MIRA INFORM REPORT
|
Report Date : |
23.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
DISHMAN PHARMACEUTICALS AND CHEMICALS LIMITED |
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Registered
Office : |
Bhadra-Raj Chambers, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
29.06.1983 |
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Com. Reg. No.: |
04-006329 |
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Capital
Investment / Paid-up Capital : |
Rs.161.394 Millions |
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CIN No.: [Company Identification
No.] |
L24230GJ1983PLC006329 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMD00851E |
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PAN No.: [Permanent Account No.] |
AAACD4161D AAACD4164D |
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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 and Exporter of Bulk Drugs, Organic Chemicals and Fine
Chemicals. |
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No. of Employees
: |
974 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
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 26000000 |
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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 good track
record. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 |
CARE |
|
Rating |
Long Term Bank Facility = BBB |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk |
|
Date |
March 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 : |
Bhadra-Raj Chambers, |
|
Tel. No.: |
91-79-26445807 / 26443053 / 26560089/ 26420198 |
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Fax No.: |
91-79-26420198 |
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E-Mail : |
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Website : |
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Corporate Office : |
301-306, Samudra Annexe, Off |
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Factory 1 : |
Plot No. 1216/20, Phase IV, GIDC Estate, Naroda, Ahmedabad – 382 330, |
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Tel. No.: |
91-79-2811633 / 2814234 |
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Factory 2 : |
Survey No. 47, Paiki Sub Lot No. 1, Village Lodariya, Taluka Sanand,
District Ahmedabad, |
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Factory 3: |
Swastika Cross Road, Navrangpura, Ahmedabad 380 009, |
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Tel. No.: |
91-79-26420198 |
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Branch Office 1 : |
401, |
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Tel. No.: |
91-22-2859 2120/ 29204537 |
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Fax No.: |
91-22-2859 2226/ 66964055 |
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E-Mail : |
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Branch Office: |
Also Located at
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Overseas Office : |
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Sales Offices: |
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Janmejay R. Vyas |
|
Designation : |
Chairman and Managing Director |
|
Address : |
B/1-A, Rajhans Society, Ellisbridge, Ahmedabad – 380 006, Gujarat, India |
|
Date of Birth : |
29.04.1951 |
|
Qualification : |
B. Sc. (Tech.) |
|
Experience : |
38 Years |
|
|
|
|
Name : |
Mrs. Deohooti J. Vyas |
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Designation : |
Whole-time Director |
|
Address : |
B/1-A, Rajhans Society, Ellisbridge, Ahmedabad – 380 006, Gujarat, India |
|
Date of Birth : |
60 Years |
|
Experience : |
28 Years |
|
Date of Appointment : |
01.12.1997 |
|
Qualification : |
A Bachelor Degree in Science |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Yagneshkumar B. Desai |
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Designation : |
Director |
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Date of Appointment : |
26.11.2003 |
|
Qualification : |
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Other Directorship : |
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|
|
|
|
Name : |
Mr. Sanjay S. Majmudar |
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Designation : |
Director |
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Date of Birth : |
49 Years |
|
Date of Appointment : |
14.02.2004 |
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Qualification : |
CA, LLB, Company Secretary |
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Other Directorship : |
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|
