MIRA
INFORM REPORT
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Report Date : |
20.06.2011 |
IDENTIFICATION DETAILS
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Name : |
CIPLA LIMITED |
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Registered Office : |
Mumbai Central, Mumbai – 400 008, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
17.08.1935 |
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Com. Reg. No.: |
11-002380 |
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Capital Investment / Paid-up Capital : |
Rs.1605.800 millions |
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CIN No.: [Company
Identification No.] |
L24239MH1935PLC002380 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC00352C |
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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 : |
Manufacturer and Marketer of Bulk Drugs and Formulations. |
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No. of Employees : |
2200 (Approximately) |
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RATING & COMMENTS
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MIRA’s Rating : |
Aa (77) |
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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 236560000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having good track. Financials position of the company appears to be sound. Directors are experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 : |
Mumbai Central, Mumbai – 400 008, |
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Tel. No.: |
91-22-23095521 / 23082891 / 23023272 |
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Fax No.: |
91-22-23070013 / 23070393 / 85 / 23008101 |
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E-Mail : |
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Website : |
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Factory 1: |
MIDC, Patalganga – 410 220, District Raigad, Maharashtra, India |
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Factory 2: |
Bommasandra-Jigani Link Road, Industrial Area, KIADB 4th Phase, Bengaluru - 560 099, Karnataka, India |
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Factory 3: |
MIDC Industrial Area, Kurkumbh-413802, District Pune, Maharashtra, India |
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Factory 4: |
LBS Marg, Vikhroli (West), Mumbai – 400083, Maharashtra, India |
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Factory 5: |
Virgonagar, Old Madras Road, Bangalore – 560049, Karnataka, India |
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Factory 6: |
Verna Industrial Estate, Verna – 403 722, Salcette,
Panaji, |
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Factory 7: |
Village Malpur Upper, P. O. Bhud, Nalagarh,Baddi-173205,
Dist: Solan, |
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Factory 8: |
Village Kumrek, P.O. Rangpoo-737 132, East District, Sikkim |
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Factory 9: |
ISEZ, Phase ll, Sector III, Pharma Zone, P.O. Pithampur-454 774, District: Dhar, Madhya Pradesh, India |
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Sales Office: |
Located At :
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Branch Office : |
289, |
DIRECTORS
AS ON 31.03.2010
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Name : |
Dr. Y. K. Hamied |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Amar Lulla |
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Designation : |
Joint Managing Director |
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Name : |
Mr. M. K. Hamied |
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Designation : |
Joint Managing Director |
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Name : |
Dr. H. R. Manchanda |
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Designation : |
Non-Executive Director |
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Qualification : |
M.B.B.S., F.R.C.S. |
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Experience : |
1.
Consultant Surgeon at 2.
Professor of Surgery and Head of Surgery at Haffkine Institute – Board Member |
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Year of
Appointment : |
1983 |
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Name : |
Mr. S. A. A. Pinto |
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Designation : |
Non-Executive Director |
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Qualification : |
M.A.(Economics), LL.B |
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Experience : |
1. Kotak Mahindra Finance Limited – Director and Member of Audit Committee and Chairman of Investor Relations Committee 2. Kotak Mahindra Private-Equity Trustee Limited – Chairman |
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Year of
Appointment : |
1983 |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. R. Raghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ramesh Shroff |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pankaj Patel |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Mr. N R Moorthy |
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Designation : |
Practicing Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
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Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
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(A)
Shareholding of Promoter and Promoter Group |
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122,720,500 |
15.28 |
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6,022,791 |
0.75 |
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128,743,291 |
16.03 |
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166,742,687 |
20.87 |
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166,742,687 |
20.87 |
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Total
shareholding of Promoter and Promoter Group (A) |
295,485,978 |
36.98 |
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(B)
Public Shareholding |
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48,150,481 |
6.03 |
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2,475,939 |
0.31 |
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98,609,816 |
12.34 |
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122,537,934 |
15.33 |
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271,774,170 |
34.01 |
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35,389,153 |
4.43 |
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55,262,161 |
6.92 |
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112,737,128 |
14.11 |
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28,443,437 |
3.56 |
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427,917 |
0.05 |
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223,003 |
0.03 |
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26,851,097 |
3.36 |
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941,161 |
0.12 |
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259 |
0.00 |
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231,831,879 |
29.01 |
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Total
Public shareholding (B) |
503,606,049 |
63.02 |
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Total
(A)+(B) |
799,092,027 |
100.00 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
3,829,330 |
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Total
(A)+(B)+(C) |
802,921,357 |
100.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs.0.100 million BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of Bulk Drugs and Formulations. |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2010
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Bulk Drugs (including Malts) |
Tonnes |
1866.1 |
1316.9 |
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Tablets and Capsules |
Million |
16662.4 |
16632.9 |
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Liquids |
Kilolitre |
1346.4 |
8600.9 |
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Creams |
Tonnes |
861.3 |
1021.7 |
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Aerosols/Inhalation Devices |
Thousand |
96030.0 |
53387.5 |
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Injections/Sterile Solutions |
Kilolitre |
1168.0 |
2204.0 |
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Others |
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440.4 |
NOTES
i. The installed capacity is as certified by the management and not verified by the auditors, this being a technical matter.
