MIRA INFORM REPORT

 

 

Report Date :

19.05.2011

 

IDENTIFICATION DETAILS

 

Name :

ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED

 

 

Registered Office :

‘Orchid Towers’, 313 Valluvar Kottam High Road, Nungambakkam, Chennai- 600 034, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

01.07.1992

 

 

Com. Reg. No.:

18-22994

 

 

Paid-up Capital :

Rs. 704.420 Millions

 

 

CIN No.:

[Company Identification No.]

L24222TN1992PLC022994

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEO03079G

CHEO00121C

 

 

Legal Form :

Public Limited Liability Company.  The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (62)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 39000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office/ Corporate :

‘Orchid Towers’, 313 Valluvar Kottam High Road, Nungambakkam,  Chennai- 600 034, Tamilnadu, India

Tel. No.:

91-44-28251532 / 28251547 / 28284776/ 28211000/ 28230000

Fax No.:

91-44-28284983/ 28211002

E-Mail :

orchid@giasmd01.vsnl.net.in

corporate@orchidpharma.com

Website :

http://www.orchidpharma.com

 

 

Head Office :

‘Orchid Towers’, 152, Village Road, Nungambakkam, Chennai – 600 034, Tamilnadu, India

 

 

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

Tel. No.:

91-44-27446402/ 403/205/ 206/ 320

Fax No.:

91-44-27446321

 

 

Factory 2 API FACILITIES

 :

Aurangabad Works

L-8 and L-9, MIDC Industrial Area, Waluj, Aurangabad  District – 431136, Maharashtra, India

Tel. No.:

91-240-2554992/ 993/ 994

Fax No.:

91-240-2554968

 

 

Factory 3 FORMULATIONS

 :

B3 and B4, B11 to B14, SIDCO Industrial Estate, Alathur, Kancheepuram Dist. – 603 110, Tamilnadu, India

Tel. No.:

91-44-27156793/ 94

Fax No.:

91-44-27156816

 

 

Factory 4  ENGINEERING MARKETS :

Plot Nos. A-10, A-11, SIDCO Industrial Estate, Alathur, Kancheepuram Dist. – 603 110, Tamilnadu, India

Tel. No.:

91-44-27446909

Fax No.:

91-44-27446657

 

 

 

 

Factory 6 :

Plot Nos. B3-B6, B11 and B14 SIPCOT Industrial Park, Irungattukottai, Sriperumbudur – 602 105, Tamilnadu

 

 

Factory 7 :

Vinay Bhavya Complex, No. 159A, I Floor, ‘A’ Wing, C S T Road, Kalina, Santacruz, Mumbai – 400 098, Maharashtra

 

 

R and D Centre :

 Plot No. 476 / 14, Old Mahabalipuram Road, Sholinganallur, Chennai – 600 119, Tamilnadu, India

Tel No.:

91-44-24503137/ 1474/ 1477/ 2246

Fax No.:

91-44-24501396/ 1650

 

 

R and D Centre :

Plot No. B21-B23 and B31-B33, SIPCOT Industrial Park, Irungattukotti Sriperumbudur (TK.)- 602 105, Kancheepuram District, Tamilnadu, India 

 

 

Marketing Office

Orchid Helathcare

Korovaya Val Street, H.No. 7, Building 1, Entrance 1, Office 22-23, Moscow, Russia

Tel. No.:

007495-5141032/ 33

Fax No.:

007495-5141034

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. R. Narayanan

Designation :

Chairman

 

 

Name :

Mr. K. Raghavendra Rao

Designation :

Managing Director

Date of Birth/Age :

44 years

Qualification :

B.Com., PGDM (IIM-A), ACS, AICWAI

Experience :

24 years

Date of Appointment :

13.07.1992

Previous Employment :

Al Buraimi Group, Sultanate of Oman, Director

 

 

Name :

Dr. C. Bhaktavatsala Rao

Designation :

Deputy Managing Director

Date of Birth/Age :

53 years

Qualification :

B.E., M. Tech., Ph. D.

