MIRA INFORM REPORT

 

 

Report Date :

12.08.2013

 

IDENTIFICATION DETAILS

 

Name :

VIVIMED LABS LIMITED

 

 

Registered Office :

Plot No.78 – A, Kolhar Industrial Area, Bidar – 585 403, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

22.09.1988

 

 

Com. Reg. No.:

08-009465

 

 

Capital Investment / Paid-up Capital :

Rs.809.340 Millions

 

 

CIN No.:

[Company Identification No.]

L02411KA1988PLC009465

 

 

Legal Form :

A Public Limited Liability company. The company’s shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer and markets Specialty Chemicals predominantly for personal care and cosmetics industries and Pharmaceuticals.

 

 

No. of Employees :

1060 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (59)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 14000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having a good track record.

 

There appears slight dip in the profitability during 2013.

 

However, general financial position seems to be strong. Performance capability is high.

 

Trade relations are reported to be 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 condition.

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

LONG TERM BANK FACILITIES : CARE A-

Rating Explanation

Having adequate degree of safety regarding timely servicing of financial obligation it carry low credit risk

Date

April, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DENIED

 

Management Non Cooperative. (91-8482-232045)

 

 

LOCATIONS

 

Registered Office :

Plot No.78 – A, Kolhar Industrial Area, Bidar – 585 403, Karnataka, India

Tel. No.:

91-8482-232045

Fax No.:

91-8482-232045

E-Mail :

chanakya@vivimedlabs.com

fahim.aslam@vivimedlabs.com

yugandhar.kopparthi@vivimedlabs.com 

Website :

www.vividmedlabs.com

 

 

Corporate / Head Office :

2nd Floor, Veeranag Towers, Husiguda, Hyderabad – 500 007, Andhra Pradesh, India

Tel. No.:

91-40-27176005 / 27176006

Fax No.:

91-40-27172242 / 27150599

E-Mail :

info@vivimedlabs.com

 

 

Overseas Office :

CHINA

Vivimed Labs Limited

Address: Guangzhou Representative Office, 1259 Block C, China Hotel, Liuhua Road, Guangzhou, 510015 P.R. China

Tel no.: +86 20 8626 6003

Fax No.: +86 20 8626 6903

 

UNITED KINGDOM

Vivimed Labs Europe Limited

Address: PO Box B3, Leeds Road, Huddersfield Wes Yorkshire, HD1 6BU, England

Tel No.: +44 (0) 1484320500

Fax No.: +44 (0) 1484320300

e-mail: sales@vivimedlabs.com

 

USA

Vivimed Labs USA Inc

Address: 1100 Cornwall Road, Suite 160, Monmouth Junction, New Jersey 08852, USA

Tel No.: +1 732-398-0008

Fax No.: +1 732-398-0013

e-mail: sales@vivimedlabs.com

 

 

Warehouses :

Located at

  • Bonthapally, Hydrabad, India
  • Arnhen, Netherlands
  • New Jersey, North Carolina (USA)
  • Hong Kong, China

 

 

Plant Location:

Specialty Chemicals Division:

 

 

Pharma Division:

 

·        78/A, Kolhar Industrial Area, Bidar – 585403, Karnataka, India

·        Survey No. 202, 207/A, 207/E and 207/AA, Bonthapalty Village, Narsapur Mandal, Medax District – 502313, Andhra Pradesh, India

 

·        D 125 and 128, Phase III, Jeedimetla Industrial Estate, Hyderebad – 500055, Andhra Pradesh, India

·        Plot No. 25, Kundeshwari Village, Kashipur, Udham Sigh Nagar – 244 713, Uttranchal, India

·        D – 9, Industrial Area, Haridwar – 249 401, Uttranchal, India

 

 

 

 DIRECTORS

 

As on 31.03.2012

 

Name :

Dr. V. Manohar Roa

Designation :

Chairman

Date of Birth/Age :

75 Years

Qualification :

Post Graduate in Veterinary Sciences

 

 

Name :

Mr. Subhash Varalwar

Designation :

Whole-time Director

Date of Birth/Age :

63 Years

Qualification :

Post Graduate in Chemical Engineering and a Management

Graduate

 

 

Name :

Mr. Santosh Varalwar

Designation :

Chief Executive Officer and Managing Director

Date of Birth/Age :

49 Years

Qualification :

Management Graduate

 

 

Name :

Dr. M Bhagavantha Rao

Designation :

Independent Director

Date of Birth/Age :

67 Year

Qualification :

PHD in chemical engineering

 

 

Name :

Mr. Sandeep Varalwar

Designation :

Whole-time Director

Date of Birth/Age :

42 Years

Qualification :

Graduation in B. Pharmacy

 

 

Name :

Mr. S Raghunandan

Designation :

Whole-time Director

Date of Birth/Age :

50 Years

Qualification :

Science Post Graduate

 

 

Name :

Dr. Raj Kumar Dhar

Designation :

Whole-time Director

Date of Birth/Age :

56 Years

Qualification :

Post Doctoral

 

 

Name :

Mr. P V Rathnam

Designation :

Independent Director

Date of Birth/Age :

68 Years

Qualification :

Chartered Accountants

 

 

Name :

Mr. Chunduri Ramakrishna

Designation :

Independent Director

 

 

Name :

Dr. Peesapati Venkateswarlu

Designation :

Independent Director

 

 

Name :

Mr. Srinivas Chidambaram

Designation :

Nominee Director

 

 

Name :

Mr. Nixon Patel

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Fahim Aslam Khan

Designation :

Company Secretary and Compliance Officer

 

 

AUDIT COMMITTEE

Name :

Mr. P.V. Rathnam

Designation :

Chairman

 

 

Name :

Dr. M. Bhagvanth Rao

Designation :

Member

 

 

Name :

Mr. S. Raghunandan

Designation :

Member

 

 

Name :

Mr. Srinivas Chidambaram

Designation :

Member

 

 

INVESTORS GRIEVANCE COMMITTEE

Name :

Mr. P.V. Rathnam

Designation :

