MIRA
INFORM REPORT
|
Report Date : |
12.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
DIVI’S LABORATORIES LIMITED |
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Registered
Office : |
7-1-77/E/1/303, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
12.10.1990 |
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Com. Reg. No.: |
01-11854 |
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CIN No.: [Company Identification
No.] |
L24110AP1990PLC011854 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
HYDD00549D |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the Stock exchange. |
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Line of Business
: |
Developing new processes for the production of Active Pharma Ingredients
(APIs) and Intermediates. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
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 |
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Maximum Credit Limit : |
USD 61000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are
strong and healthy. Directors are reported to be experienced an 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
|
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
|
Registered Office : |
7-1-77/E/1/303, |
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Tel. No.: |
91-40-23731318/ 23731760/61 |
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Fax No.: |
91-40-23733242 |
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E-Mail : |
marketing@divislaboratories.com
chemicals@divislaboratories.com
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Website : |
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Manufacturing Facilities: |
·
Choutuppal Unit Tel.: 91-8694-272092, 272260. Fax: 91-8694-272685. ·
100% Export Oriented Unit - Chippada Tel.: 91-8922-245166 Fax: 91-8922-245165 |
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Regional Office : |
Divi's Laboratories, USA Inc 31st Tel. No.: +1-(877)-3484522 Fax No.: +1- (973)- 9931070 E-mail.: usmail@divislaboratories.com SWISS OFFICE Divi’s Laboratories Europe AG, Gempenstrasse, 12, 4008, Tel. No.: +41-61-361
67 53 Fax No.: +41-61-361 67 55 E-mail.: eumail@divislaboratories.com |
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R and
D Centers: |
·
C-26, Industrial Estate, Sanathnagar, ·
·
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DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Murali K Divi |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. N V Ramana |
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Designation : |
Executive Director
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Name : |
Mr. Madhusudana Rao Divi |
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Designation : |
Project Director |
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Name : |
Mr. P Gundu Rao |
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Designation : |
Director (Research
and Development) |
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Name : |
Mr. Kiran S Divi |
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Designation : |
Director (Business
Development) |
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Name : |
Mr. K Satyanarayana |
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Designation : |
Director |
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Name : |
Mr. S Vasudev |
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Designation : |
Director |
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Name : |
Mr. G Venkat Rao |
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Designation : |
Director |
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Name : |
Mr. C Ayyanna |
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Designation : |
Director |
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Name : |
Mr. G Suresh Kumar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P V Lakshmi Rajani |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
|
|
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|
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|
65,135,100 |
49.13 |
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|
4,000,000 |
3.02 |
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69,135,100 |
52.15 |
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|
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|
50,000 |
0.04 |
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|
50,000 |
0.04 |
|
Total
shareholding of Promoter and Promoter Group (A) |
69,185,100 |
52.19 |
|
(B) Public
Shareholding |
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|
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|
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|
16039268 |
12.10 |
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|
