MIRA
INFORM REPORT
|
Report Date : |
10.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
SHARON BIO- MEDICINE LIMITED |
|
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|
Registered Office : |
W-34, 34/1 M.I.D.C., Taloja, Raigad-410208, |
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|
Country : |
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|
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|
Financials (as on) : |
30.06.2011 |
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|
Date of Incorporation : |
19.06.1989 |
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Com. Reg. No.: |
11-52251 |
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Capital Investment / Paid-up Capital : |
Rs.105.569 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24110MH1989PLC052251 |
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|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS19367F |
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PAN No.: [Permanent
Account No.] |
AAACS8457L |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
stock exchange. |
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Line of Business : |
Subject is engaged in Bulk Drugs and Drug Intermediates. |
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|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
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 7900000 |
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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 an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A 1 [Non Fund Based-Short Term Bank Facilities] |
|
Rating Explanation |
Very strong degree of safety. It carry lowest credit risk. |
|
Date |
17.04.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A – [Long Term Bank Facilities] |
|
Rating Explanation |
Adequate degree of safety. It carry low credit risk. |
|
Date |
17.04.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
W-34, 34/1 M.I.D.C., Taloja, Raigad-410208, Maharashtra, India |
|
Tel. No.: |
91-22-27410490/ 27902070 |
|
Fax No.: |
91-22-27411394 |
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E-Mail : |
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Website : |
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Head Office : |
Plot No. 163, SMT Janakidevi Public School Road, SVP Nagar, Andheri
(West), Mumbai-400053, Maharashtra, India |
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Factory 2 : |
Khasra No. 102l, 1028, 1030 and 1037, Central Hope Town, Sillaqui,
District Dehradoon-248197, |
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Factory 3 : |
Plot No. L-6, MIDC, TAloja, District Raigad, Maharashtra, India |
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Admin Office : |
312, C Wing, BSEL Tech Park, Sector – 30 (A), Vashi, Navi
Mumbai-400005, Maharashtra , India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Ms. Savita Gowda |
|
Designation : |
Managing Director |
|
Qualification : |
BSC (Chemistry) MBA |
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|
Name : |
Mr. Lalita Misra |
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Designation : |
Whole Time Director |
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Qualification : |
Post Graduate in Business Administration From |
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Name : |
Mr. Mohan P Kala |
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Designation : |
Director |
|
Qualification : |
Chartered Accountant |
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Date of Appointment : |
13.02.1995 |
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|
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Name : |
Mr. Vijay Kirpalani |
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Designation : |
Whole Time Director |
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Qualification : |
B.E in Chemical |
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|
Name : |
Dr. V N Badoni |
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Designation : |
Independent Director |
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Qualification : |
Msc. In Chemistry |
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|
Name : |
Mr. Drunal Shah |
|
Designation : |
Independent Director |
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Qualification : |
B.E. (Chemical) |
|
Date of Appointment : |
25.09.2009 |
|
|
|
|
Name : |
Mr. Harish Palecanda |
|
Designation : |
Independent Director |
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Qualification : |
B.com |
|
Date of Appointment : |
25.09.2009 |
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|
|
Name : |
Mr. Sanjay Shah |
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Designation : |
Independent Director |
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Qualification : |
M.Sc. |
|
Date of Appointment : |
15.11.2006 |
|
|
|
|
Name : |
Dr. Nivvedita Patil Kartik |
|
Designation : |