|
|
|
Name : |
Mr. Ashok C. Gandhi |
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Designation : |
Director |
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Date of Appointment: |
30th July, 2004 |
|
Qualification : |
B. Com, LLB |
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Other Directorship : |
|
|
|
|
|
Name : |
Mr. Arpit J Vyas |
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Designation : |
Whole Time Director |
|
Date of Birth : |
26 years |
|
Qualification : |
Chemical Engineer from University of Aston |
|
Experience : |
5 years |
|
Date of Appointment: |
01/06/2009 |
KEY EXECUTIVES
|
Name : |
Mr. Deepak S. Pandya |
|
Designation : |
Company Secretary and Compliance Officer |
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|
|
|
Name : |
Mr. V.V.S. Murthy |
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Designation : |
Chief Financial Officer |
|
Date of Birth : |
56 years |
|
Qualification : |
B.Com., A.C.A. |
|
Experience : |
31 Years |
|
Date of Appointment: |
01/03/2007 |
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|
|
|
Name : |
Mr. Rajiv A. Desai |
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Designation : |
President (Quality) |
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Date of Birth : |
50 Years |
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Qualification : |
B.Sc., M.Sc. (Org. Chemistry) and Ph.D (Science- Chemistry) |
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Experience : |
23 years |
|
Date of Appointment: |
18.10.2010 |
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|
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|
Name : |
Mr. Arvind A. Joshi |
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Designation : |
President (H.R. and Admn.) |
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Date of Birth : |
56 years |
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Qualification : |
B.Sc., L.L.B., M.S.W. |
|
Experience : |
36 Years |
|
Date of Appointment: |
18.10.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
48920319 |
60.62 |
|
|
600000 |
0.74 |
|
|
49520319 |
61.37 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
49520319 |
61.37 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3012055 |
3.73 |
|
|
1950858 |
2.42 |
|
|
7339623 |
9.10 |
|
|
12302536 |
15.25 |
|
|
|
|
|
|
7453447 |
9.24 |
|
|
|
|
|
|
9468032 |
11.73 |
|
|
998202 |
1.24 |
|
|
954600 |
1.18 |
|
|
661803 |
0.82 |
|
|
292597 |
0.36 |
|
|
200 |
0.00 |
|
|
18874281 |
23.39 |
|
Total Public shareholding (B) |
31176817 |
38.63 |
|
Total (A)+(B) |
80697136 |
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) |
80697136 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of Bulk Drugs, Organic Chemicals and Fine
Chemicals. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Manufactured** |
|
Bulk Drugs and Intermediates |
MT |
3185.18 |
** Manufactured quantity, as mentioned above does
not include recovered solvent.
GENERAL INFORMATION
|
No. of Employees : |
974 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
‘Herigate’, 3rd Floor, Near Gujarat Vidhyapith, Off. Ashram
Road, Ahmedabad-380014, |
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Subsidiaries
Company : |
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Fellow Subsidiaries
: |
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Joint venture : |
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Associates : |
Bhadra-Raj Holdings Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.2/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
80697136 |
Equity Shares |
Rs.2/- each |
Rs.161.394
Millions |
|
|
|
|
|
Notes:
(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
|
Particulars |
Opening Balance |
Fresh issue |
Closing Balance |
|
Equity shares with voting rights |
|
|
|
|
Year ended 31 March, 2012 |
|
|
|
|
Number of shares |
80,697,136 |
— |
80,697,136 |
|
Amount ( in Millions) |
161.394 |
— |
161.394 |
(ii) Details of shares held by each shareholder holding more than 5% shares:
|
Name of shareholder |
As at 31 March, 2012 |
|
|
|
Number of shares
held |
% holding in that
class of shares |
|
Equity shares with voting rights |
|
|
|
Shri Janmejay R Vyas |
25,414,871 |
31.49 |
|
Shri Arpit J. Vyas |
12,359,600 |
15.32 |
|
Smt. Deohooti J Vyas |
10,964,500 |
13.59 |
|
HDFC Standard Life Insurance Company Limited |
5,626,488 |
6.97 |
(iii) The Company has issued only one class of shares referred to as equity shares having a par value of 2.00. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regard to the Company's residual assets.
