MIRA
INFORM REPORT
|
Report Date : |
23.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
AARTI DRUGS LIMITED |
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|
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|
Registered
Office : |
Plot No. 198, MIDC Tarapur, Tal. Palghar, Village Pamtermbhi, Dist Thane
– 401506, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
28.09.1984 |
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Com. Reg. No.: |
11-055433 |
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Capital
Investment / Paid-up Capital : |
Rs. 121.086
Million |
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CIN No.: [Company Identification
No.] |
L37060MH1984PLC055433 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA18926F/ MUMA20113C |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Selling of Pharmaceuticals and Bulk Drugs. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company a having fine track record.
General financial position is good. Trade relations are reported as decant.
Business is active. Payments are reported to be regular and as per commitments.
The company can be considered good 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 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Fund Based And Non Fund Based Limits : A2+ |
|
Rating Explanation |
Strong Degree Of Safety And Low Credit Risk |
|
Date |
March 26, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan And Cash Credit : BBB+ |
|
Rating Explanation |
Moderate Degree Of Safety And Moderate Credit Risk. |
|
Date |
March 26, 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 Office : |
Plot No. N-198,
M.I.D.C., Tarapur, |
|
Tel. No.: |
91-22-24072249 (5 Lines) / 52571698/ 24019025 |
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Fax No.: |
91-22-24073462/ 24070144 |
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E-Mail : |
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Website : |
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Corporate Office : |
Mahendra Industrial Estate, Ground Floor,
Plot |
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Tel. No.: |
91-22-24019025 (30 Lines) |
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Fax No.: |
91-22-24073462 / 24070144 |
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Factory 1 : |
Plot Nos N-198,
G-60, E-120, K-40, K-41, E-9/3-4 and E-21/22, MIDC Industrial Area, Tarapur, Village
Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India |
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Factory 2 : |
Plot Nos.
2902/2904, GIDC, Sarigam – 396155, District Valsad, |
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Research and
Development Centers : |
·
Plot Nos.
N-198 and G-60, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka
Palghar, Thane – 401506, ·
Plot
Nos. D-277/278, TTC Industrial Area, Turbhe, Navi Mumbai, |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Chandrakant
V. Gogri |
|
Designation : |
Chairman |
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|
Name : |
Mr. Prakash M.
Patil |
|
Designation : |
Managing Director
and Chief Executive Director |
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|
Name : |
Mr. Harshit M.
Savla |
|
Designation : |
Joint Managing Director
and Chief Executive Director |
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|
Name : |
Mr. Harit P. Shah |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Uday M. Patil |
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Designation : |
Whole Time
Director |
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Name : |
Mr. Rajendra V.
Gogri |
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Designation : |
Non-Executive
Director |
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Name : |
Mr.
Ramdas M. Gandhi |
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Designation : |
Director
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Name : |
Dr. Vilas G. Gaikar |
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Designation : |
Director |
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Name : |
Mr. Bhavesh R. Vora |
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Designation : |
Director |
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Name : |
Mr. Sunil M. Dedhia |
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Designation : |
Director |
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Name : |
Prof. Krishnacharya G. Akamanchi |
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Designation : |
Director |
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Name : |
Mr. Navin C. Shah |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunny Pagre |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
5674330 |
46.86 |
|
|
1246163 |
10.29 |
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|
6920493 |
57.15 |
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|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
6920493 |
57.15 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2 |
0.00 |
|
|
75981 |
0.63 |
|
|
75983 |
0.63 |
|
|
|
|
|
|
310779 |
2.57 |
|
|
|
|
|
|
2239967 |
18.50 |
|
|
2513855 |
20.76 |
|
|
47473 |
0.39 |
|
|
47473 |
0.39 |
|
|
5112074 |
42.22 |
|
Total Public
shareholding (B) |
5188057 |
42.85 |
|
Total (A)+(B) |
12108550 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
12108550 |
0.00 |
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|
|
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Millions BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Selling of Pharmaceuticals and Bulk Drugs. |
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Products : |
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PRODUCTION STATUS 31.03.2012
|
Particulars |
Unit |
*Licensed |
Installed |
Production |
Captive |
Net Production |
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Pharmaceuticals |
Kgs. |
-- |
29,016 |
20,963.34 |
2250.27 |
18,713.07 |
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NOTE: * As License is not required Licensed Capacity
not given.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
Bank of ·
Union Bank of ·
State Bank of ·
The Bank of · Standard Chartered Bank · DBS Bank Limited · IDBI Bank Limited · Citi Bank N.A. ·
HSBC Limited |
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Facilities : |
(Rs.
