MIRA
INFORM REPORT
|
Report Date : |
22.01.2011 |
IDENTIFICATION DETAILS
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Name : |
AUROBINDO PHARMA LIMITED |
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Registered
Office : |
Plot No. 2, Maithri Vihar, Behind Maithri Vanam, Ameerpet,
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
26.12.1986 |
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Com. Reg. No.: |
01- 15190 |
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CIN No.: [Company Identification
No.] |
L24239AP1986PLC015190 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDA01477A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing Bulk Drugs, Formulations, Tablets and
Capsules, Syrups and Injectiables. |
RATING & COMMENTS
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MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 76574000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Directors are reported
to be experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for 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.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/Corporate Office : |
Plot No. 2, Maithri Vihar, Behind Maithri Vanam, Ameerpet,
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Tel. No.: |
91-40-23741083 / 23741084 / 23744919 / 66725000 / 66725401 |
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Fax No.: |
91-40-23746833 / 23741080 / 23748112 |
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E-Mail : |
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Website : |
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Factory 1 : |
Unit - I Survey
No.388/389, Borpatla, Hatnoor Mandal, Medak District, 502 296, |
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Factory 2 : |
Unit-II Plot No.103/A
and 104/A, SVCIE, Industrial Development Area, Bollaram, Jinnaram (Mandal)
Medak District, 500 092, |
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Factory 3 : |
Unit-III Survey No.313
and 314 Bachupally, Quthubullapur Mandal, Range Reddy District, 500 090, |
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Factory 4 : |
Unit-IV Survey No.66
(Part) and 67 (Part), Miyapur, Serilingampally Mandal, |
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Factory 5 : |
Unit-V Plot No.79-91,
Industrial Development Area, Chemical Zone, Pashamylaram, Patancheru Mandal, Medak District, 502 307, |
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Factory 6 : |
Unit-VI Survey No.
329/39 and 329/47, Chitkul Village, Patancheru Mandal, Medak District, 502
307, Andhra Pradesh, India |
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Factory 7 : |
Unit-VII (SEZ) Sy.Nos.411/P, 425/P,
434/P, 435/P and 458/P, Plot No.S1(Part), Special Economic Zone (Pharma),
APIIC, Green Industrial Park, Polepally Village, Jedcherla Mandal, Mahaboob
Nagar, 509 302, Andhra Pradesh, India |
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Factory 8 : |
Unit-VIII Survey No.13,
Gaddapothram, Industrial Development Area - Kazipally Industrial Area,
Jinnaram Mandal, Medak District, 502 319, |
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Factory 9 : |
Unit-IX Survey No.374,
Gundlamachanoor, Hatnoora Mandal, Medak District, 502 296, |
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Factory 10 : |
Unit-X B-2, Sipcot, Industrial Complex, Kudikadu, Cuddalore 607 005, |
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Factory 11 : |
Unit-XI Survey No.61-66,
Industrial Development Area, Pydibhimavaram, Ranasthalam Mandal, Srikakulam,
532 409, |
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Factory 12 : |
Unit-XII Survey No.314,
Bachupally, Quthubullapur Mandal, Range Reddy District, 500 090, |
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Factory 13 : |
Bhiwadi Unit 1128, RIICO
Phase-III, Bhiwadi, 301 019, |
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Overseas Office
: |
Aurobindo - North America, |
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Tel. No.: |
+1 732 839 9400 X 4066 |
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E-Mail : |
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Research Centre
: |
Survey No. 313, |
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Branch/ Representative Offices : |
Ethiopia E-mail: aravindbabum@aurobindo.com
Vietnam Ares Block, Tel: ++ 44 20 8845 8811 Contact Person: Mr. V. Muralidharan E-mail: vmurali@aurobindo.com Hong Kong
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DIRECTORS
AS ON 23.09.2010
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Name : |
Mr. P.V. Ramaprasad Reddy |
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Designation : |
Chairman |
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Qualification : |
M. Com. |
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Date of Appointment : |
26.12.1986 |
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Profile : |
Mr. P.V.
Ramprasad Reddy, born 1958 Chairman of the Board and a promoter of the
Company. He is a postgraduate in Commerce and prior to promoting Aurobindo
Pharma in 1986, he held management positions in various pharmaceutical
companies. He leads the strategic planning of the Company and pilots the
successful implementation of the Company's ventures. Recently in 2008 the widely read, World Pharmaceutical Frontiers,
announced he is among the top 35 most influential people in the
pharmaceutical industry. |
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Name : |
Mr. K. Nityananda Reddy |
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Designation : |
Managing Director |
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Qualification : |
M. Sc. |
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Date of Appointment : |
26.12.1986 |
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Profile : |
Mr. K. Nithyananda
Reddy, born 1958
Managing Director and a promoter of the Company. He holds a Masters Degree in
Science (Organic Chemistry) and has been associated with the Company from the
initial days. He is versatile with the manufacturing technology and
supervises the overall affairs of the Company. |
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Name : |
Mr. M. Madan Mohan Reddy |
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Designation : |
Whole-Time Director |
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Profile : |
Mr. M. Madan Mohan
Reddy, born 1960
Whole-time Director, he has a Masters Degree in Science (Organic Chemistry)
and has held top managerial positions in leading pharmaceutical companies. He
commands valuable experience in regulatory affairs of the industry. Earlier,
he was the Managing Director of M/s. Sri Chakra Remedies Limited. He looks
after formulations manufacturing. |
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Name : |
Dr. M. Sivakumaran |
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Designation : |
Whole-Time Director |
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Qualification : |
M. Sc., Ph. D. |
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Date of Appointment : |
30.03.1992 |
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Profile : |
Dr. M. Sivakumaran, born 1943 Whole-time Director, he holds a
