705 Maharashtra. ·
Plot
No. 67-70, Sector II, Pithampur, Dist Dhar, 454 775, M.P. ·
Digwal
Village, Medak District, Andhra Pradesh 502 321. ·
Ennore
Express Highway, Enravur Village, Chennai 600 057, Tamil Nadu. ·
Plot
No.19, Pharmez, Sarkhej Bavla, Sanand, NH 8A, Village Matoda, Taluka Sanand,
Ahmedabad - 382 213 ·
Shirish
Research Campus, Plot No – 18, PHARMEZ, Special Economic Zone, Taluka –
Sanand, Ahmedabad. Overseas: Piramal Healthcare UK
Limited ·
Morpeth,
Northumberland, UK ·
Grangemouth,
Stirlingshire, UK Piramal Healthcare (Canada) Limited ·
Aurora,
Ontario, Canada ·
475, Boul,
Armand-Frappier, Laval, Quebec, H7V 4B3, Canada ·
Piramal Critical Care Inc. ·
Bethlehem,
PA 18017, 3950 Schelden Circle, Pennsylvania State, USA |
DIRECTORS
As on 31.03.2011
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Name : |
Mr. Ajay G.
Piramal |
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Designation : |
Chairman |
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Name : |
Mr. Keki Dadiseth |
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Designation : |
Director |
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Name : |
Mr. Y. H. Malegam |
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Designation : |
Director |
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Name : |
Dr. Swati A.
Piramal |
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Designation : |
Director |
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Name : |
Ms. Nandini Piramal |
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Designation : |
Executive Director |
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Name : |
Mr. S. Ramadorai |
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Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Director |
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Name : |
Mr. Deepak Satwalekar |
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Designation : |
Director |
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Name : |
Mr. N. Vaghul |
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Designation : |
Director |
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Name : |
Mr. N Santhanam |
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Designation : |
Executive
Director and Chief Operating Officer |
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Name : |
Mr. Amit Chandra |
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Designation : |
Director (w.e.f.
20.06.2011) |
MANAGEMENT COMMITTEE
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Name : |
Mr. Ajay G. Piramal |
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Designation : |
Chairman |
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Name : |
Mr. Gerhard Klement |
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Designation : |
Director - Pharma Solutions
Piramal Healthcare |
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Name : |
Mr. Rajesh Laddha |
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Designation : |
Chief Financial Officer |
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Name : |
Dr.
(Mrs.) Swati Piramal |
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Designation : |
Director - Strategic Alliances
and Communications |
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Name : |
Ms. Nandini Piramal |
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Designation : |
Executive Director, Piramal
Healthcare Limited |
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Name : |
Mr. N. Santhanam |
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Designation : |
Executive Director and Chief
Operating Officer |
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Name : |
Dr. Sangram Tambe |
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Designation : |
Director, Group HR |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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100189 |
0.06 |
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86423884 |
51.69 |
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2638027 |
1.58 |
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2638027 |
1.58 |
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Sub
Total |
89162100 |
53.32 |
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Total
Shareholding of Promoter and Promoter Group (A) |
89162100 |
53.32 |
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(B) Public Shareholding |
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1536900 |
0.92 |
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126234 |
0.08 |
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8660617 |
5.18 |
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33493013 |
20.03 |
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Sub
Total |
43816764 |
26.20 |
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4330367 |
2.59 |
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21347595 |
12.77 |
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1533009 |
0.92 |
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7020680 |
4.20 |
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673062 |
0.40 |
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2084 |
-- |
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117482 |
0.07 |
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3263 |
-- |
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Foreign
Corporate Bodies |
4176468 |
2.50 |
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Overseas
Corporate Bodies |
2048321 |
1.22 |
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Sub Total |
34231651 |
20.47 |
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Total Public Shareholding (B) |
78048415 |
46.68 |
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Total (A)+(B) |
167210516 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
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(1) Promoter
and Promoter Group |
-- |
-- |
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(2) Public |
-- |
-- |
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Sub Total |
-- |
-- |
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Total (A)+(B)+(C) |
167210515 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
ESOP / ESOSBUSINESS DETAILS
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Line of Business : |
Manufacturers of
tablets, capsules, liquids, powders, creams and ointments, granules, bulk drugs
and intermediates, vitamin A in various forms and combinations, soda line and
borosilicate and also glass manufacturers. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Traded |
Kgs |
-- |
-- |
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Creams and powder |
Ltrs |
-- |
-- |
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Vials |
Mios |
-- |
-- |
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Tablets and capsules |
Ltrs |
-- |
-- |
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Liquids, drops and solutions |
KLs |
-- |
-- |
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Manufactured |
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Tablets |
Mios |
7975.0 |
6373.5 |
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Capsules |
Mios |
270.0 |
180.7 |
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Liquids |
KLs |
9801.4 |
7340.1 |
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Powders, creams and ointments |
MTs |
-- |
32.9 |
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Bulk drug and intermediates |
MTs |
2090.3 |
1430.7 |
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Vitamin A in various forms and combinations |
mmu |
276.0 |
136.8 |
Notes:
1.
Includes products processed by third parties.
2. Includes
production for captive consumption of Bulk Drugs 98328 kgs (PY 91850 kgs) and
Vitamins 110.27 mmu (PY 138.33 mmu)
3.
Stocks are net of breakages and unsaleable stock.
4. Opening
stocks, production, purchases and closing stocks are net of physician samples.
5.
Licensed Capacity is not indicated as Industrial Licensing for all Bulk Drugs,
Intermediates and their Formulations stands abolished in terms of Press Note
No.4 (1994 series) dated 25th October, 1994 issued by the Department of
Industrial Development, Ministry of Industry, Government of India.
6.
Excludes free samples issued.
7.
Variation in quantity/value is on account of change in product mix.
8.
In terms of Press Note No. 4 (1994 series) dated October 25, 1994 issued by the
Department of Industrial Development, Ministry of Industry, Government of
India, and Notification No. S.O 137 (E) dated March 1, 1999 issued by the
Department of Industrial Policy and Promotion, Ministry of Industry, Government
of India, industrial licensing has been abolished in respect of Bulk Drugs and
Formulations.
9.
The Pharmaceuticals business comprises of Manufacturing and trading of bulk
drugs and formulations.
10.
Installed capacities of the formulation factories of the Company (except where
continuous processes are involved) are on a triple shift basis are certified by
the Management and have not been verified by the Auditors, this being a
technical matter.
GENERAL INFORMATION
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No. of Employees : |
3238 (Approximately) |
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Bankers : |
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Facilities : |
Notes on Secured
Loans: 1. The Non-Convertible Debentures are secured on the movable
properties of the Company (excluding working capital goods) and on the
immovable properties of the Company situated at Gujarat, Mahad, Pithampur,
Digwal, Bangalore and Baddi (for previous year). 2. Cash Credit facilities including Packing Credit in Foreign Currency
(PCFC) are secured by hypothecation of stocks and book debts. 3. Satisfaction of charges in respect of certain old loans are still
awaited. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Solicitors: |
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Name : |
Crawaford Bayely and Company |
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Controlling Companies: |
·
PHL Holdings Private Limited* • (upto December 7,
2010) ·
The Swastik Safe Deposits and Investments Limited
(Swastik Safe)* (upto August 31, 2010) ·
Savoy Finance and Investment Private Limited*
(upto January 7, 2011) ·
Nandini Piramal Investment Private Limited* (upto
January 7, 2011) ·
The Ajay G. Piramal Foundation* ·
Paramount Pharma Private Limited* (w.e.f. August
30, 2010) ·
BMK Laboratories Private Limited (w.e.f.
September 1, 2010) ·
Cavaal Fininvest Private Limited* (w.e.f.
