MIRA INFORM REPORT
|
Report Date : |
20.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
BAFNA PHARMACEUTICALS LIMITED |
|
|
|
|
Registered
Office : |
Bafna Towers, New No.68, Old No.299, Thambu Chetty Street, Madras-600
001, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
28.03.1995 |
|
|
|
|
Com. Reg. No.: |
18-030698 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.183.813
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24294TN1995PLC030698 |
|
|
|
|
IEC No.: |
0493012796 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEB05006B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB3109Q |
|
|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of Drugs and Medicines. |
|
|
|
|
No. of Employees
: |
80
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was established as a proprietory concern in the year 1981 and
during 1995 it was reconstituted as a public limited company. It is an established
company having a satisfactory track record. Trade relations are reported as decent. Business is active. Payments
terms are reported to be usually correct and as per commitments. The company can be considered 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced controls
on foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of
persistently high inflation and interest rates and little progress on economic
reforms. High international crude prices have exacerbated the government's fuel
subsidy expenditures contributing to a higher fiscal deficit, and a worsening
current account deficit. Little economic reform took place in 2011 largely due
to corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BBB (Long Term Rating) |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
10.04.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A3+ (Short Term Rating) |
|
Rating Explanation |
Moderate degree of safety and higher credit risk. |
|
Date |
10.04.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Bafna Towers, New No.68, Old No.299, Thambu Chetty Street, Madras-600
001, Tamilnadu, India |
|
Tel. No.: |
91-44-25267517/ 25270992 / 42677555 |
|
Fax No.: |
91-44-25211331/ 25231264 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
2500 Sq. ft |
|
Location : |
Rented |
|
|
|
|
Factory 1: |
No.13, |
|
Tel. No.: |
91-44-25530329/ 25531965 |
|
Fax. No.: |
91-44-25231264 |
|
E-Mail : |
|
|
|
|
|
Factory 2: |
No.147, |
|
Tel. No. : |
91-44-26322900 |
|
Fax No.: |
91-44-25231264 |
|
E-Mail : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Mahaveer Chand Bafna |
|
Designation : |
Chairman and Managing Director |
|
Address : |
96, |
|
Date of Birth/Age : |
01.11.1961 |
|
Qualification : |
B. Sc. [Chemistry] |
|
|
|
|
Name : |
Mr. Paras Bafna |
|
Designation : |
Whole Time Director (w. e. f. 15.12.2005) |
|
Address : |
289, Purasawalkam High Road, Flat No. 106, 3rd Floor, Waikki
Complex, Chennai – 600 007, Tamilnadu, India |
|
Date of Birth/Age : |
29.06.1966 |
|
|
|
|
Name : |
Mr. V. Rajamani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. Sahasranaman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Dwarakanathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sunil Bafna |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Jayaraman |
|
Designation : |
Company Secretary |
|
|
|
|
Investor Grievance and Share Committee : |
Shri. Bafna Mahaveer Chand Shri. Paras Bafna Shri. Sunil Bafna |
|
|
|
|
Audit Committee : |
Shri. V. Rajamani Shri. R. Dwarakanathan Shri. Bafna Mahaveer Chand |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
Individuals / Hindu Undivided Family |
4206022 |
22.54 |
|
Any Others
(Specify) |
3370000 |
18.06 |
|
|
3370000 |
18.06 |
|
Sub Total |
7576022 |
40.61 |
|
(2) Foreign |
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
7576022 |
40.61 |
|
|
|
|
|
(1) Institutions |
|
|
|
(2)
Non-Institutions |
|
|
|
Bodies Corporate |
1880966 |
10.08 |
|
|
|
|
|
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million |
1968123 |
10.55 |
|
Individual shareholders holding nominal
share capital in excess of Rs. 0.100 Million |
5783335 |
31 |
|
Any Others
(Specify) |
1447889 |
7.76 |
|
Clearing Members |
227416 |
1.22 |
|
|
479844 |
2.57 |
|
Non Resident Indians |
740629 |
3.97 |
|
Sub Total |
11080313 |
59.39 |
|
Total Public
shareholding (B) |
11080313 |
59.39 |
|
|
18656335 |
100 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0 |
|
|
0 |
0 |
|
(2) Public |
0 |
0 |
|
Sub Total |
0 |
0 |
|
Total
(A)+(B)+(C) |
18656335 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Drugs and Medicines. |
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Products : |
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Brand Names : |
RARICAP |
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Actual
Production |
|
Tablets |
In Strips of 10 |
79312683 |
|
Capsules |
In Strips of 10 |
