MIRA
INFORM REPORT
|
Report Date : |
22.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
VIVIMED LABS LIMITED |
|
|
|
|
Registered
Office : |
Plot No.78 – A, Kolhar Industrial Area, Bidar – 585 403, Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
22.09.1988 |
|
|
|
|
Com. Reg. No.: |
08-9465 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.101.640 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L02411KA1988PLC009465 |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s shares are listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and markets Specialty Chemicals predominantly for personal
care and cosmetics industries and Pharmaceuticals. |
|
|
|
|
No. of Employees
: |
1060 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 6200000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Plot No.78 – A, Kolhar Industrial Area, Bidar – 585 403, |
|
Tel. No.: |
91-8482-232045 |
|
Fax No.: |
91-8482-232045 |
|
E-Mail : |
chanakya@vivimedlabs.com |
|
Website : |
www.vividmedlabs.com |
|
|
|
|
Head Office : |
|
|
Tel. No.: |
91-40-2717 6005 /
6 |
|
Fax No.: |
91-40-2715 0599 |
|
|
|
|
Corporate Office : |
2nd Floor, |
|
Tel. No.: |
91-40-27176005 / 27176006 |
|
Fax No.: |
91-40-27172242 |
|
E-Mail : |
|
|
|
|
|
Overseas Office : |
Vivimed Labs Limited |
|
Address : |
Guangzhou Representative Office, 1259 Block C, China Hotel,
|
|
Tel. No.: |
+86 20 8626 6003 |
|
Fax No.: |
+86 20 8626 6903 |
|
|
|
|
Warehouses : |
Located at
|
DIRECTORS
As on 31.03.2011
|
Name : |
Dr. V. Manohar Roa |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
75 Years |
|
Qualification : |
Post Graduate in Veterinary Sciences |
|
|
|
|
Name : |
Mr. Subhash Varalwar |
|
Designation : |
Vice Chairman |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
Post Graduate in Chemical Engineering and a
Management Graduate |
|
|
|
|
Name : |
Mr. Santosh Varalwar |
|
Designation : |
Chief Executive Officer and Managing Director |
|
Date of Birth/Age : |
49 Years |
|
Qualification : |
Management Graduate |
|
|
|
|
Name : |
Dr. M Bhagavantha Rao |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
67 Year |
|
Qualification : |
PHD in chemical engineering |
|
|
|
|
Name : |
Mr. Sandeep Varalwar |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
42 Years |
|
Qualification : |
Graduation in B. Pharmacy |
|
|
|
|
Name : |
Mr. S Raghunandan |
|
Designation : |
Director Operations |
|
Date of Birth/Age : |
50 Years |
|
Qualification : |
Science Post Graduate |
|
|
|
|
Name : |
Dr. Raj Kumar Dhar |
|
Designation : |
Director Research and Development |
|
Date of Birth/Age : |
56 Years |
|
Qualification : |
Post Doctoral |
|
|
|
|
Name : |
Mr. P V Rathnam |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
68 Years |
|
Qualification : |
Chartered Accountants |
|
|
|
|
Name : |
Mr. D Hanumantha Rao |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Dr. Peesapati Venkateswarlu |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Krishna Yeachuri |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Nixon Patel |
|
Designation : |
Independent Director |
AUDIT COMMITTEE
|
Name : |
Mr. P.V. Rathnam |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Dr. M. Bhagvanth Rao |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S. Raghunandan |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Krishna Yeachuri |
|
Designation : |
Member |
INVESTORS GRIEVANCE COMMITTEE
|
Name : |
Mr. P.V. Rathnam |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Santosh Varalwar |
|
Designation : |
Member |
|
|
|
|
Name : |
Dr. V. Manohar Rao |
|
Designation : |
Member |
REMUNERATION COMMITTEE
|
Name : |
Dr. M. Bhagvanth Rao |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Subhash Varalwar |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Sandeep Varalwar |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. D. Hanumantha Rao |
|
Designation : |
Member |
|
|
|
|
Name : |
Dr. Peesapati Venkateswarlu M |
|
Designation : |
Member |
COMPENSATION COMMITTEE
|
Name : |
Mr. Krishna Yeachuri |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Santosh Varalwar M |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. P.V. Rathnam M |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. S. Raghunandan |
|
Designation : |
Member |
|
|
|
|
Name : |
