MIRA
INFORM REPORT
|
Report Date : |
08.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
RPG LIFE SCIENCES LIMITED [w.e.f. 13.02.2008] |
|
|
|
|
Formerly Known
As : |
RPG PHARMACEUTICALS LIMITED |
|
|
|
|
Registered
Office : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.03.2007 |
|
|
|
|
Com. Reg. No.: |
11-169354 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.132.282
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24232MH2007PLC169354 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Pharmaceutical Products. |
|
|
|
|
No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2960000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. It
has recorded some growth in its sales turnover during 2012 but the profitability
has dipped. However, trade relations are reported as decent. Business is
active. Payment terms are usually correct and as per commitments. The company can be considered normal 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.
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 has 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BBB+ [Term Loan] |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
October 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
A2 [Non-Fund Based] |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
October 2011 |
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
Management non co-operative. [91-22-24981650]
LOCATIONS
|
Registered / Corporate Office : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030,
Maharashtra, India |
|
Tel. No.: |
91-22-24981650/51/66606375/76/77/78 |
|
Fax No.: |
91-22-24970127 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
BIOTECH Plot No. 2702/A, GIDC Industrial Estate, Ankleshwar-393002, District
Bharuch, Gujarat, India |
|
Tel. No.: |
91-2646-652102/03/04/652074 |
|
Fax No.: |
91-2646-250104 |
|
|
|
|
Factory 2 : |
FORMULATION Plot No. 3102/A, GIDC Estate, Ankleshwar-393002, District Bharuch,
Gujarat, India |
|
Tel. No.: |
91-2646-652062 to 652069 |
|
Fax No.: |
91-2646-250572 |
|
|
|
|
Factory 3 : |
API 25, MIDC Land, Thane Belapur Road, Navi
Mumbai-400705, Maharashtra, India |
|
Tel. No.: |
91-22-67955555/5398/5399/6795/5400 |
|
Fax No.: |
91-22-27672646/27631052 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Ajit Singh Chouhan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. R.A. Shah |
|
Designation : |
Director [Alternate to Mr. C. Vinayaraghavan] |
|
|
|
|
Name : |
Mr. C. L. Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ajit Gulabchand |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Lalit S. Kanodia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahesh S. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Manoj K. Maheshwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. K. Mohapatra |
|
Designation : |
Director |
KEY EXECUTIVES
|
Audit Committee: |
|
|
Name : |
Mr. C. L. Jain |
|
|
|
|
Name : |
Mr. Mahesh S. Gupta |
|
|
|
|
Name : |
Mr. P.K. Mohapatra |
|
|
|
|
Name : |
Mr. Ajit Singh Chouhan |
|
|
|
|
Name : |
Mr. Rajindrra
Patkar |
|
Designation : |
Chief Executive – Global Formulations |
|
|
|
|
Name : |
Mr. Vimalendu K.
Singh |
|
Designation : |
Chief Executive – API, Global Generics & Biotech |
|
|
|
|
Name : |
Mr. Sachin Raole |
|
Designation : |
CFO & Sr. Vice President – Corporate Services |
|
|
|
|
Name : |
Dr. Uday R.