Masters Degree in Science and has been awarded Ph.D in Organic Chemistry. He has
about 35 years of experience in the pharmaceutical industry and is
responsible for the technological evolution of the Company. He looks after
research and development, new product development and total quality
management. |
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Name : |
Mr. M. Sitarama Murthy |
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Designation : |
Non-Executive Director |
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Profile : |
Mr. M. Sitarama Murthy,
born 1943
Non-Executive Director, did his Masters in Electronics. He is professionally qualified
banker. He has over three decades of experience as a banker and has held
various positions in nationalised banks and retired as Managing Director and
CEO of State Bank of His specialised areas of interest are International
Banking, Foreign Exchange, Money Markets, Funds Management, Credit
Management, Rural Development, Computerisation, Commercial Law and Systems
and Procedures. He has authored several books on banking systems and
contributes regular articles to financial magazines / newspapers. |
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Name : |
Dr. P.L. Sanjeev Reddy |
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Designation : |
Non-executive
Director, |
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Profile : |
Dr. P.L. Sanjeev Reddy,
born 1940
Non-executive Director, after his Masters in Economics, did postgraduate Diploma
in Development of Studies from the |
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Name : |
Dr. D. Rajagopala Reddy |
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Designation : |
Non-Executive Director |
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Name : |
Dr. K. Ramachandran |
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Designation : |
Non-Executive Director |
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Profile : |
Dr. K. Ramachandran, born 1955 Non-executive Director, was
awarded Ph.D by the Cranfield School of Management, U.K. Since 1986, he has
been teaching in IIM, Ahmedabad / Indian School of Business, Hyderabad and
his strong areas of knowledge include entrepreneur opportunities, growth
strategies, resource management, innovation, corporate entrepreneurship, new
enterprise management, venture capital industry, and family business and SME
policies. He has been a consultant to a number of Indian and international
organizations on entrepreneurship and strategy. His international consultancy
includes ILO, World Bank, DFID (UK), Swiss Development Agency and ATI (USA). |
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Name : |
Mr. K. Ragunathan |
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Designation : |
Non-executive Director |
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Profile : |
Mr. K. Ragunathan, born 1963 Non-executive Director, he is a
Chartered Accountant by profession and a leading management consultant. He
has over 24 years of experience in consulting services. |
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Name : |
Mr. P. Sarath Chandra
Reddy |
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Designation : |
Non Executive Director |
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Profile : |
Mr. P. Sarath Chandra
Reddy, born 1985
Non-executive Director, he is a graduate in Business Administration. He is a
second generation entrepreneur and has established his business acumen after he
took over the management of Trident Life Sciences Limited, as Managing
Director in 2005. He has gained experience in general management and
expertise in project executions. |
KEY EXECUTIVES
|
Name : |
Mr. Sudhir B Singhi |
|
Designation : |
Chief Financial Officer |
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Name : |
Mr. A. Mohan Rami Reddy |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding
of Promoter and Promoter Group |
|
|
|
Indian |
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|
Individuals/Hindu Undivided Family |
29990150 |
51.51 |
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Bodies Corporate |
1681749 |
2.89 |
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Public shareholding |
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Institutions |
|
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Mutual Funds/ Axis |
2688292 |
4.62 |
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Financial Institutions/Banks |
1394278 |
2.39 |
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Insurance Companies |
1404984 |
2.41 |
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Foreign Institutional Investors |
15355615 |
26.37 |
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Non-institutions |
|
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Bodies Corporate |
1780719 |
3.06 |
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Individuals |
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i. Individual shareholders holding nominal share capital
up to Rs.0.100 Million |
3324302 |
5.71 |
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ii. Individual shareholders holding nominal share
capital in excess of Rs.0.100 Million |
260130 |
0.45 |
|
|
|
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Others |
344039 |
0.59 |
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Non Residents Indians |
196719 |
0.34 |
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Clearing Members |
64257 |
0.11 |
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Foreign Bodies |
68635 |
0.12 |
|
Trusts |
14428 |
0.02 |
|
Sub Total |
5709190 |
9.81 |
|
Total Public Shareholding |
26552359 |
45.60 |
|
TOTAL |
58224258 |
100.00 |
|
Shares held by Custodians and against which Depository
Receipts have been issued |
-- |
-- |
|
TOTAL |
58224258 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Bulk Drugs, Formulations, Tablets and
Capsules, Syrups and Injectables. |
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Products : |
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Imports : |
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Countries : |
Europe and |
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Terms : |
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Purchasing : |
L/C, D/A or D/P |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk Drugs and Drug Intermediates |
Tonnes |
12254 |
8411 |
|
Formulations Tablets and Capsules |
Nos. (in lakhs) |
136024 |
62075 |
|
Injectibles |
Nos. |
91720000 |
29520736 |
|
Syrups |
Nos. |
46853000 |
11135594 |
Notes:
a. Licensed
capacities not stated in view of abolition of industrial licensing for all of the
above Bulk Pharmaceutical Substances (including intermediates) and Dosage Forms
vide Notification No.F.No.10(11)/92-LP dated October 25, 1994 issued by the
Government of India.
b. The capacity
mentioned above is annual capacity based on maximum utilisation of plant and
machinery. Based on product mix, the quantity of installed capacity may vary.
c. The annual
installed capacities are as certified by management and not verified by the
Auditors, being a technical matter.
d. Production includes quantities processed by loan licensees.
