MIRA
INFORM REPORT
|
Report Date : |
19.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
WANBURY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
11.08.1988 |
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Com. Reg. No.: |
11-48455 |
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Capital
Investment/ Paid-up Capital: |
Rs. 146.893
Millions |
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CIN No.: [Company
Identification No.] |
L51900MH1988PLC048455 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP12825B /
VPNW00073D |
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PAN No.: [Permanent
Account No.] |
AABCP5939P |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business : |
Manufacturer of Pharmaceuticals,
Medicines, Organic Chemicals and Bulk Drugs such as Acyclovir, Metformin and
Salsalate |
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No. of Employees: |
116 persons -- 18
persons in office and 98 persons in factory (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The company
has incurred some losses in the current year. However, networth appears to be
satisfactory. Trade relations are fair. Business is active. Payments are
reported to be usually correct 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Corporate Office : |
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Tel. No.: |
91-22-67942222 |
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Fax No.: |
91-22-67942111/ 333 |
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E-Mail : |
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Website : |
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Head Office : |
Plot No. 28, 1st
Floor, Kopri Road, Sector – 19 C, Vashi, Navi Mumbai – 400 703, Maharashtra |
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Tel. No.: |
91-22-27668938/27668939/27668958/27668959 |
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Fax No.: |
91-22-27663944 |
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E-Mail : |
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Factory 1 : |
A-15, MIDC
Industrial Area, Patalganga, Taluka - Khalapur,
District Raigad - 410 220, |
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Tel. No.: |
91-2192-250444/
91-22-27630034/254006 |
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Fax No.: |
91-2192-250531 /
91-22-27619447 |
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E-Mail : |
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Area : |
Leased -- 7,595 sq. mtrs. |
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Factory 2 : |
Plot No. J – 17,
MIDC Industrial Area, Tarapur, |
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Tel. No.: |
91-2192-250444/
91-22-27630034/254006 |
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Fax No.: |
91-2192-250531 /
91-22-27619447 |
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Factory 3 : |
Plot No. 24, M.I.D.C Tarapur, |
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Factory 4 : |
Plot No. D-312, ITC Industrial Area, MIDC Turbhe, Navi Mumbai, |
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Factory 5: |
K. |
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Overseas Office: |
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E mail: |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. A L Bongirwar |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. N.K. Puri |
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Designation : |
Non-Executive Independent Director |
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Qualification : |
MSC (Physics) |
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Expertise in Specific Area : |
Banking |
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Date of Appointment : |
09.03.2005 |
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Name : |
Dr. P.L Tiwari |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. P R Dalal |
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Designation : |
EXM Bank Nominee |
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Name : |
Mr. K Chandran |
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Designation : |
Whole-time Director |
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Qualification : |
Graduate |
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Experience: |
28 Years |
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Expertise in Specific Area : |
Pharmaceutical Industry |
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Date of Appointment : |
23.01.2001 |
|
Other Directorship : |
Doctors Organic Chemicals Limitedj |
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Name : |
Mr. K R N Moorthy |
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Designation : |
Joint Managing Director |
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Experience: |
30 Years |
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Name : |
Mr. A N Shinkar |
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Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Pankaj B Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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1,471,730 |
10.44 |
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1,471,730 |
10.44 |
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3,024,000 |
20.59 |
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|
3,024,000 |
20.59 |
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Total shareholding of Promoter and Promoter Group (A) |
4,495,730 |
31.86 |
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(B) Public Shareholding |
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|
10,117 |
0.07 |
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|
7,360 |
0.05 |
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750,880 |
5.32 |
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768,357 |
5.44 |
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2,314,258 |
16.39 |
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5,031,022 |
35.62 |
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1,284,061 |
9.09 |
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|
225,858 |
1.60 |
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21,408 |
0.15 |
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|
94,680 |
0.67 |
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|
109.770 |
0.78 |
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8,855,199 |
62.70 |
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Total Public shareholding (B) |
9,623,556 |
68.14 |
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Total (A)+(B) |
14,122,286 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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|
567,000 |
3.86 |
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|
567,000 |
3.86 |
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Total (A)+(B)+(C) |
14,689,286 |
100.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Pharmaceuticals,
Medicines, Organic Chemicals and Bulk Drugs such as Acyclovir, Metformin and
Salsalate |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk Drugs |
M.T |
9,654.00 p. a. |
7456.22 |
|
Formulation - Tablets |
No. in Lacs |
5,400 p. a. |
-- |
|
Capsules |
No. In Lacs |
2100 p.a. |
-- |
|
Dry Syrup ( 60 ML) |
No. of Bottles
in Lacs |
60 p. a. |
-- |
|
Sachets ( 3 and 5 gm) |
No. in Lacs |
72 p. a. |
-- |
|
Sachets ( 22 gm) |
No. in Lacs |
60 p. a. |
-- |
GENERAL INFORMATION
|
No. of Employees : |
116 persons -- 18
persons in office and 98 persons in factory (Approximately) |
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Bankers : |
·
Bank of India ·
EXIM Bank ·
State Bank of India ·
State Bank of Mysore ·
State Bank of Indore ·
Axis Bank ·
Andhra Bank ·
IDBI Bank |
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Facilities : |
Notes: 1.
