MIRA
INFORM REPORT
|
Report Date : |
22.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED ORCHID HEALTHCARE- DIVISION OF ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED |
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Registered Office : |
‘ |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
01.07.1992 |
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Com. Reg. No.: |
18-22994 |
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Paid-up Capital : |
Rs. 704.420 Millions |
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CIN No.: [Company
Identification No.] |
L24222TN1992PLC022994 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEO03079G CHEO00121C |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs. |
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No. of Employees : |
3700 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 39185000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial position
of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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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/ Corporate : |
‘ |
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Tel. No.: |
91-44-28251532 / 28251547 / 28284776/ 28211000/ 28230000 |
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Fax No.: |
91-44-28284983/ 28211002 |
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E-Mail : |
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Website : |
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Head Office : |
‘ |
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Factory 1 API FACILITIES : |
Alathur
Works Plot Nos. 85-87, 98-100, 126-131, 138-151 and 159-164, SIDCO
Industrial Estate, Alathur, Kancheepuram Dist. – 603110, Tamilnadu, India |
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Tel. No.: |
91-44-27446402/ 403/205/ 206/ 320 |
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Fax No.: |
91-44-27446321 |
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Factory 2 API FACILITIES : |
L-8 and L-9, MIDC Industrial Area, Waluj, Aurangabad District – 431136, |
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Tel. No.: |
91-240-2554992/ 993/ 994 |
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Fax No.: |
91-240-2554968 |
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Factory 3 FORMULATIONS : |
B3 and B4, B11 to B14, SIDCO Industrial Estate, Alathur, Kancheepuram
Dist. – 603 110, |
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Tel. No.: |
91-44-27156793/ 94 |
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Fax No.: |
91-44-27156816 |
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Factory 4 ENGINEERING MARKETS : |
Plot Nos. A-10, A-11, SIDCO Industrial Estate, Alathur, Kancheepuram
Dist. – 603 110, |
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Tel. No.: |
91-44-27446909 |
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Fax No.: |
91-44-27446657 |
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Factory 6 : |
Plot Nos. B3-B6, B11 and B14 |
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Factory 7 : |
Vinay Bhavya Complex, No. 159A, I Floor, ‘A’ Wing, C S T Road, Kalina,
Santacruz, Mumbai – 400 098, Maharashtra |
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R and D Centre : |
Plot No. 476 / 14, |
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Tel No.: |
91-44-24503137/ 1474/ 1477/ 2246 |
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Fax No.: |
91-44-24501396/ 1650 |
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R and D Centre : |
Plot No. B21-B23 and B31-B33, |
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Marketing Office |
Orchid
Helathcare |
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Tel. No.: |
007495-5141032/ 33 |
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Fax No.: |
007495-5141034 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. R. Narayanan |
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Designation : |
Chairman |
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Name : |
Mr. K.
Raghavendra Rao |
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Designation : |
Managing Director |
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Date of Birth/Age : |
44 years |
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Qualification : |
B.Com., PGDM
(IIM-A), ACS, AICWAI |
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Experience : |
24 years |
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Date of Appointment : |
13.07.1992 |
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Previous Employment : |
Al Buraimi Group,
Sultanate of |
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Name : |
Mr. S. Krishnan |
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Designation : |
Executive
Director (Finance) |
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Qualification : |
Bechelor of
Science |
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Experience : |
24 Years |
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Name : |
Mr. M R Girinath |
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Designation : |
Director |
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Name : |
Mr. Deepak Vaidya |
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Designation : |
Director |
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Name : |
Dr. I. Seetharam
Naidu |
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Designation : |
Director |
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Name : |
Mr. Anil Thadani |
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Designation : |
Director |
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Name : |
Mr. T A Ganesh |
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Designation : |
(IDBI Nominee) |
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Qualification : |
B.Com, MBA with
Law |
KEY EXECUTIVES
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Name : |
Mrs. Bhoomijha Murli |
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Designation : |
Company Secretary |
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Management Team: |
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Name : |
Dr. B Gopalan |
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Designation : |
Executive Director |
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Name : |
Mr. Madhusudan Rao |
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Designation : |
Chief Operating Officer – Global Generics |
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Name : |
Mr Ashutosh Ojha |
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Designation : |
Chief Executive - Domestic Formulations |
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Name : |
Dr R Buchi Reddy |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Mr S Chandan Kumar |
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Designation : |
Senior Vice President - Manufacturing |
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Name : |
Ms Edna Braganza |
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Designation : |
Senior Vice President – International Marketing and Procurement |
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Name : |
Mr S Mani |
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Designation : |
Senior Vice President-Process Research and SH and E |
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Name : |
Mr S Nammalvar Senior Vice President - Manufacturing |
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Designation : |
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Name : |
Mr S Sridharan |
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Designation : |
Senior Vice President – IT and IE |
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Name : |
Mr Deepak M B Nayyar |
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Designation : |
