BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
CIPLA LIMITED |
Principal Name 1 |
Dr. Y. K. Hamied |
|
Status |
Excellent |
Principal Name 2 |
Mr. Amar Lulla |
|
|
|
Registration # |
11-2380 |
|
Street Address |
Mumbai Central,
Mumbai – 400 008, |
||
|
Established Date |
17.08.1935 |
SIC Code |
-- |
|
Telephone# |
91-22-23095521 / 23082891 / 23023272 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-22-23070013 / 23070393 / 85 / 23008101 |
Business Style 2 |
Marketer |
|
Homepage |
Product Name 1 |
Amoebicides/Antiprotozoals |
|
|
# of employees |
2200
(Approximately) |
Product Name 2 |
Anabolic steroids |
|
Paid up capital |
Rs.1605,800,000/- |
Product Name 3 |
Antifungals |
|
Shareholders |
Promoter
and Promoter Group-36.80% Public
Shareholding- 62.60 Shares
held by Custodians and against which Depository
Receipts have been issued- 0.60% |
Banking |
Bank
of |
|
Public Limited Corp. |
YES |
Business Period |
75 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
Aa
(77) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiaries |
UAE
|
Cipla FZE |
- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
28,395,500,000 |
Current Liabilities |
9,979,600,000 |
|
Inventories |
15,125,800,000 |
Long-term Liabilities |
50,700,000
|
|
Fixed Assets |
20,111,700,000 |
Other Liabilities |
3,955,200,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
13,985,500,000 |
|
Invest& other Assets |
9,493,400,000 |
Retained Earnings |
57,535,100,000 |
|
|
|
Net Worth |
59,140,900,000 |
|
Total Assets |
73,126,400,000 |
Total Liab. & Equity |
73,126,400,000 |
|
Total Assets (Previous Year) |
66,647,000,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
53,595,200,000 |
Net Profit |
10,814,900,000 |
|
Sales(Previous yr) |
49,606,000,000 |
Net Profit(Prev.yr) |
7,768,100,000 |
MIRA
INFORM REPORT
|
Report Date : |
07.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
CIPLA LIMITED |
|
|
|
|
Registered Office : |
Mumbai Central, Mumbai – 400 008, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
17.08.1935 |
|
|
|
|
Com. Reg. No.: |
11-2380 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24239MH1935PLC002380 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC00352C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturer and Marketer of Bulk Drugs and Formulations. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 236560000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having good track. Financials position of the company appears to be sound. Directors are 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
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Ajay Loharuka |
|
Designation : |
Finance Department |
|
Contact No.: |
91-22-23095521 |
|
Date : |
17.02.2011 |
LOCATIONS
|
Registered Office : |
Mumbai Central, Mumbai – 400 008, |
|
Tel. No.: |
91-22-23095521 / 23082891 / 23023272 |
|
Fax No.: |
91-22-23070013 / 23070393 / 85 / 23008101 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
|
|
|
|
|
Sales Office: |
Located At :
|
|
|
|
|
Branch Office : |
289, |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Dr. Y. K. Hamied |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Amar Lulla |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. M. K. Hamied |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Dr. H. R. Manchanda |
|
Designation : |
Non-Executive Director |
|
Qualification : |
M.B.B.S., F.R.C.S. |
|
Experience : |
1.
Consultant Surgeon at 2.