ii. Actual production includes production at loan licensee locations.
iii. Actual production includes production of goods captively consumed.
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
2200 (Approximately) |
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Bankers : |
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Facilities : |
Note A sum of Rs.8.300
millions (Previous year Rs.9326.100 millions) is repayable out of Unsecured
Loans within the next 12 months. * There are no
amounts due and outstanding to be credited to Investor Education and
Protection Fund. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Chartered Accountants
Chartered Accountants |
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Address : |
Mumbai, |
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Subsidiaries : |
Cipla FZE, U.A.E. |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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87,50,00,000 |
Equity Share |
Rs.2/- each |
Rs.1750.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,39,24,752 |
Equity Share |
Rs.2/- each |
Rs.1607.800
millions |
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Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,29,21,357 |
Equity Share |
Rs.2/- each |
Rs.1605.800 millions |
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Of the above Equity Shares:
i. 75,83,20,444
shares of Rs.2 each were allotted as fully paid-up Bonus Shares by capitalization
of General Reserve and Securities Premium Account.
ii. 8,488 shares
of Rs.2 each were issued for consideration other than cash pursuant to the
Scheme of Arrangement in September 2004.
iii. 2,56,30,000 shares of Rs.2 each were allotted
pursuant to Qualified Institutions Placement (QIP) in September 2009.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1605.800 |
1554.600 |
1554.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
57535.100 |
41952.900 |
36003.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
59140.900 |
43507.500 |
37558.200 |
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LOAN FUNDS |
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1] Secured Loans |
4.100 |
27.900 |
140.900 |
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2] Unsecured Loans |
46.600 |
9374.500 |
5263.600 |
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TOTAL BORROWING |
50.700 |
9402.400 |
5404.500 |
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DEFERRED TAX LIABILITIES |
1791.500 |
1641.500 |
1491.500 |
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TOTAL |
60983.100 |
54551.400 |
44454.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
20111.700 |
19924.900 |
16613.600 |
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Capital work-in-progress |
6842.400 |
3663.200 |
2331.200 |
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INVESTMENT |
2651.000 |
813.200 |
947.500 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
15125.800
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13983.200 |
11204.900 |
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Sundry Debtors |
15527.100
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18371.500 |
13939.100 |
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Cash & Bank Balances |
608.400
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530.000 |
792.800 |
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Other Current Assets |
578.200
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234.500 |
344.900 |
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Loans & Advances |
11681.800
|
9126.500 |
11158.100 |
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Total
Current Assets |
43521.300
|
42245.700 |
37439.800 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Sundry Creditors |
8056.100
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8709.800 |
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Current Liabilities |
1923.500
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2554.400 |
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Provisions |
2163.700
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1967.100 |
4168.100 |
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Total
Current Liabilities |
12143.300
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12095.600 |
12877.900 |
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Net Current Assets |
31378.000
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30150.100 |
24561.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
60983.100 |
54551.400 |
44454.200 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
53595.200 |
49606.000 |
39979.000 |
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Other Income |
3537.200 |
3552.200 |
3403.100 |
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TOTAL (A) |
