MIRA
INFORM REPORT
|
Report Date : |
16.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
RPG LIFE SCIENCES LIMITED [w.e.f. 13.02.2008] |
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Formerly Known
As : |
RPG PHARMACEUTICALS LIMITED |
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Registered
Office : |
RPG House, 463, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.03.2007 |
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Com. Reg. No.: |
11-169354 |
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Capital Investment
/ Paid-up Capital : |
Rs.132.282
Millions |
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|
CIN No.: [Company Identification
No.] |
L24232MH2007PLC169354 |
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|
Legal Form : |
It is a Public Limited Liability Company. The company's shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Pharmaceutical Products. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (47) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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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 : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030,
Maharashtra, India |
|
Tel. No.: |
91-22-24981650/51/66606375/76/77/78 |
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Fax No.: |
91-22-24970127 |
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E-Mail : |
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Factory 1 : |
BIOTECH Plot No. 2702/A, GIDC Industrial Estate, Ankleshwar-393002, District
Bharuch, Gujarat, India |
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Tel. No.: |
91-2646-652102/03/04/652074 |
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Fax No.: |
91-2646-250104 |
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|
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Factory 2 : |
FORMULATION Plot No. 3102/A, GIDC Estate, Ankleshwar-393002, District Bharuch,
Gujarat, India |
|
Tel. No.: |
91-2646-652062 to 652069 |
|
Fax No.: |
91-2646-250572 |
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|
Factory 3 : |
API 25, MIDC Land, Thane Belapur Road, Navi
Mumbai-400705, Maharashtra, India |
|
Tel. No.: |
91-22-67955555/5398/5399/6795/5400 |
|
Fax No.: |
91-22-27672646/27631052 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
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Name : |
Mr. Ajit Singh Chouhan |
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Designation : |
Managing Director |
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Name : |
Mr. C. L. Jain |
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Designation : |
Director |
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|
Name : |
Mr. Ajit Gulabchand |
|
Designation : |
Director |
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|
Name : |
Dr. Lalit S. Kanodia |
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Designation : |
Director |
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|
Name : |
Mr. Mahesh S. Gupta |
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Designation : |
Director |
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Name : |
Mr. Manoj K. Maheshwari |
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Designation : |
Director |
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Name : |
Mr. P. K. Mohapatra |
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Designation : |
Director |
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|
Name : |
Mr. Dilip Sen |
|
Designation : |
Director |
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Name : |
Mr. R. A. Shah |
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Designation : |
Alternate Director |
KEY EXECUTIVES
|
Name : |
Mr. Ankur Kumar |
|
Designation : |
Head - Legal and Company Secretary |
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|
Name : |
Mr. P. K. Pathak |
|
Designation : |
Chief Executive [Global Formulations] |
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|
Name : |
Mr. Ravi Soni |
|
Designation : |
Chief Executive [Global Generics, API and Biotech] |
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|
Name : |
Mr. Sachin Raole |
|
Designation : |
Chief Financial Officer |
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|
Name : |
Mr. Ratish Jha |
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Designation : |
General Manager [Human Resources] |
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Name : |
Mr. Uday R.
Bapat |
|
Designation : |
Chief Scientific Officer |
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|
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|
Name : |
Ms. Suchitra
Tiwari |
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Designation : |
Head [Regulatory Affairs and Quality] |
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Audit Committee: |
|
|
|
Mr. C. L. Jain Mr. Mahesh S. Gupta Mr. P. K. Mohapatra Mr. Ajit Singh Chouhan |
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 |
|
|
|
|
|
|
|
|
8,780,948 |
53.10 |
|
|
8,780,948 |
53.10 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
8,780,948 |
53.10 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,175 |
0.01 |
|
|
3,217 |
0.02 |
|
|
389,979 |
2.36 |
|
|
5,650 |
0.03 |
|
|
400,021 |
2.42 |
|
|
|
|
|
|
1,388,408 |
8.40 |
|
|
|
|
|
|
3,821,032 |
23.11 |
|
|
2,046,173 |
12.37 |
|
|
98,659 |
0.60 |
|
|
79 |
- |
|
|
98,580 |
0.60 |
|
|
7,354,272 |
44.48 |
|
Total Public shareholding (B) |
7,754,293 |
46.90 |
|
Total (A)+(B) |
16,535,241 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
16,535,241 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pharmaceutical Products. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Tablets (Million Nos.) |
1420 |
2750 |
2241 |
|
Liquids (Kilolitres) |
1287 |
6000 |
592 |
|
Injections – Ampoules (Thousands) |
1050 |
-- |
2309 |
|
Capsules (Million Nos.) |
86 |
312 |
17 |
|
Powder Pouches (Thousands) |
10000 |
12000 |
233 |
|
Ointments (Thousands) |
100 |
-- |
20 |
|
Ointments (Kilolitres) |
30 |
-- |
-- |
|
Bulk Drugs and Chemicals (Tonnes) |
231 |
71 |
27 |
|
|
|
|
|
|
Consumer
Products |
|
|
|
|
Tablets (Million Nos.) |
120 |
120 |
@ |
|
Powder Pouches (Thousands) |
8000 |
8000 |
-- |
@0.13 Million Nos.