September 8, 2010) ·
Piramal Management Services Private Limited*
(w.e.f. September 1, 2010) ·
Piramal Healthcare Limited - Employee Option
Scheme (PHL-ESOP) ·
Piramal Enterprises Limited- Trustees of Piramal
Enterprises Executive Trust* *There are no transactions during the year with the above Companies. |
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Subsidiaries : |
· PHL Fininvest Private Limited (PHL Fininvest) · Piramal Diagnostic Services Private Limited [Piramal Diagnostic] (PDSL) (upto August 20, 2010, consequent to divestment of shareholding) · Piramal Pharmaceutical Development Services Private Limited (PPDSPL) · Oxygen Bioresearch Private Limited (w.e.f. January 11, 2011)$@ · Piramal International@ · Piramal Holdings (Switzerland) Limited (Piramal Holdings) · NPIL Pharma Inc, USA* · Piramal Healthcare Inc. · Piramal Investment Holdings (Canada) Inc.*@ · Piramal Life Sciences (UK) Limited*@ · Piramal Healthcare UK Limited (Piramal Healthcare UK)* · Piramal Healthcare Pension Trustees Limited*@ · Piramal Healthcare (France) Limited*@ · Piramal Healthcare (Canada) Limited (Piramal Healthcare, Canada)* · Oxygen Healthcare Limited, UK (w.e.f. January 11, 2011)*@ · Piramal Critical Care Italia, SPA (w.e.f November 3, 2010, being the date of incorporation)*@ · Piramal Critical Care Inc (PCCI)# · Minrad EU (France)#@ * Held through Piramal Holdings (Switzerland) Limited. # Held through Piramal Healthcare Inc. $ Held through Piramal Pharmaceutical Development Services Private Limited. @ There are no transactions during the year with the above
Companies |
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Other related parties where common control exists : |
· Piramal Glass Limited (PGL) · Piramal Life Sciences Limited (PLSL) · Piramal Enterprises Limited (PEL) · Piramal Realty Limited (formerly known as Alpex International Limited) (Piramal Realty) · IndiaVenture Fund Advisors Private Limited · Allergan India Private Limited (Allergan) · DDRC Piramal Diagnostic Services Private Limited (upto August 20, 2010)#@ · Arkray Piramal Medical Private Limited (Arkray) (upto September 30, 2010)* *Held through PHL Fininvest Private Limited. # Held through Piramal Diagnostic Services Private Limited @ There are no transactions during the year with the above Companies |
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Joint Venture Partner : |
* There are no transactions during the year with the above companies |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250000000 |
Equity Shares |
Rs.2/- each |
Rs.500.000 Millions |
|
3000000 |
Preference Shares |
Rs.100/- each |
Rs.300.000 Millions |
|
24000000 |
Preference Shares |
Rs.10/- each |
Rs.240.000 Millions |
|
105000000 |
Unclassified Shares |
Rs.2/- each |
Rs.210.000 Millions |
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Total |
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Rs.1250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
167916044 |
Equity Shares |
Rs.2/- each |
Rs.335.800
Millions |
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Notes :
Of the above :
1. 3,90,85,590 Equivalent Equity Shares of
Rs.2/- each were allotted as fully paid bonus shares by capitalization of Share
Premium/General Reserve.
2. 82,50,000 Equivalent Equity Shares of
Rs.2/- each were allotted to erstwhile shareholders of Gujarat Glass Limited on
amalgamation.
3. 88,67,010 Equivalent Equity Shares of
Rs.2/- each were allotted to erstwhile shareholders of Boehringer Mannheim
India Limited on amalgamation.
4. 51,97,050 Equivalent Equity Shares of
Rs.2/- each were allotted to erstwhile shareholders of Sumitra Pharmaceuticals
and Chemicals Limited as per the scheme of arrangement.
5. 3,75,25,020 Equivalent Equity Shares of
Rs.2/- each were allotted to erstwhile shareholders of Subject (PHL) as per the
scheme of arrangement.
6. The erstwhile Subject shareholders held
9,62,180 warrants with a right to convert into 75 Equivalent Equity Shares of
the company for every two warrants held on payment of Rs.10/- in Cash per
Equity Share. Out of this 9,52,644 warrants were converted into 3,57,24,155
shares resulting in the Issued and Subscribed Capital increasing by Rs.71.400
Million. The remaining 9,536 warrants were cancelled.
7. 1,57,50,000 Equivalent Equity Shares of
Rs.2/- each were allotted to the erstwhile Shareholders of Rhone-Poulenc India
Limited on its merger with the Company.
8. Out of the Company’s Right Issue Offer of
1,90,01,601 Equity Shares of Rs.2/- each for Rs.175/- each (including a Share
Premium of Rs.173/- each) for cash aggregating to Rs.3,325.3 Million, allotment
of the 4,462 Equity Shares of Rs.2/- each has been kept in abeyance pending
receipt of necessary documentation for establishing title to these Shares.
9. During the year, 4,10,97,100 equity shares
have been bought back pursuant to the buy back programme.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
|
|
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1] Share Capital |
335.800 |
418.000 |
418.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
116649.300 |
14588.300 |
11472.200 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
116985.100 |
15006.300 |
11890.200 |
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LOAN FUNDS |
|
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1] Secured Loans |
1970.700 |
4065.300 |
4480.100 |
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2] Unsecured Loans |
892.000 |
2544.300 |
5288.500 |
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TOTAL BORROWING |
2862.700 |
6609.600 |
9768.600 |
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DEFERRED TAX LIABILITIES |
1207.700 |
1304.800 |
1180.200 |
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TOTAL |
121055.500 |
22920.700 |
22839.000 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
6662.900 |
10738.900 |
10187.200 |
|
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Capital work-in-progress |
317.800 |
505.600 |
463.300 |
|
|
|
|
|
|
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INVESTMENT |
15832.500 |
1926.500 |
1299.800 |
|
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DEFERREX TAX ASSETS |
284.400 |
256.300 |
210.500 |
|
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|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2302.000
|
2854.700
|
2880.000 |
|
|
Sundry Debtors |
2162.000
|
2730.700
|
3618.800 |
|
|
Cash & Bank Balances |
17540.300
|
156.400
|
174.700 |
|
|
Other Current Assets |
77062.200
|
72.700
|
77.400 |
|
|
Loans & Advances |
9569.900
|
8830.300
|
8371.400 |
|
Total
Current Assets |
108636.400
|
14644.800
|
15122.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3588.800
|
2818.300
|
2574.600 |
|
|
Other Current Liabilities |
4629.100
|
794.900
|
697.200 |
|
|
Provisions |
2460.600
|
1538.200
|
1172.300 |
|
Total
Current Liabilities |
10678.500
|
5151.400
|
4444.100 |
|
|
Net Current Assets |
97957.900
|
9493.400
|
10678.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
121055.500 |
22920.700 |
22839.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
15853.600 |
26509.400 |
23162.600 |
|
|
|
Other Income |
4972.900 |
1477.800 |
284.400 |
|
|
|
TOTAL (A) |
20826.500 |
27987.200 |
23447.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
7945.100 |
11244.700 |
9551.400 |
|
|
|
Staff cost |
2440.100 |
2989.300 |
2515.500 |
|
|
|
Research and development expenses |
393.800 |
361.900 |
411.600 |
|
|
|
Other expenses |
5579.000 |
6347.700 |
6755.500 |
|
|
|
Exception items |
(162099.000) |
3.600 |
0.000 |
|
|
|
Increase/decrease in WIP/ finished goods |
(678.600) |
(218.400) |
(149.900) |
|
|
|
TOTAL (B) |
(146419.600) |
20728.800 |
19084.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
167246.100 |
7258.400 |
4362.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
797.900 |
1563.600 |
379.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
166448.200 |
5694.800 |
3983.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
776.100 |
922.200 |
838.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
165672.100 |
4776.200 |
3145.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
36703.000 |
344.000 |
392.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
128969.100 |
4432.200 |
2753.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4606.400 |
3208.600 |
3208.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend on equity shares |
2006.500 |
1128.600 |
877.900 |
|
|
|
Distribution tax thereon |
325.500 |
187.500 |
149.200 |
|
|