Dr. M. Bhagvanth Rao M |
|
Designation : |
Member |
MANAGEMENT COMMITTEE
|
Name : |
Dr. V. Manohar Rao |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Santosh Varalwar M |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Krishna Yeachuri M |
|
Designation : |
Member |
KEY EXECUTIVES
|
Name : |
Mr. Fahim Aslam Khan |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,969,030 |
39.05 |
|
|
1,096,343 |
10.79 |
|
|
5,065,373 |
49.84 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5,065,373 |
49.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
242,142 |
2.38 |
|
|
20,630 |
0.20 |
|
|
413,900 |
4.07 |
|
|
676,672 |
6.66 |
|
|
|
|
|
|
795,745 |
7.83 |
|
|
|
|
|
|
2,156,743 |
21.22 |
|
|
1,251,212 |
12.31 |
|
|
218,271 |
2.15 |
|
|
177,265 |
1.74 |
|
|
25,671 |
0.25 |
|
Clearing Members |
15,335 |
0.15 |
|
|
4,421,971 |
43.51 |
|
Total Public shareholding (B) |
5,098,643 |
50.16 |
|
Total (A)+(B) |
10,164,016 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total (A)+(B)+(C) |
10,164,016 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of active ingredients for home and personal care and
personal hygiene products. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS As on 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity and Installed Capacity |
|
Speciality Chemicals |
MT |
3000 |
|
Capsules |
Million |
300 |
|
Tablets |
Million |
30 |
|
Lotions |
KL |
20 |
|
Ointments |
MT |
30 |
|
Small Volume Parentals |
KL |
300 |
|
Particulars |
Unit |
Production
Capacity |
|
Speciality Chemicals |
MT |
2414.16 |
|
Capsules |
Million |
482.11 |
|
Tablets |
Million |
20.33 |
|
Lotions |
KL |
24.01 |
|
Ointments |
MT |
8.81 |
|
Small Volume Parentals |
KL |
311.96 |
GENERAL INFORMATION
|
No. of Employees : |
1060 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. Murali and Company Chartered Accountants |
|
Address : |
6-3-655/2/3, Somajiguda, |
|
|
|
|
Internal Auditor : |
|
|
Name : |
K.N. Murthy and Company Chartered Accountants |
|
Address : |
A-418, |
|
|
|
|
Wholly Owned
Indian Subsidiary : |
Creative Health Care Private Limited, Mumbai |
|
|
|
|
Wholly Owned
Step Down Foreign Subsidiary : |
Vivimed Holdings Limited, |
|
|
|
|
Wholly Owned
Foreign Subsidiary : |
Address : Tel No.: +1 732-398-0008 Fax No.: +1 732-398-0013 E-Mail: sales-usa@vivimedlabs.com
Address : Tel No.: +44(0)1484-320500 Fax No.: +44 (0)1484
320300 E-Mail: sales@vivimedlabs.com |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10164016 |
Equity Shares |
Rs.10/- each |
Rs.101.640
Millions |
|
|
|
|
|
Note :
Out of the above 1,99,112 Equity Shares @ Rs.10/- each, are issued for
consideration other than cash
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 |
101.640 |
99.650 |
94.010 |
|
|
2] Warrant Application Money |
88.640 |
49.560 |
23.350 |
|
|
3] Reserves & Surplus |
1348.820 |
1085.080 |
838.490 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1539.100 |
1234.290 |
955.850 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2272.600 |
1471.800 |
961.440 |
|
|
2] Unsecured Loans |
7.410 |
7.410 |
767.010 |
|
|
TOTAL BORROWING |
2280.010 |
1479.210 |
1728.450 |
|
|
DEFERRED TAX LIABILITIES |
156.900 |
171.400 |
135.240 |
|
|
|
|
|
|
|
|
TOTAL |
3976.010 |
2884.900 |
2819.540 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1600.240 |
1390.820 |
1263.550 |
|
|
Capital work-in-progress |
11.380 |
3.390 |
252.340 |
|
|
|
|
|
|
|
|
INVESTMENT |
33.990 |
34.880 |
25.090 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
667.060
|
606.060 |
498.850 |
|
|
Sundry Debtors |
959.610
|
753.230 |
545.300 |
|
|
Cash & Bank Balances |
86.320
|
34.06 |
68.910 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans, Advances and Deposits |
859.610
|
310.690 |
316.410 |
|
Total
Current Assets |
2572.600
|
1704.040 |
1429.470 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
101.670
|
218.960 |
176.170 |
|
|
Other Current Liabilities |
73.270
|
0.370 |
0.110 |
|
|
Provisions |
134.100
|
86.810 |
61.930 |
|
Total
Current Liabilities |
309.040
|
306.140 |
238.210 |
|
|
Net Current Assets |
2263.560
|
1397.900 |
1191.260 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
66.840 |
57.910 |
87.300 |
|
|
|
|
|
|
|
|
TOTAL |
3976.010 |
2884.900 |
2819.540 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
3098.100 |
2105.890 |
1514.890 |
