MIRA INFORM REPORT
|
Report Date : |
05.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
CIPLA LIMITED |
|
|
|
|
Registered
Office : |
289, JBB Marg, Bellasis Road, Mumbai Central, Mumbai – 400008,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
17.08.1935 |
|
|
|
|
Com. Reg. No.: |
11-002380 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1605.800
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24239MH1935PLC002380 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMC00352C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturers and Distributors of Drugs and Healthcare Products. |
|
|
|
|
No. of Employees
: |
2200 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 302000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a well established and a reputed company having good track record. Financial position of the company appears to be sound. Directors are experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
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 |
Long term Bank facilities : AAA |
|
Rating Explanation |
High degree of safety. It carry lowest
credit risk |
|
Date |
March 2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term Bank facilities : A1+ |
|
Rating Explanation |
Highest degree of safety. It carry lowest
credit risk |
|
Date |
March 2013 |
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/ Corporate Office : |
289, JBB Marg, Bellasis Road, Mumbai Central, Mumbai – 400008,
Maharashtra, India |
|
Tel. No.: |
91-22-23095521 / 23082891 / 23023272 / 23025272 |
|
Fax No.: |
91-22-23070013 / 23070393 / 85 / 23008101 |
|
E-Mail : |
|
|
Website : |
http://www.cipla.com |
|
|
|
|
Factory 1: |
Virgonagar, Old Madras Road, Bangalore – 560049, Karnataka, India |
|
|
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Factory 2: |
Bommasandra-Jigani Link Road, Industrial Area, KIADB 4th Phase, Bengaluru - 560099, Karnataka, India |
|
|
|
|
Factory 3: |
MIDC, Patalganga, District Raigad – 410220, Maharashtra, India |
|
|
|
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Factory 4: |
MIDC Industrial Area, Kurkumbh, Daund District Pune - 413802, Maharashtra, India |
|
|
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Factory 5: |
Verna Industrial Estate, Verna, Salcette, Panaji – 403722, Goa, India |
|
|
|
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Factory 6: |
Village Malpur Upper, P.O. Bhud, Nalagarh, Baddi, District Solan -173205, Himachal Pradesh, India |
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|
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Factory 7: |
Village Kumrek, P.O. Rangpoo-737132, East District, Sikkim |
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|
|
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Factory 8: |
Indore SEZ, Phase ll, Sector III, Pharma Zone, P.O. Pithampur, District Dhar -454774, Madhya Pradesh, India |
|
|
|
|
Sales Office: |
Located At : ·
·
· Kolkata · Chennai ·
·
·
·
·
·
· Ambala Cantt ·
·
·
· Rajasthan ·
· Ahmedabad ·
· Mumbai · Madhya Pradesh · Pune ·
|
|
|
|
|
Branch Office : |
289, Bellasis Road, Dimitkar, Mumbai – 400008, Maharashtra, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Dr. Y.K. Hamied |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. M.K. Hamied |
|
Designation : |
Joint Managing
Director |
|
|
|
|
Name : |
Mr. S. Radhakrishnan |
|
Designation : |
Whole-time
Director |
|
|
|
|
Name : |
Dr. H.R. Manchanda |
|
Designation : |
Non-Executive
Directors |
|
|
|
|
Name : |
Mr. Ramesh Shroff |
|
Designation : |
Non-Executive
Directors |
|
|
|
|
Name : |
Mr. V.C. Kotwal |
|
Designation : |
Non-Executive Directors |
|
|
|
|
Name : |
Mr. M.R. Raghavan |
|
Designation : |
Non-Executive
Directors |
|
|
|
|
Name : |
Mr. Pankaj Patel |
|
Designation : |
Non-Executive
Directors |
|
|
|
|
Name : |
Dr. Ranjan Pai |
|
Designation : |
Non-Executive
Directors |
KEY EXECUTIVES
|
Name : |
Dr. K.A. Hamied |
|
Designation : |
Founder (1898-1972) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
122720500 |
15.38 |
|
|
6022791 |
0.75 |
|
|
128743291 |
16.13 |
|
|
|
|
|
|
166742687 |
20.90 |
|
|
166742687 |
20.90 |
|
Total
shareholding of Promoter and Promoter Group (A) |
295485978 |
37.03 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
40268530 |
5.05 |
|
|
1208686 |
0.15 |
|
|
53539093 |
6.71 |
|
|
178602927 |
22.38 |
|
|
273619236 |
34.29 |
|
|
|
|
|
|
47930968 |
6.01 |
|
|
|
|
|
|
53172654 |
6.66 |
|
|
100147483 |
12.55 |
|
|
27603000 |
3.46 |
|
|
614793 |
0.08 |
|
|
155103 |
0.02 |
|
|
26307284 |
3.30 |
|
|
525761 |
0.07 |
|
|
59 |
0.00 |
|
|
228854105 |
28.68 |
|
Total Public
shareholding (B) |
502473341 |
62.97 |
|
Total (A)+(B) |
797959319 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
4962038 |
0.00 |
|
|
4962038 |
0.00 |
|
Total
(A)+(B)+(C) |
802921357 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Distributors of Drugs and Healthcare Products. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Bulk Drugs (including Malts) |
Tonne |
1492.9 |
1601.2 |
|
Tablets and Capsules |
Million |
17496.1 |
17935.3 |
|
Liquids |
Kilolitre |
3191.5 |
9009.8 |
|
Creams |
Tonnes |
689.0 |
898.9 |
|
Aerosols/Inhalation Devices |
Thousand |
143452.5 |
55256.9 |
|
Injections/Sterile Solutions |
Kilolitre |
1739.0 |
2525.9 |
|
Others |
|
-- |
2061.7 |
NOTES
· In terms of press note No. 4 (1994 series) dated 25th October 1994 issued by the Department of Industrial Development, Ministry of Industry, Government of India and Notification No. S.O. 137 (E) dated 1st March 1999 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government of India, Industrial licensing has been abolished in respect of bulk drugs and formulations. Hence there are no registered/licensed capacities for these bulk drugs and formulations.