|
Transfer to general reserve |
73986.000 |
1393.300 |
1401.100 |
|
|
|
Transfer from Debenture Redemption Reserve |
(500.000) |
0.000 |
0.000 |
|
|
|
Transfer to debenture redemption reserve |
75.000 |
325.000 |
325.000 |
|
|
BALANCE CARRIED
TO THE B/S |
57682.500 |
4606.400 |
3208.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of Goods calculated on FOB basis |
4286.300 |
3679.700 |
5684.100 |
|
|
|
Research Income |
0.000 |
6.600 |
30.100 |
|
|
|
Other Earnings |
63.200 |
139.900 |
63.600 |
|
|
TOTAL EARNINGS |
4349.500 |
3826.200 |
5777.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1823.600 |
1251.700 |
2230.500 |
|
|
|
Capital Goods |
76.500 |
92.900 |
138.900 |
|
|
|
Traded goods/ Reagents |
221.500 |
319.900 |
234.600 |
|
|
TOTAL IMPORTS |
2121.600 |
1664.500 |
2604.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
574.30 |
19.70 |
13.20 |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
Type |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
2555.000 |
2706.900 |
|
Total Expenditure |
|
|
2656.500 |
2884.200 |
|
PBIDT (Excl OI) |
|
|
(101.500) |
(177.300) |
|
Other Income |
|
|
1583.700 |
1679.200 |
|
Operating Profit |
|
|
1482.200 |
1501.900 |
|
Interest |
|
|
75.700 |
149.300 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
1406.500 |
1352.600 |
|
Depreciation |
|
|
152.900 |
161.300 |
|
Profit Before Tax |
|
|
1253.600 |
1191.300 |
|
Tax |
|
|
242.700 |
237.400 |
|
Provision and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
1010.900 |
953.900 |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
1010.900 |
953.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
619.25
|
15.83
|
11.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1045.01
|
18.00
|
13.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
143.68
|
18.80
|
12.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.41
|
0.32
|
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.12
|
0.78
|
0.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
10.17
|
2.84
|
3.40 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS
(Rs. In Millions)
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors |
|
|
|
|
Due to Micro, Small and Medium Enterprises |
0.000 |
3.100 |
|
|
Others |
3588.800 |
2815.200 |
|
|
Total |
3588.800 |
2818.300 |
2574.600 |
FY2011 KEY HIGHLIGHTS:
·
Sale of Healthcare
Solutions business to Abbott for $ 3.8 billion
·
Sale of shareholding in
Piramal Diagnostics Services Private Limited to Super Religare Labs for Rs.6.0
billion
·
Buyback of 20% of equity share
capital of PHL at Rs. 600 per share, total outlay – Rs.25.1 billion
·
Proposed de-merger of
PLSL’s NCE research unit into PHL
·
Entry into Financial
Services business by setting up NBFC and acquisition of Indiareit Fund Advisors
and Indiareit Investment Management
VALUE CREATION THROUGH DIVESTITURES
Divestment of Healthcare Solutions business
On 21st May 2010, Subject (PHL) entered into a
definitive agreement with Abbott, USA to sell its Healthcare Solutions (Domestic
formulations) business for total cash consideration of $3.8 billion. The
domestic formulation business used to manufacture, market and sell branded
pharmaceutical products in finished form mainly in Indian market. As per the
terms and conditions of the deal, PHL has transferred its assets including
manufacturing facility at Baddi, Himachal Pradesh, rights to approximately 350
brands and trademarks and more than 5,000 employees from the domestic
formulations business. The business had sales of Rs. 19.7 billion in FY2010.
This was a landmark deal in the history of
Indian pharmaceutical industry; with premium valuation of ~9x FY2010 sales.
The transaction was completed on 7th September
2010 and PHL received Rs. 102.7 billion (equivalent Vto $ 2.2 billion) as
initial consideration. The remaining consideration will be paid in four
installments of $ 400 million in each of four subsequent anniversaries of the
closing, commencing in September 2011.
Divestment of Diagnostic services business
During the year PHL sold its shareholding in
its subsidiary Piramal Diagnostic Services Private Limited (PDSL) to Super
Religare Laboratories (SRL) for the total consideration of Rs. 6.0 billion. As
per the deal, PHL has received Rs. 3.0 billion in cash as an upfront payment on
closure of transaction in the month of August 2010, and Rs.1.4 billion in
January 2011. The balance amount is held in form of debentures of SRL to be
redeemed over a period of not more than 3 years.
This deal valued Diagnostic services business
at 3x FY2010 Sales and ~16x FY2010 EBITDA.
BUYBACK OF SHARES
Through the two landmark deals done in FY2011,
PHL has unlocked tremendous value for shareholders. Having created this value
for the Company, a part of it was distributed to the shareholders by the way of
buyback of shares. During the year, PHL bought back 41.8 million shares which
represented 20% of the equity share capital at a price of Rs.600 per share. The
buyback price represented a premium of 19% over the average share price for the
last three months at the time of announcement of buyback (22nd October 2010).
Rs. 25.1 billion was given back to shareholders in March 2011 as a result of
this exercise.
COMMITMENT TO PHARMACEUTICAL INDUSTRY
After the divestments of Healthcare Solutions
business and shareholding in their subsidiary Piramal Diagnostic Services
Private Limited, the business profile of PHL has completely changed. PHL now
has three main businesses which it would continue to invest and grow:
1. Pharma Solutions:
This is a global business that partners with
MNC pharmaceutical companies to service their manufacturing and development
needs. PHL has six facilities in India, two in UK and one in Canada. This
division had sales of Rs. 10.2 billion in FY11.
2. Critical Care:
This is a global business that caters to drug
requirement of hospitals worldwide. PHL has presence in 100+ countries globally
either through distributors or through own office. PHL has one facility in
India and one in US.
This division had sales of Rs.3.9 billion in
FY11.
3. Consumer Products Division/OTC:
This is a domestic business that caters to
Indian consumers through sales of OTC products. They have a strong product
portfolio consisting of Lacto Calamine – skin care range, Saridon – analgesic,
Polycrol – digestive, Supractiv – nutritional supplement, i-pill – emergency
contraceptive pill and Itchmosol – anti itching cream.
Management Discussion and Analysis
Proposed demerger of PLSL’s NCE research unit into PHL
The Board of PHL has approved the scheme of
De-merger of the New Chemical Entity (NCE) Research Unit of Piramal Life
Sciences Limited (PLSL) into Subject. Under the proposed De-merger scheme, each
shareholder of PLSL will be entitled to one fully paid up equity share of Rs. 2
each of PHL for every four equity shares of Rs. 10 each held in PLSL. All
assets and liabilities of the NCE division will be transferred to PHL at book
value.
Since April 2007, when PLSL was de-merged from
PHL as an independent discovery research company, it has made significant
progress. The pipeline of R and D programs has increased from nine to twenty
four with nine additional programs moving into Phase I/II clinical trials and
two additional program moving into Phase II clinical trials. Subsequent to the
significant progress that PLSL has made, the risk profile of NCE R and D
activity has reduced considerably.
Through this de-merger, PHL will have an
access to the innovation platform of PLSL through which it can build its
innovative discovery and commercialization business. PHL can also better
utilize its manufacturing infrastructure and leverage its marketing experience
with products from PLSL.
The Demerger Scheme is subject to the consent
of requisite majority of shareholders and creditors of the Company and of PLSL.
The Demerger Scheme is also subject to the sanction of the High Court of
Judicature at Bombay and all other regulatory approvals as may be necessary for
the implementation of the Demerger Scheme.
Acquisition of assets of Biosyntech
During the year, PHL acquired assets of
Biosyntech for a consideration of C$ 4.7 million. Biosyntech is a medical
devices Company specializing in the development, manufacturing and
commercialization of advanced biotherapeutic thermogels for regenerative
medicines (tissue repair) and therapeutic delivery. Company’s lead late stage
product BST-CarGel® has undergone a pivotal study for cartilage repair recently
and the final clinical study report is awaited.