28625835 |
|
Syrups |
In Lts |
301786 |
GENERAL INFORMATION
|
No. of Employees : |
80 (Approximately) |
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Bankers : |
·
State Bank of India ·
Export – Import Bank of India ·
IDBI Bank
|
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Abhay Jain and Company Chartered Accountant |
|
Address : |
Room No.72, 3rd Floor, 4/16, Sunkurama Steel,
Chennai-600001, Tamilnadu, India |
|
|
|
|
Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18381335 |
Equity Shares |
Rs.10/- each |
Rs. 183.813
Millions |
|
|
|
|
|
AS ON 27.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18656335 |
Equity Shares |
Rs.10/- each |
Rs. 186.563
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
183.813 |
174.813 |
159.813 |
|
|
2] Share Warrants Money |
58.660 |
27.410 |
0.000 |
|
|
3] Reserves & Surplus |
396.404 |
339.663 |
250.233 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
638.877 |
541.886 |
410.046 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
806.487 |
510.474 |
297.552 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.390 |
|
|
TOTAL BORROWING |
806.487 |
510.474 |
297.942 |
|
|
DEFERRED TAX LIABILITIES |
50.589 |
28.177 |
22.080 |
|
|
|
|
|
|
|
|
TOTAL |
1495.953 |
1080.537 |
730.068 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
698.214 |
470.412 |
385.217 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
14.300 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
225.831
|
147.476 |
93.382 |
|
|
Sundry Debtors |
816.231
|
349.864 |
203.284 |
|
|
Cash & Bank Balances |
23.077
|
117.799 |
18.412 |
|
|
Other Current Assets |
44.107
|
12.171 |
0.000 |
|
|
Loans & Advances |
251.841
|
258.489 |
125.904 |
|
Total
Current Assets |
1361.087
|
885.799 |
440.982 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
531.027
|
254.754 |
98.435 |
|
|
Other Current Liabilities |
46.621
|
20.920 |
7.737 |
|
|
Provisions |
0.000
|
0.000 |
5.040 |
|
Total
Current Liabilities |
577.648
|
275.674 |
111.212 |
|
|
Net Current Assets |
783.439
|
610.125 |
329.770 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
15.081 |
|
|
|
|
|
|
|
|
TOTAL |
1495.953 |
1080.537 |
730.068 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1209.820 |
1013.032 |
744.014 |
|
|
|
Other Income |
40.262 |
6.210 |
7.799 |
|
|
|
TOTAL (A) |
1250.082 |
1019.242 |
751.813 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
365.162 |
322.108 |
|
|
|
|
Purchase of Stock-
in-Trade |
633.593 |
537.777 |
|
|
|
|
Payment to Employees |
56.670 |
30.913 |
|
|
|
|
Other Expenses |
58.171 |
31.902 |
|
|
|
|
Exceptional Items |
1.311 |
0.000 |
|
|
|
|
Changes in Inventories of
Finished Goods |
(58.182) |
(24.343) |
|
|
|
|
TOTAL (B) |
1056.725 |
898.357 |
671.597 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
193.357 |
120.885 |
80.216 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
81.324 |
42.963 |
23.186 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
112.033 |
77.922 |
57.030 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
58.380 |
27.685 |
17.379 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
53.653 |
50.237 |
39.651 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
32.913 |
16.755 |
14.838 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
20.740 |
33.482 |
24.813 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
23.006 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
2.481 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
45.338 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
359.185 |
240.451 |
233.862 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.19 |
1.92 |
1.55 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
343.500 |
581.930 |
|
Total Expenditure |
281.350 |
521.140 |
|
PBIDT (Excl OI) |
62.150 |
60.790 |
|
Other Income |
3.100 |
6.070 |
|
Operating Profit |
65.250 |
66.860 |
|
Interest |
26.300 |
25.520 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
38.950 |
41.340 |
|
Depreciation |
17.660 |
15.990 |
|
Profit Before Tax |
21.290 |
25.350 |
|
Tax |
10.680 |
4.660 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
10.610 |
20.690 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
10.610 |
20.690 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.66
|
3.28 |
3.30 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.43
|
4.96 |
5.33 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.61
|
3.70 |
4.80 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.09 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.25
|
1.50 |
1.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.36
|
3.21 |
3.97 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
FINANCIAL
PERFORMANCE
The Company’s revenue for the year FY‟12 is Rs.1250.082 Millions as against Rs.1019.243 in FY‟11 registering a YOY growth of 22.64%.