· Installed capacity being effective operational capacity has been reviewed and calculated on shift basis for formulations and on a continuous basis for active pharmaceutical ingredients and drug intermediates. The installed capacity may, therefore, vary according to the production mix. In addition, installed capacity does not include the installed capacity of contract manufacturing sites.
· Actual production for all dosage forms includes production carried out by Cipla at contract manufacturing sites.
· The installed capacity is as certified by the management and not verified by the auditors, this being a technical matter.
· Actual production includes production of goods captively consumed.
GENERAL INFORMATION
|
No. of Employees : |
2200 (Approximately) |
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|
|
|||||||||||||||
|
Bankers : |
Ř
Bank of Baroda Ř
Canara Bank Ř
Corporation Bank Ř
Indian Overseas Bank Ř
Standard Chartered Bank Ř
The Hongkong and Shanghai Banking Corporation
Limited Ř Union Bank of
India |
|||||||||||||||
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|
|
|||||||||||||||
|
Facilities : |
|
|||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
V. Sankar Aiyar and Company Chartered Accountants |
|
|
|
|
Auditors 2 : |
|
|
Name : |
R.G.N. Price and Company Chartered Accountants |
|
|
|
|
Subsidiaries (held directly) : |
Ř
Cipla FZE Ř
Goldencross Pharma Private Limited Ř
Cipla (Mauritius) Limited Ř Meditab
Specialities Private Limited |
|
|
|
|
Subsidiaries (held indirectly) : |
Ř
Cipla (UK) Limited Ř
Cipla-Oz Pty Limited Ř
STD Chemicals Limited Ř
Medispray Laboratories Private Limited Ř
Sitec Labs Private Limited Ř Four M Propack
Private Limited Ř
Meditab Holdings Limited Ř
Meditab Pharmaceuticals South Africa (Pty)
Limited Ř
Meditab Specialities New Zealand Limited Ř Cipla İlaç
Ticaret Anonim Şirketi (w.e.f. 20th February 2012 |
|
|
|
|
Associates : |
Ř
Quality Chemical Industries Limited Ř
Stempeutics Research Private Limited Ř
Biomab Holding Limited (w.e.f. 1st September
2011) Ř Jiangsu Cdymax
Pharmaceuticals Company Limited (w.e.f. 10th February 2012) |
|
|
|
|
Joint Venture : |
Aspen-Cipla Australia Pty Limited (w.e.f. 4th November 2011) |
|
|
|
|
Entities over
which Key Management Personnel are able to exercise significant influence : |
Ř
Cipla Public Charitable Trust Ř
Okasa Private Limited Ř
Okasa Pharma Private Limited Ř Cipla Foundation |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
87,50,00,000 |
Equity Shares |
Rs. 2/- each |
Rs. 1750.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,39,24,752 |
Equity Shares |
Rs. 2/- each |
Rs. 1607.800
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80,29,21,357 |
Equity Shares |
Rs. 2/- each |
Rs. 1605.800
Millions |
|
|
|
|
|
Ř There is no change
in the shares outstanding at the beginning and at the end of the reporting date
and immediately preceding reporting date.
Ř Details of
Shareholders holding more than 5 percent shares in the Company
|
Particulars |
31.03.2012 |
|
|
|
Number of shares |
% Holding |
|
Y.K. Hamied |
124827750 |
15.55 |
|
Farida Hamied |
41914937 |
5.22 |
|
Sophie Ahmed |
45982000 |
5.73 |
|
Life Insurance Corporation of India |
80153536 |
9.98 |
Ř Shares allotted as
fully paid-up by way of Bonus shares (during 5 years preceding 31st March 2012)
46,63,74,814
equity shares of Rs. 2 each were allotted as Bonus shares by capitalisation of
General Reserve and Securities Premium Account in May 2006.
Ř Terms and Rights
attached to Equity Shares
The Company has
only one class of equity shares having a par value of Rs. 2 per share. Each
holder of equity share is entitled to one vote per share. The Company declares
and pays dividends in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing
Annual General
Meeting.
