MIRA
INFORM REPORT
|
Report Date : |
03.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
CIPLA LIMITED |
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Registered
Office : |
Mumbai Central, Mumbai – 400 008, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.08.1935 |
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Com. Reg. No.: |
11-002380 |
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Capital
Investment / Paid-up Capital : |
Rs.1605.800 millions |
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CIN No.: [Company Identification
No.] |
L24239MH1935PLC002380 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC00352C |
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Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturers and Distributors of Drugs and Healthcare Products. |
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No. of Employees
: |
2200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 265000000 |
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|
Status : |
Excellent |
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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. Financials position of the company appears to be sound. Directors are experienced and respectable businessman. 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 |
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Risk Category |
ECGC
Classification |
|
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
|
Registered/ Corporate Office : |
Mumbai Central, Mumbai – 400 008, |
|
Tel. No.: |
91-22-23095521 / 23082891 / 23023272 |
|
Fax No.: |
91-22-23070013 / 23070393 / 85 / 23008101 |
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E-Mail : |
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Website : |
http://www.cipla.com |
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Factory 1: |
Virgonagar, Old Madras Road, Bangalore – 560049, Karnataka, India |
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Factory 2: |
Bommasandra-Jigani Link Road, Industrial Area, KIADB 4th Phase, Bengaluru - 560 099, Karnataka, India |
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Factory 3: |
MIDC, Patalganga, District Raigad – 410 220, Maharashtra, India |
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Factory 4: |
MIDC Industrial Area, Kurkumbh, Daund District Pune - 413802, Maharashtra, India |
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Factory 5: |
Verna Industrial Estate, Verna, Salcette, Panaji – 403 722, Goa, India |
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Factory 6: |
Village Malpur Upper, P.O. Bhud, Nalagarh, Baddi, District Solan -173205, Himachal Pradesh, India |
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Factory 7: |
Village Kumrek, P.O. Rangpoo-737 132, East District, Sikkim |
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Factory 8: |
ISEZ, Phase ll, Sector III, Pharma Zone, P.O. Pithampur, District: Dhar -454 774, Madhya Pradesh, India |
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Sales Office: |
Located At : ·
·
· Kolkata · Chennai ·
·
·
·
·
·
· Ambala Cantt ·
·
·
· Rajasthan ·
· Ahmedabad ·
· Mumbai · Madhya Pradesh · Pune ·
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Branch Office : |
289, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Dr. Y. K. Hamied |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. M. K. Hamied |
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Designation : |
Joint Managing Director |
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Name : |
Mr. S. Radhakrishnan |
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Designation : |
Whole Time Director |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Dr. H. R. Manchanda |
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Designation : |
Non-Executive Director |
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Qualification : |
M.B.B.S., F.R.C.S. |
|
Experience : |
1.
Consultant Surgeon at 2.
Professor of Surgery and Head of Surgery at Haffkine Institute – Board Member |
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Name : |
Mr. V. C. Kotwal |
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Designation : |
Non-Executive Director |
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Name : |
Mr. M. R. Raghavan |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Ramesh Shroff |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Pankaj Patel |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Dr. K. A. Hamied |
|
Designation : |
Fonder (1898-1972) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2011)
|
Category |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
122,720,500 |
15.30 |
|
|
6,022,791 |
0.75 |
|
|
128,743,291 |
16.05 |
|
|
|
|
|
|
|
|
|
|
166,742,687 |
20.79 |
|
|
166,742,687 |
20.79 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
295,485,978 |
36.83 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
73,214,436 |
9.13 |
|
|
1,277,198 |
0.16 |
|
|
89,462,945 |
11.15 |
|
|
105,063,404 |
13.10 |
|
|
269,017,983 |
33.53 |
|
|
|
|
|
|
|
|
|
|
45,461,757 |
5.67 |
|
|
|
|
|
|
53,990,157 |
6.73 |
|
|
110,507,849 |
13.78 |
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|
27,742,976 |
3.46 |
|
|
351,843 |
0.04 |
|
|
17,403 |
- |
|
|
26,522,150 |
3.31 |
|
|
851,321 |
0.11 |
|
|
259 |
- |
|
|
237,702,739 |
29.63 |
|
|
|
|
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Total Public
shareholding (B) |
506,720,722 |
63.17 |
|
|
|
|
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Total (A)+(B) |
802,206,700 |
100.00 |
|
|
|
|
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(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
714,657 |
- |
|
|
714,657 |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
802,921,357 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Distributors of Drugs and Healthcare Products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
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Bulk Drugs (including Malts) |
Tonne |
1492.9 |
1601.2 |
|
Tablets and Capsules |
Million |
17496.1 |
17935.3 |
|
Liquids |
Kilolitre |
3191.5 |
9009.8 |
|
Creams |
Tonnes |
689.0 |
898.9 |
|
Aerosols/Inhalation Devices |
Thousand |
143452.5 |
55256.9 |
|
Injections/Sterile Solutions |
Kilolitre |
1739.0 |
2525.9 |
|
Others |
|
-- |
2061.7 |
NOTES
· In terms of press note No. 4 (1994 series) dated 25th October 1994 issued by the Department of Industrial Development, Ministry of Industry, Government of India and Notification No. S.O. 137 (E) dated 1st March 1999 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government of India, Industrial licensing has been abolished in respect of bulk drugs and formulations. Hence there are no registered/licensed capacities for these bulk drugs and formulations.
