MIRA
INFORM REPORT
|
Report Date : |
08.06.2011 |
Note:
The Registered Office of the company has been
shifted from 7-1-27,
Ameerpet, Hyderabad – 500 016, Andhra Pradesh, India, to the present address.
IDENTIFICATION DETAILS
|
Name : |
DR. REDDY’S LABORATORIES LIMITED |
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Registered
Office : |
8-2-337, Road No 3, Banjara Hills, Hyderabad -500034, Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
24.02.1984 |
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Com. Reg. No.: |
01-004507 |
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Capital
Investment / Paid-up Capital : |
Rs.844.227 Millions |
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CIN No.: [Company Identification
No.] |
L85195AP1984PLC004507 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDD00080D |
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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
: |
Manufacturers and
Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits. |
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No. of Employees
: |
10,000
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (78) |
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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 230000000 |
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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 an old, well – established and a reputed company engaged in
manufacturing and marketing of pharmaceuticals. The company manufacturers
wide range of pharmaceuticals products in The company can be considered good for normal business dealings under
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
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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 : |
8-2-337, Road No 3, Banjara Hills, Hyderabad -500034, Andhra Pradesh,
India |
|
Tel. No.: |
91-40-23731946/
23731397/ 26511723/ 55511900/ 66511532 |
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Fax No.: |
91-40-23731955/
23734504/ 23739666 |
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E-Mail : |
ssrinivasan@drreddys.com
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Website : |
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Corporate
Office/ Media
Relations: |
Greenlands,
Ameerpet, |
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Tel. No.: |
91-40-23731946/
47/ 48/ 49/ 50/ 66511620 |
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Fax No.: |
91-40-23731955/
66511621 |
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E-Mail : |
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Website : |
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Administrative
Office: |
Generics Survey
No. 41, FTO Unit, 3 Bachupally Ranga Reddy Disc, |
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Custom Pharmaceuticals
Services/ Discovery Research : |
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Tel No.: |
91-40-23043569/
23045439 |
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Fax No.: |
91-40-23044044/
23045438 |
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E-Mail : |
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Plants (In |
Bulk
Drugs – I, II, III and IV · Plot Nos. 137, 138 and 146, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 110 and 111, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot Nos. 116, IDA Bollarum, Jinnaram Mandal, Medak District - 502 320, Andhra Pradesh · Plot No. 9/A, Phase III, IDA Jeedimetla Ranga Reddy District – 500 055, Andhra Pradesh · Bulk Drugs – V Peddadevulapally, Tripuraram Mandal, Nalgonda District – 508207, · Bulk Drugs – VI IDA Pydibheemavaram, Ransthal
Mandal, Srikakulam District – 532409, Andhra Pradesh · Bulk Drugs – IX IDA
Pydibheemavaram, Ransthal Mandal, Srikakularrf Dist, AP 532 409 Formulations ·
I – IDA
Bollaram Jinnaram Mandal, Medak District – 502320, · II- Survey No. 42, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500123, Andhra Pradesh, India · III – R S No. 63/3 and 63/4, Thiruvandarkoil Mannvipet, Pondicherry – 605102, Tamil Nadu, India ·
IV – Ward
– F, Block –4, Adavipolam, Yanam, ·
V – Plot No. A-3 to A-6, Phase 1-A,
Verna Industiral Estate, Verna, ·
VI – Khol, Nalagarh, Solan, Pradesh Generics ·
Survey No. 41, Bachupally Quthbullapur Mandal,
Ranga Reddy District – 500043, Boitech/Critical Care/Diagnostics ·
Survey No.47, Bachupally Quthbullapur Mandal,
Ranga Reddy District – 500043, Custom Chemical Services/Discovery
Research ·
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Plants
(Outside |
§
§
Huangpujiangzhonglu
Kunshan Economic and §
208-214,
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Finished Dosage - Generics: ( |
3600 Arco
Corporate Drive, |
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Tel. No.: |
1-866 733-3952 |
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Finished Dosage - Generics: ( |
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Tel. No.: |
0044 1753 5125 00 |
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Fax No.: |
0044 1753 6966 77 |
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Foundation: |
6-3-655/12,
Somajiguda, |
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Tel. No.: |
91-40-65343424/
23304199/ 1868 |
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Fax No.: |
91-40-23301085 |
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E-Mail : |
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Website : |
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Active
Pharmaceutical Ingredients : |
8-2-120/76/1/B, 2nd Floor, Ashoka Hitec Chambers, Road No.
2, Banjara Hills - 500034, |
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Tel. No.: |
91-40-66470960 |
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Fax No.: |
91-40-23541224 |
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Branded
Finished Dosages : |
Block - III, 5th Floor, White House - Near Lifestyle,
Begumpet, |
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Tel No.: |
91-40-66022500 |
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Business
Development : |
200 Somerset Corporate Blvd. |
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Tel. No.: |
1 908-203-4984 |
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Fax No.: |
1 908-203-4970 |
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E-Mail : |
DIRECTORS
|
Name |
Dr. K. Anji Reddy |
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Designation |
Executive Chairman |
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Qualification |
B. Sc. (Tech.), Ph. D. |
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Date of Joining |
24.02.1984 |
|
Previous Employment |
Managing Director – Standard Organics Limited |
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Other Directorships |
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Name |
Mr. K. Satish Reddy |
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Designation |
Managing Director and Chief Operating Officer |
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Qualification |
B. Tech., M. S. |
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Date of
Joining |
18.01.1993 |
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Previous
Employment |
Director – Globe Organics Limited |
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Other
Directorships |
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Name : |
Dr. P. Satyanarayana Rao |
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Designation : |
Director |
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Name : |
Dr. V. Mohan |
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Designation : |
Director |
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Name : |
Dr. Omkar Goswami |
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Designation : |
Director |
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Date of Appointment : |
21.07.2008 |
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Name : |
Mr. Ravi Bhoothalingam |
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Designation : |
Director |
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Date of Appointment : |
30.10.2000 |
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Name : |
Mr. P.N. Devarajan |
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Designation : |
Director |
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Name : |
Dr. A. Venkateswarlu |
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Designation : |
Director |
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Name : |
Mr. |
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Designation : |
Director |
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Name : |
Mr. Anupam Puri |
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Designation : |
Non – Executive Director |
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Date of Appointment : |
04.06.2002 |
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Name : |
Mr. J P Moreau |
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Designation : |
Director |
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Date of Appointment : |
18.05.2007 |
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Name : |
Mrs. Kalpana Morparia |
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Designation : |
Director |
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Date of Appointment : |
05.06.2007 |
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Name : |
Mr. Bruce L A Carter |
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Designation : |
Additional Director |
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Date of Appointment : |
21.07.2008 |
KEY EXECUTIVES
|
Name |
Mr. V. S. Suresh |
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Designation |
Company Secretary |
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Name |
Mr. K. Satish Reddy |
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Designation |
Chief Operating Officer |
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Qualification |
B. Tech., M. S. |
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Date of
Joining |
18th January, 1993 |
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Previous
Employment |
Director – Globe Organics Limited |
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Other Directorships |
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|
Name |
Mr. G V. Prasad |
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Designation |
Executive Vice Chairman and CEO |
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Date of Appointment : |
08.04.1986 |
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|
Name |
Mr. V. S. Vasudevan |
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Designation |
Chief Financial Officer |
|
Name |
Dr. R. Rajagopalan |
|
Designation |
President |
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|
Name |
Mr. Arun Sawhney |
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Designation |
President |
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Name |
Mr. Abhijit Mukherjee |
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Designation |
President |
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Name |
Mr. K. B. Sankara Rao |
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Designation |
Executive Vice President |
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Name |
Mr. Saumen Chakraborthy |
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Designation |
Executive Vice President |
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Name |
Mr. S. Venkatraman |
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Designation |
Senior Vice President |
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Name |
Mr. Vilas M. Dholye |
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Designation |
Senior Vice President |
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Name |
Mr. Ashwani Kumar Malhotra |
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Designation |
Senior Vice President |
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Name |
Mr. C. V. Narayana Rao |
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Designation |
Vice President |
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Name |
Mr. Ranjan Chakraborthy |
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Designation |
Vice President |
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Name |
Dr. N. R. Srinivas |
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Designation |
Vice President |
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Name |
Dr. Javed Iqbal |
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Designation |
Distinguish Research Scientist |
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Name |
Mr. Jaspal Singh Bajwa |
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Designation |
President |
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Name |
Dr. Jayaram Chigurupati |
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Designation |
Executive Vice President |
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Name |
Dr. G. Om Reddy |
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Designation |
Senior Vice President |
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Name |
Mr. B.R. Reddy |
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Designation |
Senior Vice President |
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Name |
Mr. Arvind Vasudeva |
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Designation |
Vice President |
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Name |
Dr. M. Satyanarayana Reddy |
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Designation |
Vice President |
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|
Name |
Dr. R. Buchi Reddy |
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Designation |
General Manager |
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Name : |
Dr. K. Anji Reddy |
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Designation : |
Executive Chairman |
|
Profile: |
He is the founder
and the Executive Chairman of Dr. Reddy’s Laboratories Limited. He is also
the founder of the Dr. Reddy’s Group, Dr. Reddy’s Research Foundation and Dr.