787000 |
0.59 |
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|
21502395 |
16.22 |
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|
38328663 |
28.91 |
|
|
|
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|
11818127 |
8.91 |
|
|
|
|
|
|
9733855 |
7.34 |
|
|
1509926 |
1.14 |
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|
1989749 |
1.50 |
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|
1211414 |
0.91 |
|
|
731460 |
0.55 |
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|
1194 |
-- |
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|
45681 |
0.03 |
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|
25051657 |
18.90 |
|
Total Public
shareholding (B) |
63380320 |
47.81 |
|
Total (A)+(B) |
132565420 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
132565420 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Developing new processes for the production of Active Pharma Ingredients
(APIs) and Intermediates. |
PRODUCTION STATUS (As on 31.03.2009)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Active Pharma Ingredients and Intermediates |
(MTs) |
4000 |
2798.71 |
GENERAL INFORMATION
|
Bankers : |
v State Bank of v State Bank of v The Lakshmi
Vilas Bank Limited v Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
P.V.R.K. Nageswara Rao and Company Chartered Accountants |
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Address : |
109, Metro Residency, 6-3-1247, |
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Associates/Subsidiaries : |
·
Divis Laboratories ( ·
Divi’s Laboratories Europe AG, |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
132144145 |
Equity Shares |
Rs.2/- each |
Rs.264.288
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
132144145 |
Equity Shares |
Rs.2/- each |
Rs.264.288
Millions |
Note: Of the above 65597975 equity shares of Rs.2/-
each have been allotted as bonus shares on capitalization of general reserve
and other free 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 |
264.288 |
129.516 |
129.114 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
15156.463 |
12488.360 |
8610.749 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
15420.751 |
12617.876 |
8739.863 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
298.465 |
495.200 |
829.594 |
|
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2] Unsecured Loans |
30.024 |
31.198 |
31.198 |
|
|
TOTAL BORROWING |
328.489 |
526.398 |
860.792 |
|
|
DEFERRED TAX LIABILITIES |
519.050 |
485.652 |
412.990 |
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|
|
|
|
|
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TOTAL |
16268.290 |
13629.926 |
10013.645 |
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
5896.718 |
5896.707 |
4968.702 |
|
|
Capital work-in-progress |
203.908 |
144.294 |
461.890 |
|
|
Unallocated Expenditure pending capitalization |
0.000 |
0.000 |
32.631 |
|
|
Advances for Capital Works |
33.623 |
50.722 |
136.326 |
|
|
|
|
|
|
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INVESTMENT |
4418.586 |
1723.880 |
561.486 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
4795.727
|
3959.075 |
2756.553
|
|
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Sundry Debtors |
2344.415
|
2834.995 |
2142.451
|
|
|
Cash & Bank Balances |
128.687
|
128.677
|
126.082
|
|
|
Other Current Assets |
2.708
|
3.437
|
5.196
|
|
|
Loans & Advances |
1040.572
|
993.278
|
765.266
|
|
Total
Current Assets |
8312.109
|
7919.462
|
5795.548
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
4.609
|
32.959 |
1578.276 |
|
|
Other Current Liabilities |
1627.806
|
1583.071
|
|
|
|
Provisions |
964.239
|
489.109
|
364.662
|
|
Total
Current Liabilities |
2596.654
|
2105.139
|
1942.938
|
|
|
Net Current Assets |
5715.455
|
5814.323
|
3852.610
|
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
16268.290 |
13629.926 |
10013.645 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9292.825 |
11905.602 |
10331.846 |
|
|
|
Other Income |
306.962 |
230.144 |
136.112 |
|
|
|
TOTAL (A) |
9599.787 |
12135.746 |
10467.958 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material consumed |
3952.060 |
5426.465 |
4438.805 |
|
|
|
Manufacturing expenses |
717.365 |
787.214 |
645.075 |
|
|
|
Employees cost |
684.625 |
619.192 |
505.468 |
|
|
|
Other expense |
812.602 |
1159.849 |
895.371 |
|
|
|
Increase or decrease in stock |
(992.374) |
(990.864) |
(321.909) |
|
|
|
TOTAL (B) |
5174.278 |
7001.856 |
6162.810 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4425.509 |
5133.890 |
4305.148 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
27.578 |
72.259 |
101.776 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4397.931 |
5061.631 |
4203.372 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
514.516 |
478.196 |
356.518 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3883.415 |
