MIRA
INFORM REPORT
|
Report Date : |
29.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
CLARIS LIFESCIENCES LIMITED (w.e.f. 31.03.1999) |
|
|
|
|
Formerly Known
As : |
ORACLE
LABORATORIES LIMITED |
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|
|
Registered
Office : |
Claris Corporate Headquarters,
Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, |
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Country : |
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Financials (as
on) : |
31.12.2011 |
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|
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Date of
Incorporation : |
19.07.1994 |
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|
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Com. Reg. No.: |
04-22543 |
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|
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Capital Investment
/ Paid-up Capital : |
Rs.638.178
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85110GJ1994PLC022543 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMC00478C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and
Marketing of Research Based Proprietary Products and Therapies for Acute
Illnesses and Surgical Situations. |
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|
|
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No. of Employees
: |
1383
Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 35000000 |
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|
|
Status : |
Good |
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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
fine track. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are reported to be regular 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 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Corporate Office/ Global Headquarters : |
Claris Corporate
Headquarters, Near Parimal Crossing, Ellisbridge, Ahmedabad – 380006, |
|
Tel. No.: |
91-79-26563331/
66309330 |
|
Fax No.: |
91-79-26408053/
26565879/ 26408055 |
|
E-Mail : |
intl.corp@clarislifesciences.com crcproducts.corp@clarislifessciences.com
|
|
Website : |
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|
Area : |
5000 sq. ft |
|
Location : |
Owned |
|
|
|
|
Head Office : |
Corporate Towers, A-3, “Sangeeta”, Near
Parimal Crossing, Ellisbridge, Ahmedabad – 380 006, |
|
Tel. No.: |
91-79-26563331 |
|
Fax No.: |
91-79-26408053/ 26565879/ 26408055 |
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E-Mail : |
intl.corp@clarislifesciences.com
|
|
Website: |
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Factory 1 : |
A-3, “Sangeeta”,
Near Parimal Crossing, Ellisbridge, Ahmedabad – 380 006, |
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Factory 2 : |
Village:
Chacharwadi, Vasna, Taluka Sanand, Ahmedabad-382213, Gujarat, India |
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Overseas
Office : |
|
|
Address: |
Claris Lifesciences AG Fal Consulting
Seestrasse 5, CH-6030 CHAM, |
|
Tel No.: |
91-41-41-7808766 |
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Fax No.: |
91-41-56-6228257 |
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E-Mail : |
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|
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Address: |
16, |
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Tel No.: |
91-7-095-2996610 |
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Fax No.: |
91-7-095-2999695 |
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|
|
|
Address: |
Zeus Lifesciences Limited Rua Estados
Unidos, 242, CEP 01427-00, Jardim |
|
Tel No.: |
91-55-11-38847263 |
|
Fax No.: |
91-55-11-30517888 |
|
E-Mail : |
|
|
|
|
|
Address: |
Claris Lifesciences Kazakhstan Limited |
|
Tel No.: |
91-32-72-306363 /
308251 |
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Email: |
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|
|
|
Address: |
|
|
Tel No.: |
91-7-3272-583193/
583194 |
|
Fax No.: |
91-7-3272-583195 |
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|
|
Regional Office: |
Located at:- ·
·
·
·
·
CIS ·
·
·
·
|
DIRECTORS
(AS ON 31.12.2011)
|
Name : |
Dr. Pravin
Pranlal Shah |
|
Designation : |
Chairman and
Independent Director |
|
Address : |
|
|
Date of
Birth/Age : |
11.11.1944 |
|
Date of
Appointment : |
27.04.1999 |
|
|
|
|
Name : |
Mr. Arjun
Sushilkumar Handa |
|
Designation : |
Managing Director
and Chief Executive Officer |
|
Address : |
"Sharanya" |
|
Date of
Birth/Age : |
30.09.1979 |
|
Date of
Appointment : |
19.02.2001 |
|
|
|
|
Name : |
Mr. Aditya Sushilkumar Handa |
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Designation : |
Director |
|
Address : |
"Sharanya" |
|
Date of
Birth/Age : |
14.03.1985 |
|
Date of
Appointment : |
13.06.2006 |
|
|
|
|
Name : |
Mr. Chetankumar Satyendra Majumdar |
|
Designation : |
Director |
|
Address : |
B-201, |
|
Date of
Birth/Age : |
16.06.1952 |
|
Date of
Appointment : |
02.10.2003 |
|
|
|
|
Name : |
Mr. Chandrasingh Purohit |
|
Designation : |
Whole Time Director |
|
Address : |
17. Rajvi Emeralds, Nr. Gala Gymkhana, Bopal, Ahmedabad –
380054, |
|
Date of Birth/Age : |
15.09.1973 |
|