Chairman

 

 

Name :

Mr. Santosh Varalwar

Designation :

Member

 

 

Name :

Dr. V. Manohar Rao

Designation :

Member

 

 

REMUNERATION COMMITTEE

Name :

Dr. M. Bhagvanth Rao

Designation :

Chairman

 

 

Name :

Mr. Subhash Varalwar

Designation :

Member

 

 

Name :

Mr. Sandeep Varalwar

Designation :

Member

 

 

Name :

Mr. D. Hanumantha Rao

Designation :

Member

 

 

Name :

Dr. Peesapati Venkateswarlu

Designation :

Member

 

 

COMPENSATION COMMITTEE

Name :

Mr. P.V. Rathnam

Designation :

Chairman

 

 

Name :

Mr. Santosh Varalwar

Designation :

Member

 

 

Name :

Mr. S. Raghunandan

Designation :

Member

 

 

Name :

Dr. M. Bhagvanth Rao

Designation :

Member

 

 

MANAGEMENT COMMITTEE

Name :

Dr. V. Manohar Rao

Designation :

Chairman

 

 

Name :

Mr. Santosh Varalwar M

Designation :

Member

 

 

Name :

Mr. Subhash Varalwar

Designation :

Member

 

 

SHAREHOLDING PATTERN

 

As on 30.06.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

4104938

25.56

http://www.bseindia.com/include/images/clear.gifBodies Corporate

2291852

14.27

http://www.bseindia.com/include/images/clear.gifSub Total

6396790

39.83

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

6396790

39.83

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

373509

2.33

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

19226

0.12

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

198000

1.23

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

4207121

26.19

http://www.bseindia.com/include/images/clear.gifForeign Companies

4207121

26.19

http://www.bseindia.com/include/images/clear.gifSub Total

4797856

29.87

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1196840

7.45

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

1512895

9.42

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1152612

7.18

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1003933

6.25

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

632151

3.94

http://www.bseindia.com/include/images/clear.gifClearing Members

97814

0.61

http://www.bseindia.com/include/images/clear.gifForeign Nationals

273968

1.71

http://www.bseindia.com/include/images/clear.gifSub Total

4866280

30.30

Total Public shareholding (B)

9664136

60.17

Total (A)+(B)

16060926

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

16060926

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of active ingredients for home and personal care and personal hygiene products.

 

 

Products :

Product Description

Item Code No.

Avis (Avobenzone)

29145000

VIV – 20 (Triclosan)

29105000

DANTUFF-Z (Zinc Purithione)

29333900

 

PRODUCTION STATUS As on 31.03.2012

 

 

Particulars

Unit

Licensed Capacity and Installed Capacity

Speciality Chemicals

MT

3000

Capsules

Million

300

Tablets

Million

30

Lotions

KL

20

Ointments

MT

30

Small Volume Parentals

KL

300

 

 

Particulars

Unit

Production Capacity

Speciality Chemicals

MT

2037.87

Capsules

Million

790.01

Tablets

Million

35.32

Lotions

KL

46.05

Ointments

MT

12.41

Small Volume Parentals

KL

400.40

 

 

GENERAL INFORMATION

 

No. of Employees :

1060 (Approximately)

 

 

Bankers :
  • State Bank of Hyderabad
  • Axis Bank
  • EXIM Bank
  • HDFC Bank
  • Bank of Bahrain and Kuwait B.S.C.
  • SBI London

 

 

Facilities :

Secured Loan

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

 

 

 

Term Loans From Banks

757.070

747.380

 

 

 

Cash Credits and Working Capital Loan from Banks

 

 

STATE BANK OF HYDERABAD

 

 

Cash Credit

921.640

926.060

Packing Credit (INR)

201.900

102.760

Packing Credit (USD)

0.000

195.000

FUBD (INR)

215.350

73.590

FUBD (USD)

 

 

(Secured by Pari passu first charge on all the Current Assets and second charge on all Fixed Assets of the Company)

 

 

 

 

 

Bank of Bahrain & Kuwait

 

 

Cash Credit

1.420

0.000

(Secured by Pari passu first charge on all the Current Assets and second charge on all Fixed Assets of the Company)

 

 

 

 

 

Other Loans repayable on demand

 

 

From Banks

 

 

Bank of Bahrain & Kuwait

98.350

0.000

Packing Credit in Foreign Currency

 

 

(Secured by Pari passu first charge on all the Current Assets and second charge on all Fixed Assets of the Company)

 

 

 

 

 

Bank of Bahrain & Kuwait

 

 

Foreign Usance Bill Discounting

101.360

0000

(Secured by Pari passu first charge on all the Current Assets and second charge on all Fixed Assets of the Company)

 

 

 

 

 

EXIM BANK

 

 

Packing Credit

 

 

(Secured by Pari passu first charge on all the Current Assets and second charge on all Fixed Assets of the Company

485.520

227.820

Total

2782.610

2272.610

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

P. Murali and Company

Chartered Accountants

Address :

6-3-655/2/3, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

 

 

Internal Auditor :

 

Name :

Price Waterhouse Coopers Private Limited

Chartered Accountants

Address :

# 8-2-293/A/113/A, Road No. 36, Jubilee Hills, Hyderabad – 500034, Andhra Pradesh, India 

 

 

Cost Auditor :

 

Name :

Bharthula and Associates

Cost Accountants

Address :

G2, GSK Towers, Santhi Nagar, Baghameer, Kukatpally, Hyderabad – 500 072, Andhra Pradesh, India

 

 

Indian Subsidiary :

·         Octtantis Nobel Labs Private Limited

 

 

Wholly Owned Indian Subsidiary :

·         Creative Health Care Private Limited, Mumbai.

·         Klar Sehen Private Limited

 

 

Wholly Owned Foreign Subsidiary :

·         Vivimed Holdings Limited, HongKong

·         Vivimed Labs USA Inc.

·         Vivimed Labs Mauritius Limited

 

 

Wholly Owned Foreign Step Down Subsidiary :

·         Vivimed Labs Europe Limited, U.K.