4583.435 |
3846.854 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
441.369 |
338.878 |
311.302 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3442.046 |
4244.557 |
3535.552 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10159.310 |
6800.508 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
792.865 |
389.088 |
NA |
|
|
|
Difference in final dividend for 2007-08 |
0.000 |
0.463 |
NA |
|
|
|
Corporate dividend tax |
131.685 |
66.204 |
NA |
|
|
|
General reserve |
530.000 |
430.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
12146.806 |
10159.310 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
83.540 |
110.335 |
9628.204 |
|
|
|
Contract research fee |
0.612 |
0.236 |
37.042 |
|
|
|
Interest |
0.133 |
0.074 |
3.919 |
|
|
|
Others |
0.012 |
0.037 |
0.808 |
|
|
TOTAL EARNINGS |
84.297 |
110.682 |
9669.973 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
12.936 |
24.705 |
2105.709 |
|
|
|
Stores & Spares |
0.092 |
0.735 |
4.393 |
|
|
|
Capital Goods |
0.077 |
0.105 |
86.125 |
|
|
TOTAL IMPORTS |
13.105 |
25.545 |
2196.227 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
26.40 |
32.79 |
54.77 |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
31.12.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
30.06.2010 (Rs. In
Millions) |
|
|
3rd Quarter |
2nd
Quarter |
1st
Quarter |
|
Net Sales |
3139.000 |
2568.500 |
2653.000 |
|
Total Expenditure |
1904.100 |
1685.200 |
1624.600 |
|
PBIDT (Excl OI) |
1234.900 |
883.300 |
1028.400 |
|
Other Income |
70.800 |
59.600 |
49.000 |
|
Operating Profit |
1305.700 |
942.900 |
1077.400 |
|
Interest |
5.600 |
5.200 |
5.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
1300.100 |
937.700 |
1071.900 |
|
Depreciation |
135.200 |
132.700 |
131.100 |
|
Profit Before Tax |
1164.900 |
805.000 |
940.800 |
|
Tax |
149.200 |
75.400 |
77.900 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1015.700 |
729.600 |
862.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1015.700 |
729.600 |
862.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
35.86
|
34.98 |
33.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
41.79
|
38.50 |
37.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.33
|
33.17 |
33.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.36 |
0.44 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.19
|
0.21 |
0.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.20
|
3.76 |
2.98 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject, an Active Pharma Ingredients (APIs) and Intermediates company
was incorporated in the year 1990. Subject prime fundamental is Research and
Development and focused on developing new processes for the production of
Active Pharma Ingredients (APIs) and Intermediates. The company provides
complete turnkey solutions to the domestic Indian pharmaceutical industry. In
the year 1994 the name of the company was changed to Divi's Laboratories
Limited. Subject is the largest manufacturer of some peptide reagents and
protected amino acids worldwide. The product group of the company includes
Generics, Intermediates, Protected Amino Acids, Chiral Synthesis and
Carotenoids.
During the year 1991, the company successfully developed commercial processes
for intermediates and bulk actions and supply to manufacturing enterprises.
Subject production experience goes back to few years only; the company
established its first manufacturing facility in the year 1995 at
Complete cGMP guidelines are complied with in both the plants. The US FDA
successfully inspected the Unit-1 at
The US FDA again inspected the Unit-1 at
The company has received letter of approval from Ministry of Commerce,
Government of India in the year 2006, for setting up a sector-specific special
economic zone (SEZ) for pharmaceutical ingredients at Chippada, Bheemunipatnam
in
During the year 2006-07, the company has spent an amount of Rs.2308.400
millions on capital expenditure (net of capital work-in-progress) towards
enhancing production capacities. And also has developed an SEZ titled Divi's
Pharma SEZ' on a 250-acre site at village Chippada, Bheemunipatnam Mandal,
Visakhapatnam Dist. Subject has had a successful inspection by the US-FDA,
without any observations, for its unit-1 at vill. Lingojigudem, Choutuppal
Mandal near
The company is the first to develop and manufacture synthetic carotenoids.
Subject wants to maintain leadership in custom synthesis of APIs and
Intermediates for health care and life sciences industry so far and to be one
of the top companies worldwide in the domain. To develop generic APIs for the
late life cycle needs of the Industry. With this, also Subject intend to serve
the community at large through social, educational and environmental
initiatives that would establish strong foundations for a better tomorrow.
