MIRA
INFORM REPORT
|
Report Date : |
14.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
MOREPEN LABORATORIES LIMITED |
|
|
|
|
Registered
Office : |
Village Morepen, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
01.12.1984 |
|
|
|
|
Com. Reg. No.: |
06-006028 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.2096.107
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24231HP1984PLC006028 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PTLM11889D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM1083B |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Loratadine, Sultamicillin Tosylate and Montelukast. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 15000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company in under severe pressure. There appears huge accumulated
losses recorded by the company. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Village Morepen, Nalagarh Road, Near Baddi, District Solan-173205,
Himachal Pradesh, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Corporate Office : |
409, Antriksh Bhawan, 22 Kasturba Gandhi Marg, New Delhi-110001, India
|
|
Tel. No.: |
91-11-23324443/23712025 |
|
Fax No.: |
91-11-23722422 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Located at Masulkhanna, Himachal Pradesh, India |
|
Tel. No.: |
91-1792-233284 |
|
Fax No.: |
91-1792-232606 |
|
|
|
|
Factory 2 : |
Located at Baddi, Himachal Pradesh, India |
|
Tel. No.: |
91-1795-246408/03 |
|
Fax No.: |
91-1795-244591 |
|
|
|
|
USA Office : |
666, Plainsboro Road, Suite 222, Plainsboro, New Jersey-08536 |
|
Tel. No.: |
609 716 6300 |
|
Fax No.: |
609 716 6301 |
|
E-Mail : |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Sushil Suri |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Dr. Arun Kumar Sinha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Joshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bhupender Raj Wadhwa |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sukhcharan Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sushil Suri |
|
Designation : |
Chief Executive Officer [API Business] |
|
|
|
|
Name : |
Mr. Varun Suri |
|
Designation : |
Chief Executive Officer [Formulations, Medipath and OTC Business] |
|
|
|
|
Name : |
Mr. Ajay Sharma |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Vijay Gaind |
|
Designation : |
Head [API Manufacturing] |
|
|
|
|
Name : |
Mr. M.K. Sharma |
|
Designation : |
Head [Quality Control] |
|
|
|
|
Name : |
Dr. V.M. Kaul |
|
Designation : |
Head [API Sourcing] |
|
|
|
|
Name : |
Mrs. Amita Sharma |
|
Designation : |
Head [API Production, Planning and Control] |
|
|
|
|
Name : |
Mr. Shantunu Tuli |
|
Designation : |
Sales Head [Home Health Business] |
|
|
|
|
Name : |
Dr. Ramona Chopra |
|
Designation : |
Sales Head [Diagnostics Business]
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
41,241,750 |
9.17 |
|
|
114,129,838 |
25.37 |
|
|
155,371,588 |
34.54 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
155,371,588 |
34.54 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
6,617,940 |
1.47 |
|
|
22,484,570 |
5.00 |
|
|
58,530,000 |
13.01 |
|
|
87,632,510 |
19.48 |
|
|
|
|
|
|
20,696,147 |
4.60 |
|
|
|
|
|
|
164,264,259 |
36.52 |
|
|
15,050,699 |
3.35 |
|
|
6,811,000 |
1.51 |
|
|
4,533,680 |
1.01 |
|
|
2,006,190 |
0.45 |
|
|
271,130 |
0.06 |
|
|
206,822,105 |
45.98 |
|
Total Public shareholding (B) |
294,454,615 |
65.46 |
|
Total (A)+(B) |
449,826,203 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
449,826,203 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Loratadine, Sultamicillin Tosylate and Montelukast. |
||||||||
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|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Drugs & Drug Intermediates |