· Installed capacity being effective operational capacity has been reviewed and calculated on shift basis for formulations and on a continuous basis for active pharmaceutical ingredients and drug intermediates. The installed capacity may, therefore, vary according to the production mix. In addition, installed capacity does not include the installed capacity of contract manufacturing sites.
· Actual production for all dosage forms includes production carried out by Cipla at contract manufacturing sites.
· The installed capacity is as certified by the management and not verified by the auditors, this being a technical matter.
· Actual production includes production of goods captively consumed.
GENERAL INFORMATION
|
No. of Employees : |
2200 (Approximately) |
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Bankers : |
· Bank of Baroda · Canara Bank · Corporation Bank · Indian Overseas Bank · Standard Chartered Bank · The Hong Kong and Shanghai Banking Corporation Limited · Union Bank of India · ANZ Grindlays Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
· V. Sankar Aiyar and Company Chartered Accountants · R. G. N. Price and Company Chartered Accountants |
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Subsidiaries Company: |
(Held Directly) · Cipla FZE · Goldencross Pharma Private Limited · Cipla (Mauritius) Limited · Meditab Specialities Private Limited (Held
Indirectly) · Cipla (UK) Limited · Cipla-Oz Pty Limited · STD Chemicals Limited · Medispray Laboratories Private Limited · Four M Propack Private Limited · Sitec Labs Private Limited · Meditab Holdings Limited · Meditab Pharmaceuticals South Africa (Pty) Limited · Meditab Specialities New Zealand Limited |
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Associates : |
· Quality Chemicals Industries Limited · Stempeutics Research Private Limited · Desano Holdings Limited · Shanghai Desano Chemical Pharmaceutical Company Limited · Shanghai Desano Pharmaceutical Investment Company Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
87,50,00,000 |
Equity Share |
Rs.2/- each |
Rs.1750.000 millions |
|
|
|
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,39,24,752 |
Equity Share |
Rs.2/- each |
Rs.1607.800
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,29,21,357 |
Equity Share |
Rs.2/- each |
Rs.1605.800 millions |
|
|
|
|
|
NOTE:
Of the above Equity Shares:
i. 75,83,20,444
shares of Rs.2 each were allotted as fully paid-up Bonus Shares by
capitalization of General Reserve and Securities Premium Account.
ii. 8,488 shares
of Rs.2 each were issued for consideration other than cash pursuant to the
Scheme of Arrangement in September 2004.
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 |
1605.800 |
1605.800 |
1554.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
64523.700 |
57535.100 |
41952.900 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
66129.500 |
59140.900 |
43507.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
29.500 |
4.100 |
27.900 |
|
|
2] Unsecured Loans |
4384.400 |
46.600 |
9374.500 |
|
|
TOTAL BORROWING |
4413.900 |
50.700 |
9402.400 |
|
|
DEFERRED TAX LIABILITIES |
2124.500 |
1791.500 |
1641.500 |
|
|
|
|
|
|
|
|
TOTAL |
72667.900 |
60983.100 |
54551.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
28680.200 |
20111.700 |
19924.900 |
|
|
Capital work-in-progress |
2530.700 |
6842.400 |
3663.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
5702.800 |
2651.000 |
813.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
18831.600
|
15125.800
|
13983.200 |
|
|
Sundry Debtors |
14970.400
|
15527.100
|
18371.500 |
|
|
Cash & Bank Balances |
841.300
|
608.400
|
530.000 |
|
|
Other Current Assets |
3.600
|
47.000
|
234.500 |
|
|
Loans & Advances |
12688.800
|
12215.900
|
9126.500 |
|
Total
Current Assets |
47335.700
|
43524.200
|
42245.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
7750.900
|
8054.000
|
7574.100 |
|
|
Other Current Liabilities |
1631.800
|
1928.500
|
2554.400 |
|
|
Provisions |
2198.800
|
2163.700
|
1967.100 |
|
Total
Current Liabilities |
11581.500
|
12146.200
|
12095.600 |
|
|
Net Current Assets |
35754.200
|
31378.000
|
30150.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
72667.900 |
60983.100 |
54551.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
61351.600 |
53595.200 |
49606.000 |
|
|
|
Other Income |
2987.200 |
3537.200 |
3552.200 |
|
|
|
TOTAL (A) |
64338.800 |
57132.400 |
53158.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
28604.300 |
24529.800 |
23474.000 |
|
|
|
Employee Cost |
4642.000 |
3188.700 |
2713.300 |
|
|
|
Other Expenses |
14640.700 |
12725.100 |
13755.500 |
|
|
|
Research and Development Expenses |
2597.900 |
2506.900 |
2355.000 |
|
|
|
Exceptional Item being sale of branch and other related rights |
0.000 |
(950.000) |
0.000 |
|
|
|
TOTAL (B) |
50484.900 |
42000.500 |
42297.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13853.900 |
15131.900 |