In Millions)
SECURITIES FOR
LOANS TAKEN FROM BANKS a.
Balances in respect of outstanding term loan from
The Industrial Development Bank of India Rs.108.333 million (As at 31st
March, 2011 Rs.2055.56 million), of which Rs.75.000 repayable up to F.Y. end
2012-13 and balance Rs.3.3333 million up to F.Y. end 2013-14,Out of the above
the loan sanctioned by IDBI on 25th March, 2008 for Rs.300.000
million also secured by second charge on the current assets of the company
both present and future as a collateral security. The Export Import Bank of
India Rs.284.762 million (As at 31 st March, 2011 Rs.166.387 million), of
which Rs.104.762 million repayable up to F.Y. end 2014-15 and balance Rs.1800
up to F.Y. end 2016-17 Standard Chartered Bank Rs.348.320 million (As at 31st
March, 2011 Rs.412.300 million), of which Rs.1820 million repayable upto
2014-15 and balance Rs.166.320 is upto F.Y. end 2015-16. DBS Bank Ltd
Rs.182.000 million (As at 31st March, 2011 Rs.182.000 million),
will be repayable up to F.Y. end 2015-16, are secured by pari-passu first
charge by way of mortgage of immovable properties and hypothecation of moveable
fixed assets, both present and future situated at MIDC Boisar, Maharashtra
viz. Plot No. N-198, G-60, E-21 & 22, K-40 & K-41, E-120 and E-9/3
& E-9/4, at GIDC, Bhilad, Sarigam, Gujarat viz. Plot No. 2902 & 2904
and at Turbhe Plot No. D-277 & D-278. b.
Loans from Scheduled Banks Rs.954.047 million are
secured by hypothecation of Company’s raw materials stock, stock-in-process,
finished goods, packing materials, stores & spares, book debts, and all other
current assets including goods in transit governed by documents of title and
also pari-passu second charge by way of mortgage of immovable properties and
hypothecation of moveable fixed assets. both present and future situated at
MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 & 22, K-40 &
K-41, E-120 and E-9/3 & E-9/4, GIDC , Bhilad, Sarigam- Gujarat viz. Plot
No. 2902, 2904 and at Turbhe Plot No. D-277 & D-278. The working
Directors of the Company have personally guaranteed these loans c.
Loan from IDBI Bank as Working Capital Lender to
amalgamating company Rs.93.074 million is secured by way of Exclusive First
Charge by way of hypothecation of raw material, stock in process, finish
goods, packing material, stores & spares, book debts and all also second
charge by way of hypothecation of moveable fixed assets, both present and
future situated at MIDC Boisar, Maharashtra viz W-60(B) 61(B) 62(B) 71(B)
72(B). |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Parikh Joshi and
Kothare Chartered Accountants |
|
Address : |
49/2341, M. H. B. Colony, Gandhi Nagar,
Bandra (East), Mumbai – 400051, |
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Solicitors: |
M/s. M.P. Savla and Company, Bharat House, 2nd floor, 104 Mumbai
Samachar Marg, Mumbai – 400 001. |
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Related company : |
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Associates/Subsidiaries : |
Huanggang Yinhe Pharmaceutical Co-operative Limited |
CAPITAL STRUCTURE
AFTER AS ON:
29.08.2012
Authorised Capital : Rs. 200.00
Millions
Issued, Subscribed & Paid-up Capital : Rs121.086
Millions
AS ON: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21500000 |
Equity Shares |
Rs.10/- each |
Rs.215.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12108550 |
Equity Shares |
Rs.10/- each |
Rs121.086
Million |
Reconciliation
|
Particulars |
Numbers |
(Rs.