Experience :

29 years

Date of Appointment :

19.08.1998

Previous Employment :

Ashok Leyland Limited, Deputy General Manager – Corporate Planning

 

 

Name :

Mr. M R Girinath

Designation :

Director

 

 

Name :

Mr. Deepak Vaidya

Designation :

Director

 

 

Name :

Dr. I. Seetharam Naidu

Designation :

Director

 

 

Name :

Mr. Subramanian Andi

Designation :

Director (IDBI Nominee)

 

 

Name :

Mr. Anil Thadani

Designation :

Director

 

 

Name :

Dr. Francis Pinto

Designation :

Director

 

 

Name :

Mr. Raj Rajkumar

Designation :

Alternate Director

 

 

Name :

Mr. S. Jeyakumar

Designation :

Nominee Director (IDBI)

 

 

Name :

Mr. Henry Simon

Designation :

Alternate Director

 

 

Name :

Mr. Sanjay Sehgal

Designation :

Alternate Director

 

 

Name :

Mr. John  Cheesmondwas

Designation :

Alternate Director

 

 

KEY EXECUTIVES

 

Name :

Mr. L. Chandrasekar

Designation :

Company Secretary 

 

 

Management Team:

Name :

Mr. D S Bhaskara Raju

Designation :

President - Finance and Business Planning

 

 

Name :

Dr. Gautam Kumar Das

Designation :

President - Active Pharmaceutical Ingredients

 

 

Name :

Dr. Sumant Baukhandi

Designation :

President - Regulatory Affairs and Quality Assurance

 

 

Name :

Ms. Edna Braganza

Designation :

Senior Vice President - International Marketing and Procurement

 

 

Name :

Mr. Kalidindi V Raju

Designation :

Senior Vice President - Manufacturing

 

 

Name :

Mr.  S Mani

Designation :

Senior Vice President - Manufacturing

 

 

Name :

Mr. Ashutosh Ojha

Designation :

Country Head (Domestic Formulations)

 

 

Name :

Mr. L Chandrasekar

Designation :

Vice President - Internal Audit and Company Secretary

 

 

Name :

Mr. P N Deshpande

Designation :

Vice President - Production and Technical

 

 

Name :

Mr. C R Dwarakanath

Designation :

Vice President - Corporate Safety, Health and Environment

 

 

Name :

Mr. Imtiyaz Basade

Designation :

Vice President - Regulatory Affairs

 

 

Name :

Mr. S Krishnan

Designation :

Vice President - Finance

 

 

Name :

Dr. S Mahender Rao

Designation :

Vice President - Chemical Development

 

 

Name :

Mr. Makarand M Deshpande

Designation :

Vice President - International Marketing

 

 

Name :

Mr. S Nammalvar

Designation :

Vice President - Projects and Engineering Services

 

 

Name :

Mr. K C Pathak

Designation :

Vice President - PPIC and Outsourcing

 

 

Name :

Dr. Praveen Reddy

Designation :

Vice President - Pharma Research

 

 

Name :

Mr. K Ramesh

Designation :

Vice President - Analytical Development

 

 

Name :

Mr. M S Rangesh

Designation :

Vice President - Human Resources

 

 

Name :

Mr. Satish Haribhau Joshi

Designation :

Vice President - Quality Assurance

 

 

Name :

Dr. U P Senthil Kumar

Designation :

Vice President - Chemical Development

 

 

Name :

Mr. Umesh D Kapre

Designation :

Vice President - Manufacturing

 

 

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

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

17,856,292

26.57

Bodies Corporate

3,646,324

5.42

Sub Total

21,502,616

31.99

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

21,502,616

31.99

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

892,897

1.33

Financial Institutions / Banks

13,125

0.02

Insurance Companies

3,170,960

4.72

Foreign Institutional Investors

9,477,177

14.10

Sub Total

13,554,159

20.17

(2) Non-Institutions

 

 

Bodies Corporate

10,232,047

15.22

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

10,300,266

15.32

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

11,110,741

16.53

Any Others (Specify)

515,559

0.77

Non Resident Indians

500,259

0.74

Overseas Corporate Bodies

300

-

Foreign Corporate Bodies

15,000

0.02

Sub Total

32,158,613

47.84

Total Public shareholding (B)

45,712,772

68.01

Total (A)+(B)

67,215,388

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

3,226,688

-

Sub Total

3,226,688

-

Total (A)+(B)+(C)

70,442,076

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs.

 

 

PRODUCTION STATUS (As on 31.03.2008)

 

Particulars

Unit

 

Licensed Capacity

Installed Capacity

Bulk Drugs and Intermediates

 

 

 

 

Oral and Sterile

MT

 

900

800

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

v      Bank of India

v      Canara Bank

v      Citibank N. A.

v      Export-Import Bank of India

v      ICICI Bank Limited

v      IDBI Bank Limited

v      Indian Bank

v      Punjab National Bank

v      State Bank of India

v      Union Bank of India

v      Bank of Baroda

v      Allahabad Bank

v      Federal Bank

v      State Bank of Indore

v      Axis Bank Limited

v      Bank of America

v      ABN Amro Bank

v      ECO Bank

v      JS ATF Bank

v      Industrial Investment Bank

 

 

Facilities :