(iv) The amount of per share dividend recognised as distributions to equity shareholders during the year ended March 31, 2012 is Rs.0.120 Million (previous year: Rs.0.120 Million), subject to approval by shareholders in the ensuing annual general meeting
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 |
161.394 |
161.394 |
161.394 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6588.041 |
6252.401 |
5968.187 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6749.435 |
6413.795 |
6129.581 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3939.576 |
4065.700 |
3789.159 |
|
|
2] Unsecured Loans |
357.334 |
819.841 |
551.470 |
|
|
TOTAL BORROWING |
4296.910 |
4885.541 |
4340.629 |
|
|
DEFERRED TAX LIABILITIES |
314.805 |
297.665 |
271.377 |
|
|
|
|
|
|
|
|
TOTAL |
11361.150 |
11597.001 |
10741.587 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4703.231 |
4867.728 |
3538.401 |
|
|
Capital work-in-progress |
2573.402 |
1989.558 |
2676.401 |
|
|
|
|
|
|
|
|
INVESTMENT |
1870.569 |
1871.405 |
1819.921 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
FOREIGN CURRENCY MONETARY ITEM TRANSLATION DIFFERENCE ACCOUNT
|
0.000 |
0.000 |
4.860 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1191.265
|
1242.450 |
997.528
|
|
|
Sundry Debtors |
964.594
|
1269.676 |
702.434
|
|
|
Cash & Bank Balances |
64.517
|
43.135 |
42.820
|
|
|
Other Current Assets |
25.272
|
24.298 |
0.000
|
|
|
Loans & Advances |
3037.055
|
2921.688 |
2025.200
|
|
Total
Current Assets |
5282.703
|
5501.247 |
3767.982 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
849.261
|
1190.063 |
750.638
|
|
|
Other Current Liabilities |
2041.695
|
1272.819 |
163.974
|
|
|
Provisions |
177.799
|
170.055 |
151.366
|
|
Total
Current Liabilities |
3068.755
|
2632.937 |
1065.978 |
|
|
Net Current Assets |
2213.948
|
2868.310 |
2702.004
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11361.150 |
11597.001 |
10741.587 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Revenue from operations |
4634.006 |
4208.179 |
3526.088 |
|
|
|
Other Income |
117.717 |
145.864 |
31.528 |
|
|
|
TOTAL (A) |
4751.723 |
4354.043 |
3557.616 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1717.763 |
1625.522 |
|
|
|
|
Purchases of stock-in-trade |
129.831 |
658.363 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
104.834 |
(178.093) |
2353.252 |
|
|
|
Employee benefits expense |
452.238 |
470.956 |
|
|
|
|
Other expenses |
779.787 |
606.519 |
|
|
|
|
TOTAL (B) |
3184.453 |
3183.267 |
2353.252 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1567.270 |
1170.776 |
1204.364 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
575.443 |
405.317 |
203.718 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
991.827 |
765.459 |
1000.646 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
316.641 |
280.067 |
206.577 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
675.186 |
485.392 |
794.069 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
226.829 |
84.143 |
83.334 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
448.357 |
401.249 |
710.735 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
243.245 |
579.542 |
794.227 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
250.000 |
500.000 |
750.000 |
|
|
|
Dividend |
96.837 |
96.837 |
96.837 |
|
|
|
Tax on Dividend |
15.709 |
15.709 |
16.083 |
|
|
|
Transfer to Debenture Redemption Reserve |
125.000 |
125.000 |
62.500 |
|
|
BALANCE CARRIED
TO THE B/S |
204.056 |
243.245 |
579.542 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB |
3403.542 |
2772.268 |
2955.163 |
|
|
|
Contract Research Services |
570.251 |
180.329 |
143.124 |
|
|
TOTAL EARNINGS |
3973.793 |
2952.597 |
3098.287 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
728.187 |
1162.685 |
517.859 |
|
|
|
Capital Goods |
78.172 |
129.131 |
504.054 |
|
|
TOTAL IMPORTS |
806.359 |
1291.816 |
1021.913 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
(Basic) |
5.56 |
4.97 |
8.81 |
|
|
|
(Diluted) |
5.56 |
4.97 |
8.74 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd Quarter |
|
Net Sales |
1045.300 |
1142.400 |
1036.000 |
|
Total Expenditure |
704.200 |
848.000 |
691.400 |
|
PBIDT (Excl
OI) |
341.200 |
294.400 |
344.600 |
|
Other Income |
14.500 |
11.700 |
14.500 |
|
Operating
Profit |
355.600 |
306.000 |
359.100 |
|
Interest |
170.200 |
61.900 |
184.100 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
185.500 |
244.100 |
175.000 |
|
Depreciation |
79.500 |
89.500 |
89.800 |
|
Profit
