MIRA
INFORM REPORT
|
Report Date : |
07.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
SEQUENT SCIENTIFIC LIMITED |
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|
Registered
Office : |
301, 3rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22,
Wagle Industrial Estate, Thane [West] – 400604, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
28.06.1985 |
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Com. Reg. No.: |
11-036685 |
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Capital
Investment / Paid-up Capital : |
Rs. 213.400
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L99999MH1985PLC036685 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEP10307D |
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PAN No.: [Permanent Account No.] |
AAACV1501G |
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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
: |
Manufacturer of Active Pharmaceutical Ingredients (API). |
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|
No. of Employees
: |
700 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 5100000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears drastic fall in its profitability during 2012. The company has
also recorded some delay in paying its debt. However, trade relations are
reported to be fair. Business is active. Payments are reported to be slow but
correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term Bank facilities : (CARE) C |
|
Rating Explanation |
Having very high risk of default regarding
timely servicing of financial obligation. |
|
Date |
April 2012 |
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 : |
301, 3rd Floor, Dosti Pinnacle, Plot No. E7, Road No. 22,
Wagle Industrial Estate, Thane [West] – 400604, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
Star II, Bilekahalli, Bannerghatta Road, Bangalore – 560076,
Karnataka, India |
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Tel. No.: |
91-80-67840340 |
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Fax No.: |
91-80-67840400 |
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E-Mail : |
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Factory : |
Located at: Ř Plot No. 7, MIDC
Engineering Zone, Kalyan Badlapur Road, Ambernath, Maharashtra, India Ř W-152, 150, 151,
136, 137, 138, 139, 140 and 141, MIDC, Tarapur, Boisar, District Thane,
Maharashtra, India Ř B-32, G-2, G-3,
MIDC, Mahad, District Raigad, Maharashtra, India Ř A-68 and 69,
Additional Ambernath, MIDC Industrial Area, Ambernath (East), District Thane,
Maharashtra, India Ř 120 A and B,
Plot No. 36, Industrial Area, Baikampady, New Mangalore, Karnataka, India Ř Plot No. 26, 26B,
GIDC Industrial Estate, Panoli, District Bharuch, Gujarat, India Ř A-14, MIDC,
Phase I, Dombivali (East), District Thane, Maharashtra, India Ř Plot No. SPL 9
and 15, Kumta Industrial Area, Hegde Road, Kumta, Karnataka, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. K. R. Ravishankar |
|
Designation : |
Chairman and Managing Director |
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|
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|
Name : |
Mr. Kannan Ramanujam |
|
Designation : |
Independent
Director |
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|
Name : |
Dr. Gopakumar G Nair |
|
Designation : |
Independent Director |
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|
Name : |
Dr. Gautam Kumar Das |
|
Designation : |
Executive
Director |
KEY EXECUTIVES
|
Name : |
Mr. Vinayak Hegde |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
11189979 |
46.56 |
|
|
3344532 |
13.92 |
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|
14534511 |
60.47 |
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|
|
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|
Total shareholding of Promoter and Promoter Group (A) |
14534511 |
60.47 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
41000 |
0.17 |
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|
41000 |
0.17 |
|
|
|
|
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|
934362 |
3.89 |
|
|
|
|
|
|
940876 |
3.91 |
|
|
1783650 |
7.42 |
|
|
5800792 |
24.13 |
|
|
1886751 |
7.85 |
|
|
6772 |
0.03 |
|
|
23348 |
0.10 |
|
|
700050 |
2.91 |
|
|
3183871 |
13.25 |
|
|
9459680 |
39.36 |
|
Total Public shareholding (B) |
9500680 |
39.53 |
|
Total (A)+(B) |
24035191 |
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) |
24035191 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Active Pharmaceutical Ingredients (API) |
GENERAL INFORMATION
|
No. of Employees : |
700 (Approximately) |
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Bankers : |
Ř Andhra Bank Ř Bank of India Ř State Bank of
Hyderabad Ř State Bank of
Mysore Ř State Bank of
India Ř Corporation Bank Ř Axis Bank
Limited Ř HDFC Bank
Limited Ř Central Bank of
India |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institution : |
Technology Development Board, New Delhi, India |
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Statutory Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte Centre 100/2, Anchorage II,
Richmond Road, Bangalore – 560025, Karnataka, India |
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|
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Internal Auditors : |
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|
Name : |
Mahajan and Aibara Chartered Accountants |
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Address : |
No 1, Chawla House, 62 Wodehouse Road, Colaba, Mumbai – 400005,
Maharashtra, India |
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|
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Holding Company : |
Fraxis Life
Sciences Limited (merged with the Company w.e.f September 14, 2011) |
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Wholly-owned subsidiaries : |
Ř SeQuent Global
Holdings Limited Ř SeQuent European
Holdings Limited (step-down subsidiary) Ř SeQuent IPCO
GmbH (step-down subsidiary up to 23rd February 2011) Ř SeQuent Research
Limited Ř SeQuent
Antibiotics Private Limited Ř SeQuent
Oncolytics Private Limited |
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Associate : |
SeQuent Penems
Private Limited (till 14 March 2012) |
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Enterprises owned or significantly influenced by
key management personnel and relative of key management personnel : |
Ř Strides Acrolab
Limited Ř ATMA Projects Ř Agnus Holdings Private
Limited Ř Strides Italia
SRL Ř Strides Arcolab
(FA) Limited Ř Latitude
Projects Private Limited Ř Strides Vital
Nigeria Limited Ř Paradime
Infrastructure Development Company Ř Chayadeep
Properties Private Limited |
|
|
|
|
Subsidiaries : |
Ř Sequent Research
Limited Ř Sanved Research
Labs Private Limited Ř Elysian Life
Sciences Private Limited Ř SeQuent
Antibiotics Private Limited Ř Vedic Elements
Private Limited Ř Galenica B.V. Ř Codiffar N.V.