10860.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
51.400 |
229.500 |
329.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
13802.500 |
14902.400 |
10531.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
2288.600 |
1652.500 |
1517.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11513.900 |
13249.900 |
9013.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1910.000 |
2435.000 |
1245.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9603.900 |
10814.900 |
7768.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
16990.700 |
9548.300 |
5099.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
642.300 |
-- |
-- |
|
|
|
Proposed Dividend |
1605.800 |
1605.800 |
1554.600 |
|
|
|
Tax on Dividend |
367.200 |
266.700 |
264.200 |
|
|
|
Transfer to General Reserve |
1000.000 |
1500.000 |
1500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
22979.300 |
16990.700 |
9548.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
33614.900 |
29005.800 |
27426.900 |
|
|
|
Technical Know-how/ Fees |
547.600 |
1537.600 |
2174.500 |
|
|
|
Others |
14.200 |
33.400 |
0.200 |
|
|
TOTAL EARNINGS |
34176.700 |
30576.800 |
29601.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials / Packing Materials |
11707.700 |
8461.400 |
9637.900 |
|
|
|
Components and Spare Parts |
417.400 |
274.600 |
194.300 |
|
|
|
Capital Goods |
1793.900 |
1672.300 |
2568.000 |
|
|
TOTAL IMPORTS |
13919.000 |
10408.300 |
12400.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.96 |
13.69 |
9.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
15914.200 |
17780.200 |
|
Total Expenditure |
|
12218.800 |
13404.100 |
|
PBIDT (Excl OI) |
|
3695.400 |
4376.100 |
|
Other Income |
|
248.500 |
243.100 |
|
Operating Profit |
|
3943.900 |
4619.200 |
|
Interest |
|
42.500 |
23.800 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
3901.400 |
4595.400 |
|
Depreciation |
|
702.500 |
656.200 |
|
Profit Before Tax |
|
3198.900 |
3939.200 |
|
Tax |
|
665.500 |
849.500 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
2533.400 |
3089.700 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
2533.400 |
3089.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.93
|
18.93 |
14.61 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
18.77
|
24.72 |
18.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.15
|
20.82 |
14.50 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.22 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.24
|
0.21 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.09
|
3.58 |
3.49 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT REVIEW 2010-11
INDUSTRY STRUCTURE
AND DEVELOPMENT
The financial year
2010-11 marked resurgence in growth post the financial crisis. Higher
investment spending, specially in the emerging markets, is pushing growth in
the global economy. As a result, several countries are gradually returning to
normal macroeconomic policies. However, the economic health in parts of Europe
and the fiscal trends in some other countries is cause for concern and
continues to impact the world economy.
The forecast for
the Indian economy is positive with growth expected to touch 8.5 per cent in
the current fiscal year. Yet, constant inflation in the country is taking its
toll and rising global commodity prices is only compounding the problem.
The pharmaceutical
industry in India retains its position of strength as the pharmacy capital of
the world. It supplies an estimated one-third of all global pharmaceutical
produce in terms of volume. In the financial year 2010-11, the Indian
pharmaceutical industry grew more than 14 per cent, according to ORG IMS,
though this growth was mainly driven by the top 50 companies.
A growing trend
was that more Indian pharmaceutical companies focussed on semi-urban and rural
markets for incremental growth opportunities. During the year, the industry
also witnessed Indian pharma companies selling out to the multinationals.
PERFORMANCE REVIEW
The Company’s
total income from operations increased by 12 per cent. Domestic turnover rose
by 12 per cent while export income went up by 16 per cent. Profit after tax for
the year was Rs.9600.000 Millions compared to Rs.10810.000 Millions last year,
excluding the one-time sale of the I-pill brand last year.
This year, there
was a dip in operating margins of about 3 per cent, as a percentage of total
revenue. This was mainly due to lower technical fees (Rs.600.000 Millions
compared to Rs.1500.000 Millions last year), as the development stage of
several projects reached completion and the products have either been
commercially launched or will be launched by the Company’s partners. Another
major reason for the decline is that the Indore SEZ factory is in its first
year of operations and is still to reach its optimum capacity levels. Besides,
the Rupee has appreciated compared to the US dollar which has in turn reduced earnings
by about 4 percent.