Performance and
Operations Review
During the year, Divi achieved a turnover of Rs. 9290.000 Millions as
against Rs. 11910.000 Millions during the previous year resulting in a degrowth
of 22%. Exports constituted 91% of total turnover as against 93% during the
last year. Profit after Tax (PAT) for the year amounted to Rs.3440.000 Millions
as against Rs. 4240.000 Millions during the last year. The last couple of years
have seen unprecedented global economic slowdown with its effect on almost all
markets beit commodities, crude, financial or currency. This has resulted in
serious turmoil across the globe with varying severity in different countries
or regions. They have, in their last report, reported that, as part of their
efforts to conserve resources in the current economic situation, many of their
customers have been undertaking lean inventory management and destocking
inventories across all their supply chains covering their plants, warehouses,
distributors, stockiest as well as suppliers. This trend of inventory
rationalization continued during the year as well. This has resulted in lower
sales for The Company during the year although there is no decrease in the
primary demand for the dosage forms of APIs being sold by us. T he company now
visualizes inventory rationalization is more or less completed by its customers
and expects normalization of business across its markets going forward with the
results of the fourth quarter already reflecting this trend.
During the year, Divi has added 7 products to its product portfolio of
which 2 are generic APIs and intermediates and 5 are custom synthesis APIs and
intermediates. The company continues to
work towards optimizing the capacities created at its multi-purpose
manufacturing facilities and also adding additional capacities aimed at the
promising business opportunities available to it in its domain of capability in
line with its strategy to work with innovators playing a complementary role and
non-compete model with its generic customers.
CHANGES IN CAPITAL
STRUCTURE
(i) Authorised Share Capital
The Authorised Capital of the company was reclassified as Rs.200.000
Millions divided into 100.000 Millions Equity shares of Rs.2 each and has been
increased to Rs.300.000 Millions divided into 150.000 Millions equity shares of
Rs.2 each.
(ii) Bonus Issue
During the year, The company has
allotted bonus shares in the proportion of ONE equity share for every ONE
equity share held, with the approval of the members through postal ballot resolution
dated 22.07.2009. Company has issued 6,48,47,975 equity shares as Bonus Shares
by capitalizing a part of the reserves comprising Debenture Premium, Debenture
Forfeiture, Share Premium and/or General Reserves of the company.
(iii) Allotment of Equity Shares to the Employees under ESOP 2006 Scheme
During the year, They allotted
25, 38,145 equity shares of Rs.2 each to employees on exercise of their stock
options. As a result of the Bonus issue and the allotment of shares under ESOP
scheme, the paid-up equity capital of the company has increased by Rs.134.800
Millions to Rs.264.300 Millions. There has been an addition of Rs. 257.700
Millions to the Share Premium Account on account of ESOPs allotment.
Management
Discussion and Analysis
Overview
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956 and Generally Accepted Accounting
Principles (GAAP) in
Industry and
Structure
According to IMS Health estimates, the global pharmaceutical market in
2010 will grow 4-6% on a constant-dollar basis, exceeding $825 billion, driven
by stronger near-term growth in the
To the now-familiar factors impeding market growth such as patent
expirations, a slowdown in innovative product launches, and hurdles imposed by
payers on market access and acceptance, there is a new element of economic
downturn that overlay the pharma market - according to IMS. There is a clear
correlation between demand for medicines and key macroeconomic variables such
as GDP, consumer spending and government expenditures – and the worldwide
financial crisis will likely contribute to record-low sales growth during the
year 2010. The pharmaceutical industry is not recession-proof, but it is
insulated to a greater extent than other industries where spending is more
discretionary.
The big pharma have been working on strategies like M and A, OTC growth,
consumer products and focusing on emerging markets – and to this end, are
increasing their dependence on cost efficient sources for the active
ingredient.
Company
infrastructure
Divi operates from its Headquarters and Registered Office at
- The 1st
Facility at village Lingojigudem, Choutuppal Mandal, Nalgonda district,
about 60 KM from
- The 2nd
Facility is a 100% Export Oriented Unit at village Chippada,
Bheemunipatnam Mandal, Visakhapatnam Dist. about 30 KM from the port city
of
- The 3rd facility
is an SEZ Unit at village Chippada, Bheemunipatnam Mandal, Visakhapatnam
Dist.
The company has 4 Research Centers with the well defined functional
focus on custom synthesis, contract research for MNC companies as also future generics
involving processes like route design, route selection, establishing gram scale
process and structural confirmation, process optimization, impurity profile,
pilot studies, pre-validation batches, validation of process and transfer of
technology to Plant, review efficiency of processes and ongoing process.
