MIRA
INFORM REPORT
|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
BAFNA PHARMACEUTICALS LIMITED |
|
|
|
|
Registered
Office : |
Bafna Towers, New No.68, Old No.299, Thambu Chetty Street, Madras –
600001, Tamilnadu |
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|
|
|
Country : |
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|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
28.03.1995 |
|
|
|
|
Com. Reg. No.: |
18-030698 |
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|
Capital
Investment / Paid-up Capital : |
Rs.186.563
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24294TN1995PLC030698 |
|
|
|
|
IEC No.: |
0493012796 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHEB05006B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACB3109Q |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
Line of Business
: |
The company is engaged in the manufacture of drugs and medicines. |
|
|
|
|
No. of Employees
: |
572
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2700000 |
|
|
|
|
Status : |
Moderate |
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|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. These rating reflects Bafna’s weakening financial risk profile on
account of increasing working capital requirements, and expected moderation
in its profitability because of intense competitive pressures, as well as
higher employee costs and promotional spend. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some caution.
|
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) |
|
|
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
Uptick in agriculture
and construction spread some cheer as the economy grew a higher-than-expected
4.8 % in the three months through September. Manufacturing rose an annual rate
per cent during the quarter and mining fell by 0.4 %, government data showed
while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of payments
is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of 18.4
% between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal
Acharya and others in a graft case related to distribution of a loan of over
Rs.4000 mn. Gold and jewellery worth Rs.6.7 mn have been recovered from
the residence of Acharya.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: BB+ |
|
Rating Explanation |
Moderate risk of default and high credit
risk. |
|
Date |
23.10.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A4+ |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
23.10.2013 |
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.
INFORMATION PARTED BY
|
Name : |
Mrs. Hemlata |
|
Designation : |
Chief Executive Officer |
|
Contact No.: |
91-44-25267517 |
|
Date : |
23.12.2013 |
LOCATIONS
|
Registered Office : |
Bafna Towers, New No.68, Old No.299, Thambu Chetty Street, Madras -
600001, Tamilnadu, India |
|
Tel. No.: |
91-44-25267517/ 25270992 / 42677555 |
|
Fax No.: |
91-44-25211331/ 25231264/ 42677599 |
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E-Mail : |
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|
Website : |
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Area : |
2500 Sq. ft |
|
Location : |
Rented |
|
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Factory 1: |
No.13, Sundara Vinayakar Koli Street, Madhavaram, Chennai - 600060,
Tamilnadu, India |
|
Tel. No.: |
91-44-25530329/ 25531965 |
|
Fax. No.: |
91-44-25231264 |
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E-Mail : |
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Factory 2: |
No.147, Madhavaram Redhills High Road, Vadakarai Post, Grantlyon
Village, Chennai – 600 052, Tamilnadu, India |
|
Tel. No. : |
91-44-26322900 |
|
Fax No.: |
91-44-25231264 |
|
E-Mail : |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. Mahaveer Chand Bafna |
|
Designation : |
Chairman and Managing Director |
|
Address : |
96, |
|
Date of Birth/Age : |
01.11.1961 |
|
Qualification : |
B. Sc. [Chemistry] |
|
|
|
|
Name : |
Mr. Paras Bafna |
|
Designation : |
Whole Time Director (w. e. f. 15.12.2005) |
|
Address : |
289, Purasawalkam High Road, Flat No. 106, 3rd Floor, Waikki
Complex, Chennai – 600 007, Tamilnadu, India |
|
Date of Birth/Age : |
29.06.1966 |
|
|
|
|
Name : |
Mr. V. Rajamani |
|
Designation : |
Non-Executive
Independent Director |
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|
|
|
Name : |
Mr. A. Sahasranaman |
|
Designation : |
Non-Executive Independent
Director |
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|
|
|
Name : |
Mr. R. Dwarakanathan |
|
Designation : |
Non-Executive
Independent Director |
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|
|
|
Name : |
Mr. Sunil Bafna |
|
Designation : |
Non-Executive
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. R. Jayaraman |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mrs. Hemlata |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Investor
Grievance and Share Committee : |
Mr. Bafna Mahaveer Chand Mr. Paras Bafna Mr. Sunil Bafna |
|
|
|
|
Audit Committee : |
Mr. V. Rajamani Mr. R. Dwarakanathan Mr. Bafna Mahaveer Chand |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2912515 |