NOTE:
(i) Production
includes manufacture of pharmaceutical preparations by other parties and of chemicals
for sale but excludes manufacture of pharmaceutical preparations for other
parties. Production of pharmaceutical preparations includes production of
physician samples.
(ii) The installed
capacities are as per the certificate given by the management of the company on
which the auditors have relied.
(iii) The licensed
capacity in respect of certain items has been converted into dosage / units to
make it comparable with installed capacity, production and stocks.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Union Bank of India ·
State Bank of India ·
Corporation Bank ·
Export-Import Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lovelock and Lewes Chartered Accountants |
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Solicitors: |
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|
Name : |
Crawford Bayley and Company |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18750000 |
Equity Shares |
Rs.8/- each |
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16535241 |
Equity Shares |
Rs.8/- each |
Rs.132.282
Millions |
NOTE:
OF THE ABOVE:
(a) 14,368,850
shares were allotted as fully paid-up pursuant to a Scheme of Arrangement
without payments being received in cash.
(b) 2,138,000 (Previous
year - 700,000) shares were issued on conversion of Share Warrants [During the
year 2008-2009, the company had raised amounts aggregating to Rs. 12.668
Millions by way of allotment of 2,138,000 share warrants on preferential basis
with an option to apply for one equity share of the face value of Rs. 8 each
for cash at a premium of Rs. 15.70 per share against each share warrant held,
to be exercised within a period not exceeding eighteen months from the date of
allotment in respect of the aforesaid share warrants. In accordance with the
terms of issue of the share warrants, the company had received Rs. 12.668
Millions being 25% of the price of warrants. Of the above warrants allotted,
700,000 warrants were converted during the previous year in to equity shares of
Rs. 8 each fully paid-up at a premium of Rs. 15.70 each. In accordance with the
terms of conversion, the company had received Rs. 12.442 Millions during the
previous year. During the year, the balance 1,438,000 warrants have been
converted in to equity shares of Rs. 8 each fully paid-up at a premium of Rs.
15.70 each. In accordance with the terms of conversion, the company has
received Rs. 25.561 Millions during the year. The above amounts received
aggregating to Rs. 50.671 Millions have been utilised towards repayment of term
loan of Rs. 7.670 Millions, payment of interest on term loan of Rs. 1.064
Millions and repayment of working capital loan of Rs. 41.937 Millions.].
(c) 28,391
(Previous year - Nil) shares were allotted under the Employee Stock Option Plan
[Pursuant to a special resolution passed by the Shareholders at the Annual
General Meeting held on 27th August, 2008, the company adopted the Employee
Stock Option Scheme titled ‘2005 Employee Stock Option Plan’ (ESOP 2005) for
employees and directors of the company including those employees and directors
who were to be granted options, pursuant to the Scheme of Arrangement
sanctioned by the Hon’ble High Court of Judicature at Bombay on 14th December,
2007, in lieu of options that were granted by Brabourne Enterprises Limited
(the transferor company) under its ESOP 2005. The total number of equity shares
reserved under the said plan is 250,000 equity shares of Rs. 8 each.