MANUFACTURING
FACILITIES
In April 2010, the
Company commenced commercial production of pharmaceutical formulations at the
Special Economic Zone (SEZ) project, at Indore, Madhya Pradesh. This project includes
facilities for the manufacture of aerosols, respules, liquid orals, pre-filled
syringes (PFS), nasal sprays, large volume parenterals (LVP), eye drops,
tablets and capsules. The total investment for this project is about
Rs.9000.000 Millions.
The Company is
setting up API facilities at Bengaluru and Kurkumbh. It is also upgrading the
API facilities at Patalganga. The total investment for these projects is about
Rs.4000.000 Millions.
OPPORTUNITIES
Domestic Markets
According to ORG
IMS, company is one of the largest pharmaceutical companies in India. New
technology and new products, including dosage forms, which are being introduced
every year, offer significant growth opportunities for the Company.
Company is
increasing its focus in various segments to meet the growing market needs in
the future. The Company is giving a renewed focus to two therapeutic segments
namely, oncology and neuropsychiatry.
The Company’s
venture on biotechnology products is making significant progress and the
regulatory process is underway.
International
Markets
Company’s
international business continues to be a major revenue driver for the Company.
During the year under review, almost 55 per cent of the total income originated
from international markets. Company contributed significant net foreign
exchange earnings to the tune of USD 420 million.
The Company is in
the process of consolidating and rationalizing its international business and
strategies are being reviewed to optimize value for its technology and product
range.
The Company
continues to forge partnerships and alliances with large generic pharmaceutical
companies for product development and supply in developed markets.
Company continues
its humanitarian mission of making affordable medicines available to the entire
world. It is today the largest single supplier of HIV and anti-malarial drugs
in the world in terms of volume.
SUBSIDIARY
COMPANIES
In accordance with
circular no. 2/2011 dated 8th February 2011 issued by the Ministry of Corporate
Affairs, the Balance Sheets, including annexures and attachments thereto of the
Company’s subsidiaries, are not being attached with the Annual Report of the
Company. The annual accounts of the subsidiary companies and the related
detailed information will be made available to any member of the Company
seeking such information. These documents will also be available for inspection
by any member at the Registered Office of the Company and that of the
respective subsidiary companies. The consolidated financial statements
presented in this Annual Report include financial information of the subsidiary
companies. A statement containing information on the Company’s subsidiaries is
included in this Annual Report.
During the
financial year ended 31st March 2011, the following companies were acquired as
subsidiaries/step-down subsidiaries: Cipla (Mauritius) Limited, Cipla (UK)
Limited, Cipla-Oz Pty Limited, Four M Propack Private Limited, Goldencross
Pharma Private Limited, Medispray Laboratories Private Limited, Meditab
Holdings Limited, Meditab Pharmaceuticals South Africa (Pty) Limited, Meditab
Specialities New Zealand Limited, Meditab Specialities Private Limited, Sitec
Labs Private Limited and STD Chemicals Limited.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER, 2011
(RS. IN MILLIONS)
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
(Unaudited) |
|
|
|
|
|
|
1. a) Gross
Sales |
17580.900 |
33319.000 |
|
Less: Excise
Duty |
262.600 |
497.400 |
|
Net Sales |
17318.300 |
32821.600 |
|
|
|
|
|
b) Other
Operating Income |
461.900 |
872.800 |
|
Total Operating
Income (a+b) |
17780.200 |
33694.400 |
|
|
|
|
|
2. Expenditure |
|
|
|
a)(Increase)/
decrease in Stock-in-trade and work in progress |
188.500 |
(23.700) |
|
b) Consumption of
Materials |
5593.600 |
11004.000 |
|
c) Purchase of
Traded Goods |
1334.400 |
2818.500 |
|
d) Employee Cost |
1874.900 |
3587.200 |
|
e) Depreciation |
656.200 |
1358.700 |
|
f) Other
Expenditure |
4412.700 |
8236.900 |
|
g) Total |
14060.300 |
26981.600 |
|
|
|
|
|
3. Profit (+) /
Loss (-) from Operations before Other Income, Interest and Exceptional Items |
3719.900 |
6712.800 |
|
4. Other Income |
243.100 |
491.600 |
|
5. Profit (+)/
Loss (-) before Interest and Exceptional Items |
3963.000 |
7204.400 |
|
6. Interest |
23.800 |
66.300 |
|
7. Profit (+)/
Loss (-) before Tax |
3939.200 |
7138.100 |
|
8. Tax Expense |
849.500 |
1515.000 |
|
9.Net Profit (+)