15.61 |
|
|
2847624 |
15.26 |
|
|
2847624 |
15.26 |
|
|
5760139 |
30.87 |
|
|
|
|
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
5760139 |
30.87 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4020468 |
21.55 |
|
|
|
|
|
|
|
|
|
|
1858940 |
9.96 |
|
|
5810776 |
31.15 |
|
|
|
|
|
|
1206012 |
6.46 |
|
|
4881 |
0.03 |
|
|
455945 |
2.44 |
|
|
745186 |
3.99 |
|
|
12896196 |
69.13 |
|
|
|
|
|
Total Public
shareholding (B) |
12896196 |
69.13 |
|
|
|
|
|
Total (A)+(B) |
18656335 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
|
|
|
Total
(A)+(B)+(C) |
18656335 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& Friends
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the manufacture of drugs and medicines. |
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Products : |
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Brand Names : |
RARICAP |
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Exports : |
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Products : |
Drugs and Medicines |
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Countries : |
· UK · Sri Lanka · Nigeria |
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Imports : |
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Products : |
Medicines |
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Countries : |
China |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
|
Customers : |
Retailers and End Users |
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No. of Employees : |
572
(Approximately) |
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Bankers : |
·
State Bank of India ·
Export – Import Bank of India ·
IDBI Bank ·
DBS Bank Limited ·
Development Credit Bank
Limited
·
Bank of Ceylon |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Abhay Jain and Company Chartered Accountant |
|
Address : |
Room No.72, 3rd Floor, 4/16, Sunkurama Steel,
Chennai-600001, Tamilnadu, India |
|
|
|
|
Internal
Auditors: |
|
|
Name : |
R. Sathyanarayanan and Company Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
|
|
|
|
Cost Auditors: |
|
|
Name : |
R. Sivasubramanian Cost Auditor, Chennai |
|
Address : |
Chennai, Tamilnadu, India |
|
|
|
|
Associates/Subsidiaries : |
·
Bafna Lifestyles Remedies Limited ·
Bafna Lifeline Private Limited ·
Bhansilal and Company (HUF) |
CAPITAL STRUCTURE
(AS ON 31.03.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18656335 |
Equity Shares |
Rs.10/- each |
Rs.186.563
Millions |
|
|
|
|
|
NOTE:
900,000 Shares out
of the issued, subscribed and paid up share capital were allotted as a preferential
allotment on 13.01.2012 at a premium of Rs.40/- per share.
1,500,000 shares
out the issued, subscribed and paid up share capital were allotted as a
preferential allotment on 17.03.2011 at a premium of Rs.37.30/- Per share
The company has
allotted 2,318,000 share warrants @ Rs.47.30 per share warrant on 17.03.2011,
out of the 2,318,000 warrants allotted on 17.03.2011, 125,000 Shares was
allotted on 14.08.2012 and 150,000 Shares was allotted on 15.09.2012 pursuant
to conversion of warrants.
5,429,014 Shares
out of the issued, subscribed and paid up share capital were allotted as a
bonus shares by capitalization of General Reserves.
100,000 shares out
of the issued, subscribed and paid-up share capital were issued as a fully paid
up shares pursuant to an agreement without payment being received in cash.
The details of Shareholding more than 5% shares
|
Name of Shareholders |
As at 31st March 2013 |
As at 31st March 2012 |
|
|
|
|
|
Bafna Mahaveer Chand |
12.73 |
15.65 |
|
Sasikala Bafna |
6.16 |
6.62 |
|
Chetna Bafna |
6.07 |
6.48 |
|
|
|
|
|
Total |
24.96 |
28.75 |
The reconciliation
of the number of shares outstanding is set out below (Rs. In Millions)
|
Particulars |
As at 31st March 2013 |
As at 31st March 2012 |
|
|
|
|
|
Equity shares at the beginning of the year |
183.813 |
174.813 |
|
Add: Shares issued on preferential allotment (275,000 shares @ Rs.10/ each fully paid up) |
2.750 |
9.000 |
|
|
|
|
|
Equity shares at the end of the
year |
186.563 |
183.813 |
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
186.563 |
183.813 |
|
(b) Reserves & Surplus |
|
456.594 |
396.405 |
|
(c) Money received against share warrants |
|
31.250 |
58.660 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’
Funds (1)+(2) |
|
674.407 |
638.878 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
225.539 |
237.297 |
|
(b) Deferred tax liabilities (Net) |
|
54.992 |
50.590 |
|
(c) Other long
term liabilities |
|
8.800 |
6.125 |
|
(d) long-term
provisions |
|
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
|
289.331 |
294.012 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
684.841 |
569.190 |
|
(b)
Trade payables |
|
720.885 |
531.028 |
|
(c)
Other current liabilities |
|
59.954 |
40.496 |
|
(d) Short-term
provisions |
|
0.000 |
0.000 |
|
Total Current
Liabilities (4) |
|
1465.680 |
1140.714 |
|
|
|
|
|
|
TOTAL |
|
2429.418 |
2073.604 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
482.416 |
493.972 |
|
(ii)
Intangible Assets |