Professor of Surgery and Head of Surgery at Haffkine Institute – Board Member |
|
Year of
Appointment : |
1983 |
|
|
|
|
Name : |
Mr. S. A. A. Pinto |
|
Designation : |
Non-Executive Director |
|
Qualification : |
M.A.(Economics), LL.B |
|
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 |
|
Year of
Appointment : |
1983 |
|
|
|
|
Name : |
Mr. V. C. Kotwal |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. M. R. Raghavan |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Ramesh Shroff |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Pankaj Patel |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. N R Moorthy |
|
Designation : |
Practicing Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
122,720,500 |
15.28 |
|
|
6,022,791 |
0.75 |
|
|
128,743,291 |
16.03 |
|
|
|
|
|
|
166,742,687 |
20.77 |
|
|
166,742,687 |
20.77 |
|
Total
shareholding of Promoter and Promoter Group (A) |
295,485,978 |
36.80 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
53,558,268 |
6.67 |
|
|
1,160,694 |
0.14 |
|
|
95,075,867 |
11.84 |
|
|
123,725,014 |
15.41 |
|
|
273,519,843 |
34.07 |
|
|
|
|
|
|
33,207,617 |
4.14 |
|
|
|
|
|
|
54,789,910 |
6.82 |
|
|
113,282,003 |
14.11 |
|
|
|
|
|
|
409,074 |
0.05 |
|
|
79,103 |
0.01 |
|
|
26,611,160 |
3.31 |
|
|
699,705 |
0.09 |
|
|
259 |
0.00 |
|
|
229,078,831 |
28.53 |
|
Total
Public shareholding (B) |
502,598,674 |
62.60 |
|
Total
(A)+(B) |
798,084,652 |
99.40 |
|
(C) Shares
held by Custodians and against which Depository Receipts have been issued |
4,836,705 |
0.60 |
|
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
|
Line of Business : |
Manufacturer and Marketer of Bulk Drugs and Formulations. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS
AS ON 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Bulk Drugs (including Malts) |
Tonnes |
1866.1 |
1316.9 |
|
Tablets and Capsules |
Million |
16662.4 |
16632.9 |
|
Liquids |
Kilolitre |
1346.4 |
8600.9 |
|
Creams |
Tonnes |
861.3 |
1021.7 |
|
Aerosols/Inhalation Devices |
Thousand |
96030.0 |
53387.5 |
|
Injections/Sterile Solutions |
Kilolitre |
1168.0 |
2204.0 |
|
Others |
|
-- |
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
|
Suppliers : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
2200 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
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. |
|
Banking Relations
: |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Chartered Accountants
Chartered Accountants |
|
Address : |
Mumbai, |
|
|
|
|
Subsidiaries : |
Cipla FZE, U.A.E. |
|
|
|
|
Associates : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
87,50,00,000 |
Equity Share |
Rs.2/- each |
Rs.1750.000 millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,39,24,752 |
Equity Share |
Rs.2/- each |
Rs.1607.800
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,29,21,357 |
Equity Share |
Rs.2/- each |
Rs.1605.800 millions |
|
|
|
|
|
Of the above Equity Shares:
i. 75, 83, 20,444
shares of Rs.2 each were allotted as fully paid-up Bonus Shares by
capitalisation 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
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1605.800 |
1554.600 |
1554.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
57535.100 |
41952.900 |
36003.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
59140.900 |
43507.500 |
37558.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4.100 |
27.900 |
169.800 |
|
|
2] Unsecured Loans |
46.600 |
9374.500 |
5635.500 |
|
|
TOTAL BORROWING |
50.700 |
9402.400 |
5805.300 |
|
|
DEFERRED TAX LIABILITIES |
1791.500 |
1641.500 |
1491.500 |
|
|
|
|
|
|
|
|
TOTAL |
60983.100 |
54551.400 |
44855.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
20111.700 |
19924.900 |
16613.600 |
|
|
Capital work-in-progress |
6842.400 |
3663.200 |
2331.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
2651.000 |
813.200 |
947.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
15125.800
|
13983.200 |
11204.900 |
|
|
Sundry Debtors |
15527.100
|
18371.500 |
13939.100 |
|
|
Cash & Bank Balances |
608.400
|
530.000 |
792.800 |
|
|
Other Current Assets |
578.200
|
234.500 |
344.900 |
|
|
Loans & Advances |
11681.800
|
9126.500 |
11158.100 |
|
Total
Current Assets |
43521.300
|
42245.700 |
37439.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8056.100
|
|
8309.000 |
|
|
Current Liabilities |
1923.500
|
2554.400 |
|
|
|
Provisions |
2163.700
|
1967.100 |
4168.100 |
|
Total
Current Liabilities |
12143.300
|
12095.600 |
12477.100 |
|
|
Net Current Assets |
31378.000
|
30150.100 |
24962.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
60983.100 |
54551.400 |
44855.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
53595.200 |
49606.000 |
39979.000 |
|
|
|
Other Income |
3537.200 |
3552.200 |
3403.100 |
|
|
|
TOTAL (A) |
57132.400 |
53158.200 |
43382.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
24529.800 |
23474.000 |
20427.100 |
|
|
|
Employee Cost |
3188.700 |
2713.300 |
2140.100 |
|
|
|
Manufacturing Expenses |
2310.500 |
2226.000 |
1940.700 |
|
|
|
Other Expenses |
10414.600 |
11529.500 |
7168.900 |
|
|
|
Research and Development Expenses |
2506.900 |
2355.000 |
2045.700 |
|
|
|
Exceptional Item being sale of branch and other related rights |
(950.000) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