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of Equity Shares
held by the shareholder.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1605.800 |
1605.800 |
1605.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
73897.000 |
64523.700 |
57535.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
75502.800 |
66129.500 |
59140.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
100.000 |
29.500 |
4.100 |
|
|
2] Unsecured Loans |
22.000 |
4384.400 |
46.600 |
|
|
TOTAL BORROWING |
122.000 |
4413.900 |
50.700 |
|
|
DEFERRED TAX LIABILITIES |
2324.500 |
2124.500 |
1791.500 |
|
|
|
|
|
|
|
|
TOTAL |
77949.300 |
72667.900 |
60983.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
30026.600 |
28680.200 |
20111.700 |
|
|
Capital work-in-progress |
3434.500 |
2530.700 |
6842.400 |
|
|
|
|
|
|
|
|
INVESTMENT |
10351.500 |
5702.800 |
2651.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
18245.000
|
18831.600
|
15125.800
|
|
|
Sundry Debtors |
15193.100
|
14970.400
|
15527.100
|
|
|
Cash & Bank Balances |
550.600
|
841.300
|
608.400
|
|
|
Other Current Assets |
542.200
|
3.600
|
47.000
|
|
|
Loans & Advances |
11594.400
|
12688.800
|
12215.900
|
|
Total
Current Assets |
46125.300
|
47335.700
|
43524.200
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6003.900
|
7750.900
|
8054.000
|
|
|
Other Current Liabilities |
3579.400
|
1631.800
|
1928.500
|
|
|
Provisions |
2405.300
|
2198.800
|
2163.700
|
|
Total
Current Liabilities |
11988.600
|
11581.500
|
12146.200
|
|
|
Net Current Assets |
34136.700
|
35754.200
|
31378.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
77949.300 |
72667.900 |
60983.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
69775.000 |
61351.600 |
53595.200 |
|
|
|
Other Income |
1483.000 |
2987.200 |
3537.200 |
|
|
|
TOTAL (A) |
71258.000 |
64338.800 |
57132.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
23008.500 |
28604.300 |
24529.800 |
|
|
|
Purchase of Traded Goods |
5555.500 |
-- |
-- |
|
|
|
Changes in Inventories of Finished
Goods, Work-in-Process and Traded Goods |
112.400 |
-- |
-- |
|
|
|
Employee Benefits Expense |
7282.100 |
4642.000 |
3188.700 |
|
|
|
Other Expenses |
17997.900 |
14640.700 |
12725.100 |
|
|
|
Research and Development Expenses |
-- |
2597.900 |
2506.900 |
|
|
|
Exceptional Item being sale of branch and other related rights |
-- |
0.000 |
(950.000) |
|
|
|
TOTAL (B) |
53956.400 |
50484.900 |
42000.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
17301.600 |
13853.900 |
15131.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
266.300 |
51.400 |
229.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
17035.300 |
13802.500 |
14902.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2820.700 |
2288.600 |
1652.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
14214.600 |
11513.900 |
13249.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2975.000 |
1910.000 |
2435.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
11239.600 |
9603.900 |
10814.900 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
22979.300 |
16990.700 |
9548.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
-- |
642.300 |
-- |
|
|
|
Proposed Dividend |
1600.000 |
1605.800 |
1605.800 |
|
|
|
Tax on Dividend |
260.000 |
367.200 |
266.700 |
|
|
|
Transfer to General Reserve |
1250.000 |
1000.000 |
1500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
31108.900 |
22979.300 |
16990.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
36920.300 |
33614.900 |
29005.800 |
|
|
|
Technical Know-how/ Fees |
295.500 |
547.600 |
1537.600 |
|
|
|
Others |
65.900 |
14.200 |
33.400 |
|
|
TOTAL EARNINGS |
37281.700 |
34176.700 |
30576.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials / Packing Materials |
9543.400 |
11707.700 |
8461.400 |
|
|
|
Components and Spare Parts |
324.200 |
417.400 |
274.600 |
|
|
|
Capital Goods |
1465.000 |
1793.900 |
1672.300 |
|
|
TOTAL IMPORTS |
11332.600 |
13919.000 |
10408.300 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
14.00 |
11.96 |
13.69 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
19581.900 |
21918.400 |
20704.900 |
|
Total Expenditure |
14183.400 |
15148.900 |
15776.000 |
|
PBIDT (Excl
OI) |
5398.500 |
6769.500 |
4928.900 |
|
Other Income |
530.600 |
641.400 |
534.800 |
|
Operating
Profit |
5929.100 |
7410.900 |
5463.700 |
|
Interest |
10.900 |
53.600 |
93.000 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
5918.200 |
7357.300 |
5370.700 |
|
Depreciation |
728.200 |
739.600 |
780.000 |
|
Profit
Before Tax |
5190.000 |
6617.700 |
4590.700 |
|
Tax |
1182.400 |
1617.600 |
1202.900 |
|
Provision and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
4007.600 |
5000.100 |
3387.800 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4007.600 |
5000.100 |
3387.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
15.77 |
14.93
|
18.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.37 |
18.77
|
24.72 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.67 |
15.15
|
20.82 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
0.17
|
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.07
|
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.85 |
4.09
|
3.58 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN 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 |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Deferred Payment Liability - Sales Tax Deferral Loan |
22.000 |
38.300 |
|
Packing Credit from Banks |
0.000 |
4346.100 |
|
Total |
22.000 |
4384.400 |
MANAGEMENT REVIEW:
2011-12
INDUSTRY STRUCTURE
AND DEVELOPMENT
The global economy
has witnessed considerable political and economic turmoil during the last year,
from uprisings in the Middle East and North Africa to the tsunami in Japan and
the debt crisis in Europe. This has resulted in general uncertainty across the
globe impacting all businesses.
