MIRA INFORM REPORT
|
Report Date : |
11.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDOCO REMEDIES LIMITED |
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|
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Registered
Office : |
Indoco
House, 166, C.S.T. Road, Vidyanagari Marg Kalina, Santacruz (East), Mumbai -
400 098, |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
23.08.1947 |
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Com. Reg. No.: |
11-005913 |
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Capital
Investment / Paid-up Capital : |
Rs. 184.301
Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L85190MH1947PLC005913 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI00405A
/ MUMI05235G |
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PAN No.: [Permanent Account No.] |
AAACI0380C |
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|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of
Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical
Ingredients (APIs). |
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|
No. of Employees
: |
Not Available [We tried to
confirm the number of employees but no one is ready to part any information
from the company management] |
RATING & COMMENTS
|
MIRA’s Rating : |
A ( 66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 16000000 |
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|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track
record. The company has reported a significant growth in its sales turnover
but has experienced a drastic fall in its net profitability. Financial and
liquidity position of the company seems to be sound and healthy. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported as regular 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.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loan : A+ |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
11.03.2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Fund Based : A1+ |
|
Rating Explanation |
Very strong degree at safety and lowest
credit risk. |
|
Date |
11.03.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
Indoco
House, 166, C.S.T. Road, Vidyanagari Marg Kalina, Santacruz (East), Mumbai -
400 098, Maharashtra, India |
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Tel. No.: |
91-22-26541851– 55 |
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Fax No.: |
91-22-26520787 |
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E-Mail : |
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Website : |
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Factory 1 : |
A-26, MIDC Industrial Area, Verna-Goa-403722, |
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Factory 2 : |
L-32,33,34 Verna Industrial Estate, Verna - Goa 403722, |
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Factory 3 : |
R-104, Rabale TTC Area, |
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Factory 4 : |
B-20 MIDC, Waluj, |
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Factory 5 : |
Village Katha, P.O. Baddi, Tehsil Nalagarh, District Solan,
Himanchal Pradesh-173205, |
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Factory 6 : |
L-14, Verna Industrial Area, Verna, Goa - 403 722, |
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Factory 7 : |
Located at: Patalganga ( |
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R and D Centre : |
R-92/93, Rabale TTC Area, |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr.
Suresh G. Kare |
|
Designation : |
Chairman and Managing Director |
|
Qualification: |
B. Sc. |
|
Date
of Joining: |
26.12.1963 |
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|
|
|
Name : |
Mr. Sundeep V. Bambolkar |
|
Designation : |
Director - Finance and Operations |
|
Qualification
: |
B. Sc. MBA |
|
Date
of Joining : |
01.07.1997 |
|
Previous
Employment : |
SPA Pharmaceuticals Limited, Managing Director (15 years) |
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|
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|
Name : |
Mr. Divakar M. Gavaskar |
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Designation : |
Director
|
|
Date of Birth/Age : |
05.02.1943 |
|
Qualification : |
B.Com, FCA, FCS |
|
Date of Appointment : |
11.04.2005 |
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|
Name : |
Mr. Rajiv P. Kakodkar |
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Designation : |
Director
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|
Name : |
Mr.
Sharad P. Upasani |
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Designation : |
Director |
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Date of Birth/Age : |
01.10.1938 |
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Qualification : |
M.Com, LL.B., IAS, MBA |
|
Date of Appointment : |
23.02.2008 |
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|
Name : |
Ms.
Aditi Panandikar |
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Designation : |
Managing
Director |
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|
Name : |
Dr.
Anil M. Naik |
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Designation : |
Director
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SENIOR MANAGEMENT |
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Name : |
Mr.
A.S. Rege, |
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Designation : |
President
- Operations |
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|
Name : |
Dr.
Kavita Inamdar, |
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Designation : |
President
– R and D (Formulations) |
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Name : |
Mr.