·         Vivimed Labs UK Limited

·         Vivimed Labs Spain S L

·         Union Quimico Farmaceutica S.A.U., Spain

·         Uquifa Mexico S.A. de C.V.

·         Holiday International Limited, UK

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs.10/- each

Rs.200.000 Millions

910000

Preference Shares

Rs.1000/- each

Rs.910.000 Millions

 

Total

 

Rs.1110.000 Millions

           

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

13933942

Equity Shares

Rs.10/- each

Rs.139.340 Millions

670000

Preference Shares

Rs.1000/- each

Rs.670.000 Millions

 

Total

 

Rs.809.340 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2012

31.03.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

809.340

101.640

(b) Reserves & Surplus

 

2620.150

1348.860

(c) Money received against share warrants

 

23.720

88.640

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

3453.210

1539.140

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

1399.980

747.380

(b) Deferred tax liabilities (Net)

 

163.430

156.890

(c) Other long term liabilities

 

47.360

99.140

(d) long-term provisions

 

18.090

16.490

Total Non-current Liabilities (3)

 

1628.860

1019.900

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

2025.540

1525.230

(b) Trade payables

 

277.240

69.300

(c) Other current liabilities

 

271.560

29.300

(d) Short-term provisions

 

118.440

102.190

Total Current Liabilities (4)

 

2692.780

1726.020

 

 

 

 

TOTAL

 

7774.850

4285.060

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

2944.950

1600.240

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

77.080

11.380

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

871.690

33.990

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

0.000

0.000

(e) Other Non-current assets

 

300.620

66.860

Total Non-Current Assets

 

4194.340

1712.470

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

738.820

667.050

(c) Trade receivables

 

987.180

959.610

(d) Cash and cash equivalents

 

194.060

86.320

(e) Short-term loans and advances

 

1658.160

859.530

(f) Other current assets

 

2.290

0.080

Total Current Assets

 

3580.510

2572.590

 

 

 

 

TOTAL

 

7774.850

4285.060

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

99.650

2] Warrant Application Money

 

 

49.560

3] Reserves & Surplus

 

 

1085.080

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

1234.290

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

1471.800

2] Unsecured Loans

 

 

7.410

TOTAL BORROWING

 

 

1479.210

DEFERRED TAX LIABILITIES

 

 

171.400

 

 

 

 

TOTAL

 

 

2884.900

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

1390.820

Capital work-in-progress

 

 

3.390

 

 

 

 

INVESTMENT

 

 

34.880

DEFERREX TAX ASSETS

 

 

0.000

Other Non-Current Assets

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

606.060

 

Sundry Debtors

 

 

753.230

 

Cash & Bank Balances

 

 

34.06

 

Other Current Assets

 

 

0.000

 

Loans, Advances and Deposits

 

 

310.690

Total Current Assets

 

 

1704.040

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

 

218.960

 

Other Current Liabilities

 

 

0.370

 

Provisions

 

 

86.810

Total Current Liabilities

 

 

306.140

Net Current Assets

 

 

1397.900

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

57.910

 

 

 

 

TOTAL

 

 

2884.900

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Net Sales

3829.000

3098.100

2105.890

 

 

Other Income

4.200

2.870

20.080

 

 

TOTAL                                     (A)

3833.200

3100.970

2125.970

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

2293.000

1988.450

1275.850

 

 

Changes in Inventories (Finished goods and WIP)

(15.680)

(44.500)

198.790

 

 

Employee Benefit Expenses

105.790

105.390

15.320

 

 

Other Operating Expenses

480.470

342.000

102.040

 

 

Administrative Expenses

125.350

142.840

131.630

 

 

TOTAL                                     (B)

2988.930

2534.180

1716.370

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

844.270

566.790

409.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

225.350

176.310

144.370

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

618.920

390.480

265.230

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

105.510

60.790

43.990

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

513.410

329.690

221.240

 

 

 

 

 

Less

TAX                                                                  (H)

109.260

52.060

55.840

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

404.150

277.630

165.400

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

786.150

647.740

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

NA

9.500

 

 

Dividend

 

 

14.950

 

 

Tax on Dividend

 

 

2.540

 

BALANCE CARRIED TO THE B/S

NA

NA

786.150

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods

2285.290

1011.080

868.440

 

TOTAL EARNINGS

2285.290

1011.080

868.440

 

 

 

 

 

 

Earnings Per Share (Rs.)

29.00

27.31

17.00

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

31.03.2013

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

915.500

1111.400

1148.200

1090.000

Total Expenditure

683.200

859.800

904.000

847.800

PBIDT (Excl OI)

232.300

251.600

244.100

242.200

Other Income

0.000

0.000

0.000

0.000

Operating Profit

232.300

251.600

244.100

242.200

Interest

89.500

68.100

78.700

48.100

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

142.800

183.600

165.400

194.100

Depreciation

37.200

38.000

38.500

58.300

Profit Before Tax

105.600

145.500

126.900

135.800

Tax

21.100

53.800

24.400

47.200

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

84.500

91.700

102.500

88.600

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

84.500

91.700

102.500

88.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
10.54
8.95

7.78

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
13.41
10.64

10.51

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.52
7.78

7.15

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.15
0.21

0.18

 

 
 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.99
1.48

1.20

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.33
1.49

5.57

 

 

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

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

No

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

 

 

Financial Results

 

The consolidated net revenue of the Company during 2011-­12 grew to 63.54% to Rs.6893.490 Millions as compared to Rs.4215.250 Millions last year. The Company has achieved a standalone net revenue of Rs.3829.010 Millions during the year, as compared with Rs.3098.100 Millions during the previous year, a rise of 23.59%.

 

Consolidated profit before tax increased to Rs.778.150 Millions, as compared with Rs.552.620 Millions in the previous year, an increase of 40.64% over the last year. Stand alone profit before tax increased from Rs.329.69 million to Rs.513.410 Million an increase of 55.73% over last year.