GENERAL INFORMATION
|
Suppliers : |
·
Helm AG, ·
·
·
Voest – Alpine Intertrading · Siber Henger, Hongkong ·
Indukern Chemie AG, ·
Chemica E Farmaceutica SPA, ·
Deriva Dos Deretil S. A., · Lisa Ampoules and Vials Private Limited ·
· Polomon Instruments Private Limited · Plastic Shapers · Rolon Seals · Forbes Marshall Hyd Limited · Global Electronics · Fine Fabs Private Limited ·
Paper Pack Industries ·
Khemas Engineers ·
Forbes Marshall (Hyd) Limited ·
Polymer House ·
MSN Laboratories Limited ·
Maithri Laboratories Private Limited ·
Anu’s Laboratories Limited ·
Lance Engineering ·
Virupaksha Organics ·
Siflon Polymers ·
Mahidhara Chemicals ·
Lakshmi Engineering Industries ·
Ashrea Clean Room Presentations Private
Limited ·
Fine Fabs Private Limited ·
Radiant Engineers ·
Sreenex Machines Private Limited ·
Sreepathi Pharmaceuticals Limited ·
Sree Krishnaprasad Graphics Private Limited ·
Coral Drugs Limited |
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Customers : |
· Ranit Pharma Limited · Vamsi Organics Private Limited · Sharp Organics Private Limited · Champion Industries Corporation · Global Electronics · LG Thermoflo Systems Private Limited · Lakshmi Engineering Enterprises ·
· Southern Plantiaids Private Limited · Vaiktro Enterprises ·
· Lisa Ampoules and Vials Private Limited · Sree Krishna Prasad Graphic Private Limited ·
Citadel Aurobindo Biotech Limited |
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No. of Employees : |
8066 |
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Bankers : |
·
Andhra Bank ·
Canara Bank ·
HDFC Bank Limited ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Standard Chartered Bank ·
State Bank of ·
State Bank of ·
Bank of ·
Bank of ·
Central Bank of ·
Citi Bank NA ·
HSBC Bank Limited ·
Punjab National Bank ·
American Express Bank ·
Corporation Bank ·
Indian Overseas Bank ·
Societe Generale Bank ·
State Bank of ·
Indusind Bank Limited ·
State Bank of ·
UCO Bank ·
Bank of ·
Allahabad Bank ·
United Bank of ·
Bank of ·
Deustche Bank AG ·
Union Bank of ·
Kotak Mahindra Bank ·
Bank of ·
ABN Amro Bank NV |
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Facilities : |
Notes: i. Sales tax
deferral repayable within one year – Rs.3.400 millions. |
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Banking
Relations : |
Good |
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Auditors : |
Statutory
Auditors S R Batliboi and Company Chartered Accountants 205, Ashoka Bhoopal Chambers, Internal
Auditors K. Nagaraju and Associate Chartered Accountants 1-8-197, Chikkadpally, |
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Subsidiary : |
1. APL Pharma Thai Limited, 2. ALL Pharma ( 3. Aurobindo Pharma USA Inc., 4. Aurobindo Pharma Industria Farmaceutica Ltda, 5. Aurobindo ( 6. Helix Healthcare B.V., The 7. APL Holdings (Jersey) Limited, 8. Aurobindo Pharma Produtos Farmaceuticos Ltda, 9. APL Healthcare Limited, 10. APL Research Centre Limited, 11. Aurex Generics Limited, 12. Auro Pharma Inc., 13. Zao Aurobindo Pharma, 14. Aurobindo Pharma (Pty) Limited, 15. Aurobindo Pharma ( 16. Agile Pharma B.V., The 17. Aurobindo Pharma 18. Aurobindo Switzerland AG, 19. Auro Healthcare ( 20. Aurobindo ILAC Sanayi ve Ticaret Limited, Sirketi 21. Aurobindo Pharma 22. Pharmacin B.V., The 23. Aurobindo Pharma 24. Aurobindo Pharma ( 25. Aurobindo Pharma ApS, 26. Sia Aurobindo Baltics, 27. Aurobindo Pharma ( 28. Aurobindo Pharma 29. Laboratorios Aurobindo S L, 30. Agile Malta Holdings Limited, 31. Aurobindo Pharma ( 32. Aurobindo Pharma (Italia) 33. Agile Pharma ( 34. Aurobindo Pharma ( 35. APL IP Company Limited, 36. APL Swift Services ( 37. Milpharm Limited, 38. Aurolife Pharma LLC, 39. Auronext Pharma Private Limited, 40. Trident Life Sciences Limited, *Amalgamated with the Company with effect from October 1, 2009. |
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Joint Ventures : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
132000000 |
Equity Shares |
Rs.5/- each |
Rs.660.000 Millions |
|
1000000 |
Preference Shares |
Rs.100/-each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.760.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
55728837 |
Equity Shares |
Rs.5/- each |
Rs.278.600 millions |
|
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|
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|
Notes:
i. Paid-up Equity
Shares of the Company include 34,703,200 Equity Shares of Rs.5 each that were
allotted as bonus shares by capitalization of Securities Premium Account.
ii. Paid-up Equity
Shares of the Company also include 1,341,000 Equity Shares of Rs.5 each that
were allotted for consideration other than cash.
iii. Pursuant to a
scheme of amalgamation of erstwhile Trident Life Sciences Limited with the
Company, the authorized equity share capital of Trident Life Sciences Limited
has got merged with the authorized equity share capital of the Company.