Vilas V. Nagare, |
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Designation : |
Executive
Vice President - Corporate Affairs |
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|
Name : |
Mr.
B. Rajendra Kumar, |
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Designation : |
Vice
President- Sales and Marketing |
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|
Name : |
Mr. Rakesh
Malik, |
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Designation : |
Vice
President - Sales and Marketing |
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|
Name : |
Mr.
Clarence P D'souza, |
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Designation : |
Vice
President - International Business |
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Name : |
Mr.
Ajay Karajagi, |
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Designation : |
Associate
Vice President-Marketing Services |
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Name : |
Mr.
Amulya Nayak, |
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Designation : |
Associate
Vice President - Sales and Marketing |
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Name : |
Ms.
Aida Dias, Associate |
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Designation : |
Vice
President- Corporate O.A. |
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Name : |
Mr. R
V. Ramesan, |
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Designation : |
Associate
Vice President-Technical Operations (API) |
KEY EXECUTIVES
|
Name : |
Mr. Sunil D. Joshi |
|
Designation : |
President - Finance and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
19952748 |
21.65 |
|
|
14863755 |
16.13 |
|
Any Others (Specify) |
19728137 |
21.41 |
|
Persons Acting in Concert |
19728137 |
21.41 |
|
|
54544640 |
59.19 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
54544640 |
59.19 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
12923356 |
14.02 |
|
|
18850 |
0.02 |
|
|
2239258 |
2.43 |
|
|
15181464 |
16.47 |
|
|
|
|
|
|
2682306 |
2.91 |
|
|
|
|
|
|
9970953 |
10.82 |
|
|
9134905 |
9.91 |
|
|
636087 |
0.69 |
|
|
516291 |
0.56 |
|
|
4500 |
0.00 |
|
|
115296 |
0.13 |
|
|
22424251 |
24.33 |
|
Total Public
shareholding (B) |
37605715 |
40.81 |
|
Total (A)+(B) |
92150355 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
Total
(A)+(B)+(C) |
92150355 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of
Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical
Ingredients (APIs). |
GENERAL INFORMATION
|
No. of Employees : |
Not Available [We tried to
confirm the number of employees but no one is ready to part any information from
the company management] |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Patkar and Pendse Chartered Accountants |
|
Address : |
9, Chartered House CHS, Marine Lines, Mumbai - 400 002,
Maharashtra, India |
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Subsidiaries : |
Indoco Industrial Designers and Engineers Private Limited Indoco Pharmchem Limited. |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
18430071 |
Equity Shares |
Rs.10/- each |
Rs. 184.301
Millions |
|
|
|
|
|
a) Reconciliation of
number of Equity Shares outstanding
|
Particulars |
As on 31.03.2013 |
|
|
|
Numbers |
Rs. In Millions |
|
Shares outstanding at the beginning of the year |
12286714 |
122.867 |
|
Adjustments for Sub-division of Ordinary Shares of Rs.10/- each into 5 shares of Rs. 2/- each |
61433570 |
122.867 |
|
Add: Issue of Bonus Shares |
30716785 |
61.434 |
|
Less: Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
92150355 |
184.301 |
b) Details of Shares
held by each shareholder holding more than 5% shares
|
Details of Shares
held by each shareholder holding more than 5% shares |
As on 31.03.2013 |
|
|
|
No of Shares held |
% holding in that class of shares |
|
Equity Shares with voting rights : |
|
|
|
SPA Holdings Private Limited |
19165000 |
20.80% |
|
Shanteri Investment Private Limited |
14863755 |
16.13% |
|
Reliance Capital Trustee Company Limited |
6807428 |
7.39% |
|
Aditi Panandikar |
5527642 |
6.00% |
|
Madhura Anup Ramani |
5164079 |
5.60% |
|
Aruna Suresh Kare |
4735125 |
5.14% |
*The Board of Directors after the approval of shareholders have subdivided one equity share having face value of Rs. 10/- into five equity shares having face value of Rs.2/- each fully paid up. Bonus shares in ratio of one equity share of Rs. 2/- each fully paid for every two shares held by existing shareholders have also been issued.
c) Terms/rights
attached to equity shares
The company has only one class of equity shares having a par value of Rs. 2/- per share (Refer Note No. 35 for disclosure regarding post balance sheet event). Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31 March 2013, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.10 on the face value of Rs.2/- (Previous year Rs.1.10 on the face value of Rs.2/-) of the company.