The NCD are to be secured by a pari passu charge on the fixed
assets of the Company situated at Patalganga and Plot No. J-17 at Tarapur. The
NCD comprises of Part A of Rs.60 and Part B of Rs.40 which are redeemable at
par at the end of two years and three years respectively from 1st May,2007.
The Company redeemed Part A of Rs.60 relating to 1,49,709 NCD’s during the
previous year. 2.
The OFCD are to be secured by a pari passu charge on the fixed
assets of erstwhile PPIL situated at Plot No 24 at Tarapur and fixed assets
at Mazgaon. OFCD are convertible between 1st November, 2008 and 30th April,
2012 into equity shares at a price being higher of Rs.125/- and 67% of the
three months average weekly closing price prior to the date of exercise of
such right. 3.
Term loans of erstwhile PPIL are secured by a pari-passu first charge on its
fixed assets. Other term loans are secured by pari-passu first charge on immovable properties and other
fixed assets, present and future and current assets, of the Company situated
at Patalganga ,Tarapur, Tanuku, Turbhe and furniture and fixtures at Head
Office, Vashi and on certain Brands of the Company and second charge on
current assets of the Company, equitable mortgage on fixed assets at Tanuku
pledge of some of the shares of the Company held by Expert Chemicals (India)
Private Limited and in addition to the guarantee by Expert Chemicals (India)
Private Limited, Wanbury Holding B.V. (Netherland) and directors of the
Company. 4.
The Foreign currency term loans are to be secured
by a first pari-passu charge
on the fixed assets and a second pari-passu
charge on the current assets of the Company. The Company also has to
provide additional security by way of first pari-passu charge on some of the Company’s brands. An
exclusive pledge on a portion of the shares of promoters has already been
created. 5.
Working capital loans are secured by a pari-passu first charge on current
assets, second charge on fixed assets, and pledge of some of the shares of
the Company held by Expert Chemicals (India) Private Limited in addition to
guarantee by Expert Chemicals (India) Private Limited and a director of the
Company. 6.
Other loans are secured by hypothecation of
assets acquired against respective loans. 7. Term loans and other loans
include payable within a year Rs.440.139 millions (Pr. Yr. Rs 401.754
millions).
Note : Due within a
year Rs. 81.925 millions ( Pr. Yr. Rs.5.025 millions) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kapoor an Parekh Associates Chartered Accountant |
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Address : |
Mumbai |
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Major Shareholders: |
- Kingsbury
Investment Inc. - Expert
Chemicals (India) Private Limited - Magnum Equifin
Private Limited |
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Subsidiaries : |
- Wanbury
Holding B. V. (Netherlands) - Cantabria
Pharma S. L. (Spain) - Ningxia
Wanbury Fine Chemicals Company Limited (China) - Wanbury Global
FZE ( Ras-Al-Khaimah, UAE) |
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|
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Associates : |
- Wanbury
Infotech Private Limited - Bravo
Healthcare Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 Millions |
|
2000000 |
Preference Shares |
Rs. 100/- each |
Rs. 200.000 Millions |
|
|
Total |
|
Rs. 500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
14689286 |
Equity Shares |
Rs.10/- each |
Rs. 146.893
Millions |
|
|
|
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|
Notes:
1.)
Out of the above Equiy Shares :
a)
89,08,283 Equity Shares were allotted as fully
paid-up without payment being received in cash, pursuant to the Schemes of
Merger.
b)
5,67,000 shares are represented by 1,89,000 Global
Depository Receipts.
2.)
11,25,236 Warrants of the face value of Rs. Nil
have been allotted to the shareholders of Erstwhile PPIL as per the BIFR order.