AWARDS AND
ACHIEVEMENTS
IDMA - Gold Award – Quality
Excellence Award
MANAGEMENT
DISCUSSION AND ANALYSIS
GENERAL ECONOMIC HEALTH IS NOT SO DETRIMENTAL FOR
THE INDUSTRY
Global economic scenario is still to respond to the remedial actions
from federal governments and other world bodies particularly in three major
economies. US government is mulling over for a quantitative easing and Euro
zone is partly thinking of disintegrating the structure, China is exploring
fiscal stimuli in spite of caution from analysts about tipping of asset bubble
driven by previous stimuli doses.
FY 12 for India has not been as good as usual registering a humble
growth rate of about 6.5 % as against the average growth rate of about 8% for
the past 5 years. The analysts and economists call for fiscal stimuli as
monetary expansion and interest rate reduction are expected to worsen already
higher inflation levels.
In this backdrop, analysts estimate that the growth in Pharma industry
is expected to survive good revenue growth both in export and domestic market
with a CAGR of about 20% and 15% in next four to five years.
According to a report by Edelweiss, Some of key trends to watch for
planning our growth strategy are,
- Possibility
of decreasing generic opportunity due to shrinking patent cliff pipe line
in the US. This could impact US market focused opportunity from about USD
7 Bn in CY 12 to USD 3-4 Bn in further years
- Domestic
market will remain to be a key growth driver. But profitability could be
impacted due to operational bottle necks, regulatory risks (price control)
and increased expenses to explore new geographies in Tier II and Tier III
cities.
- Emerging
markets constitute to about 20% of the overall revenue of Indian companies
and will continue to drive the revenue growth. But the key to success is
the market selection.
- There
will be downside impact on earnings growth momentum beyond FY 13 at about
13% during FY 13 – 14, against the rate of over 25% between FY 06-11.
Lowering US opportunity, margin pressure at domestic market and a likely
slow down in overall revenue growth are the key reasons attributed to
impacting earnings growth.
BAFNA PHARMA’S
GROWTH TRAJECTORY IS SAFE AND EFFECTIVE
Top management in Subject is consciously watching
the macro trends for the course correction. The growth strategy that the
company had formulated and is pursuing is in line with the industry trend
Subject formulated a five year plan in FY 10 and is identified growth paths,
namely domestic branded sales, branded generics, brands in emerging markets and
CRAMS.
Subject has recorded a revenue growth of CAGR of about 40%3 in the past
4 years. The company plans to aim at a CAGR of about 30% for the next 5 years.
The management has laid down the following as the key growth drivers for the
future growth,
- Sales
growth will be driven by growing domestic brands and export business.
Consciously Subject is planning to change the composition of business by
reducing the share of thin margin domestic institutional business. It is
evident from the decreasing sales of domestic sales from Rs.820.000
Millions in FY 11 to Rs.770.000 Millions in FY 12
- The
company plans to improve EBIDTA margins by following modes
v
Changing
composition of sales more in favor of high margin branded business
v
Launching
new brands and to launch Raricap across key geographies where Subject already
has presence.
v
Subject has
extended the global foot print from 80 product approvals in FY 10 to 149
product approvals in FY 12. This includes the 11 site variation approvals in FY
10 to 30 in FY 12.
v Company intends to improve the cash cycle by
reducing the debtor’s period and hence to relieve the pressures of working
capital requirements. By this the reliance on loan funds will decrease and
hence decrease in financial expenses.