 

Consolidated profit after tax increased to Rs.631.370 Millions as compared with Rs.488.310 Millions in the previous year, an increase of 29.30% over the last year. The Company recorded a Standalone profit after tax of Rs.404.150 Millions, an increase of 45.57% as compared with last year's Rs.277.640 Millions.

 

 

Unsecured Loan

(Rs. in Millions)

Particulars

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

 

 

 

Kotak Mahindra Bank

200.000

0.000

 

 

 

From Financial Institutions

 

 

Foreign Currency Convertible Bonds (F C C B) From International Finance Corporation

333.50

0.000

 

 

 

Advances from Related Parties

 

 

Klarsehen Private Limited

60.000

0.000

Vivimed Labs Europe

49.410

0.000

Total

642.910

0.000

 

 

Acquisitions

 

Uquifa acquisition

 

On November 30, 2011 'Vivimed Labs Limited' acquired Uquifa, a 75-year-old manufacturer of pharma APIs and intermediates with operations in Spain and Mexico. In a move to bring in strategic growth into pharma segment and expand its footprints in Europe and the Americas, the Company has taken a measured stride with the acquisition of Uquifa.

 

This well considered move would strengthen the Company's current position in pharma APIs and intermediates while significantly improving the cost competitiveness of Uquifa. Complementing each other's needs and growth plans, the acquisition envisages being a healthy, 'two-way opportunity pipeline' for Vivimed. While Uquifa gets the supply side efficiencies and knowledge base of Vivimed in pharma, Vivimed would leverage the preeminent position of Uquifa in APIs and their robust pipeline of filings to accelerate growth across Europe and the Americas in the next five years.

 

The Company also believes that acquisition of Uquifa will add to its multi-geographical locations, stability in operations and knowledge base. This will fundamentally mean greater comfort levels for customers and channel partners in addressing their needs and logistics. Uquifa acquisition in Europe comes post a successful acquisition and integration of James Robinson, UK ( Now Vivimed Labs Europe Limited) in 2008.

 

With Uquifa, Vivimed will have a footprint into LATAM and deepen presence into Europe. Indian manufacturing efficiencies and Uquifa's strengths will be seamlessly aligned in the new dispensation. Uquifa's preeminent position in APIs, combined with Vivimed's supply chain efficiencies will enhance competitiveness for Uquifa and swifter broadening of customer base. Uquifa is now forming part of API division of Vivimed group.

 

Klar Sehen acquisition

 

On September 29, 2011 Vivimed Labs Limited acquired the entire equity stake in Klar Sehen Private Limited (KSL), a 30 year old Kolkata based Pharmaceutical Company with strong marketing presence in North East, Bihar and Andhra Pradesh. KSL Operates in niche ophthalmic segment leveraging 50 proprietary trademarks. It has well known brands such as Renicol, Lysicon-V Care Tears, Dexacort etc., in eye care segment.

 

In a research conducted by C-Marc (India) Private Limited for the period Nov- Feb 2011, KSL for its wide range of Ophthalmic products has bagged rank of an All India corporate No. 1 in the East Zone and bagged a rank of No. 5 in Rest of India ( in Indian, Dist HQ and Extra- Urban and rural markets).

 

KSL has cGMP compliant manufacturing facilities at Kolkata and Hyderabad and also has arrangements to manufacture some of its products in Uttaranchal.

 

Vivimed's acquisition of KSL complements its strategy to increase its domestic presence in niche pharmaceutical areas, its extensive knowledge and experience in manufacturing and R and d will help grow this business to new levels.

 

Economic overview

 

Global economy: The global economic environment, which was tenuous at best through the early part of 2011, turned adverse in September 2011. Global GDP grew 3.8% growth in 2011, significantly lower than the 5.2% growth in 2010. Capital flows to developing countries in 2011 declined by almost half compared with the previous year. As per World Economic Outlook, global economic growth is expected to slow to 3.3% in 2012. Economic growth in emerging and developing economies is expected to average 5.4% - a significant decline from 6.2% growth in 2011. Despite   a   substantial downward revision, developing countries of Asia is still projected to grow at 7.5% in 2012.

 

Indian economy: India's GDP growth declined from 8.4% in 2010-11 to 6.5% in 2011-12. GDP growth in 2011-12 was the lowest in nine years. Despite low growth, India remained one of the fastest-growing global economies. Going ahead, the government estimates a GDP growth of about 6%-plus in 2012-13. While this appears a reasonable estimate, inflation will continue to be a significant challenge for the government especially due to the recent hikes in excise duty and service tax in the Union Budget 2012.

 

During the next five years, there will be accelerated spending in generics, rising from 20% of spending in 2005 to 39% of spending in 2015. Spending on generic drugs (including branded generics) is expected to grow at a CAGR of ~ 13% through 2015, compared to ~ 5% CAGR for the overall pharmaceuticals market.

 

The share of branded drugs is expected to decline from ~ 64% of global pharma spend in 2010 to an estimated 53% due to an increasing generic presence arising out of accelerating patent expiries, higher incentives for generics use and faster generics growth in emerging pharma markets.

 

The U.S. share of global spending is expected to decline from 41% in 2005 to 31% in 2015, while the share of spending from the top five European countries is expected to decline from 20% to 13%. Meanwhile, 17 high growth emerging markets are likely to contribute 28% of the total spending by 2015 compared to 12% in 2005.

 

Pharma emerging markets:

 

The largest growth in the five years from 2010 onwards will be in the pharmerging markets, driven by reforms and economic growth. Generic spending is expected to increase by US$47 billion, approximately 60% from the increased utilisation of existing generic products and 40% from newly available generics.

 

Pharmerging markets are expected to double pharmaceutical spending in five years, adding US$150 billion by 2015. Patients pay out-of-pocket for the majority of medicines in these markets, which limits the use of expensive new medicines. The growth of a number of pharmerging markets are marked by strong domestic companies which market low cost generics, branded generics and unauthorised variants of original brands. Of the total increase in spending, approximately 20% is expected to be derived from branded products.