The warrant holders have the right to subscribe to one equity share of Rs. 10/-
each at the premium of Rs. 125/- per share which is exercisable within five
years from 27th June, 2007, being the date of allottment of the warrants.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
146.893 |
146.893 |
146.893 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1404.613 |
1702.448 |
1019.205 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1551.506 |
1849.341 |
1166.098 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2885.543 |
2632.693 |
1999.002 |
|
|
2] Unsecured Loans |
681.440 |
579.134 |
958.513 |
|
|
TOTAL BORROWING |
3566.983 |
3211.827 |
2957.515 |
|
|
DEFERRED TAX LIABILITIES |
2.534 |
3.194 |
5.325 |
|
|
|
|
|
|
|
|
TOTAL |
5121.023 |
5064.362 |
4128.938 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2198.858 |
2204.886 |
1809.054 |
|
|
Capital work-in-progress |
107.492 |
150.132 |
147.242 |
|
|
|
|
|
|
|
|
INVESTMENT |
1047.157 |
1017.231 |
1243.229 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
363.894
|
323.561
|
360.885 |
|
|
Sundry Debtors |
655.651
|
822.274
|
835.270 |
|
|
Cash & Bank Balances |
75.925
|
104.220
|
251.755 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1820.280
|
1446.579
|
857.199 |
|
Total
Current Assets |
2915.750
|
2696.634 |
2305.109 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
600.230
|
615.113
|
650.970 |
|
|
Other Current Liabilities |
415.666
|
238.492
|
250.084 |
|
|
Provisions |
132.338
|
150.916
|
474.642 |
|
Total
Current Liabilities |
1148.234
|
1004.521 |
1375.696 |
|
|
Net Current Assets |
1767.516
|
1692.113
|
929.413 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5121.023 |
5064.362 |
4128.938 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3099.949 |
3511.082 |
1676.556 |
|
|
|
Other Income |
59.482 |
247.665 |
43.967 |
|
|
|
TOTAL (A) |
3159.431 |
3758.747 |
1720.523 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material |
1476.289 |
1467.940 |
842.419 |
|
|
|
Personnel Cost |
571.768 |
515.917 |
204.468 |
|
|
|
Other Expenses |
1012.632 |
1139.953 |
849.723 |
|
|
|
Transfer from Revaluation Reserve |
[23.227] |
[32.441] |
[54.388] |
|
|
|
TOTAL (B) |
3037.462 |
3091.369 |
1842.222 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
121.969 |
667.378 |
[121.699] |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
230.493 |
233.720 |
93.656 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[108.524] |
433.658 |
[215.355] |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
113.798 |
118.235 |
94.978 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
[222.322] |
315.423 |
[310.333] |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.348 |
16.208 |
2.517 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
[222.670] |
299.215 |
[312.850] |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
593.168 |
311.082 |
623.933 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Tax on Dividend |
0.000 |
2.440 |
0.000 |
|
|
|
Proposed Dividend |
0.000 |
14.689 |
0.000 |
|
|
|
Short provision of Dividend of Earlier
year |
0.000 |
0.000 |
0.001 |
|
|
|
Tax on Dividend of Earlier year Rs. 175 |
0.000 |
0.000 |
0.000 |
|
|
|
Transfer to Debentures Redemption Reserve |
0.000 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
370.498 |
593.168 |
311.082 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1166.385 |
1373.194 |
864.236 |
|
|
|
Freight, Insurance etc |
34.268 |
20.690 |
0.000 |
|
|
|
Others |
0.000 |
0.672 |
0.000 |
|
|
TOTAL EARNINGS |
1200.653 |
1394.556 |
864.236 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
365.559 |
324.373 |
206.165 |
|
|
|
Capital Goods |
1.516 |
2.248 |
1.815 |
|
|
TOTAL IMPORTS |
367.075 |
326.621 |
207.980 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
[15.16] |
20.37 |
[21.30] |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
857.450 |
894.130 |
|
Total Expenditure |
801.620 |
860.850 |
|
PBIDT (Excl OI) |
55.830 |
33.280 |
|
Other Income |
0.000 |
0.000 |
|
Operating Profit |
55.830 |
33.280 |
|
Interest |
71.360 |
70.360 |
|
Exceptional Items |
0.000 |
108.310 |
|
PBDT |
(15.530) |
71.230 |
|
Depreciation |
23.530 |
23.750 |
|
Profit Before Tax |
(39.060) |
47.480 |
|
Tax |
0.030 |
0.050 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
(39.090) |
47.430 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
(39.090) |
47.430 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
[7.05]
|
7.96
|
[18.18] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[7.17]
|
8.98
|
[18.51] |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[4.35]
|
6.43
|
[7.54] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.17
|
[0.27] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.04
|
2.28
|
3.72 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.54
|
2.68
|
1.68 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL REVIEW:
The year posed a
number of challenges, both external and internal. Both the Active
Pharmaceutical Ingredients Business (API Business) and Formulation Business posted
a negative growth in the year.
The API Business
witnessed a decline in the top line. The raw material price increase and the
time lag in passing on the price increase by way of higher selling prices also
eroded the gross margins of the API division. Your management has taken several
corrective and strategic measures to turnaround the API business. Significant
production process improvements are being implemented which would result in
savings in production cost and boost the margins. New appointments of highly
experienced and talented staff have been made
at the senior
managerial level which should help improve the business operations. Efforts to
gain higher market shares in Tramadol
have been very
successful, this should help boost the profitability of the Company.
The Formulation
Business revenues declined on account of high rate of attrition, which put the
profitability of the division under pressure.