(wholly Owned Subsidiary of Galenica B.V.) Ř Elysian Health
Care Private Limited (wholly owned subsidiary of Elysian Life Sciences
Private Limited) Ř Vedic Fanxipang
Pharma Chemic Company Limited (wholly owned subsidiary of Elysian Life
Sciences Private Limited) Ř Elysian Life
Sciences Mauritius Limited (step-down subsidiary) Ř SeQuent Penems
Private Limited (with effect from 15 March 2012) |
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|
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Firms/companies
in which directors are interested : |
Ř Paradime
Infrastructure Development Company Ř Agnus Holdings
Limited Ř Strides Arcolab
Limited |
CAPITAL STRUCTURE
AFTER 26.09.2012
Authorised Capital : Rs. 320.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 240.352
Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 320.000 Millions |
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|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21,935,191 |
Equity Share |
Rs.10/- each |
Rs. 219.350
Millions |
|
|
Less: Amount receivable
from SeQuent Scientific Employee Stock Option Scheme Trust (Being Face Value
of 700,000 Equity Shares of Rs. 10 each allotted to the trust) |
|
Rs. 5.950
Millions |
|
|
|
|
Rs. 213.400 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 |
213.400 |
212.350 |
212.350 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1053.730 |
1043.180 |
946.290 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
1267.130 |
1255.530 |
1158.640 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
1594.720 |
1407.360 |
1306.120 |
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|
2] Unsecured Loans |
8.800 |
160.400 |
61.030 |
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|
TOTAL BORROWING |
1603.520 |
1567.760 |
1367.150 |
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|
DEFERRED TAX LIABILITIES |
82.410 |
122.910 |
87.460 |
|
|
|
|
|
|
|
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TOTAL |
2953.060 |
2946.200 |
2613.250 |
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
2145.430 |
1892.800 |
1179.490 |
|
|
Capital work-in-progress |
93.130 |
126.540 |
210.290 |
|
|
|
|
|
|
|
|
INVESTMENT |
390.910 |
138.890 |
453.860 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
631.080
|
614.710 |
466.670
|
|
|
Sundry Debtors |
824.800
|
530.140 |
454.740
|
|
|
Cash & Bank Balances |
157.670
|
57.770 |
124.650
|
|
|
Other Current Assets |
137.020
|
130.650 |
0.000
|
|
|
Loans & Advances |
584.130
|
714.850 |
517.380
|
|
Total
Current Assets |
2334.700
|
2048.120 |
1563.440 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1225.740
|
784.110 |
565.850
|
|
|
Other Current Liabilities |
716.010
|
338.810 |
12.190
|
|
|
Provisions |
69.360
|
137.230 |
215.790
|
|
Total
Current Liabilities |
2011.110
|
1260.150 |
793.830
|
|
|
Net Current Assets |
323.590
|
787.970 |
769.610
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2953.060 |
2946.200 |
2613.250 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3324.300 |
2779.800 |
2463.350 |
|
|
|
Other Income |
113.270 |
114.100 |
72.870 |
|
|
|
TOTAL |
3437.570 |
2893.900 |
2536.220 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1807.480 |
1247.530 |
|
|
|
|
Purchases of stock-in-trade |
85.130 |
284.200 |
|
|
|
|
Changes in
inventories of finished goods and work-in-progress and intermediates |
6.120 |
(129.150) |
|
|
|
|
Employee benefits expense |
254.370 |
227.040 |
|
|
|
|
Other expenses |
816.500 |
680.500 |
|
|
|
|
TOTAL |
2969.600 |
2310.120 |
1862.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
467.970 |
583.780 |
673.720 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
282.650 |
200.350 |
187.310 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION
AND AMORTISATION |
185.320 |
383.430 |
486.410 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
210.280 |
171.810 |
125.220 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE EXCEPTIONAL ITEMS AND TAX |
(24.960) |
211.620 |
361.190 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL ITEMS |
0.000 |
(10.530) |
57.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(24.960) |
222.150 |
303.690 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(39.640) |
62.830 |
95.760 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX |
14.680 |
159.320 |
207.930 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
370.560 |
296.420 |
129.240 |
|
|
|
|
|
|
|
|
|
|
Included
on Amalgamation |
0.000 |
(38.850) |
24.530 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
7.970 |
15.590 |
|
|
|
Dividend |
0.000 |
32.900 |
42.470 |
|
|
|
Tax on Dividend |
0.000 |
5.460 |
7.220 |
|
|
BALANCE CARRIED
TO THE B/S |
385.240 |
370.560 |
296.420 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1381.650 |
1147.840 |
1059.860 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
988.290 |
439.110 |
340.830 |
|
|
|
Capital Goods |
6.330 |
17.430 |
0.000 |
|
|
TOTAL IMPORTS |
994.620 |
456.540 |
340.830 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.67 |
7.26 |
9.79 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Net Sales |