Date of Appointment : |
03.07.2009 |
|
|
|
|
Name : |
Mr. Amish Pravinchandra Vyas |
|
Designation : |
Additional Director |
|
Address : |
89 – 400, Saraswati Nagar, Near Azad Society, Ambawadi, Ahmedabad 380
015, |
|
Date of
Birth/Age : |
17.09.1970 |
|
Date of
Appointment : |
03.07.2009 |
|
|
|
|
Name : |
Mr. T V Ananthnarayanan |
|
Designation : |
Director |
|
Address: |
1/183, Kankam, |
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Date of Birth/Age: |
28.03.1950 |
|
Date of Appointment: |
28.01.2008 |
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|
|
|
Name : |
Mr. Surrinder Lal Kapur |
|
Designation : |
Additional Director |
|
Address : |
161, A/1, |
|
Date of Birth/Age : |
07.03.1937 |
|
Date of Appointment : |
26.09.2008 |
|
|
|
|
Name : |
Mr. Nikhil Mohta |
|
Designation : |
Nominee Director |
|
Address : |
11 Mohan Apartments, |
|
Date of Birth/Age : |
26.12.1977 |
|
Date of Appointment : |
03.07.2009 |
KEY EXECUTIVES
|
Name : |
Mr. Rajesh Kumar Modi |
|
Designation : |
General Manager – Compliance and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2012)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
15,601,014 |
24.45 |
|
|
28,433,292 |
44.55 |
|
|
44,034,306 |
69.00 |
|
|
|
|
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
44,034,306 |
69.00 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
217,072 |
0.34 |
|
|
65,421 |
0.10 |
|
|
5,373,518 |
8.42 |
|
|
7,111,095 |
11.14 |
|
|
12,767,106 |
20.01 |
|
|
|
|
|
|
|
|
|
|
2,154,704 |
3.38 |
|
|
|
|
|
|
2,474,084 |
3.88 |
|
|
1,887,244 |
2.96 |
|
|
|
|
|
|
500,321 |
0.78 |
|
|
262,924 |
0.41 |
|
|
236,251 |
0.37 |
|
|
1,146 |
- |
|
|
7,016,353 |
10.99 |
|
|
|
|
|
Total Public shareholding
(B) |
19,783,459 |
31.00 |
|
|
|
|
|
Total (A)+(B) |
63,817,765 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
63,817,765 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of Research Based Proprietary Products and Therapies for Acute
Illnesses and Surgical Situations. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Large Volume
Parenterals |
Nos. |
1952.65 |
1750.09 |
|
Small Volume
Parenterals |
Nos. |
1134.68 |
358.30 |
|
|
|
|
|
Notes:
i. Installed capacities
stated above are based on the product-mix and are as certified by the plant
manager, but not verified by the auditors, being a technical matter.
ii. Actual production
includes quantities produced in the factories and excludes quantities of LVP
Nos.1353.66 Lacs (Previous Year Nos.1357.47 Lacs) produced in the factories of
third parties on loan and license basis.
iii. Licensed capacity is
not indicated as the Company’s products are exempt from licensing requirement.
|
Particulars |
Unit |
Actual Production |
|
|
|
|
|
Large Volume
Parenterals |
Nos. |
3103.75 |
|
Small Volume
Parenterals |
Nos. |
358.30 |
|
Others (Bulk
Drugs, Chemicals, Dossiers and Marketing rights etc.) |
-- |
-- |
GENERAL INFORMATION
|
No. of Employees : |
1383
Approximately |
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Bankers : |
·
Canara Bank ·
Indian
Overseas Bank ·
Punjab
National Bank ·
Andhra Bank ·
Allahabad Bank ·
Central Bank of India ·
United Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Heritage, 3rd Floor, Near |
|
|
|
|
Holding Company : |
Sarjan Financial Private Limited U65910GJ1996PTC030641 |
|
|
|
|
Companies over which key Management Personnel or their relatives are able
to exercise significant influence: |
·
Sarjan Financial
Private Limited ·
Cygnus
Laboratories Limited ·
Medical
Technologies Limited ·
Abellon
Agrisciences Limited (Formerly known as Olive Agrisciences Limited) ·
Red Bricks Junior
Education Limited ·
Prarabdh Financial
Private Limited ·
Xcelris Labs
Limited ·
Accelaries
Technologies Limited. |
|
|
|
|
Subsidiary Companies : |
·
Claris
Lifesciences Venezuela C. A CIN No.
U24230GJ2005PLC046211 ·
Claris Produtos
Farmaceuticos Do Brasil Limitada ·
Pt. Claris Lifesciences
Indonesia ·
Claris
Lifesciences Colombia Limitada ·
iCubix Infotech
Limited CIN No.
U93090GJ2000PLC038446 ·
Catalys Venture
Cap Limited ·
Claris
Lifesciences International Limited (Formerly known as Claris International
Limited) ·
Claris Lifesciences
Philippines INC ·
Claris
Lifesciences De Mexico SA de CV ·
Claris
Lifesciences (UK) Limited ·
Claris
Lifesciences Inc. ·
Claris
Lifesciences and CIA Chile Limitada ·
Claris
Lifesciences (Aust) Pty Limited ·
Claris
Infrastructure Limited CIN No.: U45202GJ2007PLC050061 ·
OGEN Nutrition
Limited (formerly Known as Claris Biosciences Limited) ·
Claris SteriOne ·
Claris
Pharmaservices |
CAPITAL STRUCTURE
(AS ON 31.12.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120510000 |
Equity Shares |
Rs.10/-each |
Rs.1205.100 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63817765 |
Equity Shares |
Rs.10/- each |
Rs.638.178
Millions |
|
|
|
|
|
NOTE:
Of the above Equity Shares:
(i) 5000140 Equity Shares
of Rs.10/- each were allotted as fully paid-up bonus shares by capitalisation
of surplus in profit and Loss Account Rs.50.001 Millions, on 25th
December, 2000.
(ii) 17916416 Equity Shares
of Rs.10/- each were allotted as fully paid-up bonus shares by capitalisation
of surplus in profit and Loss Account Rs.179.164 Millions, on 22nd
September, 2004.