The management has
taken several measures to improve the formulations business. All vacancies have
been filled across the country with the best talent. The Company has also
engaged some of the best talent in the industry at senior management leadership
levels. The new product pipeline is robust and the launch of these products
should help to achieve a significant growth in formulation business revenues
and profitability.
The financial
highlights are as under:
The Total Income
for the financial year under review was Rs. 3159.431 Millions as against Rs.
3758.747 Millions in the previous year. The Total Expenditure was Rs. 3381.753
Millions as against Rs. 3443.324 Millions.
The Loss before
Tax for the financial year under review was Rs. 222.322 Millions as against a
Profit before Tax of Rs. 315.423 Millions and a Loss after Tax was Rs. 222.670
Millions as against Profit after Tax of Rs. 299.215 Millions in the previous
year.
Exports of the
Company during the year were Rs. 1200.653 Millions as against Rs. 1393.880
Millions in the previous year.
MERGER OF THE
PHARMACEUTICAL PRODUCTS OF INDIA LIMITED (PPIL) WITH THE COMPANY:
The Hon'ble Board
for Industrial and Financial Reconstruction (BIFR) is considering the
Rehabilitation and Revival cum Merger of the Pharmaceutical Products of India Limited
(PPIL) with the Company afresh, pursuant to the Order of Hon'ble Supreme Court
of India dated 16th May, 2008.
The PPIL has
submitted proposal for rehabilitation cum merger of PPIL with Subject, with
Operating Agency, IDBI and after considering the same in the joint meeting of
all concerned, Operating Agency, IDBI has submitted "Draft Rehabilitation
Proposal" with Hon'ble BIFR for their consideration. The Hon'ble BIFR is
considering the "Draft Rehabilitation Proposal" submitted by the
IDBI, Operating Agency and we expect that the "Draft Rehabilitation
Proposal" will be circulated by Hon'ble BIFR shortly for the consideration
of the all concerned.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY OVERVIEW
The Indian
pharmaceutical industry has been a success story providing employment to
millions of people and ensuring across the board availability of essential
drugs at affordable prices to the masses. Industry has excelled in the field of
innovation, cost leadership, reengineering, quality and range of products
offered making it one of the most competitive and lucrative industries.
Over the last
decade, Indian pharmaceutical industry has grown by leaps and bounds;
approximately 9% CAGR for the five-year period 2000-2005 and 13 - 14% CAGR for
the five-year period 2005 - 2010. The Indian pharmaceutical industry has
certain unique characteristics which make it as attractive as it is.
UNIQUE CHARACTERISTICS:
_ The leading 250
pharmaceutical companies control 70% of the market with market leader holding
nearly 7% of the market share.
_ Extremely
fragmented market with severe price competition.
_ About 250 large
units and about 8000 Small Scale Units, which form the core of the
pharmaceutical industry in India. These units produce the complete range of
pharmaceutical formulations and 300+ bulk drugs, i.e., chemicals having
therapeutic value and used for production of pharmaceutical formulations.
_ Branded generics
market dominates with 70 to 80 % of retail market.
_ Local players
have enjoyed a dominant position driven by formulation development capabilities
and early investment.
_ De-licensing of
the industry has meant that manufacturers are free to produce any drug duly
approved by the Drug Control Authority.
Uniqueness of the
industry presents its own set of challenges and opportunities in consonance
with the market it caters to. The pharmaceutical industry in India is all set
to scale new heights thanks to the growth drivers prevalent in the economy.
_ Rising incomes
_ Enhanced medical
infrastructure
_ Rise in
prevalence and treatment of chronic diseases
_ Greater health
insurance coverage
_ Launches of
patented products
Rising Income
levels and enhanced medical infrastructure have underpinned the step up in growth
trajectories. This growth has been broad based across therapy and geography
segments. The pace of innovation in business models, products and effectiveness
has been unprecedented. MNCs have invested large amounts of capital in
launching and expanding generics business and in expansion of market coverage.
Mergers and acquisitions have also been on a rise to increase the presence in
the generics space. Over the last two years there have been billion dollar
deals which signify the importance of the generics business, these deals
include the Pfizer Wyeth and the Abott Piramal deal.
A recent study by
Mckinsey estimates that the Indian pharmaceutical industry would become $55bn
industry by 2020 translating into CAGR of approximately 14% for the next 10 years.
At this scale the Indian pharmaceutical industry would be comparable to several
of the developed markets behind only to US, Japan and China.
The study also
anticipates that the mix of therapies will continue to gradually move in favour
of specialty and super specialty therapies. Success of pharmaceutical companies
would be driven by three sets of commercial capabilities: marketing
capabilities, sales force capabilities and commercial operations.
Apart from the
several growth drivers and huge opportunity that exists in the Indian
pharmaceutical industry one of the factors that might hamper the growth and
hamper the profitability is inflation. Inflation has been a major concern for
manufacturers with their margins taking a hit. In the process of trying to curb
inflation the RBI has increased the interest rates increasing the borrowing
rate and thereby further impacting profitability and ability to have a sound
credit line. However, the following factors would counter the effect of
inflation and credit to a certain extent.
