MIRA INFORM
REPORT
|
Report Date : |
05.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
NEULAND LABORATORIES LIMITED |
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Registered
Office : |
Flat No.204, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
07.01.1984 |
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Com. Reg. No.: |
01-4393 |
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Capital
Investment / Paid-up Capital : |
Rs.54.674 Millions |
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CIN No.: [Company Identification
No.] |
L85195AP1984PLC004393 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDN00013G |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges |
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Line of Business
: |
Manufacturer and Exporter of bulk pharmaceutical ingredients and
intermediates for the generics industry. |
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No. of Employees
: |
977 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
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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 2920000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having good track. Financial position is reported to be satisfactory. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/
Corporate Office : |
Flat No.204, |
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Tel. No.: |
91-40-26518682/83/84/23412934/36/37 / 66518683 |
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Fax No.: |
91-40-23412957 |
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E-Mail : |
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Website : |
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Manufacturing Facilities : |
Unit 1: Village: Bonthapally Mandal: Jinnaram District: Medak,
Andhra Pradesh Unit 2 IDA, Pashamylaram, Isnapur, Patancheru (M) Medak, Dist –
502 319,
Unit 3 Plot No. 92-94, 257-259
Industrial Development Area, Village:
Pashamylaram, Mandal: Patancheru, District: Medak, |
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Overseas Office : |
US Office 2500, Regency
Parkway, Tel No: +1 (919) 654 6833 Fax No: +1 (919) 654 6834 E-Mail: johnpinna@neulandabs.com 235 Calle
Campesino, Tel No: (949) 218-1768 Fax No: (949) 218-3489 Mobile No: (949) 466-7449 E-Mail: tspeace@neulandlabs.com 2F Maruishi
Building Bekkan (Annex), 1-10-1 Kajicho, Chiyoda-ku, Tel No: 81-3-3526-5171 Fax No: 81-3-3526-5172 E-Mail: ykizawa@neulandlabs.com |
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Research and
Development: |
Bonthapalli (V), |
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. D. R. Rao |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. D. Sucheth Rao |
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Designation : |
Whole-time Director and Chief Executive Officer, |
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Name : |
Mr. D. Saharsh Rao |
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Designation : |
Whole-time Director and President-Contract Research, |
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Name : |
Mr. G. V. K. Rama Rao |
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Designation : |
one of the promoters, is a Non-Executive Director. |
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Name : |
Mr. Nadeem Panjetan |
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Designation : |
Director, represents the Export-Import Bank of |
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Name : |
Mr. Humayun Dhanrajgir |
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Designation : |
Non-Executive Director, |
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Name : |
Mr. P. V. Maiya |
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Designation : |
Non-Executive Director |
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Name : |
Mr. S. B. Budhiraja |
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Designation : |
Non-Executive Director, |
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Name : |
Dr. Christopher M. Cimarusti |
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Designation : |
Non-Executive Director, |
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Name : |
Dr. Will Mitchell |
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Designation : |
Non-Executive Director, |
KEY EXECUTIVES
|
Name : |
Mr. V. N. Rao |
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Designation : |
Unique Chemicals, Mumbai as Director R and D and QA |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
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|
1,259,549 |
23.34 |
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3,92,011 |
7.26 |
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1,651,560 |
30.60 |
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167,088 |
3.10 |
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133,090 |
2.47 |
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300,178 |
5.56 |
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Total
shareholding of Promoter and Promoter Group (A) |
1,951,738 |
36.17 |
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(B) Public
Shareholding |
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|
400 |
0.01 |
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500 |
0.01 |
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98,000 |
