MIRA
INFORM REPORT
|
Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
RANBAXY LABORATORIES LIMITED |
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Registered
Office : |
A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali
– 160 071, |
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Country : |
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Financials (as
on) : |
31.12.2012 |
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Date of
Incorporation : |
16.06.1961 |
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Com. Reg. No.: |
16-003747 |
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Capital
Investment / Paid-up Capital : |
Rs.2114.570
millions |
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|
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CIN No.: [Company Identification
No.] |
L24231PB1961PLC003747 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PTLR10986D PTLR11862E |
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PAN No.: [Permanent Account No.] |
AAACR0127N |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing and
Trading of formulations, active pharmaceuticals ingredients (API) and
intermediate, generics, drug discovery and consumer health care products and
also engaged in rendering of financial services. |
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|
|
|
No. of Employees
: |
14600
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 76883000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a subsidiary of ‘Daiichi Sankyo Company Limited, Japan’. It is a leading global generic drug manufacturing company and India’s
largest pharmaceutical company in term of sales. It is a well established and reputed company having a fine track
record. It has diversified product offerings, dominant position in the
domestic pharmaceutical market and its established presence in the global
market. There appears some dip in its sales during financial year December
2012 and has incurred some loss. However, trade relations are reported as decent. 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 – 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 |
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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 |
CRISIL |
|
Rating |
Short Term Rating = A1+ |
|
Rating Explanation |
Highest degree of safety. It carry lowest
credit risk. |
|
Date |
22.05.2013 |
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/ Factory 1 : |
A-41, Industrial Area Phase VIII-A, Sahibzada Ajit Singh Nagar, Mohali
– 160 071, Punjab, India |
|
Tel. No.: |
91-172-2271450/ 5013655/ 6678666 |
|
Fax No.: |
91-172-2226925/ 5013376 |
|
E-Mail : |
corporate.communications@ranbaxy.com
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Website : |
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Corporate Office : |
Plot No.90, Sector 32, Gurgaon - 122 001, |
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Tel. No.: |
91-124-4135000 |
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Fax No.: |
91-124-4135001/ 4106490 |
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E-Mail : |
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Research and |
Plot No.20, Sector - 18, Udyog Vihar Industrial Area, Gurgaon – 122
001, |
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Tel. No.: |
91-124 2342001-10 |
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Fax No.: |
91-124-2343545 |
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E-Mail : |
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Factory 2 : |
Village Toansa,
P.O. Railmajra, District Nawansahar – 144 533, Punjab, India |
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Factory 3 : |
Industrial Area
3, A.B. Road, Dewas – 450 001, Madhya Pradesh, India |
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Factory 4 : |
Village and P.O.
Ganguwala, Tehsil Paonta Sahib, District Sirmour – 173 025, Himachal Pradesh,
India |
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Factory 5 : |
Village
Batamandi, Tehsil Paonta Sahib, District Sirmour – 173 025, Himachal Pradesh,
India |
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Factory 6 : |
Plot No.B-2,
Madkaim Industrial Estate, Ponda, Goa, India |
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Factory 7 : |
K-5, 6, 7,
Ghirongi, Malanpur, District Bhind – 477 116, Madhya Pradesh, India |
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Factory 8 : |
Plot No.1341 and
1342, EPIP-1, Hill Top Industrial Area, Village-Bhatolikalan (Barotiwala),
Baddi – 174 103, Himachal Pradesh, India |
DIRECTORS
As on 31.12.2012
|
Name : |
Dr. Tsutomu Une |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Arun Sawhney |
|
Designation : |
Managing Director |
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|
Name : |
Mr. Akihiro Watanabe |
|
Designation : |
Director |
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|
Name : |
Dr. Anthony H. Wild |
|
Designation : |
Director |
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|
Name : |
Dr. Kazunori Hirokawa |
|
Designation : |
Director |
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|
Name : |
Mr. Percy K. Shroff |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Rajesh V. Shah |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Takashi Shoda |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil K. Patawari |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Mr. Arun Sawhney |
|
Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
268711323 |
65.30 |
|
|
268711323 |
65.30 |
|
Total shareholding of Promoter and Promoter Group (A) |
268711323 |
65.30 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3716089 |
0.90 |
|
|
1635636 |
0.40 |
|
|
32871425 |
7.99 |
|
|
44106315 |
10.72 |
|
|
82329465 |
20.01 |
|
|
|
|
|
|
12730853 |
3.09 |
|
|
|
|
|
|
42257592 |
10.27 |
|
|
3107008 |
0.76 |
|
|
2378407 |
0.58 |
|
|
126953 |
0.03 |
|
|
2251454 |
0.55 |
|
|
60473860 |
14.70 |
|
Total Public shareholding (B) |
142803325 |
34.70 |
|
Total (A)+(B) |
411514648 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
11614861 |
0.00 |
|
|
11614861 |
0.00 |
|
Total (A)+(B)+(C) |
423129509 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Trading of formulations, active pharmaceuticals ingredients (API) and
intermediate, generics, drug discovery and consumer health care products and also
engaged in rendering of financial services. |
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Products : |
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PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Dosage forms |
|
|
|
|
Tablets |
Nos. in million |
11992.70 |
4592.10 |
|
Capsules |
Nos. in million |
3698.00 |
1625.66 |
|
Dry syrups/Powders |
Bottles in
million |
78.00 |
26.97 |
|
Ampoules |
Nos. in million |
48.00 |
93.23 |
|
Vials |
Nos. in million |
35.00 |
44.76 |
|
Liquids $ |
Kilolitres |
-- |
762.16 |
|
Drops $ |
Kilolitres |
-- |
32.66 |
|
Active pharmaceuticals ingredients and drugs intermediates |
Tonnes |
1376.73 |
885.20# |
|
Ointments (including sprays) |
Tonnes |
* |
532.56 |
* In different denominations than actual production.