Before Tax |
106.000 |
154.600 |
85.200 |
|
Tax |
36.100 |
48.400 |
27.700 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
69.900 |
106.100 |
57.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
(0.200) |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
69.700 |
106.100 |
57.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.44
|
9.22 |
19.98 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.57
|
11.53 |
22.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.76
|
4.68 |
10.87 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.08 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.64
|
0.76 |
0.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.72
|
2.09 |
3.53 |
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 |
Yes |
|
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 |
PERFORMANCE AND
OPERATION REVIEW:
During the year, the company achieved a turnover of Rs.4634.006 Millions as against Rs. 4208.179 Millions during the previous year reflecting a growth of 10.12%. Exports constitute Rs.4051.423 Millions or 87.69% of sales for 2011-12. Profit before tax improved by 39.10% (Rs.675.186 Millions during the year as against Rs.485.394 Millions in the previous year). Profit after tax for the year was Rs.448.357 Millions as against Rs.401.252 Millions during previous year.
Earning per share for the year works out to Rs.5.56 per share (previous year Rs.4.97).
The consolidated turnover, which includes results of all its wholly owned subsidiaries, proportionate share in the joint ventures (Schutz Dishman Biotech Limited, Dishman Arabia Limited, and Dishman Japan Limited) and associate (Bhadra- Raj Holdings Private Limited) reported 8.99% growth in sales to Rs.11241.117 Millions for the financial year 2011-12 compared to the previous year’s sales of Rs.10313.551 Millions.
Consolidated Profit before tax and other adjustment of the Company for the financial year 2011-12 stood at Rs. 879.117 Millions (previous year Rs. 907.739 Millions) marginal reduction due to higher operating costs arising from change in product mix. Consolidated Profit after tax for the financial year 2011-12 was Rs. 567.583 Millions (previous year Rs. 800.119 Millions), the decrease was mainly due to higher tax expenses as the tax concession available to EOU units in India are not available from financial year 2011-12 and the tax rabate available on carry forward loss to one of their subsidiaries is fully adjusted against the profits.
The consolidated Earning per share for the year work out to Rs.7.03 per share (previous year Rs.9.92 per share).
ACQUISITION OF
CREAPHARM PARENTERALS:
The Company’s wholly owned subsidiary company, namely Carbogen Amcis AG, Switzerland has acquired Creapharm Parenterals, a subsidiary of France based Greapharm Group. Creapharm Parenterals is a contract development and manufacturing organization specializing in liquid, semi-solid and injectable aseptic dosage form. As a part of this acquisition, Creapharm Parenterals has changed its name to Carbogen Amcis SAS. The Acquisition will extend Carbogen Amcis’ comprehensive range of development and manufacturing services by adding complementary formulations, lyophilization, services and sterile GMP capabilities for the fast supply of drug products including highly potents, for preclinical studies and clinical trials.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY OVERVIEW:
According to IMS forecast report, after following several years of slowing growth, the global market for medicines is posied to rebound from any expected low point of 3-4% growth in 2012 to 5-7% in 2016. This growth is driven due to increase of volume of spending by pharma emerging markets and an upstick spending in developed nations. The key growth drivers also includes rising income, continued low cost of drugs, government sponsored programs specially designed to increase access to treatment by limiting patient’s exposure to cost and also to encourage greater use of medicines.
As most of the big pharma companies already facing or likely to face challenges for their blockbuster products, the companies have been looking forward Merger and Acquisition and in licensing activities to make up for loss revenues that will arise with key products losing patent exclusivity. In this scenario, India, China, Brazil and other emerging markets are slowly and steadily gaining more importance and several big pharma companies are now shifting their focus to this markets.