57132.400 |
53158.200 |
43382.100 |
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Less |
EXPENSES |
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Material Cost |
24529.800 |
23474.000 |
20427.100 |
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Employee Cost |
3188.700 |
2713.300 |
2140.100 |
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Manufacturing Expenses |
2310.500 |
2226.000 |
1940.700 |
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Other Expenses |
10414.600 |
11529.500 |
7168.900 |
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Research and Development Expenses |
2506.900 |
2355.000 |
2045.700 |
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Exceptional Item being sale of branch and other related rights |
(950.000) |
0.000 |
0.000 |
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TOTAL (B) |
42000.500 |
42297.800 |
33722.500 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
15131.900 |
10860.400 |
9659.600 |
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Less |
FINANCIAL
EXPENSES (D) |
229.500 |
329.400 |
113.400 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14902.400 |
10531.000 |
9546.200 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1652.500 |
1517.900 |
1162.600 |
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PROFIT BEFORE
TAX (E-F) (G) |
13249.900 |
9013.100 |
8383.600 |
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Less |
TAX (I) |
2435.000 |
1245.000 |
1369.300 |
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PROFIT AFTER TAX
(G-I) (J) |
10814.900 |
7768.100 |
7014.300 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9548.300 |
5099.000 |
3903.500 |
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Less |
APPROPRIATIONS |
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Proposed Dividend |
1605.800 |
1554.600 |
1554.600 |
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Tax on Dividend |
266.700 |
264.200 |
264.200 |
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Transfer to General Reserve |
1500.000 |
1500.000 |
4000.000 |
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BALANCE CARRIED
TO THE B/S |
16990.700 |
9548.300 |
5099.000 |
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EARNINGS IN
FOREIGN CURRENCY |
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|
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Export Earnings |
29005.800 |
27426.900 |
21017.400 |
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|
Technical Know-how/ Fees |
1537.600 |
2174.500 |
1533.900 |
|
|
|
Others |
33.400 |
0.200 |
0.800 |
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TOTAL EARNINGS |
30576.800 |
29601.600 |
22552.100 |
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IMPORTS |
|
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|
|
|
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Raw Materials / Packing Materials |
8461.400 |
9637.900 |
7242.700 |
|
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Components and Spare Parts |
274.600 |
194.300 |
193.500 |
|
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Capital Goods |
1672.300 |
2568.000 |
2029.300 |
|
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TOTAL IMPORTS |
10408.300 |
12400.200 |
9465.500 |
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|
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Earnings Per
Share (Rs.) |
13.69 |
9.99 |
9.02 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
14797.600 |
16153.500 |
15536.700 |
16692.000 |
|
Total Expenditure |
11291.600 |
12487.900 |
12354.900 |
13670.900 |
|
PBIDT (Excl OI) |
3506.000 |
3665.600 |
3181.800 |
3021.100 |
|
Other Income |
167.500 |
166.400 |
256.900 |
203.500 |
|
Operating Profit |
3673.500 |
3832.000 |
3438.700 |
3224.600 |
|
Interest |
1.100 |
2.800 |
29.300 |
18.100 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
3672.400 |
3829.200 |
3409.400 |
3206.500 |
|
Depreciation |
548.200 |
639.100 |
652.500 |
696.500 |
|
Profit Before Tax |
3124.200 |
3190.100 |
2756.900 |
2510.000 |
|
Tax |
550.000 |
560.000 |
430.000 |
370.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
2574.200 |
2630.100 |
2326.900 |
2140.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2574.200 |
2630.100 |
2326.900 |
2140.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total
Income |
(%) |
18.93 |
14.61 |
16.17 |
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Net Profit Margin (PBT/Sales) |
(%) |
24.72 |
18.17 |
20.97 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
20.82 |
14.50 |
15.51 |
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.21 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21 |
0.49 |
0.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.58 |
3.49 |
2.91 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Dr.