MT |
884.000 |
339.643 |
|
Formulations |
-- |
-- |
4439.59 |
|
Tablets/Capsules |
Nos./Lacs |
37100.00 |
-- |
|
Oral Liquids |
MT |
375.000 |
-- |
|
Powders |
MT |
500.000 |
-- |
GENERAL INFORMATION
|
Bankers : |
Not Available |
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Facilities : |
NOTE: Secured Loans 2.1 Non
Convertible Debentures of Rs. 56.500 millions (Previous Year Rs. 56.500
millions) are privately placed and comprise of: 100,000 - 15% NCDs (Rs.33.33
paid up); 100,000- 18.5% NCDs (Rs.66.00 paid up); 2,00,000 - 17 % NCDs
(Rs.66.50 paid up) ; 200,000 19% NCDs (Rs. 33.33 paid up); 400,000- 15.5%
NCDs (Rs. 66.50 paid up). All these debentures along with interest,
remuneration payable to trustees and other money due in respect thereof are
secured by a first charge created jointly along with banks / financial
institutions providing term and corporate rupee loans except borrowings
stated in Para 2.5 below. 2.2 Interest
bearing portion of restructured debts of Rs. 626.456 Millions (Previous Year
Rs. 632.562 Millions) due to institutions/banks is payable starting from
financial year 2010-11 and shall be fully payable by 31st March, 2018. 2.3 Interest
free portion of restructured debts of Rs. 555.838 Millions (Previous Year Rs
555.976 Millions) due to institutions/banks shall be due for payment in the
financial years starting 2016-17 and shall be fully payable by 31st
March 2018. The debt will be interest bearing from the financial year
2015-16. 2.4
Non-convertible debentures/ Term loans / restructured debts, are secured by a
first charge created by way of joint equitable mortgage on pari - passu basis
on all immovable and movable properties both present and future except
borrowings stated in Para 2.5 below. 2.5 Other loans
of Rs. 3.621 millions (Previous year Rs. 2.840 millions) are secured by
hypothecation of specific assets purchased under the hire purchase scheme. Unsecured Loans Short term loans from others represent loans and inter corporate
deposits from friends, relatives and others. |
|
|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Kamal Mahajan and Company Chartered Accountants |
|
Address : |
SCO 61, Madhya Marg, Sector 26, Chandigarh, India |
|
|
|
|
Associates/Subsidiaries : |
·
MorepenMax Inc. ·
Morepen Inc. ·
Total Care Limited ·
Doctor Morepen Limited ·
Morepen Biotech Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
450000000 |
Equity Shares |
Rs.2/- each |
Rs.900.000 Millions |
|
12000000 |
Preferences Shares |
Rs.100/- each |
Rs.1200.000 Millions |
|
|
Total |
|
Rs.2100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
449826203 |
Equity Shares |
Rs.2/- each |
Rs.899.653
Millions |
|
9735201 |
0.01% Optionally Convertible Preference Share |
Rs.100/- each |
Rs.973.520
Millions |
|
1530000 |
0.01% Redeemable Preference Shares |
Rs.100/- each |
Rs.153.000
Millions |
|
200000 |
0.01% Redeemable Preference Shares |
Rs.100/- each |
Rs.20.000
Millions |
|
500000 |
9.75% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000
Millions |
|
|
Less: Call in arrears |
|
Rs.0.066
Million |
|
|
Total |
|
Rs.2096.107 Millions |
NOTE:
1,19,65,201
Preference Shares of Rs. 100/- each consist of –
·
97,35,201, 0.01% Optionally Convertible Preference
Shares, amounting to Rs. 973.520 Millions are due for redemption/conversion in
financial year 2014-15.
·
15,30,000, 0.01% Preference Shares amounting
Rs.153.000 Millions are redeemable in two equal installments in the financial
years 2016-17 and 2017-18.
·
2,00,000, 0.01% Preference Shares amounting Rs.
20.000 Millions, are due for redemption in the financial year 2011-12.
·
5,00,000, 9.75% Cumulative redeemable Preference
shares amounting to Rs. 50.000 Millions have already become due for redemption.