718.110 |
629.900 |
827.300 |
965.200 |
|
Total Expenditure |
759.350 |
652.600 |
815.500 |
1073.900 |
|
PBIDT (Excl OI) |
(41.240) |
(22.700) |
11.800 |
(108.800) |
|
Other Income |
8.640 |
102.900 |
6.600 |
2.600 |
|
Operating Profit |
(32.600) |
80.200 |
18.400 |
(106.200) |
|
Interest |
73.630 |
69.100 |
78.300 |
99.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(106.230) |
11.100 |
(59.900) |
(205.600) |
|
Depreciation |
56.160 |
73.800 |
61.300 |
76.200 |
|
Profit Before Tax |
(162.390) |
(62.700) |
(121.200) |
(281.800) |
|
Tax |
(10.590) |
(20.900) |
(8.400) |
(43.200) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(151.800) |
(41.800) |
(112.800) |
(238.600) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(151.800) |
(41.800) |
(112.800) |
(238.600) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
0.43 |
5.51 |
8.20
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.75) |
7.99 |
12.33
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.56) |
5.64 |
11.07
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.02) |
0.18 |
0.26
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.27 |
1.25 |
1.18
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16 |
1.63 |
1.97
|
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 |
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 |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
Loan from other parties |
8.800 |
160.400 |
|
Total |
8.800 |
160.400 |
BUSINESS PERFORMANCE REVIEW
On standalone
basis, the company posted 18.8 percent growth in the total revenues, from Rs.
2,893.900 millions in 2010-11 to Rs. 3,437.570 millions in 2011-12. The company
posted an EBIDTA of Rs. 467.970 millions as against Rs. 583.780 millions in
2010-11. On a standalone level, the Company registered a net profit of Rs.
14.608 millions.
On consolidated
basis, the company posted 11.8 per cent growth in the total revenues, from Rs.
3,185.810 millions in 2010-11 to Rs. 3,562.930 millions in 2011-12. The company
posted an EBIDTA of Rs. 475.580 millions as against Rs. 521.860 millions in
2010-11. On a consolidated level, the Company made a loss of Rs. 14.590
millions.
MERGER OF FRAXIS LIFE
SCIENCES LIMITED WITH THE COMPANY
Fraxis Life
Sciences Limited, a promoter group Company merged with the Company consequent
to the scheme of amalgamation (‘Scheme’) approved by the Hon’ble High Court of
Bombay vide its order dated August 20, 2011.
Pursuant to the
Scheme, the Company on November 21, 2011 allotted 14,865,000 fully paid up New
Equity Shares of ` 10/- to the shareholders of Fraxis Life Sciences Limited.
There would be no change in the paid up capital of the Company as in terms of
the scheme, the said shares were issued against the cancellation of equivalent
number of shares held by Fraxis Life Sciences Limited in the Company.
DETAILS OF AMALGAMATIONS
i. Amalgamation of Fraxis Life Sciences Limited with the Company:
The Scheme of Amalgamation
of Fraxis Life Sciences Limited (Transferor Company) with the Company
(Transferee Company) has been sanctioned by the High Court of Bombay on August
20, 2011 with the appointed date and effective date being September 14, 2011,
the date on which the sanctioned Scheme is filed by the Company with the
Registrar of Companies, Mumbai (the Scheme). In terms of the Scheme:
a) The
amalgamation has been accounted for under the Purchase Method of accounting as
specified in Accounting Standard (AS) – 14 Accounting for Amalgamations,
notified by the Central Government of India under the Companies (Accounting
Standards) Rules, 2006.
b) All the assets
and liabilities of the Transferor Company have been recorded by the Transferee
Company at their respective carrying amounts as appearing in the books of the
Transferor Company as on the appointed date.
c) The investment
in the equity share capital of the Transferee Company as appearing in the books
of accounts of the Transferor Company stands cancelled and accordingly, the
share capital of the Transferee Company shall stand reduced to the extent of
face value of shares held by the Transferor Company in the Transferee Company
as on the appointed date.
e) The excess of
the value of the net assets of the Transferor Company acquired by the
Transferee Company over the face value of the shares issued by the Transferee
Company as consideration to the shareholders of the Transferor Company and
after adjusting for cancellation of equity share capital as mentioned in (c) above
is treated as Capital Reserve amounting to Rs. 6.48 Millions.
f) All costs,
charges, taxes including duties, levies and all other expenses incurred in
carrying out and implementing the Scheme and to put it into operation has been
adjusted against the Capital Reserve. Details of assets and liabilities
acquired on amalgamation and treatment of the difference between the net assets
acquired and the face value of the shares issued by the Transferee Company as
consideration to the shareholders of the Transferor Company and after adjusting
for cancellation of equity share capital:
(Rs.