 

Until not too long ago, India's pharmaceutical space was written off as a self-pay generics-based market adept at product duplication; today the sector has claimed a significant share of the global market by leveraging strengths and enhancing its regulatory and technical maturity. The result is that Indian formulations constitute 20%of the global generics market by value; the overall share of Indian manufactured formulations is a high 46% in the generics segment of emerging markets.

 

CONTINGENT LIABILITIES

(Rs. In Millions)

Particular

31.03.2012

31.03.2011

Letter of Credit

 

 
  • Foreign LC ’s

94.690

151.930
  • Inland LC ’s

55.890

32.480
  • SBLC- Axis Bank

 

 

Bank Guarantee

 

 
  • State Bank of Hyderabad, Balanagar Branch, Hyderabad, India

4.870

4.870

 

CONTINGENT LIABILITY ON ACCOUNT OF CORPORATE GUARANTEES

(Rs. In Millions)

Particular

31.03.2012

31.03.2011

Vivimed Holdings Limited, Hong Kong

(State Bank of India, London Branch)

366.470

571.610

Vivimed Labs Europe Limited, UK

(State Bank of India, London Branch)

142.19

124.510

Vivimed Labs Spain S.L.

(EXIM Bank)

1243.57

0.000

Octtantis Nobel Private Limited

(Yes Bank)

30.000

0.000

Vivimed Labs USA Inc

(Merchants and Traders Trust Company)

179.050

0.000

 

 

STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31.03.2013

(Rs. in Millions)

SL No.

Particulars

Quarter Ended

Year Ended

 

 

 

 

31.03.2013

31.12.2012

31.03.2013

 

 

 

 

(Unaudited)

(Unaudited)

(Audited)

1

Income From Operations

 

 

 

 

(a) Net Sales/Income from Operations (Net of Excise Duty)

1082.498

1141.305

4231.251

 

(b) Other Operating Income

7.501

6.843

33.793

 

Total Income From Operations (Net)

1089.998

1148.148

4265.044

2

Expenses

 

 

 

 

a. Cost of Raw Materials Consumed

574.937

646.467

2473.698

 

b. Purchase of Stock in Trade

 

 

-

 

c. Changes in Inventories of Finished Goods, Work-in-Progress and Stock in Trade

14.448

48.436

(75.532)

 

d. Employee Benefit Expenses

48.292

31.196

155.085

 

e. Depreciation and Amortisation Expenses

58.295

38.500

172.068

 

f. Other Expenditure

210.158

177.931

741.535

 

Total Expenses

906.130

942.530

3466.854

3

Profit / (Loss) from Operations before Other Income, Finance Costs and exceptional items (1 - 2)

183.868

205.618

798.190

4

Other Income

 

-

 

5

Profit/(Loss) from Ordinary Activities before Finance Costs and exceptional items (3 - 4)

183.868

205.618

798.190

6

Finance Costs

48.087

78.710

284.378

7

Profit/(Loss) from Ordinary Activities after Finance Costs but before exceptional items (5 - 6)

135.781

126.908

513.811

8

Exceptional items

 

 

 

9

Profit / Loss from ordinary activities before Tax (7-8)

135.781

126.908

513.811

10

Tax Expenses

47.172

24.370

146.455

11

Net Profit /Loss from ordinary activities after Tax (9-10)

88.609

102.537

367.356

12

Extraordinary Items (net of tax expenses Rs.........Millions)

 

 

 

13

Net Profit/Loss for period (11-12)

88.609

102.537

367.356

14

Share of Profit / (Loss) of associates

 

 

 

15

Minority Interest

 

-

 

16

Net Profit/Loss after taxes. Minority Interest and share of Prof it / (Loss) of Associates (13-14-15)

88.609

102.537

367.356

17

Paid up Equity Share Capital (Face in due of Rs 10/- each)

160.609

139.339

160.609

18

Reserve excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year

2610.145

2610.145

2610.145

19

Earnings per Share (before Extraordinary Items) (of Rs................/- each) (not annualised)

 

 

 

 

(a) Basic

5.52

7.36

22.87

 

(b) Diluted

5.52

6.38

22.87

 

 

1. The above Standalone Unaudited Financial Results for the Quarter ended March 31, 2013 and Standalone audited financial results for the year ended March'31 2013 have been reviewed by Audit Committee and taken on record by Board of Directors at their meeting held on May 30, 2013.

 

2. The Company opted to publish only Consolidated Financial Results. Standalone results of the Company will be available on Company's website wunv.vivimedlabs.com and also on BSE & NSE websites.

 

3. As per Accounting Standard 17 on Segment Reporting (AS-17), results of the two Segments "Specialty Chemicals” and “Pharma” are reported.

 

4. Corresponding numbers of previous period/year have been revised, regrouped, wherever necessary.

 

 

SEGMENT-WISE STANDALONE FINANCIAL RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE - 41 OF THE LISTING AGREEMENT

(Rs. in Millions)

 

Quarter Ended

Year Ended

Particulars

31.03.2013

31.12.2012

31.03.2013

 

Unaudited

Unaudited

Audited

1. Segment Revenue

 

 

 

{net sales/income from each segment should be disclosed under this liead)

 

 

 

a. Speciality Chemicals Business

858.057

885.310

3286.444

b. Pharma Business

224.441

255.995

944.807

Total

1082.498

1141.305

4231.251

Less, Inter Segment Revenue

-

-

-

Net sales/Income from Operations

1082.498

1141.305

4231.251

2. Segment Results (Profit) (+) /Loss (-) before tax and interest from each segment

 

 

 

a. Speciality Chemicals Business

160.539

148.147

641.083

b. Pharma Business

23.329

57.471

157.107

Total

183.868

205.618

798.190

Less: 1.Interest

48.087

78.710

284.378

2,Other Un-allocable Expenditure

-

-

-

3.Un-allocable Income

-

-

-

Total Profit Before Tax

135.782

126.908

513.811

3. Capital Employed

 

 

 

a.Speciality Chemicals Business

7701.949

7948.678

7701.949

b.Pharma Business

755.432

706.848

755.432

Total

8457.381

8655.526

8457.381

 

 