The
Remuneration/Compensation Committee at its meeting held on 6th August, 2010 –
(a) Granted and
vested 30,119 equity stock options to employees, in lieu of options that were
granted to them by
Brabourne
Enterprises Limited. The employee had an option to apply for one equity share
of Rs. 8 each at an exercise price of Rs. 32.06. Of these options, 28,391
equity stock options have been exercised and 1,728 options remain outstanding
as on 31st March, 2011.
(b) Granted 95,000
equity stock options to the eligible director and employees of the company,
with an option for one equity share of Rs. 8 each at an exercise price of Rs.
100 being the price higher than the closing price quoted on the National Stock
Exchange prior to the date of meeting of the Remuneration/Compensation
Committee. These equity stock options shall vest, in case of employees of
General Manager grade and above, equally but conditionally on linear scale
based on performance, over five years beginning from one year after the date of
grant. Barring certain eventualities, the exercise period to subscribe to the
equity shares would be 10 years from the dates of vesting except otherwise
mentioned in ESOP 2005. Of these options, 95,000 equity stock options remain
outstanding as on 31st March, 2011.
Further, the
Remuneration/Compensation Committee at its meeting held on 20th October, 2010
granted 15,000 equity stock options to an eligible employee with an option for
one equity share of Rs. 8 each at an exercise price of Rs. 104 being the price
higher than the closing price quoted on the National Stock Exchange prior to
the date of meeting of the Remuneration/Compensation Committee. Of these
options, 15,000 equity stock options remain outstanding as on 31st March, 2011.
The company has used intrinsic value method to account for the cost of stock
options to employees and a director of the company. Intrinsic value is the
amount by which the quoted market price of the underlying share exceeds the
exercise price of the option. In view of the exercise price being higher than
the closing market price on the day prior to the date of grant, the intrinsic
value of the option is Nil. Consequently, the accounting value of the option
(compensation cost) is also Nil.]
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 |
132.282 |
120.551 |
114.951 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Share Warrants |
0.000 |
8.520 |
12.668 |
|
|
4] Reserves & Surplus |
616.029 |
515.243 |
421.593 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
748.311 |
644.314 |
549.212 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
468.047 |
486.300 |
469.149 |
|
|
2] Unsecured Loans |
59.913 |
4.224 |
94.762 |
|
|
TOTAL BORROWING |
527.960 |
490.524 |
563.911 |
|
|
DEFERRED TAX LIABILITIES |
74.997 |
64.037 |
49.008 |
|
|
|
|
|
|
|
|
TOTAL |
1351.268 |
1198.875 |
1162.131 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1125.031 |
1083.901 |
1161.203 |
|
|
Capital work-in-progress |
3.805 |
28.160 |
0.625 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
15.406 |
13.241 |
9.463 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
263.144
|
149.042 |
141.094 |
|
|
Sundry Debtors |
389.357
|
312.387 |
258.405 |
|
|
Cash & Bank Balances |
4.772
|
8.006 |
2.191 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
107.458
|
85.748 |
106.350 |
|
Total
Current Assets |
764.731
|
555.183 |
508.040 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
444.787
|
375.011 |
386.820 |
|
|
Other Current Liabilities |
56.795
|
56.553 |
86.868 |
|
|
Provisions |
56.123
|
50.046 |
43.512 |
|
Total
Current Liabilities |
557.705
|
481.610 |
517.200 |
|
|
Net Current Assets |
207.026
|
73.573 |
(9.160) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1351.268 |
1198.875 |
1162.131 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1841.898 |
1598.474 |
1404.726 |
|
|
|
Other Income |
33.369 |
32.514 |
39.701 |
|
|
|
TOTAL (A) |
1875.267 |
1630.988 |
1444.427 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials Cost |
497.228 |
465.241 |
422.571 |
|
|
|
Personnel Cost |
402.375 |
300.461 |
258.576 |
|
|
|
Other Expenses |
647.964 |
546.558 |
499.848 |
|
|
|
TOTAL (B) |
1547.567 |
1312.260 |
1180.995 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
327.700 |
318.728 |
263.432 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
57.829 |
81.392 |
86.116 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
269.871 |
237.336 |
177.316 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
95.208 |
91.822 |
94.181 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
174.663 |
145.514 |
83.135 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.539 |