India’s economy
grew by about 6.9 percent in 2011-12, its slowest in the last three years and
the Government expects it to grow by 7.6 percent in 2012-13. The country’s
economic growth has fallen below expectations as it copes with spiralling
inflation, high interest rates and a widening current account deficit.
India is expected
to play an increasing role in the global economy as demand from a growing
population continues to drive consumption. Increasingly, governance is going to
be a critical challenge and will have a significant impact on the country’s
growth rates. This will depend on the way India works towards a resolution. The
Government should also take into consideration that at a time of slow economic
growth, compounded by problems of inflation and uncertainty, any delay in the
implementation of sound policies and reforms in various sectors could result in
lasting damage to the economy. The business community is therefore looking up
to the Government for direction.
The Indian Rupee
has depreciated by more than 14 percent as compared to the US Dollar during the
financial year 2011-12. A sustained depreciation of the Rupee would benefit the
Company and the overall pharmaceutical industry due to significant contribution
from exports. However, this could also result in a deteriorating fiscal
position of the country in the long run.
The global
pharmaceutical industry, in particular the US, Europe, Japan and Australia is
witnessing price erosion in the generic business primarily due to competition.
In addition, there are the rising costs of production and compliance. All this
is exerting pressure on the margins across the industry. The Indian
pharmaceutical industry maintained its momentum and registered a growth of
about 15 percent, according to ORG-IMS statistics. This growth can be
attributed to prominent factors, such as a growing middle class population,
rapid urbanization, increase in lifestyle-related diseases and growth in the
health insurance sector.
PERFORMANCE REVIEW
The Company’s
revenue from operations during the financial year 2011-12 amounted to Rs.
70750.000 Millions against Rs. 63990.000 Millions in the previous year
recording a growth of more than 10 percent. The domestic turnover increased by
14 percent, from Rs. 2822 Millions in the previous financial year to Rs.
32130.000 Millions in the financial year. Total exports increased by 10 percent
during the year. Profit after tax of the Company increased by 17 percent to Rs.
11240.000 Millions from Rs. 9600.000 Millions in the previous financial year.
During the year,
operating margin (as a percentage of total revenue) increased by about 2
percent. This was primarily due to reduction in material cost from 47 percent
to 42 percent on account of improved realisations, reduction in input costs of
certain product categories and changes in the product mix.
PRODUCTS
The Company
introduced many new drugs and formulations during the year. Some significant
formulations are mentioned below:
Ř Adgain – vital
nutritional supplement for hair loss
Ř Capnea (caffeine
citrate injection and oral solution) – for apnoea of prematurity in infants
Ř Caspogin
(caspofungin acetate injection) – new antifungal for life-threatening fungal
infections
Ř Endobloc
(ambrisentan tablets) – first once-daily endothelin receptor antagonist for
pulmonary arterial hypertension
Ř Esomac
(esomeprazole tablets) – faster-acting PPI for acid-related disorders
Ř Evocort
(formoterol and mometasone rotacaps) – new once-daily asthma controller therapy
Ř Flavocip
(flavoxate hydrochloride tablets) – for relief of spasm of the urinary tract
Ř Glatira
(glatiramer acetate injection) – new disease-modifying drug for multiple
sclerosis
Ř HB Set (ferrous
ascorbate and folic acid) – nutritional supplement for anaemia
Ř Isablac (lactulose
and isphaghula husk granules) – combination laxative for chronic constipation
Ř Ivabeat
(ivabradine tablets) – novel drug for coronary artery disease and chronic heart
failure
Ř Lacopsy
(lacosamide tablets) – new generation antiepileptic
Ř Levepsy
(levetiracetam tablets) – adjunctive therapy for epilepsy
Ř Levepsy XR
(levetiracetam extended release tablets) – once-daily adjunctive therapy for
epilepsy
Ř Lumet (artemether
and lumefantrine tablets) – combination drug for acute malaria
Ř Montair LC Kid
(montelukast and levocetrizine syrup) – for rhinitis in children
Ř Mucophylin
(acebrophylline capsules) – mucolytic bronchodilator for asthma and COPD
Ř Nadibact
(nadifloxacin gel) – quinolone antibacterial for acne
Ř Nova M (pregabalin
and methylcobalamin capsules) – combination therapy for neuropathic pain
Ř Oflox OZ
(ofloxacin and ornidazole suspension) – combination therapy for polymicrobial
infections
Ř Olmecip Trio (olmesartan,
amlodipine and hydrochlorothiazide tablets) – novel triple drug combination for
hypertension
Ř Rospium XR
(trospium chloride capsules) – new drug for overactive bladder
Ř Sertacide
(sertaconazole nitrate cream) – for fungal skin infections
Ř Silofast
(silodosin capsules) – once-daily drug for BPH
Ř Sulbacip
(sulbactam sodium injection) – for multidrug resistant infections
Ř Triexer Forte
(metformin hydrochloride extended release, pioglitazone and glimepride tablets)
– triple combination drug for diabetes
Ř Xydap (dapoxetine
tablets) – first approved drug for premature ejaculation
The following Active Pharmaceutical Ingredients
(APIs) were successfully scaled up for commercial manufacture:
Ř Abacavir Sulphate
– nucleoside analogue for HIV/AIDS
Ř Bortezomib – proteasome
inhibitor for cancer
Ř Carmoterol –
long-acting bronchodilator for COPD
Ř Dapoxetine
Hydrochloride – for treatment of premature ejaculation
Ř Naftopidil –
selective alpha blocker for hypertension
Ř Ritonavir –
protease inhibitor for HIV/AIDS
MANUFACTURING
FACILITIES
The Company is
setting up additional R&D facilities at Vikhroli and Patalganga. It is
anticipated that operations will commence during 2012-13.
