MIRA INFORM REPORT
|
Report Date : |
23.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
MOREPEN LABORATORIES LIMITED |
|
|
|
|
Registered
Office : |
Morepen Village, Nalagarh Road, Near Baddi, District Solan-173205,
Himachal Pradesh, India |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
01.12.1984 |
|
|
|
|
Com. Reg. No.: |
06-006028 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. Millions
|
|
|
|
|
CIN No.: [Company Identification No.] |
L24231HP1984PLC006028 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PTLM11889D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM1083B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
|
|
Line of Business
: |
Manufacture of API, Formulations and OTC Products. |
|
|
|
|
No. of Employees
: |
1379 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 14000000 |
|
|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company in under severe pressure. There appears huge accumulated
losses recorded by the company. However, trade relations are reported as fair.
Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which 4has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
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 DECLINED BY
|
Name : |
Mr. Prakash |
|
Designation : |
Manager |
|
Contact No.: |
91-22-23324443/ 23712025 |
|
Date : |
21.02.2013 |
LOCATIONS
|
Registered Office/ Factory : |
Morepen Village, Nalagarh Road, Near Baddi, District Solan-173205,
Himachal Pradesh, India |
|
Tel. No.: |
91-1795-276201-03 |
|
Fax No.: |
91-1795-276204 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
409, 4th Floor, Antriksh Bhawan, 22 Kasturba Gandhi Marg,
New Delhi-110001, India |
|
Tel. No.: |
91-11-23324443/ 23712025 |
|
Fax No.: |
91-11-23722422 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Located at Masulkhanna, Himachal Pradesh, India |
|
Tel. No.: |
91-1792-233284 |
|
Fax No.: |
91-1792-232606 |
|
|
|
|
Factory 2 : |
Located at Baddi, Himachal Pradesh, India |
|
Tel. No.: |
91-1795-246408/03 |
|
Fax No.: |
91-1795-244591 |
|
|
|
|
USA Office : |
666, Plainsboro Road, Suite 222, Plainsboro, New Jersey-08536 |
|
Tel. No.: |
609 716 6300 |
|
Fax No.: |
609 716 6301 |
|
E-Mail : |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. Sushil Suri |
|
Designation : |
Chairman cum Managing Director |
|
|
|
|
Name : |
Dr. Arun Kumar Sinha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj Joshi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bhupender Raj Wadhwa |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sukhcharan Singh |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Prakash |
|
Designation : |
Manager |
|
|
|
|
Name : |
Mr. Sushil Suri |
|
Designation : |
Chief Executive Officer [API Business] |
|
|
|
|
Name : |
Mr. Varun Suri |
|
Designation : |
Chief Executive Officer [Formulations, Medipath and OTC Business] |
|
|
|
|
Name : |
Mr. Ajay Sharma |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Vijay Gaind |
|
Designation : |
Head [API Manufacturing] |
|
|
|
|
Name : |
Mr. M.K. Sharma |
|
Designation : |
Head [Quality Control] |
|
|
|
|
Name : |
Dr. V.M. Kaul |
|
Designation : |
Head [API Sourcing] |
|
|
|
|
Name : |
Mrs. Amita Sharma |
|
Designation : |
Head [API Production, Planning and Control] |
|
|
|
|
Name : |
Mr. Shantunu Tuli |
|
Designation : |
Sales Head [Home Health Business] |
|
|
|
|
Name : |
Dr. Ramona Chopra |
|
Designation : |
Sales Head [Diagnostics Business]
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2012)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
41241750 |
9.17 |
|
|
114129838 |
25.37 |
|
|
155371588 |
34.54 |
|
|
|
|
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
155371588 |
34.54 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6367940 |
1.42 |
|
|
22484570 |
5.00 |
|
|
58530000 |
13.01 |
|
|
87382510 |
19.43 |
|
|
|
|
|
|
|
|
|
|
21232451 |
4.72 |
|
|
|
|
|
|
155117512 |
34.48 |
|
|
24442584 |
5.43 |
|
|
|
|
|
|
6279558 |
1.40 |
|
|
4588712 |
1.02 |
|
|
1419716 |
0.32 |
|
|
271130 |
0.06 |
|
|
207072105 |
46.03 |
|
|
|
|
|
Total Public
shareholding (B) |
294454615 |
65.46 |
|
|
|
|
|
Total (A)+(B) |
449826203 |
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) |
449826203 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of API, Formulations and OTC Products. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Drugs and Drug Intermediates |
MT |
884.000 |
339.643 |
|
Formulations |
-- |
-- |
4439.59 |
|
Tablets/Capsules |
Nos./Lacs |
37100.00 |
-- |
|
Oral Liquids |
MT |
375.000 |
-- |
|
Powders |
MT |