In the past, acquisitions have played a vital role for Indian companies in establishing presence in the international market. Most of the acquisitions have either in generic segment or in the Contract Research and Manufacturing Segment (“CRAMS”). In the CRAMS space, access to new clients and technologies has been key rationale for acquisition. In the recent period, the pace at which, Indian companies have acquired international assets have slowed down considerably as preference towards forming JV/ alliances with focus on specific markets or therapy segments is gaining importance. Dishman has an advantage in CRAMS segment in India because of its non-conflicting business policies, technical capabilities and relationship built with various customers during the last 11 years. The trust and confidence of innovator companies has successfully positioned Dishman as preferred outsourcing partner. The company’s order book is expanding consistently reflecting its capacity and customer confidence.
SEGMENT-WISE OR
PRODUCT-WISE PERFORMANCE:
The business segments of the Company comprise the following:
|
Segment |
Description of the
activity |
|
CRAMS |
Contract Research and Manufacturing Segment under long term supply agreements |
|
Others |
Bulk Drugs, Intermediates, Quats, and Specialty Chemicals and outsourced/traded goods |
The break-up of Company’s total income from the product segments viz. “CRAMS segment” and “Others Segment” for the last three years is as under:
Rs. In Millions
|
Product Segment |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
CRAMS |
6629.400 |
6547.200 |
7179.100 |
|
Others |
3361.200 |
3766.300 |
4062.100 |
With strong RandD experience and effective relationship developed with MNC Customers, the Company has emerged as a premier contract manufacturing organization (CMO). The CMO business model was envisaged in the year 1997 and there under set up a modern production facility at Bavla, near Ahmedabad, which is a 100% EOU facility. At present, the Company has eight-multi purpose production units at Bavla. The company has also manufacturing and R and D facilities in Switzerland, UK and Netherlands. The company has set up a green field manufacturing facility at Shanghai Chemical Industrial Park, Shanghai.
The company has adopted various marketing strategies to continue the growth, including increase in number of clients to reduce the dependency on any single client, increase the number of products range to reduce product risk; to enter contract manufacturing through contract research of new molecules etc. and enter the specific market with marketing innovation, technology transfer in the developing markets, where technology is licensed to API manufacturer with a stipulation that the intermediates are to be procured from Dishman on a long term basis.
OUTLOOK:
As per the report released by IMS Health, the Indian pharma market is forecasted to grow at a CAGR 15.9% between 2010 and 2015 and going to double in the five years to Rs.1196770.000 Millions. Past spending growth offers few clues to the level of growth to expect through 2015. Unprecedented dynamics like high level of patent expiry, rapid expansion of demand for medicines in the world’s fastest growing economies, fewer new medicines reaching patients and more moderate uptake of those that do become available. These dynamics are driving rapid shift in the mix of spending between branded products and generics and between spending in the major developed countries and those 17 high growth emerging countries referred to as “ pharmaemerging”
After a brief period of sluggishness, the growth momentum in the domestic formulations market appears to be back on the track. The factors like patent expiration, weak pipeline quality and increasing focus by government to reduce healthcare cost continue to exert pressure on innovator companies which supports the out sourcing to low-cost nations like India, China, Brazil etc.
On the CRAMS front, Indian players are focusing on providing service across the value chain spanning from development stage to commercial scale production. With several drug going off patent and big pharma increasing exposure to cost efficient sourcing locations, opportunities remain favorable for CRAMS players to provide services and subsequently graduate to commercial scale production.