37.551 |
17.060 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
127.124 |
107.963 |
66.075 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
153.546 |
78.983 |
36.385 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
9.534 |
8.097 |
3.304 |
|
|
|
Proposed Dividend |
26.456 |
21.699 |
17.243 |
|
|
|
Tax on Proposed Dividend |
4.292 |
3.604 |
2.930 |
|
|
BALANCE CARRIED
TO THE B/S |
240.388 |
153.546 |
78.983 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
556.827 |
444.357 |
419.353 |
|
|
|
Freight and Insurance |
10.611 |
7.297 |
6.301 |
|
|
|
Others |
0.000 |
0.000 |
4.195 |
|
|
TOTAL EARNINGS |
567.438 |
451.654 |
429.849 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
108.655 |
83.293 |
52.823 |
|
|
|
Stores & Spares |
2.299 |
1.120 |
3.624 |
|
|
|
Capital Goods |
12.699 |
6.988 |
0.000 |
|
|
TOTAL IMPORTS |
123.653 |
91.401 |
56.447 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) (Basic) |
8.04 |
7.51 |
4.60 |
|
|
|
Earnings /
(Loss) Per Share (Rs.) (Diluted) |
7.69 |
6.54 |
4.59 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
513.900 |
522.400 |
470.700 |
422.000 |
|
Total Expenditure |
418.800 |
459.700 |
425.300 |
448.500 |
|
PBIDT (Excl OI) |
95.100 |
62.700 |
45.400 |
(26.500) |
|
Other Income |
0.200 |
0.000 |
0.000 |
1.200 |
|
Operating Profit |
95.300 |
62.700 |
45.400 |
(25.300) |
|
Interest |
14.100 |
14.700 |
16.700 |
13.000 |
|
PBDT |
81.20 |
48.000 |
28.700 |
(38.300) |
|
Depreciation |
24.800 |
25.600 |
25.800 |
26.000 |
|
Profit Before Tax |
56.400 |
22.400 |
2.900 |
(64.300) |
|
Tax |
16.300 |
1.700 |
(1.700) |
(7.400) |
|
Profit After Tax |
40.100 |
20.700 |
4.600 |
(56.900) |
|
Net Profit |
40.100 |
20.700 |
4.600 |
(56.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.77
|
6.62 |
4.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.48
|
9.10 |
5.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.24
|
8.87 |
4.98 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.23 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.45
|
1.51 |
1.97 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.37
|
1.15 |
0.98 |
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 |
No |
|
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 |
No |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
BACKGROUND
RPG Life Sciences Limited
(the ‘company’) was incorporated on 29th March, 2007 as RPG Pharmaceuticals
Limited.
The name of the
company was subsequently changed to RPG Life Sciences Limited on 13th February,
2008. Pursuant to a Scheme of Arrangement, the company has acquired the
pharmaceuticals business of Brabourne Enterprises Limited (formerly RPG Life
Sciences Limited) with retrospective effect from the appointed date of 2nd
April, 2007.
OPERATIONS
The Company has registered
an improved performance during the year with a total income of Rs.1875.300
Millions, a growth of 15% as compared to the previous year. The profit after
tax increased by 18% to Rs.127.100 Millions as a result of introduction of new
products, improved focus on key products, better production efficiencies and
active cost optimization.
FORMULATIONS
BUSINESS:
PERFORMANCE
The formulations
business achieved sales revenue of Rs.1168.700 Millions during the year
registering a growth of 16.50% as compared to the previous year. The focus on
key brands and expanding field force helped to grow the business. The year
witnessed launch of several new products in therapeutic area of focus and
strength in order to enhance the depth and width of the product portfolio. New
divisions were launched in highly growing chronic segments namely Cardiology
and Diabetic (IMPULSE), Neurology- Psychiatry (EMPATHY) and Oncology
(Neo-life). A new division ESSENTIA was also launched to cater to the Hospital
sales segment. The branded exports business has consolidated its presence and
increased its share of contribution to formulation business during the year.
By leveraging its
strengths in core segments, the Company has been able to increase revenues from
antidiarrheal products and other products such as Aldactone, Azoran, Nufex,
Arpimune, Glimetop, Rabee, Qugyl O. The Company has also strengthened its
product portfolio by launching new products in the diuretic, antiepileptic,
antidiarrheal, cardiovascular, anti-ulcerant, anti-depressant,
immunosuppressant and Nephrology segments. Some of the new products launched
during the year were Seretane 2 DT, Rabee 20, Pedimec, Minilactone, Alfalog,
Demator, Naprosyn Gel, Lamotrigine dispersible tablets. Various initiatives
have also been taken to develop new export markets in Africa and South East
Asia.