ENTRY INTO FINANCIAL SERVICES SECTOR
They have been evaluating various sectors to
invest some of these funds in a way that optimizes their strengths and results
in long term value creation for their shareholders. With this in mind, the
Board of Directors has approved a plan for PHL to enter into the Financial
Services sector through a fully owned subsidiary company. India has had strong
GDP growth in past decade and is likely to continue with 8-9% GDP growth rate
for the next decade. Given sound economic fundamentals, rising disposable
income, financial sector liberalization and growth of consumer oriented, credit
oriented culture; the financial services sector is poised for strong growth in
India. To participate in this growth story, PHL has decided to foray in
financial services sector.
To begin with PHL will set up an NBFC for
lending to Infrastructure sector and to other sectors and will also get into
Fund Management for Real Estate and Infrastructure sector.
Acquisition of Indiareit Fund Advisors and Indiareit Investment
Management:
Towards building a strong financial services
business, PHL is in the process of acquiring Indiareit Fund Advisors Private
Limited and Indiareit Investment Management Company for the total consideration
of Rs. 2.3 billion. Indiareit Fund Advisors Private Limited Are advisors to the
Indiareit Fund which is a domestic real estate Private Equity fund focused on
the Indian markets. Indiareit Investment Management Company is manager to
offshore Real Estate Private Equity funds investing in India through the FDI route.
The total fund size under management for these funds is Rs. 38 billion.
Together, the Indiareit Fund Advisors and
Investment Management have a demonstrated track record of raising and deploying
effectively large sums of capital in the real estate sector in India and are
best positioned to benefit from the emerging Indian real estate market.
BUSINESS PERFORMANCE
Pharma Solutions (Custom Manufacturing)
Market commentary:
The global CMO market was estimated to be
worth c. $ 13 billion in 2002 and has grown to estimated $ 22 billion in 2009.
Growth in the CMO industry has been impacted in last 2 years due to global
financial crisis and resultant reduction in inventory level at many large
multinational pharmaceutical companies. However the de-stocking phenomenon is
coming to an end and the industry is on recovery phase. Global pharmaceutical
companies faced with patent expiry of large blockbuster products and fewer new
products approval are under tremendous pressure to cut costs. Indian companies
with their high quality, low cost production capabilities are well poised to
benefit from this trend.
Piramal Healthcare's performance:
The revenues from Pharma Solutions business
grew by 8.6% to Rs. 10.2 billion in FY2011 as compared to Rs. 9.4 billion in
FY2010. The revenues from Indian assets grew by 21.9% to Rs. 5.2 billion
against Rs. 4.3 billion in FY2010.
Acquisition of Oxygen Bio Research:
During the year PHL acquired Oxygen Bio
Research (“Oxygen”) based in Ahmedabad, India. Oxygen is a discovery services
company that provides integrated discovery services – synthetic chemistry,
medicinal chemistry, computational chemistry and in-vitro Biology. Oxygen has
developed specialist capabilities in medicinal chemistry and have a track
record with four of the top 20 pharmaceutical companies and several
biotechnology companies working in early stage discovery. The acquisition of
Oxygen marks PHL’s entry into the discovery services business and will enable
PHL to partner with its client companies at the early stage of drug life cycle.
Increase in capacity utilization:
The capacity utilization at Digwal site is
expected to reach at peak level in FY2012 and PHL is currently evaluating
various options to increase capacity. Similarly capacity utilization at
Pithampur site has also increased significantly during the year.
Increased non-Pfizer revenues at Morpeth:
On the back of robust clinical trial packaging
and formulation development business, non-Pfizer revenue as a % of site sales has
increased from 12% of sales to 26% of sales during the year.
Significant progress at Early Phase Assets:
Ahmedabad site was successfully audited by six
out of top 20 companies and has started supplies to three new clients. Ennore
site was successfully audited by four out of top 20 companies and has started
supplies to twelve new clients during the year.
Piramal Critical Care
Revenues from Critical Care business grew by
18.3% to Rs. 3.9 billion as compared to Rs. 3.3 billion in FY2010, mainly due
to increase in Sevoflurane sales.
Acquisition of Anesthetic business of Bharat Serums And Vaccines
Limited:
During the year PHL acquired Anesthetic
products business of Bharat Serums And Vaccines Limited (BSV) to expand its
anesthetic portfolio to include injectables. The acquisition provides PHL an
immediate entry into the Propofol market, the largest selling injectable
anesthetic globally.
Increased market share in US for Sevoflurane:
Sevoflurane market share for PHL in US has
increased from 14% as on March 2010 to 20% in March 2011 in volume terms.
Entry in European Union:
During the year, PHL has received
registrations in four countries in European Union. This will help PHL expand
Sevoflurane sales into Europe with registrations applied for in twenty six EU
countries having combined market of $ 300 million.
Capacity Expansion:
Last year they have expanded production volume
for Sevoflurane by 70% at Bethlehem site. Capacity for producing Isoflurane at
Digwal was almost doubled in FY2011.
OTC and Ophthalmology
Sales from OTC and Ophthalmology business grew
by 10.6% to Rs. 2.0 billion in FY2011 as compared to Rs. 1.8 billion in FY2010.
During the year, PHL has introduced a new range of anti bacterial soap –
TRI-ACTIV in the OTC space.
Moved to among top-10 players:
PHL has a strong brand portfolio consisting of
Saridon, Lacto Calamine, I-pill, Polycrol, Supractiv, TriActiv and Itchmosol.
The business has now moved from ranked 40th in the year 2008 to among top 10
OTC companies in India in the year 2011.
PORTFOLIO PERFORMANCE:
JOINT VENTURES and SUBSIDIARIES
Allergan India Limited (‘AIL’):
AIL is a 51:49 Joint Venture between Allergan
Inc., USA and Subject. Total revenues of AIL grew by 25.4% to Rs. 1.4 billion
(FY2010 Net Sales: 1.1 billion). The Operating profit for FY2011 was up by 7.9%
to Rs. 384.5 million as compared to Rs. 356.3 million in FY2010. Profit after
tax for FY2011 was up by 9.6% to Rs. 241.8 million as compared to Rs. 220.6
million for FY2010.
Sale of stake in JV with ARKRAY:
In the month of September 2010, Company sold
its entire stake of 49% in its Joint Venture Arkray Piramal Medical Private
Limited held through its wholly owned subsidiary PHL Fininvest Private Limited.
The Company recognised a profit (net of expenses) of Rs. 177.4 million on
account of the sale of its stake in the joint venture.
SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR 2011:
Sale of Healthcare Solutions business to Abbott:
During the year, the Company has sold its
Healthcare Solutions (Domestic Formulations) Business to Abbott Healthcare
Private Limited, for a total cash consideration of the Indian rupee equivalent
of $3.8 billion. The domestic formulation business used to manufacture, market
and sell branded pharmaceutical products in finished form mainly in the Indian
market. As per the terms and conditions of this transaction, the Company has
transferred it’s assets including manufacturing facilities at Baddi, Himachal
Pradesh, rights to approximately 350 brands and trademarks and more than 5,000
employees relating to its domestic formulations business to Abbott.
Sale of shareholding in Piramal Diagnostic Services Private Limited:
During the year, the Company also sold its
shareholding in its subsidiary Piramal Diagnostic Services Private Limited
(PDSL) to Super Religare Laboratories (SRL) for a total consideration of Rs.
6.0 billion. As per the terms of this transaction, the Company has received Rs.
3.0 billion in cash as an upfront payment on closure of the transaction in the
month of August 2010 and Rs. 1.4 billion in January, 2011. The balance amount
is held in the form of debentures of SRL to be redeemed over a period of not
more than 3 years.
Discontinuation of JV with Arkray:
In the month of September, 2010, the Company sold
its entire stake of 49% in its Joint Venture, Arkray Piramal Medical Private
Limited and recognized a profit (net of expenses) of Rs. 177.4 million on
account of this.