iv. The Equity
Shares allotted during the year represent increase on account of conversion of
Foreign Currency Convertible Bonds and employee stock options into Equity
Shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
278.600 |
268.800 |
268.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
18865.000 |
12939.500 |
11937.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
19143.600 |
13208.300 |
12206.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7022.500 |
8130.200 |
5818.700 |
|
|
2] Unsecured Loans |
12425.300 |
13016.600 |
11737.800 |
|
|
TOTAL BORROWING |
19447.800 |
21146.800 |
17556.500 |
|
|
DEFERRED TAX LIABILITIES |
950.700 |
784.000 |
724.600 |
|
|
|
|
|
|
|
|
TOTAL |
39542.100 |
35139.100 |
30487.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10453.400 |
8728.700 |
8270.800 |
|
|
Capital work-in-progress |
4994.700 |
2859.600 |
1246.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
3709.100 |
2694.100 |
2879.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
9448.200
|
7355.200
|
6512.300
|
|
|
Sundry Debtors |
11513.500
|
11056.700
|
7989.700
|
|
|
Cash & Bank Balances |
45.600
|
869.400
|
2393.200
|
|
|
Other Current Assets |
46.500
|
174.600
|
0.800
|
|
|
Loans & Advances |
5729.800
|
6604.100
|
5651.200
|
|
Total
Current Assets |
26783.600
|
26060.000 |
22547.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5142.700
|
|
4140.200
|
|
|
Other Current Liabilities |
945.600
|
827.800 |
|
|
|
Provisions |
310.400
|
224.400
|
317.100
|
|
Total
Current Liabilities |
6398.700
|
5203.300 |
4457.300 |
|
|
Net Current Assets |
20384.900
|
20856.700
|
18089.900
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39542.100 |
35139.100 |
30487.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
32522.700 |
27948.300 |
22928.900 |
|
|
|
Other Income |
1083.800 |
56.200 |
599.100 |
|
|
|
TOTAL (A) |
33606.500 |
28004.500 |
23528.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase) in work in progress and finished goods |
(1474.800) |
(289.400) |
(311.800) |
|
|
|
Materials Consumed |
18777.500 |
16416.300 |
13754.600 |
|
|
|
Purchase of trading goods |
193.600 |
94.700 |
117.800 |
|
|
|
Other Manufacturing Expenses |
3185.700 |
2725.000 |
2497.300 |
|
|
|
Employee costs |
2326.200 |
1771.800 |
1487.000 |
|
|
|
Administrative, selling and other expenses |
2018.900 |
4341.000 |
1627.600 |
|
|
|
TOTAL (B) |
25027.100 |
25059.400 |
19172.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8579.400 |
2945.100 |
4355.500 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST &
FINANCIAL EXPENSES (D) |
523.300 |
550.600 |
161.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8056.100 |
2394.500 |
4194.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
954.600 |
824.100 |
746.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7101.500 |
1570.400 |
3448.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1843.900 |
285.000 |
540.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5257.600 |
1285.400 |
2907.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6493.200 |
5619.400 |
3207.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
On Equity Shares
of Rs.5 each Proposed dividend @ Rs.2 |
111.500 |
80.700 |
175.700 |
|
|
|
Interim dividend paid @ Rs.3 |
165.900 |
161.300 |
0.000 |
|
|
|
Tax on dividend |
46.700 |
41.100 |
29.800 |
|
|
|
Transfer to General Reserve |
525.800 |
128.500 |
290.800 |
|
|
BALANCE CARRIED
TO THE B/S |
10900.900 |
6493.200 |
5619.400 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
20863.700 |
17466.500 |
13395.000 |
|
|
|
Other Earnings |
1258.800 |
1003.800 |
982.900 |
|
|
TOTAL EARNINGS |
22122.500 |
18470.300 |
14377.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and packing materials |
12290.100 |
11976.300 |
9945.200 |
|
|
|
Capital Goods |
770.200 |
682.500 |
193.800 |
|
|
|
Stores, Spares and Consumables |
227.600 |
107.400 |
121.600 |
|
|
|
Others |
0.000 |
0.000 |
116.600 |
|
|
TOTAL IMPORTS |
13287.900 |
12766.200 |
10377.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
-
Basic |
97.09 |
23.91 |
54.20 |
|
|
|
-
Diluted |
83.16 |
19.86 |
43.10 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Net Sales |
|
8675.100 |
10504.300 |
|
Total Expenditure |
|
7410.800 |
7831.200 |
|
PBIDT (Excl OI) |
|
1264.300 |
2673.100 |
|
Other Income |
|
13.000 |
661.200 |
|
Operating Profit |
|
1277.300 |
3334.300 |
|
Interest |
|
90.900 |
157.100 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
1186.400 |
3177.200 |
|
Depreciation |
|
273.900 |
314.500 |
|
Profit Before Tax |
|
912.500 |
2862.700 |
|
Tax |
|
279.100 |
722.400 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
633.400 |
2140.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
15.64
|
4.59 |
12.36
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.84
|
5.62 |
15.04
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
19.07
|
4.51 |
11.19
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.12 |
0.28
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.35
|
1.80 |
1.80
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.19
|
5.01 |
5.06
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, one of the world's top 5 manufacturers of semi synthetic
penicillins was incorporated in 26th December of the year 1986 as a private limited
company. Mr. P.V. Ramaprasad Reddy, Mr. K. Nityananda Reddy and a small, highly
committed group of professionals founded it. Subject is developing,
manufacturing and marketing active pharmaceutical ingredients (APIs also
referred as bulk actives), intermediates and generic formulations. The
company's robust product portfolio is spread over 6 major product areas
encompassing (Antibiotics, Anti-Retro Virals, CVS, CNS, Gastroenterologicals,
and Anti-Allergics) with around 65 APIs in the non-antibiotics and over 55 APIs
in the antibiotic segment and the World Health Organization (WHO), Geneva, has
also approved Aurobindo's products. Subject is running with 14 manufacturing
plants across the world conforming to GMP / ISO regulations and an extremely
well equipped R and D facility. Aurobindo Pharma has identified international
operations also, catering to over 100 countries. The Company has accelerated
the DMF/ANDA filings programme in its efforts to build a broad product
portfolio for the regulated markets. Cumulatively, the Company has filed a
total of 337 DMFs (Drug Master Files), of which 110 are with US FDA, and 133 in
FINANCIAL HIGHLIGHTS
The Company achieved all-time high revenues, operating income, EBITDA, operating profit before tax and profit after tax. New highs were also recorded in several other parameters such as volume sold and Earnings per Share, while the Company became long-term debt free and holds its net assets free of all encumbrances.
The gratifying part of the performance was the accomplishment in a year which saw recessionary conditions in several countries, where the Company has a presence, at a time of high volatility in raw material prices and exchange rate. The revenues at Rs.33196 million for the year was higher by 15% over Rs.28852.5 million reported in 2008-09. Volume sold was higher year-on-year and more significantly, with higher average realization per product sold.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) excluding foreign exchange adjustments was Rs.7723.6 million in 2009-10 higher by 47.9% over Rs.5223.3 million earned in 2008-09. EBITDA margin excluding foreign exchange adjustments was 23.3% in the year compared to 18.1% in the previous year. It is relevant to mention that the Company had an exchange gain of Rs.855.8 million during the year, while there was a foreign exchange fluctuation loss of Rs.2278.2 million in 2008-09. Profit after Tax after exceptional items was Rs.5257.6 million during the year, a significant improvement over Rs.1285.4 million reported in 2008-09. The diluted Earnings per Share for the year is hence Rs.83.16 as compared to Rs.19.86 for the previous year.