# Inclusive of production used for captive consumption.
$ Installed capacity is not given as the same
is manufactured by loan licensees.
Notes:
1 In terms of
press Note no. 4 (1994 series) dated 25 October 1994 issued by the department
of Industrial Development, Ministry of Industry, Government of India and
Notification no. S.O. 137 (E) dated 01 March 1999 issued by the Department of
Industrial Policy and Promotion, Ministry of Industry, Government of India,
Industrial licensing has been abolished in respect of bulk drugs and
formulations. Hence, there are no registered/ Licenced capacities for these
bulk drugs and formulations.
2 Installed capacity
being effective operational capacity has been calculated on a double shift
basis for dosage forms facilities except in respect of certain plants for which
installed capacity for production of Tablets has been calculated on a single
shift/triple shift and on a continuous basis for active pharmaceuticals
ingredients and drug intermediates, it may vary according to the production
mix. In addition, installed capacities does not include the installed capacity
in relation to goods produced at loan licensees and contract manufacturers.
3 Actual productions includes production at loan licensee and contract
manufacturers locations.
GENERAL INFORMATION
|
No. of Employees : |
14600
(Approximately) |
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Bankers : |
· Credit Agricole CIB · Royal Bank of Scotland NV · Citibank NA · Deutsche Bank AG · Hong Kong and Shanghai Banking Corporation · Punjab National Bank · Standard Chartered Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
BSR and Company Chartered Accountants |
|
Address : |
Building No.10,
8th Floor, Tower-B, DLF Cyber City, Phase – II, Gurgaon – 122 002,
Haryana, India |
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|
Related parties with whom transactions have taken place during the
year or previous year: |
|
|
Holding company (also being the ultimate holding company) : |
·
Daiichi Sankyo Company Limited, Japan |
|
|
|
|
Fellow Subsidiaries : |
·
Daiichi Sankyo India Pharma Private Limited,
India ·
Daiichi Sankyo Chemical Pharma Company Limited,
Japan ·
Daiichi Sankyo Propharma Company Limited, Japan ·
Daiichi Sankyo Development Limited, UK ·
Ranbaxy Mexico S.A.de C.V., Mexico (from 30 July
2011) ·
Daiichi Sankyo Inc., USA |
|
|
|
|
Subsidiaries including step down subsidiaries / partnership firms : |
·
Ranbaxy Drugs and Chemicals Company, India
(Company with unlimited liability) ·
Solus Pharmaceuticals Limited, India ·
Ranbaxy SEZ Limited, India ·
Rexcel Pharmaceuticals Limited, India ·
Ranbaxy Life Sciences Research Limited, India ·
Gufic Pharma Limited, India ·
Ranbaxy Drugs Limited, India ·
Solrex Pharmaceuticals Company, India (a
Partnership firm) ·
Ranbaxy (Hong Kong) Limited, Hong Kong ·
Ranbaxy Inc., USA ·
Ranbaxy Laboratories Inc., USA ·
Ranbaxy Egypt (L.L.C.), Egypt ·
Ranbaxy Farmaceutica Ltda., Brazil ·
Ranbaxy-PRP-(Peru) S.A.C, Peru ·
Ranbaxy Australia Pty Limited, Australia ·
Ranbaxy Unichem Co. Limited, Thailand ·
Ranbaxy Italia S.p.A, Italy ·
Ranbaxy Malaysia Sdn. Bhd., Malaysia ·
Ranbaxy (Poland) S. P. Z.O.O, Poland ·
Ranbaxy Nigeria Limited, Nigeria ·
Ranbaxy Europe Limited, UK ·
Ranbaxy (UK) Limited, UK ·
Basics GmbH, Germany ·
Ranbaxy Mexico S.A.de C.V., Mexico (upto 29 July
2011) ·
ZAO Ranbaxy, Russia ·
Terapia S.A., Romania ·
Ranbaxy Pharmaceuticals Inc., USA ·
Ohm Laboratories Inc., USA ·
Ranbaxy Ireland Limited, Ireland ·
Ranbaxy (South Africa) Proprietary Limited, South
Africa ·
Laboratorios Ranbaxy S.L., Spain ·
Ranbaxy Pharmacie Generiques SAS, France ·
Ranbaxy Pharmaceuticals Canada Inc., Canada ·
Sonke Pharmaceuticals (Proprietary) Limited,
South Africa ·
Ranbaxy Portugal - Com E Desenvolv De Prod
Farmaceuticos Unipessoal Lda, Portugal ·
Ranbaxy Belgium N.V., Belgium ·
Be-Tabs Pharmaceuticals (Proprietary) Limited,
South Africa ·
Rexcel Egypt LLC, Egypt ·
Ranbaxy Morocco LLC, Morocco (from 4 February
2011) ·
Ranbaxy Pharmaceuticals Ukraine LLC, Ukraine
(from 13 June 2012) |
|
|
|
|
Associate Company : |
·
Zenotech Laboratories Limited, India |
|
|
|
|
Related parties with whom no transactions have taken place during the
year or previous year: |
|
|
Subsidiaries including step down subsidiaries : |
·
Vidyut Investments Limited, India ·
Ranbaxy (Netherlands) BV, The Netherlands ·
Ranbaxy Signature LLC, USA ·
Be-Tabs Investments (Proprietary) Limited, South
Africa ·
Terapia Distributie S.R.L., Romania (Merged with
Terapia S.A., Romania w.e.f. 7 February 2012) ·
Office Pharmaceutique Industriel et Hospitalier
SARL, France ·
Ranbaxy Holdings (UK) Limited, United Kingdom
(‘UK’) ·
Ranbaxy Do Brazil Ltda., Brazil ·
Ranbaxy Pharma AB, Sweden ·
Ranbaxy USA Inc., USA ·
Ranbaxy GmbH, Germany (from 9 November 2012) ·
Ranbaxy Mexico Servicios S.A.de C.V., Mexico
(upto 29 July 2011) |
|
|
|
|
Associate Company : |
·
Shimal Research Laboratories Limited, India (upto
30 June 2011) |
CAPITAL STRUCTURE
As on 31.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
598000000 |
Equity Shares |
Rs.5/- each |
Rs.2990.000 millions |
|
100000 |
Cumulative Preference Shares |
Rs.100/- each |
Rs.10.000 millions |
|
|
Total |
|
Rs.3000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
422913803 |
Equity Shares |
Rs.5/- each |
Rs.2114.570
millions |
|
|
|
|
|
Rights,
preferences and restrictions attached to shares
As per the Memorandum
of Association, the Company’s authorised share capital consists of equity
shares and preference shares. Preference shares shall be entitled for such rate
of dividend as may be decided by the Directors of the Company at the time of
issue of such shares and shall rank in priority to the equity shares including
arrears, if any, in the event of the winding up of the Company, but shall not
be entitled to any further participation in the profits or surplus assets of
the Company. Preference shares are entitled to one vote per share at meetings
of the Company only in respect of resolutions directly affecting their rights.
