MIRA
INFORM REPORT
|
Report Date : |
15.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
CADILA HEALTHCARE LIMITED |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country: |
|
|
|
|
|
Financials (as on): |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
15.05.1995 |
|
|
|
|
Com. Reg. No.: |
04-25878 |
|
|
|
|
Paid-up Capital : |
Rs. 682.000 Millions |
|
|
|
|
CIN No.: [Company Identification No.] |
L24230GJ1995PLC025878 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMC00020G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACC6253G |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer and Seller of Pharmaceuticals, Bulk Drugs, Formulations and Injectibles. |
|
|
|
|
No. of Employees : |
3000 (approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
|
|
|
|
|
Maximum Credit Limit : |
USD 64000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and a reputed company having good track. Financials position of the company appears to be sound. Directors are reported to be experienced, respectable and resourceful businessmen. Trade relations are fair. Business active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INFORMATION DECLINED BY
|
Name : |
Mr. Vishal Thakkar |
|
Designation : |
Account Department |
|
Date : |
15.06.2011 |
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-79-26770100 (EPBX) (20 Lines) / 26868100 / 26868235 |
|
Fax No.: |
91-79-26732365 / 26732366 / 26862365 |
|
E-Mail : |
investor.grievance@zyduscadila.com
|
|
Website : |
|
|
|
|
|
Corporate Office : |
|
|
Tel. No.: |
91-79-2686 8100 (20 Lines) |
|
Fax No.: |
91-79-2686 2365 / 66 |
|
Website : |
|
|
|
|
|
Factory 1 : |
Tel No. 91-79-23750331 / 36 / 36 Fax No. 91-79-23750319 Formulation
Unit:
·
S. No.417, 419 and 420, Village Moraiya,
Taluka Sanand, District Ahmedabad, ·
Kundaim Industrial Estate, Ponda, Goa – 403
401, · Village Saraj Mujra, P. O.– Baddi, Tehsil – Nalagarh, District – Solan, Himachal Pradesh, India Neutraceutical
Plant
5504, GIDC Estate,
Phase III, Vatva, Ahmedabad, SBI
Bulk Drug Unit
Plot No. 291, GIDC Industrial Estate, Ankleshwar – 393
002, District Bharuch, Tel No. 91-2646-220621/220719 Fax No. 91-2646-250672 |
|
|
|
|
|
Zydus
Research Centre
Tel No. 91-22-27670224/27670225 Fax No. 91-22-27670223
Tel No. 91-79-23750802-05 Fax No. 91-79-23750606 |
|
|
|
|
Business Development
Office : |
203/204, Neelkant Commercial Centre, Tel No. 91-22-28394690/28394698 |
|
|
|
|
Branches : |
Khemka House, |
|
Tel. No.: |
91-79-27410861 |
|
|
|
|
API Units : |
·
GIDC Estate, Ankleshwar, ·
Patalganga, District Raigad – 410220, ·
Dabhasa, Tal. Padra, District Vadodara, |
|
|
|
|
Registrar and Share Transfer
Agent : |
M/s. Pinnacle Shares Registry Private Limited, Near Ashoka
Mills, |
DIRECTORS
As On 31.03.2010
|
Name |
Mr. Pankaj R.
Patel |
|
Designation |
Chairman and
Managing Director |
|
Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, |
|
Other Directorships |
|
|
|
|
|
Name |
Mr. Mukesh M.
Patel |
|
Designation |
Director |
|
Address |
Ashwamegh
Bungalows, Part II, Off. Satellite Road, Ahmedabad – 380 015, |
|
Other Directorships |
|
|
|
|
|
Name |
Dr. Manubhai A.
Patel |
|
Designation |
Director |
|
Address |
4, Purohit
Society, B/H Swaminarayan Society, Sardarnagar, |
|
Other Directorships |
|
|
|
|
|
Name |
Mr. Pranlal
Bhogilal |
|
Designation |
Director |
|
Address |
122, |
|
Other Directorships |
|
|
|
|
|
Name |
Mr. Sharvil P.
Patel |
|
Designation |
Deputy Managing
Director |
|
Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, |
|
|
|
|
Name |
Mr. H. K. Bilpodiwala |
|
Designation |
Director |
|
|
|
|
Name |
Mrs. Pritiben P. Patel |
|
Designation |
Director |
|
|
|
|
Name |
Mr. A. S. Diwanji |
|
Designation |
Director |
|
|
|
|
Name |
Mr. H. Dhanrajgiri |
|
Designation |
Director |
KEY EXECUTIVES
|
Name |
Mr. Ramanbhai B.
Patel |
|
Designation |
Founder |
|
Address |
16, Azad Society,
Ambawadi, Ahmedabad – 380 015, |
|
Other Directorships |
|
|
|
|
|
Name |
Mr. Upen H. Shah |
|
Designation |
Company Secretary |
|
|
|
|
Name |
Mr. Jyotindra B. Gor |
|
Designation |
Chief Accountant Officer |
|
|
|
|
Name |
Mr. Nitin D Parekh |
|
Designation |
Chief Financil 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 |
|
|
|
|
|
|
|
|
153,134,446 |
74.79 |
|
|
3,600 |
- |
|
|
153,138,046 |
74.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
153,138,046 |
74.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
15,828,059 |
7.73 |
|
|
18,209 |
0.01 |
|
|
11,422,652 |
5.58 |
|
|
10,998,502 |
5.37 |
|
|
38,267,422 |
18.69 |
|
|
|
|
|
|
2,982,309 |
1.46 |
|
|
|
|
|
|
8,333,756 |
4.07 |
|
|
1,719,398 |
0.84 |
|
|
307,589 |
0.15 |
|
|
307,589 |
0.15 |
|
|
13,343,052 |
6.52 |
|
Total Public shareholding (B) |
51,610,474 |
25.21 |
|
Total (A)+(B) |
204,748,520 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
204,748,520 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of pharmaceuticals, bulk drugs, formulations and injectibles. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
PRODUCTION STATUS (As on 31.03.2010):-
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Tablets |
M. L. Nos. |
10236 |
6717 |
|
Capsules |
M. L. Nos. |
778 |
710 |
|
Injections |
K. Ltrs |
513 |
1281 |
|
Dry Powder Injections |
Kgs |
200 |
3689 |
|
Liquids |
K. Ltrs |
0 |
1319 |
|
Dry Syrups, Powder and Granuted |
Tonnes |
5800 |
471 |
|
Ointments |
Tonnes |
150 |
314 |
|
Suppositories |
M. L. Nos. |
8 |
14 |
|
Bulk Drugs |
Tonnes |
881 |
494 |
|
Lyophised Injections |
ML Nos. |
12 |
6 |
|
Vaccines |
M. L. Dosages |
2 |
2 |
|
Aeroslos |
M. L. Nos. |
3 |
2 |
|
Transdermals |
ML.Nos.3 |
5 |
0 |
[#] Includes Inter
unit Transfer 121 Tonnes [2008-09 - 97 Tonnes ] .