(iii) 17061763 Equity
Shares of Rs.10/- each were allotted as fully paid-up bonus shares by capitalisation
of securities premium account Rs.170.618 Millions, on 7th April
2010.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
638.178 |
638.178 |
341.235 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
8128.091 |
7578.406 |
4443.585 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
8766.269 |
8216.584 |
4784.820 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4108.646 |
3606.300 |
2968.810 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
171.260 |
|
|
TOTAL BORROWING |
4108.646 |
3606.300 |
3140.070 |
|
|
DEFERRED TAX LIABILITIES |
602.445 |
522.430 |
518.490 |
|
|
|
|
|
|
|
|
TOTAL |
13477.360 |
12345.314 |
8443.380 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6615.407 |
5286.485 |
4897.600 |
|
|
Capital work-in-progress |
2213.129 |
1857.151 |
1232.290 |
|
|
|
|
|
|
|
|
INVESTMENT |
170.572 |
170.572 |
170.570 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1521.076
|
1366.001
|
1216.360
|
|
|
Sundry Debtors |
2438.563
|
2533.432
|
2413.600
|
|
|
Cash & Bank Balances |
1529.312
|
2906.424
|
435.330
|
|
|
Other Current Assets |
13.062
|
3.265 |
0.990
|
|
|
Loans & Advances |
1197.229
|
1082.695
|
1200.400
|
|
Total
Current Assets |
6699.242
|
7891.817
|
5266.680
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
921.211
|
1528.029 |
1382.830 |
|
|
Other Current Liabilities |
978.378
|
967.303
|
1447.010
|
|
|
Provisions |
321.401
|
365.379
|
293.920
|
|
Total
Current Liabilities |
2220.990
|
2860.711
|
3123.760
|
|
|
Net Current Assets |
4478.252
|
5031.106
|
2142.920
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13477.360 |
12345.314 |
8443.380 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6496.675 |
6255.923 |
6247.380 |
|
|
|
Other Income |
33.801 |
149.460 |
210.660 |
|
|
|
TOTAL (A) |
6530.476 |
6405.383 |
6458.040 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/ Decrease in stock |
(122.236) |
(132.308) |
(71.960) |
|
|
|
Material Cost |
2657.201 |
2446.994 |
2239.270 |
|
|
|
Employees Cost |
430.450 |
476.626 |
386.470 |
|
|
|
Operating and Other Expenses |
1729.714 |
1811.073 |
2029.70 |
|
|
|
TOTAL (B) |
4695.129 |
4602.385 |
4583.480 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1835.347 |
1802.998 |
1874.560 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
342.780 |
361.940 |
407.290 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1492.567 |
1441.058 |
1467.270 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
543.414 |
463.779 |
444.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
949.153 |
977.279 |
1022.670 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
251.620 |
187.036 |
132.040 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
697.533 |
790.243 |
890.630 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3652.051 |
3073.142 |
2304.580 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
52.500 |
62.500 |
90.000 |
|
|
|
Proposed Dividend |
127.635 |
127.635 |
102.370 |
|
|
|
Tax on Dividend |
20.706 |
21.199 |
17.400 |
|
|
|
Tax on Dividend of earlier year reversed |
(0.493) |
-- |
-- |
|
|
|
Reversal of Dividend no longer payable |
-- |
-- |
(75.090) |
|
|
|
Reversal of Tax on Dividend no Longer
Payable |
-- |
-- |
(12.620) |
|
|
BALANCE CARRIED
TO THE B/S |
4149.236 |
3652.051 |
3073.150 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
2765.082 |
2991.914 |
2947.570 |
|
|
|
Product Development Charges |
0.000 |
0.000 |
21.440 |
|
|
|
Sales of Voluntary Carbon Reduction Units |
14.782 |
-- |
0.000 |
|
|
TOTAL EARNINGS |
2779.864 |
2991.914 |
2969.010 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
457.602 |
355.496 |
180.780 |
|
|
|
Purchase of goods traded in |
81.158 |
107.750 |
90.120 |
|
|
|
Packing Material |
86.042 |
178.393 |
289.800 |
|
|
|
Plant and Machinery |
70.907 |
110.239 |
95.190 |
|
|
|
Stores and spares |
5.050 |
15.706 |
7.900 |
|
|
TOTAL IMPORTS |
700.759 |
767.584 |
663.790 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
10.93 |
15.27 |
18.33 |
|
|
|
- Diluted |
10.93 |
10.00 |
17.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
31.03.2012 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
1532.330 |
|
Total Expenditure |
|
|
1262.700 |
|
PBIDT (Excl OI) |
|
|
269.630 |
|
Other Income |
|
|
47.910 |
|
Operating Profit |
|
|
317.540 |
|
Interest |
|
|
138.650 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
178.890 |
|
Depreciation |
|
|
160.300 |
|
Profit Before Tax |
|
|
18.590 |
|
Tax |
|
|
2.460 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
16.130 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
16.130 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
PAT / Total Income |
(%) |
10.68
|
12.34
|
13.79
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.61
|
15.62
|
16.37
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.13
|
7.42
|
10.06
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.12
|
0.21
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.72
|
0.79
|
1.31
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.02
|
2.76
|
1.69
|
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
|
|
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
Yes |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
Yes |
|
No. of Employees |
Yes |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
----- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----- |
|
Litigations that the firm/ Promoters Involved in |
----- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----- |
|
Buyer visit details |
----- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
NOTE:
The Registered Office of the company has been shifted from Corporate
Towernr Parimal Crossing Ellisbrige, Ahmedabad – 380006,
RESULTS OF
OPERATIONS:
Despite of no
sales of its products in the US markets due to the import alert and the adverse
situations for business in the Middle East and EU, the company has done well to
deliver flattish revenue this year. During the financial year the company’s
income from net sales stood at Rs.7387.657 Millions as against Rs.7523.353
Millions in the previous year which decreased marginally by 1.80% compared to
previous year.