_ Population
growth at ~ 1.3% every year and a steady rise in disease prevalence will
increase the patient pool by nearly 20 per cent by 2020.
_ Affordability of
drugs will rise due to sustained growth of incomes and increases in insurance
coverage.
_ Accessibility to
drugs will increase due to increase in medical infrastructure, new business
models for tier II and rural areas, launches of patented products and greater
government spending on health care.
_ Acceptability of
modern medicine and newer therapies will increase
COMPANY OUTLOOK
DOMESTIC
FORMULATIONS BUSINESS:
The Company
suffered some setbacks in the domestic formulations business as a result of
which Company was not able to post the impressive growth that it has done for the
past few years. However, in spite of these setbacks Company was able to post a
growth of approx. 7% according to ORG IMS data.
The Company
continues to focus on Orthopedics, Gastrointestinal, Gynecology and Surgery
therapeutic segments. The Company has been able to maintain its position by
focusing on some of its key existing brands. These brands have established
themselves in their respective therapeutic areas and have come to be known as
best in class. Key performing brands for The Company are:
CPink - An iron
supplement based on Ferrous Ascorbate preparation is a Rs. 280.000 Millions
(ORG MAT Mar 2011) brand and ranked 2nd in Ferrous ascorbate category. CPink
has revolutionised Iron therapy by introducing the formulation prepared through
patented IIC (Integrated Iron Complexation) technology. CPink with IIC
technology maximizes Iron absorption and prevents GI irritation.
Adtrol plus - a combination of
Calcitriol, Calcium Carbonate, Methylcobalamin, folic acid and Pyridoxine is a
2,000 Lakh brand, ranked 3rd in the Calcitriol Combinations market. It's a
comprehensive solution for the management of osteoporosis. Adtrol Plus can be
used in all osteoporosis patients; all women above age of 40 yrs and men above
50 years.
Rabiplus- our brand of
Rabiprazole is Rs 200.000 Millions brand and ranked among top 5 brands in this
category. Rabiplus is prepared through Optimally Stabilized Trilayered Enteric
coated pallet technology. The benefit of this technology is 100% availability
of drug at the site of absorption thus offers faster onset of action as
compared to competitors. Pallet technology is being used for the first time in
India.
Folinine - is a Rs. 120.000
Millions brand, growing at 57% with second rank in folic acid market. Folinine
is a nutritional supplementation during pregnancy and contains Methylcobalamin,
Folic acid and Pyridoxine. The combination controls pregnancy complications and
is recommended throughout the nine months of pregnancy. According to NIN 1998,
more than 60 % young women suffer from folic acid deficiency, and over 25%
women suffer from pyridoxine deficiency and thus there is huge potential in
this area.
Growth has largely
been fuelled by the two divisions, WOW and Well bone, launched by the Company
in FY 2010. Wellbone has subsequently been merged with the Orthopedic division
Osteolife as a strategic initiative to reduce costs and provide better
penetration. Not only are these divisions contributing significant amount of
sales to Formulations division as a whole, these divisions have the lowest Cost
of Goods sold compared to Formulations division. Products contributing
significantly to the sales of these two divisions include: Folinine, Bonansa, Productive M, Productiv F
and Well bone.
The Company
launched various new products during the year. The key products are as follows:
·
Clavcure
·
Productiv
·
Folinine D
·
Chymonac TC
API (ACTIVE
PHARMACEUTICAL INGREDIENTS)
The Company
continues to remain the largest manufacturer of Metformin in the world with
over 30% market share. Another product Tramadol has also been in high demand
especially in American markets. Over the later half of the financial year the
Company would have catered to substantial share of the US requirement for
Tramadol. This has happened as a result of significant cost competiveness of
its product and continuous business development efforts with its customers.
Domestic supplies
of their products especially Metformin is gaining much more importance now.
There is an increasing trend, especially with big international pharmaceutical
companies to get their requirement contract manufactured in India. Some of the
Indian Pharma Companies are also taking strong positions in regulated markets.
Therefore the need for an API is showing increasing trend in domestic market.
FY10 posed a
number of challenges to the Company. One of its major regulated market customer
stopped purchases after the first quarter. The contract manufacturing agreement
of an intermediate for a big multinational company came to an end during the
year. The Company has still managed to generate comparable sales to the
previous year by better focus on other products, customers and markets. However
from a profitability point of view this situation has resulted in lower
margins. The Company had expected revival of its Metformin business in America.
They expect a key customer to resume the business in 2011-12 which will further
strengthen the Company's market share. The Contract Research and Manufacturing
(CRAMS) business did not perform as planned. No new business was generated
during the year .The Company hence was forced to close down the foreign office
in Europe and to scale down its R and D team to keep expenses under control.