REVIEW OF OPERATIONS
In the face of global recessionary conditions and the consequent severe competitive pressures, the Company strengthened its presence in all its geographies and improved its marketing reach. The expanded product portfolio and the investments made to augment manufacturing capacities were leveraged to gain market share, strengthen distribution channels and build further on the existing relationships with customers.
Formulations sales (Consolidated) during the year were up by 32.6% to Rs.18520 million from Rs.13971 million in 2008-09. Formulations sales constituted 53.6% of gross sales, while it accounted for 46.2% in the previous year.
As in the earlier years, the Company continued to pursue newer product offerings to respond to market needs. While Aurobindo has a presence in several therapeutic segments in the formulations business, the focus has been to increase the offerings in six segments in all the addressable markets, both in the premium and emerging markets. In order to ensure a sustainable growth, the product pipelines were further expanded by filing 22 more ANDAs covering both Indian and US facilities. The Company has a mutually rewarding relationship with all its multinational customers including some of the best pharmaceutical majors across the globe and strives to meet their exacting demands. Volume sales have been rising and the Company has been working to keep to their expectations, especially quality and timelines.
Manufacturing capacity stands optimized with the commissioning
of the Unit VII (SEZ) at Jedcherla as well as debottlenecking at other units.
The manufacturing facility at
There has been improvement in efficiencies, increase in power generation and moderate increase in operating margins. While productivity and yields have increased, focused efforts are being made to improve on the key parameters at the manufacturing units.
EVENTS AFTER THE BALANCE SHEET DATE
As Members are aware, the Company in 2006 had issued 60,000 Zero Coupon Foreign Currency Convertible Bonds (bonds) due in 2010 of $ 1,000 each on the following terms:
_ either convertible by the holders at any time on or after September 20, 2005 but prior to close of business on August 1, 2010. Each bond will be converted into 83.12 fully paid up equity share with par value of `5 per share at a fixed price of Rs.522.036 per share at a fixed exchange rate conversion of Rs.43.3925 = $ 1; or
_ redeemable in whole but not in part at the option of the Company at any time on or after February 25, 2008 and on or prior to August 1, 2010 as per the terms and conditions of the bonds mentioned in the Offering Circular;
_ redeemable on maturity date at 139.954% of its principal amount if not redeemed or converted earlier.
The bonds have been since determined and crystallized and all except 2,118 bonds of $ 1,000 each have been converted/ repurchased. The balance bonds are due for repayment as per the terms of the Offering Circular.
OUTLOOK
Going ahead, the Company will continue to focus on higher capacity utilization and augmenting the existing large portfolio of generic products. The marketing plans are also tailored to becoming more geographically diversified in the emerging markets and deepen the presence in the premium markets in order to have a more balanced and derisked growth.
The Company is well-positioned for the long term with its proven business strategy that has withstood the challenges of global economic environment, regulatory compliant product basket, sound financials and dedicated team of people working together to achieve superior results.
However, in the recent past, raw material prices have tended to rise leading to cost push and supply-demand mismatch. The Company is cognizant of such challenges and is geared to face them. Aurobindo's vertically integrated manufacturing facilities enable producing and delivering on due dates as well as managing margin pressures.
In order to ensure sourcing reliability and provide for growth requirements, the Company will continue to invest in manufacturing systems and add to capacity of both intermediates and active ingredients. Similarly, investment will continue to be made to add to product pipeline as well launch products soon after they are approved by regulatory authorities. Today, the Company is managed by competent and experienced people and initiatives are being taken to add to resources, equip them for present and future needs and enable them to face the challenges of a high energy organization on a fast track.
In the ultimate analysis, the Company will maintain its momentum to grow sustainably and reach the stated objective of $ 2 billion revenues by 2012-13.
BOARD OF DIRECTORS:
Mr. P.V. RAMPRASAD REDDY, born 1958
Chairman of the Board and a promoter of the Company. He is a postgraduate in Commerce and prior to promoting Aurobindo Pharma in 1986, he held management positions in various pharmaceutical companies. He leads the strategic planning of the Company and pilots the successful implementation of the Company's ventures.
In 2008 the widely read, World Pharmaceutical Frontiers, announced he is among the top 35 most influential people in the pharmaceutical industry.
Mr. K. NITHYANANDA REDDY, born 1958
Managing Director and a promoter of the Company. He holds a Masters Degree in Science (Organic Chemistry) and has been associated with the Company from the initial days. He is versatile with the manufacturing technology and supervises the overall affairs of the Company.
Dr. M. SIVAKUMARAN, born 1943
Whole-time Director, he holds a Masters Degree in Science and has been awarded PhD in Organic Chemistry. He has about 37 years of experience in the pharmaceutical industry and is responsible for the technological evolution of the Company. He looks after research and development, new product development and total quality management.
Mr. M. MADAN MOHAN REDDY, born 1960
Whole-time Director, he has a Masters Degree in Science (Organic Chemistry) and has held top managerial positions in leading pharmaceutical companies. He commands valuable experience in regulatory affairs of the industry. Earlier, he was the Managing Director of Sri Chakra Remedies Limited. He looks after formulations manufacturing.
Dr. K. RAMACHANDRAN, born 1955
Non-Executive Director, was awarded PhD by the Cranfield School of Management, U.K. Since 1986, he has been teaching in IIM, Ahmedabad/Indian School of Business, Hyderabad and his strong areas of knowledge include entrepreneur opportunities, growth strategies, resource management, innovation, corporate entrepreneurship, new enterprise management, venture capital industry, and family business and SME policies. He has been a consultant to a number of Indian and international organisations on entrepreneurship and strategy. His international consultancy includes ILO, World Bank, DFID (UK), Swiss Development Agency and ATI (USA).
Dr. P.L. SANJEEV REDDY, born 1940
Non-Executive Director, after his Masters in Economics, did
postgraduate Diploma in Development of Studies from the
Mr. M. SITARAMA MURTHY, born 1943
Non-Executive Director, did his Masters in Electronics. He
is professionally qualified banker. He has over three decades of experience as
a banker and has held various positions in nationalised banks and retired as
Managing Director and CEO of State Bank of
His specialised areas of interest are international banking, foreign exchange, money markets, funds management, credit management, rural development, computerisation, commercial law and systems and procedures. He has authored several books on banking systems and contributes regular articles to financial magazines/newspapers.