However, a cumulative preference shareholder acquires voting rights on par with
an equity shareholder if the dividend on preference shares has remained unpaid
for a period of not less than two years.
All equity shares
rank equally with regard to dividends and share in the Company’s residual
assets. The equity shares are entitled to receive dividend as declared from
time to time. The voting rights of an equity shareholder on show of hand or
through proxy shall be in proportion to his share of the paid-up equity capital
of the Company. On winding up of the Company, the holders of equity shares will
be entitled to receive the residual assets of the Company, remaining after
distribution of all preferential amounts in proportion to the number of equity
shares held.
Reconciliation of equity shares outstanding at the commencement and at
the end of the year
|
Particulars |
As at 31 December
2012 |
|
|
No. of Equity Shares |
Amount (Rs. in
millions) |
|
|
At the commencement of the year |
421999724 |
2110.000 |
|
Add: Shares issued on exercise of employee stock options by the
Company |
474079 |
2.370 |
|
Add: Shares issued to the Trust under ESOP - 2011 |
440000 |
2.200 |
|
At the end of the year |
422913803 |
2114.570 |
Equity shares held by holding/ ultimate holding company
|
Particulars |
As at 31
December 2012 |
|
|
No. of Equity Shares |
Amount (Rs. in
millions) |
|
|
Daiichi Sankyo Company Limited, Japan (Daiichi Sankyo), the holding company, also being the ultimate holding
company |
268711323 |
1343.560 |
Particulars of shareholders
holding more than 5% shares of issued, subscribed and paid-up capital of equity
shares
|
Particulars |
As at 31
December 2012 |
|
|
No. of Equity Shares |
% Holding |
|
|
Daiichi Sankyo |
268711323 |
63.54 |
|
Life Insurance Corporation of India, India |
26726570 |
6.32 |
f. During the year
ended 31 December 2012, the Company has issued 440000 equity shares of Rs.5
each issued for cash at par to Ranbaxy ESOP Trust (Trust), set up to administer
Employees Stock Option Plan (ESOP - 2011). Out of the total equity shares
issued to the Trust, 238762 equity shares have been allocated by the Trust to
the respective employees upon exercise of stock options from time to time under
ESOP - 2011. As at 31 December 2012, 526238 equity shares are pending to be
allocated to the employees upon exercise of stock options.
g. During the five
years period ended 31 December 2012, neither any bonus shares or shares issued
for consideration other than cash that have been issued nor any shares that
have been bought back.
h. Issued,
subscribed and paid-up share capital include 8963108 Global Depository Shares
(GDSs) representing 8963108 equity shares of Rs.5 2.12% of the issued, subscribed and paid-up
share capital of the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.12.2012 |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
2114.570 |
2110.000 |
|
(b) Reserves & Surplus |
|
17095.100 |
17131.640 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
11.100 |
6.660 |
|
Total Shareholders’
Funds (1) + (2) |
|
19220.770 |
19248.300 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
19568.100 |
9524.110 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
10363.480 |
15977.190 |
|
(d) long-term provisions |
|
2739.040 |
2297.910 |
|
Total Non-current Liabilities (3) |
|
32670.620 |
27799.210 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
28067.950 |
29310.020 |
|
(b) Trade payables |
|
8588.110 |
9856.370 |
|
(c) Other current liabilities |
|
13320.780 |
30004.520 |
|
(d) Short-term provisions |
|
27831.110 |
26990.830 |
|
Total Current Liabilities (4) |
|
77807.950 |
96161.740 |
|
|
|
|
|
|
TOTAL |
|
129699.340 |
143209.250 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
19308.430 |
17882.550 |
|
(ii) Intangible Assets |
|
626.850 |
787.420 |
|
(iii) Capital work-in-progress |
|
1465.370 |
2004.930 |
|
(iv) Intangible assets under development |
|
130.590 |
86.310 |
|
(b) Non-current Investments |
|
31281.370 |
34081.470 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
10107.120 |
9412.340 |
|
(e) Other Non-current assets |
|
215.700 |
0.860 |
|
Total Non-Current Assets |
|
63135.430 |
64255.880 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
30.320 |
26.460 |
|
(b) Inventories |
|
17318.390 |
16552.310 |
|
(c) Trade receivables |
|
14358.880 |
36828.190 |
|
(d) Cash and cash equivalents |
|
28347.730 |
19379.530 |
|
(e) Short-term loans and advances |
|
5041.480 |
3399.750 |
|
(f) Other current assets |
|
1467.110 |
2767.130 |
|
Total Current Assets |
|
66563.910 |
78953.370 |
|
|
|
|
|
|
TOTAL |
|
129699.340 |
143209.250 |
|
SOURCES OF FUNDS |
|
|
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
2105.200 |
|
|
2] Share application money pending allotment |
|
|
65.960 |
|
|
3] Reserves & Surplus |
|
|
49152.760 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
51323.920 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1953.850 |
|
|
2] Unsecured Loans |
|
|
40653.300 |
|
|
TOTAL BORROWING |
|
|
42607.150 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
93931.070 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
17121.180 |
|
|
Capital work-in-progress |
|
|
3301.820 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
38044.370 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
14899.060
|
|
|
Sundry Debtors |
|
|
12926.320
|
|
|
Cash & Bank Balances |
|
|
27122.820
|
|
|
Other Current Assets |
|
|
3205.970
|
|
|
Loans & Advances |
|
|
11498.550
|
|
Total
Current Assets |
|
|
69652.720
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
12447.760
|
|
|
Other Current Liabilities |
|
|
12463.060
|
|
|
Provisions |
|
|
9278.200
|
|
Total
Current Liabilities |
|
|
34189.020
|
|
|
Net Current Assets |
|
|
35463.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
93931.070 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
63035.440 |
77990.570 |
56721.020 |
|
|