The Company is
also setting up API facilities at Patalganga, Bengaluru and Kurkumbh which are expected
to be completed in 2012-13. The total investment for these projects is
estimated to be around Rs. 5000.000
Millions.
The capacity
utilisation at the Indore SEZ factory has improved significantly compared to
the previous year and is expected to reach optimum capacity in the coming
years.
REGULATORY
APPROVALS
Several dosage
forms and APIs manufactured at the Company’s facilities continued to enjoy the
approval of major international regulatory agencies. These agencies included
the US FDA, MHRA (UK), PIC (Germany), MCC (South Africa), TGA (Australia),
Department of Health (Canada), ANVISA (Brazil), SIDC (Slovak Republic),
Ministry of Health (Kingdom of Saudi Arabia), the Danish Medical Agency and the
WHO.
OPPORTUNITIES
DOMESTIC MARKETS
In the domestic
market, Cipla continues to maintain its leadership position in various
therapeutic segments including respiratory, anti-virals, gynaecology and
urology. With an R&D team committed to constant innovation and a strong
field force of more than 7,500 people, the Company continues to introduce
several new products and dosage forms every year which offer significant
opportunities.
The Company is
actively involved in developing bio-similars/ bio-therapeutic products through
its partners in China. It is expected that the clinical trials on these drugs
will be completed in 2 to 3 years and subsequently the products will be
launched in India. These products may be targeted for international markets in
future.
The Company’s
venture into stem cell-based products is under progress with a major investment
in Stempeutics Research Private Limited, Bengaluru. Currently, clinical trials
for regulatory approvals for certain therapeutic areas are underway in India
and Malaysia. The launch of the stem cellbased products is expected in 3 years.
INTERNATIONAL
MARKETS
Cipla’s
international business continues to be a major revenue driver for the Company.
During the year, more than 53 percent of the total income originated from
international markets.
The Company’s
international business strategy is focused on an optimised product mix with a
greater thrust towards high margin products. Its strategic partnerships with
large generic pharmaceutical companies for product development and supply are
expected to yield enduring benefits for the Company in the long term.
The Company is
expanding its presence in the inhaler segment in Europe, with regulatory
approvals for a few products already in place and few more in the pipeline. In
the US, the Company is exploring all options, including filing its own
Abbreviated New Drug Applications (ANDAs).
CONTINGENT LIABILITIES
(Rs.
in millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Claims against the Company not acknowledged as Debt |
18.800 |
16.400 |
|
Guarantees |
1005.100 |
599.700 |
|
Letters of Credit |
207.500 |
365.400 |
|
Refund of
Technical Know-how/Fees on account of noncompliance of certain obligations as
per respective agreements |
271.900 |
74.500 |
|
Income Tax |
1797.300 |
2044.400 |
|
Excise
Duty/Service Tax |
295.500 |
492.300 |
|
Sales Tax |
36.400 |
40.200 |
FIXED ASSETS
Ř Freehold Land
Ř Leasehold Land
Ř Buildings and
Flats
Ř Plant and
Machinery
Ř Furniture and
Fixtures
Ř Vehicles
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30TH
SEPTEMBER 2012
(Rs. in millions)
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
20307.000 |
21458.700 |
60939.500 |
|
Other Operating Income |
397.900 |
459.700 |
1265.700 |
|
Total Income from
operations (net) |
20704.900 |
21918.400 |
62205.200 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
7400.300 |
6556.800 |
19464.100 |
|
(b) Purchases of stock-in-trade |
2777.700 |
1838.100 |
6134.300 |
|
(c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(2202.400) |
(508.900) |
(2412.600) |
|
(d) Employee benefits expense |
2586.000 |
2426.100 |
7142.100 |
|
(e) Depreciation and amortisation expense |
780.000 |
739.600 |
2247.800 |
|
(f) Other expenses |
5214.400 |
4836.800 |
14780.400 |
|
Total Expenses |
16556.000 |
15888.500 |
47356.100 |
|
Profit from Operations
before Other Income, Finance costs |
4148.900 |
6029.900 |
14849.100 |
|
Other Income |
534.800 |
641.400 |
1706.800 |
|
Profit/ Loss from
Ordinary Activities before Finance costs |
4683.700 |
6671.300 |
16555.900 |
|
Finance costs |
93.000 |
53.600 |
157.500 |
|
Profit/ Loss from Ordinary Activities before
tax |
4590.700 |
6617.700 |
16398.400 |
|
Tax Expenses |
1202.900 |
1617.600 |
4002.900 |
|
Net Profit for the period |
3387.800 |
5000.100 |
12395.500 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 2) |
1605.800 |
1605.800 |
1605.800 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
|
|
|
|
Basic and Diluted Earnings per share (`) **Not Annualised |
**4.22 |
**6.23 |
**15.44 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
502473341 |
505024288 |
502473341 |
|
Percentage of Shareholding |
62.58 |
62.90 |
62.58 |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
Nil |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
295485978 |
295485978 |
295485978 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter
group) |
100.00 |
100.00 |
100.00 |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
36.80 |
36.80 |
36.80 |
|
|
Particulars |
Quarter Ended
31.12.2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
18 |
|
|
Disposed of during the quarter |
18 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1. The Company is essentially in the pharmaceutical
business segment.