1.82 |
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98,900 |
1.83 |
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|
377,104 |
6.99 |
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1,131,320 |
20.96 |
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484,993 |
8.99 |
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1,352,400 |
25.06 |
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1,341673 |
24.86 |
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|
400 |
0.01 |
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|
487 |
0.01 |
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Directors and their Relatives and Friends |
9,840 |
0.18 |
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3,345,817 |
62.00 |
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Total Public
shareholding (B) |
3,444,717 |
63.83 |
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Total (A)+(B) |
5,396,455 |
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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-- |
-- |
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-- |
-- |
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Total
(A)+(B)+(C) |
5,396,455 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of bulk pharmaceutical ingredients and
intermediates for the generics industry. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
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Particulars |
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Actual Production |
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Bulk Drugs (Kgs.) |
|
1223181 |
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Intermediates
(Kgs.) |
|
67735 |
GENERAL INFORMATION
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No. of Employees : |
977 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
K. S. Aiyar and Company Chartered Accountants |
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Address : |
4th Floor, Janmabhoomi Bhavan, 24-26,
Janmabhoomi Marg, Fort, Mumbai – 400 001, |
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Collaborators : |
Cato Research Israel Limited |
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Other Related Party : |
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Subsidiaries : |
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CAPITAL STRUCTURE
AS ON (31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
300,000 |
Cumulative Redeemable Preference Shares |
Rs.100/-each |
Rs.30.000 millions |
|
300,000 |
Preference Shares either Cumulative or Non Cumulative |
Rs.100/-each |
Rs.30.000 millions |
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Total |
Rs.160.000 millions |
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Issued Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
5,590,000 |
Equity Shares |
Rs.10/- each |
Rs.55.900 millions |
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Subscribed Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
5,499,731 |
Equity Shares |
Rs.10/- each |
Rs.54.997 millions |
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Paid-up Capital
:
|
No. of Shares |
Type |
Value |
Amount |
|
5,396,455 |
Equity Shares fully paid up |
Rs.10/- each |
Rs.53.964 millions |
|
Add: |
103276 Forfeited Equity Shares a) Of the above shares 715040 Equity shares of Rs. 10 each are allotted as fully paid up by way of Bonus shares) |
Rs.10/- each |
Rs.0.710 million |
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b) 11080 Equity share of Rs. 10 each for consideration other than cash to erstwhile shareholders of Neuland Drugs and Pharmaceuticals Private Limited |
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Total |
Rs. 54.674 millions |
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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 |
54.670 |
54.670 |
54.670 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
676.610 |
626.730 |
698.220 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
731.280 |
681.400 |
752.890 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2295.920 |
2331.820 |
2003.160 |
|
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2] Unsecured Loans |
41.480 |
0.000 |
41.380 |
|
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TOTAL BORROWING |
2337.400 |
2331.820 |
2044.540 |
|
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DEFERRED TAX LIABILITIES |
|
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|
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|
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TOTAL |
3068.680 |
3013.220 |
2797.430 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1583.000 |
1627.360 |
1465.200 |
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Capital work-in-progress |
272.570 |
302.480 |
368.020 |
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INVESTMENT |
76.670 |
76.670 |
74.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
799.160
|
719.270
|
704.660 |
|
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Sundry Debtors |
995.720
|
728.260
|
711.500 |
|
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Cash & Bank Balances |
144.870
|
127.670
|
106.200 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
382.260
|
394.840
|
301.140 |
|
Total
Current Assets |
2322.010
|
1970.040 |
1823.500
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