Note : Licensed
capacities not stated in view of abolition of Industrial licensing for all of
the above class of goods vide Notification No. F.NO. 10[11] / 92 - LP dated
25.10.1994, issued by Government of India.
GENERAL INFORMATION
|
No. of Employees : |
3000 (approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Securities for Loans: [A] Rs. 500.000
[As at 31-03-2009: Rs. Nil] Millions is secured by a specific Trade Mark of
the Company. [B-a] Rs.
750.000 As at 31-03-2009 : Rs. Nil ]. Millions is secured by securities mentioned
at [B-cJ[i] above on “pan passu” basis with lenders referred to at [B-c)[i[,
[B-c][iii and [B-c][v] and further secured by hypothecation of a specific
Trade Mark of the Company. [B-b]
Secured by way of hypothecation of Inventories I including goods in transit],
Bills Receivables, Book-Debts and all other movables of the Company,
including documents of title to goods, excluding Plant and Machineries, both
present and future, to rank pan passu air, amongst banks. [B-c] Out
of External Commercial Borrowings in Foreign Currency: [i] Rs.
360.000 [As at 31-03-2009: Rs. 660.000] Millions are secured by first
equitable mortgage of immovable properties Sri. hot[ movable properties of
the Formulation Unit of the Company at Moraiya, both present and future,
excluding current assets, to rank pari passu with lenders referred Coat
[B-c][ii), [B-c][vJ and [B-a]. [ii] Rn.
NIL [As at 31-03-2009 : Rs. 330.000 ] Millions secured by securities mentioned
at ]B-c][i] above on pan passu’ basis with lenders referred to at [B-c][i),
[B-c][v] and [B-a] and first mortgage of immovable properties and
hypothecation of movable properties of Formulation unit situated at Ponda,
Goa, excluding current assets, both present and future. iii ] Rs.
253.000 [ As at 31-03-2009 Rs. 571.000 Millions are secured by mortgage of
immovable properties arid hypothecation of movable properties of the API
Unit-i situated at Ankleshwar, excluding current assets, both present and future. [iv] Rs.
NIL [As at 31-03-09: Rs. 338.000] Millions secured by mortgage on a specific
Trade Mark of the Company. [v] Rs.
1138.000 [As at 31-03-2009 : Rs. 540.000] Millions secured by securities
mentioned at [B-cl[i] above to rank pan passu with lenders referred to at
[B-c)[i], [B-c)[ii) [B-a) arid further secured by hypothecation of a specific
made Mark of the Company. 01 this, ECB of Rs. 449.000 Millions is yet to be
secured by the security mentioned therein. [vi ] Rs.
449.000 [As at 31-03-2009: Rs. 307.000 Millions are secured by first
equitable mortgage of immovable properties arid hypothecation of movable
properties excluding current assets, of the API Unit the Company at Dabhnnsa
/ Umraya, both present and future and a specific Trade Mark of the Company. [viii
Rs.1213.000 [As at 31-03-2009: Rs. 1371.000] Millions secured by
hypothecation of two specific Trade Marks of the Company.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Mukesh M. Shah and Company Chartered Accountants |
|
Address : |
3, H. K. House, Second Floor, |
|
|
|
|
Associates/Subsidiaries : |
Associates:
Incorporated on 01.12.1980
Incorporated on 30.10.1984
Incorporated on 22.05.1992
Incorporation on 22.05.1992
Incorporated on 22.05.1992
Incorporated on 22.05.1992
Incorporated on 22.05.1992
Incorporated on 15.051995
Incorporated on 31.10.1994
Incorporated on 06.07.1982
Incorporated on 16.11.1984
Incorporated on 06.09.1973
·
Zydus Infrastructure Private Limited ·
Cadila Laboratories Private Limited ·
MabS Biotech Private Limited ·
Cadmach Machinery Company Private Limited ·
C. M. C. Machinery ·
Cadam Enterprises Subsidiaries
:
|
|
|
|
|
Joint Venture Companies: |
·
Zydus Nycomed Healthcare Private Limited ·
Zydus BSV Pharma Private Limited ·
Zydus Hospira Oncology Private limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
220000000 |
Equity Shares |
Rs.5/- each |
Rs.1100.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
136499013 |
Equity Shares |
Rs.5/- each |
Rs.682.000
millions |
|
|
|
|
|
Notes:
Of the above Shares:
(A) 133,919,637 Equity Shares were allotted as
fully paid-up without payments being received in cash and 90,000,000 Equity
Shares were extinguished pursuant to different Composite Schemes of
Arrangement.
[B] 77,691,976 (As at 31-03-09: 77,691,9761)
Equity Shares were allotted as fully paid-up by way of Bonus Shares by
capitalisation of Share Premium Account and General Reserve
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 |
682.000 |
682.000 |
628.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15539.000 |
11646.000 |
9910.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16221.000 |
12328.000 |
10538.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5542.000 |
6367.000 |
5593.000 |
|
|
2] Unsecured Loans |
399.000 |
1831.000 |
1796.000 |
|
|
TOTAL BORROWING |
5941.000 |
8198.000 |
7389.000 |
|
|
DEFERRED TAX LIABILITIES |
1149.000 |
1259.000 |
1224.000 |
|
|
|
|
|
|
|
|
TOTAL |
23311.000 |
21785.000 |
19151.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9504.000 |
8369.000 |
7839.000 |
|
|
Capital work-in-progress |
1429.000 |
1173.000 |
964.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
5989.000 |
5954.000 |
4427.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3808.000
|
3490.000
|
3310.000
|
|
|
Sundry Debtors |
4008.000
|
3523.000
|
2825.000
|
|
|
Cash & Bank Balances |
282.000
|
256.000
|
190.000
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
3627.000
|
2705.000
|
3355.000
|
|
Total
Current Assets |
11725.000
|
9974.000
|
9680.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3710.000
|
2833.000
|
2430.000
|
|
|
Other liabilities |
121.000
|
103.000
|
346.000
|
|
|
Provisions |
1517.000
|
1053.000
|
983.000
|
|
Total
Current Liabilities |
5348.000
|
3989.000
|
3759.000
|
|
|
Net Current Assets |
6377.000
|
5985.000
|
5921.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETARY ITEMS TRANSLATION DIFFERENCE ACCOUNT |
12.000 |
304.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
23311.0000 |
21785.000 |
19151.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
18329.000 |
16985.000 |
16420.000 |
|
|
|
Other Income |
6355.000 |
3067.000 |
1520.000 |
|
|
|
TOTAL (A) |
24684.000 |
20052.000 |
17940.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Material and finished Goods |
7679.000 |
6498.000 |
6313.000 |
|
|
|
General Expenses |
8708.000 |
7174.000 |
6432.000 |
|
|
|
Research Expenses |
1763.000 |
1582.000 |
1350.000 |
|
|
|
Exceptional Expenses |
0.000 |
128.000 |
48.000 |
|
|
|
TOTAL (B) |
18150.000 |
15382.000 |
14143.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6534.000 |
4670.000 |