2. In 2003, the Company received notice of demand from
the National Pharmaceutical Pricing Authority, Government of India on account
of alleged overcharging in respect of certain drugs under the Drug Price
Control Order. This was contested before the jurisdictional High Courts wherein
it was held in favour of the Company. The orders were challenged before the
Hon'ble Supreme Court by the Government. The Hon'ble Supreme Court by a
separate order restored the matter to the jurisdictional High Court for
interpreting the Drug Policy on the basis of directions and principles laid
down by them and also restrained the Government from taking any coercive action
against the Company. The Company has been legally advised that on the basis of
these orders there is no probability of demand crystallising. Hence no
provision is considered necessary in respect of notice of demand aggregating to
Rs. 16549.200 Millions (inclusive of principal amount for the period July 1995
to April 2009 and interest upto January 2012).
3. The figures of the previous year have been
regrouped/recast to render them comparable with the figures of the current
year.
4. *Tax expense is inclusive of current tax and deferred
tax.
5. The results for the quarter ended 31st
December, 2012 have been subjected to Limited Review by the Statutory Auditors,
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on 6th February, 2013.
WEB DETAILS
HISTORY
Cipla’s journey began in 1935 when our founder, Dr. K. A. Hamied, set up an enterprise with the vision to make India self-sufficient in healthcare. Over the past 77 years, we have emerged as one of the world’s most respected pharmaceutical names, not just in India but worldwide.
They have 34 state-of-the-art manufacturing facilities that make Active
Pharmaceutical Ingredients (APIs) and formulations, which have been approved by
major international Regulatory Agencies. They have over 2000 products in 65
therapeutic categories; with over 40 dosage forms, covering a wide spectrum of
diseases ranging from communicable, non-communicable, common and emerging diseases
to even rare diseases.
Their Research and Development (R&D) centre is focused on developing innovative products and drug delivery systems, giving the country and the world many ‘Firsts'.
Today, they are one of the world’s largest generic pharmaceutical companies with a strong presence in over 170 countries. They maintain world-class quality across all their products and services.
Whether it’s for millions or for just a few hundreds, their journey to care for
all humanity continues.
MILESTONES
In 1935, their founder, Dr. K. A. Hamied set up Cipla to make India self-reliant in healthcare.
In 1939, Mahatma Gandhi visited Cipla and inspired our founder to make essential medicines for the country, and strive for self-sufficiency. During World War II, when India was dependent on imported medicines and there was an alarming shortage of life-saving drugs, they manufactured them for the country.
In the 1960s, they pioneered API manufacturing in the country and helped lay the foundation for the bulk drug industry in India.
In 1970, they spearheaded the New Patent Law by which an Indian pharmaceutical company was allowed to manufacture a patented product as long as the process to manufacture it was changed. This enabled Indian companies for the first time to manufacture any medicines and make them available and affordable for all Indians.
In 1978, they pioneered inhalation therapy in India with the manufacture of Metered-Dose Inhaler (MDI), at a time when the country stopped receiving imported supplies. Today, they have the world’s largest range of inhaled medication and devices.
In 1994, they launched Deferiprone, the world’s first oral iron chelator which revolutionized the treatment for thalassemia. For the first time patients with thalassemia had an option that was affordable, painless and convenient.
In 1996, they gave the world the first transparent dry powder inhaler which was so simple and easy to use, it changed the face of inhalation therapy in India.
In 2001, they pioneered the access to HIV treatment by making antiretrovirals (ARVs) available at less than a ‘Dollar a Day'. The cost of treatment dramatically fell from $12,000 per patient per year to $300 per patient per year. This caused a revolution where HIV treatment became a reality for the world and millions of lives could be saved.
During the 2005 Bird Flu epidemic, we produced an anti-flu drug within a period of 2-3 months, which would have normally taken at least 3 years to develop.
In 2012, they made a breakthrough in reducing the prices of cancer drugs, thus making world-class medicines affordable and accessible to cancer patients.
They are committed to addressing the unmet medical needs of the world by venturing into newer challenges in platform technologies, biotechnology and stem cells.
They will continue to support, improve and save millions of lives with our
high-quality drugs and innovative devices. And with the dedication of 20,000
employees, we are ready to face the future challenges of healthcare.