Reddy’s Foundation for Human and Social Development. He is the chairman of the
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Name : |
Mr. G.V. Prasad |
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Designation : |
Vice Chariman and Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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4289484 |
3.12 |
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|
39128328 |
28.45 |
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(B) Public Shareholding |
|
|
|
|
|
|
|
|
9451542 |
6.87 |
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|
400722 |
0.29 |
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|
13863068 |
10.08 |
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|
43834909 |
31.87 |
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|
|
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|
9290565 |
6.75 |
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|
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|
|
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|
13389602 |
9.73 |
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|
924897 |
0.87 |
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|
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|
216513 |
0.16 |
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|
2750434 |
2.00 |
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|
2500 |
-- |
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|
|
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Total |
169252732 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Sellers of Bulk Drugs, Formulations and Diagnostic Reagents and Kits. |
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Products : |
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Exports : |
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Products : |
API’s Finished Formulations |
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Countries : |
All Countries |
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Imports : |
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Products : |
·
Chemicals ·
Packaging
Materials ·
Packaging
Machinery |
PRODUCTION STATUS (As on
31.03.2008):-
|
Class
of Goods |
Unit |
Actual Production |
|
|
|
|
|
Formulations |
Million Units |
2816 |
|
Active Pharmaceutical ingredients and
intermediates [API] |
Tones |
3101 |
|
Generics |
Million Units |
1939.48 |
|
Biotechnology – on single shift basis |
Grams |
73 |
|
Custom Pharmaceutical Services |
Kilograms |
219200 |
GENERAL INFORMATION
|
No. of Employees : |
10,000
(approximately) |
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Bankers : |
·
Allahabad
Bank, Industrial Finance Branch, Secunderabad, ·
Bank
of Khairatabad Branch, ·
Canara
Bank Basheer Bagh, ·
Canara
·
Citi
Bank ·
Global
Trust Bank Secunderabad, ·
HDFC
Bank ·
The
Hongkong and Shanghai Banking Corporation Limited ·
State
Bank of Overseas Branch, ·
State
Bank of Industrial Finance Branch, ·
State
Bank of Industrial Finance Branch, ·
Standard
Chartered Grindlays Bank Limited ·
Andhra
Bank Balanagar Branch, |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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|
Name : |
Bharat S. Raut
and Company Chartered
Accountants |
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Membership : |
§
Confederation
of Indian Industry |
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Joint Venture
: |
§ Kunshan Rotam Reddy Pharmaceutical Company Limited (“Reddy Kunshan”), China |
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Associates : |
§
Betapharm Arzneimittel §
Beta Healthcare Solutions §
Beta institute fur sozialmedizinische Forschung und
Entwicklung GmbH, §
Reddy Holding §
Lacock Holdings Limited, §
Reddy Pharma Iberia SA, §
Reddy Pharma Italia SPA, §
Dr. Reddy’s Laboratories ( §
Dr. Reddy’s Laboratories SA, §
Eurobridge Consulting B.V., §
OOO DRS Limited, §
Aurigene Discovery Technologies ( §
Affordable Health Care Limited, §
Macred India Private Limited, §
Dr. Reddy’s Laboratories ILAC TICARET Limited
SIRKETI, §
Jet Generici SRL, §
Dr. Reddy’s Laboratories Louisiana LLC, §
Chirotech Technology Limited, §
Perlecan Pharma Private Limited, §
APR LLC §
Perlecan Pharma Private Limited, |
|
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Subsidiaries : |
§
DRL Investments Limited, §
Reddy Pharmaceuticals Hong Kong Limited, §
OOO JV Reddy Biomed Limited, §
Reddy Antilles N.V., §
Reddy §
Reddy US Therapeutics Inc., §
Dr. Reddy’s Laboratories Inc., §
Reddy Cheminor §
Dr. Reddy’s Farmaceutica Do §
Cheminor Investments Limited, §
Aurigene Discovery Technologies Limited, §
Aurigene Discovery Technologies Inc., §
Dr. Reddy’s Laboratories (EU) Limited, §
Dr. Reddy’s Laboratories (UK) Limited, §
Dr. Reddy’s Laboratories (Proprietary) Limited, §
OOO Dr. Reddy’s Laboratories Limited, §
Promius Pharma LLC (formerly Reddy
Pharmaceuticals §
Dr. Reddy’s Bio-sciences Limited, §
Globe Enterprises (a partnership firm in §
Trigenesis Therapeutics Inc., §
Industrias Quimicas Falcon de Mexico, |
CAPITAL STRUCTURE
As on 23.07.2010
Authorised Capital : 1200.000 Millions
Paid and
Subscribed Capital: Rs.846.264 Millions
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
240,000,000 |
Equity Shares |
Rs.5/- each |
Rs.1200.000 millions |
|
|
|
|
|
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
168,845,585 |
Equity Shares |
Rs.5/- each |
Rs.844.228 Millions |
|
|
|
|
|
Paid and
Subscribed Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
168,845,385 |
Equity Shares |
Rs.5/- each |
Rs.844.227 Millions |
|
|
|
|
|
NOTES:
1. Subscribed and paid-up share capital includes:
(a) 111,732,202 (previous year: 111,732,202) equity shares
of Rs.5/- each fully paid-up, allotted as bonus shares. Out of total, 34,974,400
shares were allotted by capitalisation of General Reserve and 76,757,802 equity
shares allotted as bonus shares by capitalisation of the Securities Premium
Account in earlier years.
(b) 1,052,248 (previous year: 1,052,248) equity shares of
Rs.5/- each allotted pursuant to a scheme of amalgamation with Standard Equity
Fund Limited without payments being received in cash.
(c) 20,571,768 (previous year: 20,571,768) equity shares of
Rs.5/- each allotted and 82,800 (previous year: 82,800) equity shares of Rs.5/-
each extinguished pursuant to a scheme of amalgamation with erstwhile Cheminor
Drugs Limited (CDL) without payments being received in cash.
(d) 40,750,000 (previous year: 40,750,000) equity shares of
Rs.5/- each allotted against American Depository Shares (ADS).
(e) 17,204,304 (previous year: 17,204,304) equity shares of
Rs.5/- each allotted against Global Depository Receipts (GDR) that were
converted into ADS during the year ended 31 March 2002.
(f) 226,776 (previous year: 226,776) equity shares of Rs.5/-
each allotted to the erstwhile members of American Remedies Limited (ARL)
pursuant to a scheme of amalgamation with ARL without payments being received
in cash.
(g) 1,185,283 (previous year: 882,832) equity shares of
Rs.5/- each allotted to the eligible employees of the Company and its
subsidiaries on exercise of the vested stock options in accordance with the
terms of exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2002”.
(h) 146,583 (previous year: 72,426) equity shares of Rs.5/-
each allotted to the eligible employees of the Company and its subsidiaries on
exercise of the vested stock options in accordance with the terms of exercise
under the “Dr. Reddy’s Employees Stock Option Plan, 2007.
2. Represents 200 (previous year: 200) equity shares of
Rs.5/- each, amount paid-up Rs.500/- (rounded off in millions in the Schedule
above) forfeited due to nonpayment of allotment money.
3. 885,007 (previous year: 914,896) stock options are
outstanding to be issued by the Company on exercise of the vested stock options
in accordance with the terms of exercise under the “Dr. Reddy’s Employees Stock
Option Plan, 2002” and 112,390 (previous year: 156,577) stock options are
outstanding to be issued by the
Company on exercise of the vested stock options in
accordance with the terms of exercise under the “Dr. Reddy’s Employees ADR
Stock Option Plan, 2007”.