SECURED LOANS

31.03.2008

(Rs. In Millions)

From Banks

 

Rupee Term Loans

3611.513

Foreign Currency Term Loans

1364.640

Rupee and Foreign Currency Packing Credit and Advance against Bills

4629.851

 

 

Hire Purchase Finance

18.610

 

 

Total

9624.614

 

Note:

 

Term loan from Bank of Baroda for NPNC project is secured on the assets of NPNC project at Aurangabad and Irungattukottai. All other Rupee Term Loans and Foreign Currency Term Loans from Banks are secured by Pari Passu charge by way of joint mortgage on immovable and movable assets situated at Factory premises at SIDCO Industrial Area, 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.2000.000 Millions are additionally secured by personal guarantee of Mr. K. Raghavendra Rao, Managing Director of the Company.

 

Packing Credit and Advances against bills from Banks and Working Capital Loans from Banks and Financial Institutions 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 Mr. K. Raghavendra Rao, Managing Director of the Company. Hire - Purchase Loans are secured by the assets acquired through such loans.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

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), Second Street, North Gopalapuram, Chennai – 600086, Tamilnadu

 

INTERNAL / US GAAP AUDITORS

Deloitte Haskins and Sells

Chartered Accountants

476, Temple Towers, 2nd Floor, Nandanam, Chennai – 600 035, Tamilnadu

 

 

Associates / Subsidiaries:

  • Orchid Research Laboratories Limited
  • Bexel Pharmaceutical Inc.
  • Orgenus Pharma Inc.
  • Orchid Europe Limited
  • Orchid Pharma Japan K.K
  • Ogna Farma
  • Orchid Pharmaceutical Inc.
  • Orchid Pharmaceuticals SA (Pty.) Limited

 

 

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

 

 

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

704.420

704.420

658.508

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

9091.930

5997.730

6222.445

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9796.350

6702.150

6880.953

LOAN FUNDS

 

 

 

1] Secured Loans

10217.600

16950.100

9624.614

2] Unsecured Loans

6253.590

9017.440

9909.818

TOTAL BORROWING

16471.190

25967.540

19534.432

DEFERRED TAX LIABILITIES

2038.090

1294.920

1157.755

 

 

 

 

TOTAL

28305.630

33964.610

27573.140

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

14634.140

18663.470

14138.067

Capital work-in-progress

4684.370

5457.860

6163.261

 

 

 

 

INVESTMENT

1235.650

1223.680

1138.200

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4025.270

7436.880
6331.864

 

Sundry Debtors
7162.330

6590.360
5225.638

 

Cash & Bank Balances
3249.090

415.200
228.484

 

Other Current Assets
42.040

50.880
1.318

 

Loans & Advances
2847.240

1544.990
1464.267

Total Current Assets
17325.970

16038.310

13251.571

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors and Other Current Liabilities
5976.160

7288.770
7117.959

 

Provisions
3598.340

965.730
0.000

Total Current Liabilities
9574.500

8254.500
7117.959

Net Current Assets
7751.470

7783.810
6133.612

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

835.790

0.000

 

 

 

 

TOTAL

28305.630

33964.610

27573.140

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

22651.380

11914.400

12389.162

 

 

Other Income

98.000

901.540

725.087

 

 

TOTAL                                     (A)

22749.380

12815.940

13114.249

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw material consumed

4622.650

5377.540

 

 

Power and fuel cost

664.350

734.460

 

 

 

Employee cost

1592.920

1228.840

 

 

 

Other manufacturing expenses

1690.000

1501.420

 

 

 

General and administration expenses

1151.390

690.320

 

 

 

Selling and distribution expenses

422.430

469.960

 

 

 

Miscellaneous expenses

1387.220

978.120

 

 

 

Increase or decrease in stock

2694.510

(647.830)

 

 

 

TOTAL                                     (B)

14225.470

10332.830

8940.895

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

8523.910

2483.110

4173.354

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2412.330

1551.860

811.263

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

6111.580

931.250

3362.091

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1511.040

1299.730

976.678

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

4600.540

(368.480)

2385.413

 

 

 

 

 

Less

TAX                                                                  (H)

1287.140

153.270

540.032

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3313.400

(521.750)

1845.361

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

283.220

815.750

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

3596.620

294.000

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

NA

10085.560

 

 

Other Earnings

NA

NA

412.310

 

TOTAL EARNINGS

NA

NA

10497.870

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

NA

1959.804

 

 

Stores & Spares

NA

NA

417.466

 

 

Capital Goods

NA

NA

706.407

 

TOTAL IMPORTS

NA

NA

3083.677

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

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)

(%)
20.31

(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 China for manufacturing sterile APIs.