42000.500 |
42297.800 |
33722.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
15131.900 |
10860.400 |
9659.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
229.500 |
329.400 |
113.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14902.400 |
10531.000 |
9546.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1652.500 |
1517.900 |
1162.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
13249.900 |
9013.100 |
8383.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
2435.000 |
1245.000 |
1369.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
10814.900 |
7768.100 |
7014.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9548.300 |
5099.000 |
3903.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
1605.800 |
1554.600 |
1554.600 |
|
|
|
Tax on Dividend |
266.700 |
264.200 |
264.200 |
|
|
|
Transfer to General Reserve |
1500.000 |
1500.000 |
4000.000 |
|
|
|
Surplus carried forward |
16990.700 |
9548.300 |
5099.000 |
|
|
BALANCE CARRIED
TO THE B/S |
20363.200 |
12867.100 |
10917.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
29005.800 |
27426.900 |
21017.400 |
|
|
|
Technical Know-how/ Fees |
1537.600 |
2174.500 |
1533.900 |
|
|
|
Others |
33.400 |
0.200 |
0.800 |
|
|
TOTAL EARNINGS |
30576.800 |
29601.600 |
22552.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials / Packing Materials |
8461.400 |
9637.900 |
7242.700 |
|
|
|
Components and Spare Parts |
274.600 |
194.300 |
193.500 |
|
|
|
Capital Goods |
1672.300 |
2568.000 |
2029.300 |
|
|
TOTAL IMPORTS |
10408.300 |
12400.200 |
9465.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.69 |
9.99 |
9.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.93 |
14.61 |
16.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.72 |
18.17 |
20.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.82 |
14.50 |
15.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.21 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.21 |
0.49 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.58 |
3.49 |
3.00 |
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 stockists, 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
DECEMBER, 2010
(Rs. in millions)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
(Unaudited) |
|
|
1. a) Gross Sales |
15157.500 |
45453.700 |
|
Less: Excise Duty |
143.900 |
367.500 |
|
Net Sales |
15013.600 |
45086.200 |
|
b) Other Operating Income |
523.100 |
1401.600 |
|
Total Operating Income (a+b) |
15536.700 |
46487.800 |
|
2. Expenditure |
|
|
|
a)(Increase)/ decrease in Stock-in-trade and work
in progress |
(663.500) |
(57.700) |
|
b) Consumption of Materials |
5742.600 |
16351.400 |
|
c) Purchase of Traded Goods |
1879.300 |
4854.000 |
|
d) Employee Cost |
1350.900 |
4102.300 |
|
e) Depreciation |
652.500 |
1839.800 |
|
f) Other Expenditure |
4045.600 |
10884.400 |
|
g) Total |
13007.400 |
37974.200 |
|
3. Profit (+) / Loss (-) from Operations before
Other Income, Interest and Exceptional Items (1-2) |
2529.300 |
8513.600 |
|
4. Other Income |
256.900 |
590.800 |
|
5. Profit (+)/ Loss (-) before Interest and Exceptional
Items (3+4) |
2486.200 |
9104.400 |
|
6. Interest |
29.300 |
33.200 |
|
7. Profit (+)/ Loss (-) after Interest but before
Exceptional Items (5-6) |
2756.900 |
9071.200 |
|
8. Exceptional Items |
-- |
-- |
|
9. Profit (+)/ Loss (-) before Tax (7+8) |
2756.900 |
9071.200 |
|
10. Tax Expense |
430.000 |
1540.000 |
|
11.Net Profit (+) / Loss (-) after Tax (9-10) |
2326.900 |
7531.200 |
|
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 |
**2.90 |
**9.38 |
|
15. Public Shareholding |
|
|
|
- Number of Shares |
502598674 |
502598674 |
|
- Percentage of Shareholding |
62.60 |
62.60 |
|
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 December, 2010, six investor grievances were received. As of 31st December, 2010 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.1230.28 crores (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 4th February, 2011.
Financial Review –
Period Ended December 2010
(Rs. in millions)
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
|
|
|
Domestic |
7339.700 |
21655.300 |
|
|
|
|
|
Exports Formulations |
6431.800 |
19328.100 |
|
APIs and others |
1386.000 |
4470.300 |
|
Total Exports |
7817.800 |
23798.400 |
|
% of exports to total sales |
51.6% |
52.4% |
|
|
|
|
|
Other operating
income |
|
|
|
Technology
know-how/fees |
151.400 |
429.900 |
|
Others |
371.700 |
971.700 |
|
Total |
523.100 |
1401.600 |
|
|
|
|
|
Income from Operations |
15680.600 |
46855.300 |
|
|
|
|
|
Material
Cost |
6958.400 |
21147.700 |
|
% to total sales |
45.9% |
46.5% |
|
|
|
|
|
Operating
margin |
3181.800 |
10353.400 |
|
% to income
from operations |
20.3% |
22.1% |
|
|
|
|
|
Profit
before tax |
2756.900 |
9071.200 |
|
% to income
from operations |
17.6% |
19.4% |
|
|
|
|
|
Profit
after tax |
2316.900 |
7531.200 |
|
% to income
from operations |
14.8% |
16.1% |
NOTE
During the quarter, the company posted a growth of 8% in income from operations. However, operating margins and profits are lower by about 16% and 20% respectively primarily on account of increased factory overheads at Indore SEZ and appreciation of the Indian rupee by about 4% on a year-on-year basis which has adversely affected export turnover as well as realizations.