In Millions)
|
Particulars |
Year ended 31
March 2012 |
|
|
Value of assets and liabilities acquired: |
|
|
|
Cash and bank balances |
6.390 |
|
|
Deferred tax asset |
0.140 |
|
|
|
|
6.530 |
|
Less: Current liabilities |
0.050 |
0.050 |
|
Difference considered as capital reserve |
|
6.480 |
|
Less: Merger expenses |
|
6.480 |
ii. During the year
the Company purchased the research and development unit of its subsidiary
Sequent Antibiotics Private Limited on a slump sale basis for a total
consideration of Rs. 91.100 million. Below is the breakup of assets and
liabilities taken over.
(Rs.
In Millions)
|
Particulars |
|
|
Tangible fixed assets |
90.890 |
|
Current assets |
3.620 |
|
Less: Current liabilities |
3.410 |
|
Total Consideration paid |
91.100 |
iii. Amalgamation
of Vedic Elements Private Limited with the Company:
During the year
ended 31 March 2011, the Scheme of Amalgamation of Vedic elements Private Limited
(Transferor Company) with the Company with an Appointed Date of 1 October, 2009
(the Scheme) was sanctioned by the High Court of Karnataka and came into effect
on 7 September 2010. In terms of the Scheme:
a. The
amalgamation has been accounted for under the purchase method prescribed by
Accounting Standard (AS) 14 – ‘Accounting for Amalgamations’ notified by the
Central Government of India under the Companies (Accounting Standards) Rules,
2006 and accordingly value of assets and liabilities of the transferor Company
have been recorded in the books based on values determined by the Board of
Directors of the transferee Company.
b. The reserves
and balances in profit and loss account of the Transferor Company has been
recorded in the same form and at same values as they appear in the financial
statements of the transferor Company as on the appointed date.
c. The carrying
value of investments in the shares of the Transferor Company held by the
Transferee Company and inter-corporate balances stand cancelled.
d. Upon the Scheme
becoming effective, the assets and liabilities of the Transferee Company have
been revalued based on valuation report or value as determined by the Board of
Directors of the Company and the net surplus arising out of such valuations
(over the carrying value of the respective assets and liabilities prior to the
valuation) have been credited to the Restructuring Reserve account as follows:-
Particulars of
assets and liabilities
(Rs. In Millions)
|
i. Investment in Galenica B.V. |
(72.420) |
|
ii. Investment in Sanved Research Labs Private Limited |
(19.900) |
|
iii. Leasehold land |
128.320 |
|
iv. Buildings |
305.080 |
|
Total |
341.080 |
e. The deficit
arising on amalgamation of Rs. 337.02 Million representing the value of assets
over the value of liabilities of the Transferor Company, after cancellation of
capital of the transferor Company and the reserves recorded as per point ‘d’,
has been set-off against Restructuring reserve account as created in point ‘d’
above post-merger.
The assets and
liabilities as at October 1, 2009 taken over have been accounted at their fair
values as follows:
(Rs.
In Millions)
|
Particulars |
Year ended 31 March 2012 |
|
|
Value of assets and liabilities acquired: |
|
|
|
Fixed assets |
0.210 |
|
|
Investments |
58.590 |
|
|
Debtors |
0.390 |
|
|
Loans and advances |
11.060 |
|
|
Cash and bank balances |
2.490 |
|
|
Deferred tax assets |
7.140 |
|
|
Reserves and surplus (Debit balance) (net) |
11.160 |
91.040 |
|
Less: |
|
|
|
Current liabilities and provisions |
0.570 |
|
|
Secured loans |
40.690 |
|
|
Unsecured loans |
109.080 |
150.340 |
|
Excess of liabilities over assets taken over |
|
59.300 |
|
Investment cancelled |
|
277.720 |
|
Net deficit on amalgamation representing the excess of shares allotted
over the fair value of net assets amalgamated set off against Restructuring
Reserve as per the Scheme |
|
337.020 |
|
The Inter-Company
Balance of Rs. 30.190 Millions, as appearing in the books of Transferor
Company and the Company was eliminated. |
||
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
GLOBAL OVERVIEW
The global pharmaceutical
market registered a growth of 4.5 per cent to US$ 839 bn, largely driven by a
double digit (12 per cent) growth in Emerging markets. Average revenue growth
in Established Markets was 2.8 per cent while that in Emerging Markets was over
four times higher at 12 per cent. The top five pharmaceutical markets in the
world remained the US, Japan, Germany, France and China, with the US
representing 38.1 per cent of global prescription pharmaceutical sales (2010:
38.5 per cent)
WORLD PHARMACEUTICAL MARKET
The world
population is estimated to have passed seven billion in 2011, increasing from
six billion in 1998, and is expected to reach nine billion by 2050. In
addition, the number of people who can access healthcare continues to increase,
particularly among the elderly. Globally, it is estimated that the number of
people over 65 will be almost one billion by 2030, double of what it was in
2005. Emerging markets is the key growth avenue for global pharma companies,
owing to the large population (emerging markets account for 85 per cent of the
global population), under-penetration of medical infrastructure resulting in
greater government spending on healthcare.