3797.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
431.000 |
880.000 |
326.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6103.000 |
3790.000 |
3471.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
900.000 |
826.000 |
734.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5203.000 |
2964.000 |
2737.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
170.00 |
305.000 |
375.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5033.000 |
2659.000 |
2362.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2030.000 |
1628.000 |
841.000 |
|
|
|
|
|
|
|
|
|
Add |
PURSUANT TO A
COMPOSITE SCHEME OF ARRANGEMENT |
0.000 |
38.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2500.000 |
1576.000 |
914.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
100.000 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
1024.000 |
614.000 |
565.000 |
|
|
|
Corporate Dividend Tax on Proposed Dividend |
116.000 |
105.000 |
96.000 |
|
|
BALANCE CARRIED
TO THE B/S |
3323.000 |
2030.000 |
1628.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
9600.000 |
6434.000 |
0.000 |
|
|
|
Commission earnings |
0.000 |
0.000 |
62.000 |
|
|
|
Other Earnings |
735.000 |
912.000 |
795.000 |
|
|
TOTAL EARNINGS |
10335.000 |
7346.000 |
857.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1329.000 |
1141.000 |
1087.000 |
|
|
|
Stores & Spares |
79.000 |
46.000 |
-- |
|
|
|
Capital Goods |
331.000 |
196.000 |
-- |
|
|
|
Others |
234.000 |
276.000 |
543.000 |
|
|
|
Packing Material |
104.000 |
79.000 |
-- |
|
|
TOTAL IMPORTS |
2077.000 |
1738.000 |
1630.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and
Diluted EPS |
|
|
|
|
|
|
- Before
Exceptional Items |
36.87 |
20.42 |
19.19 |
|
|
|
- After
Exceptional Items |
36.87 |
19.48 |
18.80 |
|
|
|
Adjusted Basic
and Diluted EPS |
|
|
|
|
|
|
- Before
Exceptional Items |
24.58 |
13.61 |
NA |
|
|
|
- After
Exceptional Items |
24.58 |
12.99 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
7833.700 |
7390.300 |
7019.300 |
6955.500 |
|
Total Expenditure |
5448.800 |
5384.900 |
5328.700 |
5882.400 |
|
PBIDT (Excl OI) |
2384.900 |
2005.400 |
1690.600 |
1073.100 |
|
Other Income |
157.400 |
236.800 |
162.500 |
24.600 |
|
Operating Profit |
2542.300 |
2242.200 |
1853.100 |
1097.700 |
|
Interest |
124.500 |
92.300 |
87.800 |
90.400 |
|
PBDT |
2417.800 |
2149.900 |
1765.300 |
1007.300 |
|
Depreciation |
240.400 |
234.900 |
246.500 |
246.700 |
|
Profit Before Tax |
2177.400 |
1915.000 |
1518.800 |
760.600 |
|
Tax |
191.000 |
99.000 |
115.000 |
(137.000) |
|
Profit After Tax |
1986.400 |
1816.000 |
1403.800 |
897.600 |
|
Net Profit |
1986.400 |
1816.000 |
1403.800 |
897.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
20.38
|
13.26 |
13.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
28.38
|
17.45 |
16.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.50
|
16.16 |
15.62 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.24 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.69
|
0.98 |
1.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.19
|
2.50 |
2.57 |
LOCAL AGENCY FURTHER INFORMATION
THE DETAILS OF
SUNDRY CREDITORS:
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors other than micro, small and medium enterprises |
|
|
|
|
For capital goods |
45.000 |
51.000 |
83.000 |
|
Others |
3645.000 |
2774.000 |
2343.000 |
|
Subsidiary companies |
20.000 |
8.000 |
4.000 |
|
Total |
3710.000 |
2833.000 |
2430.000 |
HISTORY:
The company was incorporated on 15.05.1995 at Ahmedabad in
Subject is the flagship of Zydus Cadila Group.
Subject was established in 1951. After an existence of four and a half decades subject restructured its operations in 1995, to keep pace with the new business environment. Subject, under the aegis of the Zydus Group came into existence with a focus on total healthcare solutions.
Two families, "the Patel's" and "the
Modi's", promoted the Cadila group of companies. The flagship company was
Cadila Laboratories. There were other companies named Cadila Chemicals, Cadila
Exports, Cadila Antibiotics and Cadila Veterinary Limited. In 1995, to pursue
their independent business philosophies a restructuring of the group was
carried out under which two companies were formed Cadila Laboratories Limited
(Modi's) and the subject.
The business was divided into two equal parts. After the restructuring the company embarked on a major marketing exercise, which helped it, catapult from 15th rank to 6th rank in the Indian Pharma industry. The promoters of the company, Mr. Ramanbhai Patel and Mr. Pankaj Patel are both well qualified in the field of Pharmaceuticals and have received several awards for their recognition.
In February, 2000 it came out with a pubic issue of 14886000 shares of Rs.5 each which included a book build portion of 13397400 equity shares of Rs.5 each and a fixed price portion of 1488600 equity shares at a premium of Rs.245/- per share.
The fund raised is proposed to utilise for financing new
formulations unit at Moraiya, near Ahmedabad and for expansion of bulk drug
unit at Ankleshwar,
The company’s operation include pharmaceuticals (human
formulations, veterinary formulations and bulkdrugs), diagnostics, herbal
products like skin care products and OTC products. Its formulation complex is
located at
The company has entered into a joint venture with USA based Onconova Teherapeuticsl Inc. a biopharmaceutical company specialising in the field of oncology (cancer research). This agreement provides for future collaboration on research manufacturing and marketing of products.
As a result of the merger of 4 companies the company has been rated as fourth largest Pharmaceutical company in the domestic formulations market with a market share of 3.80%.
Operations and Business Performance During the year , the Company achieved sales of Rs.18549 million, showing a growth of 6.8% compared to the previous year. The PBIDT increased by 36.2% to modest Rs.6534.000 million. The Profit before Tax was higher by 75.5% to Rs. 5203.000 million The Profit after Tax increased to Rs. 5033.000 million up by 89.3% compared to Rs. 2659.000 million in 2008-09. The Company achieved EPS (After Exceptional items) of Rs.36.87 compared to Rs.19.48 in 2008-09. EPS on enhanced capital after considering the issue of Bonus Equity Shares was Rs.24.58. A detailed analysis of performance for the year has been included in the Management Discussion and Analysis, which forms part of the Annual Report.
After 31.03.2010, the Company has capitalized the entire amount of Rs. 115.712 million from Security Premium Account and Rs. 225.536 million from General eserves for issuing fully paid-up bonus equity shares.