The revenues from international
markets stood at Rs.3927.283 Millions as compared to Rs.4372.533 Millions in
previous financial year representing 53% of the net revenues as compared to
58.12% of previous financial year.
EBITDA, PBT and
PAT reached to Rs.2404.178 Millions, Rs.1514.564 Millions and Rs.1262.554
Millions respectively as against Rs. 2433.814 Millions, Rs.1604.696 Millions
and Rs.1414.405 Millions respectively, in the previous year. As a percentage of
net sales, the EBITDA, PBT and PAT margins stood at 32.54%, 20.50% and 17.09%
respectively in fiscal year 2011 compared to 32.35%, 21.33% and 18.80%
respectively in the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
The pharmaceutical
market worldwide, after experiencing a slump during the past 2 years, is now in
its recovery period, which will be followed by its growth. Decline in global
pharma market was largely due to the economic slowdown, and further aggravated
by patent expiry of key blockbusters, together with saturation in key pharma
markets, such as the US and Western Europe. Meanwhile, pharma markets in some
developing regions, like Asia and Latin America have been continuously
witnessing robust growth rate for the last few years, on account of increasing
prevalence of diseases, rising healthcare spending, and increasing
affordability. Overall, these markets will enjoy good growth potential in
coming few years.
The global pharma
industry is projected to grow at a CAGR of around 6.5% during 2011-2013 and
this growth will be driven by low cost factor, increasing prevalence of
diseases worldwide, and rising per capita income of consumers. The sales of
generic drugs will emerge as the most prominent segment of the pharma market
during the forecast period, indicating large opportunities for generics manufacturers
to tap.
During the year
2011, the company continued registering new products across regulated market,
marked its presence into new territories, won several awards and accolades,
improved margin in hospital care products by increase in pricing by pricing
regulatory authority and a stable and affirmed credit rating metrics.
Following were the key highlights on the business and financial front in
the year 2011:
· Appointed better quality of distributors in some emerging countries to improve market of products in those territories.
· Increase in Marketing Authorizations to 1228 products and 357 product registrations are under pipeline.
· Improved margin in some of the hospital care products of the company, by increase in selling prices of some of the products.
· They have also registered few of the anti infective products in Russia, which is another big Pharma market and also received approval to market the block buster drug Propofol in European Union.
· They have been ranked #1 in “Healthcare industry” and 9th among “Top 25 Best Companies To Wok For 2011” award from the Economic Times and Great Place to Work Institute, India.
GLOBAL
PHARMACEUTICAL INDUSTRY
IMS health
forecasts global pharmaceutical market growth at 5-7 Percent during the year,
reaching to the size of USD 880 Billion. The major reasons for the growth
expected are:
- Increase in
patent expiries and new wave of drug budget controls subdue growth among brands
in developed markets,
- Pharmerging
countries contribute nearly half of total growth and ,
- Innovative
products poised to provide new treatment options
The robust growth
in the pharmaceutical markets of emerging world economies has outpaced the
overall growth of the global pharmaceutical market. The emerging markets are
being driven by rapidly growing economies of these countries, increasing per
capita income, increasing prevalence of lifestyle diseases due to rapid
urbanization, and low-cost factors.
The pharmaceutical
market in regulated segment has experienced exponential growth over the past
decade but is now witnessing a slump. This slump is attributed to saturation in
key markets such as United States and Western Europe, patent expiry of key drug
formulations and a static economy. On the other hand, many growing economies in
the developing regions of Asia and Latin America are witnessing a continuous
high growth rate in the pharmaceutical sector. In the coming years, these
markets are expected to continue their robust growth owing to various factors
such as increasing prevalence of lifestyle diseases, rise in spending on
healthcare and increased access and affordability to healthcare services. This
seismic shift in the pharmaceutical markets of the world, away from the major
developed powers of the U.S., Japan, France, Germany, Italy, United Kingdom,
Spain and Canada, ready to a set a new, dynamic, fast-growing emerging
economies of China, Brazil, Russia, India, Mexico, Turkey, and South Korea
which has created new dynamics. These seven emerging markets of the
pharmaceutical sector have been termed as ‘pharmerging markets’. Apart from
these E7 economies, many other emerging markets have been recognized as
interesting destinations for the major global pharmaceutical players. Unlike
the developed world, where health systems provide a more uniform coverage
level, the emerging pharmaceutical markets have wide regional health
expenditure differences within them. Moreover, recent major developments and
global recession have driven disparate rates of evolution in each of these
countries. Unlike the pharmaceutical market of United States and Western
Europe, the emerging markets are characterized by diverse therapeutic segments,
different and complex regulatory law and a fragmented market. The worldwide
economic crisis has also added a new layer of complexity to the already
challenging environment.