|
|
|
Other Income |
2.870 |
20.080 |
15.770 |
|
|
|
TOTAL (A) |
3100.970 |
2125.970 |
1530.660 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of Materials |
1988.450 |
1275.850 |
924.000 |
|
|
|
Manufacturing Expenses |
280.600 |
198.790 |
151.910 |
|
|
|
R and D Expenses |
61.400 |
15.320 |
12.050 |
|
|
|
Salaries and Allowances |
105.390 |
102.040 |
81.140 |
|
|
|
Selling and Administrative Expenses |
142.850 |
131.630 |
83.760 |
|
|
|
Preliminary and Pre-Operative Expenses |
10.480 |
8.550 |
5.520 |
|
|
|
(Increase) in Stocks |
(44.500) |
(15.810) |
(39.910) |
|
|
|
TOTAL (B) |
2544.670 |
1716.370 |
1218.470 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
556.300 |
409.600 |
312.190 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
176.310 |
144.370 |
95.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
379.990 |
265.230 |
216.490 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
50.310 |
43.990 |
33.560 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
329.680 |
221.240 |
182.930 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
52.060 |
55.840 |
36.940 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
277.620 |
165.400 |
145.990 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
786.150 |
647.740 |
525.550 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
20.830 |
9.500 |
7.300 |
|
|
|
Dividend |
20.330 |
14.950 |
14.100 |
|
|
|
Tax on Dividend |
3.450 |
2.540 |
2.400 |
|
|
BALANCE CARRIED
TO THE B/S |
1019.160 |
786.150 |
647.740 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
1011.080 |
868.440 |
499.050 |
|
|
TOTAL EARNINGS |
1011.080 |
868.440 |
499.050 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.31 |
17.00 |
15.53 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
Type |
1st
Quarter |
|
Net Sales |
1039.500 |
|
Total Expenditure |
831.670 |
|
PBIDT (Excl OI) |
207.830 |
|
Other Income |
0.000 |
|
Operating Profit |
207.830 |
|
Interest |
58.650 |
|
Exceptional Items |
0.000 |
|
PBDT |
149.180 |
|
Depreciation |
14.120 |
|
Profit Before Tax |
135.060 |
|
Tax |
27.020 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
108.030 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
108.030 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.95
|
7.78 |
9.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.64
|
10.51 |
12.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.90
|
7.15 |
6.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.18 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.68
|
1.45 |
2.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.32
|
5.57 |
6.00 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS REVIEW
During the
financial year ended March 31st, 2011, Their Company has scaled new heights
and set new benchmarks in terms of Income and profitability.
Stand Alone Highlights
Total Income
increased from Rs2141.78 million during the previous year to Rs.3145.47 million
in the year registering a growth of 46.86%.
Operating Profit,
before interest and depreciation, amounted to Rs.566.78 million as against
Rs.418.15 million during the previous an increase of 35.54% on year on year
basis.
During the year
Net Profit, after providing for interest, depreciation and Tax amounted to
Rs.277.62 million as against Rs.165.40 million during the previous year,
registering an increase of 67.85%.
The amount
available for appropriations, including surplus from previous year amounted to
Rs.1063.77 million. Surplus Rs.1019.16 million has been carried forward to the
Balance Sheet after providing for Dividend of Rs.20.33 million, dividend tax
Rs.3.45 million and General Reserve of Rs.20.82 million.
Capital Structure
Changes to Share Capital
During the year
under review the Issued, Subscribed and Paid up Capital has increased to
Rs.101.64 million from Rs.99.65 million as a result of allotment of additional
199,112 Equity Shares of Rs10 each on October 4, 2011. The Authorised Share
Capital of the Company Stands at Rs.200 million.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Developments
The Company
continues its strategic focus on two distinct and separate industry segments
1. Specialty
Chemicals
2. Pharmaceuticals
Subject manufactures
and markets Specialty Chemicals predominantly for personal care and cosmetic
industries and Pharmaceuticals.