In Millions) |
|
Opening outstanding shares |
12108550 |
121.085 |
|
Closing outstanding shares |
12108550 |
121.085 |
Disclosures of shares held by each shareholders more than 5% shares:
|
Name of Shareholders |
As at 31st March, 2012 |
|
|
No. of Share held |
% held |
|
|
Prakash M. Patil |
925,427 |
7.64 |
|
Aarti Industries Limited |
651,059 |
5.38 |
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 |
121.086 |
121.086 |
121.085 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1643.713 |
1444.078 |
1289.830 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1764.799 |
1565.164 |
1410.915 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1842.302 |
1698.989 |
1386.612 |
|
|
2] Unsecured Loans |
882.641 |
516.701 |
389.837 |
|
|
TOTAL BORROWING |
2724.943 |
2215.690 |
1776.449 |
|
|
DEFERRED TAX LIABILITIES |
244.720 |
222.966 |
197.966 |
|
|
|
|
|
|
|
|
TOTAL |
4734.462 |
4003.820 |
3385.330 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2735.363 |
2242.096 |
1835.357 |
|
|
Capital work-in-progress |
29.909 |
103.748 |
34.035 |
|
|
|
|
|
|
|
|
INVESTMENT |
69.184 |
246.130 |
213.785 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
979.076
|
831.590 |
585.764
|
|
|
Trade Receivable |
1806.035
|
1258.301 |
1184.549
|
|
|
Cash & Bank Balances |
49.439
|
35.854 |
36.502
|
|
|
Other Current Assets |
163.042
|
127.289 |
19.613
|
|
|
Loans & Advances |
294.146
|
313.878 |
175.613
|
|
Total
Current Assets |
3291.738
|
2566.912 |
2002.041 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
937.857
|
773.629 |
612.733
|
|
|
Other Current Liabilities |
363.659
|
317.310 |
26.613
|
|
|
Provisions |
90.216
|
64.127 |
60.542
|
|
Total
Current Liabilities |
1391.732
|
1155.066 |
699.888 |
|
|
Net Current Assets |
1900.006
|
1411.846 |
1302.153 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4734.462 |
4003.820 |
3385.330 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6592.609 |
4964.241 |
4714.169 |
|
|
|
Other Income |
61.017 |
0.778 |
4.495 |
|
|
|
TOTAL (A) |
6653.626 |
4965.019 |
4718.664 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3841.401 |
2730.004 |
|
|
|
|
Purchase of stock-in-trade |
733.602 |
842.131 |
|
|
|
|
Employee benefit expense |
248.268 |
178.746 |
|
|
|
|
Other expenses |
1036.818 |
749.044 |
|
|
|
|
Exceptional Items |
11.627 |
0.000 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(9.166) |
(161.820) |
|
|
|
|
TOTAL (B) |
5862.550 |
4338.105 |
4145.308 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
791.076 |
626.914 |
573.356 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
226.719 |
134.780 |
NA |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
564.357 |
492.134 |
573.356 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
242.159 |
177.406 |
135.174 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
322.198 |
314.728 |
438.182 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
97.588 |
90.000 |
150.203 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
224.609 |
224.728 |
287.979 |
|
|
|
|
|
|
|
|
|
|
PROVISION FOR
DEFFERED TAXATION FOR C.YEAR |
0.000 |
0.000 |
27.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
954.939 |
|
|
|
|
|
|
|
|
|
|
INCOME TAX OF EARLIER YEAR |
NA |
NA |
0.339 |
|
|
|
TRANSFER
TO GENERAL RESERVE |
NA |
NA |
26.100 |
|
|
|
|
|
|
|
|
|
|
Proposed Dividend : |
|
|
|
|
|
|
1st Interim Dividend |
NA |
NA |
0.000 |
|
|
|
Final Proposed Dividend |
NA |
NA |
60.542 |
|
|
|
Dividend Tax of C.Y. |
NA |
NA |
10.055 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
1118.881 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2460.502 |
1832.710 |
1527.892 |
|
|
TOTAL EARNINGS |
2460.502 |
1832.710 |
1527.892 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1793.360 |
1385.643 |
1108.065 |
|
|
|
Capital Goods |
4.916 |
18.229 |
6.295 |
|
|
TOTAL IMPORTS |
1798.276 |
1403.872 |
1114.36 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.84 |
18.56 |
22.08 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1899.500 |
2163.900 |
1991.400 |
|
Total Expenditure |
1640.500 |
1868.200 |
1693.700 |
|
PBIDT (Excl OI) |
259.000 |
295.700 |
297.700 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
259.000 |
295.700 |
297.700 |
|
Interest |
65.100 |
66.000 |
74.900 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
193.900 |
229.700 |