|
Other Income |
2571.630 |
2226.550 |
10017.820 |
|
|
|
TOTAL (A) |
65607.070 |
80217.120 |
66738.840 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
15286.610 |
17849.130 |
|
|
|
|
Purchases of stock-in-trade |
8090.010 |
6367.310 |
|
|
|
|
Change in
inventories of finished goods, work-in-progress and stock-in-trade |
(492.450) |
(1357.220) |
|
|
|
|
Employee benefits
expense |
10195.890 |
8607.110 |
|
|
|
|
Other expenses |
25526.160 |
35783.820 |
|
|
|
|
Exceptional items: |
|
|
48260.920 |
|
|
|
Settlement provision |
0.000 |
26480.000 |
|
|
|
|
Provision for other-than-temporary
diminution in the value of non-current investment |
1030.000 |
0.000 |
|
|
|
|
Product recall |
2370.200 |
0.000 |
|
|
|
|
Loss on foreign
currency option derivatives, net (other than on loans) |
412.050 |
11242.850 |
|
|
|
|
TOTAL (B) |
62418.470 |
104973.000 |
48260.920 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3188.600 |
(24755.880) |
18477.920 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2969.820 |
2989.990 |
541.940 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
218.780 |
(27745.870) |
17935.980 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1861.610 |
2740.830 |
2283.530 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(1642.830) |
(30486.700) |
15652.450 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(19.440) |
33.790 |
4165.190 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(1623.390) |
(30520.490) |
11487.260 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(23689.310) |
6828.680 |
(2532.230) |
|
|
|
|
|
|
|
|
|
|
Transfer from foreign projects reserve |
-- |
0.000 |
4.590 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
-- |
0.650 |
842.080 |
|
|
|
Tax on proposed dividend |
-- |
(3.150) |
139.860 |
|
|
|
Transfer to general reserve |
-- |
0.000 |
1149.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(25312.700) |
(23689.310) |
6828.680 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports on F.O.B. basis (excluding sales made to customers located in
Nepal) |
37856.870 |
54114.790 |
33603.180 |
|
|
|
Royalty, milestone, technical know-how and product development |
538.170 |
613.160 |
790.140 |
|
|
|
Interest |
104.540 |
131.180 |
-- |
|
|
|
Dividend |
10.040 |
11.830 |
13.060 |
|
|
|
Others (freight/
insurance recoveries and other operating revenues) |
1006.100 |
944.200 |
3460.050 |
|
|
TOTAL EARNINGS |
39515.720 |
55815.160 |
37866.430 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials (including packing materials) |
7179.750 |
7592.690 |
6426.470 |
|
|
|
Components, stores and spare parts |
145.750 |
134.290 |
101.290 |
|
|
|
Capital Goods |
472.490 |
560.780 |
166.750 |
|
|
TOTAL IMPORTS |
7797.990 |
8287.760 |
6694.510 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
(3.85) |
(72.42) |
27.30 |
|
|
|
- Diluted |
(3.85) |
(72.42) |
23.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2013 |
30.06.2013 |
30.09.2013 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
13816.400 |
14388.900 |
14258.400 |
|
Total Expenditure |
13510.300 |
17000.600 |
15888.900 |
|
PBIDT (Excl OI) |
306.100 |
(2611.800) |
(1630.500) |
|
Other Income |
523.300 |
310.400 |
443.500 |
|
Operating Profit |
829.300 |
(2301.300) |
(1187.000) |
|
Interest |
493.300 |
457.300 |
499.000 |
|
Exceptional Items |
818.400 |
(2883.000) |
(5792.200) |
|
PBDT |
1154.400 |
(5641.600) |
(7478.300) |
|
Depreciation |
452.900 |
446.500 |
944.100 |
|
Profit Before Tax |
701.500 |
(6088.100) |
(8422.300) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
701.500 |
(6088.100) |
(8422.300) |
|
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 |
701.500 |
(6088.100) |
(8422.300) |
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
(2.47) |
(38.05)
|
17.21
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.61) |
(39.09)
|
27.60
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.27) |
(28.48)
|
18.04
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.09) |
(1.58)
|
0.30
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.48 |
2.02
|
0.83
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86 |
0.82
|
2.04
|
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 |
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 |
Yes |
|
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 |
PUNJAB AND HARYANA
HIGH COURT CASE STATUS INFORMATION SYSTEMS
CASE STATUS:
PENDING
|
Status of company Petitions 30 of 2011 |
|
|
SUPRIYA PHARMACEUTICALS LIMITED VS. RANBAXY LABORATORIES LIMITED |
|
|
Pet’s Adv.: Aashish Chopra, Deepak
Su Next Date of Hearing: 15.05.2013 Next Date of Hearing: Thursday, May 16, 2013 Last Listed on: Friday, January 25,
2013 Last Type: L FIR No.: No FIR details available/ Not a criminal
case Category: Company Petitions Bench for next hearing Dt: Mr. Justice
Surya Kant, Bench SI. No.:7 Bench for Last Hearing Dt: Mr. Justice Surya Kant, Bench Sl. No.:8 |
|
|
Connected
Application (S) |
Connected Matter
(S) |
|
No Connected Application. |
|
|
|
CA 116 of 2011 |
|
|
CA 117 of 2011 |
|
|
|
|
Case Updated on:
Friday, January 25, 2013 |
|
------------------------------------------------------------------------------------------------------------------------------
UNSECURED LOANS
Rs. In Millions
|
Particular |
31.12.2012 |
31.12.2011 |
|
LONG-TERM BORROWINGS |
|
|
|
Term loans |
|
|
|
From banks |
|
|
|
- External commercial borrowings (ECBs) |
12046.100 |
9496.610 |
|
- Other |
2500.000 |
0.000 |
|
From other party |
22.000 |
27.500 |
|
SHORT-TERM BORROWINGS |
|
|
|
Other loans and advances |
|
|
|
From banks |
20626.150 |
18214.130 |
|
Commercial paper |
3000.000 |
8800.000 |
|
Total
|
38194.250 |
36538.240 |
COMPANY OVERVIEW
The Company
together with its subsidiaries and an associate, operates as an integrated
international pharmaceutical organisation with businesses encompassing the
entire value chain in the marketing, production and distribution of
pharmaceutical products.