Acquisition of Oxygen Bio Research:
During the year, the Company acquired Oxygen Bio
Research (“Oxygen”) based in Ahmedabad, India. Oxygen is a 7 year old discovery
services Company providing integrated discovery services – synthetic chemistry,
medicinal chemistry, computational chemistry and in-vitro Biology. The
acquisition of Oxygen marks the Company’s entry into the discovery services and
will enable the Company to partner with its client companies at the early stage
of drug life cycle.
Buyback of equity shares:
The total shares bought back by the Company
under the Buyback of Equity Shares was 41.8 million shares, which represented
20% of the equity, at a price of Rs. 600 per share aggregating to Rs. 25.1
billion. The buyback price represented a premium of 19% over the average share
price for the last three months at the time of announcement of buyback (22nd
October, 2010).
OPERATIONS REVIEW:
FY2011 financials include the financials of
the Healthcare Solutions business only till 7th September, 2010 being the date
upto which this business was with the Company. Net Sales and Net Profit related
to Healthcare Solutions business included in FY2011 was Rs. 8.0 billion and Rs.
1.5 billion as compared to Rs. 19.7 billion and Rs. 5.8 billion in FY2010. As a
result, Total Operating Income for the year was lower at Rs. 19.9 billion as
compared to Rs. 28.0 billion for the year ended 31 March, 2010. Operating
Profit (OPBIDTA) was lower at Rs. 5.1 billion as compared to Rs. 7.3 billion in
FY2010. The net gain related to sale of Healthcare Solutions business and sale
of shareholding in PDSL resulted in exceptional income of Rs. 162.1 billion.
Hence, Profit After Tax was higher at Rs. 129.0 billion as compared to Rs. 4.4
billion in FY2010 and Earnings Per Share were Rs. 574.3 for the year as
compared to Rs. 19.7 per share for FY2010.
SUBSIDIARY COMPANIES:
Piramal Healthcare UK Limited
Net sales for FY2011 were lower at Rs. 4.2
billion as compared to Rs. 4.6 billion for FY2010 as FY2010 had some sales from
Huddersfield facility that was shut down later. Adverse movement of INR/GBP
exchange rate also impacted the performance of Piramal Healthcare UK Limited
INR appreciated by 7% vs. GBP resulting in lower sales and profitability.
Operating margin for the year was lower at 10.9% compared with 12.4% in the
last year. Operating Profit for the year was lower at Rs. 463.5 million as
compared to Rs. 570.3 million in FY2010. Net profit was lower at Rs. 315.3
million as compared to Rs. 618.4 million in FY2010 mainly due to one time
exceptional expenditure related to Voluntary Retirement cost of Rs. 48.5 million
in FY2011 and FY2010 number including a gain of Rs. 234.7 million by way of
deferred tax asset.
Piramal Healthcare (Canada) Limited
Net Sales for FY2011 grew by 5.2% to Rs. 940.2
million as compared to Rs. 893.6 million in FY2010. The results of Piramal
Healthcare (Canada) Limited have been impacted due to consolidation of
financials related to Biosyntech, a company whose assets were acquired during
the year. Biosyntech is a medical devices company specializing in development,
manufacturing and commercialization of advanced biotherapeutic thermogels for
regenerative medicines. Biosyntech related operations had an operating loss of
Rs 194.0 million for FY2011. Hence, there was a loss at Operating level for
Piramal Healthcare (Canada) Limited of Rs. 34.5 million as compared to
Operating Profit of Rs. 93.0 million for FY2010. Similarly, Net loss for the
year was Rs. 159.8 million as compared to Net profit of Rs. 27.5 million for
FY2010.
Piramal Healthcare Inc.
Piramal Healthcare Inc. includes financials of
Piramal Critical Care Inc. Net sales for the year grew by 50.9% to Rs. 2.7
billion as compared to Rs. 1.8 billion for FY2010 due to increased sales of
Sevof lurane. The Operating Profit was lower at Rs. 99.9 million as compared to
Rs. 172.6 million in FY2010 due to increased legal and professional charges
mainly related to ongoing proceedings related to Desf lurane. Net loss for the
year was higher at Rs. 380.0 million compared to Rs. 211.0 million in FY2010.
Piramal Pharmaceutical Development Services Private Limited
Net sales for the year grew by 108.3% to Rs.
194.4 million as compared to Rs. 93.3 million for FY2010 due to consolidation
of financials of Oxygen Bio Research, which was acquired during the year. The
Operating profit was much higher at Rs. 64.0 million as compared to Rs. 14.6
million in FY2010. Net Profit for the year was higher at Rs. 32.6 million as
compared to Net Loss of Rs. 3.6 million in FY2010.
The Ministry of Corporate Affairs has vide its
circular dated 8th February, 2011 issued directions under section 212(8) of the
Companies Act, 1956, granting general exemption to companies from attaching to
their Balance Sheets, the Accounts and other documents of their subsidiaries,
subject to fulfillment of specified conditions. In view of this general
exemption and being in compliance with the conditions thereof, the Accounts and
other documents of the Company’s subsidiaries are not attached to the Balance
Sheet of the Company. The Consolidated Financial Statements of the Company,
which include the results of its subsidiaries, are included in this Annual
Report. Further, a statement containing the relevant particulars prescribed
under the terms of the general exemption, for each of the Company’s subsidiaries,
is enclosed in this Annual Report. The Annual Accounts of the Company’s
subsidiaries and the related detailed information can also be sought by any
shareholder of the Company or its subsidiaries by making a
written request to the Company Secretary. The Annual Accounts of the Company’s
subsidiaries are also available for inspection for any shareholder at the
Company’s and/or the concerned subsidiaries’ registered office.
JOINT VENTURES:
Allergan India Private Limited (‘AIL’):
AIL is a 51:49 Joint Venture between Allergan
Inc., USA and Subject. Total revenues of AIL grew by 25.4% to Rs. 1.4 billion
(FY2010 Net Sales: 1.1 billion). The Operating Profit for FY2011 was up by 7.9%
to Rs. 384.5 million as compared to Rs. 356.3 million in FY2010. Profit After
Tax for FY2011 was up by 9.6% to Rs. 241.8 million as compared to Rs. 220.6
million for FY2010.
INDUSTRY OUTLOOK:
The global Custom Manufacturing market was
estimated to be worth $ 13 billion in 2002 and has grown to an estimated $ 22
billion in 2009. Growth in the CMO industry has been impacted in last two years
due to global financial crisis and resultant reduction in inventory level at
many large multinational pharmaceutical companies. However the de-stocking
phenomenon is now coming to an end and the industry is on recovery phase.
Global pharmaceutical companies faced with patent expiry of large blockbuster
products and fewer new products approval are under tremendous pressure to cut
costs. Indian companies with their high quality, low cost production
capabilities are well poised to benefit from this trend.
FIXED ASSETS
·
Brand
·
Know-how
·
Licences
·
Trademarks
·
Intellectual Property
Rights
·
Land Leasehold
·
Land Freehold
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Motor Vehicle/ Transport
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2011
(Rs.