In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
184.301 |
122.867 |
122.867 |
|
(b) Reserves & Surplus |
3956.142 |
3676.647 |
3379.126 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4140.443 |
3799.514 |
3501.993 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
273.856 |
462.416 |
540.454 |
|
(b) Deferred tax liabilities (Net) |
348.108 |
293.819 |
257.202 |
|
(c) Other long term liabilities |
92.020 |
91.482 |
88.395 |
|
(d) long-term provisions |
68.196 |
45.630 |
34.951 |
|
Total Non-current
Liabilities (3) |
782.180 |
893.347 |
921.002 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
628.358 |
414.614 |
227.740 |
|
(b) Trade payables |
680.907 |
764.542 |
466.082 |
|
(c) Other current liabilities |
513.196 |
500.286 |
374.631 |
|
(d) Short-term provisions |
148.367 |
143.275 |
140.734 |
|
Total Current
Liabilities (4) |
1970.828 |
1822.717 |
1209.187 |
|
|
|
|
|
|
TOTAL |
6893.451 |
6515.578 |
5632.182 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
2910.029 |
2834.380 |
2063.359 |
|
(ii) Intangible Assets |
304.308 |
181.850 |
62.813 |
|
(iii) Capital work-in-progress |
219.900 |
168.861 |
329.737 |
|
(iv) Intangible assets under development |
157.949 |
157.217 |
197.229 |
|
(b) Non-current Investments |
3.962 |
1.210 |
0.210 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
566.527 |
551.967 |
688.145 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
32.513 |
|
Total Non-Current
Assets |
4162.675 |
3895.485 |
3374.006 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
927.598 |
1018.870 |
804.210 |
|
(c) Trade receivables |
1270.772 |
1137.136 |
917.865 |
|
(d) Cash and cash equivalents |
118.117 |
104.793 |
237.974 |
|
(e) Short-term loans and advances |
413.857 |
354.924 |
292.601 |
|
(f) Other current assets |
0.432 |
4.370 |
5.526 |
|
Total Current
Assets |
2730.776 |
2620.093 |
2258.176 |
|
|
|
|
|
|
TOTAL |
6893.451 |
6515.578 |
5632.182 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
6303.962 |
5687.725 |
4810.667 |
|
|
|
Other Income |
8.951 |
22.631 |
28.795 |
|
|
|
TOTAL (A) |
6312.913 |
5710.356 |
4839.462 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2232.853 |
2227.064 |
1884.792 |
|
|
|
Purchase of Stock in Trade |
355.445 |
336.524 |
319.769 |
|
|
|
Changes in Inventories of Finished Goods, Stock in Trade and Work in Progress |
31.333 |
(113.758) |
(118.951) |
|
|
|
Employee Benefits Expense |
1003.116 |
818.807 |
672.700 |
|
|
|
Research and Development Expenses |
129.024 |
108.032 |
93.415 |
|
|
|
Other Expenses |
1621.463 |
1465.244 |
1282.126 |
|
|
|
TOTAL (B) |
5373.234 |
4841.913 |
4133.851 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
939.679 |
868.443 |
705.611 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
218.821 |
163.302 |
5.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
720.858 |
705.141 |
700.386 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
237.159 |
192.484 |
134.541 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
483.699 |
512.657 |
565.845 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
57.114 |
49.233 |
54.667 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
426.585 |
463.424 |
511.178 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1183.195 |
987.580 |
740.642 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
150.000 |
150.000 |
|
|
|
Dividend |
101.365 |
101.365 |
98.294 |
|
|
|
Tax on Dividend |
17.227 |
16.444 |
15.946 |
|
|
BALANCE CARRIED
TO THE B/S |
1341.188 |
1183.195 |
987.580 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
20.355 |
18.825 |
13.341 |
|
|
|
Foreign Currency |
33.461 |
54.873 |
53.201 |
|
|
|
Other Earnings |
34.064 |
12.359 |
8.127 |
|
|
TOTAL EARNINGS |
87.880 |
86.057 |
74.669 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
264.800 |
332.284 |
348.014 |
|
|
|