Bapat |
|
Designation : |
Chief Scientific Officer |
|
|
|
|
Name : |
Ms. Suchitra
Tiwari |
|
Designation : |
General Manager – QA/QC & Regulatory Affairs |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
9338897 |
56.48 |
|
|
9338897 |
56.48 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9338897 |
56.48 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1175 |
0.01 |
|
|
3217 |
0.02 |
|
|
389979 |
2.36 |
|
|
5650 |
0.03 |
|
|
400021 |
2.42 |
|
|
|
|
|
|
1330090 |
8.04 |
|
|
|
|
|
|
3520020 |
21.29 |
|
|
1842874 |
11.15 |
|
|
103339 |
0.62 |
|
|
79 |
0.00 |
|
|
103260 |
0.62 |
|
|
6796323 |
41.10 |
|
Total Public shareholding (B) |
7196344 |
43.52 |
|
Total (A)+(B) |
16535241 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
16535241 |
0.00 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE SECURITIES)
OF PERSONS BELONGING TO THE CATEGORY “PROMOTER AND PROMOTER GROUP”
|
Sl. |
Name of the
Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
1 |
Summit Securities Limited |
17,74,108 |
10.73 |
|
2 |
Instant Holdings Limited |
27,01,200 |
16.34 |
|
3 |
Chattarpati Investment Limited |
1,26,450 |
0.76 |
|
4 |
Carnival Investments Limited |
6,500 |
0.04 |
|
5 |
STEL Holdings Limited |
5,02,550 |
3.04 |
|
6 |
Swallow Associates Limited |
42,28,089 |
25.57 |
|
|
Total |
93,38,897 |
56.48 |
SHAREHOLDING OF SECURITIES (INCLUDING SHARES, WARRANTS, CONVERTIBLE
SECURITIES) OF PERSONS BELONGING TO THE CATEGORY “PUBLIC” AND HOLDING MORE THAN
1% OF THE TOTAL NUMBER OF SHARES
|
Sl. |
Name of the Shareholder |
Details of
Shares held |
|
|
|
|
No. of Shares
held |
As a % of |
|
1 |
Mukesh Raojibhai Patel |
512008 |
3.10 |
|
2 |
Mentor Capital Limited |
456681 |
2.76 |
|
3 |
Life Insurance Corporation of India |
389979 |
2.36 |
|
|
Total |
1358668 |
8.22 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pharmaceutical Products. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Tablets (Million Nos.) |
1420 |
2750 |
2241 |
|
Liquids (Kilolitres) |
1287 |
6000 |
592 |
|
Injections – Ampoules (Thousands) |
1050 |
-- |
2309 |
|
Capsules (Million Nos.) |
86 |
312 |
17 |
|
Powder Pouches (Thousands) |
10000 |
12000 |
233 |
|
Ointments (Thousands) |
100 |
-- |
20 |
|
Ointments (Kilolitres) |
30 |
-- |
-- |
|
Bulk Drugs and Chemicals (Tonnes) |
231 |
71 |
27 |
|
|
|
|
|
|
Consumer
Products |
|
|
|
|
Tablets (Million Nos.) |
120 |
120 |
@ |
|
Powder Pouches (Thousands) |
8000 |
8000 |
-- |
@0.13 Million Nos.
NOTE:
(i) Production includes
manufacture of pharmaceutical preparations by other parties and of chemicals
for sale but excludes manufacture of pharmaceutical preparations for other
parties. Production of pharmaceutical preparations includes production of
physician samples.
(ii) The installed
capacities are as per the certificate given by the management of the company on
which the auditors have relied.
(iii) The licensed
capacity in respect of certain items has been converted into dosage / units to
make it comparable with installed capacity, production and stocks.
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Union Bank of India ·
State Bank of India ·
Corporation Bank ·
Export-Import Bank of India ·
IDBI Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
|
|
|
Solicitors: |
|
|
Name : |
Crawford Bayley and Company |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18750000 |
Equity Shares |
Rs.8/- each |
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16535241 |
Equity Shares |
Rs.8/- each |
Rs.132.300
Millions |
NOTE:
(a) Reconciliation
of Number of Shares
|
Particular |
As on 31.03.2012 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Number of shares
outstanding as at the beginning of the year |
16535241 |
132.300 |
|
Add: Shares issued on conversion of Share Warrants |
-- |
-- |
|
Add: Shares
allotted under the Employee Stock Option Plan |
-- |
-- |
|
Number of shares outstanding as at the end of the year |
16535241 |
132.300 |
(b) The company has only one class of shares i.e. Equity
Shares having a face value of Rs. 8 each. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting.
(c) List of shareholders
holding more than 5% shares as at the Balance Sheet date
|
Name of the
Shareholder |
As on 31.03.2012 |
|
|
|
No. of Shares |
% of Holding |
|
Swallow
Associates Limited |
4228089 |
25.57 |
|
Instant Holdings Limited |
2701200 |
16.34 |
|
Summit
Securities Limited |
1216159 |
7.35 |
|
RPG Cellular Investments and Holdings Private Limited |
-- |
-- |
|
Petrochem International Limited |
-- |
-- |
(d) Shares reserved for issue under options Refer Note
29 for details of shares to be issued under the Employee Stock Option Plan.