/ Loss (-) after Tax |
3089.700 |
5623.100 |
|
10. Paid-up Equity
Share Capital (Face Value Rs.2/- per share) |
1605.800 |
1605.800 |
|
11. Reserves
excluding Revaluation Reserves as per Balance Sheet of previous Accounting
Year |
-- |
-- |
|
12. Earnings per
Share (Rs.) * Not Annualised |
**3.85 |
**7.00 |
|
|
|
|
|
13. Public
Shareholding |
|
|
|
- Number of
Shares |
506208722 |
506208722 |
|
- Percentage of
Shareholding |
63.05 |
63.05 |
|
|
|
|
|
14. Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of
Shares |
NIL |
NIL |
|
- Percentage of
shares (as a % of the total shareholding of promoter
and promoter group) |
NIL |
NIL |
|
- Percentage of
shares (as a % of the total share capital of the
Company) |
NIL |
NIL |
|
b) Non
Encumbered |
|
|
|
- Number of Shares |
295485978 |
295485978 |
|
- Percentage of
shares (as a % of the total shareholding of promoter
and promoter group) |
100.00 |
100.00 |
|
- Percentage of
shares (as a % of the total share capital of the
Company) |
36.80 |
36.80 |
NOTES
1. The Company is essentially in the pharmaceutical business segment.
2. No investor grievances were pending at the beginning of the quarter. During the quarter ended 30th September 2011, eleven investor grievances were received. As of 30th September 2011 all grievances have been suitably replied to.
3. In 2003 the Company received notice of demand from the National Pharmaceutical Pricing Authority, Government of India on account of alleged overcharging in respect of certain drugs under the Drug Price Control Order. This was contested before the jurisdictional High Courts wherein it was held in favour of the Company. The orders were challenged before the Hon'ble Supreme Court by the Government. The Hon'ble Supreme Court by separate orders restored the matter to the jurisdictional High Court for interpreting the Drug Policy on the basis of directions and principles laid down by them and also restrained the Government from taking any coercive action against the Company. The Company has been legally advised that on the basis of these orders there is no probability of demand crystallising. Hence no provision is considered necessary in respect of notice of demand aggregating to Rs.12302.800 millions (inclusive of interest) for the period July 1995 to April 2009.
4. The figures of the previous year have been regrouped /recast to render them comparable with the figures of the current year.
5. *Tax expense is inclusive of current tax, deferred tax and Minimum Alternate Tax (MAT) credit.
6. The Statement of assets and Liabilities is as under:
(Rs. In Millions)
|
Particulars
|
As at 30.09.2011 |
|
(Unaudited) |
|
|
Shareholders
Funds |
|
|
(a) Capital |
1605.800 |
|
(b) Reserves and Surplus |
70146.700 |
|
Loan
Funds |
2212.800 |
|
Deferred
Tax Liabilities |
2435.000 |
|
|
|
|
Total |
76400.300 |
|
|
|
|
Fixed
Assets |
32700.100 |
|
Investments
|
7040.500 |
|
Current
Assets, Loans and Advances |
|
|
(a) Inventories |
17096.300 |
|
(b) Sundry Debtors |
16756.000 |
|
(c) Cash and Bank balances |
804.900 |
|
(d) Other Current Assets |
16.300 |
|
(e) Loans and Advances |
13230.800 |
|
Less:
Current Liabilities and Provisions |
|
|
(a) Liabilities |
10695.400 |
|
(b) Provisions |
549.200 |
|
|
|
|
Total |
76400.300 |
7.
The above results after being reviewed by the Audit
Committee were approved at the meeting of the Board of Directors held on 14th
November, 2011. Limited Review as required under Clause 41 of the Listing Agreement
has been completed by the Statutory Auditors of the Company.
Financial Review – Period Ended September 2011
(Rs. in millions)
|
Particulars |
Quarter Ended |
Half Year
Ended |
|
|
30.09.2011 |
30.09.2011 |
|
|
|
|
|
Domestic |
8470.300 |
15906.500 |
|
|
|
|
|
Exports - Formulations |
7515.800 |
14104.500 |
|
APIs
and others |
1594.800 |
3308.000 |
|
Total
Exports |
9110.600 |
17412.500 |
|
|
|
|
|
% of exports to total sales |
51.8% |
52.3% |
|
|
|
|
|
Other operating
income |
|
|
|
Technology
know-how/fees |
77.700 |
176.000 |
|
Others |
384.200 |
696.800 |
|
Total |
461.900 |
872.800 |
|
|
|
|
|
Income from Operations |
18042.800 |
34191.800 |
|
|
|
|
|
Material
Cost |
7116.500 |
13798.800 |
|
% to total sales |
40.5% |
41.4% |
|
|
|
|
|
Operating
margin |
4376.100 |
8071.500 |
|
% to income
from operations |
24.3% |
23.6% |
|
|
|
|
|
Profit
before tax |
3939.200 |
7138.100 |
|
% to income
from operations |
21.8% |
20.9% |
|
|
|
|
|
Profit
after tax |
3089.700 |
5623.100 |
|
% to income
from operations |
17.1% |
16.4% |
NOTE
· During the quarter, the company posted a growth of about 10% in income from operations. Operating margins and profits after tax have increased by about 20% and 18% respectively on a year-on-year basis. During the quarter, domestic sales grew by 12% and export sales grew by about 10%. Other operating income includes an amount of Rs. 140.000 Millions on account of gains from foreign exchange.