BOARD OF DIRECTORS
Dr. Y. K. Hamied
Dr. Y. K. Hamied is Executive Chairman of the Board,
Managing Director of Company. Dr. Hamied is qualified and eminent chemist. Having
obtained a Doctorate in chemistry from Cambridge University, he has done
research work under Lord Todd FCS, a Nobel Laureate. He joined the Company at
the age of 24 years as an officer-in-charge of research and development in
1960. He was appointed its Managing Director in 1976 and became its Chairman in
1989. He is well-respected for his varied experience of 48 years not only in
India but also internationally. Dr. Y.K. Hamied has played the lead role in
formulating the Company’s strategy and has also been actively involved in
research and development. For his distinguished service and contributions to
the pharmaceutical industry, Dr. Y.K. Hamied was awarded the Padma Bhushan, one
of the highest civilian awards in India in the year 2005.
Mr. M. K. Hamied
Mr. M. K. Hamied serves as Joint Managing Director,
Executive Director of Company. Mr. Hamied has been working as a Whole-time
Director of the Company with effect from 15th December 1983. He was
redesignated as Joint Managing Director effective from 6th December 2000. He is
a science graduate from Bombay University. Mr. Hamied along with the other
Joint Managing Director of the Company is in charge of day-to-day management of
the Company with special focus on domestic pharmaceutical markets. He has varied
experience in all functions of the Company including production, technical
areas, quality management and general administration.
Mr. V. C. Kotwal
Mr. V. C. Kotwal is Independent Non-Executive Director of Company. He is a senior advocate of Bombay High Court. He joined the Board of Directors of the Company in 1989. He is a Science and Law graduate from Bombay University. He has been in the legal profession since 1961 and has been designated as Senior Advocate since 1983.
Dr. H. R. Manchanda
Dr. H. R. Manchanda serves as Independent Non-Executive Director of Company. He has done his M.B.B.S. from Mumbai University in the year 1951. He has also completed his F.R.C.S. from England and did his second F.R.C.S. from Edinburg. He is a consultant surgeon at Breach Candy Hospital since 1960. He is also on a panel of physicians for USA Visa work at Breach Candy Hospital. He joined the Board of Directors of the Company in 1983. He was the Professor of Surgery and Head of Surgery at J. J. Hospital and Grant Medical College during the period 1960-85. He has been a postgraduate examiner for Mumbai University and was a Board Member of Haffkine Institute. He has worked with top hospitals both in India and abroad.
Mr. Pankaj B. Patel
Mr. Pankaj B. Patel serves as Independent Non-Executive Director of Company. He is a science and law graduate from Bombay University. He is an eminent lawyer practising in the field of industrial relations for nearly 20 years.
Mr. S. Radhakrishnan
Mr. S. Radhakrishnan is Whole-time Director of company since
November 12, 2010. He is a qualified Chartered Accountant, has been with the
Company for over 26 years and has experience in financial, commercial, legal
and allied areas.
Mr. M. R. Raghavan
Mr. M. R. Raghavan is Independent Non-Executive Director of
Company. Mr. M.R. Raghavan is a top Chartered Accountant. He has done his
Bachelor of Science (Mathematics and Statistics) and is a Fellow member of the
Institute of Chartered Accountants of India. He joined the Board of Directors
of the Company in the year 2002. On the social front, he has significantly
contributed on child education since 1980 and is currently involved in
pioneering projects in rural areas.
PRESS RELEASE:
28 February 2013
On February 27, 2013, Cipla Limited (“Cipla”) announced an offer to the shareholders of Cipla Medpro South Africa Limited (“Medpro”) to acquire 100% of the ordinary share capital of Medpro for ZAR 10.0 per share (the “Offer”). The Offer will be implemented via a scheme of arrangement ("Scheme") and is subject to regulatory and other approvals including approval by Medpro shareholders. The Board of Directors of Medpro have unanimously resolved to support and facilitate Cipla’s Offer and recommended to Medpro shareholders that they vote in favour of all resolutions required to implement the Scheme. The proposed acquisition will be made either directly by Cipla or by a subsidiary nominated by it and will be funded largely through internal accruals and will consider other alternatives, if required. The total consideration payable by Cipla is approximately USD 512 million or ZAR 4.5 billion1.
Speaking of the Offer, Cipla CEO Mr. Subhanu Saxena said: “South Africa is an attractive emerging market with strong projected growth for generic drugs of approximately 14% per year for the next several years. This investment is aligned with Cipla’s strategy to ascend the value‐chain by managing a front‐end sales force in a market outside India. Cipla and Medpro have enjoyed a long‐standing symbiotic relationship spanning two decades. The deal enables Cipla to strengthen Medpro’s position in the South African pharmaceutical market, support the optimisation of Medpro’s manufacturing capability and support Medpro's expansion into collaboratively identified African markets.”
Cipla Chairman, Dr. Yusuf Hamied added: “This investment is aimed at further strengthening our commitment to South Africa and the broader African continent. Patients and the healthcare landscape will benefit both from Cipla’s 77+ years of experience across products, technologies, dosage forms and Cipla’s ethos of striving hard to provide greater access to medicine.”
Morgan Stanley is acting as exclusive financial advisor and Webber Wentzel is acting as legal advisor to Cipla in connection with this transaction.