The Company’s
product portfolio continues to expand as part of its continuing growth
strategy.
1. Specialty
Chemicals
- Active ingredients for hair care, skin
care, sun care and oral care products manufactured by global leaders in
Personal and Beauty Care products.
- Active components within anti-microbial
and biocidal industrial care products
- Black and White developers for the
photographic and x-ray imaging markets
- Photochromic dyes for prescription
lenses, sunglasses and sportswear lenses
2. Pharmaceutical
Finished products
- Anti-cancer products
- Anti-tuberculosis
- Small volume parentals and branded
products for
i. institutional customers
in
ii. Distributors
in export markets
The Market for
Specialty Chemicals in 2010-11
The Indian
chemical and petrochemical industry was worth $83bn in 2010 and it was the
third largest in
The global
specialty chemicals market, at $740bn represents 22% of the global chemical
industry, saw a sharp rebound from the downturn in 2009.
Increasing raw
material costs continued to be a major factor, accelerating further in H2 2010
and impacting on margins but this was mitigated by the increase in demand
enabling some companies to improve margins and post higher sales levels. Many
companies undertook restructurings to reduce costs and thus took greater
advantage from higher volumes. Other companies restructured the portfolio towards
even more higher margin specialties and quality products.
Towards the back
end of 2010 and into 2011, the level of M and A activity increased leading to
further consolidation within the market with the largest deal being BASF’s
acquisition of Cognis.
The global crisis
and recovery also signalled the overall strength of Asia in chemical
manufacture and the growing importance of
The Indian
specialty chemicals (excluding Knowledge Chemicals) market was estimated at
$15bn in 2010 and is forecasted to grow at 15% pa to 2015 primarily driven by
the growth in the number of middle class consumers who are able to afford
products which consume specialty chemicals. This in turn is underpinned by
growth in exports to meet the demands in existing global markets for
competitively priced solutions to customer needs.
Due to the
investment in base petrochemicals and other feedstocks within
Specialty
Chemicals Division
The Division’s
main activities are in the manufacture and marketing of active ingredients for use
within the global Personal Care and Cosmetics industries. These active
components represent 40% of all chemicals used within Personal Care products.
In
The company has
been recognized as one of the leading manufacturing companies in
The Division
continued its impressive growth performance achieving sales of Rs.316.28mn, a
21% increase over the previous year this was achieved through a combination of
increase in market share and new product approvals in both domestic and global
markets. Substantial investment are made in existing facilities at Bonthapally
and Bidar for hair dye intermediates, hair care, sun care and antimicrobials,
as part of its on-going expansion plan.
A manufacturing
and marketing partnership with ISP Inc. (USA) for sunscreens was announced and
new manufacturing facilities were commissioned and started during the year. A
distribution agreement for Latin America excluding
In response to the
growing demands for natural products within the Personal Care industry, the
Division started the development of a range of natural skin care actives in
partnership with Nisarg, a local SME in Andhra Pradesh. This partnership will
be expanded to cover the whole portfolio of natural personal care ingredients.
R and D in both
The Division has
continued its REACH activities in
The company
together with two major customers located in both NAFTA and
The company
achieved certification from TUV for its Integrated Management Systems in
Quality, Environments, Occupational Health and Safety and Social
Accountability.
Pharmaceutical Division
The global
pharmaceutical market is now estimated to be US $800 billion and is growing at
a rate of about 5% per annum. US,
In contrast,
pharmaceutical market of emerging economies like India, Brazil, Mexico, etc.
are growing at a much faster rate of 12% – 16% per annum driven by improved per
capita income, increased access and rising awareness of modern medicines and
strengthening of healthcare infrastructure.
The Indian
Pharmaceutical Industry currently tops the chart amongst
Generics
Advantage
The Indian Pharmaceutical Industry, particularly, has been the front
runner in wide range of specialties involving complex drug manufacture,
development and technology. With advantage of being highly organized sector,
the pharmaceutical companies in
Competent workforce:
Cost- effective chemical synthesis: Its track record of development,
particularly in area of improved cost beneficial chemical synthesis for various
drug molecules is excellent. It provides vide variety of bulk drugs and exports
sophisticated bulk drugs.