Performance of Major Joint Venture Companies: Detailed discussion on performance of each joint venture Company is covered
in Management Discussion and Analysis Report.
1. Zydus Nycomed Healthcare Private Limited (ZNHPL):
This 50:50 joint venture between the Company and Nycomed GmbH, is a 100% EOU situated at Navi Mumbai. This JV Company achieved turn over of Rs.1786.5 million for the year ended on 31.12.2009 as against Rs.1747.100 million in the previous year. The net profit of the Company was Rs.1139.400 million as against Rs.1241.300 million in the previous year.
2. Zydus Hospira
Oncology Private Limited (ZHOPL):
This 50:50 joint venture Company has set up manufacturing facilities near Ahmedabad and got approval of USFDA, Medicines and Healthcare Products Regulatory Agency, UK (MHRA) and Department of Therapeutics Goods Administration, Australia (TGA). ZHOPL has commenced its commercial operations from May, 2009. ZHOPL has earned total income of Rs. 1702.000 million and Profit after Tax of Rs. 504.000 million for the year ended on 31.03.2010.
3. Zydus BSV Pharma Private Limited (ZBSV):
This is a 50:50 joint venture between the Company and
Bharat Serums and Vaccines
Limited. ZBSV's novel and patented oncology product continued to perform
well in the Indian market. ZBSV completed the Phase I clinical trial during the
year and has initiated the Phase II / III Clinical Trials. ZBSV has also sought
the opinion from the US FDA for the pivotal trials for approval in the
4. Zydus Noveltech
Inc.,
This Joint Venture is between the Company and Dr. Sharad Govil, a technocrat. ZN is formed for
sales, marketing and distribution of
non-oral dosage form generic
and brand name drugs using
drug delivery system technologies in
several therapeutic areas
targeted for
5. Zydus Technologies
Limited (ZTL):
This JV Company has set up its Research and Development and Manufacturing facilities at SEZ near Ahmedabad. ZTL will commence the developmental activities in 2010-11. ZTL will develop and manufacture NDDS products for export to the developed countries.
Overseas Acquisitions/Merger During the year under report, the company through subsidiaries has made the following overseas acquisitions:
1. Pursuant to an
agreement Zydus Healthcare S.A. (Pty.) Limited
('ZHSA') has acquired remaining 30% stake in Simayla Pharmaceuticals
(Pty.) Limited,
opportunities for the group in a market which is USD 5 bn (IMS 2009). Now, Simayla has become a wholly owned subsidiary of ZHSA.
2. ZHSA has purchased
100% stake in Newshelf 1034
(Proprietary) Limited,
MANAGEMENT DISCUSSION AND ANALYSIS: Economy and Industry Overview Global Economy and the Pharmaceutical Industry The acute phase of the financial crisis which surfaced in 2008 and was at its peak in 2009 seems to have passed its worst and a global economic recovery looks to be underway. After several months of downturn and deep global recession, economic growth has turned positive towards the end of 2009-10. After a 2.2% decline in 2009, the global economy is expected to grow at the rate of 2.7% in 2010, and developing nations are expected to contribute more to this growth compared to the developed nations. This has, however, been possible after a wide range of government bail-outs in various countries which supported demand and reduced uncertainty and systematic risk in the financial markets. Global industrial production and trade have stabilised and are recovering, but still remain fragile.
However, it is feared that the recovery process is expected
to slow down as the financial stimulus
packages provided by the governments
would be withdrawn sooner
or later. The economic crisis in the
western European countries, particularly in
The
pharmaceutical industry, which was
historically considered to be
relatively immune to
such downturns, was also affected
by the ongoing economic recession. The global
pharmaceutical industry is estimated to have grown by over 5.5% and crossed $
800 bn. The growth rate has slowed down compared to the average growth rate of
6.8% registered between 2003 and 2008.
The highly developed and matured markets of North America, Europe and
Generics continue to outpace patented drugs in terms of growth on all fronts - volume, value and prescription. Globally, generics account for over half of the volume sales and continue to increase their penetration, though their contribution in value is only 15%, underscoring the well known vast cost differential between patented and generic drugs. The global generics market is expected to be well on track, with growth climbing to over 7.5% in 2009. The generics market is quite concentrated with eight key markets holding 76% of generic sales. (Source: IMS Health).
Declining R and D productivity of 'big pharma' companies, no major 'block-buster' drug expected in the near future and lacklustre growth from existing blockbusters coupled with increasing generic penetration, have forced the big pharma companies to think of alternative strategies for growth. These include entering the generics space either from scratch or through acquisition, strengthening their presence through consolidation, looking at newer growth avenues like biotech, entering 'Pharmerging' markets, improving R and D productivity by entering into contract research with low cost players in India and elsewhere and rationalising costs by outsourcing the manufacturing operations.
The year gone by has witnessed much action in this
direction. In one of the biggest consolidation waves so far, the pharmaceutical
industry saw some of the large sized
deals involving merger /
acquisition of multinational corporations such
as those of Wyeth with
Pfizer, Schering Plough
with Merck, Genentech with Roche,
Solvay with Abbott to name a few. There have been many such strategic buy-outs
and in-licensing deals by innovator companies
in generics, biotech and emerging market space. With regulatory
authorities across the globe becoming more and more stringent, several generic
companies including some Indian companies faced stiff action for non-compliance
in regulatory requirements. This has been an eye-opener for the generics
industry and generic companies have increased their focus on strengthening
their regulatory compliance levels. The historic healthcare reforms in the
Indian Economy and the Pharmaceutical Industry The Indian economy, as measured by its GDP, is expected to have grown by 7.2% in 2009-10 compared to 6.7% in 2008-09. Though the growth rates have come down from the level of over 9% during 2005 to 2008, it is still remarkable considering the global economic scenario. Moreover, the gradual recovery in GDP growth was broad based, as seven out of eight sectors have shown a growth rate of over 6.5%. Index of Industrial Production (IIP), the barometer of Indian industry, is expected to have grown by around 10% in 2009-10 compared to less than 3% in 2008-09, clearly indicating that the Indian industry is back on the growth track. The rise in capital inflows and increasing foreign investments and weak economic conditions in other countries resulted in sharp appreciation in the Indian Rupee vis-a-vis other currencies. The steep rise in inflation has, however, been a major area of concern. The annual inflation rate measured in terms of Wholesale Price Index (WPI), which was at 1.2% in the beginning of the year, remained negative in the initial period during the year, but started rising in the second half, and was at 9.9% at the end of the year. This has prompted the government to initiate tightening of monetary controls to curb the inflation. (Source: Monthly Economic Report, March 2010 as published by Ministry of Finance, Govt. of India).
The Indian pharmaceutical industry has grown from a modest
Rs. 1500.000 millions in 2008 to over Rs. 75000.0000 millions in 2009.