· Material cost for the quarter is lower by Rs. 370 .000 Millions mainly due to improved realizations, reduction in input costs of certain category of products and changes in product mix. In addition, there has been higher cost efficiencies due to increased utilization of Indore SEZ facilities. Consequently, operating margins and profits after tax have increased substantially by 2% and 1% respectively.
· Excise Duty on sales has increased by Rs. 170.000 Millions due to increase in duty rate by 1% and increase in dutiable clearances. The increase in staff cost (Rs. 500.000 Millions) is due to annual increments and increase in manpower. Other expenditure has increased mainly due to increase in factory expenditure, selling expenses and provision for doubtful debts. Tax for the current quarter has increased mainly due to expiry of tax benefits on EOUs.
FIXED ASSETS
·
·
·
Buildings and Flats
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
AS PER WEB DETAILS
HISTORY
Dr. Khwaja Abdul Hamied, the founder of Subject, was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life.
In college, he found Chemistry fascinating. He set sail for
Europe in 1924 and got admission in
In October 1927, during the long voyage from Europe to
CIPLA IS BORN
In 1935, he set up The Chemical, Industrial and Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Subject was registered as a public limited company with an authorised capital of Rs.0.600 million.
The search for suitable premises ended at 289,
Subject was officially opened on September 22, 1937 when the
first products were ready for the market. The Sunday Standard wrote: "The
birth of Subject which was launched into the world by Dr K A Hamied will be a
red letter day in the annals of Bombay Industries. The first city in
MAHATMA GANDHI VISITS CIPLA
July 4, 1939 was a red-letter day for Subject, when the
Father of the Nation, Mahatma Gandhi, honoured the factory with a visit. He was
"delighted to visit this Indian enterprise", he noted later. From the
time Cipla came to the aid of the nation gasping for essential medicines during
the Second World War, the company has been among the leaders in the
pharmaceutical industry in
On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was the last time the company ever recorded a deficit.
In 1942, Dr Hamied's blueprint for a technical industrial research institute was accepted by the government and led to the birth of the Council of Scientific and Industrial Research (CSIR), which is today the apex research body in the country.
In 1944, the company bought the premises at Bombay Central and decided to put up a "first class modern pharmaceutical works and laboratory." It was also decided to acquire land and buildings at Vikhroli. With severe import restrictions hampering production, the company decided to commence manufacturing the basic chemicals required for pharmaceuticals.
In 1946, Subject's product for hypertension, Serpinoid , was exported to the American Roland Corporation, to the tune of Rs.0800 million. Five years later, the company entered into an agreement with a Swiss firm for manufacturing foromycene.
Dr Yusuf Hamied, the founder's son, returned with a
doctorate in chemistry from
In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the manufacture of several steroids and hormones derived from diosgenin.
BUSINESS DESCRIPTION
Subject is a
pharmaceutical company. During the fiscal year ended March 31, 2011, the
Company introduced a number of new drugs and formulations, such as Entavir
(entecavir tablets), an antiviral for hepatitis B; Febucip (febuxostat
tablets), a drug for gout; Flosoft (fluorometholone acetate ophthalmic
suspension), a topical steroid for eye inflammation; Foracort (formoterol and
budesonide autohaler), an asthma controller therapy in a new easy-to-use breath
actuated inhaler; Furamist AZ (fluticasone furoate and azelastine hydrochloride
nasal spray), a nasal spray for allergic rhinitis, and Montair FX (montelukast
and fexofenadine tablets), an antiallergic combination for rhinitis. In April
2010, it commenced commercial production of pharmaceutical formulations at its
Special Economic Zone project at Indore, Madhya Pradesh. It includes facilities
for the manufacture of aerosols, liquid orals, pre-filled syringes, nasal
sprays, eye drops, tablets and capsules. For the fiscal year ended 31 March
2011, Cipla Limited's revenues increased 12% to RS63.97B. Net income decreased
11% to RS9.67B. Revenues reflect an increase in income from operations and
lower excise duty. Net income was partially offset by an increase in
consumption of raw materials, rise in employee costs, rise in other
expenditure, higher depreciation expenses and an increase in purchase of traded
goods.