986.910
|
720.460
|
0.000 |
|
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Other Current Liabilities |
154.880
|
132.780
|
801.870 |
|
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Provisions |
43.780
|
110.090
|
132.020 |
|
Total
Current Liabilities |
1185.570
|
963.330 |
933.890 |
|
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Net Current Assets |
1136.440
|
1006.710 |
889.610 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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TOTAL |
3068.680 |
3013.220 |
2797.430 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
3935.720 |
2784.210 |
3067.220 |
|
|
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Other Income |
56.990 |
42.340 |
105.340 |
|
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TOTAL (A) |
3992.710 |
2826.550 |
3172.560 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Raw Materials, WIP and Finished Goods |
2499.090 |
1620.000 |
1891.170 |
|
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Manufacturing Expenses |
594.110 |
531.360 |
540.130 |
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Administration, Selling and Other Expenses |
399.870 |
394.430 |
379.860 |
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TOTAL (B) |
3493.070 |
2545.790 |
2811.160 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
499.640 |
280.760 |
361.400 |
|
|
|
|
|
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|
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|
Less |
FINANCIAL
EXPENSES (D) |
298.370 |
256.730 |
143.590 |
|
|
|
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|
|
|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
201.270 |
24.030 |
217.810 |
|
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|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
154.110 |
135.600 |
73.700 |
|
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|
|
|
|
|
|
|
|
Prior Period Adjustment |
0.000 |
11.970 |
0.000 |
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|
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PROFIT BEFORE
TAX (E-F) (G) |
47.160 |
(99.600) |
144.110 |
|
|
|
|
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|
|
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Less |
TAX (H) |
(3.530) |
29.150 |
26.210 |
|
|
|
|
|
|
|
|
|
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PROFIT AFTER TAX
(G-H) (I) |
50.690 |
(70.450) |
117.900 |
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
11.150 |
81.600 |
74.220 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
- |
- |
88.420 |
|
|
|
Proposed Dividend (Previous Year @ 35%) |
- |
- |
18.890 |
|
|
|
Tax on distributed profits |
- |
- |
3.210 |
|
|
|
BALANCE CARRIED
TO THE B/S |
61.840 |
11.150 |
81.600 |
|
|
|
|
|
|
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
FOB Value of Export |
2869.530 |
1966.630 |
2534.350 |
|
|
|
TOTAL EARNINGS |
2869.530 |
1966.630 |
2534.350 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
1403.230 |
913.700 |
1036.400 |
|
|
|
Capital Goods |
23.750 |
33.060 |
8.030 |
|
|
|
TOTAL IMPORTS |
1426.98 |
946.76 |
1044.430 |
|
|
|
|
|
|
|
|
|
|
Earnings per share |
9.39 |
[13.05] |
21.85 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1039.600 |
|
Total Expenditure |
|
|
920.500 |
|
PBIDT (Excl OI) |
|
|
119.100 |
|
Other Income |
|
|
3.370 |
|
Operating Profit |
|
|
122.470 |
|
Interest |
|
|
77.360 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
45.110 |
|
Depreciation |
|
|
36.520 |
|
Profit Before Tax |
|
|
8.590 |
|
Tax |
|
|
0.000 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
8.590 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
8.590 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.27 |
[2.49] |
3.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.20 |
[3.58] |
4.70 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.21 |
[2.77] |
4.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06 |
[0.15] |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.82 |
4.83 |
3.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96 |
2.04 |
1.95 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was promoted by Dr. D. R. Rao and incorporated
on 7th January 1984 at
Neuland Drugs and
Pharmaceuticals Private Limited, a company set up by the same promoters to
manufacture bulk drugs was merged with the company with effect from April,
1992. The company manufactures bulk drugs such as salbutamol sulphate,
terbutaline sulphate, laberalol hydrochloride and ciprofloxacin.
The company came out
with its initial public offering in April, 1994 at a premium of Rs. 35
aggregating Rs. 56.900 millions to part-finance the capacity expansion to
manufacture bulk drugs and to diversify its product-mix. The cost of the
project as estimated by ICICI was Rs. 157.000 millions.
During the year
1999-2000, the company introduced Itraconazole, an anti-fungal drug and
Ipratropium Bromide, an anti-asthmatic drug and the R and D has developed a
process for manufacture of Oflaxacin for Regulatory Markets. The Pashamylaram
unit has received USFDA approval for manufacturing of Rantidine Hydrochloride
Form.
Mirtrazapine, an
anti-depressive drug and Ramipril a cardiovascular drug were introduced during
the year 2001. The installed capacities of Ciprofloxacin and Rantidine were
increased with Rs. 65.000 millions financial assistance from IDBI.