Legal Framework:
Globalization: The country is committed to free market economy and
globalization. This has resulted in increased flow of Foreign Direct Investment
inflow.
Consolidation: International pharmaceutical industry is finding great
opportunities in
Recent Developments
The Company has
seen a steady growth in the Pharma contract manufacturing segment and has
strengthened its position among marquee MNCs like Novartis, Merck Limited,
Astra Zeneca and other domestic multinationals, as a consistent and quality
conscious manufacturer of branded formulations.
The pharmaceutical
formulations business is segmented in following growth driving areas namely:-
(i) Own brand
sales in Eastern European Markets / New markets development in Rest of the
World.
(ii) Contract
Manufacturing
(iii) Domestic
Marketing
The Company has
forayed into formulation exports to
The pharma
division envisages immense growth opportunity in the domestic markets. The
company has started promoting branded formulations and has plans to acquire new
brands from existing companies.
In line with strategy
for growth in pharmaceutical segment the company has initiated setting up a
USFDA compliant facility with a capital outlay of Rs.500.000 millions. This
facility shall commence commercial production by FY 13 which will provide
immense opportunity for its export growth and well complimented with state of
the art R and D centre at its existing plant in
The Company
continues to focus on new drug delivery system and offering unique formulations
for its customers
Recognition and
Certifications
• ISO 9001:2000
QMS certification for its manufacturing facilities
• ISO 14001:2004
certification for Environmental Management System,
• United States
Environmental Protection Agency (EPA) certification for Triclosan (VIV-20)
• Certification
for Bio-Terrorism preparedness from the US FDA (a prerequisite for exports to
certain countries)
• Pre-registered
its products for REACH (Registration, Evaluation and Authorization of
Chemicals) in the European countries.
• WHO GMP approved
formulation plants at
• R and D
certified as a GLP Laboratory by CISR a government of
• United States
Environmental Protection Agency (EPA) certification for Triclosan (VIV-20).
• FROST and
SULLIVAN Award for Excellence in Product Line Strategy in the Indian
Preservatives Markets in the year 2005.
• Star Exports
Excellence Award: Product Category, SSI Gold from the Govt of Karnataka,
• The Company’s
• Award from
Johnson and Johnson appreciating for Implementation of Supplier Enabled
Innovative Idea in the year 2005
• Queen’s Award
for Technology (2006)
• ISO 18001: 2007
Certification for Safety Management System
• Integrated
Management System (IMS) certification for manufacturing and supply of specialty
Chemicals and Active Pharmaceutical Ingredients and Social Accountability (SA
8000:2008)
• Certificate of
Appreciation from Hindustan Unilever Limited in the year 2009
CONTINGENT
LIABILITIES
(Rs.In Millions)
|
Particular |
31.03.2011 |
31.03.2010 |
|
Letter of Credit |
|
|
|
151.930 |
110.640 |
|
32.480 |
41.040 |
|
Bank Guarantee (State Bank of |
4.870 |
4.660 |
CONTINGENT LIABILITY ON ACCOUNT OF CORPORATE GUARANTEES
(Rs.In Millions)
|
Particular |
31.03.2011 |
31.03.2010 |
|
Vivimed Holdings Limited, (State Bank of |
571.610 |
760.500 |
|
Vivimed Labs Europe Limited, (State Bank of |
124.510 |
63.510 |
|
Creative Health Care Private Limited, (Axis Bank, |
0.000 |
65.000 |
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2011
(Rs. In Millions)
|
Particulars |
3
Months Ended 30.06.2011 |
|
|
Unaudited |
|
Net sales/
Income from Operations. |
1206.240 |
|
Net sales/ Income from Operations. |
1205.410 |
|
Other Operating Income |
0.83 |
|
Expenditure |
(985.620) |
|
Consumption of Raw Materials |
(701.920) |
|
Depreciation |
(26.460) |
|
Employee Cost |
(48.650) |
|
Other Expenditure |
(274.820) |
|
(Increase)/Decrease In Stock |
66.230 |
|
Profit from Operations before Other Income, Interest
and Exceptional Items |
220.620 |
|
Other Income |
0.000 |
|
Profit before Interest and Exceptional Items |