500.000 |
-- |
GENERAL INFORMATION
|
No. of Employees : |
1379 (Approximately) |
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Bankers : |
Not Available |
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Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M. Kamal Mahajan and Company Chartered Accountants |
|
Address : |
SCO 61, Madhya Marg, Sector 26, Chandigarh, India |
|
|
|
|
Subsidiaries Companies: |
· Dr. Morepen Limited · Morepen Max Inc. · Morepen Inc. · Total Care Limited |
|
|
|
|
Associates Company : |
·
Morepen Biotech Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
450000000 |
Equity Shares |
Rs.2/- each |
Rs.900.000 Millions |
|
12000000 |
Preferences Shares |
Rs.100/- each |
Rs.1200.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2100.000
Millions |
Issued & Subscribed Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
449826203 |
Equity Shares |
Rs.2/- each |
Rs.899.700
Millions |
|
9735201 |
0.01% Optionally Convertible Preference Share |
Rs.100/- each |
Rs.973.500
Millions |
|
1730000 |
0.01% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.173.000
Millions |
|
500000 |
9.75% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2096.200 Millions |
Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
449793203 |
Equity Shares |
Rs.2/- each |
Rs.899.600
Millions |
|
9735201 |
0.01% Optionally Convertible Preference Share |
Rs.100/- each |
Rs.973.500
Millions |
|
1730000 |
0.01% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.173.000
Millions |
|
500000 |
9.75% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.50.000
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.2096.100 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2096.100 |
2096.100 |
2096.107 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1434.900 |
1676.500 |
2427.549 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(321.264) |
|
|
NETWORTH |
3531.000 |
3772.600 |
4202.392 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
988.500 |
1143.700 |
1284.517 |
|
|
2] Unsecured Loans |
150.400 |
143.200 |
112.878 |
|
|
TOTAL BORROWING |
1138.900 |
1286.900 |
1397.395 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4669.900 |
5059.500 |
5599.787 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3735.700 |
4165.800 |
4583.887 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1218.100 |
1219.100 |
1219.092 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
380.100
|
336.100
|
304.657 |
|
|
Sundry Debtors |
331.300
|
277.300
|
205.679 |
|
|
Cash & Bank Balances |
39.600
|
23.400
|
8.239 |
|
|
Other Current Assets |
16.800
|
27.800
|
0.000 |
|
|
Loans & Advances |
105.500
|
109.100
|
126.142 |
|
Total
Current Assets |
873.300
|
773.700 |
644.717 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
635.900
|
573.200
|
716.011 |
|
|
Other Current Liabilities |
456.300
|
471.000
|
115.502 |
|
|
Provisions |
65.000
|
54.900
|
30.634 |
|
Total
Current Liabilities |
1157.200
|
1099.100
|
862.147 |
|
|
Net Current Assets |
(283.900)
|
(325.400)
|
(217.430) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
14.238 |
|
|
|
|
|
|
|
|
TOTAL |
4669.900 |
5059.500 |
5599.787 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
2695.000 |
2163.100 |
1958.336 |
|
|
|
Other Income |
10.100 |
10.400 |
3.280 |
|
|
|
TOTAL (A) |
2705.100 |
2173.500 |
1961.616 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
1324.200 |
1045.800 |
|
|
|
|
Purchases of Stock-in-Trade |
504.100 |
449.400 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(50.700) |
(34.000) |
1487.076 |
|
|
|
Employee benefits expense |
326.500 |
272.800 |
|
|
|
|
Other expenses |
414.500 |
356.700 |
|
|
|
|
Extraordinary Items |
(362.000) |
0.000 |
|
|
|
|
TOTAL (B) |
2398.200 |
2090.700 |
1487.076 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
306.900 |
82.800 |
474.540 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
79.600 |
62.300 |
35.659 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
227.300 |
20.500 |
438.881 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
468.900 |
457.800 |
456.286 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(241.600) |
(437.300) |
(17.405) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(7.500) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(241.600) |
(429.800) |
(17.405) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
(339.601) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
(35.742) |
|
|
|
Dividend |
NA |
NA |
0.000 |
|
|
|
Tax on Dividend |
NA |
NA |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