Stores & Spares |
1.562 |
53.144 |
8.702 |
|
|
|
Capital Goods |
76.082 |
13.538 |
63.259 |
|
|
TOTAL IMPORTS |
342.444 |
398.966 |
419.975 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.63 |
5.03 |
5.55 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.76 |
8.11 |
10.56 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.67 |
9.01 |
11.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.42 |
8.29 |
11.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.13 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.21 |
0.23 |
0.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39 |
1.43 |
1.87 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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 |
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
||||||||||||||||
|
Long term
borrowing |
|
|
||||||||||||||||
|
Foreign currency loan External Commercial Borrowings (Note No. 5.1) |
59.719 |
0.000 |
||||||||||||||||
|
|
|
|
||||||||||||||||
|
Short term
borrowing |
|
|
||||||||||||||||
|
Cash credit facility (Note No. 9.1) |
14.949 |
0.000 |
||||||||||||||||
|
Foreign Currency export packing credit (Note No. 9.2) |
90.308 |
95.614 |
||||||||||||||||
|
Buyer’s credit (Note No. 9.3) |
0.000 |
75.721 |
||||||||||||||||
|
Working capital demand loan (Note No. 9.4) |
40.000 |
20.000 |
||||||||||||||||
|
Total |
204.976 |
191.335 |
||||||||||||||||
|
Note: Detailed terms of
repayment of term loans from banks and security provided in respect of the
secured long term borrowings: 5.1 – Watson Pharmaceuticals
Inc.
Cash Credit, Foreign
Currency Export Packing Credit and Buyer's Credit facilities are part of
Working Capital facilities availed from various Banks and are secured by
hypothecation by way of first pari passu charge on all its stocks and book
debts. 9.1
9.2
9.3
9.4
|
||||||||||||||||||
Results from
Operations:
The financial year 2012-13 witnessed a slowdown in global economy with signs of improvement, albeit at a slower pace. Euro zone including countries like Portugal, Spain and Cyprus remained mired in recession. Prolonged non-resolution of the debt crisis in the Euro region and deferral in the recovery process of the US economy coupled with slowing down of the emerging countries affected India's growth momentum. In addition to subdued global demand, policy drift and persistent inflationary pressures within the country weakened the economic growth in India.
Management Discussion
and Analysis
Industry Structure
and Development
The global pharmaceutical market crossed the US$ 1 trillion mark in 2013, with a contribution of over 70% from the developed countries. Emerging markets continued to register a double digit growth while the developed markets registered a marginal growth of around 1%. Due to mounting pressure on healthcare costs and changing demographics, markets across the world are moving towards generics.
The Indian pharmaceutical industry commenced the year with a promising growth in the first half followed by a sluggish trend in the second half, resulting in an annual growth rate of 11.9% for the year as against 15.8% in the previous year. Within therapies, the chronic segment grew by 14% and the acute segment grew by 11%. Higher base effect, poor season and low stocking due to the pricing policy resulted in less than the expected growth for the industry.
Financial Performance
The overall financial performance of the Company was reasonably good for the year ended 31st March 2013 with the domestic formulations business growing at 15.4% and the international business growing at 8.4%. The domestic business contributed to 65% and international business contributed to 35% of the total business. The formulations business contribution stood at 94.5% as against that of the API business, which stood at 5.5% of the total business.