(e) Shares allotted as fully paid-up pursuant to
contract(s) without payment being received in cash (during 5 years immediately
preceding 31st March, 2012) 14,368,850 shares were allotted in the last 5 years
as fully paid-up pursuant to a Scheme of Arrangement without payments being
received in cash.
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 |
132.300 |
132.300 |
120.551 |
|
|
2] Share Application Money |
0.000 |
0.000 |
8.520 |
|
|
3] Reserves & Surplus |
609.100 |
616.000 |
515.243 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
741.400 |
748.300 |
644.314 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
405.000 |
392.200 |
486.300 |
|
|
2] Unsecured Loans |
45.600 |
59.200 |
4.224 |
|
|
TOTAL BORROWING |
450.600 |
451.400 |
490.524 |
|
|
DEFERRED TAX LIABILITIES |
68.200 |
59.600 |
64.037 |
|
|
|
|
|
|
|
|
TOTAL |
1260.200 |
1259.300 |
1198.875 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1086.900 |
1125.000 |
1083.901 |
|
|
Capital work-in-progress |
12.800 |
2.500 |
28.160 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
13.241 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
289.900
|
263.100 |
149.042 |
|
|
Sundry Debtors |
300.900
|
383.500 |
312.387 |
|
|
Cash & Bank Balances |
5.600
|
4.800 |
8.006 |
|
|
Other Current Assets |
6.700
|
5.900 |
0.000 |
|
|
Loans & Advances |
126.200
|
108.800 |
85.748 |
|
Total
Current Assets |
729.300
|
766.100 |
555.183 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
332.300
|
398.500 |
375.011 |
|
|
Other Current Liabilities |
201.000
|
181.400 |
56.553 |
|
|
Provisions |
35.500
|
54.400 |
50.046 |
|
Total
Current Liabilities |
568.800
|
634.300 |
481.610 |
|
|
Net Current Assets |
160.500
|
131.800 |
73.573 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1260.200 |
1259.300 |
1198.875 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1928.200 |
1868.300 |
1598.474 |
|
|
|
Other Income |
6.900 |
7.200 |
32.514 |
|
|
|
TOTAL (A) |
1935.100 |
1875.500 |
1630.988 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
446.500 |
450.000 |
|
|
|
|
Purchases of Stock-in-Trade |
119.500 |
142.900 |
|
|
|
|
Employee Benefits Expense |
499.900 |
402.400 |
1312.260 |
|
|
|
Other Expenses |
694.800 |
643.200 |
|
|
|
|
Changes in
Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(14.000) |
(95.700) |
|
|
|
|
TOTAL (B) |
1746.700 |
1542.800 |
1312.260 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
188.400 |
332.700 |
318.728 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
68.800 |
62.800 |
81.392 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
119.600 |
269.900 |
237.336 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
102.200 |
95.200 |
91.822 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
17.400 |
174.700 |
145.514 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.900 |
47.600 |
37.551 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
8.500 |
127.100 |
107.963 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
240.400 |
153.600 |
78.983 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
9.500 |
8.097 |
|
|
|
Proposed Dividend |
13.200 |
26.500 |
21.699 |
|
|
|
Tax on Proposed Dividend |
2.200 |
4.300 |
3.604 |
|
|
BALANCE CARRIED
TO THE B/S |
233.500 |
240.400 |
153.546 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
506.900 |
556.827 |
444.357 |
|
|
|
Freight and Insurance |
11.200 |
10.611 |
7.297 |
|
|
TOTAL EARNINGS |
518.100 |
567.438 |
451.654 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
92.800 |
108.655 |
83.293 |
|
|
|
Stores & Spares |
1.900 |
2.299 |
1.120 |
|
|
|
Capital Goods |
14.500 |
12.699 |
6.988 |
|
|
TOTAL IMPORTS |
109.200 |
123.653 |
91.401 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) (Basic) |
0.51 |
8.04 |
7.51 |
|
|
|
Earnings /
(Loss) Per Share (Rs.) (Diluted) |
0.51 |
7.69 |
6.54 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
557.900 |
584.300 |
|
Total Expenditure |
|
493.100 |
537.600 |
|
PBIDT (Excl OI) |
|
64.800 |
46.700 |
|
Other Income |
|
4.200 |
(0.200) |
|
Operating Profit |
|
69.0000 |
46.500 |
|
Interest |
|
16.800 |
17.400 |
|
PBDT |
|
52.200 |
29.1000 |
|
Depreciation |
|
23.700 |
24.000 |
|
Profit Before Tax |
|
28.500 |
5.100 |
|
Tax |
|
0.600 |
2.000 |
|
Profit After Tax |
|
27.900 |
3.100 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
27.900 |
3.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.44
|
6.77 |
6.62 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.90
|
9.35 |
9.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.95
|
9.23 |
8.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.23 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.37
|
1.45 |
1.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
1.21 |
1.15 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2012 (Rs. in millions) |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Sundry Creditors |
332.300
|
398.500 |
375.011 |
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
BACKGROUND:
Subject was incorporated
on 29th March, 2007 as RPG Pharmaceuticals Limited. The name of the company was
subsequently changed to RPG Life Sciences Limited on 13th February, 2008.