Vice President – Domestic Formulations |
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Name : |
Mr P N Deshpande |
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Designation : |
Vice President - Manufacturing |
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Name : |
Mr C R Dwarakanath |
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Designation : |
Vice President - Corporate Safety, Health and Environment |
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Name : |
Mr Gurmeet Singh |
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Designation : |
Vice President - Commercial |
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Name : |
Mr Kakarlapadi V V Raju |
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Designation : |
Vice President – Technical Operations |
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Name : |
Mr V S Padalkar |
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Designation : |
Vice President - Projects and Maintenance |
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Name : |
Mr K C Pathak |
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Designation : |
Vice President – Program Management Office |
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Name : |
Mr M S Rangesh Vice President - Human Resources |
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Designation : |
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Name : |
Mr Sampath Parthasarathy |
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Designation : |
Vice President – Domestic Formulations |
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Name : |
Dr U P Senthil Kumar |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Mr Srinivasa Rao Prerepa |
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Designation : |
Vice President - Quality |
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Name : |
Mr A Suresh Babu |
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Designation : |
Head - Corporate Affairs |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
Total No. of Shares |
Total
Shareholding as a % of total No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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17,856,292 |
26.57 |
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3,646,324 |
5.42 |
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21,502,616 |
31.99 |
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Total shareholding of Promoter and Promoter Group (A) |
21,502,616 |
31.99 |
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(B) Public Shareholding |
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892,897 |
1.33 |
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13,125 |
0.02 |
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3,170,960 |
4.72 |
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9,477,177 |
14.10 |
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13,554,159 |
20.17 |
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10,232,047 |
15.22 |
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10,300,266 |
15.32 |
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11,110,741 |
16.53 |
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515,559 |
0.77 |
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500,259 |
0.74 |
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300 |
- |
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15,000 |
0.02 |
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32,158,613 |
47.84 |
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Total Public shareholding (B) |
45,712,772 |
68.01 |
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Total (A)+(B) |
67,215,388 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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3,226,688 |
- |
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3,226,688 |
- |
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Total (A)+(B)+(C) |
70,442,076 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs. |
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Product : |
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PRODUCTION STATUS (As on 31.03.2010)
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Particulars |
Unit |
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Licensed
Capacity |
Installed
Capacity |
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Bulk Drugs and
Intermediates |
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Oral and Sterile |
MT |
|
990 |
990 |
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Dosage Forms |
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Vials |
Nos. Millions |
|
20 |
20 |
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Tablets |
Nos. Millions |
|
576 |
576 |
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Capsules |
Nos. Millions |
|
139 |
139 |
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Dry syrups/ Powders |
Nos. Millions |
|
13 |
13 |
GENERAL INFORMATION
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No. of Employees : |
3700 (Approximately) |
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Bankers : |
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Facilities : |
All Rupee Term Loans and Foreign Currency Term Loans from
Banks/Financial Institutions are secured by Pari Passu charge by way of joint
mortgage on immovable and movable assets situated at Factory premises at
SIDCO Industrial Estate, Alathur, MIDC Industrial Area, Aurangabad, SIPCOT
Industrial Park, Irungattukottai and R and D premises at Sholinganallur and
current assets, subject to prior charges created/ to be created on current
assets in favour of bankers and financial institutions for securing working capital
borrowings. Total term loans aggregating Rs 2402.200 Millions are
additionally secured by personal guarantee of Shri K.Raghavendra Rao,
Managing Director of the Company. Packing Credit and Advances against bills
from Banks and Working Capital Loans from Banks are secured by first charge
on all current assets namely, Stocks of Raw materials, Semi-finished and
Finished Goods, Stores and Spares not relating to Plant and Machinery
(Consumable Stores and Spares), Bills Receivable, Book Debts and all other
movable property both present and future excluding such movables as may be
permitted by the Banks/ financial institutions from time to time and by
second charge on immovable properties after charges created/ to be created on
immovable assets in favour of Financial Institutions/Banks for securing Term
Loans. The borrowings from banks are additionally secured by personal
guarantee of Shri. K. Raghavendra Rao, Managing Director of the Company. Hire
purchase Loans are secured by the assets acquired through such loans. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
STATUTORY AUDITORS SNB Associates Chartered Accountants No. 12, 3rd Floor, Gemini Parsn Complex, 121, Anna Salai, Chennai – 600006, Tamil Nadu
COST AUDITORS Mr. V. Kalyanaraman Cost Accountants No. 4 (Old No. 12),
INTERNAL / Deloitte Haskins and Sells Chartered Accountants 476, |
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Subsidiaries: |
· Orchid Europe Limited, UK · Orchid Pharmaceuticals Inc., USA · Orgenus Pharma Inc., USA · (Subsidiary of Orchid Pharmaceuticals Inc USA.) · Orchid Research Laboratories Limited, India (ORLL) · Orchid Pharmaceuticals SA (Proprietary)Limited, South Africa · Bexel Pharmaceuticals Inc., USA · Orchid Pharma Japan K K |
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Joint Venture : |
· NCPC Orchid Pharmaceuticals Company Limited, (NCPC, China) · Diakron Pharmaceuticals Inc., USA |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs. 10/- Each |
Rs.1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70442076 |
Equity Shares |
Rs. 10/- Each |
Rs.704.420
Millions |
Of the above:
- 17376940 equity shares of Rs. 10 each were allotted as fully paid
bonus shares by capitalization of reserves.