Mr. P. SARATH CHANDRA REDDY, born 1985
Non-Executive Director, he is a graduate in Business Administration. He is a second generation entrepreneur and has established his business acumen after he took over the management of Trident Life Sciences Limited (since merged with the Company), as Managing Director in 2005. Presently, he is the Managing Director of Axis Clinicals Limited. He has gained experience in general management and expertise in project executions.
Mr. K. RAGUNATHAN, born 1963
Non-Executive Director, he is a Chartered Accountant by profession and a leading management consultant. He has over 26 years of experience in consulting services.
Dr. D. RAJAGOPALA REDDY, born 1959
Non-Executive Director, holds Master's Degree in Science and has been awarded a PhD in Organic Chemistry. He has 26 years of experience in the pharmaceutical industry and is the Chairman and Managing Director of Erithro Pharma Private Limited.
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic background
The year 2009-10 was a year of resurgence of confidence and optimism in the Indian economy. The broader economy managed the global financial turbulence fairly well and demonstrated its inherent strength and growth potential. After a mild setback, the domestic economy promises a period of sustained growth driven by the robust fundamentals. The economy's strength has highlighted the systemic strengths especially of the Indian banking system, capabilities of the workforce, entrepreneurial skills and reliable agricultural, industrial and service sectors.
At a time when the US and European economies showed the sensitivities, a reliable Indian pharmaceutical industry stands further energized to meet the needs of both the developed and emerging markets. The challenges of the global markets have worked as additional opportunities for Indian manufacturers and the opportunities have been seized by almost all the major players in the country.
Industry perspective
The pharmaceutical industry is one of the success stories of
The industry is an intellectual industry and is in the front
rank of
According to data published by the Department of
Pharmaceuticals, Ministry of Chemicals and Fertilizers, total turnover of
According to an Ernst and Young and an industry body study
released in September 2009, the increasing population of the higher income
group in the country will by 2015 open a potential $ 8 billion market. Besides,
the report said the domestic pharma market is likely to touch $ 20 billion by
2015, making
The accelerated growth over the years has been fuelled by
exports to more than 200 countries with a sizeable share in the advanced
regulated markets of US and
Pharmaceutical industry in
The industry has made significant progress in creation of required infrastructure, meeting global needs for supply of quality medicines and active pharmaceutical ingredients (APIs), as also entering into the highly opportune area of contract research and manufacturing (CRAM) and clinical trials.
Export of pharmaceutical products from
According to a report published by PricewaterhouseCoopers
(PwC) in April 2010,
The sector is estimated to have so far created 4.2 million employment opportunities with more than 20,000 registered units. Despite the fragmentation and price competition, the leading 250 pharmaceutical companies control 70% of the market with the leader holding nearly 7% of the market share.
While pharmaceutical products are exported primarily to
Generics - an intro
A generic drug product is one that is comparable to an
innovator drug product in dosage form, strength, route of administration,
quality, performance characteristics and intended use. In
The generics business, characterized by volume sales and thin profit margins, was not an attractive business proposition for most innovator companies until a few years ago. Innovator multinational companies worried over plummeting profits and business due to the dwindling new drug pipeline and existing drugs going off-patent in the near future, are looking at containing costs and additional revenue streams.
Indian pharmaceutical industry has shown significant
progress in terms of infrastructure development, technology base creation and a
wide range of production, covering almost all therapeutic categories and dosage
forms. This fact is firmly demonstrated by the trends in global exports of
pharmaceuticals from
Global pharmaceutical market intelligence company IMS Health believes the Indian generic manufacturers will grow at a faster clip as drugs worth approximately $ 20 bn in annual sales will face patent expiry in 2011. In fact, with nearly $ 105 bn worth of patent-protected drugs to go off-patent (including 30 of the best selling US patent-protected drugs) by 2012, Indian generic manufacturers are positioning themselves to offer generic versions of these drugs.
Also, there is global shift towards use of generics as
governments worldwide are under tremendous pressure to curtail steeply
escalating healthcare budgets. Consequently, the generics industry in
Indian pharmaceutical companies with their reverse-engineering expertise, significant investment in research facilities and availability of skilled manpower are favorably placed in the global generic market.
Already, Indian drug companies account for over 25% of the total generic drug applications made to the US FDA, which accounts for over half of the $ 60 bn market. The US FDA's latest generic initiative GIVE (Generic Initiative for Value and Efficiency) aimed at increasing the number and variety of generic medicines available to consumers and healthcare providers. Having more generic-drug options means more cost-savings to consumers, as generic drugs cost about 30% to 80% less than brand name drugs and is expected to further fuel the export plans of Indian pharmaceutical companies.
In order to seek approval from regulatory authorities, generic applicants must scientifically demonstrate that their product is bioequivalent (i.e., performs in the same manner as the innovator drug). One way scientists demonstrate bioequivalence is to measure the time it takes the generic drug to reach the bloodstream in 24 to 36 healthy volunteers. This gives them the rate of absorption, or bioavailability, of the generic drug, which they can then compare to that of the innovator drug. The generic version must deliver the same amount of active ingredients into a patient's bloodstream in the same amount of time as the innovator drug.
Generic drug applications are termed "abbreviated" because they are generally not required to include preclinical (animal) and clinical (human) data to establish safety and effectiveness. In USA, bioequivalence as the basis for approving generic copies of drug products was established by the 'Drug Price Competition and Patent Term Restoration Act, 1984' also known as the Waxman-Hatch Act. This Act expedites the availability of less costly generic drugs by permitting FDA to approve applications to market generic versions of brand-name drugs without conducting costly and duplicative clinical trials. At the same time, the brand-name companies can apply for up to five additional years longer patent protection for the new medicines they developed to make up for time lost while their products were going through FDA's approval process. Brand-name drugs are subject to the same bioequivalence tests as generics upon reformulation.