Pursuant to a Scheme of Arrangement, the company acquired the pharmaceuticals
business of Brabourne Enterprises Limited (formerly RPG Life Sciences Limited)
with retrospective effect from the appointed date of 2nd April, 2007.
OPERATIONS:
The Company earned
a total income of Rs.1935.100 Millions for the year as compared to Rs.1875.500
Millions during the previous year. The profit after tax for the year stood at
Rs.8.500 Millions as compared to Rs.127.100 Millions for the previous year. In
December, 2011, the Company received a communication from the Ministry of
Social and Family Affairs, Health and Consumer Protection, Hamburg, Germany
that it was not being granted EU GMP for the Company’s Active Pharmaceutical
Ingredient (API) facility at Navi Mumbai, Maharashtra, citing certain
deficiencies noticed during inspection. Consequently some of the key customers
cancelled their orders for shipment to be done during the quarter ended March
31, 2012. Though the Company has promptly initiated remedial measures for the
same, the API facility was only partially functional during the last quarter of
the year and this has adversely affected the export business of the Company.
Overall, this has led to significant erosion in the profits of the Company for
the year. The Company continues to progressively resolve the issues raised by
the said authority. The Company continues to hold a valid WHO GMP and TGA,
Australia certification for the API facility at Navi Mumbai plant and is also
working towards achieving recertification of its EU GMP status at the earliest.
ACTIVE
PHARMACEUTICAL INGREDIENTS (API/BULK DRUGS) BUSINESS:
PERFORMANCE:
The API business
achieved sales revenue of Rs.274.800 Millions, which is 2.20% below that of the
previous year. The performance was adversely impacted mainly due to
non-granting of EU GMP certification as cited earlier. Upon completion of
remedial measures, the reaudit of the API facility at Navi Mumbai is expected
to be conducted in the third quarter of the financial year 2012-13. The
traditional markets of Latin America where the Company enjoys a favourable
market share for Quinfamide, Haloperidol and Lamotrigine continued to
out-perform and the Company was able to ward off significant price erosion. The
sales of Nicorandil, a key export API, grew 136% over the previous year.
OUTLOOK:
One of the key
objectives of the Company is to build a strong and sustainable product
portfolio. The primary focus during the current year will be to re-establish
the licensing approvals in the EU and further to progress with the US FDA audit
as well. Therefore, while growth in business will be constrained until the
approvals are in place, the Company plans to continue launching new bulk drug
products and explore new geographies. The focus would be on products in
cardiovascular therapies. Within the segment of Cardiology the new products
would address niche therapeutic areas like Pulmonary Arterial Hypertension and
Hyponatremia. These are two fast growing segments in the international markets
and the Company expects to garner good market share in the same.
GLOBAL GENERICS
BUSINESS:
PERFORMANCE:
The Global
Generics business achieved sales revenue of Rs.132.300 Millions, which was 24%
below that of the previous year. The key factor for the slowdown was the non
granting of EU GMP certification and consequently, reduced orders from key
clients. Also, more generic companies are entering the market with Azathioprine
formulations, increasing the competition in this product. The Company is
actively pursuing various markets to maintain its position in the Azathioprine
formulation business.