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 |
|
|
|
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|
1] Share Capital |
704.421 |
704.421 |
658.508 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
9091.928 |
5997.730 |
6222.445 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
9796.349 |
6702.151 |
6880.953 |
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LOAN FUNDS |
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1] Secured Loans |
10217.592 |
16950.096 |
9624.614 |
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2] Unsecured Loans |
6077.446 |
9017.446 |
9909.818 |
|
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TOTAL BORROWING |
16295.038 |
25967.542 |
19534.432 |
|
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DEFERRED TAX LIABILITIES |
2038.094 |
1294.920 |
1157.755 |
|
|
FOREIGN CURRENCY MONETRY ITEM TRANSLATION DIFFERENCE ACCOUNT |
176.147 |
0.000 |
0.000 |
|
|
|
|
|
|
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TOTAL |
28305.628 |
33964.613 |
27573.140 |
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APPLICATION OF FUNDS |
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|
|
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FIXED ASSETS [Net Block] |
14634.141 |
18663.469 |
14138.067 |
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Capital work-in-progress |
2514.313 |
3881.597 |
6163.261 |
|
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Advance for Capital Items |
2170.053 |
1576.266 |
|
|
|
|
|
|
|
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INVESTMENT |
1235.652 |
1223.681 |
1138.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
FOREIGN CURRENCY MONETRY ITEM TRANSLATION DIFFERENCE ACCOUNT |
0.000 |
835.794 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4025.273
|
7436.879 |
6331.864
|
|
|
Sundry Debtors |
7162.325
|
6590.357 |
5225.638
|
|
|
Cash & Bank Balances |
3249.090
|
415.204 |
228.484
|
|
|
Other Current Assets |
0.000
|
0.000 |
1.318
|
|
|
Loans & Advances |
2889.279
|
1595.868 |
1464.267
|
|
Total
Current Assets |
17325.967
|
16038.308 |
13251.571 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3064.782
|
3658.053 |
|
|
|
Other Current Liabilities |
2911.375
|
3630.720 |
7117.959
|
|
|
Provisions |
3598.341
|
965.729 |
0.000
|
|
Total
Current Liabilities |
9574.498
|
8254.502 |
7117.959
|
|
|
Net Current Assets |
7751.469
|
7783.806 |
6133.612
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
28305.628 |
33964.613 |
27573.140 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12498.346 |
11914.404 |
12389.162 |
|
|
|
Extraordinary Income – Profit on sale of Undertaking |
10153.029 |
0.000 |
0.000 |
|
|
|
Other Income |
98.000 |
901.541 |
725.087 |
|
|
|
TOTAL (A) |
22749.375 |
12815.945 |
13114.249 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
7752.620 |
5103.099 |
|
|
|
|
Manufacturing, Selling and Other Expenses |
6472.847 |
5229.747 |
|
|
|
|
TOTAL (B) |
14225.467 |
10332.846 |
8940.895 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8523.908 |
2483.099 |
4173.354 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2412.331 |
1551.860 |
811.263 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6111.577 |
931.239 |
3362.091 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1511.038 |
1299.721 |
976.678 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4600.539 |
(368.482) |
2385.413 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1287.143 |
153.265 |
540.032 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3313.396 |
(521.747) |
1845.381 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
283.222 |
815.750 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Excess provision of dividend and tax
thereon of earlier year written back |
(24.735) |
(96.371) |
NA |
|
|
|
Transfer to General Reserve |
2000.000 |
0.000 |
NA |
|
|
|
Dividend |
887.959 |
91.584 |
NA |
|
|
|
Tax on Dividend |
147.479 |
15.565 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
585.915 |
283.222 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
9938.829 |
9320.259 |
10085.560 |
|
|
|
Export of Services including Royalty/ Knowhow (net of withholding tax) |
289.843 |
271.489 |
412.310 |
|
|
TOTAL EARNINGS |
10228.672 |
9591.748 |
10497.870 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1922.560 |
2821.451 |
1959.804 |
|
|
|
Stores & Spares |
127.354 |
595.324 |
417.466 |
|
|
|
Capital Goods |
135.009 |
817.549 |
706.407 |
|
|
TOTAL IMPORTS |
2184.923 |
4234.324 |
3083.677 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(78.82) |
(7.61) |
28.02 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3309.280 |
3817.970 |
4462.990 |
|
Total Expenditure |
2471.510 |
3040.170 |
3246.070 |
|
PBIDT (Excl OI) |
837.770 |
777.800 |
1216.920 |
|
Other Income |
0.000 |
26.410 |
0.300 |
|
Operating Profit |
837.770 |
804.220 |
1217.220 |
|
Interest |
227.130 |
251.120 |
267.900 |
|
Exceptional Items |
(46.990) |
38.220 |
78.430 |
|
PBDT |
563.650 |
591.320 |
1027.750 |
|
Depreciation |
322.600 |
311.780 |
315.050 |
|
Profit Before Tax |
241.050 |
279.530 |
712.700 |
|
Tax |
24.910 |
39.380 |
187.040 |
|
Profit After Tax |
216.140 |
240.150 |
525.660 |
|
Net Profit |
216.140 |
240.150 |
525.660 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.56
|
(4.07) |
14.07
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
36.81
|
(3.09) |
19.25
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.39
|
(1.06) |
8.71
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.47
|
(0.05) |
0.35
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.66
|
5.11 |
3.87
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.81
|
1.94 |
1.86
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is a globally recognized, integrated pharmaceutical
company with core competencies in the development and manufacture of Active
Pharmaceutical Ingredients (APIs) and Finished Dosage Forms as well as in drug
discovery, which was incorporated on 1st July 1992 as a 100% Export Oriented
Unit (EOU). Subject has two manufacturing sites for APIs (at Alathur near
Chennai and at Aurangabad, near Mumbai) and three manufacturing sites for
Dosage forms (at Irungattukottai and Alathur in Chennai), besides two R and D
centres (at Sholinganallur and Irungattukottai, Chennai), all are
state-of-the-art and have several international regulatory approvals, including
the US FDA and UK MHRA. Subject's API facilities are ISO certified for their
quality, environmental management and operational health and safety systems.