OUTLOOK
New products are
being planned for launch in the key therapeutic areas of cardiology,
nephrology, pain management and gastroenterology. These new products will
augment the product portfolios of various business verticals and also enable
the Company to tap growing market segments both in the domestic as well as
export markets. At the same time the new dedicated divisions with their own
sales force and portfolio of brands will drive the business in therapeutic
areas like oncology, psychiatry, diabetology and nephrology.
GLOBAL GENERICS
BUSINESS:
PERFORMANCE
The Global
Generics business achieved sales revenue of Rs.170.500 Millions, a growth of
11.88% over the previous year. New agreements have been executed with customers
in Germany and other EU Markets for Azathioprine tablets.
OUTLOOK
Opportunities are
being evaluated to develop and manufacture private label products for pharmacy
chains. Company’s presence in EU Markets and Australia will be strengthened
post marketing approval of Azathioprine, which is expected by the end of FY
2011-12. Marketing dossier (ANDA) has been filed in the US during May 2010. US
FDA Audit is expected in 2011-12.
BULK DRUG
BUSINESS:
PERFORMANCE
The Bulk Drug
business achieved sales revenue of Rs.287.500 Millions, a growth of 44% over
the previous year. Demand from export markets has grown and new markets of
Poland, Tunisia, Sri Lanka and Bangladesh have been developed. New products
Nicorandil and Clopidogrel launched during the year are performing well. The
Company’s key products like Azathioprine, Risperidone and Quinfamide continued
to perform well.
OUTLOOK
One of the key
objectives of the Company is to build a strong and sustainable product portfolio.
During the current year, the Company plans to continue launching new bulk drug
products and explore new geographies. The Company is also working towards
completion of inspection by authorities from certain regulated markets like USA
which would facilitate entry into these new markets. The Company is also
planning to file Drug Master Files (DMFs) for several products in regulated and
semi regulated markets.
BIOTECH BUSINESS:
PERFORMANCE
The sales of
Biotech business at Rs.215.200 Millions was lower by 14% as compared to the
previous year, mainly due to intense competition from domestic as well as
Chinese and Korean companies, leading to pricing pressures. However, there was
good progress made with regard to yield improvement of Doxorubicin and Epirubicn.
OUTLOOK
The Company is in
the process of filing DMFs for its existing products in regulated and emerging
markets.
EXPORTS:
Exports sales for
the year amounted to Rs.567.400 Millions as against Rs.451.700 Millions in the previous
year. The Company has taken several key initiatives to gain access to new
markets and is confident that these will yield results in the current year in
terms of substantially increasing exports.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Indian economy
has emerged with strength from the slowdown caused by the global financial
crisis of 2007-09. The medium to long term prospects of the economy continue to
be positive. Inflation which remains at elevated levels, largely driven by the
food items is being contained through a sequenced and gradual withdrawal of the
monetary accommodation.
The Indian
pharmaceutical industry is now the third largest in the world in terms of
volume and stands fourteenth in terms of value and is expected to reach US$ 55
billion in 2020 from US$ 12.6 billion in 2009. The growth is across all
therapies, indicating a strong patient demand. Other factors driving growth are
increased efforts of pharma companies to expand reach and customer penetration,
improvement in medical facilities due to both private and government
initiatives, increase in health awareness. However, the industry continues to
remain highly fragmented and sternly competitive. As a result, the industry is
witnessing consolidation.
SEGMENT WISE PERFORMANCE
The Company is
exclusively engaged in pharmaceutical business.
Global
Formulations division catering to domestic market and rest of the world market
achieved sales of Rs.1168.700 Millions registering a growth of 16.50%. The
Company has strengthened its presence in the market through launching of 4 new
divisions. The Company also introduced thirty seven new products during the
year.
The Company also
took number of initiatives to enrich the value chain, such as training to field
staff to improve technical and communication skills, integration of sales
force, field force automation, redesign of communication plans and promotional
strategy that are expected to improve the sales in the current year and bring
consistency in performance. The special emphasis has also been put on export of
immunosuppressant and oncology to Asian, African and Latin American market
where these products would find competitive edge due to the Company’s
technology and cost.