222.800 |
|
Depreciation |
63.200 |
64.000 |
65.400 |
|
Profit Before Tax |
130.700 |
165.700 |
157.400 |
|
Tax |
41.900 |
49.500 |
48.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
88.800 |
116.200 |
109.400 |
|
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 |
88.800 |
116.200 |
109.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total
Income |
(%) |
3.38 |
4.52 |
6.10 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.89 |
6.33 |
9.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.34 |
6.54 |
1.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.20 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.54 |
1.41 |
1.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.37 |
2.22 |
2.86 |
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 |
Yes |
|
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 |
OPERATIONS REVIEW
During the year , the Company has, post merger of its wholly owned subsidiary, namely, Suyash Laboratories Limited., achieved Sales Turnover of Rs. 6991.800 millions (Previous Year: Rs.5230.100 millions) registering a growth of 33.68%
Similarly, the Company has achieved Export Turnover of Rs. 2807.100 Millions as against Rs. 2153.700 millions for the last year, registering a growth of 30.34%.
Operating Profit before Interest, Depreciation, Amortization & Tax, post merger has been Rs. 802.700 millions (Previous Year Rs. 626.900 millions)
Profit After Tax, post merger has been Rs. 2246 millions (Previous Year Rs. 224.700 millions).
Figures for the year 2011-12, being post merger, are not
comparable with standalone Company figures for 2010-11 to that extent.
AMALGAMATION
PHARMACEUTICAL INDUSTRY – GLOBAL & INDIAN
The exports of drugs and pharmaceuticals grew by 25% y-o-y to $13 billion (Rs.715 billion) in FY 2011-12 indicating good export potential for the Indian pharmaceutical industry. The exports are expected to reach $18 billion (Rs.990 billion) in FY 2012-13 with an estimated 38% y-o-y growth and expected to grow further to $25 billion (Rs.1,375 billion) in FY 2013-14 with 39% y-o-y growth. Emerging markets currently represent 16% of the global market (source: IMS Health), but are expected to contribute to 40% of growth by 2014. India produces 20% of generic drugs in the world and is the third largest producer of drugs and 14th largest by volume. Overall, it is expected that the Indian Pharmaceutical Industry will grow by 17-18% in FY 2012-13.
The domestic pharmaceutical industry is currently placed at $20 billion (Rs.1,100 billion) and is expected to touch $75 billion (Rs.4,125 billion) by 2020 with a CAGR of 15-20% indicating a healthy growth
BUSINESS STRATEGY
·
Domestic
Market and Trends
Aarti Drugs Limited (ADL) is constantly gearing up to cater the demand with a diversified product basket of Anti-diabetic, Anti-inflamatory, Anti-hypertensive and Cardio vascular therapeutic drugs. ADL increased market share of its existing molecules in the Antibiotic and Anti-fungal segment in the year 2011-12. Indian pharmaceutical market is growing fast due to penetration of health services in rural areas of the country. To cope up with the above demand ADL has already expanded its existing product-line’s capacities. There is also a shift in demand from, drugs treating hygiene related diseases to drugs treating lifestyle related diseases in the urban sector. With growing exports of finished dosage formulations to regulated countries, even API facilities must have cGMP certifications. ADL facilities meet high-standards and are approved to supply API to many such ready-formulations exported to regulated markets.
·
Export
Market and Trends
ADL facilities are cGMP approved with certifications like USFDA, WHO GMP, EUGMP, TGA and ISO. ADL is constantly growing its presence in regulated markets by offering series of products from its USFDA, TGA certified plants, as well as Japanese accredited plants. Recently, ADL also get cGMP certification from ANVISA of Brazilian authorities and COFEPRIS of Mexican authorities to cater to Latin American market in two of its major products.
ADL is constantly working to keep its facilities up to the standards of cGMP as they plan to harness and grow their market share in semi-regulated & regulated markets. They are now looking to increase their hold on South East Asian markets as well.