Thus, the need for
action and informed direction has never been greater. Apart from the BRIC
nations (Brazil, Russia, India and China), positive developments in other parts
of the world are also reshaping the pharmaceutical sector. In regions such as
Latin America and Asia, Eastern Europe and North Africa, a new set of emerging
economies are now rapidly rising. A further 13 nations in these regions have
now reached a threshold of economic development and volume of future growth
that warrant close and immediate scrutiny. Collectively, the emerging markets
undoubtedly offer high potential, with rising GDPs, expanding access to
healthcare and an improving IP and regulatory environment in many cases.
Nevertheless, these markets are fraught with uncertainty and hurdles. Local
companies are strong and entrenched, domestic products are well-established,
and generics dominate the market in a growing number of countries. Patients
invariably bear the highest share of healthcare spend, making issues of
willingness and ability to pay key in these low income countries.
INDIA MARKET AND GROWTH AREAS
The Indian
pharmaceutical market is expected to touch USD 74 billion sales by 2020 from
USD 12 billion now, according to a Price water house Coopers (PwC) report.
India's pharmaceutical market grew at 15.7 per cent during December 2011. India
has every chance to capitalize the opportunity to become a pharmaceutical
Superpower in 2020 and a hub for all pharmaceutical manufacturing and research
needs. Fitch Ratings' outlook on the Indian pharmaceutical sector for 2012 is
stable. The agency expects credit profiles to remain stable, should long-term
earnings and profitability prospects remain intact, with moderate capex.
The sector will be
guided by growing preferences for generics as well as opportunities provided by
patent expiries in developed markets. According to IMS health, the global drug
spending towards generics is expected to rise to 39% of total pharmaceutical
spending in 2015 up from 20% in 2005 and 27% in 2010.
During 2011,
according to Pharmaceutical Export Promotion Council, exports for the Indian
Pharmaceutical sector are likely to register 17% to 20% growth touching USD
12bn. The long term growth and profitability would be driven by newer markets
such as Japan and emerging markets including Russia, Brazil, China and Mexico
as well as countries including South Africa, Turkey and Indonesia. The rapid
growth in these markets will be driven by generic spends.
India's pharmaceutical
sector is gaining a global leadership position and Indian generics today
constitute nearly a fifth of global supplies. The pharmaceutical companies can
be of immense value in providing affordable healthcare which is much needed
globally. India has a vast pool of trained pharmaceutical scientists, doctors
and researchers, which opens up avenues for joint collaborative research for
new drug discoveries along with joint intellectual property rights (IPRs).
Generics will
continue to dominate the market while patent-protected products are likely to
constitute 10 per cent of the pie till 2015. Compared with USD 21bn that
expired in 2011, global 2010 sales of drugs set to expire in the US in 2012
amount to massive USD 52bn. This offers significant market opportunity for
lower priced generics and a clear visibility for profit and revenue growth for
generic focused Indian Pharmaceutical companies. Despite the challenging price
environment, due to intense competition, Indian Pharmaceutical companies are expected
to do well due to generic experience and lower manufacturing cost.
It is expected
that the growth momentum for Indian generics will sustain, as in the Non-US
markets, Indian generics are better placed with higher exposure to emerging
markets (EMs) and lower exposure to Europe. Indian firms are expected to be
more successful in EMs given the strong branded generic experience in India. In
the US market, volume share of Indian generics has quadrupled in the past five
years to 17%, though their combined scale is still one-third of the top five
peers. The current pipeline is strong and market share gains could continue for
Indian generics. Indian generic players have a better mix of targeted markets
with higher exposure to EMs and lower exposure to Europe.
The branded
generic experience in India gives Indian companies a unique advantage over
global generic players. Demand drivers in India and the business model are
similar to most emerging markets; thus, Indian companies have a head start
there over global peers. This also explains why Indian generics have a higher
proportion of sales from emerging markets. Emerging markets such as India are
more about creating brands and marketing skills; therefore it is expected that
larger competition will be from global pharma in the EMs than the global
generic peers.
CONTINGENT
LIABILITIES
|
Particulars |
31.12.2011 |
31.12.2010 |
|
|
(Rs.