Other operating income in the current year reduced by Rs.46.700 millions as compared to the previous year. The decrease is mainly on account of lesser export benefits and reduced exchange gain.
The material consumption to net sales is 41.8% at Rs.2619.600 millions as compared to 43.7% at Rs.2449.800 millions last year. This decrease in the material cost is due to the product mix as also efficiency in manufacturing processes as well as effective procurement policies. The staff cost to net sales is 16.0 % at Rs.1003.100 millions as compared to 14.6% at Rs.818.800 millions last year. The increase is mainly on account of normal annual increase in salary and new recruitments. The recurring R and D expenses to net sales are 2.1% at Rs.129.000 millions as compared to 1.9% at Rs.108.000 millions last year. Other expenses to net sales are at 25.9 % at Rs.1621.500 millions as compared to 26.2% at Rs.1465.300 last year. The finance cost to net sales is at 3.5% at Rs.218.800 millions as compared to 2.9% at Rs.163.300 millions. The impact is higher due to exchange loss of Rs.127.00 millions on currency fluctuations. The operating profit increased by 1.0% to Rs.603.800 millions from Rs.598.000 millions last year. The increase in profit is mainly on account of increase in revenues. Depreciation is higher at Rs.237.200 millions as against Rs.192.500 millions in the previous year.
Profit before tax is at Rs.483.700 millions as compared to Rs.512.700 millions in the last year showing a decrease of 5.7%. Profit after tax was Rs.426.600 millions as against Rs.463.400 millions in the last year, thereby showing a decrease of 7.9%.
Basic and Diluted earnings per share (EPS) for the year is Rs. 4.63 as against Rs. 5.03 in the previous year (both after and before the extra-ordinary items). The outstanding debt as on 31st March, 2013 was Rs.1188.000 millions as compared to Rs.1147.000 millions last year. The cash outflow on account of capital expenditure (CAPEX) during the year was Rs. 433.600 millions as compared to Rs. 659.700 millions in the last year. During the year an amount of Rs.83.300 millions was contributed to the national exchequer by way of payment of income tax and Rs.21.400 millions by way of sales tax. The net worth of the company as at 31st March, 2013 is Rs.4140.500 millions against Rs.3799.600 millions previous year which is on account of retained profits. The debt-equity ratio during the year was 0.07 times as compared to 0.12 times in the previous year. The return on net worth was 10.3% as at 31st March, 2013 against 12.2% as at 31st March, 2012.
Business Overview
Domestic Business
The Company's domestic business continued to record a healthy growth which is well above the industry average. A number of strategic initiatives were taken by the Company, viz., focus on brand building, select therapies majorly in the chronic segment and training and development of the field force. These initiatives continue to yield positive results and would ensure sustainable growth.
The Company markets and distributes finished dosages in 18 therapeutic segments through 8 marketing divisions. The distribution network comprises of 29 sales depots and offices spread across the country.
Brands which have contributed to the volume of the domestic formulations business are FEBREX PLUS, CYCLOPAM, SENSODENT, SENSODENT-K, ATM, SENSOFORM, CLOBEN G, OXIPOD, CITAL and VEPAN. The contribution of these brands accounts for over 50 % of the domestic formulations revenues.
Indoco is ranked 29th as per AWACs as on 31st March'2013 and at 26th as per the CMARC Prescription Ranking (Rxs). During the year, two of their brands moved up the ranks, making the total number of brands to five in the top 500 brand category. The Company enjoys a good position in the domestic market with 26 brands ranking amongst the top 5 positions in their respective segments.
Domestic Marketing
Divisions
INDOCO
Indoco division has a strong presence in major therapies including Gastrointestinal, Anti-Infectives, Respiratory, Anti-Diabetics and Vitamins. CYCLOPAM, KARVOL PLUS, CLOBEN-G, TUSPEL PLUS, OXIPOD, GLYCHEK, HEMSYL, MCBM 69 are the top brands promoted by the division with a strong prescription equity amongst the covered specialties like General Practitioners, Consulting Physicians, Gynecologists, Pediatricians, ENTs.