Subject has a Joint Venture in
The Company commenced its operation in the year 1994, also in the same year;
Subject had entered into an agreement with SBD Laboratories Italy for
technology for keeping production in sterile condition. Subject became the
youngest Indian pharmaceutical company to be awarded the ISO 9002 certification
in 1997. During the same year of 1997, the company made a tie-up with
Technology Innovative Industry of Italy and also launched a range of new
products in the steriles category. In 1998, Subject, along with Cipla and
Ranbaxy, had received approval from the Drug Controller of India (DCI) for the
manufacture and export of sildenafil citrate, the main ingredient in Viagra,
the drug developed by Pfizer to treat human male erectile dysfunction; by the
way it had entered into the formulation market.
The Trophy for Excellent Performance in Exports was awarded to the company as part
of the National Export Awards Programme for the year 1998-99. The initial range
of products was launched by the company in 1999, which includes three
injectable cephalosporin formulations and two coprescription analgesics of the
NSAID category. These are Tax-O-bid (Cefotaxime injection), Cefogram
(Ceftriaxone injection), Orzid (Ceftazidime injection), Orchidol (Tramadol
tablets) and N-Limited (Nimesulide dispersible tablets. In the year 2000,
Orchid had signed a Memorandum of Understanding (MoU) with the Mumbai-based
Ajanta Pharma Limited to acquire the latter's bulk drugs manufacturing plant
located at
During the year 2003, the company had acquired Mano Pharmaceuticals for a
consideration of Rs.260 millions and also in the same year received a formal
approval from US Food and Drug Administration for Cephalaxin. Subject signed a
pact with Par Pharmaceuticals Inc in 2004 to market oral cephalosporin
formulations in
In April 2008, Subject formed a wholly owned subsidiary Orchid Pharma Japan K K
(Orchid Japan) to foray into the high potential Japanese generics market and in
August of the same year 2008 received approvals of its marketing authorization
(MA) for piperacillin and tazobactam for injection for marketing in the EU
countries. The Company made a strategic research collaboration and license
agreement with Merck and Co in September 2008 focused on the discovery,
development and commercialization of novel agents for the treatment of
bacterial and fungal infections.
Performance
During 2009-10, The Company
achieved a turnover and operating income of Rs 12498.300 Millions compared to
Rs 11914.400 Millions in 2008-09. The other income of Rs 10165.800 Millions
included consideration arising out of the sale and transfer of the Company’s
Generic Injectable Formulations Business. The gross earnings before interest,
depreciation and taxes stood at Rs 8438.700 Millions compared to Rs 1810.000
Millions of last fiscal. After providing
for interest expenses of Rs 2412.300 Millions (Rs 1551.900 Millions previous
fiscal) and depreciation of Rs 1511.000 Millions (Rs 1299.700 Millions previous
fiscal), the profit before tax of the Company was Rs 4600.500 Millions,
compared to the previous year’s loss before tax of Rs 36.85 Millions. The net profit after tax
stood at Rs 3313.400 Millions, compared
to the net loss after tax of Rs 521.700 Millions in the previous fiscal. The profitability figures reflect the
impact of adoption of the modified AS 11
accounting treatment and the impact of buyback (and cancellation) of Foreign Currency Convertible
Bonds (FCCBs) of the face value of USD
19.778 million of the 2012 Bonds and the sale transaction effected during the last quarter.
PHARMACEUTICALS
BUSINESS
A highlight of the performance this year was the approval from the
US Food and Drug Administration (US
FDA) for the Company’s Abbreviated
New Drug Applications (ANDAs) for
Piperacillin and Tazobactam for
Injection. The US FDA also determined that Orchid is the ‘first applicant’ for the products and accordingly
granted 180-day generic drug exclusivity,
under applicable provisions.