SELECT INFORMATION FOR THE QUARTER AND YEAR ENDED 31.03.2013

(Rs. in Millions)

SL. No

Particulars

Quarter

ended

31.03.2013

Quarter

ended

31.12.2012

Year ended 31.03.2013

A

PARTICULARS OF SHAREHOLDING

 

 

 

 

Public Shareholding

 

 

 

 

Number of Shares

9682136

7642776

9682136

 

Percentage of Shareholding

60.28%

54.85%

60.28%

 

Promoter and Promoter Group Shareholding

 

 

 

 

(a)Pledged/ Encumbered

 

 

 

 

Number of Shares

2252455

1577455

2252455

 

Percentage of shares (as a %of the total shareholding of promoter and promoter group)

35.31%

25.07%

35.31%

 

Percentage of shares (as a % of the total share capital of the company)

14.02%

11.32%

14.02%

 

(b) Non-encumbered

 

 

 

 

Number of Shares

4126335

4713711

4126335

 

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

64.69%

74.93%

64.69%

 

Percentage of shares (as a % of the total share capital of the company)

39.72%

45.15%

39.72%

 

 

AUDITED STANDALONE AND BALANCE SHEET AS AT MARCH 31, 2013

(Rs. in Millions)

 

S. No

Particulars

31.03.2013

Audited

(A)

EQUITY AND LIABILITIES

 

1

Shareholders funds

 

 

(a) Share Capital

 

 

i) Equity Share Capital

160.609

 

ii) Preference Share capital

-

 

(b) Reserves and Surplus

3280.131

 

(c ) Money Received against Share Warrants

23.721

 

Sub Total Shareholders Funds

3464.461

2

Share application money pending allotment

 

3

Minority interest *

 

4

Non-current liabilities

 

 

a) Long-term borrowings

1839.447

 

(b) Deferred tax liabilities (net)

266.672

 

(c) Other long-term liabilities

611.998

 

(d) Long-term provisions

19.723

 

Sub-total - Non-current liabilities

2737.840

5

Current liabilities

 

 

(a) Short-term borrowings

2256.263

 

(b) Trade payables

468.336

 

(c) Other current liabilities

501.292

 

(d) Short-term provisions

119.741

 

Sub-total - Current liabilities

3345.632

 

TOTAL - EQUITY AND LIABILITIES

9547.934

(B)

ASSETS

 

1

Non-current assets

 

 

(a) Fixed assets

4050.754

 

(b) Capital Work In Progress

92.129

 

(c) Non Current Investment

955.455

 

(d) Long Term Loans and advances

-

 

(e) Other Non Current Assets

0.592

 

Sub-total - Non-current assets

5098.930

2

Current Assets

 

 

(b) Inventories

1403.586

 

(c) Trade receivables

1600.597

 

(d) Cash and cash equivalents

136.667

 

(e) Short-term loans and advances

1246.653

 

(f) Other current assets

61.501

 

Sub-total - Current assets

4449.003

 

TOTAL - ASSETS

9547.934

 

 

FIXED ASSETS

 

  • Land
  • Building
  • Plant and Machinery
  • Electrical Equipment
  • Laboratory Equipment
  • Office Equipment
  • Computers
  • Furniture
  • Vehicles
  • Borewell
  • Generator

 

WEBSITE DETAILS

 

Business Description

 

Subject is an India-based company. The Company operates in two segments: specialty chemicals and pharmaceuticals. The specialty chemicals segment manufactures a range of products active ingredients for home and personal care and personal hygiene products. Pharmaceutical segment is engaged in contract manufacturing and job works. Its portfolio has a range of specialty chemicals (active ingredients) supplied to manufacturers of beauty care products like hair care, skin care, sun care and oral care products, industrial care products, such as anti-microbial, anti-fouling agents and biocides and health care products like pharmaceutical finished drug forms for cancer, tuberculosis. Its subsidiaries include Creative Health Care Private Limited, Vivimed Holdings Limited, Vivimed Labs Europe Limited and Vivimed Labs USA Inc. For the fiscal year ended 31 March 2010, Subject.'s revenues increased 26% to Rs3.5B. Net income increased 60% to Rs310.1M. Revenues reflect an increase in income from Specialty Chemicals and a higher income from Pharmaceutical segments. Net income also reflects lower manufacturing expenses, a decline in advertisement expenses, the presence of income from exchange fluctuations and a rise in operating profit margin.

 

Board of Directors

 

Mr. V. Manohar Rao

Executive Non-Independent Chairman of the Board

Dr. V. Manohar Rao is the Executive Non-Independent Chairman of the Board of Subject. He is Retired as Joint Director of ace The Veterinary Biological and Research Institute (VBRI) and has done his post-graduation in Veterinary Sciences from Edinburgh University, U.K. He has more than 30 years experience in The Municipal Corporation of Hyderabad and Department of Animal Husbandry, Government of Andhra Pradesh. During his tenure with Department of Animal Husbandry, he was involved in administration and production of various vaccines for livestock and poultry. He worked as a special officer for Meat and Poultry Department Corporation Andhra Pradesh Government Enterprises. H e conceptualized and started V V S Pharmaceuticals and Chemicals Private Limited (V V S). He is mainly responsible for developing a sophisticated and well-equipped in-house Quality Control and introduced various cost control systems in production process.

 

Mr. Subhash Varalwar

Executive Non-Independent Vice Chairman of the Board

Mr. Subhash Varalwar is the Executive Non-Independent Vice Chairman of the Board of Vivimed Labs Inc. He is a Post Graduate in Chemical Engineering and a Management Graduate from Leeds University, U.K. After his post graduation he joined The Fertilizer Corporation of India (FCI ) in 1974 as Asst. Project Engineer (Chemical). He held various positions in FCI and worked on various areas like designing and commissioning of fertilizer plant, production etc. He resigned from FCI in 1989 to join Vivimed. Mr. Subhash is responsible for Technology and New Product Development in the chemical segment of the Company. He also heads Production, Quality control and R and D function. He led the technical integration teams of UK/India after acquisition of James Robinson Limited and has implemented the stringent regulatory compliances across all its manufacturing operations globally.