Operating Highlights
The Company is one of the oldest players in the Indian formulations market for several years. There has been a continuous thrust on improving market presence and market share. The Company has expanded its portfolio by entering newer therapeutic areas organically or through acquisitions, aggressively launching new products with the first mover advantage in several products, gradually shifting its focus from acute segments to fast growing and sustainable chronic segments and enhancing market penetration through field force expansion. These strategic initiatives have helped the Company become one of the dominant players in the Indian formulations market with the leadership position in several therapeutic categories.
During the year 2009-10, the Company's branded
formulations business in
The initiatives taken by the Company in 2008-09 in the areas of nutraceuticals and rheumatology segments have yielded encouraging results. 'Zydus Nutriva' division, which was launched with an addition of 250 people to strengthen the group's position in the nutraceuticals market, grew by over 30% in 2009-10. 'Zydus Synovia' division, created with a field force of 50 people to focus on high-end products for treating rheumatoid arthritis posted growth of over 35% in 2009-10. The formation of a COPD task force for Chronic Obstructive Pulmonary Diseases and a hospital focused 'Topcare' division have helped the Company consolidate its position in niche segments.
The year 2009-10 witnessed a major expansion of field force in the cardiovascular segment with an objective of strengthening the Company's position in this fast growing segment. The Company added a field force of nearly 300 people in this segment in the last quarter of 2009-10, and launched a new division, 'Zydus Cardiva'. The products and field force have been reshuffled and divided between 'Zydus Cardiva' and 'Zydus Medica', which is the existing cardiology division. 'Zydus Cardiva' will cater to the urban market with its range of anti-hypertensive and aspirin combinations. The launch of this division will also help the Company leverage the strengths of both the divisions for the launch of new products in the cardiovascular segment.
To consolidate its position in the respiratory segment, the Company expanded its area coverage by adding nearly 100 people to tap the potential of the anti-asthma inhalation therapy in the mass markets. With a physician focus, these initiatives are expected to start yielding desired results from next year.
The Company continued its thrust on launch of new products
to drive growth, and launched over 30 new products and a similar number of
line extensions in the
formulations market, of which 17 were first in
API and Intermediates
*
The global API
market is estimated to be $90 bn to
$100 bn and
The year 2009-10 has been good for the API business of the Company, which posted a growth of 19%, with exports of APIs and intermediates registering a growth of 28%. This growth was driven by the Clopidogrel Besylate API sales to the key EU customers. Apart from Clopidogrel for the EU market, two new products were also launched in the Indian market, of which Fluticasone Furoate was launched for the first time in India.
Strengthening its regulatory pipeline, the Company filed 14 new DMFs with the US FDA during the year. Apart from commercial business, the API operations continued to support the Company's formulations business by providing the key inputs at the most competitive costs for the Indian, regulated and the emerging global markets. It also contributed to the success of the new product launches in these markets.
Excluding business of the JV with Nycomed.
International
Formulations Business
US Market
The overall pharmaceutical environment in the
(Source: IMS Health). The recent healthcare reforms enacted
by Barack Obama government are expected
to bring several changes in the
pharmaceutical industry in the
Zydus Pharmaceuticals (USA) Inc., the Company's 100%
subsidiary in the
This stellar performance has been the result of the Company's several initiatives in developing and launching difficult to make technology products rather than hyper competitive generics. Thus, the Company targets niche, low competition, and high margin products while increasing the customer base and growing market presence through novel partnership solutions and offerings. The Company's continuous endeavour to improve service levels have helped it achieve close to 100% service satisfaction level of the customers. Strict adherence to the regulatory requirements and rigorous compliance with the quality norms have also helped the Company gain confidence of the customers in a scenario where several other generic manufacturers have been facing regulatory challenges.
The
competitive, the Company is continuously working on several initiatives to bring in increased efficiency in operations and rationalise costs across the board, ensuring that quality and service levels are not compromised. The generic industry is also facing a challenge in the form of reduced rate of ANDA approvals by the US FDA as the average time from filing to approval of ANDA has increased to over 24 months. The Company is working with GPHA (Generic Pharmaceutical Association) to help design and implement programmes to address this issue at the US FDA.
Going forward, the Company's growth momentum in the US market will continue with a thrust on its four pronged strategy of offering large basket of products, strict compliance of regulatory norms and superior quality standards, gaining competitive edge through supply chain transactional excellence and customer centric approach. The Company would continue launching value added generic products that drive incremental sales and margins for itself as well as for its customers. The initiatives started in the areas of filing ANDAs for other dosage forms like pulmonary, nasal and injectible products are also expected to take the Company onto a higher growth trajectory.
The Company has been present in the French generics market through its subsidiary Zydus France SAS. The acquisition of Laboratorios Combix marked the Company's entry into the Spanish market in 2008.
The overall French generics market was valued at over Euro 2.5 bn in 2009, which represented a growth of 15% over the previous year. The represented generics market in which the Company is present was worth about Euro 1.6 bn, and also grew at 15%. This healthy growth in the market was due to a range of patent expiries of which two in particular, Pantoprazole and Clopidogrel, were significant. The Spanish generic market grew by 5% to reach Euro 713 Mio. in 2009. (Source: IMS Health)
Against this
backdrop, the Company's European operations registered sales of
Rs. 2,740 million,up by 31%
y-o-y. Sales of Clopidogrel in
The focus on new product launches continued during the year, and the Company launched 14 new molecules (28 SKUs) in France in 2009-10, including the launch of 8 molecules on Day One of patent expiry. All these
initiatives have helped the Company strengthen its position, which is now among top 10 generic companies in France with 2.65% share in the participated market segment.
The product portfolio in the Spanish market has
reached 27 products
in 2009-10. The Company's initiatives in the field of filing
more and
more product dossiers from
In 2010-11, the French generics market is expected to grow at 9%. This growth will be driven by some of the major molecules losing patent protection. The Company expects the market to remain competitive and is
focused on ensuring a steady stream of new products to increase its presence in the market.
The forthcoming year
will be an interesting one for the company in
pharmacists. It is believed that the two actions may serve to offset each other and therefore the impact on the business of the Company would be limited.
The Brazilian pharmaceutical market is one of the seven 'Pharmerging' markets, valued at over $15 bn and has been growing at approximately 11%. Of this, the branded generics market is valued at over $13 bn, and has been growing at over 9%, while unbranded generics market is valued at over $2 bn which has been growing at much higher rate of approximately 20%. (Source: IMS Health).
In the branded generics space, Nikkho further strengthened its position through introduction of new products in the neuro-psychiatric segment, taking the total number of products in this range to six. This initiative will create a new growth platform for the Company in the future. The focus on people development through trainings in relevant areas through internal and external faculties was a major thrust area, so as to increase the productivity with optimised manpower level. The unbranded generics business of the Company also continued to progress well, which now ranks 14th in the list of unbranded generic companies. (Source: IMS Health)
To meet the increasing
demand in the market, expansion of the capacity
of the manufacturing facility of Nikkho in
surge in demand.