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 |
844.000 |
842.000 |
840.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
58302.000 |
51749.000 |
47277.200 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
59146.000 |
52591.000 |
48118.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8.000 |
26.000 |
34.000 |
|
|
2] Unsecured Loans |
5624.000 |
6377.000 |
4589.100 |
|
|
TOTAL BORROWING |
5632.000 |
6403.000 |
4623.100 |
|
|
DEFERRED TAX LIABILITIES |
750.000 |
904.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
65528.000 |
59898.000 |
52741.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13156.000 |
12108.000 |
9874.200 |
|
|
Capital work-in-progress |
7454.000 |
4112.000 |
2457.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
25551.000 |
17038.000 |
19306.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8974.000
|
7351.000
|
6409.300
|
|
|
Sundry Debtors |
10605.000
|
14197.000
|
8977.100
|
|
|
Cash & Bank Balances |
3680.000
|
3844.000
|
5373.400
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
13001.000
|
13085.000
|
12720.200
|
|
Total
Current Assets |
36260.000
|
38477.000
|
33480.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11943.000
|
7800.000
|
|
|
|
Other Current Liabilities |
2532.000
|
2702.000
|
|
|
|
Provisions |
2418.000
|
1335.000
|
4512.800
|
|
Total
Current Liabilities |
16893.000
|
11837.000
|
12376.300
|
|
|
Net Current Assets |
19367.000
|
26640.000
|
21103.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
65528.000 |
59898.000 |
52741.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
44698.000 |
39997.000 |
34497.100 |
|
|
|
Other Income |
2205.000 |
2982.000 |
1911.300 |
|
|
|
TOTAL (A) |
46903.000 |
42979.000 |
36408.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
|
3847.000 |
3765.200 |
|
|
|
Administrative Expenses and Selling Expenses |
|
10086.000 |
8641.100 |
|
|
|
Raw Material Consumed |
|
14699.000 |
11460.200 |
|
|
|
Excise Duty |
33671.000 |
112.000 |
845.100 |
|
|
|
Employee Cost |
|
686.000 |
3156.600 |
|
|
|
Power & Fuel |
|
3847.000 |
771.200 |
|
|
|
Other Expenditure |
|
286.000 |
161.200 |
|
|
|
TOTAL (B) |
33671.000 |
33563.000 |
28800.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13232.000 |
9416.000 |
7607.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
160.000 |
185.000 |
146.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13072.000 |
9231.000 |
7460.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2224.000 |
1936.000 |
1619.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
10848.000 |
7295.000 |
5841.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2387.000 |
1686.000 |
1088.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
8461.000 |
5609.000 |
4752.200 |
|
|
|
|
|
|
|
|
|
Add |
EXTRAORDINARY
ITEM |
3.800 |
NA |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
20391.000 |
NA |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
3063.000 |
NA |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
25792.800 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
31233.000 |
23668.000 |
|
|
TOTAL EARNINGS |
NA |
31233.000 |
23668.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Import Value |
NA |
6893.000 |
7357.000 |
|
|
TOTAL IMPORTS |
NA |
6893.000 |
7357.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
48.25 |
33.32 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 (3rd
Quarter) |
|
Net Sales |
12655.700 |
12968.800 |
13897.600 |
|
Total Expenditure |
9556.600 |
10229.800 |
10466.300 |
|
PBIDT (Excl OI) |
3099.100 |
2739.000 |
3431.300 |
|
Other Income |
266.100 |
523.500 |
372.100 |
|
Operating Profit |
3365.200 |
3262.500 |
3803.400 |
|
Interest |
4.600 |
1.300 |
5.400 |
|
PBDT |
3360.600 |
3261.200 |
3798.000 |
|
Depreciation |
572.000 |
613.500 |
638.900 |
|
Profit Before Tax |
2788.600 |
2647.700 |
3159.100 |
|
Tax |
343.800 |
445.700 |
531.400 |
|
Profit After Tax |
2444.800 |
2202.000 |
2627.700 |
|
Net Profit |
2444.800 |
2202.000 |
2627.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.04
|
13.05
|
13.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.27
|
18.24
|
16.93 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.95
|
14.42
|
13.47 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.14
|
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.38
|
0.35
|
0.35 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.15
|
3.25
|
2.71 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was came to on track in the year 1984 in
The company made its beginning with the manufacture of Active Pharmaceutical
Ingredients and Intermediates (API) in 1984 and commenced operations with a
single drug in a 60-tonne facility near
The Company’s Custom Pharmaceutical Services (CPS) business was formed in the
year 2001, and in 2002 conducts its first overseas acquisition – BMS
Laboratories Limited and Meridian Healthcare in
The appreciation and recognition is a role to boost, as part the company has
received plenty of awards and applications already, continued that, the company
got Pharma Excellence Awards 2006-07 the category of Sustained Growth by The
Indian Express, Dun and Bradstreet American Express in Corporate Awards 2007,
Best Corporate Social Responsibility Initiative 2007 by BSE – India and Amity
Leadership Award for Best Practices in HR in Pharmaceutical Sector. 4th
HR Summit ‘08.
Subject has entered into a settlement agreement with Novartis Pharma AG on
January 2008, which involves a stipulation of dismissal of the lawsuits in the United
States relating to the Abbreviated New Drug Applications filed by the company
for a generic version of rivastigmine tartrate capsules sold under the
trade-name Exelon and in same month and year the company has launched Supanac
(Diclofenac potassium immediate release 50 mg tablets) in India, increasing its
offering in the Rs 27000.000 Millions in NSAID market. Supanac is in-licensed
from Applied Pharma Research (APR),
DIRECTORS:
Ms. Kalpana Morparia and Dr. J P
Moreau retire by rotation at the ensuing
Annual General Meeting scheduled on 23
July 2010 and are eligible for
re-appointment.
The Board of Directors had
appointed Dr. Ashok S Ganguly as an
additional director on the Board of the Company on 23 October 2009. He
will hold this office till the conclusion of 26th Annual
General Meeting of the Company scheduled on
23 July 2010. Requisite notice
under Section 257
of the Companies Act,
1956 has been
received from a
member proposing his appointment. It is
proposed to appoint him as a Director of
the Company liable to retire by
rotation. The resolution for the same has been included in the notice of the 26th
Annual General Meeting scheduled to be held on 23 July 2010.
The brief profiles of Ms. Kalpana Morparia, Dr. J P Moreau and Dr.
Ashok S Ganguly are given in the
Corporate Governance section of the Annual
Report for reference of the members.
RESEARCH AND
DEVELOPMENT (R AND D):
Specific areas in which R AND D activities were carried out by the Company are: The research and development
activities can be classified into several categories, which run parallel to the
activities in the principal areas of
operations:
Global Generics, where the research and
development activities are directed
at the development of
product formulations, processvalidation, bioequivalence testing and other dataneeded to prepare a
growing list of drugs
that are equivalent to numerous brand name products for sale in the emerging
markets or whose patents and regulatory exclusivity periods have expired
or are nearing expiration in the highly regulated markets of the
United States and
Europe. Global Generics also include
the biologics business, where
research and development activities are directed at the
development of biologics
products for the emerging as well
as highly regulated markets.
The new biologics research
and development facility caters to
the highest development
standards, including cGMP,
Good Laboratory Practices and bio-safety level IIA.
Pharmaceutical Services and Active Ingredients, where the research
and development activities concentrate on development of chemical processes
for the synthesis of
active pharmaceutical ingredients
and intermediates (‘API’) for
use in the Global Generics segment and for
sales in the emerging
and developed markets
to third parties.
The research and development activities
also support the custom pharmaceutical line
of business, where they
continue to leverage the strength
of the process chemistry and finished dosage
development expertise to target innovator
as well as emerging pharmaceutical companies. The research and
development is directed toward
providing services to support the
entire pharmaceutical value chain
– from discovery all the way to the market.
Proprietary Products, where they are actively
pursuing discovery and development of new molecules, sometimes referred to
as ‘New Chemical Entity’ or ‘NCEs’ and Differentiated Formulations.
The research programs focus on the following therapeutic
areas:
·
Metabolic disorders
·
Cardiovascular disorders
·
Bacterial infections
·
Pain and inflammation
They are focusing on an integrated research strategy
to build
a coherent pipeline of New
Chemical Entities and
Differentiated Formulations with critical
mass and demonstrate repeated success in the chosen
therapeutic
area.
MANAGEMENT
DISCUSSION AND ANALYSIS
Established in 1984,
Dr. Reddy’s Laboratories
(Dr. Reddy’s’ or the
Company’) is an
integrated global pharmaceutical
company committed to providing
affordable and innovative medicines through
its three core
businesses:
Global Generics, which includes branded and unbranded prescription
and over-the-counter (OTC) drug products.
Pharmaceutical Services and Active Ingredients (PSAI), comprising Active Pharmaceutical Ingredients and Custom
Pharmaceutical Services.
Proprietary Products, comprising Generic Biopharmaceuticals, New
Chemical Entities (NCEs), Differentiated Formulations and a
dermatology focused specialty
company
Promius TM Pharma.