The Global
Generics business achieved net sales of Rs.170.500 Millions registering a
growth of 11.88% during the year. New agreements have been executed with
customers in Germany and other EU Markets for Azathioprine tablets. A marketing
application has been filed by the Company simultaneously in several EU Market.
New products development has been undertaken for the regulated markets.
Clopidogrel Bisulphate Form I tablet and Risperidone tablet for which Company
already manufacture bulk drug have been identified for the dossier development
for EU and US markets.
The Bulk Drug
business achieved net sales of Rs.287.500 Millions registering a growth of 44%
during the year. Both export and domestic demand of bulk drugs have shown a
growth of 40% and 55%, respectively. The Company’s other key products like
Risperidone, Nicorandil and Clopidogrel performed well. In the current year the
Company plans to launch new bulk drugs and also plans to foray into new markets
with existing products. With these initiatives the bulk drugs business is
expected to perform better in the current year.
Sales in the
Biotech business at Rs.215.200 Millions were lower by 14% as compared to the
previous year mainly due to pressure from Chinese/Koreancompetition. Though our
major customers continue to procure from us but unit sales realisations have
come down.
OUTLOOK
The outlook for
the domestic pharmaceutical industry looks positive. In view of the strengths
and initiatives discussed above, the outlook for the Company’s business is
positive.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
(a) Claims against the company not acknowledged as debts |
|
|
|
(i) Sales tax matters |
11.804 |
11.804 |
|
(ii) Excise matters |
7.190 |
6.165 |
|
(iii)Water Charges |
0.000 |
0.789 |
|
(b) Guarantee given to Gujarat Industrial Development Corporation |
1.546 |
1.546 |
|
(c) Bank guarantees given to third parties |
4.601 |
7.989 |
|
Total |
25.141 |
28.293 |
NOTE:
(i) Future cash outflows in respect of (a)(i) and (ii) above are
determinable only on receipt of judgments/decisions
pending with
various authorities/forums and/or final outcome of the matters.
(ii) The
management is of opinion that there will be no impact on future cash outflow of
the company in respect of (b) and (c) above.
FIXED ASSETS:
·
Goodwill
·
Technical Knowhow
·
Computer Software
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture, Fittings and Office Equipments
·
Vehicles
STATEMENT OF STANDALONE
AUDITED RESULT FOR THE YEAR ENDED 31ST MARCH, 2012
RS. IN MILLIONS
|
PARTICULAR |
3 MONTHS ENDED |
YEAR ENDED |
|
|
|
UNAUDITED |
AUDITED |
|
|
|
31.12.2011 |
31.03.2012 |
31.03.2012 |
|
|
|
|
|
|
(a)
Net Sales / Income from operations |
463.000 |
412.300 |
1892.300 |
|
(b)
Other Operating Income |
7.700 |
9.700 |
35.900 |
|
Total
Income |
470.700 |
422.000 |
1928.200 |
|
Expenditure |
|
|
|
|
Cost
of Material Consumed |
95.500 |
93.100 |
446.500 |
|
Purchase
of Stock in Trade |
29.800 |
35.400 |
119.500 |
|
Changes
in Inventories of Finished Goods, Work in Progress and Stock in Trade |
11.400 |
19.400 |
(14.000) |
|
Employee
Benefits Expenses |
126.800 |
122.400 |
499.900 |
|
Depreciation
and Amortization Expenses |
25.800 |
26.000 |
102.200 |
|
Other
Expenses |
160.700 |
178.200 |
694.800 |
|
Total |
450.000 |
474.500 |
1848.900 |
|
Profit
from operations before other income, interest and exceptional Items |
20.700 |
(52.500) |
79.300 |
|
Other
income |
(1.600) |
1.200 |
6.900 |
|
Profit
before interest and exceptional Items |
19.100 |
(51.300) |
86.200 |
|
Interest |
16.200 |
13.000 |
68.800 |
|
Profit (+)/Loss(-) from
Oridinary Activities before tax |
2.900 |
(64.300) |
17.400 |
|
Tax
expense |
(1.700) |
(7.400) |
8.900 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
4.600 |
(56.900) |
8.500 |
|
Extraordinary items |
0.000 |
0.000 |