The company has constantly been augmenting capacities to cater to
increasing business needs. Their Divi’s Research Centre (DRC) at Sanathnagar,
FIXED ASSETS
v Land and Development
v Buildings
v Plant and Machinery
v Laboratory Equipment
v Furniture and Fixtures
v Data Processing Equipment
v Vehicles
Contingent
Liabilities:
|
Particular |
As on 31.03.2010 (Rs. in
Millions) |
As on 31.03.2009 (Rs. in
Millions) |
|
On account of letters
of credit and guarantees issued by the bankers |
440.468 |
305.530 |
|
On account of
bonds and/ or legal agreements executed with central excise/ customs
authorities/ development commissioners |
725.000 |
725.000 |
|
Demand being disputed
/ contested by the company |
177.864 |
26.082 |
|
Estimated amount
of contracts remaining to be executed on capital account and not provided for
net of advances |
69.196 |
71.250 |
|
Total |
1412.528 |
1127.862 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH SEPTEMBER, 2010
Rs. in Millions
|
Particular |
Quarter
Ended |
Half
Year Ended |
|
|
30.09.2010 |
30.09.2010 |
|
|
|
|
|
Net Sales/ Income
form operation |
2533.000 |
5158.400 |
|
Other Operating
Income |
35.500 |
63.100 |
|
Total Income |
2568.500 |
5221.500 |
|
Expenditure |
|
|
|
Increase /
Decrease in stock |
87.700 |
(54.700) |
|
Consumption of
raw material / purchase |
945.500 |
2103.300 |
|
Purchase of
traded goods |
0.000 |
0.000 |
|
Employees cost |
186.200 |
359.900 |
|
Depreciation |
132.700 |
263.800 |
|
Other expenditure
|
|
|
|
Manufacturing
expenditure |
251.800 |
464.200 |
|
Other expenses |
214.000 |
437.100 |
|
Total expenditure
|
1817.900 |
3573.600 |
|
Profit from
operation before other income, interest and exceptional items |
750.600 |
1647.900 |
|
Other income |
59.600 |
108.600 |
|
Profit before
interest and exceptional items |
810.200 |
1756.500 |
|
Interest |
5.200 |
10.700 |
|
Profit after
interest but before exceptional items |
805.000 |
1745.800 |
|
Exceptional items |
0.000 |
0.000 |
|
Profit / Loss
from ordinary activities before tax |
805.000 |
1745.800 |
|
Tax expenses |
|
|
|
Current tax |
69.100 |
141.000 |
|
MAT credit
entitlements |
7.800 |
7.300 |
|
Deferred tax |
(1.500) |
5.000 |
|
Net profit/ Loss from
ordinary activities after tax |
729.600 |
1592.500 |
|
Extra ordinary
items |
0.000 |
0.000 |
|
Net profit / Loss
for the period |
729.600 |
1592.500 |
|
Paid up equity
share capital (face value of equity shares of Rs. 2/- each) |
265.100 |
265.100 |
|
Reserves
excluding revaluation reserves |
-- |
-- |
|
Earning per
shares (in Rs) Basic/ Diluted |
5.52 |
12.05 |
|
Public
shareholding |
|
|
|
Number
of Shares |
63346140 |
63346140 |
|
% of
Shareholding |
47.80 |
47.80 |
|
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 |
69185100 |
69185100 |
|
-
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) |
52.20 |
52.20 |
STATEMENT OF
ASSETS AND LIABILITIES
|
Particular |
Half Year Ended |
|
|
30.09.2010 |
|
Shareholders Funds
|
|
|
Capital |
265.100 |
|
Reserves and
Surplus |
16786.900 |
|
Loan Funds |
213.700 |
|
Deferred Tax Net
|
524.000 |
|
Total |
17789.700 |
|
Fixed Assets |
6466.900 |
|
Investments |
4215.500 |
|
Current Assets,
Loans and Advances |
|
|
Inventories |
5079.200 |
|
Sundry Debtors |
2188.600 |
|
Cash and bank
Balances |
102.400 |
|
Others Current
Assets |
2.100 |
|
Loans and
Advances |
1158.900 |
|
Less: Current
Liabilities and Provisions |
|
|
Liabilities |
1377.200 |
|
Provisions |
46.700 |
|
Net Current
Assets |
7107.300 |
|
Miscellaneous
Expenditure |
0.000 |
|
Total |
17789.700 |
Note:
- The above results for the period ended 30th September
2010, as reviewed by the audit committee, were considered and approved by the
board of directors at its meeting held on 9th November, 2010
and were subjected to limited review by the auditors.