|
181.562 |
204.243 |
|
(iii)
Capital work-in-progress |
|
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
14.300 |
14.300 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
0.000 |
0.000 |
|
(e) Other
Non-current assets |
|
77.916 |
44.109 |
|
Total Non-Current
Assets |
|
756.194 |
756.624 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
210.494 |
225.831 |
|
(c)
Trade receivables |
|
854.708 |
816.231 |
|
(d) Cash
and cash equivalents |
|
207.208 |
23.077 |
|
(e)
Short-term loans and advances |
|
400.814 |
251.841 |
|
(f)
Other current assets |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
1673.224 |
1316.980 |
|
|
|
|
|
|
TOTAL |
|
2429.418 |
2073.604 |
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
174.813 |
|
|
2] Share Warrants Money |
|
|
27.410 |
|
|
3] Reserves & Surplus |
|
|
339.663 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
541.886 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
510.474 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
510.474 |
|
|
DEFERRED TAX LIABILITIES |
|
|
28.177 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1080.537 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
470.412 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
147.476 |
|
|
Sundry Debtors |
|
|
349.864 |
|
|
Cash & Bank Balances |
|
|
117.799 |
|
|
Other Current Assets |
|
|
12.171 |
|
|
Loans & Advances |
|
|
258.489 |
|
Total
Current Assets |
|
|
885.799 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
254.754 |
|
|
Other Current Liabilities |
|
|
20.920 |
|
|
Provisions |
|
|
0.000 |
|
Total
Current Liabilities |
|
|
275.674 |
|
|
Net Current Assets |
|
|
610.125 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
1080.537 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1671.359 |
1239.540 |
1013.032 |
|
|
|
Other Income |
30.305 |
10.542 |
6.210 |
|
|
|
TOTAL (A) |
1701.664 |
1250.082 |
1019.242 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
426.997 |
365.162 |
322.108 |
|
|
|
Purchase of Stock- in-Trade |
849.223 |
633.593 |
537.777 |
|
|
|
Payment to Employees |
105.966 |
56.670 |
30.913 |
|
|
|
Other Expenses |
93.270 |
58.171 |
31.902 |
|
|
|
Exceptional Items |
0.000 |
1.311 |
0.000 |
|
|
|
Changes in Inventories of Finished Goods |
(13.817) |
(58.182) |
(24.343) |
|
|
|
TOTAL (B) |
1461.639 |
1056.725 |
898.357 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
240.025 |
193.357 |
120.885 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
112.327 |
81.324 |
42.963 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
127.698 |
112.033 |
77.922 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
75.904 |
58.380 |
27.685 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
51.794 |
53.653 |
50.237 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.002 |
32.913 |
16.755 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
38.792 |
20.740 |
33.482 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
359.185 |
240.451 |
|
|
TOTAL EARNINGS |
NA |
359.185 |
240.451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.08 |
1.19 |
1.92 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.28
|
1.66 |
6.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.10
|
4.33 |
4.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.14
|
2.61 |
3.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.08 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.35
|
1.26 |
0.94 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14
|
1.15 |
3.21 |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
----- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
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 |
STANDALONE
OPERATING RESULTS
The sales and
operating income increased to Rs.1,701.663 Millions from Rs.1250.082 Millions
in the previous year yielding a growth of 35%. The operating profit for the
year under review increased to Rs.127.698 Millions as against Rs.113.345
Millions in the previous year registering a growth of 12%. The profits after
tax for the year increased to Rs.38.792 Millions as against Rs.20.740 Millions
in the previous year registering a growth of 87%.
The company is in
growth/expansion mode requiring further investment; the company is therefore
evaluating various options to raise additional funds for which shareholders
approval may be sought as and when things are finalized.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC
AND INDUSTRY OVERVIEW:
Economic developments globally for the last few years are very volatile
with debt crisis in Europe, large swings in investment sentiment, state of US
economy, etc. The year was also adversely affected by severe inflationary
pressures, raising interest cost, volatile rupee dollar ratio with a tendency
to get weaker and currency concerns in many trading partner countries.
Pharmaceutical industry is presently facing many challenges and uncertainties.
The industry continues to grow modestly, while adapting to unparalleled
changes. This is putting pressure on the companies to focus on ways to increase
the productivity and streamline the significant overheads.