Independent Director |
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Qualification : |
Bachelor of Medicine and Surgery and Diploma in Ophthalmic Medicine
and Surgery |
KEY EXECUTIVES
|
Name : |
Mr. Samsad Alam Khan |
|
Designation : |
Company Secretary |
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|
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|
Name : |
Jagdish Patel and Company |
|
Designation : |
Company Secretaries (in practice) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
As
a % of (A+B) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3501450 |
33.17 |
|
|
2861325 |
27.10 |
|
|
6362775 |
60.27 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
6362775 |
60.27 |
|
(B) Public Shareholding |
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|
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|
3050412 |
28.89 |
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|
485435 |
4.60 |
|
|
319266 |
3.02 |
|
|
339012 |
3.21 |
|
|
180975 |
1.71 |
|
|
150000 |
1.42 |
|
|
8037 |
0.08 |
|
|
4194125 |
39.73 |
|
Total Public shareholding (B) |
4194125 |
39.73 |
|
Total (A)+(B) |
10556900 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
10556900 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Bulk Drugs and Drug Intermediates. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Shyam C Agrawal and Company Chartered Accountant |
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Subsidiary Company: |
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Associates : |
·
Ramco Properties Private Limited ·
Revon Finance and Investments Private Limited ·
Bagulwani Trading and Investments Private Limited ·
Venus Finance and Investments Private Limited ·
Sharon Biotech Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20250000 |
Equity Shares |
Rs. 10/- each |
Rs.202.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10556900 |
Equity Shares |
Rs. 10/-
each |
Rs.105.569
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
105.569 |
105.569 |
105.569 |
|
|
2] Share Application Money |
547.500 |
80.100 |
80.100 |
|
|
3] Reserves & Surplus |
1333.516 |
1044.083 |
875.446 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1986.585 |
1229.752 |
1061.115 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
2570.891 |
2114.398 |
1487.928 |
|
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2] Unsecured Loans |
865.305 |
1311.244 |
1136.152 |
|
|
TOTAL BORROWING |
3436.196 |
3425.642 |
2624.080 |
|
|
DEFERRED TAX LIABILITIES |
46.572 |
33.515 |
15.459 |
|
|
|
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TOTAL |
5469.353 |
4688.909 |
3700.654 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
1808.487 |
1837.695 |
561.208 |
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Capital work-in-progress |
270.367 |
227.436 |
1069.058 |
|
|
|
|
|
|
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|
INVESTMENT |
38.823 |
41.329 |
12.904 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1552.137
|
1166.661 |
896.593
|
|
|
Sundry Debtors |
1925.350
|
1587.720 |
1334.579
|
|
|
Cash & Bank Balances |
38.399
|
23.882 |
33.483
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
225.873
|
123.780 |
64.718
|
|
Total
Current Assets |
3741.759
|
2902.043 |
2329.373 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
323.557
|
263.044 |
226.515
|
|
|
Other Current Liabilities |
0.000
|
0.000 |
0.000
|
|
|
Provisions |
66.526
|
56.621 |
45.821
|
|
Total
Current Liabilities |
390.083
|
319.665 |
272.336
|
|
|
Net Current Assets |
3351.676
|
2582.378 |
2057.037
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.071 |
0.447 |
|
|
|
|
|
|
|
|
TOTAL |
5469.353 |
4688.909 |
3700.654 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6060.466 |
4964.988 |
4197.912 |
|
|
|
Other Income |
11.218 |
15.697 |
18.323 |
|
|
|
TOTAL (A) |
6071.684 |
4980.685 |
4216.235 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
5048.012 |
4190.860 |
3647.770 |
|
|
|
Manufacturing Expenses |
192.642 |
151.383 |
76.918 |
|
|
|
Administrative Expenses |
96.886 |
79.101 |
72.878 |
|
|
|
Selling and Other Expenses |
17.291 |
28.621 |
11.302 |
|
|
|
Loss on sale of Motor cars |
0.198 |
1.319 |
0.034 |
|
|
|
Loss on Derivation |
0.000 |
15.197 |
0.000 |
|
|
|
Loss on Sale of Shares |
1.412 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
5356.441 |
4466.481 |
3808.902 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
715.243 |
514.204 |
407.333 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
268.081 |
209.988 |
143.632 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
447.162 |
304.216 |
263.701 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
82.440 |
63.998 |
41.790 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
364.722 |
240.218 |
221.911 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
53.057 |
53.055 |
35.887 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
311.665 |
187.163 |
186.024 |
|
|
|
|
|
|
|
|
|
|
RESERVE FOR MTM DERIVATIVES WRITTEN BACK |