CRAMS in brief
Contract research and manufacturing services (CRAMS) has
become a promising medium for the Indian pharma industry, with
Contract research, including both drug discovery research
and clinical research, has been growing at a phenomenal rate. While clinical
trials represent 65% of this market, new drug discovery makes up the remaining
35%. Indian companies are playing an important role in early drug discovery
processes due to their substantial experience in the field of generic drugs
with
The global market for contract manufacturing of prescription
drugs is estimated to increase from a value of $ 26.2 billion to $ 43.9
billion.
Frost and Sullivan estimates outsourced contract research in
Established generic companies would like to outsource or buy
services in formulation development, bioequivalence testing, stability studies
centers, etc .
Company
Perspective
Aurobindo's
commitment to create good health, manufacture and deliver high-end quality products
and be a value creator for its stakeholders acts as a constant driver for
improvement. This high energy pharmaceutical company has a passion to succeed
in the most competitive markets.
The Company
straddles key strategies from fermentation to formulation and is one of the
most cost effective producers in the world. Vertically integrated manufacturing
process and captive raw material source makes an impact in product marketing.
Ability to control quality and power to price has helped Aurobindo to offer
quality pharmaceuticals at affordable prices.
The investments
made in the past are paying off. The Company had built large manufacturing
capacities for both active ingredients and formulations, created a substantial
pipeline of approved products and undertaken development work in the market to
launch them. Aurobindo's core competence in manufacturing, cost effectiveness
and quality consciousness have been supplemented by the geographical reach and
marketing channels. Aurobindo was able to deliver better than the earlier
years, and now has a platform for aggressive and successful product launches.
As in the past,
the financial year 2009-10 saw higher volume sales year-on-year as well as
higher revenues. Formulation sales in revenue terms were higher by 33.8% over
the previous year, which is a significant growth given that there was a 41.7%
and 48.1% rise in the immediately two preceding years.
The volume sold
was also higher primarily because of the focused marketing efforts, larger
geographical presence and a large approved product portfolio. Aurobindo has
been able to gain visibility in key markets and ramp up volume shares for large
runners in the formulations market.
However, the
volatility of currencies and uncertain economic environment resulted in
exchange fluctuation gain of Rs.855.8 million while there was a loss of
Rs.2278.2 million in the previous year.
Aurobindo has
invested in the future and worked hard to build a large portfolio and sought
product approvals in all relevant categories. Necessary approvals have been
received at rapid pace, and the Company will continue to keep the momentum and
seek such product approvals, and when received shall make suitable marketing
arrangements.
Contract research
and contract manufacturing (CRAMS) are other areas that are being pursued.
These are potentially attractive businesses with possible long term
relationships. With the technology platform and skilled professionals available
both at R and D Centre and in the production facilities, Aurobindo is able to
offer products and services that the customers want. Multinational
pharmaceutical companies have perceived Aurobindo's facilities as extensions of
their own labs and manufacturing plants.
Across the
organization, there is an excitement driving the change to become a global
resource in the pharmaceutical industry. In this journey, as in the past, care
is being taken to create value for all stakeholders, and in particular,
customers and investors.
Outlook
Aurobindo has a proven and tested business model, a prudent strategy and competent people with expertise to deliver planned results. There is a strong balance sheet that supports the business plan. The professionals in the Company have a defining role in significantly accelerating its growth and transformation, and enhancing its position as one of the most valuable companies.
Key strengths of the Company include its manufacturing infrastructure, the knowledge base at the research centres and the ability to deal successfully with its process chemistry strengths. All the strengths have been tested from the perspective plan to manufacturing plant and later in the market place. There is a powerful marketing infrastructure backed up by state-of the- art manufacturing systems that are driving the business. Looking ahead, Aurobindo is determined to create a significant market presence and offer quality products and services, to meet both customer and stakeholder expectations.
CREDIT RATING
Fitch Ratings has upgraded
and assigned a National Long Term Issuer rating of 'AA-(
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2010 (Rs.
In Millions) |
|
Outstanding bank guarantees |
244.800 |
|
Bills discounted with banks |
-- |
|
Claims arising
from disputes relating to direct and indirect taxes not acknowledged as debts |
217.500 |
|
Dossier sales with refund clause |
1095.600 |
|
Claims against the Company not acknowledged as debts |
4.900 |
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE, 2010
|
Particulars |
Standalone First Quarter Ended 30.06.2010 (Unaudited) |
|
Sales (including excise duty) &
operating income |
8865.700 |
|
Less: Excise Duty |
190.600 |
|
Net Sales |
8675.100 |
|
Expenditure |
|
|
a. (Increase)/Decrease in Stock |
86.300 |
|
b. Material Consumed |
4685.900 |
|
c. Purchase of traded goods |
11.600 |
|
d. Staff Cost |
690.200 |
|
e. Depreciation/Amortisation |
273.900 |
|
f. Other Expenditure |
1486.600 |
|
Total Expenditure |
7234.500 |
|
Profit from Operations before Other
Income, interest, tax and exceptional income |
1440.600 |
|
Other Income |
13.000 |
|
Profit before interest, tax and
exceptional item |
1453.600 |
|
Interest (net) |
90.900 |
|
Foreign Exchange (Gain)/Loss (net) |
450.200 |
|
Profit from Ordinary Activities before tax
and exceptional item |
912.500 |
|
Provision for Taxation |
279.100 |
|
Profit before Exceptional item &
Minority Interest |
633.400 |
|
Exceptional item (Net of tax) |
- |
|
Profit before Minority Interest |
633.400 |
|
Minority Interest |
- |
|
Net Profit for the period |
633.400 |
|
Paid-up Equity Share Capital (Face value Rs.