In Millions) |
|
|
a. Claims
against the Company not acknowledged as debts in respect of |
|
|
|
(i) Sales Tax |
0.893 |
2.094 |
|
(ii) Excise Duty |
6.859 |
3.429 |
|
(iii) Other
Matters |
31.231 |
7.923 |
|
|
|
|
|
b. Disputed
demand under Income tax |
38.126 |
15.222 |
|
c. Guarantees given by the bankers on behalf of the Company |
13.209 |
124.888 |
|
d. Bills
discounted |
268.634 |
251.400 |
|
e. Letters of
credit outstanding |
933.256 |
437.528 |
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER AND HALF YEAR ENDED MARCH 31, 2012
(RS. IN MILLIONS)
|
Particulars |
For
the Quarter Ended 31.03.2012 |
|
|
Unaudited |
|
1. a) Net Sales/
Income from Operations |
1526.086 |
|
b) Other
Operating Income |
6.240 |
|
Total Income |
1532.326 |
|
|
|
|
2. Expenditure |
|
|
a. Consumption of
materials consumed |
582.171 |
|
b. Purchase of
Stock-in-trade |
150.914 |
|
c. Changes in
Inventories of finished Goods, Work-in-progress and Stock-in-trade |
(45.342) |
|
d. Employee cost |
111.038 |
|
e. Depreciation |
160.304 |
|
f. Other
Expenditure |
463.900 |
|
Total Expenditure |
1422.985 |
|
|
|
|
3. Profit/ Loss from
operations before other Income, Interest and Exceptional Item (1-2) |
109.341 |
|
4. Other Income |
47.905 |
|
5. Profit/ Loss
before Interest and Exceptional Item (3+4) |
157.246 |
|
6. Interest (Net) |
138.654 |
|
7. Profit/ Loss after
Interest but before Exceptional Item (5-6) |
18.592 |
|
8. Exceptional
Items |
-- |
|
9. Profit/ Loss
from ordinary Activities before tax (7+8) |
18.592 |
|
|
|
|
10. Tax Expenses |
|
|
a. Current Tax |
6.386 |
|
b. MAT Credit
Entitlement |
-- |
|
c. Deferred Tax |
(8.328) |
|
d. Short/ Excess
Provision of Tax in Earlier period |
4.406 |
|
Total Tax Expenses |
2.464 |
|
|
|
|
11. Net Profit/
Loss from ordinary activities after tax (9-10) |
16.128 |
|
12. Extraordinary
Item |
-- |
|
13. Net Profit/ Loss
for the period (11-12) |
16.128 |
|
14. Paid-up
Equity Share Capital (Face Value – Rs. 10/- per share) |
6381.78 |
|
15. Reserve
excluding Revaluation Reserve |
-- |
|
|
|
|
16. Basic and
Diluted Earning per Share (EPS) (Not Annulised) |
0.25 |
|
|
|
|
17. Public Shareholding |
|
|
- No. of Shares |
19783459 |
|
- Percentage of
Shareholding |
31.00% |
|
|
|
|
18. Promoters and Promoters Group
Shareholding |
|
|
a) Pledged/ Encumbered |
|
|
- Number of
Shares |
9154.930 |
|
- Percentage of Shares
(as a % of total shareholding of promoter and promoter group) |
20.79% |
|
- Percentage of
Shares (as a % of the total share capital of the company) |
14.35% |
|
|
|
|
b) Non –Encumbered |
|
|
- Number of
Shares |
34879376 |
|
- Percentage of Shares
(as a % of total shareholding of promoter and promoter group) |
79.21% |
|
- Percentage of
Shares (as a % of the total share capital of the company) |
54.65% |
NOTE:
The above results have
been reviewed by the Audit Committee and approved by the Board of Directors at
their respective meetings held on 30th April 2012.
The initial public
offer (IPO) proceeds have been utilized as per objects of issue as approved by
the shareholders.
A) The
Utilised of issue proceeds from IPO is as follows:
(Rs. In Millions)
|
Particulars of Fund utilized for |
Amount
to be utilized as per prospectus/ Shareholders approval |
Amount
utilized |
|||
|
|
Total
|
Year
2010 |
Year
2011 |
Year
2012 |
Upto
31st March 2012 |
|
|
|
|
|
|
|
|
Setting up of a
new Project in existing Facility |
1346.480 |
375.070 |
702.380 |
269.030 |
1110.838 |
|
Towards Research
and development activities |
145.000 |
66.360 |
78.640 |
-- |
1145.000 |
|
Repayment of Term
Loan |
932.140 |
459.140 |
473.000 |
-- |
459.140 |
|
General Corporate
Purpose |
319.000 |
-- |
319.000 |
-- |
304.247 |
|
Issue Expenses |
257.380 |
257.380 |
-- |
-- |
257.380 |
|
|
|
|
|
|
|
|
Total |
3000.00 |
1157.950 |
1573.020 |
269.030 |
2276.605 |
|
|
|
|
|
|
|
|
B) The Utilised
proceeds are |
|
|
|
|
|
|
Held in fixed
deposit account |
|
|
|
|
470.560 |
|
Held in Escrow
Account |
|
|
|
|
-- |
|
Used towards paying
down working capital/ short term credit limit/ in current account |
|
|
|
|
252.835 |
|
Total |
|
|
|
|
3000.000 |
The company is
working towards employing the balance IPO proceeds as per the approval given by
shareholders through Postal Ballot Dated 24th September, 2011.
The Company has
only one reportable business segment, namely, drugs and Pharmaceuticals.
The figures for the
previous year/ period have been regrouped/ Rearranged wherever necessary.
FIXED
ASSETS:
·
·
Buildings
·
Improvement in Leasehold Property
·
Plant and Machinery
·
Electrical Instrument
·
Furniture and Fixtures
·
Other Equipments
·
Vehicles
·
Data Processing Equipments
·
Computer Software
BUSINESS DESCRIPTION
Subject is an India-based
sterile injectables pharmaceutical company. The Company has presence in 76
countries worldwide. The Company’s products offering consist of 113 products
across multiple markets and therapeutic areas. All of its products are
off-patent products, a majority of which are capable of being directly injected
into the body and are predominantly used in the treatment of critical
illnesses. The Company’s products range across various therapeutic segments,
including anaesthesia, critical care, anti-infectives, renal care, infusion
therapy, enteral nutrition, parenteral nutrition and oncology. It offers
injectables in various delivery systems, such as glass and plastic bottles,
vials, ampules, pre-filled syringes and non-polyvinyl chloride (PVC) and PVC bags.
The Company’s customer base primarily includes government and private
hospitals, aid agencies and nursing homes. Its manufacturing facilities are
located in Ahmedabad, India. For the fiscal year ended 31 December 2010, Claris
Lifesciences Limited's revenues increased 1% to RS7.68B. Net income increased
to 8% to RS 1.41B. Revenue reflects increase in net sales/income from
operations and higher other income. Net income reflects a significant decrease
in purchase of traded goods, lower other expenditure and a fall in interest
expenses. The company is one of the largest Indian sterile injectables
pharmaceutical companies.