Subject is closely
working with several companies in Europe and
BUSINESS REVIEW
The Company achieved satisfactory results with
growth in volumes, revenues and improved market share and reach for its major
products. Investments made in earlier years to increase capacities paid off
with elevated sales of high-value and niche products and by stepping up the
market share in volume led markets. However the Company had a tight liquidity
situation due to the burden of the repayment of loans taken for increased
capacities.
During the year, the Company intensely focused
on ramping up sales volumes for its top six products by effectively employing
several initiatives including competitive bidding, volume-price optimization,
emphasis on quality enhancement and aggressively helping customers to launch
their generics. Simultaneously, successful efforts were made to enhance
operational economies by optimizing processes and improving manufacturing
efficiencies.
Raw material cost pressures continued
throughout the year. The Company managed the raw material and sourcing
challenges and met production schedules with stringent quality inputs and cost
advantage. The efforts to contain costs, minimize inventory, improve
efficiencies together with higher capacity utilization led to favorable
material variances.
The strong performance in the market translated
in robust financials with highest ever revenues of Rs.3985.41 million, an
improvement of 41.7% over Rs.2812.53 million in the previous year. Better
customer relationships, strong demand for products and operational efficiencies
enabled the Company to report profit after tax of Rs.50.69 million. Members
would recall the Company had incurred a loss of Rs.70.45 million in 2009-10.
The earnings per share for the year is Rs.9.38 millions
As Members are aware, the Company's foray into
synthetic peptide realm has been distinguished by successfully developing
technologies that meet the highest standards of multinational companies. The
strategic alliance with a global pharmaceutical company has improved visibility
of earnings and the Company responded during the year by producing 28
Fluorenylmethyloxycarbonyl (Fmoc)-pseudoproline dieptide building blocks in
kilogram quantities.
It is gratifying to report that the ability to
produce pseudoproline building blocks helped in the procurement of DSIR
(Department of Scientific and Industrial Research, Government of India) funding
of Rs.25 million for scale up of technology for generic peptide APIs. The
Company has also initiated steps to build a suitable peptide plant to meet the
future needs of the business.
Outlook
The Company continues to see traction for its
existing products with the momentum built over the past few years. There are
eleven more products that are expected to be scaled up commercially in 2011-12,
supplementing the Company's offers to the market. With Neuland being perceived
as a preferred and reliable source by its customers, the order flow remains
encouraging and is being met with scaling up of production volume and
manufacturing efficiencies of both intermediates and active pharmaceutical ingredients.
There is immense potential for the company as
a contract manufacturing organization. The development work done in earlier
years has helped Neuland understand the needs of the customers and in recent
times the Company has made breakthrough to secure projects for commercial
compounds and late phase execution.
The peptide business has its platform ready
for non-linear growth, currently this business contributes to less than 1% of
total revenues. The Company currently produces about 70 high value building
blocks encompassing 28 pseudoprolines, 32 isoacyl dipeptides, several
dimethoxybenzyl-amino acids and dipeptides, Fmoc-amino acids, and side chain
modified Fmoc-Lysine derivatives. Neuland intends to increase this offering to
include 20-Fmoc-N-Methyl amino acids during 2011-12. Sales of USP and EP grade
generic peptide APIs are expected to commence in the second half of 2011-12
both to the domestic and international customers.
Subsidiaries
The Company's subsidiaries, Neuland
Laboratories K.K.,
Joint Venture
Cato Research Neuland India Private Limited
formed in collaboration with Cato Research Israel Limited, a wholly owned
subsidiary of Cato Research Limited, a global contract research and development
organization based in
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Perspective
Manufacturers in
and manufacturing costs. About 8% of global
pharmaceutical production is made in
The Indian pharmaceutical market is expected
to reach US$ 20 billion by 2015, growing at a compound annual growth rate
(CAGR) of 11.7% during 2005-2015 and establish its presence among the world's
leading 10 markets.
Increasing population of the higher-income
group in the country is likely to open a potential US$ 8 billion market for
multinational companies selling costly drugs by 2015. IMS Health
The Indian retail pharmaceutical market was
valued at US$ 10.2 billion in 2010 growing at 16.5% over 2009. The
pharmaceutical market showed a strong double digit growth for the second
successive year.