The Company’s
shares are listed for trading on the National Stock Exchange and the Bombay
Stock Exchange in India. Its Global Depository Shares (representing equity
shares of the Company) are listed on the Luxembourg Stock Exchange. During the
current year, the Company has issued redeemable non-convertible debentures
which are listed for trading on the National Stock Exchange in India.
OPERATIONS
The Company
continued to be the leader amongst the pharmaceutical companies from India with
consolidated global sales of Rs.122529.000 millions against Rs.99700.000
millions in the previous year registering a growth of 23%. Profit before
exceptional items and tax stood at Rs.14721.000 millions against a loss of
Rs.10480.000 millions in the previous year. Profit after tax stood at
Rs.9228.000 millions as against a loss of Rs.28997.000 millions in the previous
year despite the challenges in some of the major markets and foreign exchange
impact due to depreciation of the Rupee against major currencies. However, in the
standalone accounts, the Company incurred a loss of Rs.1623.000 millions
primarily due to foreign exchange impact on account of depreciation of the
Rupee against major currencies, impairment of investments in subsidiaries and
recall of Atorvastatin in the U.S.A.
In April 2012, the
Company launched India’s first new drug, SynriamTM, a new age anti-malarial for
the treatment of uncomplicated Plasmodium falciparum malaria in adults, thereby
opening a new chapter in the history of Research and Development in India.
During the second
half of the year, the Company made a voluntary recall of Atorvastatin tablets
in the U.S.A. due to the potential presence of a very small foreign matter. Due
to this, the Company had to write off the inventory which has impacted the
profitability of the Company. In continuation of signing of the Consent Decree
with the USFDA, the Company is in the final stage of settlement with the U.S.
Department of Justice (DOJ) to resolve civil and criminal liabilities.
The Company
continues to maintain strategic focus on the ‘branded’ markets, improvement in
the product mix, capitalizing product level opportunities for which regulatory
approvals have been received, product rationalization, greater marketing
synergies and cost-efficiency throughout the organization.
SUBSIDIARIES AND
JOINT VENTURES
In continuation of
the pursuit of leveraging and maximizing the synergies of the Hybrid Business
Model, the Company and Daiichi Sankyo Co. Limited, have decided to integrate
the management and operations of the subsidiaries in Thailand.
With a view to
create sustainable business base in CIS countries, the Company incorporated a
subsidiary in Ukraine, through Ranbaxy (Netherlands) B.V., a wholly owned
subsidiary of the Company. Further, for competing better in German market,
another subsidiary in Germany was set up through Basics GmbH, a wholly owned
subsidiary of the Company.
The Hon’ble High
Courts of Delhi and Punjab and Haryana have approved the scheme of merger of
Rexcel Pharmaceuticals Limited, Solus Pharmaceuticals Limited, Ranbaxy Drugs
and Chemicals Company, Ranbaxy Life Sciences Research Limited and Ranbaxy SEZ
Limited with Ranbaxy Drugs Limited, another wholly owned subsidiary of the
Company.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Global Industry
Structure and Developments
The global
pharmaceutical market is estimated to grow to ~US$ 1 trillion1 in 2013, up from
US$ 956 billion in 2011. The market is forecasted to grow at a CAGR of 3-6%
over 2012-16 to US$ 1.1-1.2 trillion in sales by 2016. More than 60% of this
increase in the Pharmaceutical market is expected to be contributed by the
Pharmerging2 markets which are anticipated to grow at 12-15%, while the rest of
the growth is expected from the Developed3 markets which are likely to grow at
a much lower rate of 1-4%.
Pharmaceutical
sales in the United States of America (USA), the largest pharmaceutical market
in the world, is expected to be in the range of US$ 350-380 billion by 2016,
with growth rate in the range of 1-4%. Sales in Japan, the second largest
pharma market, is expected to be in the range of US$ 105-135 billion by 2016
reflecting a CAGR of 1-4% during the period 2012-16. Top 5 European markets are
expected to grow at a CAGR of -1% to 2% till 2016 to achieve sales in the range
of US$ 135-165 billion. Sales in the pharmerging markets, with their higher
rate of growth, are expected to match those in the US pharma market by 2016.
The global pharma
industry for patented products continues to remain fragmented and fiercely
competitive. It also faces increased genericisation. The generics industry, on
the other hand, has the opportunity to capitalise on the products going
off-patent in the coming years. In trying to cope with these challenges, the
industry has witnessed consolidation; this may be replicated across the global
pharma world especially in the generics space.