 

Mr. Raj Kumar Dhar

Whole Time Director, Director-Technical, Director Research and Development

Dr. Raj Kumar Dhar is the Whole Time Director, Director-Technical, Director Research and Development of Subject. He has done his Post Doctoral studies at Marburg, Germany, started his career with Hoechst R and D Germany and ever since has been involved in Organic Synthetic chemistry for three decades. Has several novel product developments to his credit and is the chief architect of Vivimeds VINTO X - NDGA. Has been involved with Vivimed in various capacities since inception and became a Whole Time Director in 2008.

 

Mr. Nixon Patel

Non-Executive Independent Director

Mr. Nixon Patel is the Non-Executive Independent Director of Subject. He holds Bachelors degree in Technology (Hons.) from Indian Institute of Technology, Kharagpur and has pursued his MS in Computer Science from New Jersey Institute of Technology. Mr. Nixon Patel, is a entrepreneur with a proven track record for growing 5 businesses from startup to millions of US$ in annual sales, developed in a short span of 20 years.

 

Mr. S. Raghunandan

Whole-Time Director, Director – Operation

Mr. S. Raghunandan is the Executive Non-Independent Director and Director - Operations of Subject. He is a Science Post Graduate, began his career with Chandra Pharmaceuticals the producers of Ibuprofen in India at that time and was with them handling various aspects of Production. Joined Vivimed as Head Production at Bidar Plant and subsequently rose to the position of Director Operations. His association with the company is now more than 20 years.

 

Mr. M. Bhagvanth Rao

Non-Executive Independent Director

Dr. M. Bhagvanth Rao is the Non-Executive Independent Director of Subject. He is a PHD in chemical engineering from the Indian Institute of Sciences, Bangalore and has done his post doctoral studies at the Tokyo Institute of Technology, Japan. He has memberships to various professional associations including Fellowships in the Indian Institute of Chemical Engineers and A.P. Academy of Sciences, Life Membership in the Indian Society for Technical Education, etc. He has over 30 years of experience in research and teaching in the fields of chemical reaction engineering, catalysis, thermodynamics and biochemical engineering. He has been involved with Osmania University, Hyderabad in various positions including the Dean of Development and UGC Affairs, Director of Regional Centre for Urban and Environmental Studies and Director of Physical Education. He has various research publications to his credit some of which include articles in the Canadian Journal of Chemical Engineering, Industrial Engineering and Chemistry Fundamentals (USA), Journal of Polymer Sciences (USA), etc. He also acts as a research consultant to various laboratories like IICT, BHEL R and D NFC , etc.

 

Mr. Divvela Hanumantha Rao

Non-Executive Independent Director

Mr. Divvela Hanumantha Rao is Non-Executive Independent Director of Subject. He has degree in B. Pharm, PGDHA and has got knowledge in application, evaluation and teaching of regulatory affairs in Government, industry and academia. He has over 30 years of experience in various national and international regulatory laws. He served on various assignments for government and private sector in his field of specialization. He retired as Director, Drugs Control Administration, Government of Andhra Pradesh. Presently he is working as consultant to pharma companies

 

Mr. P. V. Rathnam

Non-Executive Independent Director

Mr. P.V. Rathnam is the Non-Executive Independent Director of Subject. He is a Fellow Member of the Institute of Chartered Accountants of India and Management Graduate with post professional qualification experience, in various levels of Management, in private and public sector undertakings in chemicals, fertilizers, pharmaceuticals, automobile and electrical engineering industries, spanning over 44 years, ending with Chairman and Managing Director, from 1990 to 2005, of a medium scale unit engaged in concept to commissioning of custom built electrical machines for on-board installation in Indian warships, submarines and combat aircraft.

 

Mr. Santosh Varalwar

Chief Executive Officer, Managing Director, Executive Non-Independent Director

Mr. Santosh Varalwar is the Chief Executive Officer, Managing Director, Executive Non-Independent Director of Subject. He is a Management Graduate. He is the driving force behind the phenomenal growth of Subject. He worked in Shipping Corporation of India (SCI) and had an opportunity to understand maritime trade and had global exposure, which helped him subsequently to focus on international marketing. H e served Mercantile Marine for about Seven Years before embarking on a entrepreneurial journey. He has played an active role in V V S Pharmaceuticals from the year 1985 and later on expanded the business to manufacture APIs by acquiring EMGI Pharmaceuticals and Chemicals Private Limited, Bidar, which was later converted into a public limited company and named as Subject. Subject was listed on BSE / NSE in the year 2005 and the Public Issue was all time success having been over-subscribed 40 times.

 

Mr. Sandeep Varalwar

Whole Time Director

Mr. Sandeep Varalwar is the Whole Time Director of Subject. He has completed his Graduation in B. Pharmacy. After completion of graduation, he gained 19 years of experience in manufacturing and marketing divisions of Pharma industry. He is the main strength behind the growth of Pharma division of the Company and took an active role in V V S Pharmaceuticals and Chemicals Private Limited. After the Company’s merger with Subject Mr. Sandeep Varalwar was appointed as a Whole Time Director on the Board of Subject.

 

Mr. Peesapati Venkateswarlu

Non-Executive Independent Director

Dr. Peesapati Venkateswarlu is Non-Executive Independent Director of Subject. He has done B. Sc (Spl), M. Sc (Andhra University), Ph. D (Delhi University), C. Chem. FRSC (London). He has 35 years of experience in Research / teaching in various universities in USA, UK and India. Associated with International Experts in the field of Organic, Bioorganic, Medicinal and Polymer Chemistry.

 

Mr. Krishna Yeachuri

Non-Executive Independent Director

Mr. Krishna Yeachuri is Non-Executive Independent Director of Subject. He is Commerce Graduate and Associate member of Institute of Chartered Accountants of India and has experience covering multi facets of business with reputed domestic and multi national companies. He was responsible for strategic planning, business development, budgeting and treasury planning in various Companies in India and overseas for over two decades.