ABOUT MEDPRO
Cipla Medpro is one of South Africa's fastest growing pharmaceutical companies. The third largest pharmaceutical firm in SA, it is a leading provider of chronic medicines to the public and private sectors, with particular strength within, inter alia, the cardiovascular, antiretroviral (ARV), respiratory and neuropsychiatric categories. Medpro has 2 distribution centers in Cape Town, one in Durbanville and one in Atlas Gardens. Medpro achieved ZAR 1,080 MM of revenues for H1 2012 (ZAR 1,768 MM for CY 2011) and ZAR 227 MM of EBITDA for H1 2012 (ZAR 594 MM for CY 2011). Cipla Medpro has a market capitalisation of more than R4 billion and 446.5 million ordinary shares in issue.
ABOUT CIPLA
Cipla laid the foundation for the Indian pharmaceutical industry in 1935, with the vision to make India self‐reliant in healthcare. Over the years, Cipla has emerged as one of the most respected names not just in India but worldwide. Its state‐of‐the‐art R&D centre has given the country and the world many firsts. This includes the revolutionary AIDS cocktail for less than a dollar a day. The company has over 34 manufacturing facilities across India, and manufactures 2,000+ products in 65 therapeutic categories.
With a turnover of over US $ 1.4 billion, Cipla serves doctors and patients in over 170 countries. It has earned a name for maintaining one global standard across all its products and services. Cipla continues to support, improve and save millions of lives with its high‐quality drugs and innovative devices.
CIPLA MEDPRO
SHAREHOLDER WANTS INDIAN CO TO HIKE OFFER: REPORT
Johannesburg March 11, 2013
Cipla's offer was 17% more than the R8.55 a share it had proposed in November 2012 for buying 51% of Cipla Medpro
Sweet Consortium, which holds 18% stake in Cipla Medpro, wants India's Cipla Limited to sweeten its offer price from the proposed R10 per share for acquiring South Africa's third-largest generic drugmaker, according to a media report.
"It is normal in deals of such a nature, particularly a 100% buyout, to
have a significant premium on the price at the announcement date," Peter
Moyo, representing the Sweet Sensation consortium, told the weekly Business
Times.
JSE-listed Cipla Medpro is a South African affiliate of BSE-listed Cipla. The
companies enjoy a long-standing business relationship spanning two decades.
"The 100% deal was announced when the share was trading at about R9.50,"
Moyo was quoted as saying in the report.
On February 28, Cipla Ltd informed BSE that its Board of Directors have made a
firm offer to the Medpro board to acquire 100% of the ordinary shares of Medpro
at a price of R10.00 per share, and to settle all outstanding share options
therein.
At R10 a share, Cipla's offer was 17% more than the R8.55 a share it had
proposed in November 2012 for buying 51% of Cipla Medpro.
The total consideration payable by Cipla would be approximately USD 512 million at R10 a share. Cipla intends to delist Cipla Medpro from JSE on successful completion of the transaction.
Cipla had also said that its R10 offer was at a 46.7% premium on the value of
Cipla Medpro's share price in May 2012, when speculation around the takeover
bid first started.
Moyo said there have been significant change since then, particularly the
lucrative R1.45 billion tender won by Cipla Medpro for the supply of
anti-retroviral drugs to the South Africa government.
"The BEE shareholders would like to be part of the future and we will be
having discussions with Cipla India to see how we can deal with this,"
Moyo told the weekly.
The Board of Directors of Medpro have recommended to its shareholders to vote
in favour of the offer, Cipla had said.
The Public Investment Corporation, which holds a 4.94% BEE stake in Cipla
Medpro, had earlier indicated that it was in favour of the buyout, the report
said.
Sweet Sensation 67 (Pty) Limited (Sweet Sensation), the group of thirteen BEE
(black economic empowerment) consortiums that invested in Enaleni (now Cipla
Medpro South Africa Limited) currently has an 18.4% shareholding, Cipla Medpro
South Africa website says.
CIPLA, DRL, RANBAXY
OVERCHARGED CONSUMERS: REGULATOR
MAR 15, 2013, 03.53
PM
Pharmaceutical majors Cipla, Dr Reddy's Lab and Ranbaxy are under the surveillance of price regulator National Pharmaceutical Pricing Authority (NPPA). According to a Business Standard report, the price regulator has named some drug makers for allegedly overcharging consumers for many essential medicines, amounting to a total of Rs 23620.000 Millions over the past few years.
The report says that Cipla has overcharged consumers on several essential medicines such as formulations based on salbutamol, cloxacillin, ciprofloxacin and norfloxacin. Prices of all these medicines are fixed by NPPA and the regulator found the company selling these medicines at a higher retail price. An amount of over Rs 1,600 crore is pending against Cipla for allegedly overcharging consumers, the report quoted a government official.
While the alleged overcharging by Cipla spreads over around 10 years, that by Dr Reddy's Labs and Ranbaxy spans across the last five-six years, according to the official.
Most of these companies have, however, challenged the claims made by the regulator in court, and therefore neither NPPA nor the government could take any action against them.
The report quotes the official saying that Cipla challenged the overcharging claims made by NPPA by contesting packaging and conversion cost norms framed by the regulator between 2001 and 2003. While fixing the prices, the regulator takes into account such costs as well. Some companies also reason that their composition is different and therefore the price fixed by the regulator does not apply on their drugs.
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 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. 54.65 |
|
|
1 |
Rs. 82.41 |
|
Euro |
1 |
Rs. 70.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
77 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.