- Company
is in all-aggressive mode for branding and sales promotion. So, funds
raised will be used for these activities and to acquire new brands
- Raricap
will be a key bet for the company for all branded business as a launch
pad. Some key pointers related to Raricap are
v
Raricap
will continue to drive growth in branded business. Subject has acquired global
rights for Raricap from J and J.
v
Successful
Pan India launch (Except Rajasthan and M.P) promoted by the marketing of team
of 300 plus people.
v
After a
successful launch in Srilanka, Singapore, the company has initiated the launch
in Europe, USA and other emerging markets
v Plans to launch the brand extension like RARICAP
drop, RARICAP Kandy
DOMESTIC MARKET
Consciously Subject is planning to
change the composition of business by reducing the share of thin margin
domestic institutional business. It is evident from the decreasing sales of
domestic sales from Rs.820.000 Millions in FY 11 to Rs.770.000 Millions in FY
12. As part of value migration, the company has planned for a launch of series
of branded formulations in the women wellness segment.
OUTLOOK
Pharmaceuticals markets both domestic and international are more prone
to regulatory risks apart from the regular business risks. Subject management has a good understanding of the
contours of these markets with hands-on experience to handle the threats
arising out of the uncertainties. Also, the company mitigates the risks by
strategic association with local partners. The competitive environment is also
expected to remain intense. The Company will ensure that it remains
competitive, in market and in costs, and will manage the business more
dynamically.
CONTINGENT LIABILITIES NOT PROVIDED FOR
|
Particular |
As
at 31st March 2012 |
As
at 31st March 2011 |
|
In respect of Letter of
Credit and Bank Guarantee |
60.080 |
62.213 |
|
Bonds have been executed in
favour of Customs Authorities for the purchase of materials and capital goods
without payment of duty |
77.000 |
57.000 |
FIXED ASSETS
- Land
- Light Ceiling
- Aluminum
Partition
- Plant and
Machinery
- Lab
Equipments
- Factory
Equipments
- Electrical
Equipments and Installation
- Fittings
- Generator
- Air Floating
and Circulating
- Boiler
- Camera
- Air
Conditioner
- Office
Equipments
- Dies and
Punches
- Computer
- Furniture and
Fittings
- Vehicles
- Bottle
Washing and Filling
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th
SEPTEMBER 2012
(Rs. in millions)
|
Sr. No. |
Particular |
3 Months Ended |
Previous 3 Months Ended |
Year to Date
Figures for Previous Year Ended |
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
581.925 |
343.504 |
925.429 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
93.640 |
118.398 |
212.038 |
|
|
Purchase of Stock In Trade |
368.205 |
120.860 |
489.065 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
13.756 |
(3.398) |
(13.756) |
|
|
Employee Benefits Expenses |
22.511 |
20.698 |
43.209 |
|
|
Depreciation and Amortization Expenses |
15.987 |
17.657 |
33.644 |
|
|
Other Expenses |
19.634 |
24.789 |
44.423 |
|
|
f) Total |
533.732 |
299.006 |
836.135 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
44.795 |
44.498 |
89.293 |
|
|
|
|
|
|
|
4. |
Other Income |
6.074 |
3.096 |
9.170 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
50.869 |
47.594 |
98.463 |
|
|
|
|
|
|
|
6. |
Interest |
25.524 |
26.296 |
51.821 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
25.345 |
21.298 |
46.643 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
25.345 |
21.298 |
46.643 |
|
|
|
|
|
|
|
10. |
Tax Expense |
4.660 |
10.685 |
15.346 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
20.685 |
10.612 |
31.297 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
20.685 |
10.612 |
31.297 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
186.563 |
183.813 |
186.563 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
1.11 |
0.58 |
1.68 |
|
|
b) Basic and diluted EPS after extraordinary items |
1.11 |
0.58 |
1.68 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
11080313 |
11262577 |
11080313 |
|
|
- Percentage of Shareholding |
59.39 |
61.27 |
59.39 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
1003000 |
1003000 |
1003000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