Some top
management personnel left the Company during FY10-11. Apart from that the Company
also ran into tough financial problems and had to admit itself into Corporate
Debt Restructuring.
New management
came in the later half of the year and has started working on a turnaround strategy
to reinvigorate the API business and take it to new heights. The new management
has cost reduction as one of its prime focus areas so that the Company
continues to make profit in a generic market with high competition and reducing
prices. The Company plans to look at automation as a solution to ensure higher
quality material to its customers. The Company has initiated plans of
increasing manufacturing capacity at Patalganga with limited capital
investment. This is being achieved by realignment of the manufacturing area.
In FY11-12 the
Company is targeting to increase its API sales by 20%. A significant part of
this increase is expected from Metformin and Tramadol. Plans are being
formulated to further increase Tramadol manufacturing capacity so as to meet
additional requirements from other regulated customers. All the cost reduction
initiatives are likely to come into place during the second quarter of the
financial year which will improve the competitiveness of the Company in quoting
for various orders and to improve the profitability of the business as a whole.
INTERNATIONAL
FORMULATIONS BUSINESS - CANTABRIA PHARMA
Like the last year
FY 11 has been another tough year for the European markets and Spain was no
exception. Pharmaceutical industry in Spain has consistently been held back due
to price cuts enforced by the Government and due to competition as a whole.
Over the last year there have been further price cuts which have hampered the
sales of the Company. Although the sales in volume terms have only been rising
the Company has not been able to make up the loss in sales value to offset the
fixed costs and hence was not able to break even last year. Several initiatives
have been taken to counter the situation and loss in margin due to price cuts has
been partly offset by the reduction in cost of material. Other initiatives that
are being taken to improve the overall position of the Company are as follows:
BUSINESS
DEVELOPMENT / NEW PRODUCT LAUNCHES
The Company has
always been focused on innovation not only on product launches but also on
strategic initiatives to help improve the sales and the overall health of the
Company. One such initiative that the Company has explored over the last year
has been to look at new sales channels and new areas of business development.
The Company is in the process of hiring sales agents to the sell its products
in Spain. Sales done through this new sales channel provides the Company with
two-fold advantage:
_ Greater
geographical coverage: The agents are spread across Spain and would be able to
provide better coverage and support their products better.
_ Reduction in
manpower cost: Agents work on commission basis as a fixed percentage of sales
over and above the initial set up cost. The initial set up cost is very nominal
and the commission model ensures that the Company would have to pay if and only
if the sales happen reducing the overall manpower cost.
_ Human Resource
Initiatives: In order to improve productivity the Company has further reduced
the sales force from 63. This number would further go down with the
commissioning of the sales agents thereby further reducing the manpower cost.
FINANCIAL REVIEW
The Company has
generated Net Sales of Rs. 3099.900 Millions and Exports Sales of Rs. 1200.700
Millions (accounting for nearly 39% of the Total Net Sales) for the financial
year 2010-2011 as against Net Sales of Rs. 3511.100 Millions and Exports Sales
of Rs. 1393.900 Millions (accounting for nearly 40% of the Total Net Sales) for
the financial year 2009-2010. Total Income for financial year has been Rs.
3159.400 Millions as against Rs. 3758.700 Millions for the financial year
2009-2010.
The API business
generated Net Sales of Rs. 1765.200 Millions and accounted for 46% of the Total
Consolidated Sales of Rs. 3821.800 Millions in the financial year 2010-2011 as
against 39% during the financial year 2009-2010. The Formulation business
generated Net Sales of Rs. 1334.800 Millions and accounted for 35% of the Total
Consolidated Sales of Rs. 3821.800 Millions in the financial year 2010-2011 as
against 35% during the financial year 2009-2010. The Spanish business
represented by Cantabria Pharma had a Net Sales of Rs. 721.800 Millions and
accounted for 19% of the Total Consolidated Sales of Rs. 3821.800 Millions for
the financial year 2010-2011 as against 26% during the financial year
2009-2010.
The Company had an
EBITDA of Rs. 98.700 Millions in the financial year 2010-2011 as against Rs.
634.900 Millions in the financial year 2009- 2010 on account of following:
(a)
Lower Metformin exports to regulated markets, which
give high sales price realisation and higher sales to non-regulated markets
which give a lower sale price realisation.
(b)
Discontinuation of Gabapentin (an API) sale
affected export by Rs. 261.900 Millions.
(c)
Formulation overall sale down by 20% mainly due to
loss of Pharma (Main) Division and Osteolife Division Business.
(d)
API COGS gone up by 7.3% mainly on account of
Increase in prices of DCDA and DMA HCL.
(e)
Formulation COGS gone up by 1.3% mainly on account
of Lower Osteolife Division sale which has a low COGS, Change in product mix
and Increase in prices of API.