The events which might change the dynamics of the pharmaceutical market in Brazil are the forthcoming presidential elections at the end of the year 2010, consolidation of the market players through mergers and acquisitions, change in distribution dynamics with supermarkets introducing large pharmacy chains to dilute distributors' role by direct purchase from the companies and ANVISA, the Brazilian regulatory authority, becoming more stringent in terms of compliance. The Company is well geared to face these challenges and take advantage of the opportunities offered by these developments. It would continue its thrust on new products and create a future pipeline of interesting and promising products.
With approximately $80 bn value,
Nippon Universal
Pharmaceutical (Nippon), the
Company's subsidiary
spearheading its operations in
Expansion in product
portfolio is a
key factor to
meet the stiff competition in the
generics market. Towards this end,
intensive product development, registration
and launch programmes for the
Japanese market from
The
Overall, the Company's Japanese operations registered sales of Rs. 316.000 Million in 2009-10, up by 44%.
Consumer Healthcare and Wellness Business The increasing consciousness of the Indian consumers towards health and wellness, rising affordability and willingness to spend more on fitness, the consumer wellness business provides tremendous opportunity for growth. Products which are healthy, nutritious and nourishing have a tremendous potential in the consumer wellness domain.
The Company's presence in this rapidly growing segment is marked by Zydus Wellness Limited. (ZWL), a publicly listed subsidiary in which it owns ~72% stake. ZWL was created after restructuring of the Company's consumer business which was operated under two different corporate entities. This was done to leverage strengths of both the entities and gain benefits of synergies in terms of focused management, combined marketing and brand promotion and availability of more funds for investment in R and D in the wellness space.
ZWL has a legacy of building strong brands in the niche categories which enjoy top of the mind recall amongst the consumers in the wellness segment. The Company has been creating and developing novel categories with the launch of brands like 'Sugar Free' in the sugar substitutes segment, 'EverYuth' in the skin-care segment and 'Nutralite' in the premium table-spread segment. Through continuous scientific promotion, creating an awareness on the health aspects and with expansion of the categories through launch of variants and newer versions of the products, these brands have come to enjoy a strong leadership in their respective categories and virtually define the categories themselves.
During the year 2009-10, ZWL maintained its track record of achieving newer zenith with an all-round performance from all the three pillar brands, and registered sales of Rs. 2675.000 Million, up by 37% and net profit of Rs. 453 Million, up by 90%. All the three brands grew by over 25%, and maintained their leadership positions in their respective categories. Focused promotion and advertising helped the Company achieve this performance. Its initiatives in the field of category expansion continued with the launch of 'Menz', an exclusive skin-care range for men under the EverYuth banner. 'Menz' provides skin-care solutions for men who are far more exposed to heat and pollution than women. Several other newer variants under the three broad categories are under way and planned to be launched in the near future.To cater to the growing demand of Sugar Free and EverYuth, which are outsourced at present, ZWL is setting up a manufacturing facility in Sikkim, which is expected to be commissioned in 2010-11. This state of the art facility will be sufficient to meet the supply requirements for the next five to seven years.
ZWL envisions creating newer experiences with its products that will nourish, nurture and energise the lives of the consumers and aims at becoming a Rs. 500.000 Million company by 2013-14. With a continuous thrust on strengthening its brand portfolio through promotion and expansion to reach more consumers, launch of newer variants within the existing categories and exploring possibilities of entering newer categories in the wellness domain, ZWL is confident of achieving its vision and bringing wellness to the lives of all its stakeholders.
Animal Health
Business:
The Company is present in the animal health market in India through its 100% subsidiary Zydus Animal Health Limited., (ZAHL), which is one of the leading companies in this segment having a strong high market share in several therapeutic areas. ZAHL offers several products meant for the livestock and poultry segments.
During the year 2009-10, sales of ZAHL grew by 8% to Rs. 1191.000 Million. Poor monsoon had an impact on the rural economy and also the livestock business, the bird flu outbreak in some parts of the country had an unfavourable impact on the poultry business. Despite such challenges, ZAHL remained focused on the effective promotional activities, right product mix and necessary austerity measures.
Being a leading animal health company, ZAHL believes in ensuring newer solutions in disease prevention, treatment and improving overall productivity of the animals. During 2009-10, ZAHL launched 8 new products including 'Home Food Plus' granules - a new concept to nutritionally balance the diet of the canines. ZAHL also organised several seminars and camps for the benefit of the farmers, pet owners and the veterinarians, who are its key stakeholders.
Performance and
progress of JVs:
Zydus Nycomed Healthcare Private Limted.
Zydus Nycomed, the 50:50 JV between Zydus and Nycomed for manufacturing of key starting materials (KSM) for Pantoprazole continued its consistent quest for excellence by recording yet another good year. The JV caters to over 60% of the global requirement of intermediates (KSM's) for the anti-ulcerant Pantoprazole. Apart from being accredited with ISO:9001:2008, the quality of supply together with the prompt delivery schedules paved way for the JV to be chosen as the hub of global supplies for a gamut of APIs by Nycomed.
During the year 2009-10, the JV posted sales of Rs. 1515.000 million. and Net Profit of Rs. 929.000 million., 50% of which is accounted for as the Company's share.
The expansion project for the JVs manufacturing facility is on the verge of completion. The JV would start commercial supply of several other APIs apart from the KSMs of Pantoprazole by the end of next year. This expansion in the scope of the JV will strengthen its performance in the years to come.
Zydus Hospira Oncology Private Limited The year 2009-10 marked the beginning of the commercial
operations of Zydus Hospira, the Company's
50:50 JV with Hospira Inc.,
During the year
under review, the
USFDA inspection of
the JV's manufacturing facility
was successfully carried
out, and
the facility received the approval from the USFDA, which enables
the JV to supply the products
to the US market also. Apart from this, the second inspection of
the facility by
MHRA of the EU was
also completed successfully.
In addition, the site has also got an approval from
Going forward, the JV plans to expand the product base to five products next year. The remaining two products are in the pipeline and their process validation batches have been taken up while the data is under submission for market registration. Apart from expanding the product base, the markets that the JV will cater to, will also beincreased.
The contribution of the JVs into the consolidated revenues and profits of the Company have been protected, even after reduction in volumes of Zydus Nycomed JV. The gap that has been bridged by Zydus Hospira JV, is shown below:
Zydus BSV Pharma Private Limited
Zydus BSV Pharma Private Limited (ZBSV) is a 50:50 JV set up in alliance with Bharat Serums and Vaccines Limited ZBSV owns rights to a novel and patented product for use in the oncology segment. Apart from this, ZBSV also operates in the generic oncology segment by way of contract manufacturing. ZBSV's business plans are supported by its state-of-the-art manufacturing facility at the SEZ near Ahmedabad.