220.620 |
|
Interest |
(65.070) |
|
Profit after Interest but before Exceptional Items |
155.550 |
|
Exceptional Items |
0.000 |
|
Profit (+)/ Loss (-) from Ordinary Activities before Tax |
155.550 |
|
Tax |
(31.640) |
|
Net Profit (+)/ Loss (-) from Ordinary Activities
after Tax |
123.910 |
|
Extraordinary Items |
0.000 |
|
Net Profit |
123.910 |
|
Minority Interest |
0.000 |
|
Share of Profit and Loss of Asso |
0.000 |
|
Net Profit after |
123.910 |
|
Any Other |
0.000 |
|
Income Attributable to Consolidated Group |
123.910 |
|
Cost of Investment In Sub |
0.000 |
|
Equity Capital |
101.640 |
|
Face Value (in Rs) |
10.00 |
|
Reserves |
0.000 |
|
EPS before
Extraordinary items (in Rs) |
|
|
Basic EPS before Extraordinary items |
12.19 |
|
EPS after Extraordinary
items (in Rs) |
|
|
Diluted EPS after Extraordinary items |
10.24 |
|
Number of Public Shareholding |
5098643 |
|
Percentage of Public Shareholding |
50.16 |
|
Promoters and
Promoter Group Shareholding |
|
|
Pledged /
Encumbered |
|
|
Number of Shares |
1052455 |
|
Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
20.78 |
|
Percentage of Shares (as a% of the total share capital of the company) |
10.3.6 |
|
Non-encumbered |
|
|
Number of Shares |
4012918 |
|
Percentage of Shares (as a% of the total shareholding of promoter and prom group) |
79.22 |
|
Percentage of Shares (as a % of the total share capital of the company) |
39.48 |
Notes :
Status of Investor Complaints for the quarter
Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter Nil
Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil
1. The above Standalone Results for the Quarter ended June 30th,2011
have been reviewed by Audit Committee and taken on record by Board of Directors
at their meeting held on August 13th, 2011.
2. Consolidated Financial Statements have been prepared in accordance
with Accounting Standard 21 on "Consolidated Financial Statements"
issued by The Institute of Chartered Accountants of India. Consolidated results
are combined number of subject and its 100% Subsidiaries, Cretive Health Care
Private Limited, Vivimed Holdings Limited (which includes financial date of its
100% subsidiary Vivimed Labs Europe Limited,
3. The Company opted to publish only Consolidated Financial Results.
Standalone results of the company will be available on company’s website
www.vivimedlabs.com.
4. As per Accounting Standard 17 on Segment Reporting (AS-17), results of
the two Segments "Specialty Chemicals" and "Pharma" are
reported.
5. Corresponding numbers of previous period / year have been revised,
regrouped, wherever necessary.
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Electrical Equipment
- Laboratory Equipment
- Office Equipment
- Computers
- Furniture
- Vehicles
- Borewell
- Generator
WEBSITE DETAILS
Business Description
Subject is an India-based
company. The Company operates in two segments: specialty chemicals and
pharmaceuticals. The specialty chemicals segment manufactures a range of
products active ingredients for home and personal care and personal hygiene
products. Pharmaceutical segment is engaged in contract manufacturing and job
works. Its portfolio has a range of specialty chemicals (active ingredients)
supplied to manufacturers of beauty care products like hair care, skin care,
sun care and oral care products, industrial care products, such as
anti-microbial, anti-fouling agents and biocides and health care products like
pharmaceutical finished drug forms for cancer, tuberculosis. Its subsidiaries
include Creative Health Care Private Limited, Vivimed Holdings Limited, Vivimed
Labs Europe Limited and Vivimed Labs USA Inc. For the fiscal year ended 31
March 2010, Subject.'s revenues increased 26% to Rs3.5B. Net income increased
60% to Rs310.1M. Revenues reflect an increase in income from Specialty
Chemicals and a higher income from Pharmaceutical segments. Net income also
reflects lower manufacturing expenses, a decline in advertisement expenses, the
presence of income from exchange fluctuations and a rise in operating profit
margin.