The mature
developed markets have a share of over 65% of the world pharmaceuticals market.
This is expected to decline to 57% by 2016. Here too, the pharmerging markets
are expected to grow at a significantly higher rate than the rest of the world
and would account for 30% of the global spending in 2016.
Generics
The generics segment
of the global pharmaceutical market contributed 25% in 2011 and is expected to
reach 35% of the total global pharma spending by 2016 growing at a CAGR of
11-12%, compared with a 1-2% CAGR in the patented branded market. Market
expansion is led primarily by the increase in genericisation (Patented drugs
worth over US$ 100 billion, going off patent in the USA by 2016), healthcare
cost containment by governments/ payers and relatively low penetration in some
major geographies.
Contribution from
the pharmerging markets has gone up with China, India, Brazil and Russia
contributing over 40% of the sales in the generics industry. Sales growth in
pharmerging markets is expected to increase to US$ 35-45 billion in 2016 from
the current US$ 24 billion in 2012 as the healthcare infrastructure develops
and people gain better access to medicines.
United States of
America: The prescription sales of branded products continued to decline during
the year. As with the global pharma market, the USA is the largest constituent
of generics, with 30% market share by value in 2011. Over two-thirds of the
total volumes in the market comprise generic products. Pharma sales in the
country grew by 3% during 2007-11 and is expected to grow at 1-4% CAGR through
2016. Patent expiries through 2016 resulted in brand sales (over US$ 100
billion) to shift towards generics, which could sell at a fraction of innovator
product prices. Since 2005, growth in the generics market in the country has
been ahead of the pharma market. This trend is expected to continue over the
foreseeable future.
Europe: Major EU markets
contribute to 25% by value to the worldwide generics industry and have grown at
a faster rate when compared to the low single digit growth for the pharma
industry as a whole. The generics market growth was expected to slow down to 4%
CAGR between 2009-14. The Governments in the region are encouraging greater use
of generics as they implement austerity programmes in response to the slowdown
in the region. Lower reimbursements in countries such as Spain and reduced
savings from the patent expiries may further result in a shift towards generic
medicines. We view Europe as two different markets: West and East. While the
evolution of the West European market is more aligned to that of the developed
world, the East European markets allow branded generics nature of business.
India: The Indian
Pharmaceutical Market (IPM) is expected to grow at a CAGR of 15% to ~US$ 29
billion in 2016. The key factors driving growth in the IPM are sustained
economic growth, increase in healthcare access and increased penetration in
smaller towns. During 2012, growth in the IPM was primarily driven by volume of
around 60% and new introductions contributing around 40% with minimal price
increase. A key structural development was the introduction of the new pricing
policy (National Pharma Pricing Policy), which will expand the coverage of
medicines under price control to almost three times that of the earlier price
control mechanism, DPCO (Drugs Price Control Order).
Outlook on
Opportunities
The annual global
spend is expected to more than double to US$ 70 billion by 2016 from US$ 30
billion in 2012. About 60% will come from increased usage of existing generics
and the rest from newly available generics.
The generics
industry is expected to continue on its growth path aided by multiple factors
including (a) opportunity of over US$ 100 billion drugs going off patent by
2016; (b) increasing burden of healthcare in developed markets, especially the
USA, the UK and Germany, that are most impacted during the current challenging
economic times; (c) opportunity for generics penetration in some of the key
markets such as Japan and parts of Europe; (d) increasing access to healthcare
in developing economies; and (e) increasing competition and consolidation in
the industry. Ranbaxy has ground presence in over 43 countries and sell
products in more than 150 countries across the developed, emerging and lesser
developed parts of the world. These markets have their unique characteristics
and value drivers, such as branded generics and quality connect by end-customer
for the emerging markets, and commoditised, genericisation, in the form of
First-to-Files (FTFs) or First-to-Launches (FTLs), in the developed parts of
the world. With a strong marketing and distribution network, local
manufacturing presence and trained, multi-cultural manpower, they are well
positioned to grow across these markets. Our worldwide presence allows them to
not only adjust and adapt to changes in the macro-environment but also prepare
for the evolution of the sector per se. Further, with over 60% of revenues,
excluding FTF revenues, from the emerging markets, that are expected to grow at
a rate faster than the market as a whole and investments largely in place,
their wide geographic presence gives them a unique advantage.
FIXED ASSETS:
Tangible assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Office Equipments
· Vehicles
Intangible assets
· Product development
· Patent rights, trade marks, designs and Licenses
· Computer software
· Non-compete fee
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10406999 |
18/02/2013 |
5,000,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B68476811 |
|
2 |
80052154 |
30/12/2005 |
728,500,000.00 |
CITI BANK N.A. |
JEEVAN VIHAR BUILDING PARLIAMENT STREET, NEW DELHI , DELHI - 110001, INDIA |
- |
|
3 |
90172173 |
24/10/2003 |
3,000,000,000.00 |
STATE BANK OF INDIA |
JEEVAN VYAPAR BHAVAN, 11 TH AND 12TH FLOOR 1 TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA |
- |
|
4 |
90169791 |
09/04/2003 |
364,000,000.00 |
CREDIT LYONNAIS |
6TH FLOOR 15 KASTURBA MARG, NEW DELHI, DELHI - 110001, INDIA |
- |
|
5 |
90169771 |
17/02/2003 |
301,700,000.00 |
DEUTCHE BANK |
BRANCH OFFICE15-17 TOLSTOY, HOUSE TOLSTOY MARG, NEW DELHI, DELHI - 110001, INDIA |
- |
|
6 |
90169680 |
03/07/2002 |
484,000,000.00 |
STANDARD CHARTERED BANK |
PARLIAMENT STREET, NEW DELHI, DELHI, INDIA |
- |
|
7 |
80052153 |
24/10/2001 |
484,000,000.00 |
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED |
ECE HOUSE K G MARG, NEW DELHI, DELHI - 110001, INDIA |
- |
|
8 |
90169551 |
12/03/2003 * |
728,500,000.00 |
ABN AMRO BNAK N V |
DLF CENTRE, PARLIAMENT STREET, NEW DELHI, DELHI - 110001, INDIA |
- |
|
9 |
90169517 |
30/03/2001 |
2,122,500,000.00 |
PUNJAB NATIONAL BAN K |
7 BHIKAJI CAMA PLACE AFRICA, AVENUE, NEW DELHI, DELHI - 110066, INDIA |
- |
* Date of charge modification
WEBSITE DETAILS:
NEWS AND PRESS RELEASE:
SINGH DUO COUNT ON
DISCLOSURE TO COUNTER DAIICHI CLAIMS
Novermber 17, 2013
Facing arbitration claims here by Daiichi Sankyo, Ranbaxy's former Indian promoters are counting on 'representations and warranties' made in the share purchase agreement signed with the Indian drugmaker's current Japanese owners in 2008
Daiichi had bought nearly 35 percent controlling stake in Ranbaxy from its previous promoters, Malvinder Mohan Singh, his brother Shivinder Mohan Singh and family, for about USD 2.4 billion and the share purchase agreement (SPA) was signed on June 11, 2008.