For a novel patented product, the JV completed the Phase I
clinical trials, the outcome of which
has been in line with the expectations. As
the next step, for
the approval of this product in
the US and Europe, ZBSV
has already finalised the clinical trial designs and has sought the
opinion of the US FDA by way of pre-IND submission.
Simultaneously, the Phase II/III
clinical trials have
already been initiated
to facilitate market development in
The market potential for ZBSV's novel product continues to remain very attractive as it is in the area of targeted therapy for some of the most common and difficult to treat cancers.
For the generic oncology business, an ANDA has been submitted under a contract manufacturing arrangement and the Company is now awaiting the audit and approval of the same. Apart from these initiatives in the contract manufacturing business, ZBSV is also developing its own generic product portfolio.
Manufacturing Operations The brisk progress which the Company has made across various geographies and verticals would not have been possible without the strong support in terms of backward integration from its state-of-the-art manufacturing facilities. These facilities have been instrumental in consistently catering to the demand for high quality products at the most competitive costs, and have given the Company an edge in this highly competitive scenario and have helped grow the business.
Formulation Manufacturing During the year 2009-10, our tablet facility and lyophylisation facility of Moraiya plant successfully completed the AFSSAPS (French regulatory authority) and the EU GMP audit.
To meet the increasing demand across the markets and ensure timely availability of products, capacity upgradation, enhancement and balancing of several facilities have been carried out. In the Moraiya plant, two
additional tablet manufacturing facilities have been
commissioned which are dedicated for
specific products and markets. A facility for
manufacturing nasal products has
also been started at
Moraiya, while the
injection facility is now
ready for the US FDA inspection. For
the
for the US FDA inspection. Construction has begun on two
additional tablet manufacturing facilities
for the
Various streamlining
initiatives were also undertaken during the
year to ensure maximum productivity and better utilisation
of all the facilities. The Company has developed and implemented a unique
in-house Track and Trace system called
ZEET - Zydus End to End Tracking system for all packing lines for the
The Company's continuous efforts to bring in operational efficiency have
been rewarded during the year -
(i) The Company won the 'IMAI OE Award for the Pioneering and Paradigm Shifting Applications of OE in Tablet Manufacturing' by the KAIZEN Institute.
(ii) It also bagged the 'Best - In Class Manufacturing Award (Pharma Sector)' by Stars of the Industry Awards.
APIs and Intermediates Manufacturing The API and intermediate manufacturing facilities at
Ankleshwar and Dabhasa (both in Gujarat)
have maintained their
track record of
maximising efficiency and cost effectiveness through various initiatives, and
have successfully improved yield of various products. Capacity balancing
and upgradation of several
chemical plants in these facilities
have been carried out to cope with the growing demands from the
global markets and captive requirements of formulations manufacturing. A
new chemical plant for Clopidogrel was
also commissioned at Dabhasa in
Ahmedabad. With this, Zyfine became the only Contract Manufacturing Organisation offering services in the high potency actives area in India to have a USFDA approved facility. Construction of a new facility near Ahmedabad for manufacturing oncology APIs has also been initiated during the year.
.
Environment, Health
and Safety
The Company aims for excellence in Environment, Health and Safety (EHS) by engaging and involving every stakeholder across the Company and by creating a unique culture of commitment and dedication to our core principles of EHS management. To attain the objective, the Company continues to invest substantial resources towards sustaining and continuously improving standards of environment, occupational health and safety in a bid to go beyond legal requirement.
During the year 2009-10, effective monitoring and counselling visits across the business locations were carried out for EHS compliances by the team members of dedicated EHS Cell. To create an awareness about EHS and the need for compliance with regulations among the employees, an EHS meet was arranged for all the units of the Company located in India with an exhibition of unique EHS products. The process for getting accreditation for compliance with EHS related regulations for all the units was also initiated and so far nine units have been certified by ISO 14001 and OHSAS 18001. With well defined strategy for water conservation, significant reduction of fresh water consumption was achieved. As a part of its commitment to environmental protection, the Company has implemented Effective In-Plant Effluent Segregation System,which leads to effective operation of effluent treatment plants and in turn provides effective solvent recovery.
Pharmaceutical Technology Development The Pharmaceutical Technology Centre (PTC), the Company's formulations development centre is responsible for developing formulations for the regulated and other emerging markets. The capabilities which PTC has developed over the years have helped the Company have an edge in the global generics space with differentiated product offerings.
During the year, PTC continued its product development
efforts at the same pace and
filed over 100 product applications for the global
markets. A summary of the filings
made by PTC in the focused regulated markets of
the
The US ANDA filings of 14 for the year 2009-10 include 8 ANDAs for injectible products. PTC has also initiated development of products in ointments, creams and oncology areas, and filings for such products would start going forward. Such filings in different dosage forms and therapies and products involving difficult technologies would help the Company to have an edge over other players and continue its growth momentum.
PTC is also well equipped with an in-house clinical packaging facility which is expected to bring cost reduction in the packaging development area.
Chemical Process Research The Company's vertically integrated API manufacturing capabilities have been the backbone to its success in the global generic formulations markets. Continuous process improvement and cost reduction in the manufacturing of these APIs have been the key factors to the Company's ability to sustain price erosions in the generics market. The Company's API process research and development teams have been spearheading these initiatives.
During the year 2009-10, the Company set up a new API R and D hub at Dabhasa, which will focus on developing processes for the regulated and non-regulated markets. With 10 research labs supported by an analytical lab, the centre has a team of 150 researchers working in these areas. The main areas of focus at the API R and D hub are to develop and file API Drug Master Files (DMFs) for the regulated markets, develop newer APIs to be manufactured in-house and reduce cost and improve processes of existing APIs.
The API R and D Centre has developed 24 products for DMF filings, and made 14 DMF filings with the US FDA during the year 2009-10. Apart from this, it has also developed 12 new products for the Indian market. On the cost reduction front, API R and D, through various process improvement initiatives, has substantially reduced the cost for 20 products, and filed over 20 process patents. It has also contributed in scaling up and commercialising several products for their launch.