SPADE
Spade division covers General Practitioners, Consulting Physicians, ENTs, Pediatricians, Dermatologists and Chest Physicians. The division promotes brands like Febrex Plus, ATM, and Methycal besides others. Along with Febrex Plus, ATM has entered the league of Top 500 Brands of Indian Pharma Market during the year.
WARREN
Warren's product basket comprises of toothpastes for hypersensitivity, mouthwashes and a range of antibiotics, analgesics/anti inflammatory, local anesthetics and other oral care products. The division currently enjoys the coveted No.1position in the stomatological segment and has launched Senolin SF (Dental Balm) and Snowdent (Tooth whitening paste) for the first time in India.
SPERA
Spera division covers General Practitioners, Gynecologists and Pediatricians as its target specialties with a focus on new products viz., DBZ, Flamar Plus Gel coupled with legacy brands like Cital etc.
EXCEL
Excel division covers Ophthalmologists, ENTs and General Practitioners promoting products in the ophthalmic, anti-oxidant and anti-infective segments. The major brands marketed by this division are Homide, Renolen, Dexoren-S, Mofloren-BF, Alerchek, Lotechek-LS, Macuchek and Lotechek.
ETERNA
Eterna division's focus is on chronic, nutritional and pain management therapies and covers Orthopedic and Consultant Physicians with brands like Osteochek, Lorchek and Xanfeb-DSR. The division has launched Lorchek-PTC, Lorchek-MR gel and Xanfeb-DSR combinations for the first time in India.
Indoco CND
'Indoco CND' caters to super-specialists like Cardiologists, Diabetologists, Endocrinologists, Nephrologists and Consulting Physicians with an objective to strengthen the Company's presence in chronic segment. The division is progressing well with its top brands like Prichek, Amchek, Cal-aid, Telmichek, G-Neuro and Febubest. A combination of Rosuvastatin and Vitamin D has been launched for the first time in India under the brand name Rosuchek-D and has received a good response at the consultant level.
Future Outlook
With a strong infrastructure, skilled manpower and strategic alliances, the Company is poised to take a higher leap forward. The Company clocked growth rates better than the industry average in the domestic business and is expected to continue the momentum. The focus on legacy brands will continue and new products will be launched across covered therapeutic areas. The strategy to increase the share of chronic segment is being pursued through consistent focus on Indoco-CND and Eterna divisions.
On the international front, the US business will speedily ramp up upon ANDA approvals. The planned launch in US, South Africa and other emerging markets through partners is expected to improve the sales as well as margins. New products are continuously being added to the basket of products with their partners in these markets. In Europe, the Company is gradually reducing its dependence on contract manufacturing and moving on to supplies against own dossiers/marketing authorizations.
The API business is expected to grow at a much faster pace and will contribute to the Company's formulation business in regulated markets through backward integration in select APIs. Part of the API production will be marketed in domestic and international markets with higher penetration in the emerging markets. The new initiative, Ana Cipher is contributing a steady stream of income by offering analytical services and is expected to grow in the segment of highly specialized analytical research needs of generic companies.
Considering the above triggers and initiatives, the Company is confident to achieve the intended growth in all the business segments it operates in.