Orchid launched this product in marketing and distribution
partnership with Apotex in the
In the NPNC (Non-Penicillin,
Non-Cephalosporin) segment, the Company geared up to meet the increase in demand
by dedicating a separate manufacturing
line at the formulations facility. The Company is of the opinion that significant improvement in the
manufacturing process and a dedicated manufacturing line supported by higher
levels of API manufacturing will lead to the desired results in the ensuing
quarters.
SUBSIDIARIES
Orchid Research
Laboratories Limited,
ORLL continued its research in the anti-infectives, anti- inflammation,
anti-cancer and metabolic disorder areas and has achieved progress.
Developmental candidates in anti-cancer and anti-inflammation areas have
reached the stage of regulatory toxicological and safety studies. In the
anti-metabilic disorders area the Company is exploring possibilities of
repositioning of a molecule which has multiple efficacy indications. Under the
collaborative research program which relates to the anti-infectives area
certain NCEs have been designed, synthesised and screened and the Company is
confident of making good progress going forward.
Bexel Pharmaceuticals
Inc.,
Bexel continued its further studies on the lead anti-diabetes molecule
BLX-1002. The results of these studies still do not justify out-licensing as an
anti-diabetic molecule. However, the
molecule has multiple efficacy indications scope for repositioning of the
compound in other indications and they are being explored. Certain important
studies in this context are being conducted by a reputed overseas research
institute in animal models and the initial results are showing promise.
Orchid
Pharmaceuticals Inc.,
USA Orchid Pharmaceuticals, Inc., is a wholly owned
Orchid Europe
Limited,
The principle activity of The
Company’s subsidiary in
Orchid
Pharmaceuticals (
The Company’s wholly owned
subsidiary, Orchid Pharmaceuticals (
Orchid Pharma
The Company has made noteworthy progress during the year. Through this subsidiary company the various
capabilities which include manufacture and supply of API, formulation and CRAMS
capabilities of the parent company Orchid Chemicals and Pharmaceuticals Limited
have been presented to various companies in
Change in IDBI
Nominee
IDBI Bank Limited withdrew the nomination of Shri S. Jeyakumar and
nominated Shri T A Ganesh as its nominee in his place, with effect from May 10,
2010. The Board places on record its appreciation for the contribution made by
Shri S Jeyakumar and welcomes Shri T A Ganesh.
Retirement of Directors by rotation
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company, Shri. Deepak Vaidya and Shri. Anil
Thadani retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
FIXED
ASSETS:
- Building
- Plant
and Machinery
- Factory
Equipment
- Laboratory
Equipment
- Office
Equipment
- Furniture
and Fitting
- Vehicles
Name: Orchid Healthcare
A Division of Orchid Chemicals and Pharmaceuticais Limited
Established in 1992 Subject is a vertically
integrated player spanning the entire pharmaceutical value chain from discovery
to delivery with established credentials in research, manufacturing and
marketing. Subject enjoys a multi-therapeutic presence across segments like
anti-infectives anti inflammatory, anti-oxidants, anti-ulcerants, CNS (central
nervous system), CVS (cardio vascular segment), nutraceuticals and other oral
and sterile products. Its pharmaceutical solutions include active
pharmaceutical ingredients (API), finished dosage forms, drug discovery, novel
drug delivery systems and CRAMS services. It enjoys a global presence across
70+ countries through alliances and partnerships with globally reputed
corporates. Orchid is headquartered in Chennai (
What happened in 2009-2010
- Entered into a business transfer agreement with Hospira Healthcare
India Private Limited, a subsidiary of Hospira, Inc. USA., to transfer its
generic injectable finished- dosage form pharmaceuticals business for
around US$400 million; the transaction was closed on March 30, 2010.
Repaid debt of around Rs 14000.000 Millions in March 2010.
- Received US FDA approval for Tazobactam-Piperacillin with a 180-day
exclusivity. Orchid cashed in on this opportunity and utilized a
significant portion of the manufacturing capacity to cater to the
- Honoured with the Facility of the Year Award 2009 (Regional
Excellence Category) by ISPE, Interphex and Pharmaceutical Processing
magazine for the carbapenem API manufacturing facility located in
- Awarded the Certificate of Merit for Excellence in Management of
Safety, Health & Environment (SHE) for 2008 by the Indian Chemical
Council (ICC) Recognised by the Tamil Nadu Government with the Award for
Corporate Social Responsibility for 2008- 09 for outstanding social
responsibility initiatives Board room R and D.
- In 2009-1 0, Orchid sold its generic injectable formulations
business for around US$400 million to Hospira Inc., USA, a generics
injectable major. The agreement covered the sale of assets, products,
product pipeline and team transfer to manage the transferred assets.
Orchid sold its betalactam antibiotics formulations manufacturing complex
comprising the cephalosporin,penicillhn and carbapenems facilities)and a
pharmaceutical research and development facility at
Irungattukottai,Chennai.
- Orchid sold its betalactam antibiotics formulations manufacturing
complex (comprising the cephalosporin, penicillin.and carbapenems
facilities) and a pharmaceutical research and development facility at Irungattukottai,
Chennai.