The Company has a strong presence – in highly regulated markets such as
the
STRATEGY:
The Company’s strategy
is to combine
industryleading science and technology, product offering and
customer service with execution excellence to provide affordable and innovative
medicines for healthier lives. The key elements of Dr. Reddy’s strategy
include:
STRENGTHENING OF
SCIENCE AND TECHNOLOGY:
The Company’s strengths in science and technology range
from synthetic organic chemistry,
formulation development, biologics development to small molecule based drugdiscovery. Such
expertise enables the creation of unique competitive advantages with an industryleading
Intellectual Property (IP) and
technologyleveraged product portfolio.
OFFERINGS:
Global Generics
Branded Generics
The Company seeks to have a
portfolio that is strongly differentiated
and offers compelling advantages to doctors and patients.
Unbranded Generics
It aims to ensure that its
customers – pharmacy chains and distributors
- are first to
market’ the Company’s products; and that
they have high product
availability combined with low inventories resulting in
superior inventory turns while addressing the customer’s needs. Vertical
integration and process innovation
ensures that the
Company’s products remain competitive.
PSAI:
The Company’s product
offering is geared to offer IP
and technology-advantaged products
to enable launches ahead of others
at competitive prices. In the
area of services, it aims to offer niche
product service capabilities, technology
platforms, and competitive
cost structures to innovator companies.
PROPRIETARY
PRODUCTS
Differentiated
Formulations:
The Company’s emerging
Differentiated Products portfolio, which
comprises of new, synergistic
combinations as well as
technologies that improve safety and
/ or efficacy
by modifying pharmacokinetics of
existing medicines, is focused on significant clinically unmet needs.
The Company is also investigating new indications for existing medicines.
New Chemical Entities
(NCEs) The Company is
also focused in the
discovery, development, and
commercialization of novel small
molecule agents in therapeutic
areas of bacterial infections, metabolic
disorders, and pain / inflammation.
Generic
Biopharmaceuticals:
The Company aims
to deliver equivalents of MANAGEMENT
DISCUSSION AND ANALYSIS proprietary
biopharmaceuticals as affordable alternatives
through process development as well as relevant clinical research.
EXECUTION
EXCELLENCE (BUILDING BLOCKS):
Execution excellence provides the framework to create sustainable customer value across
all the activities of the Company. The
key elements of execution excellence as practiced in the
company are:
Lean Manufacturing
Eliminating waste and
reducing cycle time
with focus on
capacity constrained resources.
Quality by
Principles of the Theory of Constraints in supply chain
and product development This
ensures high availability with low inventory through
a pull-based logistics system. It
also ensures speed in product
development through Critical Chain Project Management (CCPM).
Leadership Development Developing leaders as well as enhancing
leadership behavior across the organization.
KEY EVENTS
FINANCIAL
HIGHLIGHTS:
Consolidated revenues for 2009-10 was Rs. 70,277 million.
Excluding revenues from
sumatriptan - Dr. Reddy’s
Authorized Generic version of Imitrexr which was launched in 2008-09 –
the Company’s overall revenue grew by
9%. In US
In the
Adjusted EBITDA of Rs. 15,828
million is highest among pharmaceutical companies in
Return on Capital Employed (RoCE) at 17% for 2009-10 as against 14% in
2008-09. This increase is attributable to:
·
Core business growth of
·
Rationalization of business model; and
·
Cost optimization and restructuring initiatives.
BUSINESS
HIGHLIGHTS:
In the US market, 2009 saw Dr. Reddy’s enter the
list of the Top 10
generic companies.
The Company has broken into the Top 10 league by improving its market
share from 2.1% to 2.7%. This is a
significant milestone, and
corroborates Dr. Reddy’s longer
term target of becoming a leading generics player in the
At 6.5%, the Company’s growth in the
Nine new products
were launched in the
India and Russia, both key
emerging markets for the Company, registered impressive performance
In
In
Germany
Ongoing healthcare reforms and
changing market dynamics continue to
cause pricing pressures, leading
to low margins. To remain competitive
in this scenario, the Company has
rationalized its field force and moved towards
a lean operating model. In 2009-10, the Company recorded a one-time
charge of Rs. 912 million
related to termination benefits payable to
a set of identified employees.
Moreover, the results
of additional tenders in
* Rs. 2,112 million for the product related intangibles.
* Rs. 5,147 million towards carrying value of goodwill, and
* Rs. 1,211 million towards the trademark/brand,
beta’, which forms
a significant portion of the betapharm cash generating unit.
- Successful audits of the Company’s formulations and chemical plants
2009-10 saw successful
US Food and Drug Authority
(USFDA) audits of the
Company’s formulation plants at
Bachupally,
- Product pipeline continues to show impressive growth potential
* The Company has filed 158
cumulative Abbreviated New Drug Applications (ANDAs) up
to date. As on 31 March 2010,
there were 73
ANDAs pending approval at the
USFDA, of which 38 are Para-IV filings and
12 have the status of first to file’.
* It has
filed 19 Drug Master Files (DMFs) in the
* In addition, Dr. Reddy’s has generated a
sound near-term pipeline
of limited competition / high margin opportunities of generic products
and biosimilars,
STRATEGIC
PARTNERSHIPS:
Partnering with GlaxoSmithKline plc Dr. Reddy’s has
entered into a strategic partnership with GlaxoSmithKline
plc (GSK) to develop and market
select products across emerging markets outside India. This
partnership will expand the Company’s reach in emerging economies,
and leverage its product
portfolio and process development
strengths across Generic
and Differentiated
Formulations with GSK’s market
knowledge and presence in such markets. The products will be
manufactured by Dr. Reddy’s; and will be licensed and supplied to GSK in
markets such as Latin America, Africa,
the Middle East, and Asia Pacific excluding India.
TRENDS IN GLOBAL
MARKETS:
Note: Global market
share numbers referred to in this and subsequent sections are
based on latest available reports from
IMS Health Inc. According to IMS Health Inc., the global pharmaceutical
market grew by 7% in 2009 to reach US$
837 billion on a constant-dollar basis
compared with 4.8% growth in
2008. In 2010, the market is
expected to grow by 4% to 6% in
constant dollar terms, thus exceeding US$ 850
billion. This growth will be largely driven by strong overall growth in
the emerging
countries, as well as the rising influence of healthcare access and
funding on market demand. Moreover, the global market is expected to grow at
5% to 8% CAGR over the next five years,
reaching an anticipated US$ 1.1 trillion
in 2014.
KEY GLOBAL MARKET
TRENDS:
- Emerging markets are set to play a pivotal role in future pharmaceutical successes Currently, emerging pharmaceutical markets
are typically small. However, their
rapid growth vis-a-vis the more regulated markets make them attractive prospects
for the pharmaceutical industry.
Rapidly growing economies,
increasing population and greater health awareness combined with larger incomes
to spend on
healthcare will drive
the growth of pharmaceuticals in emerging markets. By 2017, IMS forecasts
revenues from emerging markets at US$
290 billion to US$ 320 billion, with a CAGR of
12% to 15%.
- Therapy area growth dynamics will be driven by innovation
cycles and unmet needs As the
pharmaceutical industry’s research and development (R AND D) programs adjust
to creating low-cost generic options
in many chronic therapy areas,
higher growth will occur in those
areas where there
is significant unmet clinical need. In oncology, diabetes, multiple sclerosis and
HIV, annual growth is expected to exceed 10% right up to 2014, as new drugs
are brought to market, patient
access is expanded and funding
is redirected from other areas where lower-cost generics take over.
- Transition from small molecules to big molecules, or the
expansion of Biologics
in developed markets; and branded and off-patent small molecule medicines in fast growing emerging
markets In the developed markets of the
US, Europe and Japan, the industry is perceptibly moving away
from the small molecule driven sales model, towards
targeting specialist secondary care
indications through the use of high-value biologic therapies. The key driver
of sales growth
up to year 2014 will
be injectable biologic therapies for the treatment of more
secondary care indications.
In emerging markets, branded and off-patent
medicines will continue
to dominate, with occasional breakthroughs and revenue spikes
coming from Biologics. Primary
care drugs will still drive sales in these markets, with medicines for
infectious diseases and
endocrine/metabolic disorder
experiencing the largest growth.
- Mergers, acquisitions and strategic partnerships are here to stay:In
line with recovery from the global economic downturn, the number of MandA and strategic
deals has been on the rise throughout the second
half of 2009. While neither MandA
nor strategic partnerships can totally offset sales declines from the impending patent cliff of 2011,
these partnerships and mergers will offer improved profitability
because of higher combined sales, cost saving opportunities and operational
synergies.