(321.264) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
815.000 |
502.800 |
409.330 |
|
|
TOTAL EXPORTS |
815.000 |
502.800 |
409.330 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
326.600 |
259.800 |
224.020 |
|
|
|
Stock-in-Stock |
63.700 |
86.100 |
96.842 |
|
|
|
Capital Goods |
2.400 |
1.600 |
3.211 |
|
|
TOTAL IMPORTS |
392.700 |
347.500 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.55) |
(0.96) |
(0.04) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
780.700 |
700.600 |
742.100 |
|
Total Expenditure |
688.000 |
650.300 |
669.800 |
|
PBIDT (Excl OI) |
92.700 |
50.300 |
72.300 |
|
Other Income |
0.100 |
0.100 |
0.000 |
|
Operating Profit |
92.800 |
50.400 |
72.300 |
|
Interest |
22.400 |
34.600 |
34.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
70.400 |
15.800 |
37.600 |
|
Depreciation |
113.500 |
115.300 |
115.500 |
|
Profit Before Tax |
(43.100) |
(99.500) |
(77.900) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(43.100) |
(99.500) |
(77.900) |
|
Extraordinary Items |
0.000 |
33.400 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(43.100) |
(66.100) |
(77.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(8.93)
|
(19.77)
|
(0.89) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.96)
|
(20.22)
|
(0.89) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.24)
|
(8.85)
|
(0.33) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.07)
|
(0.12)
|
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.32
|
0.34
|
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.75
|
0.70
|
0.75 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm / promoter
involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
No |
MANAGEMENT OVERVIEW
The
company has recorded a healthy growth of 25%, in its annual operating revenues
for the current year. Operating revenues for the current year have been
recorded at Rs. 2695.000 Millions against Rs.2163.100 Millions achieved in the
previous financial year. The management team and entire work force of the
company is working hard to improve upon its business and financial performance
across all business segments.
The
management's continuous emphasis on cost control and the economies of scale of
increased business volumes have led to generation of higher operating surplus
in the current financial year as compared to surplus generated in the previous
year.
Increased
Active Pharmaceutical Ingredients (API) business and better export realization
due to weakening rupee has led to improved operating margins for the current
year. Operational surplus during the year has risen to Rs.186.500 Millions from
Rs.82.800 Millions, recorded in the last year, on the strength of growth in
revenues, better price realization and the cost effective controls. During the
current year finance cost has increased by Rs.17.300 Millions on account of
higher interest outgo on restructured debt. However during the year, there has
been increased net cash generation of Rs.106.900 Millions against Rs.20.500
Millions generated in the previous year.
Efforts
continue towards improving performance across all the business segments so that
with profitable growth and increased cash flows, the company is able to timely
service all its financial obligations.
OPERATIONS
In the current
year, sales revenues at Rs.2648.900 Millions are up by 24% over previous year
sales revenues of Rs.2141.000 Millions. The main driver of this impressive
growth in sales revenues is the 'Active Pharmaceutical Ingredients' (API) business,
which recorded growth of 38% in the current year.
The increased
operating surplus of Rs.103.700 Millions is attributable to profitable growth
in API business and continuous cost control measures exercised across all
business segments. However increase in finance cost by Rs.17.300 Millions, on
account of increased interest rate on restructured debt, has restricted the
growth in cash surplus to Rs.86.400 Millions.
Annual growth of
38% in API business was achieved due to 41% growth in export business and 18%
growth in domestic business. Loratadine API and intermediates business has grew
to Rs. 1116.100 Millions as against Rs. 770.800 Millions in last financial
year, thus recording a growth of 45%.
Montelukast,
anti-asthmatic drug, with sales revenues of Rs.342.000 Millions, registered an
increase of 52% over the previous year business of Rs.225.500 Millions.
Atorvastatin sales revenues have gone up to Rs.105.900 Millions, from previous
year's sale revenues of Rs.63.400 Millions. Weak rupee has positively affected
the API business.