Khwaja Abdul Hamied founded The Chemical, Industrial and Pharmaceutical
Laboratories at Mumbai, which came to be popularly known as Cipla. He gave the
company all his patent and proprietary formulas for several drugs and
medicines, without charging any royalty. On August 17, 1935, Subject was
registered as a public limited company. Subject was officially opened on
September 22, 1937 when the first products were ready for the market and now
over 170 countries buy Subject's products. Subject's products and services are
categorized into Prescription, Animal Products, OTC, Bulk Drugs, Flavours and
Fragrances, Agrochemicals and Technology. As the Second World War cuts off drug
supplies, the company starts producing fine chemicals, dedicating all its
facilities for the war effort in 1941. The government accepted Dr. Hamied's
blueprint for a technical industrial research institute in 1942, and led to the
birth of the Council of Scientific and Industrial Research (CSIR), which is
today the zenith research body in the country. In 1944, the company bought the
premises at Bombay Central and decided to put up a "first class modern
pharmaceutical works and laboratory." It was also decided to acquire land
and buildings at Vikhroli. With severe import restrictions hampering
production, the company decided to commence manufacturing the basic chemicals
required for pharmaceuticals. Subject's product for hypertension, Serpinoid,
was exported to the American Roland Corporation, to the tune of Rs.0.800
Millions during the year 1946. The company had lay down the first research
division for attaining self-sufficiency in technological development during the
period of 1952 and the company entered into an agreement with a Swiss firm for
manufacturing foromycene. In 1960 the company started its operations at second
plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on
natural products and the Vikhroli factory was started its manufacturing of
diosgenin in 1961. This heralded the manufacture of several steroids and
hormones derived from diosgenin. Subject manufactures ampicillin in 1968; it
was the first time of its kind in the country. The Agricultural Research Division
at
MANAGEMENT REVIEW:
2009-10
INDUSTRY STRUCTURE
AND DEVELOPMENT
During the year,
positive signs had begun to emerge in many countries, signifying recovery from
the general recession and economic crisis. However, there is high uncertainty,
with one crisis or the other, particularly in
The recovery of
the Indian economy seems to be on track with GDP predicted to grow to higher
levels. Industrial recovery has also gathered momentum in recent months. The
government is expected to adopt a gradual approach while withdrawing policy
stimulus measures so that the recovery is not hampered.
The Indian pharmaceutical
industry maintained its momentum and registered a growth of about 18 per cent,
according to ORG-IMS statistics.
The dynamics of
the Indian pharmaceutical industry is undergoing significant changes.
Multinational corporations are working to entrench themselves as evidenced by
the recent buyouts of the domestic business of major Indian pharmaceutical
organisations. In the coming years, the industry may witness a significant
shift and a consolidation phase. All the major players are trying to reach out
to emerging rural markets in order to expand their reach.
According to a
recent report, the Indian healthcare services industry, which primarily
includes hospitals, is growing at an unprecedented rate of 16 per cent and is
already one of the largest service sectors in the country. The Indian
pharmaceutical industry will need to realign its strategies to cater to this
segment.
PERFORMANCE REVIEW
The Company
achieved an overall growth of about 8 per cent in turnover during the year.
Domestic growth was steady at 10 per cent. According to ORG-IMS, Subject
remained the leader in the domestic market, as on 31st March 2010 with a market
share of 5.38 per cent. However, growth in formulation exports was affected due
to various factors including non-availability of important raw materials, lower
tender business in anti-retrovirals and unfavourable movements in foreign
exchange rate.
MANUFACTURING
FACILITIES
In April 2010, the
Company commenced commercial production of pharmaceutical formulations at its
Special Economic Zone (SEZ) project, at
The Company is
investing about Rs.2500.000 millions in a new R and D and administration
facility at Vikhroli, Mumbai.
Subject is setting
up API facilities at Bengaluru for anti-cancer products. The Company is
upgrading its API facilities at Patalganga to scale-up production. The total
investment for these two projects is estimated to be about Rs.2000.000 millions.
In May 2010, Subject
acquired an undertaking for Rs.306.400 millions, by way of a slump sale
arrangement. The undertaking has a manufacturing facility, approved by US FDA
and WHO, for APIs and intermediates. It is located
at Kurkumbh (Pune
district).