5 per share) |
282.300 |
|
Reserves excluding Revaluation Reserve |
|
|
Basic Earnings per share before &
after Extraordinary items (Rs.) (not annualised) |
11.30 |
|
Diluted Earnings per share before &
after Extraordinary items (Rs.) (not annualised) |
9.80 |
|
Public Shareholding |
|
|
- Number of Shares |
24752318 |
|
- Percentage of Shareholding |
43.85 |
|
Promoters and promoter group Shareholding |
|
|
a) Pledged/Encumbered |
|
|
- Number of Shares |
6242721 |
|
- Percentage of Shares (as a % of the total
shareholding of promoter & promoter group) |
19.69 |
|
- Percentage of Shares (as a % of the
total share capital of the company) |
11.06 |
|
b) Non-encumbered |
|
|
- Number of Shares |
25458118 |
|
- Percentage of Shares (as a % of the
total shareholding of promoter & promoter group) |
80.31 |
|
- Percentage of Shares (as a % of the
total share capital of the company) |
45.09 |
Notes:
1. The above unaudited financial results were reviewed by the Audit Committee and have been approved by the Board at its meeting held on August 5, 2010. A Limited Review of the above stand alone financial results has been carried out by the Statutory Auditors.
2. The Consolidated financial results, which are optional, have been presented by the Company, so as to provide additional information.
3. The consolidated financial results have been prepared in accordance with AS - 21 on 'Consolidated Financial Statement', AS-27 'Financial Reporting of Interests in Joint Ventures' and includes financial results of all subsidiaries and Joint Ventures.
4. The Company's operations fall within a single primary business segment viz. 'Pharmaceutical Products'.
5. Investor complaints pending at the beginning of the quarter: Nil, received: 43, resolved: 43 and lying unresolved at the end of the quarter Nil.
6. Sales for the quarter include exports of Rs. 6307.800 millions.
7. Sales include Dossier income in standalone of Rs.303.100 millions and in consolidated of Rs.386.800 millions.
8. Foreign Exchange (Gain)/Loss represents exchange differences arising on all foreign currency transactions. This includes net loss during the quarter due to restatement of Foreign Currency Convertible Bonds (net of Deposits) Rs.237.600 millions (gain of Rs.530.200 millions).
9. The paid up share capital of the Company has increased during April-June 2010 to Rs. 282.266 millions as a result of allotment of 7,24,320 Equity Shares of Rs. 5 each for cash at premium of Rs.517.036 upon request received for conversion of FCCBs worth USD 8.714 Millions, out of USD 60 Million issue in terms of the offer document. 17,41,394 Equity shares were similarly allotted during July- August 2010 by conversion of FCCBs worth USD 20.95 Millions, out of USD 60 Million issue. Further, 27,007 Equity Shares of Rs. 5 each at a premium of Rs. 357.60 per share were allotted under ESOP 2004 Scheme by the Compensation Committee of the Company at their meeting held on July 19, 2010. Accordingly, as on date the paid up share capital of the Company has increased to Rs. 291.108 millions.
10. In respect of matter referred to in the auditors' review report for the quarter ended June 30, 2010 in relation to non-provision of premium on redemption of 139,200 Zero Coupon Foreign Currency Convertible Bonds (FCCBs) of USD 1000 each, the management is of the view that it is contingent in nature, as determination and crystallization of liabilities is dependent on uncertain future events or actions, not wholly within the control of the Company.
11. Zao Express
Pharma (formerly Zao Aurobindo Pharma),
12. The National
Long-term Fitch Rating of the Company has been upgraded in July 2010 to 'AA-(
13. Figures for the previous periods have been rearranged/ regrouped wherever necessary.
Fixed Assets:
Tangible Assets:
·
·
·
Leasehold Buildings
·
Freehold Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicles
Intangible Assets:
·
Product Development
·
Licenses
WEBSITE DETAILS
COMPANY PROFILE
Subject was born of a vision. Founded in 1986 by Mr. P. V. Ramaprasad
Reddy, Mr. K. Nityananda Reddy and a small, highly committed group of
professionals, the company became a public venture in 1992. It commenced
operations in 1988-89 with a single unit manufacturing semi synthetic
penicillins (SSPs) at
Subject had gone public in 1995 by listing its shares in various stock
exchanges in the country. The company is the market leader in semi-synthetic
penicillin drugs. It has a presence in key therapeutic segments like SSPs,
cephalosporins, antivirals, CNS, cardio-vascular, gastroenterology, etc.
Subject has evolved into a knowledge driven company. It is R and D focused, has
a multi-product portfolio with multi-country manufacturing facilities, and is
becoming a marketing conglomerate across the world.
Subject created a name for itself in the manufacture of bulk actives, its area
of core competence. After ensuring a firm foundation of cost effective
production capabilities and a clutch of loyal customers, the company has
entered the high margin speciality generic formulations segment, with a global
marketing network.
The formulation business is systematically organised with a divisional
structure, and has a focused team for each key international market. Company
believes in gaining volume and market share in every business/segment it
enters.
Subject has invested significant resources in building a mega infrastructure
for company’s and formulations to emerge as a vertically integrated pharmaceutical
company. Subject’s five units for APIs and four units for formulations are
designed for the regulated markets.
Press Release:
Aurobindo Pharma Announces Strategic Divestment of Aurobindo (
11th
January 2011
Aurobindo Pharma Ltd (APL) is pleased to announce that it
has entered into a definitive agreement with China National Pharmaceutical
Group Corporation (Sinopharm) to divest in its subsidiary company Aurobindo (
ADBPL is engaged in manufacturing of 6APA, a derivative of
Penicillin-G & most of its production is consumed by APL,
After acquisition of 5l% equity in ADBPL, the investors will further infuse capital to enhance its shareholding to 80.50%, reducing APL share in the iv to 19.5%. APL’s loan of USD 23 Million to ADBPL will entirely be paid back.
Sinopharm group will infuse sufficient funds to relocate
plant as required by local government in
Over the past six years APL has undertaken a paradigm shift from API to Formulations business. Hence, the Board feels that the said divestment is in the best interest of the company. This will strengthen the overall cash flow and operating margins.
About Sinopharm
Group:
China National Pharmaceutical Group (Sinopharm) is the
largest pharmaceutical and healthcare group in
About Aurobindo
Pharma:
Aurobindo Pharma Limited (www.aurobindo.com), headquartered
at
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.45.70 |
|
|
1 |
Rs.72.78 |
|
Euro |
1 |
Rs.61.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.