OUTLOOK:
The Generics
market worldwide is poised to touch USD 250 bn in the year 2012, and is
expected to post a healthy growth rate in the medium term. During the period
upto the year 2020, patented drugs worth USD 200 bn which are currently
patented will be opened to generic manufacture, giving manufacturers an immense
opportunity for growth in the generics space. Opportunities are also being
evaluated to develop and manufacture private label products for pharmacy
chains.
The Company has a robust
business plan for Azathioprine formulations. Globally the product generates
revenues of about USD 150 mn, with the largest markets being USA, Germany and
UK. The Company has drawn up its entry strategy for all these markets for
Azathioprine and is exploring new markets in Australia, New Zealand, Germany
and other EU Countries which will result in a global presence.
However, during
the current year, there will be limitations on the volume of business due to
suspension of EU GMP certification of API facility. The reaudit of the API
facility is expected only by the end of third quarter of FY 2012-13. Marketing
dossier (ANDA) for Azathioprine has already been fi led in the US during May
2010 and US FDA Audit of the facilities is also expected in 2012-13.
BIOTECH BUSINESS:
PERFORMANCE:
The Biotech
business at Rs.127.600 Millions was lower by 41% as compared to the previous
year mainly due to two reasons. Firstly, intense competition from domestic as
well as Chinese and Korean companies, led to pricing pressures. Secondly, a
slowdown in the market for these products coupled with delay in the opening of
tenders in Latin American markets adversely affected sales. Sales began to
improve towards end of the financial year as a result of new tenders in Latin America,
which were won by the Company. Should the trend continue in FY 2012-13, the
business could return to earlier levels by the third quarter of the year. The
Company made several improvements and upgrades in its Biotech facility, to meet
the requirements of various markets in emerging geographies. In line with its
strategy to take the products to regulated markets, the Company also plans to
file DMFs for its products in the current financial year.
OUTLOOK:
During the year,
the Biotech facility was successfully audited and approved by several
multinational companies, which has further instilled confidence in the facility
and its quality systems. The quality of the product has been substantially
improved by continuous R and D efforts. Both, Doxorubicin and Epirubicin, used
in the treatment of cancer and which are manufactured by the Company, comply
with major pharmcopoeial specifications and compete with the best in class in
their category.
The oncology
market is one of the fastest growing markets, and is poised to surpass USD 50
bn during the current year. The Indian oncology market is also poised for
significant growth. The Company has decided to add synthetic oncology products
to its existing portfolio of fermentation oncology products. As an outcome, four
synthetic oncology APIs are already under scale up. The APIs so manufactured
will be sold to major Oncology players in Emerging market and will also be
consumed captively for its own oncology franchise targeted at the INR 15000.000
Millions Indian oncology market. The Company will continue to market its
products in the MENA region and the Far East where it has already made inroads.
FORMULATIONS
BUSINESS:
PERFORMANCE:
The formulations
business achieved sales revenue of Rs.1357.600 Millions during the year
registering a growth of 16% as compared to the previous year. During the year,
the Company has improved its rank in the Indian Pharmaceutical market by 8
ranks. The flagship divisions like Nephrocare, Lomo group and Chronic Care
achieved accelerated growth. Oncology, the new business segment which was
launched in 2010-11, has strengthened patient-focus image of the Company
amongst Oncologists. The Company is a leading player in Nephrology with Azoran
having leadership position.
New brands such as
Alfalog, Minmin, Frastim, Rinostat, Naprosyn Tab, etc. which were launched in
last few years, have contributed 9.40% to sales in fi nancial year 2011-12. Key
products like Aldactone, Serenace, Naprosyn and Azoran have shown good growth.
Focus on key brands and field force expansion has helped the Company grow its
business. The year witnessed launch of several new products to enhance the
depth and width of the product portfolio. Various initiatives have also been
taken to develop new export markets in Africa, South East Asia and Latin
America.
OUTLOOK:
The business
verticals have been restructured to optimize profitable and sustainable sales.