13.24 |
14.09 |
13.24 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
5.38 |
5.46 |
5.38 |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
6573022 |
6115758 |
6573022 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
86.76 |
85.91 |
86.76 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
35.23 |
33.27 |
35.23 |
STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS AT 30TH
SEPTEMBER, 2012
(Rs. In Millions)
|
PARTICULARS |
30.09.2012 Six Months Ended (Unaudited) |
|
Equity and
liabilities |
|
|
Shareholders’
fund |
|
|
Share capital |
186.563 |
|
Reserve &
surplus |
462.117 |
|
Money Received
against share warrants |
31.250 |
|
Sub-total - Shareholders' funds |
679.931 |
|
Non - current
liabilities |
|
|
Long term
borrowings |
245.696 |
|
Deferred tax
liability (net) |
56.936 |
|
Sub-total - Non-current liabilities |
302.632 |
|
Current
liabilities |
|
|
Short term
borrowings |
594.185 |
|
Trade payables |
194.002 |
|
Other current
liabilities |
50.151 |
|
Sub-total - Current liabilities |
838.338 |
|
Total - Equity & Liabilities |
1820.900 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
|
|
Intangible
assets |
484.175 |
|
Goodwill on
consolidation |
192.902 |
|
Non-current
investment |
14.300 |
|
Other
non-current assets |
40.355 |
|
Sub-total - Non-current Assets |
731.733 |
|
Current assets |
|
|
Inventories |
175.772 |
|
Trade
receivables |
789.928 |
|
Cash & bank
balances |
29.264 |
|
Short term loans
& advances |
94.203 |
|
Sub-total - Current Assets |
1089.168 |
|
Total – Assets |
1820.900 |
NOTES
- The above
unaudited quarterly financial results were reviewed and recommended by the
Audit Committee and subsequently approved by the Board of Directors at
their Meeting held on 07.11.2012.
- Status of
Investor Complaints :
Opening balance
Nil
Pending at the
beginning of the quarter Nil
No. of complaints
received and disposed off during the quarter
Nil
Complaints pending
at the end of the quarter Nil
- The company
operates only in one segment, i.e., Pharmaceutical formulations; as such
reporting is done on a single segments basis.
- Proceeds
received on conversion of warrants into shares. (warrants allotted on
17.03.2011)
(Rs. In Millions)
|
Total Receipts (conversion of 275000
warrants) |
9.755 |
|
Utilize for Expansion and Working Capital
Purpose |
9.755 |
|
Balance |
Nil |
- The figures for the previous periods have been
regrouped wherever necessary.
- The limited review
as required under Clause 41 of the Listing Agreement as been completed by
the statutory auditors for the quarter ended 30.09.2012
- The revised Schedule VI has become applicable
to the company for presentation of Financial statement for the year ended
30th September, 2012 according previous year / period figures
have been regrouped / reclassified wherever necessary.
WEBSITE DETAILS
PROFILE
Subject
forayed into the pharmaceutical manufacturing industry, way back in 1981. The
consistent drive and determination of their CMD to expand their horizons
resulted in the metamorphosis of Bafna Pharmaceuticals into a Public Limited
Company in 1995. Subject has expanded its operations and set up new and
improved manufacturing facilities, in Chennai, India. More than two decades
have passed since inception, yet their drive to innovate and exceed
expectations remains unsurpassed.
Several notable achievements have
come their way due to their ceaseless efforts towards ensuring quality,
honoring supply commitments, encouraging innovative research and practicing
professionalism in operations and management. They were awarded the
much-acclaimed WHO GMP in 1995 and have also been accredited with ISO 9001:2008
certifications. The State Pharmaceutical Corporation of Sri Lanka conferred the
Best Supplier award to Bafna Pharmaceuticals in 2005. They also have to their
credit MHRA, U.K accreditation for their Non – Betalactam manufacturing
facility located in Grantlyon, Chennai. Earlier this year in January 2010 Bafna
Pharmaceuticals was honored with the Gold Quality Excellence award by IDMA
(Indian Drug Manufacturers’ Association). These awards and certifications are a
testament to their commitment for quality, innovation and excellence in
delivering hi-end finished medical formulations at competitive prices.