 
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 Aurangabad. During the year 2001, the company had issued foreign currency convertible bonds to International finance Corporation. Subject had inked a 50:50 joint venture alliance pact with a California-based drug discovery research firm Bexel Biotechnology Inc in the year of 2002.  

 
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 US market. In 2005, the company made pact with Alpharma Inc to market oral non-antibiotic formulations in US and European markets and also entered into agreement with STADA Pharmaceuticals, Inc (USA). In 2006, Subject had signed a deal with Biovitrum in drug discovery field. The Company received approval from the US FDA for its ANDAs (abbreviated new drug application) for Cefdinir for capsules 300 mg and Cefdinir for oral suspension in July 2007.

 
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 US and utilised significant portion of the manufacturing capacity to cater to the US market. Also, the  market share of Piperacillin-Tazobactam injections for Europe and ANZ  regions too showed good signs of growth during the second part of the fiscal year 2009-10.

 

 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, India (ORLL) 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., USA (Bexel) During the year, 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 Delaware based subsidiary of the Company and is also the 100% holding company of Orgenus Pharma, Inc. Orgenus has reported a satisfactory year in the US market. The Company continued to support The  Company in its current business relationships and also provide the required services with ground operations and regulatory processes. It has also continued to explore new strategic business expansion opportunities for the Company.

 

Orchid Europe Limited, United Kingdom The principle activity of The  Company’s subsidiary in Europe namely Orchid Europe Limited (OEL) is to support the generic foray into the EU market and provision of regulatory support as well as business development support to the parent company.  The entity is already active in the field of generics registrations and in identifying business partnerships and is well established on the path of supporting the generics plans of Orchid in Europe.

 

Orchid Pharmaceuticals (South Africa) Pty Ltd., South Africa

 

The  Company’s wholly owned subsidiary, Orchid Pharmaceuticals (South Africa) Pty Limited, was incorporated to register and market bulk drugs and formulations in South Africa.  The Company is only in the process of submitting dossiers for obtaining marketing approval from the regulatory authority, MCC and the applications are at various stages of the registration process.

 

Orchid Pharma Japan K K

 

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 Japan. A major achievement during the fiscal year was obtaining the approval of Pharmaceutical and Medical Devices Agency (PMDA) for Orchid’s Alathur facility. On the regulatory front the Company plans to file more DMFs and ANDAs during the year for oral cephalosporin and other products.  Discussions with few companies are on and the Company expects to make good progress during this year.

 

 

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:

 

  • Freehold Land
  • Leasehold Land
  • Building
  • Plant and Machinery
  • Factory Equipment
  • Laboratory Equipment
  • Office Equipment
  • Furniture and Fitting
  • Vehicles

 

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 Aurangabad, near Mumbai) and three manufacturing sites for Dosage forms (at Irungattukottai and Alathur in Chennai), besides a world-class R and D centre (at Sholinganallur, Chennai). Subject ’s facilities 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 China for manufacturing sterile APIs.


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 US. Through superior infrastructure and by adopting a judicious blend of structure-based drug design approach, Subject  has been able to simultaneously work on several therapeutic programs with several lead compounds in advanced stages of trials. Subject  has also entered into Contract Research initiatives with key multinational companies.

 

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:

  1. The above audited financial results were approved by the Board of Directors at its meeting held on Wednesday, 18.05.2011.
  2. The Company is operating in single segment (i.e) "Pharmaceuticals".
  3. 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).
  4. Exceptional items include exchange gain / (loss) on FCCBs.
  5. The Board has recommended a dividend of Rs.3/- per share on the equity share of Rs.10/- each.
  6. 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.
  7. 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%

 

Chennai, India | 18.05.2011

 

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%.

 

Highlights of the Assets and Liabilities statement for the fiscal ended 31.03.2011.

(Consolidated basis)

 

Reduced receivable days - 105 days in FY11 (200 days in FY10).

Lower Inventory days - 126 days in FY11 (164 days in FY10).

Net Debt / equity ratio stood at 1.52 (Net debt Rs 16331.800 millions and Net worth Rs 10690.000 millions).

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 Ltd.

Regulatory update

 

Formulations

United States

Orchid's cumulative ANDA (Abbreviated New Drug Application) filings for the US market stands at 42. This includes 8 Para IV FTF (First–To–File) filings. The break-up of the total ANDA filings is 13 in Cephalosporins space and 29 in the NPNC (Non-penicillin, Non-cephalosporin) space.


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, India Prisons Service, Interpol, etc.

 

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.45.08

UK Pound

1

Rs.73.34

Euro

1

Rs.64.30

 

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.