 

Mr. Santosh Varalwar

Chief Executive Officer, Managing Director, Executive Non-Independent Director

Mr. Santosh Varalwar is the Chief Executive Officer, Managing Director, Executive Non-Independent Director of Subject. He is a Management Graduate. He is the driving force behind the phenomenal growth of Subject. He worked in Shipping Corporation of India (SCI) and had an opportunity to understand maritime trade and had global exposure, which helped him subsequently to focus on international marketing. He served Mercantile Marine for about Seven Years before embarking on a entrepreneurial journey. He has played an active role in V V S Pharmaceuticals from the year 1985 and later on expanded the business to manufacture APIs by acquiring EMGI Pharmaceuticals and Chemicals Private Limited, Bidar, which was later converted into a public limited company and named as Subject. Subject was listed on BSE / NSE in the year 2005 and the Public Issue was all time success having been over-subscribed 40 times

 

 

AS PER WEBSITE DETAILS

 

PRESS RELEASES:

 

VIVIMED LABS TO ACQUIRE FINOSO PHARMA

 

Hyderabad-based Vivimed Labs Limited today said that it has proposed to acquire city-based Finoso Pharma Private Limited, a pharmaceutical development services company focused on formulations product development efforts for multiple markets and develops globally accepted dossiers.


The proposed acquisition will be done for a total consideration of Rs 150.000 Millions comprising cash, stock and deferred payment, and will be debt free, according to a company press release.


With a state-of-the-art facility in Alexandria Techno Park in Hyderabd, Finoso had recorded a revenue and EBITDA of Rs 52.000 Millions and Rs 16.000 Millions respectively in the last financial year.


After acquisition, Finoso will become Vivimed’s research and development (R&D) unit to support innovators, generics and licensing efforts. RK Kumar, founder of Finoso, will enter into appropriate management contracts and employment agreements on completion of the transaction, the release said.


The company's scrip is currently trading at Rs 317.35 on BSE, down 3.34 per cent over the previous close of Rs 328.30.

 

 

VIVIMED ACQUIRES A US FDA APPROVED FORMULATION MANUFACTURING FACILITY

 

Provides immediate revenue opportunities in regulated markets through two marketable ANDAs1 and a contract manufacturing agreement with Actavis.

 

Hyderabad, India, July 31, 2013 - Vivimed Labs Limited ("Vivimed" or the Company), a manufacturer of specialty chemicals and pharmaceuticals announced today that it has signed an agreement to acquire Actavis Pharma Manufacturing Pvt. Ltd.'s ("APMPL") solid oral dosage ("SOD") facility in Alathur, Tamil Nadu, India. The facility is being acquired from its parent Actavis Holding Asia B.V. ("Actavis"), an affiliate of Actavis Inc., a leading global generic and specialty pharmaceutical company.

 

Commenting on these developments, Mr. Santosh Varalwar, Managing Director and CEO of Vivimed said;

 

"We are pleased to announce the acquisition of APMPL's SOD facilities as a part of our overall strategy to move up the healthcare value chain. This acquisition is particularly important given it provides our finished dosage formulation manufacturing platform with a US FDA approved facility and immediate access to the regulated markets. There are also compelling forward integration synergies for Vivimed's existing API business2 and formulations dossier development activities. Along with the facility, we have acquired two commercially valuable and marketable ANDAs which we believe, will allow us to generate additional revenues. We are also entering into a contract manufacturing agreement with the Actavis Group for a defined period which will also be a source of revenue for us. The transaction has been structured attractively at a low net cash consideration for Vivimed."

 

Overview of APMPL

 

Following the acquisition of Actavis by Watson in 2012, the new entity decided to divest Actavis' active pharmaceutical ingredients ("API") and SOD facilities to consolidate their overall capacities. The API facilities were previously divested in May 2013.

 

Vivimed has now entered into an agreement to acquire the APMPL SOD facility. As a result of significant capital investments in the past, this facility has best in class plant design, process engineering frameworks and analytical equipment. US FDA approvals were received in April 2007 with renewals in April 2009 and October. 2011. The current capacity of the facility is 1.2 billion SOD per annum. The facility is located on a five acre site of which three acres are currently unutilized. Vivimed eventually plans to meaningfully expand APMPL's current manufacturing capacities over the medium term.

 

 

Strategic Rationale

 

This acquisition is strategically attractive given it provides Vivimed with immediate finished dosage formulations ("FDF") access to the US, the largest generics market in the world. In addition, this US FDA approved facility is a natural extension for Vivimed's manufacturing platform which currently only caters to the FDF semi-regulated markets.

 

Vivimed's dossier development capabilities will now be forward integrated with the APMPL SOD platform for manufacturing formulations. In addition, the contracted terms provide for two ANDAs (Losartan and Donepezil) to be transferred along with the sale and are expected to generate immediate revenues for Vivimed. Simultaneously, Vivimed will develop its own formulation dossiers and start building a filing pipeline with APMPL SOD as the manufacturing site. The acquisition provides immediate access to regulated markets instead of a three to four year lead time involved in undertaking a similar green-field project with the required regulatory approvals.

 

Vivimed views this development as a foundation for forging a deeper association with Actavis in multiple business areas in the future. Opportunities which could emerge over the longer term include Actavis' potential use of Vivimed's existing API manufacturing platform and being considered for any future ANDA divestments by Actavis.

 

Deal Structure

 

The gross acquisition consideration is Rs. 1,220 million and is being funded through an optimal combination of internal accruals and debt. The structuring is made attractive by the available cash balance and the appropriate working capital support being provided by the Actavis Group towards execution of the contract manufacturing agreement. As a part of the transaction, Actavis and Vivimed are also entering into a contract manufacturing agreement for Vivimed to manufacture a set of products for Actavis Group over a defined period.

 

Wadia-Ghandy has served Vivimed as legal counsel for this transaction.

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 proeeding 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.61.12

UK Pound

1

Rs.94.77

Euro

1

Rs.81.54

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Report Prepared by :

RAJ

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

59

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.