0.000 |
41.500 |
-- |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
600.844 |
478.483 |
440.680 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
30.000 |
30.000 |
30.000 |
|
|
|
Reserve for Premium on FCCB |
60.750 |
57.776 |
61.900 |
|
|
|
Proposed Dividend |
19.002 |
15.835 |
41.500 |
|
|
|
Provision for Dividend Tax |
3.229 |
2.691 |
2.153 |
|
|
BALANCE CARRIED
TO THE B/S |
912.509 |
707.147 |
478.483 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
29.52 |
-- |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2011 |
31.12.2011 |
31.03.2012 |
30.06.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1743.650 |
1968.460 |
2054.420 |
2090.760 |
|
Total Expenditure |
1521.510 |
1732.110 |
1816.760 |
1846.080 |
|
PBIDT (Excl OI) |
222.140 |
236.350 |
237.660 |
244.680 |
|
Other Income |
1.860 |
2.010 |
2.520 |
2.750 |
|
Operating Profit |
224.000 |
238.360 |
240.180 |
247.430 |
|
Interest |
82.150 |
86.590 |
80.130 |
88.280 |
|
PBDT |
141.850 |
151.770 |
160.050 |
159.150 |
|
Depreciation |
24.690 |
24.190 |
23.620 |
20.150 |
|
Profit Before Tax |
117.160 |
127.580 |
136.430 |
139.000 |
|
Tax |
20.280 |
29.300 |
20.210 |
20.520 |
|
Profit After Tax |
96.880 |
98.280 |
116.220 |
118.480 |
|
Net Profit |
96.880 |
98.280 |
116.220 |
118.480 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 |
30.06.2010 |
30.06.2009 |
|
PAT / Total Income |
(%) |
5.13
|
3.76 |
4.41
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.02
|
4.84 |
5.29
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.57
|
5.07 |
7.68
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.19 |
0.21
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.93
|
3.05 |
2.73
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
9.59
|
9.08 |
8.55
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
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 |
No |
|
30] |
Major Shareholders, if available |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
OPERATIONAL
PERFORMANCE:
In terms of its total income, both on Standalone and
consolidated basis. While Standalone above total Income stood at Rs.6071.684
Millions the consolidated turnover was Rs.6282.250 Millions. The Standalone
Profit
in current year 2010-11 is Rs.311.665 Millions against Rs.187.163
Millions in the previous year 2009 – 2010.
The Positive impact of increasing Exports and Domestic Sales and
higher income levels overcame the negative impact of increasing input cost and
other related costs. This has further pushed The Company to achieve Total
Income of Rs.6071.684 Millions as compared to the Total
Income of Rs.4980.685 Millions in the previous year 2009-10,
following by a massive growth in Net Profit wherein the Company posted PAT of
Rs.311.665 Millions, reflecting a growth of 66.52% as compared
to PAT of Rs.187.163 Millions in the previous year
2009-10.
The Company has continued to follow upward trend and has put
forth a rise in PAT and EPS by 66.52% and 66.50% respectively.
The Management has made all efforts to keep its promises of
Increasing Revenues and Market Share and the Impact of same is crystal visible
from the current financial figures.
The Consolidated Financial statements include the financial
statements of Yusur International FZE, UAE which is 100% subsidiary of Sharon
Bio-Medicine Limited.
BUSINESS
DEVELOPMENT AND PROSPECTS:
The year has been a year of growth along with healthy profitability.
The state of Art Active Pharmaceutical Plant and Toxicology Lab at Taloja, Navi
Mumbai were at Maximum Operation which has in the terms Enhanced the Turnover
of the Company along with almost Double Fold in the Profitability.
Further, Dehradun Formulation Plant which is approved by UK MHRA
Health Authorities and Canadian Health authorities etc. has also played a
significant contribution to the better Margins of the Company.
During the year the Company got two (2) Research and Development
centres approved by the Department of Science and Technology, Government of
India, New Delhi. One (1) of the R and D centre is located at Taloja, Navi
Mumbai and another is at Sillaqui, Dehradun.
Further, the company have produced and Registered many new
Products. Most of the Products have been registered in different countries
worldwide. Million of Rupees had been spent anticipating better future business
and profitability from the contribution of these products. Going forward the
company is working on Two ANDA for the development of Products keeping in mind
the Patent Expiry.
The company has got two (2) Plants which are operated as per US
FDA standards. One is located at Taloja, Navi Mumbai and another at Sillaqui,
Dehradun. The company is in process for getting the US FDA approval for both
the Plants, results for the same may be anticipated in near future. This will
contribute not only to the business and profitability but also strengthen the
capabilities of the Management. US FDA approval will surely enhance the overall
Worth of the company along with US FDA approved Plants.