A number of events may occur in
2010 that could have long term effects
on the pharmaceutical market.
These include actual
initiation of the comprehensive healthcare reform in the
REGIONAL
PERFORMANCE:
The US market’s
growth to slow down in 2010
In 2009, the
Other mature markets: Europe and Japan Europe contributed US$ 247
billion to the total pharmaceutical market, and showed a
growth of 4.8% in 2009 versus 7% in 2008, in constant dollar
terms. The expected market growth in
Pharmerging’
markets in the aggregate sustain strong growth:
Seven pharmerging’ countries – Brazil, Russia, India, China, South Korea, Turkey
and Mexico – are expected in
aggregate to grow by 12% to 14% in
2010, and a CAGR of 13%
to 16% over the
next five years.
pharmaceutical market is
expected to grow at over
20% annually, and contribute 21% of overall global growth
right up to 2013. Russia and Turkey may be negatively impacted by new measures
intended to reduce the level of healthcare spending.
TRENDS IN
Patent cliff to
drive the generics market through 2014
The impending 2011 patent cliff
is set to erode US$ 78 billion in global branded sales from
drugs facing patent expiry over 2010-14.
This is in addition
to another US$ 32 billion from continued
erosion of already expired brands. The patent cliff will
be a major catalyst for the growth of generic pharmaceutical companies.
Generics will be an aggressive driver of
sales and, in the process, deliver
cheaper drugs for all.
US healthcare
reforms
On 21 March 2010, with the US
Congress passing The Patient Protection
and Affordable Care Act, there
are expectations of significant changes in
the
interchangeable biosimilar 18
months of exclusivity. This may
affect Dr. Reddy’s entry in
biologics in the
TRENDS IN
The Indian pharmaceutical market
has seen a CAGR of about 14% in the last
five years. It continues to be highly
fragmented and dominated by Indian companies. The
domestic pharmaceutical industry
grew by
18% in March Rapidly
growing economies, increasing
population and greater
health awareness combined with
larger incomes to spend on healthcare
will drive the growth of pharmaceuticals
in emerging markets.
2010 (ORG’s moving annual total, or MAT) versus 10% in March 2009.
Acute therapy dominates,
with a share of over 75% of
the total market value.
The chronic segment has registered a growth of 21%, versus 16% in
the acute segment. Anti-infectives grew by 14%, respiratory and dermatology by
21%, cardiac by 21% and CNS by 20%.
The Government of India’s Vision 2015 statement indicates an 18%
plus CAGR for the pharmaceutical sector, translating to a
doubling of revenues over the next five
years. According to this report, growth will be driven by all
verticals domestic formulations, generics exports, and
outsourcing. By 2015, the report
expects specialty and super-specialty therapies to account for 45% of the
market. Growing lifestyle disorders, particularly metabolic disorders like diabetes, obesity
and hypertension, coronary heart
disease, cardiovascular,
neuropsychiatry and oncology drugs are likely
to gain significance.
MARKET PERFORMANCE
REVENUES:
The Company’s consolidated
revenues increased marginally by
1% to Rs. 70,277 million (US$ 1.56 billion) in
2009-10. The relevant details are:
Excluding sumatriptan, the Authorized Generic
version of Imitrexr, revenues grew
by 9% from Rs. 62,253 million
in 2008-09 to
Rs. 67,734 million in 2009-10.
PSAI grew by 9% and Global Generics by 8%.
In 2008-09, the Company launched sumatriptan tablets in North
America. This contributed to Rs
2,543 million in 2009-10, versus Rs. 7,188
million in 2008-09. In 2009-10, share of revenue from the
international businesses stood at 82%, with 18% coming from India. The
revenue composition between
geographies changed considerably
primarily due to sale of
sumatriptan in the US. As
a result, North America (US and Canada contributed to 30% of
total revenues in 2009- 10, versus 35% last year. Europe accounted for 24% of total sales in 2009-10, compared to
26% in 2008-09. Russia and other CIS countries contributed to 13% of total
revenues. And India delivered 18% of
total revenues in 2009-10 from 17% in 2008-09.
GLOBAL GENERICS
BUSINESS:
Global Generics revenues were at Rs.48,606 million in 2009-10,
versus Rs.49,790 million in 2008-09.
North America revenues dropped by
15% to Rs.16,817 million in 2009-10 - largely due to the lower sales from
sumatriptan during the year.
As mentioned earlier, sumatriptan contributed Rs. 2,543 million in
2009-10, compared to Rs.
7,188 million in 2008-09. Excluding
sumatriptan, Dr. Reddy’s North
American generics portfolio witnessed
13% growth. During 2009-10, the
Company launched nine
new products, including
one OTC offering.
These new launches
- for instance, nateglinide, omeprazole
magnesium, metformin glyburide, fluoxetine DR and others – contributed
Rs. 763 million or 5% of total
Revenues in
Dr. Reddy’s top-10 brands accounted for revenues of Rs. 3,845
million (38% of
Omezr and Omez DRr, the Company’s brands of
omeprazole, grew by 26%
compared to a market growth of 18%. OmezTM now accounts
for 50%
of the total market.
RedituxTM, the Company’s brand of rituximab, grew by 17%. It continues
to be the only biosimilar launched in
Aided by a focused market campaign, revenues from RazoTM and
Razo-DTM, the Company’s brand of rabeprazole, grew by 18%. The brand
has a
market share of around 13%.
MintopTM, Dr. Reddy’s brand of
minoxidil, grew by 14%, and is ranked
first with a market share of over 42%.
Stamlor, the Company’s brand of amlodipine, grew by 12%, and is
ranked first with a market share of over 21%.
Dr. Reddy’s outperformed
the market in
Table 3 gives the revenues from
the Company’s top five brands in
Revenues from
Rest of the World
(RoW):
Revenues from RoW markets increased by 48% to Rs.2,868 million in
2009-10. This was largely contributed by
PHARMACEUTICAL
SERVICES AND ACTIVE INGREDIENTS (PSAI) BUSINESS:
Revenues from PSAI
grew by 9% to reach Rs. 20,404
million in 2009-10. International markets accounted for 87% of PSAI’s top-line,
increasing by 8% to Rs. 17,758 million.
Revenues from
olanzapine.
Revenues from
Revenues from the emerging markets increased by 17% to Rs. 7,433
million, on account of increased sales from Israel, Turkey, Brazil and Japan.
REVENUES
Revenues increased by 1% to Rs.70,277 million in 2009-10.
In November 2008, the Company launched sumatriptan, the Authorized
Generic version of Imitrexr, which
contributed Rs.7,188 million in 2008-09 as against
Rs.2,543 million in 2009-10. Excluding sumatriptan revenues from
both the years, the Company’s
revenues grew by 9% in 2009-10.
GROSS PROFIT:
Dr. Reddy’s gross profit remains
almost flat at Rs.36,340 million. Gross
profit as a percentage of revenue was
52% in 2009-10, versus 53% in
2008-09. The minor
decrease in gross margin was primarily due to a
fall in revenues from
sumatriptan, which contributed a significantly higher margin in 2008-09.
SELLING, GENERAL
AND ADMINISTRATIVE EXPENSES:
Selling, general and administrative expenses increased by 7% to
Rs.22,505 million in 2009-10. During the year, the Company recorded a one-time
charge of Rs.912 million related to
termination benefits payable to a set of
identified employees in
Germany. During the year,
they also closed
the research facility at
R and D EXPENSES:
R and D
expenses fell by 6% to Rs. 3,793
million. As a share
of total revenue, R AND D expenditure was at 5% in 2009-10,
compared to 6% in 2008-09. The fall in R
AND D expenses was due to lower project expenses and bio-studies costs in 2009-10.
IMPAIRMENT LOSS ON
OTHER INTANGIBLE ASSETS AND GOODWILL:
During the year 2009-10, the
Company recorded a write-down of intangible assets of Rs.
3,456 million, and a write down of goodwill
of Rs. 5,147 million. In 2008-09, the comparable numberswere Rs.
3,167 million and Rs. 10,856 million,
respectively.
For both years, the impairment
losses have been due to betapharm
and the state of the tender-based German generics market.
The decrease in market prices
due to tender, which began in
2008-09, continued in 2009-10. The year
saw additional tenders being
announced by several State Healthcare Insurance (SHI) funds.
The Company participated in these tenders through betapharm.