BOARD OF DIRECTORS
Dr. Y. K. Hamied
Dr. Y. K. Hamied is Executive Chairman of the Board, Managing
Director of Company. Dr. Hamied is qualified and eminent chemist. Having
obtained a Doctorate in chemistry from Cambridge University, he has done
research work under Lord Todd FCS, a Nobel Laureate. He joined the Company at
the age of 24 years as an officer-in-charge of research and development in
1960. He was appointed its Managing Director in 1976 and became its Chairman in
1989. He is well-respected for his varied experience of 48 years not only in
India but also internationally. Dr. Y.K. Hamied has played the lead role in
formulating the Company’s strategy and has also been actively involved in
research and development. For his distinguished service and contributions to
the pharmaceutical industry, Dr. Y.K. Hamied was awarded the Padma Bhushan, one
of the highest civilian awards in India in the year 2005.
Mr. M. K. Hamied
Mr. M. K. Hamied serves as Joint Managing Director,
Executive Director of Company. Mr. Hamied has been working as a Whole-time
Director of the Company with effect from 15th December 1983. He was
redesignated as Joint Managing Director effective from 6th December 2000. He is
a science graduate from Bombay University. Mr. Hamied along with the other
Joint Managing Director of the Company is in charge of day-to-day management of
the Company with special focus on domestic pharmaceutical markets. He has
varied experience in all functions of the Company including production,
technical areas, quality management and general administration.
Mr. V. C. Kotwal
Mr. V. C. Kotwal is Independent Non-Executive Director of Company. He is a senior advocate of Bombay High Court. He joined the Board of Directors of the Company in 1989. He is a Science and Law graduate from Bombay University. He has been in the legal profession since 1961 and has been designated as Senior Advocate since 1983.
Dr. H. R. Manchanda
Dr. H. R. Manchanda serves as Independent Non-Executive Director of Company. He has done his M.B.B.S. from Mumbai University in the year 1951. He has also completed his F.R.C.S. from England and did his second F.R.C.S. from Edinburg. He is a consultant surgeon at Breach Candy Hospital since 1960. He is also on a panel of physicians for USA Visa work at Breach Candy Hospital. He joined the Board of Directors of the Company in 1983. He was the Professor of Surgery and Head of Surgery at J. J. Hospital and Grant Medical College during the period 1960-85. He has been a postgraduate examiner for Mumbai University and was a Board Member of Haffkine Institute. He has worked with top hospitals both in India and abroad.
Mr. Pankaj B. Patel
Mr. Pankaj B. Patel serves as Independent Non-Executive Director of Company. He is a science and law graduate from Bombay University. He is an eminent lawyer practising in the field of industrial relations for nearly 20 years.
Mr. S. Radhakrishnan
Mr. S. Radhakrishnan is Whole-time Director of company since
November 12, 2010. He is a qualified Chartered Accountant, has been with the
Company for over 26 years and has experience in financial, commercial, legal
and allied areas.
Mr. M. R. Raghavan
Mr. M. R. Raghavan is Independent Non-Executive Director of
Company. Mr. M.R. Raghavan is a top Chartered Accountant. He has done his
Bachelor of Science (Mathematics and Statistics) and is a Fellow member of the
Institute of Chartered Accountants of India. He joined the Board of Directors
of the Company in the year 2002. On the social front, he has significantly
contributed on child education since 1980 and is currently involved in
pioneering projects in rural areas.
Mr. Ramesh Shroff
Mr. Ramesh Shroff serves as Independent Non-Executive
Director of Company. He holds an LL.B Degree from Mumbai University and is a
well known solicitor by profession. He joined the Board of Directors of the
Company in the year 1987.
PRESS RELEASE
INDIAN
MARKETS QUIET AHEAD OF CREDIT POLICY
Indo-Asian News Service
24 January 2012
Mumbai, Jan. 24 -- Indian equities markets were ruling quiet in Tuesday morning trade as investors cautiously awaited the third quarterly review of the monetary policy by the Reserve Bank of India.
The majority view is that the central bank may keep a status quo on key interest rates.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 16,806.72 points, ruled at 16,805.74 points, 54.01 points or 0.32 percent up from its previous close at 16,751.73 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also nudged up and was trading at 5,058.8 points -- up 0.25 percent or 12.55 points from its previous close.
The RBI while releasing the macroeconomic and monetary development document Monday had signalled it may not lower interest rates, saying any easing would depend on evolving growth-inflation dynamics.
The central bank had raised rates 13 times since the beginning of 2010 to combat runaway inflation. The repo rate or the interest the central bank levies on short-term borrowing by commercial banks stands at 8.5 percent
Broader markets were also ruling lacklustre with the BSE 500 index ruling 0.26 percent higher from its previous close. The BSE midcap index was ruling 0.13 percent up and the BSE smallcap index gained 0.34 percent.
Prominent gainers on the 30-scrip Sensex included RIL, L&T, HDFC and Cipla. Among losers were Sterlite, Hero MotoCorp, Maruti Suzuki and HDFC Bank.
The market breadth was positive with 946 stocks advancing, 756 on the decline and 91 remaining unchanged.
Asian markets were mixed. Major bourses like China and Hong Kong continued to be closed on account of holidays.