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 |
2096.107 |
2096.107 |
1938.166 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2427.549 |
2427.549 |
1574.240 |
|
|
4] (Accumulated Losses) |
(751.093) |
(321.264) |
(339.601) |
|
|
NETWORTH |
3772.563 |
4202.392 |
3172.805 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1268.088 |
1284.517 |
1368.759 |
|
|
2] Unsecured Loans |
152.370 |
112.878 |
1435.780 |
|
|
TOTAL BORROWING |
1420.458 |
1397.395 |
2804.539 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5193.021 |
5599.787 |
5977.344 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4165.824 |
4583.887 |
4992.989 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1219.092 |
1219.092 |
1219.092 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
336.050
|
304.657 |
213.628 |
|
|
Sundry Debtors |
277.344
|
205.679 |
185.246 |
|
|
Cash & Bank Balances |
23.361
|
8.239 |
42.991 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
124.187
|
126.142 |
142.949 |
|
Total
Current Assets |
760.942
|
644.717 |
584.814 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
829.002
|
716.011 |
673.007 |
|
|
Other Current Liabilities |
97.844
|
115.502 |
132.178 |
|
|
Provisions |
38.839
|
30.634 |
28.304 |
|
Total
Current Liabilities |
965.685
|
862.147 |
833.489 |
|
|
Net Current Assets |
(204.743)
|
(217.430) |
(248.675) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
12.848 |
14.238 |
13.938 |
|
|
|
|
|
|
|
|
TOTAL |
5193.021 |
5599.787 |
5977.344 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2163.063 |
1958.336 |
1641.035 |
|
|
|
Other Income |
10.448 |
3.280 |
11.465 |
|
|
|
TOTAL (A) |
2173.511 |
1961.616 |
1652.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Expenses |
1499.253 |
1335.019 |
1173.466 |
|
|
|
Personnel Expenses |
272.835 |
216.243 |
185.800 |
|
|
|
Manufacturing and Other Expenses |
352.551 |
324.875 |
282.937 |
|
|
|
Extraordinary Items |
0.000 |
(338.577) |
(80.434) |
|
|
|
Accretion / (Decretion) to Stocks |
(33.976) |
(50.484) |
(18.898) |
|
|
|
TOTAL (B) |
2090.663 |
1487.076 |
1542.871 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
82.848 |
474.540 |
109.629 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
62.312 |
35.659 |
20.112 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
20.536 |
438.881 |
89.517 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
457.817 |
456.286 |
455.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(437.281) |
(17.405) |
(365.626) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(7.452) |
0.000 |
2.806 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(429.829) |
(17.405) |
(368.432) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(321.264) |
(339.601) |
(4421.025) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
0.000 |
(35.742) |
(0.429) |
|
|
|
Capital Reserve |
0.000 |
0.000 |
(4421.025) |
|
|
|
Securities Premium Account |
0.000 |
0.000 |
(28.402) |
|
|
BALANCE CARRIED
TO THE B/S |
(751.093) |
(321.264) |
(339.601) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
502.775 |
409.330 |
NA |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
259.793 |
224.020 |
|
|
|
|
Finished Goods |
86.138 |
96.842 |
|
|
|
|
Capital Goods |
1.592 |
3.211 |
|
|
|
TOTAL IMPORTS |
347.523 |
324.073 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.96) |
(0.04) |
(1.17) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
602.290 |
613.100 |
711.000 |
|
Total Expenditure |
597.220 |
562.900 |
666.100 |
|
PBIDT (Excl OI) |
5.070 |
50.200 |
44.900 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
5.070 |
50.200 |
44.900 |
|
Interest |
22.310 |
21.000 |
21.600 |
|
PBDT |
(17.240) |
29.200 |
23.300 |
|
Depreciation |
114.110 |
121.600 |
113.900 |
|
Profit Before Tax |
(131.350) |
(92.400) |
(90.600) |
|
Profit After Tax |
(131.350) |
(92.400) |
(90.600) |
|
Net Profit |
(131.350) |
(92.400) |
(90.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(19.77)
|
(0.89) |
(22.30) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(20.22)
|
(0.89) |
(22.28) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.88)
|
(0.33) |
(6.55) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.12)
|
0.00 |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.63
|
0.54 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.79
|
0.75 |
0.70 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
5)
Type of Business |
Yes |
|
6)
Line of Business |
Yes |
|
7)
Promoter's background |
Yes
|
|
8)
No. of employees |
No
|
|
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) |
-- |
|
21)
Market information |
-- |
|
22)
Litigations that the firm / promoter involved in |
-- |
|
23)
Banking Details |
No
|
|
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 |
Yes
|
MANAGEMENT OVERVIEW
The current year
revenues at Rs. 2151.000 millions are up by 10% over the last year. The company
is steadily improving upon its sales performance year after year. During the
year the company's Sales and operating income has gone up to Rs. 2110.000
Millions against Rs. 1958.300 Millions in the previous year. The cost reduction
and process improvement efforts are on to improve upon the bottom line.