The Ministry of Commerce, Government of India
estimates investments of about US$ 6.3 billion will be made in he Indian
pharmaceutical industry by 2015. In addition, the Indian pharmaceutical
off-shoring industry is estimated to be a US$ 2.5 billion opportunity by 2012,
due to the low cost of research and development in
Active Pharmaceutical Ingredients
Global pharmaceutical industry sees huge
advantage in outsourcing their production needs. Pure play API companies are
the best choice, as branded formulation companies in
Several multinational companies have
aggressively started looking out for API manufacturers in
The forthcoming patent cliff provides enormous
opportunities for R and D focused pure play API companies. Increasing
penetration of generics in the regulated markets (especially EU and
Recent announcement of free trade pact with
Significantly, there is an underlying strong
volume growth in domestic pharmaceutical sales. Growing domestic demand is
likely to be a major driver for Indian quality conscious manufacturers.
Company Perspective
Neuland's core business and operational
expertise for over 25 years, since inception, has been manufacturing of APIs
and has earned the identity of a preferred and reliable source in the
pharmaceutical industry primarily due to:
- Consistency in product quality;
- Knowledge and ability to deal with niche chemistry; and
- On-time delivery performance.
Neuland has 2 US FDA and EU cGMP compliant
manufacturing facilities with collective capacity of 600 KL to produce more
than 40 APIs across 10 diverse therapeutic areas.
The Company's strengths in synthetic
chemistry, process development, controlled supply chain and project management approach built into all
the operations and product development programs makes Neuland an ideal API
partner for generics.
Neuland has made a successful foray into
contract manufacturing services building on its known strengths:
- proven expertise in manufacturing at varied scales,
- a deep understanding of complex chemistry, and
- state-of-the-art manufacturing facilities that are compliant with
the guidelines of the leading regulatory authorities.
For more than twenty-five years, Neuland has
been at the forefront of aiding and accelerating the drug substance development
and manufacturing process. The Company offers integrated and versatile GMP
manufacturing facilities capable of handling complex reactions tuned to ensure
seamless transfer of processes from small-scale through validation to
commercial manufacturing. Neuland thereby helps its customers expedite the
discovery -to-market timelines.
During the financial year 2010-11, the Company
started benefiting from the investments made in market development,
manufacturing facilities, internal processes and human resources. The order
intake was higher for several products, with Neuland gaining global leadership
in two products. Entry in the niche and high value segments also paid off with
favorable impact on earnings. Overall, there was significant ramping up in
volumes with consequential economies in productivity and production costs.
Training and development was focused on skill
up gradation as well as on ensuring understanding of the value systems. As a
result, qualitative benefits and improvement in internal processes were visible
in communication, accountability, response levels and customer relationship.
Increased volumes and service levels translated
to better earnings and enabled the Company toreport Profit after Tax
(consolidated) of Rs.52.89 million for the year , as compared to loss of Rs.69.05 million in the previous
year. The Earnings per Share for the year was Rs.9.75 as against Rs.(12.80) in
2009-10.
Outlook
The future looks encouraging with rising
volumes and larger product offerings to meet customer requirements. The Company
has established mutually beneficial contacts with some of the best names in the
pharmaceutical industry in
Both the new verticals, i.e. contract
manufacturing and synthesis of peptides, have set strong base for consistent
and energetic growth. Investments made in people and market development have
established the Company as a credible partner aligned to customer needs in both
the new businesses.