The Company
proposes to subscribe to the share capital of two biotechnology companies,
located in
Work at the
Company’s SEZ project at Kerim,
OPPORTUNITIES
Domestic Markets
Every year, Subject
continues to introduce new products and dosage forms that offer significant
growth opportunities. Subject has chalked out key marketing strategies to tap
the potential offered by the Indian economy and the booming healthcare services
industry. Given the Company’s vast experience spanning a number of therapeutic
categories and the wide range of its products in multiple dosage forms, Subject
is confident of also doing well in these market segments.
The Company will
continue to leverage its brand value to capitalise on existing opportunities
available through trade channels, including stockiest, hospitals and other
institutions.
International
Markets
The Company has
long-standing key alliances for product development and supply with large
generic companies in the developed markets and has over 6,000 product
registrations in more than 170 countries. Subject exports to more than 170
countries worldwide and operates through low-risk, low-cost partnership
arrangements. The large number of products in the registration pipeline will
aid in increasing the Company’s market share.
Subject continues
its focus on existing and new off-patent generic products in the developed
markets. The Company identifies potential opportunities and works with its
strategic partners to market generics when these products go
off-patent. During
the year, Subject maintained its strategy of becoming the identified source of
supply for third party generics companies, thus exploiting new opportunities
for export of generics. Income from technological consultancy services for the
year was about Rs.1540.000 millions. Technology transfer will continue to be a
focus area for the Company.
DRUG PRICING
It is now well
over 5 years since the government announced the drug pricing policy. This
matter has to be approached with seriousness by the concerned authorities. At
some time a policy should be announced, which is open and transparent. Subject
reiterates that open competition is the only way to control and reduce prices.
Monopolies must be discouraged.
Two approaches
have been suggested by Subject. First, all imported patented drug formulations,
where there is a monopoly, should be under price control. All drugs sold in
On several
occasions, Subject has approached the Indian government, offering to give
technology free of charge to the public sector pharmaceutical undertakings, so
that they can manufacture and market important life-saving drugs at economical
prices. With both public and private sectors operating in the same segment,
this would benefit the patients and the country. The government has now
responded to their offer and has agreed to consider their proposal. Subject has
some pending legal cases on account of alleged overcharging in respect of certain
drugs under the Drug Price Control Order. The aggregate amount of the demand
notices received is Rs.11571.200 millions (inclusive of interest). The Company
has been legally advised that based on the directions given by the Supreme
Court, there is no probability of the demand becoming payable by the Company.
Hence, no provision is considered necessary in respect of the aforesaid amount.
However, any unfavourable outcome in these proceedings could have an adverse
impact on the Company.
SUBSIDIARY
COMPANIES
In May 2010, the
Company has set up a wholly-owned subsidiary, “Cipla Singapore Pte. Limited”,
in
In May 2010, Subject
acquired 100 per cent shareholding of a company for Rs.513.800 millions. This
company has a state-of-the-art formulations manufacturing facility at
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31st MARCH
2011
(Rs. in millions)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
(Unaudited) |
|
|
1. a) Gross Sales |
16271.800 |
61725.500 |
|
Less: Excise Duty |
119.600 |
487.100 |
|
Net Sales |
16152.200 |
61238.400 |
|
b) Other Operating Income |
539.800 |
1941.400 |
|
Total Operating Income (a+b) |
16692.000 |
63179.800 |
|
2. Expenditure |
|
|
|
a)(Increase)/ decrease in Stock-in-trade and work
in progress |
(624.900) |
(682.600) |
|
b) Consumption of Materials |
6639.800 |
22991.200 |
|
c) Purchase of Traded Goods |
1983.100 |
6837.100 |
|
d) Employee Cost |
1307.500 |
5409.800 |
|
e) Depreciation |
696.500 |
2536.300 |
|
f) Other Expenditure |
4365.400 |