- Orchid transferred about 450 employees dedicated to the development
and production of sterile betalactam antibiotic formulations to Hospira.
About Factory Details:
IRUNGATTUKOTTAI, CHEENAI – ORAL FORMULATIONS (GENERICS)
Their modern oral formulations manufacturing
facility at lrungattukottai (IKKT), near Chennai has modern infrastructure
geared to offer high throughput. Coupled with world-class R and D labs, this
formulations infrastructure is in the forefront of their successful entry into
the advanced markets of US and
The facility has been inspected and approved
by leading regulatory agencies including the US FDA, UK MHRA, MCC (
The formulations facility also houses a modern
R and D centre for pharmaceuticals research.
ALATHUR, CHENNAI – ORAL FORMULATION EMERGING
Oral non-cephalosporin formulations facility
Their oral non-cephalosporin formulations
facility specializes in the manufacturing of nutraceutical products. The
facility produces a range of dietary supplements for the advanced markets. Many
other high-value products like anti-diabetics, cardio vascular drugs (CVS),
anti- depressants and anti-epileptics are manufactured in this facility to
cater to the emerging markets.
Built to GMP (good manufacturing practices)
standards (WHO guidelines), this facility has state-of-the-art packaging
machinery and a full-spectrum, dedicated quality control and microbiological
services, adding distinctiveness to the manufacturing quality. Designed for
optimal operating conditions and uni-directional flow of resources and
materials, the facility has been approved by the Australian-TGA and is being
offered for inspection by several other leading international regulatory
agencies.
Oral cephalosporin formulations facility
Their oral cephalosporin formulations facility
manufactures cephalosporin oral products dedicated to the domestic and emerging
markets. The facility has the capability to manufacture different dosage forms
like tablets, capsules, dry syrups and liquid orals. The facility conforms to
cGMP standards and is approved by the WHO.
ALATHUR, CHENNAI – ANTIBIOTIC (CEPHALOSPORIN) API
Their API manufacturing plant located at
Alathur, south of Chennai is one of the largest integrated antibiotic
manufacturing complexes in
With a capability to handle highly complex and
hazardous reactions with utmost safety and efficiency, the plant’s operations
are backed by a full spectrum of utilities including a captive power generation
plant, high technology solvent recovery facilities, sophisticated quality
control equipment and a ‘zero-discharge’ environment friendly effluent
treatment plant. Their manufacturing complex has been successfully audited and
approved time and again by leading global regulatory agencies like the US FDA,
UK MHRA, GMP, EDQM, TGA (Australian), Danish Medicines Agency, in addition to
several quality, environment and safety management recognition.
Their API manufacturing complex in
This infrastructure uses complex gases and a
high technology hydrogenator system. World- class utilities, solvent recovery
systems and quality control infrastructure support the operations.
This manufacturing complex has also received
global accolades for its environment, operational efficiency and safety
management systems. The facility has also been approved by leading regulatory
agencies.
Directors Details:
Shri K Raghavendra Rao,
Chairman and Managing Director
Shri K Raghavendra Rao has a Bachelors Degree
in Commerce from
Shri S Krishnan, Executive
Director – Finance
Shri S Krishnan has been associated with
Orchid for over nine years and has been heading the finance function in the
last few years. He has a rich and diversified experience of over 24 years in
the field of He possesses a degree in bachelor of Science from the
Shri T A Ganesh - Nominee
Director, IDBI
Shri T A Ganesh joined the Industrial
Development Bank of India Ltd. in 1978 at Mumbai. Worked in various departments
of IDBI both operations and administration at Mumbai,
Dr. M R Girinath
Dr M R Girinath is a Master of Surgery
(General Surgery), a Magister Chirurgiae in CardioThoracic Surgery and also a
Fellow of the Royal Australian CoIIege of Surgeons. Dr M R Girinath is the
Chief of the department of Cardio-Vascular surgery at Apollo Hospitals,
Chennai. He is an eminent Cardio-Vascular Surgeon, who has performed over
25,000 open-heart operations including over 16,000 coronary bypass operations.
Dr M R Girinath has been associated with Orchid since 1992 as a Director. He is
a recipient of several awards including the prestigious Padma Bhushan.
Dr. I Seetharam Naidu
Dr I Seetharam Naidu, MD, is a Consultant
Anaesthesiologist at Apollo Hospitals, Chennai. He has been associated with
more than 30,000 open-heart surgeries out of which 70% are coronary artery
by-pass surgeries. He has been associated with Orchid as a Director since 1992.