Formulation
business, due to on going reorganization in distribution network and product
rationalization, has recorded lower annual revenues of Rs.179.600 Millions,
against Rs.185.100 Millions in the previous financial year.
Home Health and
Diagnostics Equipment (Medipath) business, with current year revenue of
Rs.351.200 Millions, has recorded a growth of 13% over the previous year. Home
Health segment has recorded a growth of 11%, whereas Clinical Diagnostics
segment has shown a growth of 9%.
Pharmaceutical
Contract Manufacturing (PCM) business at Rs. 399.300 Millions has registered a
growth of 9% over the previous financial year.
FINANCES
The
company continues to service its debt obligations and settle its debt in terms
of approved CDR (Corporate Debt Restructuring) scheme and also as in terms of
individual settlement with banks and financial institutions.
REPORT ON BUSINESS PERFORMANCE
ACTIVE PHARMACEUTICAL INGREDIENT (API)
API
business has recorded a handsome growth in its top line for the current
financial year, vis-ŕ-vis last financial year. Current year sales revenues at
Rs.1778.500 Millions are up by 38% over last year's revenue of Rs.1289.300
Millions. Loratadine API and intermediates business at Rs.1116.100 Millions has
recorded a growth of 45% over the last year. Current year 'Loratadine' API
sales at Rs.941.100 Millions, is up by 43% over the last year, whereas its
intermediate business has grown by 24%.
'Loratadine',
anti-allergic drug, exports to the regulated markets, has registered a handsome
growth of 33% over the last financial year. The company's increased business
with Japanese and Chinese market for supply of 'Loratadine' intermediates has
helped the company to grow at 24% in intermediate business of 'Loratadine'.
USFDA
approval for Desloratadine 'API' was received during the year. Out of current
year revenue of Rs.27.600 Millions, US markets generated revenue worth
Rs.10.200 Millions. The company is eyeing increased penetration in highly
regulated US API markets which is expected to lead to profitable growth in the
coming years.
Certificate
of Suitability (COS) for Montelukast, anti-asthma drug, was filed during the
current year to capture the highly profitable regulated European market.
'Montelukast', with annual growth of 52% has recorded sales revenue of
Rs.342.000 Millions, in the current financial year. Morepen was granted
Montelukast process patent in Europe as well as Canada during the year.
COS
and USDMF for Crystalline Atorvastatin Trihydrate was also filed during the
current year to enter the highly profitable regulated markets. Atorvastatin,
cholesterol lowering drug, with current year annual revenue of Rs. 105.900
Millions, has shown a growth of 67% over previous financial year. Morepen was
awarded Pharmexcil Patent Award for the patent of Amorphous Atorvastatin
already granted in US and Canada.
'Fexofenadine'
business worth Rs.72.100 Millions was achieved during the current financial
year against Rs.24.900 Millions in the previous year.
During
the year, new products like Carvedilol, Linezolid, Rosuvastatin and Aliskerin
have added more than Rs. 10.100 Millions during the year.
Besides
this, two patent applications for new polymorphic form of 'Rosuvastatin' and Process
patent on 'Fexofenadine' were filed to enhance and strengthen the Intellectual
properties of the company.
MEDIPATH (Home Health and Diagnostics Equipments)
Sales
revenue for the current year at Rs.345.100 Millions are up by 11% over the
previous year. 'Home Health' products with annual revenues of Rs.269.500
Millions, have registered a growth of 11%. Sale of weighing scales doubled on
receipt of big corporate order, whereas glucometer revenues rose by 26% over
the last year. 'Clinical Diagnostics' business with annual sales of Rs.57.800
Millions has grown by 9% over the last year. 'Blood Banking' business with
annual sales of Rs.17.800 Millions is up by 13%. During the year, Aids and
Hepatitis product business has witnessed a growth of 38%. Weak rupee adversely
affected the current year margins as the company was not able to pass on the
additional cost to consumer due to market competition.
BRANDED
PRESCRIPTION DRUGS
Current
year sales revenues for the domestic formulation business, at Rs.179.000
Millions, are marginally down against previous year's revenues of Rs.185.100
Millions, as the company was engaged in reorganizing its market territories,
product mix and scaling down the injectable business. Gastrointestinal
formulations have shown a growth of 12% whereas Antibiotics business is down by
5%. Share of Gastrointestinal formulations in overall formulations sales has
gone up to 36% from 31% in the last year, whereas share of Antibiotics has
remained static at 48% of last year.