In addition, the
prevalence of chronic disease is increasing in middle-income countries and is
also beginning to have an impact in low-income countries. It is estimated that
nearly 33 per cent of the world’s diabetes patients will come from India and
China by 2030, by which date its prevalence in Brazil is expected to have increased
by two thirds.
The global markets
for generic drugs will continue to grow despite cost reduction measures from
governments and healthcare players in many markets. As per the, The World
Generic Market Report, despite pressure on prices in many markets, the generics
sector continues to thrive with increased sales across the globe in 2011.
The generics
market is experiencing two opposing trends driven by the global recession. On
the one hand, the use of generics is increasing due to their cost-effectiveness
and adoption has accelerated in markets where brand-name prescribing was
dominant. On the other hand, the squeeze on government spending has not left
generics untouched with many countries lowering generics prices through cuts in
reimbursement rates or contract tendering with a resultant pressure on margins.
INDIAN OVERVIEW
India’s
pharmaceutical sector can be classified into three broad market segments namely
Contract Research and Manufacturing Services (CRAMS), Formulations, and Active
Pharmaceutical Ingredients (APIs).
The Indian
Pharmaceutical industry is highly fragmented with about 24,000 players (around
330 in the organized sector). The top ten companies make up for more than a
third of the market. The Indian pharma sector has grown at 14+ per cent rate
for the past four years. The Indian domestic pharma sector is expected to
maintain its growth rate of 14-16+ per cent over the next few years. The major
drivers for this growth are: 1) rising incomes, 2) increasing reach, 3)
insurance, 4) government regulation and 5) expanding products.
INDIAN GENERICS
MARKET
India tops the
world in exporting generic medicines worth US$ 11 billion. The Indian generic
drug market is to grow at a CAGR of around 17 per cent between 2010-11 and
2012-13. Over the next few years, it is expected that the patent laws will
provide impetus to the launch of patent-protected products. Such products have
the potential to capture upto a 10 per cent share of the market by 2015,
implying the market size of US$2 bn.
Both the US and
Europe together account for 53 per cent of the global pharmaceutical market,
but the US is the more coveted territory for many reasons. It has a favourable
regulatory environment compared to the stringent price control norms in key
European markets. A depreciating rupee versus the dollar has also helped.
Moreover, generic drugs are now a core part of how the US health system cuts
its costs today. According to the Generic Pharmaceutical Association, during
1999-2008, generic drugs saved the American healthcare system more than US$ 734
bn (Rs. 41801924.900 Millions).
Expenditure on
prescription medicines is one of the fastest-growing components of healthcare
costs, and hence, is a prime target for cost reduction. According to industry
estimates, Indian companies are filling an average of 1,000 abbreviated new
drug application (ANDAs) every year in the US to tap the opportunity. The bulk
drug filings from Indian companies in US have also increased significantly. Of
the total bulk drug filings in US, India accounted for 45 per cent in 2009 and
49 per cent in 2010, which further increased to 51 per cent last year.
APIs
In terms of global
ranking, India is now the third largest API producers of the world just after China
and Italy and by end 2011 was expected to be the second largest producer after
China. However, in Drug Master File (DMF) filings India is currently ahead of
China. In addition, India scores over China in ‘documentation’ and
‘Environment, Health and Safety (EHS) compliance. All these have contributed to
India having around 175 USFDA approved world class manufacturing facilities,
which is considered the largest outside the US. India is likely to be the
fastest growing API supplier during the next five years.
Japan is the
largest market for APIs in the Asia-Pacific region contributing 42.8 per cent
of the region’s total API market revenues. China is the second largest and the
fastest growing API market in Asia-Pacific. China currently holds a share of 20.8
per cent in the region’s total API market revenues. India accounts for 10.3 per
cent, while South Korea holds an 8.1 per cent share of the market. The top
three markets for APIs are the US, Europe and Asia Pacific in which
Asia-Pacific is the fastest growing. The region is the third largest regional
market for APIs by revenue in the world after North America and Europe.
CRAMS
According to
industry estimates, India’s CRAMS sector is likely to touch US$ 7.6 bn by 2012
end from US$ 3.5 bn in 2010.According to industry sources, outsourcing market
is of ~US$80 bn in 2011 and increasing at 15 percent CAGR. Of this, 35 per cent
is R&D outsourcing and remaining is for manufacturing. Considering
competitive labor cost (skilled labor in emerging countries cost is as low as
20 per cent of manufacturing cost in US market), many MNCs are shifting their
manufacturing and R&D work to emerging countries including India.
Approximately 64 per cent of the estimated US$ 67 bn global CRAMS market in
2010 is dominated by contract manufacturing, which includes manufacturing of
intermediates for new chemical entities (NCEs) or manufacturing of APIs.