The Japanese Nikkei was sluggish at 8,787.14 points, up 0.24 percent from its previous close.
MARKET
CAUTIOUS AHEAD OF CREDIT POLICY MEET, NIFTY ENDS FLAT
Press Trust of India
23 January 2012
Mumbai, January 23, 2012 (PTI) -- Trading sentiment was in a toned down mode due to investors' cautiousness ahead of tomorrow's RBI's policy meet, as the benchmark CNX Nifty ending on a flat note at National Stock Exchange (NSE) here today.
The 50-share Nifty traded between 5,059.55 and 5,021.35 before closing at 5,046.25, a mere 2.35 point fall, over its previous close.
Trading commenced on a sluggish note reacting to heavy- weight Reliance Industries' disappointing third quarter performance, which came after market hours on late Friday amid lack of cues from Asian peers as most of them were closed for the Chinese New Year.
The market recovered soon after the initial volatility led by banking, FMCG and technology stocks, but traded mostly range-bound throughout the session as continued selling in frontlines, metal and auto counters kept the rise under check.
Though, the key-index touched fresh intra-day high in mid afternoon trade after better-than expected earning numbers from L and T and Maruti triggering some fresh buying in infra and auto space, it failed to maintain the momentum at higher levels due to selling pressure and concluded the session on a flat note.
Oil and Energy index suffered the most following Reliance Industries nearly 3 per cent fall, followed by metal and pharma.
FMCG, technology, banking and auto attracted some buying.
"Investors are hopeful for a rate-cut as well as easing liquidity measures in the system to prop-up growth on tomorrow's crucial RBI's third Quarter Monetary Policy review," traders said.
Sterlite Industries, Hindalco, Hero Motocop, Kotak Bank, Coal India, BPCL, Reliance, Reliance Infra, Tata Steel and HDFC Bank were the top percentage wise losers from the Nifty.
However, Maruti, BHEL, DLF, Bharti Airtel, ITC, Grasim, ICICI Bank, PNB, Cipla and Rpower are among gainers.
Turnover in cash segment fell sharply to Rs 101550.800 Millions from Rs 136943.900 Millions on Friday. A total of 6,29.056 Millions shares changed hands in 53,54,527 trades. The market capitalisation stood at Rs 57643750.000 Millions. PTI EDM PAK VKV HKS 01231857
CIPLA
LIMITED FILES PATENT APPLICATION FOR RIFAXIMIN COMPLEXES
Indian Patent News
24 January 2012
New Delhi, Jan. 24 -- India based Cipla Limited filed patent application for rifaximin complexes. The inventors are Ghagare Maruti Ganpati, Saroj Sunilkumar Parasnath, Rao Dharmaraj Ramachandra and Kankan Rajendra Narayanrao.
Cipla Ltd filed the patent application on July 4, 2011. The patent application number is 1383/MUMNP/2011 A. The international classification numbers are A61K9/20, A61K47/48 and A61K31/44.
According to the Controller General of Patents, Designs and Trade Marks, "There is provided a complex comprising rifaximin and a complexing agent, wherein the complexing agent is a polyvinyl pyrrolidone (PVP) or a cyclodextrin. There is also provided a process for preparing the complex, a pharmaceutical composition including the complex and therapeutic uses of the complex."
About the Company
Cipla Limited (BSE: 500087, NSE: CIPLA) is a Indian pharmaceutical company, manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries. Founded by Khwaja Abdul Hamied as The Chemical, Industrial and Pharmaceutical Laboratories in 1935, Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions, and its products are distributed in more than 180 countries worldwide.
CIPLA
LIMITED FILES PATENT APPLICATION FOR TIOTROPIUM BROMIDE HAVING A LOW DEGREE OF
CRYSTALLINITY
Indian Patent News
18 January 2012
New Delhi, Jan. 18 -- India based Cipla Limited filed patent application for tiotropium bromide having a low degree of crystallinity. The inventors are Kankan Rajendra Narayanrao, Rao Dharmaraj Ramachandra and Ghagare Maruti.
Cipla Limited filed the patent application on June 2, 2011. The patent application number is 1134/MUMNP/2011 A. The international classification number is C07D491/08.
According to the Controller General of Patents, Designs and Trade Marks, "The present invention provides tiotropium bromide having a low degree of crystallinity. The present invention also provides a complex of tiotropium bromide and polyvinylpyrrolidone, processes for preparing it and pharmaceutical formulations including it."
About the Company
Cipla Limited (BSE: 500087, NSE: CIPLA) is a Indian pharmaceutical company, manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries. Founded by Khwaja Abdul Hamied as The Chemical, Industrial and Pharmaceutical Laboratories in 1935, Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions, and its products are distributed in more than 180 countries worldwide.
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 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.49.13 |
|
|
1 |
Rs.77.85 |
|
Euro |
1 |
Rs.64.75 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
77 |
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.