CONTINGENT LIABILITIES
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
Claims against the Company not acknowledged as debt |
0.301 |
0.312 |
|
Guarantees |
|
|
|
(i) Outstanding guarantees furnished to the bank in respect of wholly owned subsidiaries and a joint venture company |
4335.978 |
2486.789 |
|
(ii) Guarantees given by Bank on behalf of the Company |
26.721 |
12.166 |
|
Letters of Credit in favor of suppliers |
195.829 |
236.291 |
|
Disputed central excise duty (including service tax) liability |
41.865 |
43.503 |
|
Disputed income tax liability for various assessment years for which appeals are pending with Appellate authorities, out of the said amount, the Company has paid ` 662.26 Lacs (Previous Year ` 642.26 Lacs) under protest. |
527.356 |
400.705 |
|
Disputed sales tax and central sales tax liability ,out of the said amount company has paid `7.83 Lacs under protest. |
43.396 |
44.741 |
|
Bills discounted with banks |
429.519 |
339.857 |
STATEMENT OF STANDALONE / CONSOLIDATED UNAUDITED RESULTS FOR THE
QUARTER
ENDED 30-06-2012
Rs. In Millions
|
Sr. No. |
Particulars |
For The Quarter ended 30-06-2012 Standalone |
|
|
|
Unudited |
|
1 |
Income From
Operations |
|
|
|
a) Net sales/income from operations (Net of excise duty) |
1043.287 |
|
|
b) Other Operating Income |
2.022 |
|
|
Total Income from
operations (net) |
1045.309 |
|
2 |
Expenses |
|
|
|
a) Consumption of Raw Materials |
428.193 |
|
|
b) Purchase of traded goods |
0.897 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(65.324) |
|
|
d) Employee benefits expense |
133.340 |
|
|
e) Depreciation and amortisation expense |
79.470 |
|
|
f) Other Expenditure |
207.047 |
|
|
Total expenses |
783.623 |
|
3 |
Profit / (Loss)
from Operations before Other Income, finance costs and exceptional items
(1-2) |
261.686 |
|
4 |
Other Income |
14.464 |
|
5 |
Profit / (Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
276.151 |
|
6 |
Finance costs |
170.161 |
|
7 |
Profit/(Loss) from
ordinary activities after finance costs but before exceptional items (5-6) |
105.990 |
|
8 |
Exceptional Items |
- |
|
9 |
Profit/(Loss) from Ordinary Activities before tax (7+8) |
105.990 |
|
10 |
Tax expense |
36.082 |
|
11 |
Net Profit/(Loss)
from Ordinary Activities after tax (9-10) |
69.908 |
|
12 |
Extraordinary Items (net of tax expense) |
|
|
|
a) Prior Period Expenses |
0.172 |
|
13 |
Net Profit/(Loss)
for the period (11-12) |
69.736 |
|
14 |
Income from Associates |
- |
|
15 |
Minority Interest |
|
|
16 |
Net Profit / (Loss) after taxes, minority interest and share of profit / (loss) of associates (13+14+15) |
69.736 |
|
17 |
Paid -up Equity Share Capital (Face Value of Rs 2/- per equity share) |
161.394 |
|
18 |
Reserves Excluding Revaluation Reserves as per balance sheet of previous accounting year |
|
|
19 |
Basic and Diluted EPS (before & after Extraordinary Items) |
|
|
|
Basic EPS (in Rs.Not annualised) |
0.86 |
|
|
Diluted EPS (in Rs.Not annualised) |
0.86 |
|
|
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
1 |
Public Shareholding |
|
|
|
- Number of Equity Shares |
31,183,696 |
|
|
- Percentage of Shareholding |
38.64% |
|
2 |
Promoters and
promoter group Shareholding |
|
|
|
a) Pledged/Encumbured |
|
|
|
- Number of Shares |
2,970,000 |
|
|
- Percentage of Shares (as a % of the total shareholding of promoter & promoter group) |
6.00% |
|
|
- Percentage of Shares (as a % of the total share capital of the company) |
3.68% |
|
|
b) Non-encumbured |
|
|
|
- Number of Shares |
46,543,440 |
|
|
- Percentage of Shares (as a % of the total shareholding of promoter & promoter group) |
94.00% |
|
|
- Percentage of Shares (as a % of the total share capital of the company) |
57.68% |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