Emphasis on managing costs and improving
margins are adding to certainty of improved profitability and long term
sustainable growth.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER
ENDED 30.06.2011
|
Particulars |
Quarter ended
30.06.2011 (Unaudited) |
|
1. a) Net Sales / Income from Operations |
1023.121 |
|
b) Other Operating Income |
16.482 |
|
Total Income |
1039.603 |
|
2. Expenditure |
|
|
(a) (Increase)/decrease in Stock in Trade |
[62.620] |
|
(b) Consumption of Raw Materials |
747.194 |
|
(c) Employees Cost |
65.961 |
|
(d) Depreciation |
36.515 |
|
(e) manufacturing Expenses |
84.269 |
|
(f )administration, Selling and other expenses |
85.705 |
|
Total Expenditure |
957.024 |
|
3. Profit / (Loss) From Operations before other Income foreign exchange (gain)/loss and exceptional item (1-2) |
82.579 |
|
4. Interest (net) |
77.356 |
|
Profit / (Loss) before foreign exchange (gain)/loss and exceptional item (3-4) |
5.223 |
|
5. Foreign exchange (gain)/loss |
[3.368] |
|
6. Profit / (Loss) before ordinary Activities before tax/ prior period items (5-6) |
8.591 |
|
7. Prior period adjustments |
0.000 |
|
8. Profit / (Loss) Before Taxation |
8.591 |
|
9. Tax Expenses |
|
|
a) current tax |
1.719 |
|
b) provision for wealth tax |
0.000 |
|
c) Fringe Benefit tax |
[1.719] |
|
c) deferred tax (credit) |
0.000 |
|
d) MAT Credit Entitlement |
0.000 |
|
11. Net Profit/(Loss) for the period |
8.591 |
|
12. Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
54.671 |
|
13. Reserves excluding revaluation Reserves as per balance sheet of previous accounting year |
- |
|
14. Earning per shares |
|
|
Basic |
1.59 |
|
Diluted |
1.59 |
|
15. Public Share
Holding |
|
|
Number of Shares |
3444717 |
|
Percentage of Shareholding |
63.83% |
|
16. Promoters and Promoter group share holding |
|
|
a) Pledged / Encumbered |
|
|
- Number of Shares |
425000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
21.78% |
|
- Percentage of shares(as a % of the total share capital of the company) |
7.88% |
|
b) Non-encumbered |
|
|
- Number of Shares |
1526738 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
78.22% |
|
- Percentage of Share (as a % of the total share capital of the company) |
28.29% |
Segmentwise Revenue,
Results and capital Employed under clauses 41 of the listing agreement
|
Particulars |
Quarter ended 30.06.2011 (Unaudited) |
|
Segment Revenue (Net Sales/Income |
|
|
a) |
193.431 |
|
b) Other than |
829.690 |
|
Total |
1023.121 |
1. The above unaudited financial results which
have been subjected to a limited review by statutory Auditors, were reviewed by the Audit Committee at their held on 04.08.2011, and approved and taken on
records at the Board of Directors meeting held on 05.08.2011.
2. One investor Complaints was received and
disposed during the quarter. There were no investor complaints pending at the
beginning and at the end of the quarter.
3. EPS for the quarters is not annualized
4. The company’s operations are predominantly
related to the manufacturer of active pharmaceutical Ingredients (API) as such
there is only one primary reportable segment.
5. Previous quarter/ year figures have been
regrouped wherever necessary.
6. the board of directors of the company at
their meeting held on 07.07.2011 accorded consent to a rights issue of equity
shares not exceeding Rs.120.000 million. The board had also constituted a
rights issue committee to finalise the rights ratio, issue price, record date
and other procedural modalities relating to the proposed rights issue.
FIXED ASSETS:
v
Land
v
Building
v
Plant
and Machinery
v
R and D
Equipments
v
Data
Processing Machines
v
Furniture
and Fittings
v
Vehicles
WEBSITE DETAILS:
History of Neuland
1984 - January 7,
Neuland Laboratories was incorporated in
1986 - June 30, Neuland
made its first sale of salbutamol sulphate/albuterol sulfate.
1994 - Neuland went
public with an IPO; raised capital for construction of second production
facility.
1997 - Received
first US FDA approval.
1999 - Both
manufacturing facilities inspected by USFDA. Received Certificate of
Suitability for Ranitidine.
2003 - US and EU
markets contribute over 40% of Neuland’s sales.