Over five years after the deal, Daiichi is now seeking damages from Ranbaxy's erstwhile owners for losses arising from a USD 500-million settlement that Ranbaxy had to sign with the US authorities over charges that the company had violated norms to get regulatory approval for its medicines.
When asked about the arbitration proceedings, Daiichi declined to comment and said they do not have any further comments to offer beyond its statement on May 22, 2013.
At that time, Daiichi had said it "believes certain former shareholders of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice and the FDA investigations. Currently, Daiichi Sankyo is pursuing available legal remedies and cannot comment further on the subject at this time."
While the erstwhile promoters also declined to comment as the matter is under arbitration, sources said they are countering claims against them on grounds that Ranbaxy had made proper public disclosures about all ongoing regulatory issues and investigations before signing of the deal in 2008.
Besides, they are also banking on the 'representations and warranties' made in the SPA to safeguard their case in the arbitration process and claim that the SPA insulates them from any such damages.
In such a scenario, sources said, the focus may shift towards possibly poor due-diligence for the deal and weak representations and warranties made in the SPA.
As per sources, the arbitration needs to be completed by the next quarter, as the SPA requires any arbitral award to be rendered within six months from commencement of the arbitration, unless extended by the arbitral tribunal for a period of maximum six months.
While Ranbaxy continues to face regulatory problems in the US over its products and facilities, it had issued a press release on February 15, 2007 -- more than a year before the Daiichi deal -- stating that federal officials had conducted a search at its New Jersey offices in the US. The company had said it was not aware of any wrongdoings and it was fully cooperating with the officials.
In its annual report for the year ended December 31, 2007 also Ranbaxy had mentioned investigations being carried out by the US Federal officials.
RANBAXY RECEIVES
PARAGRAPH IV CERTIFICATION
Sep.19, 2013
Gurgaon, India: Ranbaxy Laboratories Inc. (RLI), a wholly owned subsidiary of Ranbaxy Laboratories Limited, today announced that the company has received a Paragraph IV Certification Notice of filing from Watson Laboratories Inc. of an Abbreviated New Drug Application (“ANDA”) to the U.S. Food and Drug Administration (“FDA”) for a generic version of Absorica™ (isotretinoin capsules), a product that is licensed from Cipher Pharmaceuticals Inc. (TSX: DND) (”Cipher”) of Mississauga, Ontario.
RLI and Cipher intend to vigorously defend Absorica’s intellectual property rights and pursue all available legal and regulatory pathways in defense of the product. Absorica is currently protected by two issued patents listed in the FDA’s Approved Drug Products List (Orange Book), which expire in September 2021. RLI shall take appropriate actions in response to the Paragraph IV notice letter, and FDA approval of the ANDA shall then be governed by the Hatch-Waxman Act.
Absorica was approved by the FDA in May 2012, and granted a three-year market exclusivity period, which expires in May 2015.
About Ranbaxy
Laboratories Inc.
Ranbaxy Laboratories Inc. (RLI) is a U.S. based wholly owned subsidiary of Ranbaxy Laboratories Limited (RLL). RLI is focused on the promotion of branded prescription products in the U.S. RLI has been expanding and growing on the strength of Ranbaxy’s R&D efforts, and continuing exploration of Novel Drug Delivery Systems (NDDS), licensing activities, mergers and acquisitions. RLI is expanding the visibility and presence of the Ranbaxy name by bringing value-added brand products to the market.
About Ranbaxy
Laboratories Limited
Ranbaxy Laboratories Limited, India’s largest pharmaceutical company, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy’s continued focus on R&D has resulted in several approvals, in developed and emerging markets many of which incorporate proprietary Novel Drug Delivery Systems (NDDS) and technologies, developed at its own labs. The company has further strengthened its focus on generics research and is increasingly working on more complex and specialty areas. Ranbaxy serves its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 43 countries and manufacturing operations in 8 countries. Ranbaxy is a member of the Daiichi Sankyo Group. Through strategic in-licensing opportunities and its hybrid business model with Daiichi Sankyo, a leading global pharma innovator headquartered in Tokyo, Japan, Ranbaxy is introducing many innovator products in markets around the world, where it has a strong presence. This is in line with the company’s commitment to increase penetration and improve access to medicines, across the globe.
About Cipher
Pharmaceuticals Inc.