15249.800 |
|
g) Total |
14367.400 |
52341.600 |
|
3. Profit (+) / Loss (-) from Operations before
Other Income, Interest and Exceptional Items (1-2) |
2324.600 |
10838.200 |
|
4. Other Income |
203.500 |
794.300 |
|
5. Profit (+)/ Loss (-) before Interest and
Exceptional Items (3+4) |
2528.100 |
11632.500 |
|
6. Interest |
18.100 |
51.300 |
|
7. Profit (+)/ Loss (-) after Interest but before Exceptional
Items (5-6) |
2510.000 |
11581.200 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit (+)/ Loss (-) before Tax (7+8) |
2510.000 |
11581.200 |
|
10. Tax Expense |
370.000 |
1910.000 |
|
11.Net Profit (+) / Loss (-) after Tax (9-10) |
2140.000 |
9671.200 |
|
12. Paid-up Equity Share Capital (Face Value
Rs.2/- per share) |
1605.800 |
1605.800 |
|
13. Reserves excluding Revaluation Reserves as per
Balance Sheet of previous Accounting Year |
|
|
|
14. Earning per Share (Rs.) * Not Annualised |
**2.67 |
12.05 |
|
15. Public Shareholding |
|
|
|
- Number of Shares |
503606049 |
503606049 |
|
- Percentage of Shareholding |
62.72 |
62.72 |
|
16. Promoters and Promoter Group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of Shares |
NIL |
NIL |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
NIL |
NIL |
|
- Percentage of shares (as a % of the
total share capital of the Company) |
NIL |
NIL |
|
b) Non Encumbered |
|
|
|
- Number of Shares |
295485978 |
295485978 |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the
total share capital of the Company) |
36.80 |
36.80 |
NOTES
- The Company is essentially in the pharmaceutical business segment.
- No investor grievances were pending at the beginning of the quarter. During the quarter ended 31st March, 2011, eleven investor grievances were received. As of 31st March, 2011 all grievances have been suitably replied to.
- In 2003 the Company received notice of demand from the National Pharmaceutical Pricing Authority, Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company. The orders were challenged before the Hon'ble Supreme Court by the Government. The Hon'ble Supreme Court by separate orders restored the matter to the jurisdictional High Court for interpreting the Drug Policy on the basis of directions and principles laid down by them and also restrained the Government from taking any coercive action against the Company. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. Hence no provision is considered necessary in respect of notice of demand aggregating to Rs.12302.800 millions (inclusive of interest) for the period July 1995 to April 2009.
- The figures of the previous year have been regrouped /recast to render them comparable with the figures of the current year.
- *Tax expense is inclusive of current tax, deferred tax and Minimum Alternate Tax (MAT) credit.
- The
above results after being reviewed by the Audit Committee were approved at
the meeting of the Board of Directors held on 5th May, 2011.
Financial Review –
Period Ended December 2010
(Rs. in millions)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
31.03.2011 |
31.03.2011 |
|
|
|
|
|
Domestic |
6522.300 |
28177.600 |
|
|
|
|
|
Exports Formulations |
7427.500 |
26755.600 |
|
APIs and others |
2322.000 |
6792.300 |
|
Total Exports |
9749.500 |
33547.900 |
|
% of exports to total sales |
59.9% |
54.4% |
|
|
|
|
|
Other
operating income |
|
|
|
Technology
know-how/fees |
207.100 |
637.000 |
|
Others |
332.700 |
1304.400 |
|
Total |
539.800 |
1941.400 |
|
|
|
|
|
Income from Operations |
16811.600 |
63666.900 |
|
|
|
|
|
Material
Cost |
7998.00 |
29145.700 |
|
% to total
sales |
49.2% |
47.2% |
|
|
|
|
|
Operating
margin |
3021.100 |
13374.500 |
|
% to income
from operations |
18.01% |
21.0% |
|
|
|
|
|
Profit
before tax |
2510.100 |
11581.200 |
|
% to income
from operations |
14.9% |
18.2% |
|
|
|
|
|
Profit
after tax |
2140.100 |
9671.200 |
|
% to income
from operations |
12.7% |
15.2% |
NOTE
During the year 2010-11, the
Company posted a growth of 12% in income from operations and profits after tax
were about 15% of overall revenues. During the fourth quarter, the company
posted a growth of more than 21% in income from operations. Operating margins
(as a percent to income from operations) are lower on a year-on-year basis due
to change in product mix resulting in increase in material cost by 3% and
negative contribution of Indore SEZ because of optimization. Profits after tax
are lower by about 22% primarily on account of one-time exceptional income (Rs.