Increased product manufacturing cost vis-ŕ-vis sales price realization both for
domestic and export markets and change in product mix have affected the
bottom-line of the company. Current year operational surplus has come down to
RS. 94.000 Millions from Rs. 136.000 Millions in the last year, on account of
the margins squeeze. Apart from reduced operating surplus increased interest
burden by Rs. 24.700 Millions in the current year, has also contributed to
reduced cash surplus available with company to Rs. 33.600 Millions from Rs.
100.300 Millions in the last year. The management is focusing on the continuous
improvement in business dynamics so as to have a positive impact both on top
line and bottom line. It is putting in its best of the efforts to help the
company to move forward on the profitable growth path.
OPERATIONS
During the year
the company has recorded a growth of 10% in its annual sales revenues as
compared to previous year. It could be made possible by adopting focused
approach for growth of business, across all segments. The operating surplus
during the year was at Rs. 33.600 Millions against Rs. 136.000 Millions in the
last year on account of tight operating margins and higher interest pay outs.
API business
recorded a growth of 7% in its annual sales revenues on the support of
increased API business with domestic and un-regulated markets. Loratadine grew
up by 18% over the previous year due to growth of its intermediates business
and supplies to un-regulated markets. Atorvastatin with annual sales revenue at
Rs. 62.000 Millions grew up by more than two times over the last year sales
revenue. Current year Montelukast business was at Rs. 225.200 Millions against
Rs. 245.100 Millions in the previous year on account of stronger rupee, the
export realizations were also adversely affected.
Formulation
business was able to maintain sales revenues at previous year's level. The
company reorganized its distribution channels and product mix was also
revamped.
Medipath business
at Rs. 311.300 Millions, has recorded a growth of 31% over the last year on
account of better market penetration and focus on corporate customers. Home
Health and clinical Diagnostics business segment of Medipath business grew up
by 41% & 12% respectively, whereas Blood Banking business was down by 7%.
Current year revenues of Pharmaceutical Contract Manufacturing (PCM) business
at Rs. 364.700 Millions have shown a growth of 7% over the previous year.
FINANCES
The company
continues to service its outstanding debt obligations, as per CDR (Corporate
Debt Restructuring) scheme and also as per terms of individual settlement with
banks and financial institutions. Absence of institutional working capital
support led to slower business growth during the year apart from squeezing the
operating margins of the company.
REPORT ON BUSINESS PERFORMANCE
ACTIVE PHARMACEUTICAL INGREDIENT (API)
Current year
Loratadine API and intermediates business at Rs. 769.600 Millions recorded a
growth of 18% over the last year. 'Loratadine' API sales was at Rs. 655.800
Millions against Rs. 592.100 Millions of the previous year. 'Loratadine'
exports to the regulated markets at Rs. 585.600 Millions showed a marginal
improvement over last year of Rs. 579.800 Millions. During the year, the
company has also started supplying advance intermediate of Loratadine to
Japanese market. Free markets and intermediate business at Rs. 214.000 Millions
is more than two times from the previous year's levels. Montelukast sodium, an
anti-asthmatic drug, recorded annual revenue of Rs. 225.200 Millions, against
Rs. 243.700 Millions of the previous year. During the current year USP as well
as IP grade API was produced to meet the requirements of various customers.