Subject has emerged as one of the most competent player in the
Contract Research And Manufacturing industry, providing consistent and
unmatched service to both domestic and international markets. With state-of-the-art
R and D facility, they look ahead to strategic partnerships and global research
projects in developing, testing and validating new pharmaceutical formulations.
Equipped with the latest infrastructure, trained and experienced personnel and
organized management, they could be the trusted partner and facilitator in the
global arena of contract research and manufacturing.
MILESTONES
1981 Subject entered the pharmaceutical industry as a small-scale industry.
1984 Their first manufacturing unit was set up at Madhavaram on the
outskirts of Chennai in Tamilnadu with a manufacturing capacity of 43 million
tablets per annum.
1987 The capsule line was added to it and its capacity was 30 million
capsules p.a. The liquid dosage line installed in 1990 had a production
capacity of 45000 lts p.a.
1995 Subject was awarded the WHO GMP certification. After this their first
product was registered and exported to
2000 Subject registered 3 of its products in
2001 a separate block was constructed within the Madhavaram factory for
manufacturing Betalactam products. Bafna’s Madhavaram unit is ISO: 9000
certified and presently accredited with ISO: 9001: 2008
2003 was significant in the success of subject as they were granted the
Export House Status by the Government of India.
2005 Subject bagged the Best Supplier award from the Government of Sri Lanka
in 2005.
2006 Subject set up a 100% EOU unit at Madhavaram for the production solid
oral dosage forms. The production capacity totals up to approx. 700 million
tablets and 250 million capsules. This facility is built in line with the
revised Schedule M under the Drugs and Cosmetics Act, 1947.
Second manufacturing
unit, specializing in manufacturing Non-Betalactam products in solid oral
dosage, was set up in 2006 at Grantlyon, near Red Hills, Chennai. This
state-of-the-art facility is 100% EOU compliant unit and its primary focus is
supplying to the regulated markets globally. The Governor of Tamil Nadu
formally inaugurated this factory on October 2nd, 2006.
2007 Subject has secured the manufacturing contract from leading
In 2007 their
Non-Betalactam facility at Grantlyon, received the prestigious EU GMP
accreditation from
2008 Subject was listed in the Bombay Stock Exchange (BSE). In 2008 Subject received approval for
manufacture and supply of SIMVASTATIN 40 mg tablets from
2009 Subject became the first company to launch the first brand of
Olmesartan tablets in
Subject received the
prestigious GOLD QUALITY EXCELLENCE AWARD from IDMA (Indian Drug Manufacturers
Association).
2010 In January 2010 granted approval of CLONIDINE tablets from
May 2010 has seen us
receiving the Good Manufacturing Practices (GMP) approval from
In May 2010 they
received Site Approval for Loperamide capsules and Paracetamol tablets by
In November 2010,
they received approval from UK Medicines and Healthcare products Regulatory
Agency (MHRA) to market Amlodipine 5mg and Amlodipine 10mg. Following this
development, it is the 13th formulation approval received from UK MHRA.
Amlodipine is a long-acting calcium channel blocker (dihydropyridine class)
used as an anti-hypertensive and in the treatment of angina. Amlodipine acts by
relaxing the smooth muscle in the arterial wall, decreasing total peripheral
resistance and hence reducing blood pressure; in angina it increases blood flow
to the heart muscle.
November 2010, they
got approval from UK Medicines and Healthcare products Regulatory Agency (MHRA)
to manufacture Finasteride 5mg. Finasteride is used for the treatment of
urinary problems in men caused by Benign Prostatic Hypertrophy (BPH) or
enlargement of the prostate gland. Finasteride 5 mg tablets is a
prescription-only medicine (POM) used for the treatment and control of Benign
Prostatic Hyperplasia in order to cause regression of an enlarged prostate,
improvement of urinary flow and improvement of other symptoms associated with
BPH. It is also used to reduce the incidence of acute urinary retention and the
need for BPH-related surgical procedures in patients.
2011 In January 2011, they received the prestigious Indian Manufacturers’
Association (IDMA) Quality Excellence Award 2010 – in the category of
Formulation Units from Shri Ghulam Nabi Azad, Union Minister of Health &
Family Welfare, Government of India.