Contingent liaBILITIES NOT
PORVIDED FOR:-
Rs. In millions
|
Particulars |
31.03.2010 |
|
In respect of guarantees given by Banks and counter guarantees given
by the Company. |
135.000 |
|
In respect of letter of comforts /corporate guarantees given by the
Company to Banks for the outstanding dues of loans availed by some of the
subsidiary companies and a joint venture company |
4294.000 |
|
Claims against the Company not acknowledged as debts [ Including Rs. 8
{ as at 31.03.2009 : Rs. 8.000 } Millions in respect of Amalgamated {*}
Companies ] |
68.000 |
|
In respect of the demand raised by the Central Excise, State Excise
and Service Tax dept. against which the Company has preferred an appeal. The
Company has been legally advised that the demand is not tenable.[ Including
Rs. 9 { as at 31.03.2009 : Rs. 9.000 } Millions in respect of Amalgamated {*}
Companies ] |
49.000 |
|
In respect of the demand raised by the Ministry of Chemicals and Fertilizers, Govt. of India
under Drug Price Control Order, 1979 for difference in actual price and price
of respective bulk drug allowed while fixing the price of certain life saving
formulations and disputed by the Company. Based on the legal advice the
Company does not foresee the crystallization of the liability. [ Including
Rs. 42.000 { as at 31.03.2009 : Rs. 42.000 } Millions in respect of
Amalgamated {*} Companies] |
227.000 |
|
In respect of Income Tax matters pending before appellate authorities
which the Company expects to succeed, based on decisions of Tribunals /
Courts. |
12.000 |
|
In respect of Sales Tax matters pending before appellate authorities /
Court which the Company expects to succeed, based on decisions of Tribunals /
Courts. Note:[ * ] represents contingent liabilities taken over by the Company
under the Scheme of Arrangement and Amalgamation of Cadila Laboratories
Limited, and erstwhile Cadila Chemicals Limited, Cadila Antibiotics Limited,
Cadila Exports Limited and Cadila Veterinary Private Limited with the
Companvw.e.f. 01.06.1995. |
74.000 |
AUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 31.03.2011
|
Particulars |
3 months period ended on 31.03.2011 |
Year to date figures for the current year ended on 31.03.2011 |
|
Sales / Income from Operations |
|
|
|
Gross Sales |
5145.300 |
2212.900 |
|
Less: Excise Duty |
96.900 |
350.600 |
|
Net Sales |
5048.400 |
21762.300 |
|
b) Other Operating Income |
1907.100 |
7436.500 |
|
Total Operating Income |
6955.500 |
29198.800 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
30.400 |
(350.600) |
|
(b) Consumption of Materials |
1950.800 |
6767.000 |
|
(c) Purchase of traded goods |
516.800 |
2283.000 |
|
(d) Employees Cost |
1321.500 |
3872.400 |
|
(e) Depreciation, Amortisation and Impairment |
246.700 |
968.500 |
|
(f) Other Expenditure |
2127.800 |
9549.900 |
|
Total Expenditure |
6194.000 |
23090.200 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
761.500 |
6108.600 |
|
Other Income |
24.600 |
581.300 |
|
Profit/(Loss) before Interest and Exceptional items |
786.100 |
6689.900 |
|
Interest |
90.400 |
395.000 |
|
Gain / Loss on Exchange rate fluctuations on foreign currency loans |
(64.900) |
(76.900) |
|
Total Financial Cost |
25.500 |
318.100 |
|
Profit / (Loss) after interest before Exceptional items |
760.600 |
6371.800 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
7606.600 |
6371.800 |
|
Tax Expense |
(137.000) |
268.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
897.600 |
6103.800 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
897.600 |
6103.800 |
|
Adjustment on consolidation Income / Expenses |
0.000 |
0.000 |
|
Net Profit/(Loss)
for the period |
897.600 |
6103.800 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.5/- each ) |
1023.700 |
1023.700 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
|
Earning per share
(EPS) |
|
|
|
-Basic and Diluted EPS before extraordinary items |
4.38 |
29.81 |
|
-Basic and Diluted EPS after extraordinary items |
4.38 |
29.81 |
|
Public Share Holding |
|
|
|
- Number of Shares |
51610474 |
51610474 |
|
- Percentage of shareholding |
25.21% |
25.21% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
NA |
NA |
|
- Percentage of shares(as a % of the total share capital of the company) |
NA |
NA |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
153138046 |
153138046 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
74.79% |
74.79% |
NOtes:
1. The above results for the quarter / year ended on 31.03.2011 were reviewed by the Audit Committee on 05.05.2011 and then approved by the Board of Directors at their meeting held on 06.05.2011.
2. In Consolidated Accounts, the accounts of foreign subsidiaries / a Joint Venture Company are audited up to 31.12.2010 and subjected to limited review by their auditors for the balance period up to March 31, 2011 wherever applicable.
3. The Board of Directors have recommended a dividend of Rs. 6.25/- [ @ 125%] per equity share on 204,748,520 equity shares of Rs. 5/- each for the financial year ended on 31.03.2011.
4. *Earning per share in item 18 A and B for the three months period / year ended on 31.03.2010 is calculated taking into account the allotment of bonus shares issued by the company, to make the figures comparable.
5. During
the quarter the Company has entered into 50:50 Joint Venture with Bayer [
6. The
Company has incorporated Zydus Lanka [Private] Limited as a wholly owned
subsidiary Company in
7. The changes in Investments during the quarter are as under :
Zydus BSV Pharma Private Limited [ Additional Investment ] Rs. 11.000 millions
Bayer Zydus Pharma Private Limited Rs. 250.000 millions
8. The status of investor complaints :
Pending at the beginning of the quarter - Nil, received and disposed off during the quarter - 19, pending at the end of the quarter - Nil
9. The Company has one segment of activity viz., “Pharmaceuticals”.
10. The detailed standalone results will be available on the Company’s website : www.zyduscadila.com and / or on the website of BSE [ www.bseindia.com ] and / or NSE [ www.nseindia.com ]. The summarised Audited standalone financial results of the Company are as below.
AUDITED
STATEMENT OF ASSETS AND LIABILITIES AS AT 31.03.2011
Rs. In millions
|
Sr. No |
Particulars |
accounting year ended on
31.03.2011 |
|
1 |
Shareholders
Funds |
|
|
A. |
Capital |
1023.700 |
|
B. |
Reserves And
Surplus |
19875.400 |
|
2 |
Loans Funds |
5640.000 |
|
3 |
Minority
Interest |
0.000 |
|
4 |
Deferred Tax
Liability / (Asset) |
1193.000 |
|
5 |
Total Sources Of Funds |
27732.100 |
|
6 |
Fixed Assets |
12703.200 |
|
7 |
Investments |
6987.800 |
|
8 |
Current Assets, Loans And Advances : |
|
|
a. |
Inventories |
4645.200 |
|
b. |
Sundry Debtors |
4750.800 |
|
c. |
Cash And Bank
Balances |
423.800 |
|
d. |
Loans And
Advances |
5060.800 |
|
|
Less: Current Liabilities And Provisions |
|
|
a. |
Liabilities |
5035.500 |
|
b. |
Provisions |
1804.000 |
|
10 |
Foreign Currency
Monetary Items Translation Difference Account |
0.000 |
|
11 |
Total Application Of Funds |
27732.100 |
Fixed Assets:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture, Fixture and Office Equipments
·
Vehicles
·
Trademarks, Patents and Designs
·
Technical Know-how
·
Commercial Rights
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.44.77 |
|
|
1 |
Rs.73.45 |
|
Euro |
1 |
Rs.64.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
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 |
|
64 |
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.