Atorvastatin has recorded annual sales revenue of Rs. 62.000 Millions as
against Rs. 17.600 Millions in the last year, an increase by 252%. The company
has developed a cost effective process for its key intermediates which has also
led to improved quality of Atorvastatin intermediates and API. The company has
produced small quantities of Linezolid (API) and its intermediates and
commercial quantities of key intermediate of Carvedilol were also produced for
export markets. New products and their intermediates have added more than Rs.
69.100 Millions during the year. The company has developed a non-infringing
process for 'Fexofenadine' which have yielded highly pure 'Fexofenadine' API
& its key intermediates. Further the company has filed a process patent for
the same. Morepen has successfully developed manufacturing process for highly
pure Rosuvastatin Calcium. The product has been commercialized in the plant.
USFDA approval for DesLoratadine API is expected very soon. It will give the
company greater penetration in highly regulated US API markets.
MEDIPATH
Current year sales
revenue of Rs. 311.300 Millions has shown a positive growth of 31% over last year
revenues of Rs. 2368. The primary component of marked improvement in top line
was the 'Home- Health' segment. 'Home Health' with current year sales of Rs.
242.200 Millions has recorded a growth of 41% on the back of strong sales of
Nebulisers, Thermometers, BP monitors, Weighing Scales and other equipments.
'Clinical Diagnostics' business has recorded sales of Rs. 53.400 Millions, an
increase of 12% over the last year. 'Blood Banking' business with annual sales
of Rs. 15.700 Millions has shown a de- growth of 8%. Sales of Aids &
Hepatitis products continue to be hampered on account of regulatory issues.
Tight cash flow situation continues to affect the timely material availability,
thereby hampering the business growth. Margins also improved during the year on
account of stronger rupee against USD.
With the
introduction of new Haemoglobin testing machines from Orsense, Israel, &
growth in other product categories like Malaria , Pregnancy testing product,
Urine Strips , Accuvein etc. Clinical Diagnostics business has gone up by 12%.
It has received a good response from market resulting in its higher revenues.
BRANDED
PRESCRIPTION DRUGS
The domestic
formulation business at Rs. 85.200 Millions has remained at the previous year
level. Antibiotics has grown up by 11% during the year, 'Gastrointestinal' and
pain management has shown a de- growth during the year. Share of Antibiotics
has gone up to 48% from 43% in the last year, whereas share of Gastrointestinal
has come down to 31% from 33% in the last year.
PHARMACEUTICAL
CONTRACT MANUFACTURING (PCM)
The company has
expanded its activities in the field of third party manufacturing for
formulations and API intermediates. The company was able to maintain its client
base and has added new customers. The third party formulation manufacturing
business has recorded an increase of 7% over the last year.
SUBSIDIARIES
Dr. Morepen Limited
The company during
the current year has recorded sale revenue of Rs. 154.300 Millions against Rs.
201.800 Millions in the last year. During the current year, the company has re-
organized the distribution channels with a view to expand the reach of its
'OTC' products throughout the country. The expansion of existing markets and
coverage of previously un-covered markets with the help of increased sales
force has the desired impact in terms of creation of fresh demand. The company
re-worked its OTC distribution and marketing model. During the year markets
were cleansed and reorganized, saleable stocks were redistributed and revamped.
During the year, the company did a major turnaround in its product distribution
strategy wherein goods, which in earlier years were being sold on credit,
during the current year, were sold against receipt of money in advance. Strong
super distributor and trade policies have enabled the company to safe guard its
interests and also drive the business forward on the profitable growth path.
The company has reported a cash deficit of Rs. 18.093 Millions for the current
year against deficit of Rs. 19.262 Millions in the previous year. The company
is expanding marketing and media activities, with a view to enhance product
visibility and product placement. Marketing activities and product development
were focused during the year with a view to create fresh demand. The company is
hopeful of the better financial performance in the coming years.