In Millions)
|
Particulars |
3 months ended |
Year
to dates Figures for Current period ended |
|
30.09.2011 (Unaudited) |
30.09.2011 (Unaudited) |
|
|
Net Sales/ Income from operations |
2656.800 |
11050.700 |
|
Other Operating Income |
50.100 |
53.300 |
|
Net Sales /
Income from operations |
2706.900 |
11104.000 |
|
Income from Investments |
610.100 |
880.400 |
|
Net Sales/
Income from operations and Investments |
3317.000 |
11984.400 |
|
Expenditure |
|
|
|
Increase/ Decrease in stock in trade and work-in –progress |
(140.600) |
(300.900) |
|
Consumption of Raw Materials |
1371.600 |
2592.500 |
|
Purchase of Traded Goods |
187.600 |
434.600 |
|
Employees Cost |
446.400 |
778.100 |
|
R and D Expenses |
84.700 |
166.700 |
|
Depreciation |
161.300 |
314.200 |
|
Foreign Exchange (Gain )/ Loss (Net) |
(1069.000) |
(1859.400) |
|
Other Expenditure |
934.500 |
1869.700 |
|
Total
Expenditure |
1976.500 |
3995.500 |
|
Profit from operations and Investment Income before Other Income,
Interest and Exceptional Item |
1340.500 |
2669.700 |
|
Other Income |
0.100 |
0.200 |
|
Profit Before Interest and Exceptional Item |
1340.600 |
258.500 |
|
Interest (Net) |
149.300 |
225.000 |
|
Profit After Interest but before Exceptional Item |
1191.300 |
2444.900 |
|
Exceptional Item |
-- |
-- |
|
Profit from ordinary Activities Before Tax |
1191.300 |
2444.900 |
|
Tax Expenses |
237.400 |
480.100 |
|
Net Profit from ordinary Activities after tax |
953.900 |
1964.800 |
|
Extraordinary Items (Net of tax expenses) |
-- |
-- |
|
Net Profit for
the period |
953.900 |
1964.800 |
|
Paid-up Equity Share Capital (Face Value Rs. 2/- each) |
3344 |
3344 |
|
Paid-up Debt Capital |
-- |
-- |
|
Reserve (Excluding Revaluation Reserve) |
-- |
-- |
|
Debentures Redemption Reserve |
-- |
-- |
|
Earning per share (EPS) |
|
|
|
a) Basic and Diluted EPS before extraordinary items fro the period. |
5.7 |
11.7 |
|
b) Basic and Diluted EPS after extraordinary items for the period |
5.7 |
11.7 |
|
c) Basic and diluted EPS before exceptional items (net of tax) for the
period (Rs.) |
5.7 |
11.7 |
|
|
|
|
|
Public Shareholding |
|
|
|
- Number of Shares |
78048415 |
78048415 |
|
- Percentage of Shareholding |
46.68 |
46.68 |
|
|
|
|
|
Promoters and promoter group shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of Shares (% to total shareholding of promoters and promoter
group) |
-- |
-- |
|
- Percentage of Share ( % to the total share capital of the company) |
-- |
-- |
|
b) Non Encumbered |
|
|
|
- Number of Shares |
89162100 |
89162100 |
|
- Percentage of Shares (% to total shareholding of promoters and promoter
group) |
100.00 |
100.00 |
|
- Percentage of Share ( % to the total share capital of the company) |
53.32 |
53.32 |
Notes :
1. The standalone financial results, for the quarter and half year ended September 30, 2011, have been reviewed by the Audit Committee and approved by the Board at its meeting h and d on October 20, 2011 and are subjected to limited review by the statutory auditors.
2. The only individually reportable business segment is pharmaceutical business.
3. Pursuant to the Board Resolution dated August 2, 2011, the Company has purchased 5.485% (i.e. 2,27,12,664 equity shares) of the issued equity share capital of Vodafone Essar Limited from ETHL Communications Holdings Limited for a cash consideration of Rs.2,8569.500 Millions.
4. During the quarter ended September 30, 2011, the Company incorporated a wholly owned subsidiary PHL Capital Private Limited.
5. Pursuant to the board resolutions dated May 6, 2011, the shareholders of the Company and Piramal Life Sciences Limited (PLSL) have approved the scheme of demerger of New Chemical Entity Unit (NCE) of PLSL into the Company on going concern basis with effect from April 01, 2011 (Appointed Date) for the consideration of One equity share of Rs.2/ each of the Company for four equity shares of Rs.10/- each held in PLSL.
Pending approval of the scheme with Hon’ble High Court, the revenue expenditure / charges relating to the period from April 01, 2011 to September 30, 2011 of NCE Research Unit, have not been considered in the results.
7. Income from Investments represents the income earned on the temporary investments made out of proceeds from sale of the Domestic Formulation Business and the holding in Piramal Diagnostic Services Private Limited. These temporary investments have been made due to surplus funds available in the interim and shall be deployed in businesses in due course.
8. Shareholder complaints received during the quarter ended September 30, 2011:
Complaints as at July 01, 2011
Complaints received during the quarter ended September 30, 2011
Complaints disposed off during the quarter ended September 30, 2011
Complaints pending as on September 30, 2011
9. The figures for the quarter ended June 30, 2009 and year ended March
31, 2010 have been regrouped, wherever necessary.
STATEMENT OF
ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
|
SIX MONTHS ENDED |
|
|
30.09.2011 |
|
|
|
UnAudited |
|
|
Shareholders Funds |
|
|
|
- Share Capital |
|
334.400 |
|
-
Reserves and Surplus |
|
118192.200 |
|
Loan Funds |
|
3766.900 |
|
Deferred Tax Liability (Net) |
|
912.300 |
|
Total |
|
123214.800 |
|
|
|
|
|
Fixed Assets |
|
6971.600 |
|
Investments |
|
41168.400 |
|
|
|
|
|
Current Assets, Loans and Advances |
|
|
|
- Inventories |
|
2611.100 |
|
- Sundry Debtors |
|
2118.600 |
|
-
Cash and Bank Balances |
|
7181.600 |
|
- Other Current Assets |
|
60304.700 |
|
- Loans and Advances |
|
10107.600 |
|
|
|
82323.600 |
|
|
|
|
|
Less : Current Liabilities and Provisions |
|
|
|
- Liabilities |
|
7089.900 |
|
- Provisions |
|
158.900 |
|
|
|
7248.800 |
|
|
|
|
|
Total |
|
123214.800 |
Business
Description
Subject is an India-based company engaged in the pharmaceutical business
mainly consisting of manufacturing and sale of own and traded bulk drugs and
formulations. Its business segments are Pharmaceuticals and Other. The
Company’s businesses include Pharma Solutions, which partners with
multinational company (MNC) pharmaceutical companies to service their
manufacturing and development needs; Critical Care, which caters to drug
requirement of hospitals worldwide, and Consumer Products Division/OTC, which is
a domestic business that caters to Indian consumers through sales of over the
counter (OTC) products. During the fiscal year ended March 31, 2010 (fiscal
2010), the Company acquired Oxygen Bio Research (Oxygen). During fiscal 2010,
it acquired an anesthetic products business of Bharat Serums and Vaccines
Limited. During 2010, the Company launched TRI-ACTIV. On November 3, 2010, the
Company incorporated a wholly owned subsidiary Piramal Critical Care Italia
SPA. For the nine months ended 31 December 2010, Subject's revenues decreased
21% to RS22.03B. Net income totaled RS126.82B, up from RS3.18B. Revenues
reflect a decrease in income from pharmaceuticals segment and lower income from
other business segment. Net income benifited by a decrease in consumption of
raw materials, Research and Development expenses, employees cost and other
expenditure. There is also a fall in foreign exchange gain.
BOARD OF DIRECTORS
Ajay G. Piramal
(Executive Chairman of the Board)
Shri. Ajay G. Piramal is Executive Chairman of the Board of Subject. He
envisions making his company the most admired in the Indian pharmaceutical
industry, in the eyes of all its stakeholders - customers, shareholders,
employees, and the society. Mr. Piramal also heads Piramal Enterprises, a Rs.
3,500 crore conglomerate with interests in textiles, retailing and engineering,
besides pharmaceuticals. The flagship company, Nicholas Piramal India Limited
(NPIL), is the fourth pharmaceutical player in India. It all began with the
acquisition of the US$ 4 million Nicholas Laboratories from Sara Lee in 1988.
NPIL has registered dramatic growth over the last 15 years through a string of
acquisitions that include the Indian subsidiaries of MNCs like Roche,
Boehringer Mannheim, Rhone Poulenc, and Hoechst Marion Roussel (research
division), and the pharmaceutical division of ICI India Limited.