Pharmaceutical market research firm, IMS Health forecast that the global
pharmaceutical market will grow between 3% and 6% annually up to 2015, based on
sales of US$ 856 billion in 2010. According to the data, overall market volume
should increase by between US$ 210 billion and US$ 240 billion up until 2015,
then reaching a total volume of between US$ 1,065 billion and US$ 1,095
billion.
Pharmaceuticals markets both domestic and international are more prone
to regulatory risks apart from the regular business risks.
Stringent regulatory norms like the Notification of new pricing policy
is going to have a great impact on the whole industry by capping of prices of
348 essential medicines based on the arithmetic average of prices of all drugs
in a particular segment with more than one per cent market share, any company
changing composition of any of these drugs will need to seek a separate price
approval from the regulator or empowered committee and prices will be reviewed
periodically. It is estimated that around 30 per cent of the pharma market
would come under price control as compared to 17 per cent previously. The
Company manages its product portfolio so as to move away, reduce and minimize
the product weightage of drugs under price control.
India’s pharmaceutical industry is at an advantageous position compared
to other emerging countries. The Indian pharmaceutical market is expected to
grow at a compound annual growth rate (CAGR) of 14-17 per cent over 2012-16.
India is now among the top five pharmaceutical emerging markets. The outlook on
the Indian pharmaceutical industry remains favorable, according to a report by
ICRA and Moody's.
PERFORMANCE AND
OPERATIONS REVIEW
Company has
recorded a revenue growth of CAGR of about 40% in the past 4 years. The company
aims at a CAGR of about 30% for the next 3 years.
CORPORATE
INFORMATION
The Company is a
public limited Company domiciled in India and incorporated under the provisions
of the Companies Act, 1956. Its Shares are listed in BSE and NSE in India. The
Company is engaged in the manufacture of drugs and medicines and selling a
reputed brand namely RARICAP. The Company has also got an excellent Research
and Development Facility for life saving drugs. The Company caters to both
domestic and international markets.
CONTINGENT LIABILITIES
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In
Millions) |
||
|
|
|
|
|
|
In respect of Letter of Credit and Bank
Guarantee |
53.726 |
60.080 |
62.213 |
|
Bonds have been executed in favour of
Customs Authorities for the purchase of materials and capital goods without
payment of duty |
87.000 |
77.000 |
57.000 |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10386706 |
26/10/2012 |
50,000,000.00 |
BANK OF CEYLON |
No.20/21, Casa
Major Road, New No.2, Old No.11, Zerat Garden, 2nd Lane, Egmore, Chennai,
Tamil Nadu - 600008, India |
B62144597 |
|
2 |
10367221 |
13/02/2013 * |
20,000,000.00 |
DBS Bank Ltd |
806, Anna Salai,
Chennai, Tamil Nadu - 600002, India |
B69982965 |
|
3 |
10354576 |
28/03/2012 |
150,000,000.00 |
DEVELOPMENT
CREDIT BANK LIMITED |
Nungambakkam
Branch, No.61 Nungambakkam Branch, Chennai, Tamil Nadu - 600034, India |
B39277264 |
|
4 |
10320664 |
14/01/2012 * |
120,000,000.00 |
DBS BANK LIMITED |
806, Anna Salai,
Chennai, Tamil Nadu - 600002, India |
B34117101 |
|
5 |
10274901 |
26/05/2012 * |
168,000,000.00 |
EXPORT- IMPORT
BANK OF INDIA |
Centre One
Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai,
Maharashtra - 400005, India |
B42019141 |
|
6 |
10277620 |
01/06/2012 * |
150,000,000.00 |
IDBI BANK
LIMITED |
No.7, Chevalier
Shivaji Ganesan Salai, South Boag Road, T. Nagar, Chennai, Tamil Nadu -
600017, India |
B43066919 |
|
7 |
80008637 |
22/02/2013 * |
484,200,000.00 |
State Bank of
India |
Leather &
International Branch, "MVJ Towers", No. 177/1, P.H.Road, Kilpauk,,
Chennai, Tamil Nadu - 600010, India |
B73337347 |
* Date of charge modification
FIXED ASSETS
·
Land
·
·
Light Ceiling
·
Aluminum Partition
·
Plant and Machinery
·
Lab Equipments
·
Factory Equipments
·
Pollution Control Devices
·
Power Factor Controller
·
Electrical Equipments and Installation
·
Electrical Fixture and Fittings
·
Generator
·
Air Floating and Circulating Systems
·
Boiler
·
Camera
·
Air Conditioner
·
Office Equipments
·
Dies and Punches
·
Computer
·
Furniture and Fittings
·
Vehicles
·
Bottle Washing and Filling
·
Water Systems
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.62.24 |
|
|
1 |
Rs.101.81 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
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.