Total Care Limited
The directors
hereby report that business of the company has recorded an income of Rs. 4.951
Millions against Rs. 15.891 Millions in the last year. The company has been
able to bring down the cash losses to Rs. 0.608 Millions against Rs. 1.901
Millions in the previous year. The company expects improved cash flow in the
next year and is working towards for turnaround of its business.
Morepen Inc.
This company is
their marketing and distribution interface in USA for various OTC and other
products. The Current year revenue was at Rs. 7.385 Millions as against Rs.
8.760 Millions in the previous year.
Morepen Max Inc.
This company is in
a dormant state in the absence of any business opportunity and Board of
Directors consider it expedient to dispose off the investment in the company at
an appropriate time.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
GLOBAL
PHARMACEUTICAL SCENARIO
The value of the
global pharmaceutical market is expected to grow 5-7% in 2011, to $880 billion,
compared with a 4-5% growth in last year. It is expected to grow at an average
growth rate of around 6.5% during 2011-2013. During past 2 years, the pharma
market had experienced a slump however it is expected to reach $1.1 trillion by
2015. In 2011, products with sales of more than $30 billion are expected to
face the prospect of generic competition in the major developed markets. The
future growth will be driven by low cost factor, increasing prevalence of
diseases worldwide, and rising per capita income of consumers. Sales of generic
drugs will emerge as the most prominent segment of the pharma market,
indicating large opportunities for generics manufacturers to tap. The share in
global pharmaceutical spending for US and top five European national markets
will decline from 61% in 2005 to 43% in 2015. The share of high-growth emerging
markets, led by Brazil, Russia, India, China and others, will move up to 28% by
2015, up from only 12% in 2005. These emerging countries are forecasted to grow
at a rate of 15- 17% in 2011, to $170-180 billion. Gains in pharmaceutical
spending in the emerging markets will be driven by overall strong economic
growth and governments' commitment to expand healthcare access. Many of these
markets are benefiting from greater government spending on healthcare and
broader public and private healthcare funding, which is driving greater demand
and access to medicines. Of the total increase in spending, approximately 20%
will come from branded products. The next five years also will see an
accelerating shift in spending toward generic drugs, whose share of
pharmaceutical spending will rise to 39% in 2015, up from 20% in 2005. The
level of patient expiries will continue to have a strong effect on the global
pharmaceutical market. Spending for branded products in developed markets will
remain at the same level in 2015 as it was in 2010. Globally, market share for
branded medicines, which fell from 70% in 2005 to 64% in 2010, is expected to
decline further to 53% by 2015. Pharma industry is growing at a rapid rate in
emerging countries, such as India, China, Brazil, Russia, among others, while a
slowdown in the growth has been encountered in the developed markets.
OUTLOOK
Apart from risks
faced by the pharmaceuticals industry at large, the global Generics business
faces risk associated with regulatory issues and product liability, especially
in developed markets. Further, Innovator pharmaceutical companies also
continuously work on developing new ways to hold on their patented drugs to
delay entry of generic versions. With more drugs going off-patent, the Generics
space is becoming more competitive even in the Emerging countries. Manufacture
of pharmaceuticals is strictly regulated and controlled by authorities across
the world. Further the regulators across the world have become stricter, in
respect of compliance to requirements. In the Indian pharmaceuticals market,
price of certain pharmaceutical products is regulated by the Drug Pricing
Policy through the Drug Pricing Control Order, 1995 (DPCO). Further API
business is largely export oriented, whereas Medipath business involves imports
for most of its inputs. The sharp movements in foreign exchange rates impact
the Company's financial results. The above-mentioned issues are being provided
as disclosure in relation to the company's business by explaining the
prevailing business environment.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Bank Guarantees |
14.491 |
2.852 |
|
Accumulated dividend on preference shares |
0.440 |
0.326 |
|
Claim against the Company not acknowledged as debt |
34.284 |
33.851 |
|
Total |
49.215 |
37.029 |
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
WEBSITE DETAILS:
PROFILE:
Some things will always remain unfettered. Like
sunshine and air, like suffering and joy, like sharing and caring. Some things
will never recognize the confines of space and time. Like human endeavour and
enterprise, like the desire to touch life. At Subject, they are taking their
expertise and experience in Wellness to new countries and new people with an
increasing focus on global exports. And in doing so, their spirit of caring is
crossing boundaries.