The year will see consolidation of the formulation business with improved
productivity of sales force. Focus on systems and processes with increased
activities at clinic level with strong monitoring and sales force automation
will be the key drivers for consolidation. During the current year, the Company
would focus on continuous leveraging of legacy brands with additional emphasis
on select brands as Focus Brands fuelling growth. Sharp positioning of products
coupled with innovative promotional strategies will be implemented with
emphasis on micro-management across levels. New products are being planned as
line extension of existing popular brands. The Company would focus on
strengthening of Nephrology portfolio in the African and South East Asian
markets. The business will have major thrust on two therapy areas i.e. - Acute
Care and Chronic Care and Chronic Care growth would come from the Specialty
Divisions namely Nephrology, Oncology and Cardiac-diabetic-neuro/psychiatry,
where customer retention and acquisition programs will help to achieve strong
sustainable foothold. The traditional antidiarrheoal range Lomo group will have
further increased sales through exploiting new packs and new market
opportunities.
EXPORTS:
Exports sales for
the year amounted to Rs.518.100 Millions as against Rs.567.400 Millions in the previous
year. The Company has taken several key initiatives to gain access to new
markets and is confident that these will yield results in the current year in
terms of substantially increasing exports.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Indian
healthcare industry has evolved rapidly from being a product centric industry
to a service driven sector with delivery (hospitals) and medical insurance
segments gaining prominence. India ranks 12th globally in terms of value and
3rd in volumes. The Indian pharmaceutical market is projected to grow at a
Compounded Annual Growth Rate (CAGR) of 12-14% to about US $ 55 billion by
2020.
SEGMENT WISE
PERFORMANCE:
The Company is
exclusively engaged in pharmaceutical business.
Global Formulation
division catering to domestic market and rest of the world market achieved
sales of Rs.1357.600 Millions registering a growth of 16%. The Company has
strengthened its presence in the market through introduction of speciality
divisions to cater to the Oncology and Cardio Vascular segment. The Company also took number of initiatives
such as training to field staff to improve technical and communication skills,
integration of sales force, fi eld force automation, redesign of communication
plans and promotional strategy that are expected to improve the sales in the
current year and bring consistency in performance. Special emphasis has also
been put on export of immunosuppressant products to Asian, African and Latin
American markets where these products would find competitive edge due to the
Company’s technology and cost.
The Global
Generics business achieved net sales of Rs.132.300 Millions registering a
de-growth of 22% during the year. New agreements have been executed with
customers in Germany and other EU Markets for Azathioprine tablets and are also
under discussion in Australia and New Zealand. A marketing application has been
filed by the Company simultaneously in several EU markets. New products
development has been undertaken for the regulated markets. Clopidogrel
Bisulphate Form I tablet and Risperidone tablet for which Company already
manufactures the bulk drug have been identified for the dossier development for
EULER HERMES – MUMBAI and US markets.
The Bulk Drug
business achieved net sales of Rs.274.800 Millions registering a de-growth of
2.20% during the year. In the current year the Company plans to launch new bulk
drugs and also plans to foray into new markets with existing products. With
these initiatives the bulk drugs business is expected to perform better in the
current year. Sales in the Biotech business at Rs.127.600 Millions were lower
by 41% as compared to the previous year mainly due to pressure from Indian,
Chinese and Korean competition. Though major customers continue to procure from
the Company the sales realization per unit has come down significantly.
OUTLOOK:
The outlook for
the domestic pharmaceutical industry is positive. In view of the strengths and
initiatives discussed above, the outlook for the Company’s business is
promising.
CONTINGENT LIABILITIES:
|
Particulars |
31.03.2012 (Rs. in millions) |
31.03.2011 (Rs. in millions) |
|
(a) Claims against the company not acknowledged as debts |
|
|
|
(i) Sales tax matters |
11.800 |
11.800 |
|
(ii) Excise matters |
9.300 |
7.200 |
|
(b) Guarantee
given to Gujarat Industrial Development Corporation |
1.500 |
1.500 |
|
(c) Bank guarantees given to third parties |
4.700 |
4.600 |
|
Total
|
27.300 |
25.100 |
|
NOTE: (i) Future cash
outflows in respect of (a) (i) and (a)(ii) above are determinable only on
receipt of judgments/decisions pending with various authorities/forums and/or
final outcome of the matters. (ii) The
management is of opinion that there will be no impact on future cash outflow
of the company in respect of (b) and (c) above. |
||
FIXED ASSETS:
·
Goodwill
·
Technical Knowhow
·
Computer Software
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture, Fittings and Office Equipments
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.54.97 |
|
|
1 |
Rs.88.10 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
46 |
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.