ADL will continue to cater global pharmaceutical markets through following channels
• Contract Manufacturing and strategic alliance
• Direct Exports
Introduce ADL in the list of approved vendors for regulated market customers and focus on products going off-patent in next 5 years
• Indirect Exports
Supplying APIS to domestic formulations manufacturers for regulated markets
• Products in R&D Pipeline
OUTLOOK
The Company R&D programs are currently focused on new products amongst therapeutic categories such as Antipsychotic, Antitussive, Antifungal, Antihypertensive, Anticonvulsant, Alcoholism treatment and Anti-inflammatory. These products would be launched in a time-horizon of 2-4 years depending upon patents. Company will continue to do R&D on APIs that are off patents and will work on non-infringing synthesis routes.
ADL has expanded the capacities of its existing products in Anti-Biotic, Anti-Diabetic, Anti-Fungal, and Anti-Diarrhea segments. This has given an impetus to sales volumes. ADL is planning to expand the capacity of its Cardio-protectant, anti-biotic & anti-diabetic and lifestyle related drugs in future.
CONTINGENT
LIABILITIES
a. In respect of
bank guarantees issued and L/C opened by the Company’s bankers Rs. 225.787
millions (As at 31st March, 2011 Rs.151.217 millions)
b. Demand in
respect of additional income tax disputed in appeal Rs.25.064 millions. (As at
31st March, 2011 Rs.3.495 millions)
c. Demand /Rebate
in respect of Excise duty in case of Ammonium Sulphate of Rs.10.290 Millions
(as at 31st March, 2011 Rs.10.290 millions). The Hon’ble High Court of Mumbai
has decided the appeal in favour of the Company in February 2010 on the basis
of its earlier judgement in a similar case. However, as per information
available with the Company, the Department of Central Excise has filed an
appeal in that precedent case in the Supreme Court, hence the company has
continued to disclose this matter.
d. Liability for
duty on raw material imported under advance licence benefit scheme against
which export obligation remained to be fulfilled Rs.5.538 millions (As at 31st
March, 2011 Rs.3.463 millions)
e. Estimated amount
of contracts remaining to be executed on capital account and not provided for
(net of advances) Rs.41.272 millions. (As at 31st March, 2011 Rs.69.702
millions)
There are no Micro
and Small Enterprises, to whom the company owes dues, which are outstanding for
more than 45 days as at 31st March, 2012. This information as required to be
disclosed under the Micro, Small and Medium Enterprises Development Act, 2006
has been determined to the extent such parties have been identified on the
basis of information available with the Company.
PRINCIPLES OF
AMALGAMATION AND DISCLOSURES
a. In terms of the
Scheme approved by the Hon’ble High Court, the entire business of Suyash
Laboratories Ltd., stands transferred to and vested in the Company with effect
from April 01, 2011, as a going concern.
b. As Suyash
Laboratories Ltd. was a wholly owned subsidiary of the Company, no
consideration was payable pursuant to amalgamation of Suyash Laboratories Ltd.
with the Company.
c. The amalgamation of
the financial statements of the Aarti Drugs Ltd. and Suyash Laboratories Ltd.
is done on line by line basis by adding together like items of assets,
liabilities, income and expenses. All intra group transactions, unrealized
inter company profits and balances have been eliminated in the course of
amalgamation.
d. The financial
statements of Aarti Drugs Ltd. and Suyash Laboratories Ltd. have been
amalgamated using uniform accounting policies for like transactions and other
events in similar circumstances.
e. Amalgamation is
carried out as per Accounting Standard 14, issued by the Institute of Chartered
Accounts of India.
f. The difference,
being the excess of the book value of the investment of the Company in the
equity shares of Suyash Laboratories Ltd over the net assets of Suyash
Laboratories Ltd. transferred to the Company has been adjusted in Reserves
& Surplus of the Company.
g. Pending
completion of the relevant formalities of transfer of certain assets and
liabilities acquired pursuant to the scheme, such assets and liabilities remain
in the name of the Amalgamating Company.
h. The merged
company will continue to carry on the business of manufacturers, producers,
processors, buyers, sellers, importers, exporters and/or otherwise dealers in
pharmaceuticals, drugs, medicines, medicinal preparations, tabulating
formulations, injections, alkalies, acids, chemicals and allied products
including fine chemicals, perfumes, flavors, cosmetics and other pharmaceutical
products as Aarti Drugs Limited.