Subject state-of-art manufacturing facility in the picturesque environs
of Baddi comprises a scientifically integrated complex of 10 plants, each with
a specific product profile. The company’s extensive R&D facilities and
factories are manned by a dedicated team of professionals who ensure stringent
quality standards. Today Morepen is exporting products to several countries
round the global.
The first Subject manufacturing plant was set up on the foothills of the
Himalayas in the idyllic surroundings of Parwanoo. The large and spread out
facility is USFDA approved for manufacture of Loratadine, an anti-allergy drug
– internationally known as Claritin. Today, its benchmark standards make it the
perfect setting for producing advances molecules.
Busy lifestyles and increasing work pressures in everyday urban life
have made it imperative to make self-monitoring diagnostic equipment a part of
every household. Subject has tied up with international majors in this category
and has brought to India a range of products that help people monitor their
health on a day-today basis and thereby seek remedies well in time.
The brand name of Dr. Morepen has a front-ranking presence in the
Wellness category. Its spectrum of popular OTC products, amongst which Burnol,
Lemolate, Sat Isabgol and many more are undisputably household names, have
spread relief and cheer in many homes and lives.
|
Unaudited
Financial Results For the Quarter ended 31st December, 2011 |
||||||||
|
(Rs.
in Millions) |
||||||||
|
S.No. |
Particulars |
Quarter
ended |
9
Months Ended |
Year
ended |
||||
|
31.12.2011 |
30.09.2011 |
31.12.2010 |
31.12.2011 |
31.12.2010 |
31.03.2011 |
|||
|
(Unaudited) |
(Unaudited) |
(Audited) |
||||||
|
1 |
Gross Sales/Income from
Operations |
723.600 |
618.100 |
549.600 |
1950.700 |
1621.600 |
2179.400 |
|
|
|
Less: Excise Duty |
|
13.100 |
5.300 |
6.500 |
25.400 |
20.200 |
31.100 |
|
(a) |
Net Sales/Income from
Operations |
710.500 |
612.800 |
543.000 |
1925.300 |
1601.400 |
2148.300 |
|
|
(b) |
Other Operating Income |
0.600 |
0.300 |
0.100 |
1.100 |
0.500 |
25.200 |
|
|
|
Total Net Operating Income
(1a+1b) |
711.000 |
613.100 |
543.100 |
1926.400 |
1601.900 |
2173.500 |
|
|
2 |
Expenditure |
|
|
|
|
|
|
|
|
|
a) (Increase) / Decrease
in Stock-in-Trade & Work in Progress |
(12.300) |
5.100 |
14.400 |
(20.900) |
(25.900) |
(34.000) |
|
|
|
b) Consumption of Raw
Materials |
348.300 |
260.700 |
210.600 |
976.300 |
737.100 |
1049.800 |
|
|
|
c) Purchase of traded
goods |
138.200 |
116.500 |
141.200 |
327.200 |
361.300 |
449.400 |
|
|
|
d) Employee Cost |
82.700 |
80.800 |
68.300 |
240.000 |
199.600 |
272.800 |
|
|
|
e) Depreciation and
Amortisation |
113.900 |
121.600 |
116.300 |
349.600 |
345.800 |
457.800 |
|
|
|
f) Other Expenditure |
109.100 |
99.800 |
93.400 |
303.300 |
267.600 |
352.600 |
|
|
|
Total Expenditure |
|
780.000 |
684.500 |
644.300 |
2175.500 |
1885.400 |
2548.500 |
|
3 |
Profit / (Loss) from