Board of Directors
Mr. V. Manohar Rao
Executive Non-Independent Chairman of the Board
Dr. V. Manohar Rao
is the Executive Non-Independent Chairman of the Board of Subject. He is
Retired as Joint Director of ace The Veterinary Biological and Research
Institute (VBRI) and has done his post-graduation in Veterinary Sciences from
Mr. Subhash Varalwar
Executive Non-Independent Vice Chairman of the
Board
Mr. Subhash
Varalwar is the Executive Non-Independent Vice Chairman of the Board of Vivimed
Labs Inc. He is a Post Graduate in Chemical Engineering and a Management
Graduate from
Mr. Raj Kumar Dhar
Whole Time Director, Director-Technical, Director
Research and Development
Dr. Raj Kumar Dhar
is the Whole Time Director, Director-Technical, Director Research and
Development of Subject. He has done his Post Doctoral studies at Marburg,
Germany, started his career with Hoechst R and D Germany and ever since has
been involved in Organic Synthetic chemistry for three decades. Has several
novel product developments to his credit and is the chief architect of Vivimeds
VINTO X - NDGA. Has been involved with Vivimed in various capacities since
inception and became a Whole Time Director in 2008.
Mr. Nixon Patel
Non-Executive Independent Director
Mr. Nixon Patel is
the Non-Executive Independent Director of Subject. He holds Bachelors degree in
Technology (Hons.) from Indian Institute of Technology, Kharagpur and has pursued
his MS in Computer Science from New Jersey Institute of Technology. Mr. Nixon
Patel, is a entrepreneur with a proven track record for growing 5 businesses
from startup to millions of US$ in annual sales, developed in a short span of
20 years.
Mr. S. Raghunandan
Whole-Time Director, Director – Operation
Mr. S. Raghunandan
is the Executive Non-Independent Director and Director - Operations of Subject.
He is a Science Post Graduate, began his career with Chandra Pharmaceuticals
the producers of Ibuprofen in
Mr. M. Bhagvanth Rao
Non-Executive Independent Director
Dr. M. Bhagvanth
Rao is the Non-Executive Independent Director of Subject. He is a PHD in
chemical engineering from the Indian Institute of Sciences,
Mr. Divvela Hanumantha Rao
Non-Executive Independent Director
Mr. Divvela
Hanumantha Rao is Non-Executive Independent Director of Subject. He has degree
in B. Pharm, PGDHA and has got knowledge in application, evaluation and
teaching of regulatory affairs in Government, industry and academia. He has
over 30 years of experience in various national and international regulatory
laws. He served on various assignments for government and private sector in his
field of specialization. He retired as Director, Drugs Control Administration,
Government of Andhra Pradesh. Presently he is working as consultant to pharma
companies
Mr. P. V. Rathnam
Non-Executive Independent Director
Mr. P.V. Rathnam
is the Non-Executive Independent Director of Subject. He is a Fellow Member of
the Institute of Chartered Accountants of India and Management Graduate with
post professional qualification experience, in various levels of Management, in
private and public sector undertakings in chemicals, fertilizers,
pharmaceuticals, automobile and electrical engineering industries, spanning
over 44 years, ending with Chairman and Managing Director, from 1990 to 2005,
of a medium scale unit engaged in concept to commissioning of custom built
electrical machines for on-board installation in Indian warships, submarines
and combat aircraft.
Mr. Santosh Varalwar
Chief Executive Officer, Managing Director,
Executive Non-Independent Director
Mr. Santosh
Varalwar is the Chief Executive Officer, Managing Director, Executive
Non-Independent Director of Subject. He is a Management Graduate. He is the
driving force behind the phenomenal growth of Subject. He worked in Shipping
Corporation of India (SCI) and had an opportunity to understand maritime trade
and had global exposure, which helped him subsequently to focus on
international marketing. H e served Mercantile Marine for about Seven Years
before embarking on a entrepreneurial journey. He has played an active role in
V V S Pharmaceuticals from the year 1985 and later on expanded the business to
manufacture APIs by acquiring EMGI Pharmaceuticals and Chemicals Private
Limited, Bidar, which was later converted into a public limited company and
named as Subject. Subject was listed on BSE / NSE in the year 2005 and the
Public Issue was all time success having been over-subscribed 40 times.
Mr. Sandeep Varalwar
Whole Time Director
Mr. Sandeep
Varalwar is the Whole Time Director of Subject. He has completed his Graduation
in B. Pharmacy. After completion of graduation, he gained 19 years of
experience in manufacturing and marketing divisions of Pharma industry. He is
the main strength behind the growth of Pharma division of the Company and took
an active role in V V S Pharmaceuticals and Chemicals Private Limited. After
the Company’s merger with Subject Mr. Sandeep Varalwar was appointed as a Whole
Time Director on the Board of Subject.
Mr. Peesapati Venkateswarlu
Non-Executive Independent Director
Dr. Peesapati
Venkateswarlu is Non-Executive Independent Director of Subject. He has done B.