950.000 millions) in fourth quarter FY0910 and increased factory overheads at
Indore SEZ.
During the quarter, domestic
sales grew by about 15% and export sales grew by more than 28%. Other operating
income for the quarter was lower by about Rs. 30.000 millions.
Material cost has increased by about 3% on
year-on-year basis due to changes in product mix primarily due to higher
proportion of anti-retrovirals in formulation exports. The increase in staff
cost (Rs. 300.000 millions) is due to increase in manpower particularly at
Indore SEZ and annual increments. Depreciation has increased by about Rs. 200.000
millions due to additions to fixed assets mainly on account of commissioning of
Indore SEZ factory. Other expenditure has increased mainly due to increase in
selling expenses and factory expenditure, in particular at Indore SEZ, such as
repairs and maintenance, power and fuel, stores and spares, etc. The increase
in selling expenses is in line with the increase in export turnover
FIXED ASSETS
- Buildings and Flats
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
AS PER WEB DETAILS
HISTORY
Khwaja Abdul Hamied, the founder of Subject, was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life.
In college, he found Chemistry fascinating. He set sail for
Europe in 1924 and got admission in
In October 1927, during the long voyage from Europe to
CIPLA IS BORN
In 1935, he set up The Chemical, Industrial and Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Subject was registered as a public limited company with an authorised capital of Rs.0.600 million.
The search for suitable premises ended at 289,
Subject was officially opened on September 22, 1937 when the
first products were ready for the market. The Sunday Standard wrote: "The
birth of Subject which was launched into the world by Dr K A Hamied will be a
red letter day in the annals of Bombay Industries. The first city in
MAHATMA GANDHI VISITS CIPLA
July 4, 1939 was a red-letter day for Subject, when the
Father of the Nation, Mahatma Gandhi, honoured the factory with a visit. He was
"delighted to visit this Indian enterprise", he noted later. From the
time Cipla came to the aid of the nation gasping for essential medicines during
the Second World War, the company has been among the leaders in the
pharmaceutical industry in
On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was the last time the company ever recorded a deficit.
In 1942, Dr Hamied's blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR), which is today the apex research body in the country.
In 1944, the company bought the premises at Bombay Central and decided to put up a "first class modern pharmaceutical works and laboratory." It was also decided to acquire land and buildings at Vikhroli. With severe import restrictions hampering production, the company decided to commence manufacturing the basic chemicals required for pharmaceuticals.
In 1946, Subject's product for hypertension, Serpinoid , was exported to the American Roland Corporation, to the tune of Rs.0800 million. Five years later, the company entered into an agreement with a Swiss firm for manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a
doctorate in chemistry from
In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the manufacture of several steroids and hormones derived from diosgenin.
THE FOUNDER PASSES AWAY
The whole of Subject was plunged into gloom on June 23, 1972 when Dr K A Hamied passed away. The Free Press Journal mourned the death of a "true nationalist, scientist and great soul…. The best homage they can pay to him is to contribute their best in the cause of self-reliance and the prosperity of their country in their fields of endeavour."
PRESS RELEASE:
CIPLA INTRODUCES NEW PAIN FREE SCREENING TECHNOLOGY FOR EARLY DETECTION
OF BREAST CANCER IN INDIA - ‘NO TOUCH BREAST SCAN’
Cipla, one of the leading pharmaceutical
companies from India, today announces the launch of a breakthrough screening
technology in India today called the ‘No Touch Breast Scan (NTBS); ' the
first-ever painless, non-invasive and radiation-free breast scanning technique
for detecting breast cancer at an early stage.
As of today, 1 in every 22 women in
India is expected to be diagnosed with breast cancer in their lifetime.
Dr. Shekhar Kulkarni, Consultant Breast
Cancer Surgeon, Magnolia Breast Surgery Clinic, Pune said, “Breast cancer is rising rapidly among urban women
and is now the most common cancer in cities such as Mumbai and Delhi .