AS PER WEB
DETAILS
PROFILE
Subject is an
international pharmaceutical company, in the business of manufacturing and
marketing sterile parenteral preparations, life saving medicines and hospital
products, focusing on delivery systems, for treatment of critical illnesses and
diseases.
With emphasis on Research, Technology and Quality, subject offers a range of
unique products and delivery systems in bottles, vials, ampoules, pre-filled
syringes, non-PVC/PVC bags and oral dosage forms. The company's strength lies
in its know-how and expertise in manufacturing and marketing injectable
products.
Driven by a team of scientists, pharmaceutical experts and management
professionals, subject is powered by a combination of Vision, R and D
capabilities, Technological knowhow, International standards and Manufacturing
expertise.
The company's range of products and delivery systems extends across Enteral and
Parenteral Nutrition, Anaesthesia, Blood Products and Plasma Volume Expanders,
Anti-infective, Dialysis and Transplant, Cardiac Care, Infusion Therapy as well
as Medical Disposables and Equipment.
Subject enjoys Market Leadership in
COMPANY EVOLUTION
1999
·
Inauguration of first international
office in
·
Clarion I, the first manufacturing
facility with 3 production line
2002
·
Received the WHO GMP certificate for
the Clarion I manufacturing facility
·
Reached Rs.1 billion mark in sales turnover
2003
·
Manufacturing facility approved by
INVIMA,
2004
·
Commercial production started at
Clarion II manufacturing facility
2005
·
Clarion I manufacturing facility
approved by the MHRA,
·
Received first product registration
from
·
The Company received its first
regulated market order from the
·
Filed 6 ANDAs with the USFDA.
2006
·
First Carlyle Ventures III invested
Rs.905.04 million in Equity Shares and convertible preference shares in the
Company.
2007
·
The USFDA granted approval of their
Company’s sterile injectable manufacturing facility in Clarion I.
·
Received Gold Award in
·
Received
2008
·
Received approval for 4 ANDAs in the
·
Commenced own sales and marketing
activities in the
·
Launch of a range of infusion products
in non-PVC bags in
·
Received Gold Award in
·
Received Indian Drug Manufacturers'
Association Quality Excellence Award
2009
·
One of the Company’s non-resident
Subsidiaries entered into a business arrangement with Pfizer Asia Contract
Operations Pte. Limited for the marketing and supply of specific sterile injectables
in certain regulated markets.
·
Received Gold Award in
·
Received Indian Drug Manufacturers'
Association Quality Excellence Award
2010
·
Received a letter from the USFDA in
relation to the registration of the aseptic manufacturing line.
·
Claris Firms up IPO Plan
BOARD OF DIRECTOR’S PROFILE
Dr. Pravin P. Shah, Non-Executive Chairman
and Independent Director
Dr.
Pravin P. Shah is the Non-Executive Chairman of the Board and is an Independent
Director of their Company. He was appointed as a Director on April 27, 1999. He
holds a bachelor degree in commerce and doctorate in finance from
Mr. Arjun S. Handa, Promoter, Managing
Director and CEO
Mr.
Arjun S. Handa is a Post Graduate in Management from
Mr. Aditya S. Handa, Non-Executive and
Non-Independent Director
Mr.
Aditya S. Handa holds a Bachelor of Commerce degree from the
Mr. Nikhil Mohta, Non-Executive
Non-Independent Director, Nominee of Carlyle
Mr.
Nikhil Mohta is a nominee director of First Carlyle Ventures III. He holds a
post graduate diploma in management from Indian Institute of Management,
Ahmedabad. He received his B.Com (Hons) from the
Mr. Chandrasingh Purohit, Executive Director
(President – Finance)
Mr.
Chandrasingh Purohit holds a Master of Commerce degree from
Mr. Amish Vyas, Executive Director
(President – International Business and Strategy)
Mr.
Amish Vyas, holds a Bachelor of Electronics and Communication degree from
Mr. Chetan S. Majmudar, Executive Director
(President – Technology and CQA)
Mr.
Chetan S. Majmudar oversees the technical aspects of the Company. He holds a
Bachelor of Science degree from
Mr. T. V. Ananthanarayanan, Independent
Director
Mr.
Ananthanarayanan holds a Master of Science degree in Biomedical engineering
from the Indian Institute of Technology, Chennai, and is a graduate in
mechanical engineering from the Indian Institute of Technology, Chennai. He has
completed professional internship in applied behavioral sciences from the
Indian Society for Individual and Social Development (ISISD), and has been
accepted as a Professional member of the Society. He has 35 years of experience
consisting of seven years (1972-79) in managing manufacturing processes and
operations, six years (1979-85) in long term projects focusing primarily on
manufacturing turnarounds and ten years (1985-95) of independent consulting. He
has been associated (as visiting faculty) with the Indian Institute of
Management, Ahmedabad and Bangalore, the National Institute of Design,
Ahmedabad, Institute of Rural Management, and has various publications to his
credit including a book titled "Totally Aligned Organisation",
published in 2000.
Mr. Arvind Bansal, Independent Director
Mr.
Bansal holds a post graduate diploma in business management from the Indian
Institute of Management, Ahmedabad, and is a graduate in engineering from the
Indian Institute of Technology,
Mr. Surrinder Lal Kapur, Independent
Director
Mr.