Contract Research predominantly consists of drug discovery, preclinical and
clinical research and represents US$ 25 bn opportunity globally It is estimated
that currently only ~20 per cent of global Pharma R&D spend is being
outsourced. This represents a huge opportunity for the Indian Companies.
ADVANTAGE INDIA
• High Number of
USFDA and UK MHRA approved plants (250+)
• Well-developed
chemistry skills
• Robust talent
pool
• Low production
and R&D cost
• Quality
Infrastructure and established track record of IPR compliance
• Sufficient
product filing track record: Indian companies have been on the fore-front, both
in terms of filing DMFs and ANDA
CORPORATE
PERFORMANCE REVIEW
BACKGROUND
SeQuent Scientific
Limited (hereinafter referred to as ‘SeQuent’) is a fast growing
pharmaceuticals company having presence in Human and Veterinary segments. In
2007, first generation entrepreneurs, each having more than a decade’s
experience, acquired SeQuent Scientific Limited. The Company has evolved into
an integrated player in the pharmaceuticals segment, with footprints in API
(Human and Veterinary), Formulations (Veterinary) and CRAMS. Besides, the
Company is also a leading producer of specialty chemicals. The Company has
seven units across the country, including two state-of-the-art R&D centres
– in Mangalore and Bengaluru. SeQuent is also the leading producer of
Anthelmentic APIs in the world.
The year 2011-12
2011-12 was a
tough year for SeQuent. Even though we crossed `3 bn mark in terms of our
revenues, rising input costs resulted in significant erosion in their operating
margins. The non-operational capacities (due to Industrial Incidents) coupled
with rising finance charges led to a loss in terms of bottomline. In wake of
these challenges, they continued to critically identify key avenues that
required our attention in order to ensure sustained growth in the coming years.
In other words, they utilised a challenging phase to invest in key strengths
like people, processes, products and markets; the impact of which is expected
to be visible in the coming years.
The Company filed
5 new drug master files, taking the total DMFs filed as on March 31 2012 to 33.
AUDITED FINANCIAL RESULTS FOR
THE YEAR ENDED 31 MARCH 2013
[Rs. in Millions]
|
|
|
Quarter Ended |
Year Ended |
|
|
S.No. |
Particulars |
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
|
AUDITED |
UNAUDITED |
AUDITED |
|
|
Part-1 |
|
|
|
|
1 |
Income from operations |
|
|
|
|
a |
Net Sales / Income from
Operations (net of excise duty) |
959.670 |
826.920 |
3132.790 |
|
b |
Other Operating Income |
5.510 |
0.400 |
7.760 |
|
|
Total income from
operations (net) |
965.180 |
827.320 |
3140.550 |
|
2 |
Expenses |
|
|
|
|
a |
Cost of materials consumed |
595.030 |
505.570 |
1790.590 |
|
b |
Purchase of stock-in-trade |
25.950 |
32.320 |
99.420 |
|
c |
Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(13.390) |
(102.560) |
(129.140) |
|
d |
Employee benefits expenses |
142.470 |
74.840 |
354850 |
|
e |
Depreciation and
amortisation expenses |
76.210 |
61.260 |
267.430 |
|
f |
Other expenses |
323.870 |
305.350 |
1089.910 |
|
|
Total expenses |
1150.140 |
876.780 |
3473.060 |
|
3 |
Profit/(Loss) from
operations before other income, finance costs and exceptional items (1-2) |
(184.960) |
(49.460) |
(332.510) |
|
4 |
Other Income |
2.560 |
6.610 |
24.900 |
|
5 |
Profit/(Loss) from
ordinary activities before finance cost and exceptional Items (3±4) |
(182.400) |
(42.850) |
(307.610) |
|
6 |
Finance cost |
99.400 |
78.320 |
320.450 |
|
7 |
Profit
(Loss) from ordinary activities after
finance cost but before exceptional Items (5±6) |
(281.800) |
(121.170) |
(628.060) |
|
8 |
Exceptional items |
|
|
|
|
9 |
Profit/{Loss) from
ordinary activities before tax (7±8) |
(281.800) |
(121.170) |
(628.060) |
|
10 |
Tax Expense |
(43.230) |
(8.380) |
(83.100) |
|
11 |
Net Profit/(Loss) from
Ordinary activities after tax (9±10) |
(238.570) |
(112.790) |
(544.960) |
|
12 |
Extraordinary items |
|
|
|
|
13 |
Net Profit/Loss) for the
period(11±12) |
(238.570) |
(112.790) |
(544.960) |
|
14 |
Share of profit/(Loss) of associates |
- |
|
|
|
15 |
Minority Interest |
|
|
|
|
16 |
Net Profit/{Loss) after
taxes, minority interest and share of profit/(loss) of associates (13±14±15) |
(238.570) |
(112.790) |
(544.960) |
|
17 |
Paid-up equity share capital
(Face Value per share Rs.10 each) |
240.350 |
236.350 |
240.350 |
|
18 |
Reserve excluding
Revaluation Reserve as per balance sheet of previous accounting year |
|
|
741.300 |
|
19.i |
Earnings Per Share before Extraordinary
Items for the period (Non-Annualised) |
|
|
|
|
|
Basic (Rs.) |
(10.05) |
(4.86) |
(24.01) |
|
|
Diluted (Rs.) |
(10.05) |
(4.86) |
(24.01) |
|
Earnings Per Share after
Extraordinary Items for the period (Non-Annualised) |
|
|
|
|
|
|
Basic (Rs.) |
(10.05) |
(4.86) |
(24.01) |
|
|
Diluted (Rs.) |
(10.05) |
(4.86) |
(24.01) |
|
|
Part-ll |
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
No.