Unfortunately most cancers are diagnosed when the disease is advanced leading
to low chances of cure. Although Mammography has been available for years it is
not used that widely. There are many reasons for it such as lack of awareness,
pain and discomfort during the procedure and a concern about repeated exposure
to radiation. Welcoming the
introduction of NTBS in India, Dr. Rakesh Sinha, Consultant Gynecologist
Surgeon, BEAMS Hospital , Mumbai said, “The No-Touch Breast scan
is a painless option for women who wish to get themselves regularly screened.
It is of particular use in younger women who have dense breasts and mammography
is inconclusive. If a woman shows changes on the NTBS then she is sent for
further investigation which includes mammography, sonography etc. At BEAMS
Mumbai, of the 41 patients who have undergone the NTBS test, only 1 had to be
referred for mammography.”
Thermal imaging has been approved by the
FDA several years ago for early diagnosis of breast cancer. With improvements
in digital camera technology during the last few years, thermal imaging is fast
gaining acceptance. Developed by UE Life Sciences Inc, the ‘No Touch Breast
Scan' is the World's first fully computerized ‘thermal imaging technology' with
dual IR cameras which can find thermal changes at less than 0.08 deg. C. The
NTBS using infrared imaging creates a sophisticated heat-map of the breast
without using any radiation. Breast cancer is associated with increased
formation of new blood vessels and these show up as 'hot spots' which could
indicate a cancerous growth.
At Dr Kulkarni's Magnolia Beauty and Clinic
in Pune, the NTBS test was taken by about 165 women and only 12 of them needed
further investigation. Mrs. Ambike, an
asymptomatic woman who has untaken the NTBS test said, “I
had taken a mammography test earlier but it was quite traumatic. With this totally
touch-free and quick NTBS test, I would not defer my annual check-up anymore.”
The ‘No-Touch Breast Scan' would be
exclusively marketed by Cipla across diagnostic centers and hospitals in India.
It has already been installed at BEAMS Hospital, Mumbai and Indore and Magnolia
Beauty and Clinic, Pune and would be extended by Cipla on a requirement-basis
to over 20 more diagnostic centers or hospitals across India. Addressing the press, Dr. Jaideep
Gogtay, Medical Director Cipla said, “Cipla has been working in
the area of cancer by manufacturing drugs for the last 20 years but this is for
the first time we have taken a step towards focusing on early diagnosis of
breast cancer.
There are 3 NTBS machines available in
the US, UK, Turkey and Kazakhstan, but women in India would have greater access
to this landmark technology and have more control over their breast health.”
The cost of per NTBS test would range
between Rs 800 – 1000, depending on the pricing determined individually by the
hospitals and centres.
Quick Facts on Breast cancer in India
- Breast Cancer has practically replaced cervical cancer as the
leading site of cancer among women in all urban cancer registries
- As of today, 1 in every 22 women in India in their lifetime is
expected to be diagnosed with breast cancer
- More than 92% of breast cancers are diagnosed at stage II or later
- 1 out of every 2 women diagnosed with breast cancer does not survive
the disease; mostly due to late stage diagnosis.
- Counter to common thinking, breast cancer is in fact a younger
woman's disease, it is more prevalent in urban than rural parts and the
rates are dramatically rising, faster than any other female cancer.
- According to a study by International Agency for Research on Cancer
(IARC) a branch of WHO, there will be approximately 250,000 new cases of
breast cancer in India by 2015.
- According to National Institutes of Health, nearly 90% diagnosed
will survive at least 5 years
About Cipla:
Cipla laid foundations for the Indian
pharmaceutical industry back in 1935 with the vision to make India self-reliant
in healthcare. Over the years Cipla has emerged as one of the most respected
names not just in India but worldwide. Its state of the art R&D centre has
given the country and the world many firsts. This includes the revolutionary
AIDS cocktail for less than a dollar a day. With over 40 manufacturing units
across the country, Cipla manufactures over 1200 products in 80 therapies.
With a turnover of over US $ 1 billion,
Cipla serves doctors and patients in over 183 countries. It has earned a name
for maintaining one global standard across all its products and services. Cipla
continues to support, improve and save millions of lives with its high-quality
drugs and innovative devices.
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.44.93 |
|
|
1 |
Rs.72.42 |
|
Euro |
1 |
Rs.63.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
77 |
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.