Sc (Spl), M. Sc (
Mr.
Non-Executive Independent Director
Mr. Krishna
Yeachuri is Non-Executive Independent Director of Subject. He is Commerce
Graduate and Associate member of Institute of Chartered Accountants of India
and has experience covering multi facets of business with reputed domestic and
multi national companies. He was responsible for strategic planning, business
development, budgeting and treasury planning in various Companies in
Mr. Santosh Varalwar
Chief Executive Officer, Managing Director,
Executive Non-Independent Director
Mr. Santosh
Varalwar is the Chief Executive Officer, Managing Director, Executive
Non-Independent Director of Subject. He is a Management Graduate. He is the
driving force behind the phenomenal growth of Subject. He worked in Shipping
Corporation of India (SCI) and had an opportunity to understand maritime trade
and had global exposure, which helped him subsequently to focus on
international marketing. He served Mercantile Marine for about Seven Years before
embarking on a entrepreneurial journey. He has played an active role in V V S
Pharmaceuticals from the year 1985 and later on expanded the business to
manufacture APIs by acquiring EMGI Pharmaceuticals and Chemicals Private
Limited, Bidar, which was later converted into a public limited company and
named as Subject. Subject was listed on BSE / NSE in the year 2005 and the
Public Issue was all time success having been over-subscribed 40 times
PRESS RELEASES
Vivimed exhibiting at in-cosmetics Bangkok
Vivimed Labs cordially invites you to visit their stand C59 at
in-cosmetics
In-cosmetics
Vivimed will be showcasing it’s portfolio of speciality active
ingredients, additives for personal care formulations and extensive range of
hair colourants at the exhibition.
Vivimed Labs
Vivimed Labs
2011-10-12 |
09:52Vivimed Labs USA, Inc. has chosen Cambrian Chemicals Inc. to be its
distributor for personal care products in
Cambrian will be responsible
for the personal care product line—antimicrobials/preservatives, skin care
actives and UV filters—as well as NISARG natural extract products throughout
all the Canadian provinces.
“Choosing Cambrian
will allow us to reach the Canadian personal care, nutraceutical and vitamin
supplement markets and have a partner that can help us provide a high level of
customer service and technical support,” said Darren Gilbert, manager-sales and
marketing at Vivimed Labs USA.
Vivimed Labs moves higher on acquiring 100%
equity stake in Klar Sehen
03 October 2011
Vivimed Labs is
currently trading at Rs.245.45, up by 1.00 points or 0.41% from its previous
closing of Rs.244.45 on the BSE. The scrip opened at Rs.243.00 and has touched
a high and low of Rs.252.90 and Rs.242.10 respectively. So far 54515 shares
were traded on the counter. The BSE group 'B' stock of face value Rs.10 has
touched a 52 week high of Rs.350.00 on 01-Oct-2010 and a 52 week low of Rs
216.00 on 10-Feb-2011.Last one week high and low of the scrip stood at
Rs.252.90 and Rs.230.00 respectively. The current market cap of the company is
Rs.3041.900 Millions. The promoters holding in the company stood at 49.84%
while Institutions and Non-Institutions held 6.66% and 43.51%
respectively.Vivimed Labs, in a bid to consolidate its segment of domestic
pharmaceutical business, has acquired 100% equity stake in Klar Sehen (KSPL)
Vivimed's acquisition of KSPL complements its strategy to increase its domestic
presence in specialty pharmaceutical
areas, its extensive knowledge and experience in manufacturing, R and D will
help grow this business to new levels. KSPL is a 30 year old Kolkata based
Pharmaceutical Company with strong marketing presence in North East,
Vivimed Labs acquires 100% equity stake in
Klar Sehen
03 October 2011
Vivimed Labs, in a
bid to consolidate its segment of domestic pharmaceutical business, has
acquired 100% equity stake in Klar Sehen (KSPL).ďż˝ Vivimed's acquisition of
KSPL complements its strategy to increase its domestic presence in
specialty pharmaceutical areas, its
extensive knowledge and experience in manufacturing, R and D will help grow
this business to new levels. KSPL is a 30 year old Kolkata based Pharmaceutical
Company with strong marketing presence in North East,
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.50.07 |
|
|
1 |
Rs.79.16 |
|
Euro |
1 |
Rs.69.06 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.