Domestic sales grew by more than 11%. Inspite of a rupee appreciation of about 4%, export sales grew by about 12%. Technical knowhow/fees for the quarter has decreased by about Rs. 550.000 millions on account of a one-time fees received in third quarter of 2009-10 resulting in a high base on a year-on-year basis.
Material cost has been maintained at similar levels on a
year-on-year basis. The increase in staff cost (Rs. 46 cr) is due to increase
in manpower particularly at Indore SEZ, regrouping of contractual staff at
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 :
In keeping with its commitment to reduce
mother-to-child transmission of HIV/AIDS, Cipla, one of the world's leading
generic pharmaceutical companies has developed the first-of-its kind
‘Mother-Baby Pack' in collaboration with UNICEF and other partners . The
Mother-Baby Pack contains the entire range of anti-retroviral drugs and
antibiotics required by an HIV infected mother starting from the 14 th week of
pregnancy un til the 6th week after delivery . Developed in line with the
latest World Health Organization (WHO) guidelines on Prevention of
Mother-to-Child Transmission (PMTCT) Option A, the Mother-Baby Pack is a
color-coded take-home kit with simple graphics to help mothers identify the
different sets of drugs each to be taken during pregnancy, during labour and
breastfeeding, covering the entire period when the transmission can occur.
Also, the pack contains drugs for the new born baby. Launched in
Over 1,000 infants contract HIV everyday
from their mothers at the time of birth with the highest rate reported in
sub-Saharan
The drugs for the Mother-Baby Pack are
being manufactured and packaged in Cipla's world class manufacturing units in
Cipla's contribution to PMTCT dates way
back to the ‘Nevirapine donation program' aimed at reducing the rate of
mother-to-child transmission by 50% in the developing countries. Through this
program, Cipla offered the the anti-HIV drug ‘Nevimune' free of cost to any
agency or Ministry of Health that approached Cipla with its HIV/AIDS treatment
programmes. Dr. Y. K. Hamied further
added, “Cipla would make the Mother-Baby Pack available to various Ministries
of Health in sub-Saharan
About
Cipla's fight against HIV/AIDS:
At a time when the world had already
lost 20million people to HIV/AIDS, the cost of HIV/AIDS treatment of at least $12,000
per patient per year had made the scientific achievements in drug innovation
inaccessible to the ordinary people of the developing nations who were worst
hit with the disease. Cipla then revolutionized the treatment of HIV/AIDS in
2001 by bringing down the cost of HIV treatment and making the ARVs available
at below ‘Dollar a Day.' With the reduced cost of $300 per patient per year,
HIV/AIDS treatment became a reality and the survival rates went up
dramatically.
Further, Cipla's innovation of a Fixed
Dose Combination (FDC) in 2001 of the ‘triple cocktail drug' called Triomune
was a significant step which simplified treatment and fostered adherence. Cipla
was also the first to prepare a child-friendly three-in-one paediatric
formulation (Triomune Baby and Junior) for the young population infected with
HIV/AIDS. Cipla thereafter initiated a patient education campaign ‘Living with
Hope' in 2004 and has been conducting several ongoing training programs and
CMEs in India and internationally to cover various aspects of HIV/AIDS
treatment including adult, paediatric, MTCT, PEP etc.
Currently, with more than 45 ARV
formulations in its portfolio, Cipla supplies these to over 120 countries
including various Ministries of Health, Government of India and to several
international AIDS agencies like UNICEF, MSF, SCMS/PEPFAR, Clinton Foundation,
IDA, PAHO among others. Today, almost 1 out of 3 HIV-infected patients in the
third world is on Cipla drugs and Cipla continues to work towards its
commitment that ‘None shall be denied.'
About Cipla :
Cipla laid foundations for the Indian pharmaceutical industry back in 1935
with the vision to make
With a turnover of over US $ 1.2 billion, Cipla serves doctors and patients in over 180 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.44.99 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.80 |
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.