0.000 |
|
Net
Profit (+) / Loss (-) for the year period |
4.600 |
(56.900) |
8.500 |
|
Paid
up equity share capital (Face value of Rs.8/- per share) |
132.300 |
132.300 |
132.300 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
609.100 |
|
Earning
per share (EPS) |
|
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualized) |
0.28 |
(3.44) |
0.51 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualized) |
0.28 |
(3.44) |
0.51 |
|
Public
shareholding |
|
|
|
|
Number of shares |
7770593 |
7754293 |
775429.300 |
|
Percentage of shareholding |
46.99 |
46.90 |
46.90 |
|
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
|
a)
Pledged /Encumbered |
|
|
|
|
Number
of shares |
-- |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
-- |
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
Number
of shares |
8764648 |
8780948 |
8780948 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
53.01 |
53.10 |
53.10 |
|
PARTICULAR |
3 MONTHS ENDED |
|
|
31.03.2012 |
|
Pending at the
beginning of the quarter |
-- |
|
Received during
the quarter |
8 |
|
Disposed of
during the quarter |
8 |
|
Remaining
unsolved during the quarter |
-- |
STANDALONE STATEMENT OF
ASSETS AND LIABILITIES
|
PARTICULAR |
AS ON 31.03.2012 Rs. in Millions |
|
EQUITY AND LIABILITIES |
|
|
SHAREHOLDER FUNDS |
|
|
Share Capital |
132.300 |
|
Reserves and
Surplus |
609.100 |
|
Total |
741.400 |
|
|
|
|
Non-Current Liabilities |
|
|
Long-Term
Borrowings |
206.700 |
|
Deferred Tax
Liabilities (Net) |
68.200 |
|
Other Long-Term
Liabilities |
72.200 |
|
Long-Term
Provision |
11.800 |
|
Total |
358.900 |
|
|
|
|
Current Liabilities |
|
|
Short-Term
Borrowings |
243.900 |
|
Trade Payables |
332.300 |
|
Other Current
Liabilities |
128.800 |
|
Short-Term
Provision |
23.700 |
|
Total |
728.700 |
|
|
|
|
TOTAL-EQUITY AND LIABILITIES |
1829.000 |
|
|
|
|
Assets |
|
|
Non-Current Assets |
|
|
Fixed Assets |
1099.700 |
|
Long-Term Loans
and Advances |
14.700 |
|
Other
Non-Current Assets |
6.700 |
|
Total |
1121.100 |
|
|
|
|
Current Assets |
|
|
Inventories |
289.900 |
|
Trade
Receivables |
300.900 |
|
Cash and Bank
Balances |
5.600 |
|
Short-Term Loans
and Advances |
111.500 |
|
Total |
707.900 |
|
|
|
|
Total-Current Assets |
1829.000 |
NOTE:
·
The above result have been reviewed by the audit
committee and approved by the board of directors at its meeting held on 27th
April, 2012
·
The figures for the quarter ended 31st
March, 2012 are the balancing figures between the audited financial result for
the year ended 31st March 2012 and the published unaudited financial
results for the nine months ended 31st December, 2011.
·
The company is exclusively engaged in
pharmaceutical segment.
·
The company continues to invest strongly in building
of brands to gain market share.
·
Towards the end of December 2011, the company
received a communication from the Ministry of Social and Family Affairs, Health
and Consumer protection, Hamburg, Germany not granting EU GMP certification for
the company’s API facility at Navi Mumbai, Maharashtra post their inspection,
citing certain deficiencies, consequently, some of the orders were cancelled
for the quarter ended 31st March 2012, adversely affecting the business
of the company. The company has promptly initiated remedial measures towards
gaining re-certification, which are expected to be completed in the next 3
quarters.
·
The Board of Directors has recommended dividend of
Rs.0.80 per share (10%) for the year ended 31st March, 2012. This
will absorb Rs.15.400 Millions including Dividend Distribution Tax.
·
Figures for the prior periods have been regrouped
where necessary.
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.53.84 |
|
|
1 |
Rs.86.72 |
|
Euro |
1 |
Rs.69.17 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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.