- The company is primarily engaged in the manufacturer of active
pharmaceutical ingredients and intermediates. Accordingly there are no reportable
segments as per accounting standard 17 on segment reporting notified under
the companies act, 1956.
- Exceptional item of Rs.540.400 millions provided during the 1st
quarter of last year towards tax liability of earlier years has been
withdrawn as the relevant tax provisions have since been amended in
finance act of 2010
- The company is implementing a project for setting up anew unit
called DSN SEZ Unit at
- During the current quarter, the company has allotted 387095 equity
shares of Rs.2/- each to the employees on exercise of their stock options.
- The figure for the previous year/period have been
reclassified/regrouped, wherever necessary.
- Details of investor complaints pursuant to clause 41 of the listing
agreement for the quarter ended 30.09.2010.
WEBSITE DETAILS
PROFILE
Established in the year 1990, with Research and Development as its prime
fundamental, subject focussed on developing new processes for the production of
Active Pharma Ingredients (APIs) and Intermediates. The company in a matter of
short time expanded its breadth of operations to provide complete turnkey
solutions to the domestic Indian pharmaceutical industry.
With five years of experience, expertise and a proven track-record of helping
many companies with its turn-key and consulting strengths, Subject established
its first manufacturing facility in 1995.
Built on a 300 acre site at
Subject set up its second manufacturing facility at
Both the facilities are primarily engaged in the manufacture
of:
v
Active Pharmaceutical Ingredients (APIs) and
Intermediates for Generics
v
Custom Synthesis of API's and Advanced
intermediates for discovery compounds for pharma giants
v
Building blocks for Peptides
v
Building blocks for Nucleotides
v
Carotenoids
v
Chiral ligands
Complete cGMP guidelines are complied with in both the plants. The
Unit-1 at
KEY PEOPLE
Dr Murali K Divi,
Chairman and Managing Director
Dr. Divi holds a doctorate degree in Pharmaceutical Sciences
from
Dr. Divi has considerable expertise in implementing and managing bulk fine
chemical manufacturing facilities conforming to GMP/ US-FDA standards. He has
led R and D teams and developed efficient processes for speciality chemicals,
pharmaceutical intermediates, herbicides an
Mr. N. V. Ramana,
Executive Director
Mr. Ramana is a graduate in chemistry from
Mr. Madhusudana Rao
Divi, Director (Projects)
Mr. Rao Divi is a post-graduate in Structural Engineering
from
Dr. P. Gundu Rao,
Director (R and D)
Dr. Gundu Rao is Bachelors and Masters in Pharmacy from
Mr. Kiran S Divi,
Director (Business Development)
Mr. Kiran S Divi is a Bachelor of Pharmacy from
PRESS RELEASE:
PRESS RELEASE
DATED 9TH NOVEMBER, 2010
DIVI’S
LABS EARNS AN INCOME OF RS.5240.000 MILLIONS IN H1 OFFY10
Divi’s Laboratories has earned a total income of Rs.5240.000 millions on
a consolidated basis for the half-year ended 30th September, 2010 as against an
income of Rs. 4450.000 millions during
the corresponding half year of FY10. Profit before Tax (PBT) for the half-year
came to Rs.1710.000 millions as against
a PBT of Rs. 1620.000 millions for the
corresponding half-year in the last year. Profit after Tax (PAT) for the
current half-year came to Rs.1560.000 millions
as against a PAT of Rs. 1430.000 millions during the corresponding previous period.
Implementation of the company’s project titled “DSN SEZ Unit” at
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.45.21 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.62.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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.