January 2011, Their
CMD Mr. Bafna Mahaveer Chand received the very highly acclaimed “Udyog Rattan
Award” and their Company received “Excellence Award” from IES, handed over by
Mr. Korn Dabbaransi, former Deputy Prime Minister of
BOARD OF DIRECTORS
CHAIRMAN AND MANAGING DIRECTOR
MR. BAFNA MAHAVEER CHAND - Chairman and Managing Director aged 49 years,
has over three decades of experience in the pharmaceutical industry. A doyen in
the industry with in-depth know-how and expertise of all the faculties and
operations of the industry. With his sole diligence and vision only, the
company has achieved this height from a Limited company in 1995, to the
accreditation of Grantly on facility with UK-MHRA and to the listing of the
company in BSE during 2008. His expertise in institutional supplies, supply
contracts of the central government and several State Governments of India, the
Contract Manufacturing deal from M/s Croslands, Best Supplier award from the Government
of Sri Lanka, 336 product licenses, 80 product registrations globally, round
the year export to prestigious Regulated Markets, and Emerging markets,
contract manufacturing deal from Johnson and Johnson ltd, Gold Quality
Excellence Award 2009, setting up the State – of – the art R and D center and
receiving the National Level Entrepreneurship Excellence award in 2010 are just
a few glimpses of His success sojourn, at BAFNA.
DIRECTORS
Mr. Paras Bafna is the Executive
Director in-charge of the Madhavaram manufacturing facility. His astute
thinking and management skills are largely responsible for the smooth
functioning of this facility. His innate understanding of emerging
pharmaceutical market trends has helped us to advance technically and innovatively.
Mr. V. Rajamani is a greatly
experienced and highly qualified member of the group, specialsing in Financial
Management and Company Accounts. Prior to joining Bafna Pharma, he has served
as the Company Secretary and Chief Vigilance Officer of Manganese Ore India
Limited at Nagpur. He has acted as Additional/General Manager (co-ordination)
and as the Director of M/s Neyveli Lignite Corporation in Tamilnadu. And
presently he is engaged as a consultant Director of M/s Morgan Industries
Limited in Chennai. He possesses over 25 years of service experience in the
financial departments of various government establishments.
Mr. A.
Sahasranaman is a director par excellence; he is a top-level bureaucrat, a research
scholar and an accomplished author. Having completed his Master’s in Economics,
he subsequently joined the Indian Administrative Service, Jammu and Kashmir
Cadre and served from 1973 – 1996 under several strategic posts. Apart from
this he reserves the distinction for having acted as the Executive Director,
Council for Leather Exports – Chennai. He has lent his expertise to UNDP -
Dept. of Industrial Policy and Promotion, Government of India. He resumed his
tryst with Jammu and Kashmir by accepting an invitation by the state government
to serve as the Principal Secretary, Dept. of Industries and Commerce from 2003
– 2005. Since July 2002, he is serving as the Honorary Director of Indian
Leather Industry Foundation, Chennai chapter. In addition to his professional
legacy, he is also a renowned author of several books and articles pertaining
to the development and promotion of small-scale industries in India.
Mr. R.
Dwarakanathan possesses a Post Graduate Honors in Arts from Madras University and an
MBA Degree from Wichita State University, Kansas, USA. Also, he has to his
credit CAIIB, Diploma in Industrial Finance and Co-operation. His professional
career began when he joined the State Bank of India. Over a period of time his
dedication and managerial capabilities helped him scale-up to several high posts.
Since his retirement in 2000, he is serving as a senior faculty in Loyola
Institute of Business Administration, Chennai. In the course of his
professional career he has specialized in various areas such as Financial
Management, Corporate Credit, Foreign Exchange, Organizational Development,
Inspection and Management Audit and finally Rehabilitation of sick units.
Mr. U. Sunil Bafna is a dynamic,
young professional leader looking to steer the company into new horizons in the
days to come. He is a Graduate in Corporate Secretaryship from Madras
University; later on he completed a specialized course in Financial Management.
He brings with him over 15 years of experience matters of finance planning and
management.
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 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 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. 54.73 |
|
|
1 |
Rs. 89.01 |
|
Euro |
1 |
Rs. 72.47 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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 |
NO |
|
--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.