Previous year’s figures are of Aarti Drugs Ltd. stand alone and hence
are not comparable with the current year.
Figures of previous year have been rearranged or regrouped wherever
necessary.
On 27th February, 2012 fire occurred in Suyash Laboratories Ltd., loss
on account of fire of Stock and fixed assets is debited
to statement of Profit and Loss Rs.11.6 Millions.
STATEMENT OF
AUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER, 2012
(Rs.
In Millions)
|
Sr. No |
|
Quarter Ended |
Half Year Ended |
||
|
|
PARTICULARS |
30.09.2012 |
30.06.2012 |
30.09.2012 |
|
|
|
|
(Audited) |
(Audited) |
(Audited) |
|
|
1 |
Income from Operations |
|
|
|
|
|
|
(a) Gross Sales / Income from Operations |
2326.600 |
2038.800 |
4365.500 |
|
|
|
Less : Excise Duty & Sales Tax |
163.300 |
140.400 |
303.700 |
|
|
|
(a) Net Sales / Income from Operations |
2163.400 |
1898.400 |
4061.800 |
|
|
|
(Net Of Excise Duty & Sales Tax) |
|
|
|
|
|
|
(b) Other Operating Income |
0.600 |
0.300 |
0.800 |
|
|
|
Total income from operations (net) |
2164.000 |
1898.700 |
4062.600 |
|
|
2 |
Expenditure |
|
|
|
|
|
|
(a) Cost of materials consumed |
1308.500 |
1202.500 |
2511.100 |
|
|
|
(b) Purchase of stock-in-trade |
238.700 |
193.900 |
432.500 |
|
|
|
(c) Changes in inventories of finished goods, |
(64.800) |
(101.200) |
(166.000) |
|
|
|
work-in-progress and stock-in-trade |
|
|
|
|
|
|
(d) Employee benefits expense |
66.700 |
64.900 |
131.700 |
|
|
|
(e) Depreciation and Amortisation Expense |
64.000 |
63.200 |
127.300 |
|
|
|
(f) Other expenses |
319.100 |
279.600 |
598.700 |
|
|
|
Total expenses |
1932.300 |
1703.000 |
3635.300 |
|
|
3 |
Profit from Operations before Other Income, |
|
|
|
|
|
|
finance costs and exceptional items (1-2) |
231.700 |
195.700 |
427.300 |
|
|
4 |
Other Income |
- |
- |
- |
|
|
5 |
Profit from ordinary activities before finance cost and exceptional items (3+4) |
231.700 |
195.700 |
427.300 |
|
|
6 |
Finance costs (interest) |
66.000 |
65.100 |
131.100 |
|
|
7 |
Profit from ordinary activities after finance |
|
|
|
|
|
|
cost but before Exceptional Items (5-6) |
165.700 |
130.700 |
296.300 |
|
|
8 |
Exceptional Items |
- |
- |
- |
|
|
9 |
Profit from Ordinary Activities before Tax (7-8) |
165.700 |
130.700 |
296.300 |
|
|
10 |
Tax Expenses (Includes) |
49.500 |
41.900 |
91.400 |
|
|
|
Provision for Taxation |
41.500 |
35.500 |
77.000 |
|
|
|
Provision for Deferred Taxation |
8.000 |
6.400 |
14.400 |
|
|
11 |
Net profit from ordinary Activities after |
|
|
|
|
|
|
Tax (9-10) |
116.200 |
88.800 |
204.900 |
|
|
12 |
Paid-up Equity Share Capital of? 10/- each. |
121.100 |
121.100 |
121.100 |
|
|
13 |
Reserves & Surplus (excluding revaluation reserves) |
|
|
|
|
|
14 |
Earning per share (of ? 10 /- each) (not annualised) |
|
|
|
|
|
|
Basic & Diluted |
9.59 |
7.33 |
16.92 |
|
|
|
Part II |
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
|
- Number of Shares |
5269645 |
5300778 |
5269645 |
|
|
|
- Percentage of Total Shareholding |
43.52 |
43.78 |
43.52 |
|
|
2 |
Promoters & Promoter Group shareholding a) Pledged/Encumbered |
|
|
|
|
|
|
- Number of Shares |
Nil |
Nil |
Nil |
|
|
|
- Percentage of shares(as a % of the total |
Nil |
Nil |
Nil |
|
|
|
shareholding of promoter and promoter group) |