Contingent
Liabilities not provided for:
(Rs. In Millions)
|
|
As on 31.03.2013 |
|
A) Matters under dispute |
|
|
i) Sales Tax 94.90 lakhs has been paid under protest Previous year ? 100.87 lakhs) |
19.465 |
|
ii) Excise / Service Tax |
36.392 |
|
iii) Income Tax |
25.822 |
|
B) Bank Guarantees |
28.685 |
|
C) Letters of Credit |
85.752 |
|
D) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs.108.11 lakhs (Previous year Rs.26.21 lakhs ) |
16.199 |
|
E) Corporate Guarantee given to Bank on behalf of the Subsidiary |
20.000 |
FIXED ASSETS
v
Land (Lease Hold)
v
Buildings and Premises
v
Plant and Machinery
v
Handling Equipments
v
Pollution Control Equipments
v
Laboratory Equipments
v
R and D Equipments
v
Plant - Utilities
v
Electrical Installations
v
Furniture and Fixtures
v
Office and Data Processing Equipments
v
Air-conditioning Unit
v
Vehicles
v
Trade Mark
v
Technical Knowhow
PRESS RELEASE
INDOCO RECEIVES ANDA APPROVAL FOR GLIMEPIRIDE TABLETS FROM USFDA
April 18, 2013, Mumbai: Indoco Remedies Limited., a fast growing pharma
company with a global presence, has received the USFDA approval for its
Abbreviated New Drug Application (ANDA) for Glimepiride 1mg, 2mg and 4mg
tablets.
Glimepiride is indicated for type-2 diabetes mellitus treatment as an
added therapy with diet and exercise to improve glycemic control in adults. The
market size of this product in the US is US$ 90 million and the API consumption
is approx. 2000 kgs growing at 11.2%.
"This is the first ANDA approval for solid dosages for Indoco and
the Company is fully integrated to manufacture this product. The product will
be launched in the US in the month of May 2013", said Ms. Aditi Kare
Panandikar, Managing Director, Indoco Remedies Limited.
Four of Indoco's products are already available in the US market against
the ANDAs filed and approved through partners. Additionally, Indoco has 37
ANDAs at various stages, out of which, 13 will be in the Company's name and the
rest through partners in the US market.
INDOCO’S REVENUES
GROWS BY 11.8% Y-O-Y
May 28, 2013, Mumbai: Indoco Remedies Limited, a
pharmaceutical Company with global presence, recorded revenues at Rs. 1604.8
million during the fourth quarter of FY 2012-13 as compared to Rs. 1476.6
million over the same quarter last year. The un-audited results for the fourth
quarter of the financial year 2012-13 were announced by the Board of Directors
of Subjectat their meeting held in Mumbai on May 28, 2013.
Commenting on the performance, Mr. Suresh G. Kare, Executive Chairman said,
"I am glad that the domestic formulation sales in the fourth quarter
surpassed the industry average growth rate. The much awaited Drug Pricing
Policy has now been announced and the impact on the Company is marginal. The
business from USA is expected to ramp up with a few ANDAs slated for approval
thereby giving boost to the International Business revenues. Going forward, the
Company will accelerate sales growth with improved margins."
INDOCO’S DOMESTIC BUSINESS OUTPERFORMS THE INDUSTRY GROWTH RATES
January 29, 2013, Mumbai: Subject, a pharmaceutical company
with global presence, recorded revenues at OB9 1502.600 million during the
third quarter of FY 2012-13 as compared to Rs.1417.500 million over the same
quarter last year. Company’s Domestic formulation business registered a growth
of 11% as against Indian Pharma Market (IPM) growth of 9.1% during the quarter.
The un-audited results for the third quarter of the financial year 2012-13 were
announced by the Board of Directors of Subjectat their meeting held in Mumbai
on January 29, 2013.
Commenting on the performance, Mr. Suresh G. Kare, Executive Chairman said,
"The Indian Pharma Market witnessed some slow down during the last quarter
but is expected to rebound back in the coming quarters. Indoco’s domestic
business has performed better than industry and their strategies have paved
well for growth in the coming quarters as well. On the International Business
front, the growth during the quarter was marginal due to slowdown in emerging
market tender business but they envisage to close the year with better
numbers."
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. 60.13 |
|
|
1 |
Rs. 89.52 |
|
Euro |
1 |
Rs. 76.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
66 |
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.