Kapur holds a post graduate degree in Mathematics and is a graduate in Law from
Mr.
Shyam Sharma, President – HRM and Corporate Communication
Mr. Shyam Sharma holds a Bachelor of Arts degree from the
Mr.
Bharat Shah, President –
Mr. Bharat Shah holds a Bachelor of Commerce degree from the
OVERVIEW
·
Unique Business Model
·
Disease Focus
·
Intellectual property and proprietary know-how
based product basket
·
·
World-class Manufacturing facilities
·
International quality standards and
certifications
·
Large scale manufacturing capacities
·
Enjoying significant cost advantage
·
Product development and regulatory capabilities
·
Global Brands
·
Market Leadership
·
Extensive Sales and Distribution network
· Highly respected among medical fraternity
BUSINESS
Therapies
·
Anesthesia
·
Plasma Volume Expanders and Blood
Products
·
Clinical Nutrition
·
Renal and Transplant
·
Oncology
·
Anti infectives
·
Infusion therapy
Market
Presence
·
Presence in 76 countries across Latin
America, Europe, Gulf, Africa, CIS,
·
Subsidiary companies, laboratories,
office infrastructure
·
Grass root marketing and brand building
·
Supplier to aid agencies
Competitive
Edge
·
1st to introduce several products in
·
No single Indian company having similar
product focus
·
Few International competitors
·
Extensive S and D network
Manufacturing
·
World class facilities designed
to produce aqueous and oil based products.
·
Contract Manufacturing
Capabilities
·
Bags
PVC/Non-PVC
Multi-chamber bags
Double bag systems
·
Glass containers
Bottles
Vials
Ampoules
·
Aseptic manufacturing
Liquid form
Oral Form
·
Lyophilization
·
Prefilled syringes
Glass
Plastic
·
Liposomal technology
·
Soft gelatin capsules
·
Blow-Fill-Seal Blow-Fill-Seal
Certifications/Recognitions
·
Accepted by international regulatory
authorities including USFDA, MHRA (UK), TGA (Australia), NAM (National Agency
for Medicine) Finland, GCC (Gulf Co-operation Council), ANVISA (Agencia
Nacional de Vigilancia Sanitaria) Brazil, INVIMA (Instituto Nacional de
Vigilancia de Medicamentos Y Alimentos) Colombia, to name a few.
·
India Manufacturing Excellence Awards
from The Economic Times and Frost and Sullivan for 3 consecutive years viz. 2007,
2008 and 2009.
·
IDMA Quality Excellence Award for 4
years.
·
Certified for ISO 9001:2000
PRESS RELEASE:
FITCH AFRMS CLARIS
LIFESCIENCES LIMITED AT 'FITCH A-(IND)'
Reuters; Fri, 09 Mar,
2012 09:31 AM IST
March 09 - Fitch Ratings has affirmed India-based Claris Lifesciences Limited's (Claris) National Long-Term rating at 'Fitch A- (ind)' with a Stable Outlook. A full rating breakdown is provided at the end of this commentary.
The affirmed ratings reflect Claris' comfortable credit metrics. As at December 31, 2011, Claris' adjusted debt/ebitda was below 2.0x. The agency expects the company's credit metrics to remain comfortable (below 2.0x) over the short to medium time frame. Furthermore, the rating also takes into account the following factors: Claris' focus as a manufacturer of injectibles that are used in the treatment of critical illnesses, its wide range of delivery systems and strong presence in the domestic IV fluid market and emerging markets.
Claris is expected to incur additional capex in 2012 and 2013, over and above the stated Initial public Offering (IPO) funded capex. This would mainly be used for expanding its capacity in IV fluids. However, this is not expected to result in a significant increase in debt due to expected gains in revenue, business operating margins and no major deterioration in its working capital cycle. As on December 31, 2011, Claris' total debt was INR 4.1 bn compared to INR 3.6 bn in the prior year. The agency also notes and has factored into the rating Claris' comfortable liquidity profile. For calendar year 2011 (CY11), cash flow from operations continued to remain positive and working capital limits were within the permissible range.
The company's revenues, operating profit and margins are likely to continue to come from domestic and emerging markets after CY11 and in the short to medium term. The construction of new hospitals will boost demand for IV fluids, and a price revision in the latter will help to drive growth further in the domestic market. Claris' growth in emerging economies will come from an increase in the number of product registrations in new and existing markets.
Claris' revenue growth in the regulated markets could remain constrained in the short term by the US Food and Drug Administration (USFDA) ban. Nonetheless, a loss of US revenues would be compensated by revenues from the robust demand for Claris' anesthetic product propofol in the EU. Fitch notes that the company is in the process of resolving the ban and the outcome is expected by CY12 pending the results of a re-inspection of the facility by the USFDA.
Positive rating guidelines include a successful resolution of the USFDA issue, sustained demonstration of growth in its regulated markets and adjusted debt/ebitda of below 1.0x on a sustained basis. However, an adjusted debt/EBITDA of above 2.0x on a sustained basis would be a negative rating guideline.
Claris' revenue growth was flat at INR7.4bn during CY11. This was mainly due to lower regulated market revenues – a result of the USFDA ban and a delay in product registrations in the EU. Operating margins remained at 2010 levels, i.e. 32%, despite lower than anticipated growth.
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.55.26 |
|
|
1 |
Rs.86.80 |
|
Euro |
1 |
Rs.69.63 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.