Shri Deepak Vaidya
Shri Deepak Vaidya holds a commerce degree
from the
Shri
R Sankaran
Shri R Sankaran has a rich and diversified
experience in the area of financial services and business consulting spanning
over 40 years across a wide set of areas in the Capital Markets, Corporate
Finance, Institutional Relationships, Government & Regulatory Management,
Corporate Sector and Policy Influencing Public Forums. Shri Sankaran holds a
Masters Degree in Economics and Diploma in Business Management and Financial
Management from
Shri Bharat D. Shah
Shri Bharat D. Shah is one of the founder
members of HDFC Bank. He has served in various organisations such as Pyrene
Company Limited, Bradma India Limited, Technova, Thomas Cook, Citibank and had
been an Investment Advisor for Union Bank of
NOTES
Subsidiary for research and development
Apart from providing quality and affordable
generic drugs to global healthcare systems focus on R and D is a key value
driver at Orchid. They recognise the importance of developing
knowledge-intensive businesses as drivers of future growth. Through thier
discovery subsidiary, Orchid Research Laboratories Limited (Orchid Research),
robust discovery and development platforms have been established in the areas
of anti-infectives, anti- inflammatory, anti-ulcerants, anti-diabetes drugs and
metabolic diseases. They have world-class R and D centres certified by the
National GLP (Good Laboratory Practices) Authority of India for advanced
chemical research and analytical development located at Sholinganallur and Irungattukottai
in Chennai.
Their scientific personnel comprise of over
600 scientists across the entire spectrum of R and D and analytical research,
working in various areas of drug discovery and development in addition to CMC
(chemistry, manufacturing and controls), pharma research and other related
process and pharma research activities. Their people strive to create
clinically differentiated drugs and diagnostics to help people live longer and
healthier. To drive discovery and development, Orchid Research developed a
proprietary product pipeline and collaborated with multinational companies for
discovery of new chemical entities to undertake co-discovery and/or co -
development projects, as well as provide custom research services.
WEBSITE DETAILS:
PROFILE:
Subject was established in 1992 as a 100% Export Oriented Unit (EOU). Commencing operations in 1994, Orchid has achieved amazing and consistent growth, quantitatively and qualitatively to emerge among the Top-15 companies in the Indian pharmaceutical industry in a short span of fifteen years of operations. Subject employs over 4000 people, of which over 700 are scientists, technologists and other professionals.
Subject’s growth and positioning in the global pharmaceutical industry are indeed
distinctive. A robust leadership position in the antibiotics space, a core
competence in oral and sterile manufacturing, a broad-based multi-therapeutic
coverage and an end-to-end connectivity over the pharmaceutical value chain,
from discovery to delivery, have positioned Subject uniquely.
Subject has two manufacturing sites for APIs (at Alathur
near Chennai and at
Subject ’s scientific and technical strengths have made it a partner of choice
for several multinational corporations. Subject
has long-term exclusive marketing alliances with reputed global
companies for distribution of its products in the advanced markets.
Subject has an established end-to-end
connected infrastructure for drug discovery and development which are channeled
through its subsidiaries, Subject
Research Laboratories in Chennai and Bexel Pharmaceuticals in the
Subject is a leader in the use of environment friendly technologies. Subject has invested substantially in zero-discharge manufacturing processes at its facilities and is considered a national show-case in environmental friendliness.
Audited
Financial Results for the Year Ended 31.03.2011
Rs.
in Millions
|
S.No |
Particulars |
Audited |
|
Stand alone |
||
|
31.03.2011 |
||
|
1 |
Net Sales / Income from Operations |
15946.788 |
|
2 |
Other Operating Income |
735.963 |
|
3 |
Total Operating Income (1+2) |
16682.751 |
|
4 |
Expenditure |
|
|
|
a) Decrease/(Increase) in Stock in trade |
(1196.459) |
|
|
b) Material Cost |
8679.876 |
|
|
c) Purchase of Trades Goods |
396.166 |
|
|
d) Employees Cost |
1413.846 |
|
|
e) Depreciation / Amortisation |
1284.543 |
|
|
f) Other Expenditure |
3255.272 |
|
|
g) Total |
13833.244 |
|
5 |
Profit from Operations before other Income, Interest & Exceptional
Item (3 - 4) |
2849.507 |
|
6 |
Other Income |
26.710 |
|
7 |
Profit/(loss) before Interest & Exceptional Item (5+6) |
2876.217 |
|
8 |
Interest & Finance Charges |
1157.650 |
|
9 |
Profit/(loss) after interest but before Exceptional Item (7-8) |
1718.567 |
|
10 |
Exceptional Item - gain/(loss) |
19.482 |
|
11 |
Profit/ (Loss) before Tax (9+10) |
1738.049 |
|
12 |
Tax expenses |
|
|
|
- Current Tax & Deferred Tax |
143.213 |
|
13 |
Net Profit/ (Loss) after Tax (11-12) |
1594.836 |
|
14 |
Extraordinary Item (net of tax of Rs.1287.142 millions) |
- |
|
15 |
Net Profit/(Loss) for the period / year |
1594.836 |
|
16 |
Paid- up Equity Share Capital (Face value of Rs. 10 each) |
704.421 |
|
17 |
Reserves excluding Revaluation Reserves |
10635.827 |
|
18 |
Earnings per share(EPS) before extraordinary item |
|
|
|
- Basic Rs. |
22.64 |
|
|
- Diluted Rs. |
18.71 |
|
19 |
Earnings per share(EPS) after extraordinary item |
|
|
|
- Basic Rs. |
22.64 |
|
|
- Diluted Rs. |
18.71 |
|
20 |
Aggregate of Public Shareholding |
|
|
|
- Number of equity shares |
48939460 |
|
|
- Percentage of Shareholding |
69.47 |
|
21 |
Promoters and Promoter group shareholding |
|
|
|
a. Pledged / Encumbered |
|
|
|
- Number of shares |
17181383 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
79.90 |
|
|
- Percentage of shares (as a % of the total share capital of company) |
24.39 |
|
|
b. Non - Encumbered |
|
|
|
- Numbers of shares |
4321233 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
20.10 |
|
|
- Percentage of shares (as a % of the total share capital of company) |
6.14 |
Note:
- The above audited financial results were approved by the Board of Directors at its meeting held on Wednesday, 18.05.2011.