The final results of a majority
of these tenders were announced with betapharm having a lower than anticipated success rate. Due to
these results, the Company needed to re-assess the impact of
such tenders on future sales and profits
in the German market. In light of further deterioration and adverse market conditions in 2009-10, the Company
recorded an impairment loss of:
Rs. 2,112 million for the product related intangibles;
Rs. 5,147 million towards carrying value of goodwill; and
Rs. 1,211 million towards the trademark / brand – beta’ which forms
a significant portion of the betapharm cash generating unit. These
have been recorded in the income
statement. In addition, the Company recorded a write down of
Rs. 133 million towards customer
related intangibles of US
subsidiary, Dr. Reddy’s Louisiana. This arose from the evidence of revenue decline of
a product from
a customer -
on which customer
related intangibles had been recognized at the time of acquisition in early 2008-09.
OTHER
EXPENSE/(INCOME), NET:
In 2009-10, net other income
amounted to Rs. 569 million compared
to net other expense of Rs. 254 million in 2008-09. The
higher net other expenses in 2008-09 was largely due to an expense of Rs.
916 million on account of
liquidated damages paid to Eli Lilly
arising out of an unfavorable court decision relating to patent of
olanzapine in
FINANCE
(EXPENSES)/INCOME, NET:
Finance income/(expense) includes both net interest income /
(expense) and foreign exchange
gain / loss. Net expense in 2009-10 amounted to
Rs. 3 million as
against an expense of Rs. 1,186 million in 2008-09. This
was largely due to a foreign exchange gain of Rs. 72 million in 2009-10,
versus a loss of Rs. 634 million in previous year.
Moreover, there has been a
reduction in the interest expense by 64%
during 2009-10, due to a fall in
interest rates and repayment of long term borrowings.
INCOME TAX:
Provision for income tax for 2009-10 amounted to Rs. 985 million as against
Rs. 1,172 million in 2008-09. Excluding the impact of impairment, revenues from
sumatriptan in both
the years ended 31 March
2010 and 2009
and liquidated damages relating
to olanzapine patent in
PROFIT/(LOSS) FOR
THE YEAR:
Dr. Reddy’s net profit was Rs.1,068 million in 2009-10, versus a
net loss of Rs.5,168 million in 2008-09.
LIQUIDITY AND
CAPITAL RESOURCES:
The Company’s cash flow for 2009-10 is higher primarily due to
higher cash generated from its operating
activities. Investing activities includes
net investment in property, plant
and equipment of Rs.4,136 million
to meet the business growth, compared to Rs. 4,426
million in 2008-09. Investment in mutual funds net of proceeds from sale
amounted to Rs. 3,009 million. Net cash outflow from financing
activities in 2009-10 mainly represents the repayment of Rs.3,479 million of
long term debt, and payment of dividends
amounting to Rs.1,233 million.
OUTLOOK:
The Company believes
its focus on profitable growth
and targeting a leadership position in Global Generics and
Pharmaceutical Services and Active Ingredients
(PSAI) will create significant value in the near term. It is
addressing the need for infrastructure / capacity increases to meet future growth.
In the Global Generics segment, improving depth
in key
markets through portfolio expansion,
consistent delivery of
limited competition
opportunities and supply
chain excellence should lead
to a leadership position in these markets. In the
PSAI segment, they intend to be the partner of choice by creating compelling
value for customers through leveraging IP, technology and cost leadership.
In the Proprietary Products business, they aim to create a viable
business by calibrating investments to produce a self sustainable model.
They have been steadily building
capabilities and capacity over the years, and
have strengthened these
further with initiatives at improving productivity and
reducing costs. They expect these initiatives shall deliver value in the near term.
REVENUES FROM
DIFFERENT BUSINESSES
ANDAs in
In 2009-10, the Company filed 12 Abbreviated New Drug Applications (ANDAs) in
US including six Para IV filings. The Company has filed 158 cumulative ANDAs up to date. As on 31 March
2010, there were 73 ANDAs pending approval at
the USFDA, of which 38 are Para-IV filings, with 12 in the category of first to file’.
DMFs:
Regarding Active Ingredients
business, the Company filed 36 DMFs in
2009-10. Of these, 19 were filed in US, five in
New Chemical
Entities (NCEs):
As on 31 March 2010, Dr. Reddy’s had six New Chemical Entities
(NCEs), of which five are in clinical
development and one in the preclinical stage.
Pharmaceutical Services
and Active Ingredients (PSAI):
Revenues grew by 9% to Rs. 20,404
million in 2009-10 from Rs.
18,758 million in 2008-09.
International revenues accounted
for 87% of
PSAI revenues.
2009-10 saw the company posting significant increase
primarily from Europe by 8% and
‘Rest of the World’ markets (i.e., all markets other than North
America, Europe, Russia and other
countries of the former
Soviet Union and India) by 17%.
RECOGNITIONS:
The year saw Dr. Reddy’s win
numerous awards. Some of the key
ones were: ‘Corporate Social Responsibility Award’ at the CNBC
TV18’s
For its HR initiatives, Dr.
Reddy’s won the: Recruiting And Staffing
Best In Class (RASBIC)
award 2009-10 for the Best Overall
Recruiting and Staffing Organization’ and
Best Recruiting Evaluation Techniques’;Organization with Innovative HR Practices’ and
Outstanding Contribution to the
Cause of Education’ awards at the World
HRD Congress and was adjudicated the best in the Great Places
to Work Survey’ in the pharmaceutical and biotechnology
industry. The Company’s Annual Report
was conferred the Merit
Award’ for the
year 2008 in
the category Manufacturing
Sector’ by the South Asian Federation of Accountants.
TALENT
ACQUISITION:
During the year,
around 4,100 new
employees were hired,
including replacements. The highlights of the hiring program are:
§
India field
and manufacturing hires have contributed 25%
each to the overall
hiring while 24%
of the hiring was
in Quality, Research
and Development and Engineering
Services.
§
Critical
talent was added
in the areas
of Life Cycle
Strategy, Formulations Scale- Up
Development, Regulatory Strategy, Legal,
Corporate Development and Strategic
Planning, Safety Health
and Environment,
§
Pharmacovigilance and Clinical Development,
Bioassay and Medical Sciences.
§
24 Management Trainees and laterals were recruited
from prestigious B-Schools
including IIMs, ISB, TISS and
about 628 technical trainees were recruited which includes a number of IIT graduates.
They also ramped up the Self Managed
Teams (SMTs) in Baddi and Vishakapatnam.
TALENT MANAGEMENT:
Nominations for promotion
to and within Senior Management
were taken through the Talent Management Board (TMB) process for
the first time on a pilot basis. The TMB process roadmap was drawn up
with the top management and is
slated to be executed in FY11. The deployment of this
initiative will be top down with
TMBs for top management being done at the
Corporate and for others in the Business Units. The Company’s Management
Council (MC) will lead this process to reinforce the commitment of the top
management to the development of leadership in the organization.
They are also partnering with a
global consulting firm to work on critical interventions related to role
clarification, job evaluations and competency management.
LEARNING and
LEADERSHIP DEVELOPMENT
Leadership development across
all levels and a culture
of continuous learning are
key to the growth aspirations. Some of
the key activities carried out in this area for the
year were:
Second Leadership Summit was organized at Boston, USA with world
class faculty sharing ideas on Performance and Execution, Talent and
Leadership, and Organizational Culture.
Hosted the Senior Leaders Program (SLP) for cross-industry consortium. During this program, senior
leaders from high powered consortium companies
including those from
Dr. Reddy’s attended a week long
program at the
Coaching provided to middle and senior leaders based on their 360 degree feedback.
Launched several learning interventions focused on developing
critical skill sets, soft skills
and leadership competencies. The
Company offered 6,068 man days of
training.
Increased the reach of learning through Learning@drreddys – an internal learning portal.
399 Management, Engineering and
Technical trainees inducted into
the organization through an intense, systematic and well-planned
Campus-to-Corporate induction program.
BUILDING AN
INCLUSIVE AND ENABLING ORGANIZATION:
During the year, several new employee enabling policies like
flexible work timings, sabbatical leave,
part-time work, paternity leave and adoption
were introduced with an aim to provide flexibility and work life
balance to employees.
HR AWARDS:
In FY10, the Company received the following key
recognitions for its HR initiatives.
Recruiting and Staffing Best in Class
Award (RASBIC) 2009-10 for
the Best Overall Recruiting and Staffing Organization’
and Best Recruiting Evaluation Techniques’
Employer awards at the
World HRD Congress
for Organization with Innovative HR
Practices’ and Outstanding Contribution to the
Cause of Education’
Adjudicated the best in the Great Places to Work Survey’ in the Pharma and Biotech industry.
CORPORATE SOCIAL
RESPONSIBILITY
A DEEP COMMITMENT:
‘Dr. Reddy’s Foundation (DRF) was
born out of my anger’, says Dr. K Anji Reddy,
Founder Chairman of Dr. Reddy’s.