2004 - Established
North American operations.
2006 - Number of
products with Certificate of Suitability reaches 9;
2007 - Established
Japanese subsidiary in
Inspected by German
Health Authority (Unit – 2)
2008 - Certified in
ISMS. SAP enabled Business Processes.
Unit-1 successfully
inspected by USFDA
Unit-1 Certified for
ISO 14001 and OHSAS 18001
2008 - Unit 1 and 2
receive approval from PMDA of Japan.
2009 - Neuland is
one of the first Indian API manufacturers to receive such an approval
2010- Unit-2,
Pashamylaram facility is certified for ISO 14001:2004 and OHSAS 18001:2007
standard.
Press Release
NEULAND LABS REPORTS FIRST QUARTER FISCAL YEAR 2012 FINANCIAL RESULTS
Hyderabad,
India – AUGUST 5, 2011 – Neuland
Laboratories Ltd., (NSE:NEULANDLAB; BOM:524558) a pharmaceutical manufacturer
providing active pharmaceutical ingredients (APIs), complex intermediates, and
contract research and manufacturing services to customers located in 85
countries, today announced financial results for the first quarter of fiscal
year (FY) 2012, ended June 30, 2011.
“We
are pleased to report that in the first quarter of the new fiscal year we
continued to achieve the good sales growth momentum we began to generate in
fiscal year 2011,” said Dr. D.R. Rao, Chairman and Managing Director of Neuland
Labs. “We also continued to make progress on managing our costs of production
and overall expenses, enabling the company to achieve a profitable quarter.”
Revenues
for the first quarter of FY 2012 were $23.2 million (1.04 billion INR*)
compared to revenues in the first quarter of FY 2011 of $20.3 million (0.9
billion INR), an increase of 14.5%. The increase in revenues primarily reflects
gains in sales of the company’s products and services from its API, Contract
Research and Manufacturing, and Peptides synthesis businesses.
Neuland
reported EBITDA of $1.85 million (82.58 million INR) in the first quarter of FY
2012, compared to EBITDA of $0.53 million (23.41 million INR) in the comparable
period in FY 2011, an increase of 249%. After-tax profits in the first quarter
of FY 2012 were $0.19 million (8.59 million INR), compared to a net loss of
$1.08 million (47.65 million INR) in the first quarter of FY 2011.
“A
notable event during the first quarter was our announcement of Neuland’s new
commercial-scale peptide manufacturing service at a symposium for leading
peptide experts from around the world,” noted Sucheth R. Davuluri, Chief
Executive Officer of Neuland Labs. “Our experience in producing synthetic
peptides of varying lengths and complexity parallels their increasing use as
therapeutics and diagnostics and in biomedical research. This expanded service,
which provides customers rapid access to commercial quantities of affordable,
high quality peptides, reflects our commitment to expanding our high
value-added products and services.”
For
a complete set of Neuland’s FY 2012 and FY 2011 financial data,
Neuland
Laboratories is listed on
Neuland
Laboratories Limited is proposing, subject to receipt of requisite approvals,
market conditions and other considerations, an offer on a rights basis of its
equity shares, in the near future and is in the process of filing an offer document
in this regard with the Securities and Exchange Board of India (SEBI).
* =
Indian rupees
About
Neuland Labs
For
over 25 years Neuland Labs has been at the forefront of supporting drug
development through its consulting services and its cGMP contract and API
manufacturing. The company is committed to research, supporting a
state-of-the-art R&D operation. Neuland Labs scientists have developed more
than 300 processes from bench scale to commercial production and filed more
than 400 drug master files worldwide. Its manufacturing facilities are
inspected and approved by the FDA and other leading regulatory agencies. Its
record of quality manufacturing and reliability is highlighted by cGMP
certifications that include the FDA, TGA, EDQM, German Health Authority, ISO
14001, ISO 27001 and OHSAS 18001.
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.49.22 |
|
|
1 |
Rs.76.06 |
|
Euro |
1 |
Rs.65.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.