PHARMACEUTICAL CONTRACT
MANUFACTURING (PCM)
Co-
branding business of Rs.243.600 Millions has recorded a growth of 15% over the
last year, whereas third party formulation manufacturing business is up by 5%
over the last year. New customers and new products were added during the year.
Revival
of old customer base having confidence in quality of 'Morepen' products has
resulted in the increased capacity utilization and business growth.
SUBSIDIARIES
Dr. Morepen Limited
Current
year sale revenue of Rs.232.100 Millions has registered a growth of 50% against
last year's revenues of Rs.154.300 Millions. The company's efforts in
re-jigging the distribution channels have borne fruit and paved the way for
deeper penetration of targeted markets for its varied range of its 'OTC'
products.
Fresh
demand was created by extensive field coverage and product promotion on TV
channels. Improved distribution and trade practices helped the company in
lowering its investment in working capital and significantly lower return of
goods.
Higher
current year sales revenues have enabled the company to generate a cash surplus
of Rs.14.700 Millions against cash deficit of Rs.18.400 Millions in the previous
financial year. This is despite the fact, that the company has made additional
marketing spends of Rs.10.400 Millions during the current financial year.
The
company is continuously expanding its marketing and media activities, with a
view to enhance product visibility and product placement. The financial
performance of the company is expected to improve significantly in the coming
years.
Total Care Limited
Current
year sales revenue of Rs.10.600 Millions, have significantly improved over last
year revenues of Rs.5.000 Millions. The company is primarily selling goods to
its holding company. Current year loss at Rs.0.700 Millions is nearly the same
as last year.
Morepen Inc.
This
company is their marketing and distribution interface in USA for various OTC
and other products. The Current year revenue was at Rs.8.600 Millions ($1.69 Lacs) as against Rs.7.400 Millions
($1.64 Lacs) in the previous year, whereas profit after tax is Rs.2.800
Millions.
Morepen Max Inc.
This
company is in a dormant state, without any further investment and activity over
the previous few years. Board of Directors considers it expedient to dispose
off the investment in the company at an appropriate time.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
GLOBAL
PHARMACEUTICAL SCENARIO
The
global pharmaceutical market is expected to grow at rate of 3-5% in 2012 and
may touch $920-950 billions in 2012. The market is expected to grow at a CAGR
of 3-6% over 2011-15, to touch $1.1 Trillion, in the year 2015.
The
high growth emerging markets, the Pharmerging markets are expected to grow at
an impressive CAGR of 13-16%, to reach $315-345 bn by 2015. These markets are
expected to contribute around 28% of total global spending by 2015, as against
12% in 2005. China, the third largest market, is expected to grow 25-27% to
reach $50 billion in 2012. However, the pharmaceutical sales in largest market
of USA, is expected to grow in the range of 1-4% during the period 2011-13 and
expected to reach $310-330 bn, during this period. The growth in global
pharmaceutical markets is being driven by low cost factor, increasing
prevalence of diseases worldwide and rising per capita income of consumers.
The
share of generics segment in global pharma markets is expected to grow at CAGR of
13%, against CAGR of 1% in the patented branded markets and may touch $40
billion by 2015. The above shift in trend is applicable not only for developing
markets but also for developed markets.
The
generics market has expanded on the strength of greater no. of drugs going off
patent by 2015, increased drug penetration in certain geographical territories
and the healthcare cost containment by governments and users.
Amongst
the top 20 countries, India's ranking is expected to move upwards by 4
positions and expected to grow at CAGR of 16% by 2015.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 (Rs. in millions) |
31.03.2011 (Rs. in millions) |
|
|
|
|
|
Claim against the Company not acknowledged as debts |
45.900 |
34.300 |
|
Guarantees |
0.400 |
14.500 |
|
Other money for which company is contingently liable |
12.000 |
-- |
|
Bills discounted with banks |
22.900 |
-- |
|
|
|
|
|
Total |
81.200 |
48.800 |
FIXED ASSETS:
·
Freehold Land
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
·
Office Equipments
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.43 |
|
|
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.