It was a Newsweek article which commented that ‘some parts of
DRF, founded in
1996, through its pioneering efforts
in the field
of livelihood creation and education, has changed the lives of
millions while achieving measurable
social impact. It has exemplified
the change that could
be brought in the lives of the underprivileged through
corporate initiatives. Past efforts have given them the confidence and
hope that they can do much more in the coming years for the betterment
of the
marginalized sections of society.
FLOOD RELIEF
INITIATIVE:
DRF played an active part in providing relief to victims
of the
massive floods which hit
Health camps were organized to provide immediate health
services to the needy. Free treatment, essential medicines
and technical advisers were made available by Dr. Reddy’s, while DRF carried
out the community mobilization and camp
management activities. In a week-long operation from 13-19 October 2009, about
5,800 patients from over 30,000 families were treated in 38
villages and 21 urban slums. The Company also made a contribution of Rs. 10
million to the Chief Minister’s Relief Fund and
employees based out of
DR. REDDY’S
FOUNDATION (DRF):
DRF has made significant progress in its social
development endeavor in FY10
through several initiatives in the areas of
creating Sustainable livelihoods
and providing Quality education.
LIVELIHOODS UPDATE
A total of 20,820 livelihoods were generated by LABS
in 2009-10 through various partnerships. (refer LABS
Partnership table)
Andhra Pradesh in
India accounted for 30%
of the total
livelihoods generated followed by Delhi and UP which accounts for
approximately 8% and 7% respectively. 68% of 20,820 youths trained were
placed with an average salary of Rs.3,618. A total income of Rs.
611,491,659 (Rs. 611 million) was generated for the financial year
2009-10 with 14,157 families being the beneficiaries of this increase in
income.
LABS PARTNERSHIPS
INITIATED THIS YEAR:
Based on the experiences and results gained in the pilot projects,
DRF has been able to sign up for the below
sponsored projects:
§
Lafarge India Private Limited: A MoU was signed
with Lafarge India Private Limited for
conducting diagnostic study
to access the
feasibility of initiating a
skill development and employability program for rural youth in Himachal Pradesh
and Rajasthan.
§
Dalmia Cements and ACC DRF signed a MoU with Dalmia
Cements to support the
training of 250 aspirants in five villages and
provide them with livelihoods in Gulbarga District,
Karnataka. A similar MoU has been signed
with ACC for training and providing
support to 50 aspirants in Chattisgarh.
§
Tata Power Company DRF initiated the Skilling Rural
India Project in Pune in association with Tata Power to train 300 aspirants.
§
Ashta No Kai DRF has also signed a MoU with a Pune
based NGO Ashta No Kai for training and livelihoods support to 100 aspirants in
five villages. DRF has raised sponsored
projects worth Rs. 4.5 million
with a target
of skilling 700 youth in the next one year.
EDUCATION UPDATE
YUVA YOUTH LEARNING CENTERS:
Community-based adolescent youth
learning centers established in various urban slum areas around
TRANSIT EDUCATION
CENTERS:
A transit school comprises of an early childhood education center (cr
che), a bridge course
camp and a regular primary school.
In FY10, 17 Non
residential bridge centers, with a total
strength of 38 teachers provided
education to 575
students. Also, 360
students were taught
at four Residential bridge
centers with 20 teachers engaged in teaching them.
ERC is a
PUDAMI
NEIGHBOURHOOD SCHOOLS:
Pudami schools address the rising demand for English medium
education from marginalized / lower income communities. Four schools have
been set up in
PUDAMI ENGLISH
PRIMARIES:
To make quality English-medium education accessible to urban
children from lower income groups, DRF set up 29 Pudami English
Primaries in
KALLAM ANJI REDDY
VIDYALAYA (KARV):
The Kallam Anji Reddy Vidyalaya at
Kallam Anji Reddy Vocational
Junior College at Hyderabad presently
offers five 2-year vocational
courses at the Intermediate
level - Automobile Engineering Technician, Computer Graphics and Animation,
Computer Science and Engineering, Hotel Operations and Multi-Purpose Health
Worker. It has 450 students who are
being trained by 20 teachers.
EARLY
Early Childhood Care and
Education (ECCE) Center takes care of
children in the age
group of 0-5 years belonging to
migrant children living
on construction sites in urban
Started in January
2010, about 84 children in three
groups - Juvenile delinquents in special home,
under-trials in observation home and
children who need care
and protection in the children home
were housed in the
campus. This bridge school has been set up with support from Sarva Sikshya Abhiyan (SSA).
DR. REDDY’S
FOUNDATION FOR HEALTH EDUCATION (DRFHE):
DRFHE aims to create
professionals (health educators) who would work
with the medical fraternity to
offer an integrated,
multi-disciplinaryapproach to good health. The programs also aim at
building the necessary soft skill
capabilities with an objective of strengthening the healthcare
delivery system for better patient care.
TRAINING
INITIATIVES:
Training to
deliver better patient care:
· INNER CIRCLE
Introduced in 2007
to impart soft skill training of
doctors,
· ABHILASHA
Is aimed at helping nurses understand the true importance of their work
and boost their selfconfidence and motivation.
148 programs were conducted during FY10 benefitting 3,800 nurses.
· SARATHI
Is a program that enables a
doctor’s assistant to emerge as a
sharper, smarter and motivated individual.
60 programs were conducted during FY10 benefitting 1,474 participants.
· SANJEEVANI
Aimed at the pharmacist, this program helps them develop self confidence, empathy towards their customers and effective prescription
dispensation. During FY10, 42 programs were conducted benefiting 672
pharmacists.
PATIENT
INITIATIVES:
Reaching out,
touching lives
Living Well
This program, in partnership with the ‘Art of Living’, is aimed at helping people reduce
riskfactors and increase their resistance levels
through awareness and lifestyle
modification. It also helps manage their chronic condition through
a self management support system. Seven
programs were conducted during
FY10 benefiting 70 patients.
Life at the
doorstep (LAYD)
Based on the
principle of ‘Home Care’ aspect of
Palliative Care, this initiative aims to improve the quality
of life for terminally ill patients
by providing access
to physical, psychological,
emotional, social and spiritual support in anappropriate
manner. A well-equipped medical van with a
team consisting of a doctor,
nurse and patient counselor goes to the
patient’s doorstep to provide home care service. DRFHE is also tying
up with DRF - LABS program to provide livelihood to one member
of a
family where the earning member has been a victim of cancer. During
FY10 this service, apart
from Hyderabad was also
launched at Bangalore,
Mumbai, Bhopal, Jabalpur,
Kolkata, Cochin and Coimbatore benefiting
2,048 cancer patients.
FIXED ASSETS:
§
Land –
Freehold
§
Building
§
Plant
and Machinery
§
Electrical
Equipment
§
Laboratory
Equipment
§
Furniture
and fixture
§
Office
Equipment
§
Vehicles
WEBSITE DETAILS:
Established
in 1984, Subject (NYSE: RDY) is an emerging global pharmaceutical company.
As a fully integrated pharmaceutical company, their purpose is to provide
affordable and innovative medicines through their three core businesses:
§
Pharmaceutical Services and Active Ingredients, comprising their
Active Pharmaceuticals and Custom Pharmaceuticals businesses;
§
Global Generics, which includes branded and unbranded generics;
and
§
Proprietary Products, which includes New Chemical Entities (NCEs),
Differentiated Formulations, and Generic Biopharmaceuticals.
The
products are marketed globally, with a focus on
The strong portfolio of businesses, geographies and products gives them an edge
in an increasingly competitive global market and allows them to provide
affordable medication to people across the world, regardless of geographic and
socio-economic barriers.
BOARD
OF DIRECTORS
Subject Board of Directors
comprises eminent individuals from diverse fields. The Board acts with autonomy
and independence in exercising strategic supervision, discharging its fiduciary
responsibilities, and in ensuring that the management observes the highest
standards of ethics, transparency and disclosure.
The directors are experts in the diverse fields of medicine, chemistry and
medical research human resource development, business strategy, finance, and
economics. They review all significant business decisions, including strategic
and regulatory matters. Every member of the Board, including the non-executive
directors, has full access to any information related to the company.
Committees appointed by the Board focus on specific areas, take decisions
within the authority delegated to them and make specific recommendations to the
Board on matters in their areas or purview.