MANAGEMENT
DISCUSSION AND ANALYSIS
MISSION
AND BUSINESS STRATEGY:
THEIR
VISION
• They aim at earning the reputation of being a reliable manufacturer
and a force to reckon with the area of production of Chemical Intermediates,
Bulk Actives, Toxicology and Pharmaceutical Formulations.
• They aim at being considered a benchmark when it comes to
production efficiency and excellence across the globe.
• They see ourselves in the future as contributing to the
success of their customers
THEIR
MISSION
While aligning all short and long-term strategies with their
‘Vision’ they shall,
• Put their best foot forward in their R and D efforts to
develop important generic alternatives for new drugs.
• Create an operations environment that balances key objectives,
quality and costs with a resultant outcome that gives us the competitive
advantage.
• Delivering superior customer service and shareholder value.
• “Dedicate ourselves to the pursuit of providing a respectful
and rewarding work environment for their employees.
SHARON AS
AN INTEGRATED COMPANY
Today Sharon have a world class USFDA approvable Active Pharma
Ingredient plant, another USFDA Approvable Formulation plant and one Good
Laboratory Practices Toxicology unit certified by Govt. of India, Ministry of
Science and Technology, New Delhi. Further, one FDA approved Active and
Intermediate plant and two Research and Development centers approved by Ministry
of Science and Technology Govt. of India, New Delhi. Based on above facts
Sharon is into pre clinical trials, Research and Developments, manufacturing of
Active and Intermediate Pharma products, and manufacturing of Finished Dosages.
This is how Sharon is called as a fully Integrated Company.
INDIAN
PHARMA IN 2015:
Emerging markets India and China will figure in the top 10
pharma markets of the world by 2015, an Ernst and Young report has said. The
report has identified India as the preferred choice for outsourcing in the area
of late stage drug discovery, shared services and complex manufacturing, while
China has been the preferred market for
building blocks and intermediates.
The other major emerging markets are likely to be Brazil,
Russia, Venezuela, Turkey and Korea, according to OPPI and Ernst and Young’s
latest report on “India emerging: Pharma’s evolving business models”. As per
Ernst and Young, Global MNCs that have entered India have developed a deep
understanding of their target customers. They have broadened the range of their
products, adopted unconventional partnership models to increase access and
tested new pricing and marketing approaches.
RESEARCH
AND DEVELOPMENT:
In the latest addition this year Sharon has got two Research and
Development Centers approved from Ministry of Science and Technology, New
Delhi. Today Sharon is developing the process and different routes for some of
the products in its R and D Centre. The approval of R and D Centre will benefit
not only in product developments and reduction in the overall price of the
products but also in getting 200% deduction of expenses incurred.
INDIAN
PHARMACEUTICAL R AND D SCENARIO –
The Indian Pharmaceutical industry has grown significantly in the
last three decades and currently tops the chart amongst India’s science based
industries with wide ranging capabilities in the complex field of drug
manufacture and technology. India’s Pharma Industry is well known to be generic
dominated as it is for the lack of R and D based new and novel drugs. The
global generic market is estimated to be US $ 84 billion of which India’s share
is US$ 19 billion. With 10% of global production, India ranks 3rd by volume and
14th by value (1.5%). Lower value of Indian exports is mainly due to at least
50% less value in comparison to the value of most other countries. The low
value results from Indian industry being Generic centric and low in terms of R
and D intensity in comparison to countries like US, Japan, Belgium and France.
Because of risks related to profitability, there are very few companies working
beyond process development or in NCE/NBE discovery research.
Despite poor profitability, India’s pharmaceutical industry has
been growing at record levels in terms of volume in recent years. Now in
recession rid world, India has unprecedented opportunities in number of fields
including, NCE/NBE discovery, Novel Formulations, Innovative drugs,
NDDS-Liposomal and Nano Drugs, Toxicology, Clinical Trials, etc. The domestic
industry’s reputation as Generics capital of the world and Global dependence on
India as source of low priced high value drugs has poised Indian companies to
add products from significant blockbuster patent expires over the next few
years, though it would allow continuity of sustenance without R and D. However,
with its enormous advantages including a large, well educated, skilled and
English speaking work force, improving regulatory structure, India has the
potential to become the Global Hub for Bio-Pharma discovery research,
manufacturing, exporting and healthcare services within the next decade. There
is, however, also the recognition of a number of constraints in achieving such
a goal. World class innovation requires world class R and D in adequate numbers.