CONTINGENT
LIABILITIES:
a)
Bank Letter of Credit outstanding at the year-end
Rs.273.027 millions (Rs. 395.002 millions).
b)
Bank Guarantees issued Rs.3.309 millions (Rs.1.918
millions).
c)
Disputed demands by Income Tax Authorities Rs.
4.043 millions (Rs. 4.043 millions). Amount paid there against and included
under the head Loans and Advances Rs.4.043 millions (Rs.4.043 millions).
Disputed demands by Sales Tax Authorities Rs.3.327 millions (Rs. 3.327
millions) paid under protest Rs.1.332 millions (Rs. 1.332 millions).
d)
Claims against the Company not acknowledged as
debts Rs. 109.823 millions (Rs. 86.021 millions).
e)
Estimated amounts of contracts remaining to be
executed on capital account and not provided for (net of advances) Rs. 10.599
millions (Rs. 6.516 millions).
f)
Guarantees given to banks/financial institutions
for loans given to subsidiaries Rs.2529.600 millions (Rs. 2422.400 millions).
Loans outstanding at the year-end Rs. 1500.766 millions (Rs. 1477.371
millions).
g)
Guarantees given to banks/financial institutions
for loans given to Associate Company Rs. 270.000 millions (Rs. 270.000
millions). Loans outstanding at the year-end Rs. 155.515 millions (Rs. 171.929
millions).
h)
Future cash flows in respect of liability under
clause (c) and (d) is dependent on decisions by relevant authorities of
respective disputes and in respect of clause (e) the liability is dependent on
terms agreed upon with the parties.
Fixed Assets:
·
·
·
Development Expenses
·
·
Plants, Machineries and Equipments
·
Furniture and Fixture
·
Vehicles
·
Office Equipments
·
Electrical Installations
·
Computers
·
Office Premises
·
R and D Building
·
Brands
·
Software
·
Technical Know-how
WEB SITE DETAILS
BUSINESS
DESCRIPTION
Subject is a pharmaceutical company. The Company focuses on orthopedics,
gastrointestinal, gynecology and surgery therapeutic segments. As of March 31,
2010, it had over 30 Active Pharmaceutical Ingredients (APIs) products and
exported to over 50 countries, 50% of which comprised regulated markets. Its
principal products include Metformin HCL, Salsalate HCL and Tramadol USP. Its
primary brands include CPink, which is an iron supplement; Adtrol Plus, which
is a combination of Calcitriol, Calcium Carbonate, Methylcobalamin, folic acid
and Pyridoxine; Rabiplus, and Folinine. During the fiscal year ended March 31,
2010 (fiscal 2010), it launched 23 new products, among them main products are
Productiv-M and Productiv-F, which focuses on male and female infertility
market. During fiscal 2010, it launched two branded generic products: Ilufren
(Quetiapine) and Panproton (Pantoprazole), and its research and development
centre had developed lab scale processes for six APIs. For the fiscal year
ended 31 March 2010, Subject revenues totaled RS5.20B. Net income totaled
RS84.1M. Results are not comparable as the company has reported six months
financials for the comparitive period. Subject is a pharmaceutical company. It
focuses on areas, such as active pharmaceutical ingredient (API), and contract
research and manufacturing services (CRAMS). The Company is based in India
MANAGEMENT
K. CHANDRAN
Mr. K. Chandran is Executive Vice Chairman of the Board of Wanbury
Limited. He is a Science Graduate and has experience and knowledge of
pharmaceutical industry and has contributed substantially to the growth of the
Company.
A. L. BONGIRWAR
Mr. A. L. Bongirwar is Non-Executive Independent Director of Wanbury
Limited. He is director of Videocon Industries Limited and J.S.W.
Infrastructure.
ASHOK N. SHINKAR
Mr. Ashok N. Shinkar is Non-Executive Director of Wanbury Limited. Mr.
Ashok Shinkar is a Chartered Accountant and has over 15 years of experience of
Corporate Finance and is associated with the Company since the last 5 years.
P. L. TIWARI
Education
·
MD Medicine, Banaras Hindu University
·
Medicine, Banaras Hindu University
NEWS
PRESS RELEASE
WANBURY LAUNCHES CDENSE – FOR OSTEOPOROSIS AND GYNAECOLOGY RELATED
CALCIUM
DEFICIENCY
November 13,
Mumbai: Wanbury Limited, one of the fastest growing pharma companies in the domestic
market, has entered into the osteoporosis and gynaecology related calcium
deficiency market with the launch of Cdense -
Calcium Orotate, a
mineral transporter. Cdense will be available in tablet form of 740 mg dosage.
Wanbury is the
only company in the country to use Calcium Orotate as a base to make the
calcium supplement. The available calcium brands mainly use calcium carbonate
as base. Global studies have shown that Calcium Orotate (Cdense) is the only
calcium that directly deposits in the bone and ensures optimum bone
mineralization.