Amit Chandra
(Additional Independent Director)
Mr. Amit Chandra is Additional Independent Director of Subject He is an
MBA graduate from the Boston College, USA. He was awarded the School’s
distinguished alumni in 2007. He received his under-graduate degree in
Electrical Engineering from VJTI, Mumbai University. Mr. Chandra is a
investment banker. He is a Director on the Board of Bain Capital Advisors
(India) Private Limited, which is part of the Bain Capital Group, a global
Private Equity firm. He joined Bain Capital in 2008 to found its Mumbai office.
Prior to this, he was the Managing Director and Board Member of DSP Merrill
Lynch where he spent most of his professional career, having direct oversight
of its global market and investment banking business. Mr. Chandra is also
active in the country’s not-for-profit space and serves as a Board Member of
the Akanksha Foundation (which provides education to less privileged children)
and GiveIndia (India’s philanthropic exchange). Among his other achievements,
Mr. Chandra was named the ‘Young Global Leader’ by the World Economic Forum in
2007.
Keki Bomi Dadiseth
(Non-Executive Independent Director)
Mr. Keki Bomi Dadiseth is Non-Executive Independent Director of Subject
Mr. Dadiseth is a Fellow of the Institute of Chartered Accountants of England
and Wales. He joined Hindustan Lever Limited in India in 1973 as Manager in the
Audit Department. His tenure with Hindustan Lever included a three-year
secondment to Unilever Plc in London (1984-87), where he held senior financial
and commercial positions. In 1987 Mr. Dadiseth joined the Board of Hindustan
Lever till he became Chairman in 1996. Mr. Dadiseth headed several businesses
(Detergents and Personal Products) and functions (Personnel and Acquisitions
and Mergers activities) for the Group in India. Mr. Dadiseth was appointed as
Director on the Board of Unilever Plc and Unilever NV in May 2000 and a Member
of the Executive Committee. On January 1, 2001, he took over as Director, Home
and Personal Care, responsible for the HPC business of Unilever worldwide. He
retired from Unilever in May 2005. In India, Mr. Dadiseth is closely associated
with various industry, educational, management and medical bodies. He is a
Trustee of the Ratan Tata Trust and a Member of the Managing Committee, Breach
Candy Hospital Trust.
Yezdi H. Malegam
(Independent Non-Executive Director)
Mr. Yezdi H. Malegam is Independent Non-Executive Director of Subject.
He is a Chartered Accountant and the former Managing Partner of Messrs S. B.
Billimoria and Co., Chartered Accountants. He was also the Co-Chairman of
Deloitte Haskins and Sells, Chartered Accountants. He is a member of the
Central Board of Directors of the Reserve Bank of India and a member of the
Board of Directors of several public limited companies.
Nandini Piramal
(Executive Director)
Ms. Nandini Piramal is Executive Director of Subject since 01 April
2009. Ms. Piramal graduated in Bachelor of Arts (Hons.) from Hertford College,
Oxford University and is an Masters of Business Administration of the Stanford
Graduate School of Business. Her academic performance in the Masters of
Business Administration Programme was acknowledged by the Stanford Graduate
School of Business. In July, 2006 Ms. Nandini Piramal was appointed as GM -
Strategic Marketing of the Company and was deputed to the Company’s
wholly-owned subsidiary in the US, NPIL Pharma Inc. As GM - Strategic
Marketing, Ms. Piramal gained deep insight into the Group’s Pharma Solutions
business. She was instrumental in increasing co-ordination between UK, India
and China towards globalized sourcing. In September 2008, she was appointed as
a non-executive director on the Board of Piramal Healthcare (Canada) Inc
(formerly Torcan). She played a key role in implementation of the Operational
Excellence Project at Torcan and Grangemouth. She was also actively involved in
due diligence of acquisition and joint venture targets. Prior to her
appointment with the Company, Ms. Piramal was associated with McKinsey and Co.
as a Business Analyst, during which time she worked on many projects, including
Purchase and Supply Management, Growth Strategy and Information Technology
Strategy of various corporates. She was also associated with the slum
rehabilitation proposal of McKinsey, which was part of its larger project for
the future growth of Mumbai city.
Swati A. Piramal
(Executive Director)
Dr. Swati A. Piramal is Executive Director of Subject Her current responsibilities
include Research and Development, Information Technology, Medical Services and
Knowledge Management for the Healthcare Group of Piramal Enterprises. A Medical
Doctor (MBBS) from the University of Bombay, Dr. Piramal graduated with a Masters
Degree from Harvard School of Public Health, Boston USA, where she had the
unique honour of being selected Commencement Speaker at the 1992 Graduation
Ceremony. Dr. Piramal's special research interests include: Herbal, Clinical
Discovery and Nutrition Research in Pharmaceuticals, the use of management
techniques like Information Technology and Communication to improve access and
lower healthcare costs to meet the needs of the underprivileged children. Her
specific Research interests focus on Malaria, Tuberculosis, AIDS and Diabetes.
Subramanian
Ramadorai (Non-Executive Independent Director)
Mr. Subramanian Ramadorai is Non-Executive Independent Director of
Subject. Mr. Ramadorai is the Chief Executive Officer and Managing Director of
Tata Consultancy Services Limited (TCS) and has been associated with TCS for
the past thirty seven years. Mr. Ramdaorai joined TCS as a trainee and took
over as CEO in 1996. In October 2006, TCS was recognized by Economic Times as
the Company of the Year, a fitting tribute to its increasing global presence.
Mr. Ramadorai’s vision is evident through the active role he played in
establishing Offshore Development Centers (ODCs) in India to provide high-end
quality solutions to corporations. With a view to remain abreast with changing
technologies at all times, he set up Technology Excellence Centers in India
that have acquired knowledge, and equipment in specialized technology areas.
Mr. Ramadorai was presented with the UK Trade and Investment Special
Recognition Award by Prime Minister Blair, in September 2005 for TCS exemplary
contribution to India - UK economic ties. In 2008, he was recognized as the
“International CEO of the Year” at the 14th Annual LT Bravo Business Awards,
which are widely acknowledged as the Oscars of Latin American business, and
organized by the Latin Trade magazine.
N Santhanam (Chief
Operating Officer, Executive Director)
Mr. N Santhanam is Chief Operating Officer, Executive Director of
Subject. He is the Chief Financial Officer of Nicholas Piramal India Limited
reporting to the Chairman, Mr. Ajay Piramal. As CFO, Mr. Santhanam plays a key
role and acts as a strategic business partner to the Chairman and the company's
senior management team. The mission at Nicholas Piramal is to build a world
class finance organization with the objective of creating an information
environment to facilitate decision making and Mr. Santhanam is a qualified
Chartered Accountant with a academic career. He has over 30 years of and varied
experience in Corporate Accounts and Finance. Prior to joining the Group he was
with The Bombay Dyeing and Mfg. Co. Limited During his long tenure spanning
over two decades with the Wadia Group, he gained and experience in not only the
entire gamut of Finance (including Legal), but also in General Business
Management.
Deepak M.
Satwalekar (Non-Executive Independent Director)
Mr. Deepak M. Satwalekar is Non-Executive Independent Director of
Subject. He was formerly the Managing Director and the Chief Executive Officer
of HDFC Standard Life Insurance Company Limited and prior to that, Managing
Director of HDFC Limited Mr. Satwalekar has been a consultant to the World
Bank, the Asian Development Bank and other bilateral and multilateral agencies
and is the recipient of the “Distinguished Alumnus Award” from the Indian
Institute of Technology, Bombay from where he obtained his Bachelor of
Technology. He has an MBA degree from the American University, Washington D.C.,
USA.
Rajendra A. Shah
(Non-Executive Independent Director)
Shri. Rajendra A. Shah is Non-Executive Independent Director of Subject.
He is Solicitor and Senior Partner of Messrs Crawford Bayley and Co. He
specializes in a broad spectrum of Corporate Laws in general, with special
focus on foreign investments, joint ventures, technology and licence
agreements, intellectual property rights, mergers and acquisitions, industrial
licensing, anti-trust and competition laws. He is on the Board of several
reputed companies. Mr. R. A. Shah is a member of the Managing Committee of the
Bombay Chamber of Commerce and Industry, Indo-German Chamber of Commerce and
President of the Society of Indian Law Firms (Western Region).