While India can boast of large numbers graduating in Science and Engineering,
the Human Resources required for modern day pharma research are severely
lacking both in the industry and in the Government in key areas like
Toxicology, Clinical Research, QC/QA/Documentation, Computer Modeling,
Bioinformatics, Regulatory issues etc.
Word class R and D requires matching infra-structure. Presently,
sophisticated and specialized instruments are unavailable, inaccessible, or
underutilized and poorly maintained. In recent years there has been a lot of
improvement in regulatory infra-structure in the country but it needs to be
strengthened in line with international regulatory landscape.
India is an emerging hub for Contract Research, Bio-pharma,
Clinical Trials and Clinical Data Management. The industry needs to strategies
and the Government Policies need to complement to attract investment by
enabling healthy returns on investments and re-investable profits for R and D.
India is surely and silently losing ground to its competitors leading to
increasing consolidation, Acquisitions and Mergers of Indian companies with
MNCs. Indian companies find it extremely tough to run profitably and invest in
the future while MNCs understand that this is way to deal with price
undercutting by Generic companies. Loud and clear message from the global
pharma industry is to either contribute to RandD or get out. This message needs
to be understood and addressed constructively by short term and long term
planning, enable investments in R and D for keeping Indian companies profitable
for sustenance and growth. The need to bring Indian Pharma industry to strongly
founded growth track requires building internationally competitive
infrastructure and facilities for continued innovation post haste through
synergy between Government and Industry. To address the challenge of
international competitiveness India requires building its innovation
capabilities in a focused manner through synergy between Government policies
and Academic leadership and Industry’s navigation.
GLOBAL
OVERVIEW OF R AND D INITIATIVES:
It has been reported that in global pharmaceutical industry 85%
of the medicines are produced by North America, Europe, Japan and Latin America
and the developed nations hold 97% of the total patents worldwide. Unlike the
common perception, that China is attracting a significant part of the global
investments towards R and D, latest data of Med TRACK revealed that only 15% of
all drugs development is taking place in Asiapacific, despite the largest
growth potential of the region in the world. Expectedly, there is broad
generality in the approaches everywhere. However, some distinct policies and
practices are important to consider for optimizing Indian R and D for Drug
Development and Discovery.
CONCLUSION:
To achieve the goal of making India a R and D hub for Drug
Development and Discovery, the country have to accelerate action plans to
provide needed infrastructure, financial support and incentives, trained human
resource, protection for IP, financially secure future to R and D
professionals, investible profits to R and D investing companies, compulsory
health insurance to ensure access to affordable healthcare and profitability to
the Biopharmaceutical industry, and ensure share of innovative products in all
public and private procurements.
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Lab Equipments
·
Electrical Fittings
·
Office Equipments
·
Motor Car
·
Furniture and Fixture
·
Telephone System
·
Computer
·
Air Conditioners
AS PER WEBSITE
HISTORY:
·
1995: Current management took over and started
manufacturing Pharma Intermediates.
·
1997: Started manufacturing APIs -launched its
first Trimetazidine di hydrochloride (Cardiovascular drug)
·
2000: Came with Public offering of 25% Shares.
Issue oversubscribed by 3.85 times. Set up a RandD Block to carry Process
synthesis for APIs and Intermediates.
·
2005: Hon. Finance Minister of India Shri. P
Chidambaram put company on the INDO NEXT at The Bombay Stock Exchange Company
was awarded with 150 9001-2000 accreditation by BV UKAS and BVQI - ANAB.
·
2006: Construction of a State of the Art
Formulation Unit for Solid Dosages started at Dehradun (near New Delhi)
Estimated of the Project US$ 8 million.
·
2007: Commissioning of the Formulation Plant.
Started supplementary formulations to reputed Pharmaceutical Companies in India
Contract Manufacturing Basis.
·
2009: Set Up and Operationlised a new business
division by SA-FORD dedicated to Toxicological Studies. Set Up and
Operationlised a State of the Art API plant (UNIT- Taloja (near Mumbai) which
enables them to offer a wide variety services to the customers.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
|
1 |
Rs.86.97 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
63 |
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.