of Shares |
9,500,680 |
9,500,680 |
9,500,680 |
|
|
% of Share Holding |
39.53% |
40.20% |
39.53% |
|
2 |
Promoters and Promoter
Group Shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
1. No of shares |
1,000,000 |
1,000,000 |
1,000,000 |
|
|
2. Percentage of shares
(as a % of the total shareholding of promoter & promoter group) |
6.88% |
7.07% |
6.88% |
|
|
3. Percentage of shares
(as a % of the total share capital of the company) |
4.16% |
4.23% |
4,16% |
|
|
s) Non-encumbered |
|
|
|
|
|
1. No of shares |
13,534,511 |
13.134,511 |
13,534,511 |
|
|
2. Percentage of shares{as
a % of the total shareholding of promoter & promoter group) |
93.12% |
92.93% |
93.12% |
|
|
3. Percentage of shares (as
a % of the total share capital of Die company) |
56.31% |
55.57% |
56.31% |
|
|
|
|
|
|
|
B |
NVESTOR COMPLAINTS |
|
|
Quarter ended 31.03.2013 |
|
|
Pending at the beginning
of the quarter |
|
|
Nil |
|
|
Received during the
quarter |
|
|
Nil |
|
|
Disposed of during the
quarter |
|
|
Nil |
|
|
Remaining unresolved at
the end of the quarter |
|
|
Nil |
[Rs. in Millions]
|
STATEMENT OF ASSETS AND
LIABILITIES |
STANDALONE |
|
Particulars |
31.03.2013 |
|
EQUITY AND LIABILITIES
Shareholders' funds (a) Share capital (b) Reserves and surplus (c) Money received against share warrants |
234.400 741.300 118.790 |
|
Sub-total-Shareholder's fund |
1094.490 |
|
Share application money pending
allotment Minority interest Non-current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (Net) (c) Other Long term liabilities (d) Long-term provisions |
1082.410 -- 0.500 56.830 |
|
Sub-total-N on -current liabilities |
1139.740 |
|
Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions |
1394.650 1459.160 277.420 36.000 |
|
Sub-total-Current
liabilities |
3167.230 |
|
|
|
|
TOTAL - EQUITY AND LIABILITIES |
5401.460 |
|
|
|
|
ASSETS Non-current assets (a) Fixed assets (b) Goodwill on consolidation (c) Non-current investments (d) Deferred tax assets (net) (e) Long-term loans and advances (f) Other non-current assets |
2266.090 -- 545.700 0.690 341.420 57.250 |
|
Sub-total-Non-current
assets |
3211.150 |
|
Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets |
1.770 826.740 701.610 310.700 267.200 82.290 |
|
Sub-total-Current assets |
2190.310 |
|
|
|
|
TOTAL • ASSETS |
5401.460 |
Notes:
1.
The
audited financial results were taken on record by the Board of Directors at its
meeting held on May 30, 2013.
2.
Segment
Results
The Company has identified
Pharmaceuticals and Specialty Chemicals as its business segments, Segments have
been identified taking in to account the nature of products, the differing
risks and returns, the organisational structure and the internal reporting
system
[Rs. in Millions]
|
|
|
Quarter Ended |
Year Ended |
|
|
SI. No |
Particulars |
31.03.2013 AUDITED |
31.12.2012 UNAUDITED |
31.03.2013 AUDITED |
|
1 |
Segment Revenue a) Pharmaceuticals b) Specialty Chemicals |
820.792 144.388 |
671.986 155.334 |
2624.269 516.281 |
|
|
Net Sales /Income from
Operations |
965.180 |
827.320 |
3140.530 |
|
2 |
Segment Results Profit or Loss before Tax
and Interest from Each Segment a) Pharmaceuticals b) Specialty Chemicals Total Less (i) Finance Cost (ii) other unallocable
expenditure net off unallocable income |
(137.721) 30.313 (107.408) 99.400 74.992 |
(63.521) 35.316 (28.205) 78.320 14.645 |
(269.885) 78.527 (191.358) 320.450
116.252 |
|
|
Total Profit / (Loss) Before
Tax |
(281.800) |
(121.170) |
(628.060) |
|
3 |
Capital Employed a) Pharmaceuticals b) Specialty Chemicals c) Unallocated |
2281.711 157.680 (1344.901) |
2697.616 172.360 (1691.927) |
2281.711 157.680 (1344.901) |
|
|
Total |
1094.490 |
1178.049 |
1094.490 |
3.