Operations before Other Income, Interest and Exceptional Items (1-2) |
(68.900) |
(71.500) |
(101.100) |
(249.100) |
(283.500) |
(375.000) |
|
|
4 |
Other Income |
|
- |
- |
- |
- |
- |
- |
|
5 |
Profit / (Loss) before
Interest and Exceptional Items (3+4) |
(689) |
(71.500) |
(101.100) |
(249.100) |
(283.500) |
(375.000) |
|
|
6 |
Interest |
|
21.600 |
21.000 |
14.300 |
64.900 |
45.800 |
62.300 |
|
7 |
Profit / (Loss) after Interest
but before Exceptional Items (5-6) |
(90.600) |
(92.400) |
(115.400) |
(314.000) |
(329.300) |
(437.300) |
|
|
8 |
Exceptional Items -
Income/(Expense) |
- |
- |
- |
- |
- |
- |
|
|
9 |
Profit / (Loss) from Ordinary
Activities before Tax (7-8) |
(90.600) |
(92.400) |
(115.400) |
(314.000) |
(329.300) |
(437.300) |
|
|
10 |
Tax Expense |
|
|
|
|
|
|
|
|
|
- Provision for Earlier Year |
- |
- |
- |
- |
- |
(7.500) |
|
|
11 |
Profit / (Loss) from Ordinary Activities
after Tax (9-10) |
(90.600) |
(92.400) |
(115.400) |
(314.000) |
(329.300) |
(429.800) |
|
|
12 |
Extraordinary
Items-Income/(Expense) |
- |
- |
- |
- |
- |
- |
|
|
13 |
Net Profit /(Loss) for the
period (11-12) |
(90.600) |
(92.400) |
(115.400) |
(314.000) |
(329.300) |
(429.800) |
|
|
14 |
Paid-up Equity Share Capital
of Face Value of Rs.2/- each |
899.600 |
899.600 |
899.600 |
899.600 |
899.600 |
899.600 |
|
|
15 |
Reserves excluding Revaluation
reserves |
- |
- |
- |
- |
- |
1676.500 |
|
|
16 |
a) Earning Per Share before
Extraordinary Items (in Rs.) |
|
|
|
|
|
|
|
|
|
- Basic & Diluted |
(0.20) |
(0.21) |
(0.26) |
(0.70) |
(0.73) |
(0.96) |
|
|
|
b) Earning Per Share after
Extraordinary Items (in Rs.) |
|
|
|
|
|
|
|
|
|
- Basic & Diluted |
(0.20) |
(0.21) |
(0.26) |
(0.70) |
(0.73) |
(0.96) |
|
|
17 |
Public Shareholding |
|
|
|
|
|
|
|
|
|
- Number of Shares |
294454615 |
294454615 |
294454615 |
294454615 |
294454615 |
294454615 |
|
|
|
- Percentage of shareholding |
65.46% |
65.46% |
65.46% |
65.46% |
65.46% |
65.46% |
|
|
18 |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
|
|
|
|
- Number of Shares |
610000 |
610000 |
610000 |
610000 |
610000 |
610000 |
|
|
|
- Percentage of shares (as a %
of the total shareholding of promoter and promoter group) |
0.39% |
0.39% |
0.39% |
0.39% |
0.39% |
0.39% |
|
|
|
- Percentage of shares (as a %
of the total share capital of the company) |
0.14% |
0.14% |
0.14% |
0.14% |
0.14% |
0.14% |
|
|
|
b) Non-encumbered |
|
|
|
|
|
|
|
|
|
- Number of Shares |
154761588 |
154761588 |
154761588 |
154761588 |
154761588 |
154761588 |
|
|
|
- Percentage of shares (as a %
of the total shareholding of promoter and promoter group) |
99.61% |
99.61% |
99.61% |
99.61% |
99.61% |
99.61% |
|
|
|
- Percentage of shares (as a %
of the total share capital of the company) |
34.40% |
34.40% |
34.40% |
34.40% |
34.40% |
34.40% |
|
|
Notes: |
|
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.64 |
|
|
1 |
Rs.86.42 |
|
Euro |
1 |
Rs.69.28 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
NLM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.