Cdense, which will
be a 100% prescription-based product, will be predominantly targeted at
patients with Osteoporosis, low back pain, postmenopausal women, and for
calcium deficiency related to pregnancy, lactation and postpartum care.
“Wanbury’s Cdense
is the only once-a-day dosage product, which ensures 95% absorption, powerful
recalcification of the bone, reverses bone loss, relieves pain and has
excellent gastro-intestinal (GI) tolerance leading to maximum patient
compliance. The calcium brands that are currently available in the market have
to be taken twice or thrice a day, leading to GI irritation,” said Dr. Rajaram
Samant, Director, Marketing and Sales, Wanbury.
The available
calcium brands are less absorbed, as they get dissociated in the stomach and
their intestinal absorption is dependent on Vitamin D3, he said.
Orotate – the
mineral transporter used in Cdense is approved by USFDA and DGEC (Directorate
General of European Commission).
Currently, the size
of the calcium market is Rs. 2660.000 millions, growing annually at 15%.
“Wanbury is targeting Rs.15 crore in the first year of launch of Cdense and
intends to make it among the top ‘five’ brands by March 2009 in the calcium
segment.,” said Dr. Samant.
Four of Wanbury’s
formulation brands – Cpink, Rabiplus, Folinine and Adtrol Plus are in the ‘top
three’ brands in their respective segments.
Wanbury ranks 52nd
as per ORG-IMS and is growing at 87%. It has a successful track record of brand
launches as its products are need based with unique advantage catering to needs
of the patients.
WANBURY GETS LOWER RATING FROM FITCH
20 January 2011
20
January 2011 - Fitch downgraded Thursday to D(ind) from BB+(ind) the national long-term
rating on Indian company Wanbury Limited (BOM:524212), engaged in the
production of active pharmaceutical ingredients (APIs) and formulations.
At
the same time, the agency cut to D(ind) from BB+(ind) the ratings on the
INR2.852bn (USD62.6m/EUR46.4m) long-term bank loans and INR410m fund-based cash
credit limits, as well as to F5(ind) from F4(ind) the ratings on its INR140m
fund-based limits and INR302m non-fund based limits.
The
rating action has been prompted by Wanbury's announcement of a corporate debt
restructuring (CDR) programme in lieu of liquidity pressures, Fitch said.
During
the first half of the fiscal 2011, Wanbury's profitability was influenced by
the rise in raw material costs for its API products, by a drop in formulation
revenues and forex losses. The lower profitability, combined with cash support
extended to its troubled unit Cantabria Pharma, weighed on the company's
liquidity profile and as a result led to the implementation of the CDR
programme.
However,
the company anticipates that profitability should be on track after the CDR due
to measures undertaken for the same and also predicts an improvement in its
credit and liquidity profile.
FITCH CUTS WANBURY TO D(IND) ON DEBT RESTRUCTURING
20 January 2011
ADPnews)
- Jan 20, 2011 - Fitch downgraded Thursday to D(ind) from BB+(ind) the national
long-term rating of Indian company Wanbury Limited (BOM:524212), engaged in the
production of active pharmaceutical ingredients (APIs) and formulations.
At
the same time, the agency cut to D(ind) from BB+(ind) the ratings on the INR
2.852 billion (USD 62.6m/EUR 46.4m) long-term bank loans and INR 410 million
fund-based cash credit limits, as well as to F5(ind) from F4(ind) the ratings
on its INR 140 million fund-based limits and INR 302 million non-fund based
limits.
The
rating action has been prompted by Wanbury's announcement of a corporate debt
restructuring (CDR) programme in lieu of liquidity pressures, Fitch said.
During
the first half of fiscal 2011, Wanbury's profitability was influenced by the
rise in raw material costs for its API products, by a drop in formulation
revenues and forex losses. The lower profitability, combined with cash support
extended to its troubled unit Cantabria Pharma, weighed on the company's
liquidity profile and as a result led to the implementation of the CDR
programme.
However,
the company anticipates that profitability should be on track after the CDR due
to measures undertaken for the same and also predict an improvement in its
credit and liquidity profile.
WANBURY REFERRED FOR DEBT RESTRUCTURING BY ITS LEAD
BANKER
07 January 2011
India, Jan. 07 -- Wanbury has informed that Bank of India --as the lead
bank of the consortium of bankers of the Company-- has referred the Company for
restructuring of its debt to the Corporate Debt Restructuring (CDR) Mechanism
and hence the company has been admitted by CDR Cell for its Debt Restructuring.
Wanbury is the fastest growing pharma company amongst top 100 companies in
India. Wanbury's major thrust area also lies in Active Pharmaceutical
Ingredient (API) and Contract Research and Manufacturing Services (CRAMS).
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. 51.35 |
|
|
1 |
Rs. 80.97 |
|
Euro |
1 |
Rs. 69.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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.