The
figures of the last quarter are the balancing figures between audited figures
in respect of the full financial year and the published year to date figures
upto the third quarter of the current financial year.
4.
During
the quarter the company has issued 4 lakhs shares on conversion of warrants to
its promoter group.
5.
Figures
for previous periods have been regrouped and rearranged, wherever necessary, to
confirm to the relevant current period classification
CONTINGENT LIABILITIES
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
(a) Claims
against the Company not acknowledged as debts |
|
|
|
Sales tax / Value added tax * |
16.680 |
16.620 |
|
Income tax * |
2.080 |
10.750 |
|
Service tax * |
0.160 |
0.070 |
|
Excise duty* |
0.020 |
0.020 |
|
(b) Guarantees |
|
|
|
Guarantees to
banks and financial institutions against credit facilities extended to
subsidiaries |
1066.260 |
58.050 |
|
(c) Other money
for which the Company is contingently liable |
|
|
|
Bills receivables
discounted with banks |
154.850 |
133.70 |
* Outflow, if any,
arising out of the said claim would depend on the outcome of the decision of
the appellate authority and the Company’s right for future appeal before the
judiciary.
Note:
(a) The Company
has given a corporate guarantee to Triodos Sustainable Trade Fund towards a
credit facility availed by its stepdown subsidiary (Vedic Fanxipang Pharma
Chemic Company Limited) amounting to USD 1.30 Million (Rs.66.50 Million)
(Previous Year Rs. 58.05 Million).
(b) The Company
has given a corporate guarantee to Stichting Triodos Sustainable Trade Fund
towards a credit facility availed by its stepdown subsidiary (Elysian Life
Sciences (Mauritius) Limited) amounting to USD 1.95 Million (Rs.99.76 Million.)
(Previous Year Rs. Nil). However the stepdown subsidiary has used facility to
an extent of USD 0.6 Million (Rs.30.69 Million.) (Previous Year Rs. Nil) as at
the year end.
(c) The Company
has given a corporate guarantee to State Bank of Hyderabad and State Bank of
Travancore towards a credit facility availed by its subsidiary (Sequent Penems
Private Limited) amounting to Rs. 900 Million. (Previous Year Rs. Nil). However
the subsidiary has used facility to an extent of Rs.175 Million (Previous Year
Rs. Nil) as at the year end. The Company is in the process of obtaining the
confirmation from the shareholders for the above guarantees in accordance with
provisions of Section 372A of the Companies Act, 1956.
FIXED ASSETS:
TANGIBLE ASSETS
Ř Free hold land
Ř Lease hold land
Ř Land development
Ř Lease hold
property-development
Ř Building
Ř Furniture and
fixtures
Ř Office equipment
and computers
Ř Plant and
machinery
Ř Vehicles
INTANGIBLE ASSETS
Ř Product process
development
Ř Software
PRESS RELEASE:
SEQUENT RECEIVES
US FDA APPROVAL FOR ITS API DRUG MANUFACTURING FACILITY AT MANGALORE
April 30, 2013; Bangalore: SeQuent
Scientific Limited (SeQuent) today announced that it has received an US FDA
approval for its API Drug Manufacturing facility at Mangalore, Karnataka
(SeQuent Mangalore). This facility has earlier received quality approval from
TGA, Australia and certified by World Health Organisation, Geneva under its
Prequalification’s of Medicines Programme.
The SeQuent
Mangalore facility is ISO 9001 certified for Quality Management systems and ISO
14000 certified for Environment Management systems. This state-of-the-art
facility engaged in the development and manufacture of APIs and API
Intermediaries.
Commenting on this
milestone, Dr. Gautam Kumar Das, Executive Director, said, “The US FDA approval
endorses our commitment to ensure strong regulatory compliance as well as our
dedication to offer quality products through research. Being the first ever for
the company, this approval will further rejuvintate us in establishing SeQuent
among the finest global API Manufacturers”.
SeQuent Mangalore
specializes in niche and difficult to manufacture APIs and has 5 of its APIs
prequalified by WHO Prequalification of Medicines program. It has filed more
than 30 drug master files covering USFDA, Europe, WHO, Australia, Canada with
several more niche APIs in the pipeline for future filings.
About SeQuent Scientific Limited
SeQuent Scientific
Limited, listed on the Bombay Stock Exchange Limited (stock code: 512529) is an
integrated pharmaceutical company with a global footprint headquartered in
Bangalore, India which has presence in different
pharmaceutical
verticals including APIs, Animal Health, Analytical Services, CRAMS and specialty
chemicals. SeQuent is the world's largest producer of Anthelmintics and by far
the strongest player in the Veterinary API business.
SeQuent’s
manufacturing sites located across India are equipped to handle a wide range of
reactions in synthetic chemistry, fermentation and extraction. Presently the
company has 7 manufacturing facilities. All facilities adhere
to strict global
quality standards.
Manufacturing is
ably supported by state-of-the-art R&D centre located in Mangalore, which
is recognized by DSIR, Government of India.
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. 56.87 |
|
|
1 |
Rs. 87.65 |
|
Euro |
1 |
Rs. 74.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.