|
|
|
|
|
|
- Percentage of shares( as a % of the |
Nil |
Nil |
Nil |
|
|
|
total Share capital of the company) |
|
|
|
|
|
|
b) Non-encumbered |
|
|
|
|
|
|
- Number of Shares |
6838905 |
6807772 |
6838905 |
|
|
|
- Percentage of shares( as a % of the total |
100.00 |
100.00 |
100.00 |
|
|
|
Shareholding of promoter and promoter group) |
|
|
|
|
|
|
- Percentage of shares( as a % of the total |
56.48 |
56.22 |
56.48 |
|
|
|
Share capital of the company) |
|
|
|
|
|
|
|||||
|
B |
INVESTOR COMPLAINTS |
Qtr ended 30th Sept, 2012 |
|||
|
|
Pending at the beginning of the quarter |
- |
|||
|
|
Received during the quarter |
3 |
|||
|
|
Disposed of during the quarter |
3 |
|||
|
|
Remaining unresloved at the end of the quarter |
- |
|||
STATEMENT OF
ASSETS AND LIABILITIES AS AT 30TH SEPTEMBER, 2012
|
Sr No. |
PARTICULARS |
As at 30.09.2012 |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholder* funds |
|
|
|
(a) Share Capital |
121.100 |
|
|
(b) Reserves and surplus |
1806.300 |
|
|
A Sub - total - Shareholders^ funds |
1927.400 |
|
2 |
Non-current liabilities |
|
|
|
(a) Long - term borrowings |
598.600 |
|
|
(b) Deferred tax liabilities (net) |
259.100 |
|
|
(c) Other long - term liabilities |
84.400 |
|
|
(d) Long - term provisions |
17.200 |
|
|
B Sub - total - Non - current liabilities |
959.400 |
|
3 |
Current liabilities |
|
|
|
(a) Short - term borrowings |
2281.300 |
|
|
(b) Trade payables |
930.900 |
|
|
(c) Other current liabilities |
248.100 |
|
|
(d) Short - term provisions |
153.200 |
|
|
C Sub - total - current liabilities |
3613.600 |
|
|
TOTAL- EQUITY AND LIABILITIES |
6500.400 |
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed assets (including CWIP) |
2853.800 |
|
|
(b) Non - current investments |
69.200 |
|
|
(c) Long - term loans and advances |
13.300 |
|
|
Sub - Total - Non - current assets |
2936.300 |
|
2 |
Current assets |
|
|
|
(a) Inventories |
1208.400 |
|
|
(b) Trade receivables |
1936.300 |
|
|
(c) Cash and cash equivalents |
66.200 |
|
|
(d) Short - term loans and advances |
197.000 |
|
|
(e) Other-current assets |
156.200 |
|
|
Sub - Total - current assets |
3564.100 |
|
|
TOTAL-ASSETS |
6500.400 |
NOTES
1. The above results fbrthe quarter and half year ended 30th September, 2012 have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 31st October, 2012.
2. The Board of Directors have declared interim dividend of ?3.00 per Equity Shares off 10/- each (30 %) amounting to Rs.36.325 Millions and 6th November, 2012 has been fixed as record date for the payment of the said interim dividend.
3. Company is operating as a Single Segment Company engaged in Pharmaceuticals Business.
4. Figures for the quarter ended 30th September, 2011 do not reflect effect of Amalgamation of Erstwhile Suyash Laboratories Limited with the Company and to that extent they are not comparable.
5. Figures for the previous period have been regrouped and rearranged whrerever necessary
FIXED ASSETS
- Building
- Plant and Machinery
- Office Equipment
- Furniture
- Vehicles
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. 54.17 |
|
|
1 |
Rs. 82.45 |
|
Euro |
1 |
Rs. 70.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
53 |
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.