Cipher Pharmaceuticals (TSX: DND) is a growing specialty pharmaceutical company with three commercial products and a fourth in development. Our product candidates are typically improved formulations of successful, currently marketed drugs. We in-license a product, manage the required clinical development and regulatory approval process, and either out-license it to a marketing partner, or, in Canada, we may market the product ourselves. Our core capabilities are in clinical and regulatory affairs, product licensing, supply chain management, and marketing and sales. Since Cipher was founded in 2000, we have achieved final regulatory approval in the U.S. and Canada for all three of our original products and completed six marketing partnerships, generating growing licensing revenue.
RANBAXY Q3 CY 2013
SALES RS.27.5 BN. YTD SEP 2013 SALES RS.77.5 BN
Gurgaon, India, October 29, 2013: The Board of Directors of Ranbaxy Laboratories Limited (RLL, NSE: RANBAXY, BSE: 500359), at its meeting held today, took on record the unaudited results for the Quarter and YTD ended September 30, 2013 (“Q3’13” and “YTD Sep’13” respectively) under Indian GAAP.
Key Financial
Highlights
Financial Performance for the quarter ended September 30, 2013 (Q3’13)
· Consolidated sales were Rs.27.5 Bn [Q3’12: Sales Rs.26.7 Bn] impacted by the new pricing policy and trade concerns in India and the absence of any post exclusivity sales during the quarter
· Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs.2.0 Bn
· Financial Performance for YTD ended September 30, 2013 (YTD Sep’13)
· Consolidated sales were Rs.77.5 Bn [YTD Sep’12: Sales Rs.95.8 Bn]
· Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs.5.5 Bn. Base business margins improved over the corresponding period
The following exceptional items impacted profit:
The depreciation of the INR against the US$, though favourable to Ranbaxy’s export business had an adverse impact on the Company mainly on account of application of the accounting standards that require Marking to Market the entire derivatives and foreign currency denominated loans outstanding. There was a charge of Rs.3.6 Bn during Q3’13 and Rs.7.6 Bn during YTD Sep’13 on account of these forex items mentioned above. The Company made a provision for Mohali stock write-off and other costs amounting to Rs.0.7 Bn.
Net Loss after tax, minority interest and share in loss of associate was Rs.4.5 Bn.
Commenting on the business results for the quarter, Mr. Arun Sawhney, CEO and Managing Director, Ranbaxy, said, “The Company continues to grow in its focus branded markets in Asia, East Europe, CIS and Africa. In India, however, the announcement of the pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions.
We are confident that we will satisfactorily address the increasing standards of quality and manufacturing processes to uphold the high level of trust that our Doctors, Patients, Regulators and other stakeholders expect from us.”
Key Highlights/
Developments
Business
· Base business sales in Q3’13 continued to grow over the corresponding period
· Sales grew in the Emerging Markets of East Europe + CIS and APAC
· Market share gain in Absorica™, isotretenoin NDA has been promising in the USA. As of September 27, 2013, Ranbaxy’s market share was at 17.5%
Regulatory, Research
and Development and Manufacturing
- Received Central Drugs Standard Control Organisation (CDSCO) approval to manufacture and market Synriam™ in India for treatment of malaria caused by Plasmodium vivax parasite. This is an extended usage of Synriam™, India’s first new drug which was launched in April, 2012, for the treatment of uncomplicated Plasmodium falciparum malaria, in adults
- Synriam™ bagged the Innovation Excellence Platinum Award at the ASSOCHAM Innovation Awards 2013 in the Science and Technology category
- Manufacturing site allocated to Ranbaxy Malaysia Sdn Bhd for setting up a Greenfield facility in Malaysia
- Mohali SEZ unit received an import alert and was subsequently included under certain provisions of the Consent Decree by the US FDA. The Company has made further improvements at its Mohali facility since the last inspection in 2012 and remains committed to satisfying the US FDA with regards to their expectations
- The Ohm plant received Establishment Inspection Report (EIR) by the US FDA
- Implementation of the Consent Decree signed in January 2012 with respect to Dewas and Paonta Sahib plants progressed as per plan
- During the Quarter, 3 ANDAs were filed for the USA market
Change in Accounting Year: The Board of Directors of the Company have decided to change the financial year of the Company as “April to March” effective April 1, 2014. In view of this, the current financial year will be for a period of 15 months i.e. January, 2013 to March, 2014.
Global Sales
- Consolidated sales for the Quarter were Rs.27.5 Bn as compared to Rs.26.7 Bn in the corresponding quarter. The details are as follows:
- Branded and OTC category contributed Rs.14.7 Bn accounting for 53% of total sales during the Quarter. Generics including API category recorded Rs.12.8 Bn of sales for the Company during the Quarter
- North America: Sales for the Quarter were Rs.8.8 Bn. Sales were lower in comparison to the corresponding quarter due to large contribution to sales from exclusivity opportunities in the earlier quarter
- In the USA sales for the Quarter were Rs.7.9 Bn
- India: In the domestic market, sales for the Quarter were Rs.5.7 Bn, in-line with the corresponding quarter. Sales for the quarter was impacted by pricing policy and trade related supply disruptions
- OTC business (Consumer Healthcare) contributed Rs.1.1 Bn, growth of 7% over the corresponding quarter
- East Europe and CIS: The region recorded sales of Rs.4.8 Bn, this represents growth of 24% over the corresponding quarter
- West Europe: Sales for the Quarter were Rs.2.0 Bn. Sales declined 31% in the commoditized West Europe market over the corresponding quarter
- Africa and Middle East: Sales for the Quarter were Rs.2.5 Bn, a growth of 4%
- Asia Pacific and LATAM (including Sri Lanka): Sales for the Quarter were Rs.2.3 Bn, a growth of 14%
- API business and others had revenues of Rs.1.5 Bn
Outlook for 2013:
Outlook for 2013:
The Company expects to achieve sales of Rs.130 Bn – Rs.135 Bn for 15 months period ending 31 March 2014. This does not consider any sales accruing from FTFs which shall be accounted for as they materialize.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
60 |
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.