UNAUDITED STANDALONE FINANCIAL RESULTS
FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2010
RS. IN
MILLIONS
|
Particulars |
(Unaudited) Quarter ended 31.12.2010 |
(Unaudited) Nine Months
ended 31.12.2010 |
|
|
|
|
|
1. Sales/ Income from operations (including Excise Duty) |
13732.700 |
39243.300 |
|
Less: Excise Duty |
84.800 |
250.000 |
|
Net Sales/ income form operations |
13647.900 |
38993.300 |
|
2. License fees and service income |
101.300 |
205.800 |
|
3. Other Operating Income |
148.400 |
378.400 |
|
4. Total Income
(1+2+3) |
13897.600 |
39577.500 |
|
|
|
|
|
5. Total
Expenditure |
11105.200 |
31875.700 |
|
a. Increase/ Decrease in stock |
(505.200) |
(795.700) |
|
b. Material Consumed |
4877.200 |
13457.000 |
|
c. Research and development expenses net |
1298.200 |
3513.300 |
|
d. Personel Costs |
1691.600 |
5121.500 |
|
e. Selling expenses |
1263.800 |
3654.200 |
|
f. Other expenditure |
1840.700 |
5101.000 |
|
g. Depreciation and amortisation |
638.900 |
1824.400 |
|
h. Provision for decline in the value of long term investments |
0.000 |
0.000 |
|
6. Profit form operation before other income, interest and exceptional
item (4-5) |
2792.400 |
7701.800 |
|
7. Other Income |
372.100 |
904.900 |
|
8. Profit before interest and exceptional items (6+7) |
3164.500 |
8606.700 |
|
9. Interest |
5.400 |
11.300 |
|
10. Profit before Exceptional items (8-9) |
3159.100 |
8595.400 |
|
11. Exceptional items |
-- |
-- |
|
12. Profit from ordinary activities before tax (10-11) |
3159.100 |
8595.400 |
|
13. Tax expenses |
-- |
-- |
|
14. Net profit form ordinary activities after tax (12-13) |
3159.100 |
8595.400 |
|
15. Extra-ordinary items |
531.400 |
1320.900 |
|
16. Net Profit for the period / year (14-15) |
2627.700 |
7274.500 |
|
17. Paid-up equity share capital (face value Rs. 5/- each) |
-- |
-- |
|
18. Reserves (excluding revaluation reserve) |
2627.700 |
7274.500 |
|
19 Earning per share for the period (in Rs) per Rs. 5/- share |
846.100 |
846.100 |
|
|
|
|
|
a) Before
Extra-ordinary items |
|
|
|
- Basic |
15.53 |
43.02 |
|
- Diluted |
15.45 |
42.76 |
|
b) After
Extra-ordinary items |
|
|
|
- Basic |
15.43 |
15.43 |
|
- Diluted |
15.45 |
15.45 |
|
|
|
|
|
20. Public
Shareholding |
|
|
|
- Number of Shares |
92947595 |
|
|
- Percentage of Shareholding |
54.92 |
|
|
|
|
|
|
21. Promoters
and promoter group Shareholding |
|
|
|
a) Pledged/ Encumbered |
|
|
|
i) No. of Shares |
2100000 |
2100000 |
|
ii) % of shareholding (as a % of the total Shareholding
of Promoter and Promoter group) |
4.84 |
4.84 |
|
iii) Percentage of shareholding (as a % of
the total share capital of the company) |
1.24 |
1.24 |
|
|
|
|
|
b) Non encumbered |
|
|
|
i) No. of Shares |
41317812 |
41317812 |
|
ii) Percentage of shareholding (as a %
of the total shareholding of promoter
and promoter group) |
95.16 |
95.16 |
|
iii) Percentage of shareholding (as a % of the total share capital of the
company) |
24.42 |
24.42 |
UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE
MONTHS ENDED 31.12.2010
Rs. In Millions
|
Particulars |
(Unaudited) Quarter ended 31.12.2010 |
(Unaudited) Nine Months
ended 31.12.2010 |
|
|
|
|
|
Segment wise revenue, results and capital employed: |
|
|
|
1. Segment revenue : |
|
|
|
a)
Pharmaceutical Services and Active Ingredients |
5562.100 |
14887.500 |
|
b)
Global Generics |
9121.400 |
27048.800 |
|
c)
Proprietary Products |
8.800 |
20.200 |
|
Total |
14692.300 |
41956.500 |
|
Less: Inter segment revenue |
870.100 |
2367.800 |
|
Add
: Other unallocable Income |
447.500 |
893.700 |
|
Total income |
14269.700 |
40482.400 |
|
|
|
|
|
2. Segment results : |
|
|
|
Profit
/ (loss) before tax and interest from each segment |
|
|
|
a)
Pharmaceutical Services and Active Ingredients |
974.200 |
2043.600 |
|
b)
Global Generics |
2623.400 |
8044.600 |
|
c)
Proprietary Products |
(326.200) |
(781.800) |
|
Total |
3271.400 |
9306.400 |
|
Less: (i) Interest |
5.400 |
11.300 |
|
(ii) Other un-allocable expenditure |
106.900 |
699.700 |
|
Total profit before tax |
3159.100 |
8595.400 |
|
|
|
|
|
3. Capital Employed: |
|
|
|
a) Pharmaceutical
Services and Active Ingredients |
16140.400 |
16140.400 |
|
b)
Global Generics |
25220.900 |
25220.900 |
|
c)
Proprietary Products |
7.100 |
7.100 |
|
d)
Others |
25071.600 |
25071.600 |
|
Total |
66440.000 |
66440.000 |
Notes:
1. Pursuant to clause 41 of the Listing Agreement, the investor
complaints received, disposed off and lying unresolved for the quarter ended
31.12.2010 are given in the table below:
|
Nature of
Complaints |
Opening balance |
Received |
Disposal |
Closing Balance |
|
Non receipt of
shares and dividend |
Nil |
4 |
4 |
Nil |
2. During the year ended 31.03.2010 the Company recorded a capital
advance of Rs. 2680.000 millions with a corresponding liability representing its
relief from future royalty payable to I-Ven Pharma Capital Limited (I-Ven) as
per the agreement entered between the parties in earlier periods. On
01.10.2010, in settlement of this
liability the Company and the shareholders of I-Ven entered into an agreement
for the sale of controlling interest in I-Ven to DRL Investments Limited, a
wholly owned subsidiary of the Company, at an amount of Rs. 2680.000 millions
(of which Rs. 150.000 millions to be set aside for certain contingencies in an
escrow account).
3. The unaudited results have been taken on record by the Board of
Directors of the Company at its meeting held on 25.01.2011.
4. The figures for the pervious periods have been
re-grouped/re-classified, wherever necessary, to conform with the current period
classification.
PRESS RELEASE:
Dr.
Reddy’s provides update on the fexofenadine-pseudoephedrine 24 hour litigation
31.01.2011, Hyderabad, India: Dr. Reddy’s Laboratories (NYSE: RDY) announced today that on Friday, 28.01.2011, the U.S. District Court of New Jersey filed a Stipulation and Order lifting an earlier motion for preliminary injunction and clearing the sale of Dr. Reddy’s generic product version of Allegra® D24 (fexofenadine hydrochloride / pseudoephedrine hydrochloride 180mg / 240mg extended release tablet), which was approved by the FDA on 16.032010.
In addition,
plaintiff’s sanofi-aventis and Albany Molecular Research have been required to
post a security with the Court, an amount of USD 40.000 million towards the
possibility that the injunction had been wrongfully granted. Having been
excluded from launching the generic product since the June 2010 hearing, Dr.
Reddy’s intends to pursue an award of this security.
Allegra D24 is a registered trademark of sanofi-aventis.
Disclaimer
This press release includes forward-looking statements, as defined in the U.S.
Private Securities Litigation Reform Act of 1995. We have based these
forward-looking statements on our current expectations and projections about
future events. Such statements involve known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially. Such
factors include, but are not limited to, changes in local and global economic
conditions, our ability to successfully implement our strategy, the market
acceptance of and demand for our products, our growth and expansion,
technological change and our exposure to market risks. By their nature, these
expectations and projections are only estimates and could be materially
different from actual results in the future.
About Dr. Reddy’s
Dr. Reddy’s
Laboratories Limited (NYSE: RDY) is an integrated global pharmaceutical
company, committed to providing affordable and innovative medicines for
healthier lives. Through its three businesses - Pharmaceutical Services and
Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s
offers a portfolio of products and services including APIs, custom
pharmaceutical services, generics, biosimilars, differentiated formulations and
NCEs. Therapeutic focus is on gastro-intestinal, cardiovascular, diabetology,
oncology, pain management, anti-infective and pediatrics. Major markets include
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.44.74 |
|
|
1 |
Rs.73.25 |
|
Euro |
1 |
Rs.65.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
78 |
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.