Narayanan Vaghul
(Non-Executive Independent Director)
Shri. Narayanan Vaghul is Non-Executive Independent Director of Subject.
He served as the Chairman of ICICI Bank Limited. He was the Chairman of ICICI
Limited from September 1985 until it merged with ICICI Bank Limited in 2001. He
also served as Chief Executive Officer of ICICI until 1996. Mr. Vaghul has been
a visiting professor at the Leonard N. Strn School of Business at New York
University since 1998. Mr. N.Vaghul holds a Bachelors of Commerce in Banking
from Madras University.His other Directorships include : ICICI Bank Limited –
Chairman - Chairman - Remuneration
Committee; Mahindra and Mahindra Limited - Director - Chairman - Compensation
Committee; Mahindra World City Developers Limited - Chairman; - Member - Audit
Committee - Member - Remuneration Committee Wipro Limited - Director.
N Santhanam (Chief
Operating Officer, Executive Director)
Mr. N Santhanam is Chief Operating Officer, Executive Director of
Subject. He is the Chief Financial Officer of Nicholas Piramal India Limited
reporting to the Chairman, Mr. Ajay Piramal. As CFO, Mr. Santhanam plays a key
role and acts as a strategic business partner to the Chairman and the company's
senior management team. The mission at Nicholas Piramal is to build a world
class finance organization with the objective of creating an information
environment to facilitate decision making and Mr. Santhanam is a qualified
Chartered Accountant with a academic career. He has over 30 years of and varied
experience in Corporate Accounts and Finance. Prior to joining the Group he was
with The Bombay Dyeing and Mfg. Co. Limited During his long tenure spanning
over two decades with the Wadia Group, he gained and experience in not only the
entire gamut of Finance (including Legal), but also in General Business
Management.
PRESS RELEASES
Piramal Healthcare announces settlement of patent litigation
with Baxter Healthcare related to generic version of SUPRANE (Desflurane)
Mumbai, 01st
November 2011:
Piramal
Critical Care, Inc. (Piramal), a subsidiary of Piramal Healthcare Limited, announces
that patent litigation between it and Baxter Healthcare Corporation related to
generic version of Baxter SUPRANE® (Desflurane) inhaled anesthetic agent
typically used in the hospital setting has been dismissed by the United States
District Court for the District of Delaware pursuant to a settlement between
the parties.
Under the settlement, Piramal has obtained a license to the Baxter patent at
issue in the lawsuit,pursuant to which the parties agree that Piramal may
launch its generic Desflurane product in the United States as of January 1,
2014, subject to US regulatory approval. Piramal has agreed not to make, use,
sell or offer for sale in the United States, or import into the United States,
this product prior to January 1, 2014. However, Piramal has taken a license
under the patent pursuant to which the parties agree that Piramal may
manufacture its generic Desflurane product in the United States as of April 24,
2012 solely for sale outside the United States in markets where it has obtained
or will obtain regulatory registrations.
Subject Announces
Settlement Of Patent Litigation With Baxter Healthcare Related To Generic
Version Of SUPRANE (Desfiurane)
Noveber
01, 2011
Subject's
Piramal Healthcare Limited announced that patent litigation between it and
Baxter Healthcare Corporation related to generic version of Baxter SUPRANE (
Desfiurane) inhaled anesthetic agent typically used in the hospital setting has
been dismissed by the United States District Court for the District of Delaware
pursutant to a settlement between the parties. Under the settlement, Piramal
has obtained a license to the Baxter patent at issue in the lawsuit, pursutant
to which the parties agree that Piramal may launch its generic Desflurane
product in the United States as of January 1, 2014. Piramal has agreed not to
make, use, sell or offer for sale in the United States or import into the
United States, this product prior to January 1, 2014. However, Piramal has
taken a license under the patent pursutant to which the parties agree that
Piramal may manufacture its generic Desflurane product in the United States in
the market where it has obtained or will obtain regulatory registrations.
Further terms of the settlement agreement are confidential and are not
disclosed.
Piramal
Healthcare Limited Updates On Buy back Offer
Mar
31, 2011
Piramal Healthcare Limited announced that the buyback of 41,802,629 fully paid
up equity shares of INR2 each by the Target Company through a tender offer at a
price of INR600 per Share. The Buyback constitutes 20% of the issued,
subscribed and paid-up equity share capital of the Company as on September 30,
2010. The Buyback offer was open from March 03, 2011, to March 24, 2011. The
Company has completed the process of the Buyback and has accepted a total of
41,802,629 Shares (which includes 705,529 Shares accepted from Overseas
Corporate Body, which has been kept in abeyance pending receipt of requisite
approval from Reserve Bank of India), at a price of INR600 per Share. The
Registrar to the Offer that is Link Intime India Private Limited received
20,070 valid acceptances for 16,29,37,627 Shares leading to a subscription of
approximately 389.78%.
Piramal Healthcare
eyes new businesses
India,
December 9 -- Ajay Piramal-led Piramal Healthcare Limited has identified
information technology enabled security systems, infrastructure consulting and
portfolio investment as the areas of business that it intends to enter in the
future.
These
sectors, unrelated to the group's existing businesses, are in addition to
insurance and infrastructure finance, that the company has been actively
looking at venturing into. The shareholders of the company have approved the
special resolution to make necessary changes in the memorandum of association
of the company for the entry into new businesses, Piramal Healthcare said in a
filing to stock exchanges.
This
enabling resolution will allow the company to enter high potential business
ventures, including the financial services and infrastructure segments, said a
senior executive from Piramal Healthcare on condition of anonymity.
"It
may also get into a few other non-traditional businesses such as information
technology, security systems and packaging etc. as and when opportunities come
up," he said. "The company may either look at direct entry in such
businesses or may look at acquisition opportunities in these sectors."
The
company had sold its India formulation business, which was then ranked the
fifth-largest in the domestic pharmaceutical market by sales, and the diagnostic
services division for a total value of around Rs176000.000 Millions a year ago.
It had then said that it will invest this money into new businesses.
Piramal
Healthcare is currently engaged in three businesses, including contract
manufacturing of drugs, drug research, and consumer health and hospital-based
drug formulations.
Chairman
Ajay Piramal had earlier said that Piramal Healthcare will look at expanding
its existing businesses and also go beyond them to transform into a diversified
business group. Piramal in an earlier interview with Mint had said that
infrastructure financing such as home loans and lending to corporates engaged
in construction and other infrastructure businesses is one area that the
company will seriously look at for investments. Mint had earlier also reported
the company's plans to enter insurance sector. Piramal had recently formed a
new financial services companyPiramal Capital, a unit of Piramal Healthcareto
enter infrastructure financing.
"In
the $80 billion IT services industry, it will be pitted against
well-established Indian IT players like Tata Consultancy Services Limited,
Infosys Limited, Wipro Limited, Cognizant and HCL Technologies. Besides, it
will have multinationals like IBM, Accenture and Capgemini to contend with,"
said an industry expert who didn't want to be identified.
Similarly,
in the electronic security space, it will have competition from established
rivals, including HCL Infosystems Limited, Siemens Limited, Rolta Limited,
Godrej Security Solutions and Zicom Limited The demand for security equipment
has gone up manifold in recent times, especially after the recent terrorist
attacks in major cities, including Mumbai and New Delhi. India, according to
industry estimates, will be investing $12.3 billion into the private security
industry by 2016, said the industry expert quoted earlier.
Piramal
Healthcare, soon after the completion of the sale to Abbott Laboratories, had
formed an internal strategy group with sectoral experts to identify new
investment opportunities. The company, in the interim period has also looked at
some portfolio investments, including a purchase of 5.5% stake in Vodafone
Group Plc, with a two-year exit option.
Piramal
Healthcare's shares rose 2.9% to Rs379.10 on BSE on Thursday, while the benchmark
Sensex declined 2.3%.
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 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.54.24 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.70.46 |
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 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.