- The Company is operating in single segment (i.e) "Pharmaceuticals".
- The Company has exercised the option provided under the Companies (Accounting Standards) Amendment Rules, 2006 dated 31.03.2009 in respect of AS 11. The amount remaining to be amortized in the financial statements as on 31.03.2011 on account of exercising the above option is nil (previous period Rs. 115.922 millions).
- Exceptional items include exchange gain / (loss) on FCCBs.
- The Board has recommended a dividend of Rs.3/- per share on the equity share of Rs.10/- each.
- The Company received 15 complaints during the quarter ended 31.03.2011 from the shareholders and no complaints were pending as on 31.03.2011.
- Previous year figures have been regrouped wherever necessary.
Media Release:
Orchid Pharma achieves step function increase in performance in FY11. Consolidated topline soars to Rs 17860.000 millions in FY11. PAT stood at Rs 1560.000 millions in FY11
Topline and PAT ahead of guidance Board recommends dividend of 30%
Consolidated earnings for the fiscal ended 31.03.2011 (FY11)
Orchid's performance during FY11 (year ended 31.03.2011) transcends new growth frontiers.
- Orchid's turnover in FY11 rose by 33% to Rs 17855.700 (USD 400 million) compared to Rs 13434.500 millions (USD 301 million) during FY10 (fiscal ended 31.03.2010).
- Earnings before Interest, Depreciation and Tax (EBIDTA) stood at Rs 4218.100 millions for the fiscal.
- Profit before tax (PBT) for the fiscal ended 31.03.2011 stood at Rs 1715.600 millions.
- Net Profit (PAT) stood at Rs 1561.900 millions for the fiscal ended March 2011.
- EPS for the fiscal ended 31.03.2011 stood at Rs 22.17.
Figures for the previous year ended 31.03.2010 are not comparable as
the company transferred its Injectable formulation business to Hospira in March
2010.
Orchid's board that
met today to adopt the audited financial results for the fiscal ended March 31,
2011 recommended a dividend of 30%.
MDs message on the annual report 2010 – 2011
Quote from the Chairman and Managing Director
"We believe that our performance of the fiscal year 2010-11 is the start
of a strong, growth journey for the company. We have put in place an operating
canvas that incorporates long term supply arrangements involving niche products
thereby ensuring sustainable growth with strong margins going forward. Our
shift to a more sustainable and robust business model has also helped us
significantly deleverage our balance sheet improving key parameters like
working capital, debt equity and asset turnover. Given the strong order book
and supply arrangements, we are confident of delivering a 25% increase in
revenues and a more than proportionate growth in profits during the current
financial year FY12," said Mr K Raghavendra Rao, Chairman and Managing
Director, Orchid Chemicals and Pharmaceuticals Limited
Regulatory update
Formulations
Orchid's cumulative
ANDA (Abbreviated New Drug Application) filings for the
The final approved ANDAs count stood at 21 at the end of FY11. During this quarter
Orchid has also received 1 tentative ANDA approval for Eszopiclone Tabs. The
final ANDA approval is expected in due course on patent expiration. The
break-up of the total final ANDAs approval count comprises of 11 in
Cephalosporin space and 10 in the NPNC space.
European Union
In the EU region the
cumulative count of Marketing Authorizations (MAs) filed stood at 25. The
break-up of the total MA filings is 13 in the Cephalosporin space and 12 in the
NPNC space. A few more dossiers have been lined up for filing during 2011,
based on the DCP slots allotted by the respective RMS (Reference Member States)
countries in the EU. This is likely to increase the cumulative filing count in
the coming quarters.
In the EU region the cumulative count of Marketing Authorizations (MA) approved
stands at 17. The break-up of the total MA approval count is 9 in the
Cephalosporin space and 8 in the NPNC space.
API segment
In the API (Active
Pharmaceutical Ingredients) space, Orchid's cumulative US DMFs filed stood at 81.
The break-up of the total filings is 27 in the Cephalosporin space, 41 in NPNC
space, 2 in the Betalactam segment and 11 in the Carbapenems segment.
The cumulative
filings of COS (Certificate of Suitability) for the European market stood at 21
which includes 14 in Cephalosporin space, 6 in NPNC space and 1 in the
Betalactam segment.
With staunch efforts
on product development, Orchid’s filing and approval count is poised to
increase in the coming months and quarters.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.91 |
|
|
1 |
Rs.72.89 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.