0 |
|
|
Received during the quarter |
1 |
|
|
Disposed during the quarter |
1 |
|
|
Remaining unresolved at the end of the quarter |
0 |
SEGMENT WISE REVENUE
,RESULT AND CAPITAL EMPLOYED
Rs. In Millions
|
Sr. No |
PARTICULARS |
For The Quarter ended 30-06-2012 |
|
|
|
Unudited |
|
1 |
Segment Revenue |
|
|
|
(a) CRAMS |
612.557 |
|
|
(b) Others |
430.730 |
|
|
Total |
1043.287 |
|
|
Less: Inter-segment Revenue |
- |
|
|
Net Sales /Income from Operation |
1043.287 |
|
2 |
Segment Results
{(Profit)(+)/(Loss)(-) before tax and interest from each segment} |
|
|
|
(a) CRAMS* |
148.136 |
|
|
(b) Others* |
128.014 |
|
|
Total |
276.151 |
|
|
Less: i) Interest |
170.161 |
|
|
ii) Other un-allocable expenditure net off unallocable income |
|
|
|
Total Profit/(Loss) Before Tax |
105.990 |
|
3 |
Capital Employed
(Segment Assets-Segment liabilities) |
|
|
|
(a) CRAMS |
4374.089 |
|
|
(b) Others |
1834.038 |
|
|
(c) Unallocable others |
6356.074 |
|
|
Total |
12564.200 |
Notes:
- The figures have been re-grouped, re-cast and re-arranged wherever necessary;
- The financial results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their meetings held on 31st July, 2012;
- As per clause 41 of the listing agreement, the Company has opted to publish only consolidated financial results. The stand-alone financial results are available for perusal on the Company's website as well as on the stock exchanges' websites as stated below:
www.dishmangroup.com, www.bseindia.com, and www.nse-india.com
- The Statutory Auditors have carried out a "Limited Review" of the stand-alone financial results of the Company for the quarter ended 30th June, 2012.
- During the quarter ended on 31st December, 2011, the Company has opted for the option given in the paragraph 46A of Accounting Standard - 11 "The effects of changes in Foreign Exchage Rates" inserted by the Notification dated 29th December, 2011 issued by the Ministry of Corporate Affairs.
As a result:
- The exchange differences arising on restatement of long term foreign currency monetary items in so far as they relate to acquisition of depreciable capital assets are adjusted to the cost of such assets and depreciated over the balance life of the assets.
- In other cases, the differences have been accumulated in 'Foreign Currency Monetary Item Translation Difference Account' and amortized over the balance period of such long-term foreign currency monetary asset / liability individually, but not beyond March 31, 2020, by recognition as an income or expenses in each of such period.
Accordingly, on standalone basis, Rs.64.921 Millions has been added to the cost of the capital assets, Rs. 5.938 Millions has been accumulated 'Foreign Currency Monetary Item Translation Difference Account' and total amortisation on such foreign currency monetary asset / liability for the quarter ended on 30th June 2012 is Rs.3.050 Millions. The resulting adjustments for these have been given effect in the current quarter.
- Details of Number of Investor complaints for the quarter ended 30th June, 2012: beginning - NIL, received- 1, resolved - 1, pending- NIL as at 30th June, 2012;
- The business segments of the Company comprise the followings:
|
Segment |
Description of the
activity |
|
CRAMS |
Contract Research and Manufacturing Segment under long term supply agreements |
|
OTHERS |
Bulk Drugs, Intermediates, Quats, Speciality Chemicals and Traded Goods |
- Consolidated financial results comprise the results of the parent Company, subject and its subsidiaries viz. Dishman Europe Limited., Dishman USA Inc., Dishman International Trading (Shanghai) Company Limited, Dishman Switzerland Limited, Dishman Pharma Solutions AG, Switzerland, Dishman Pharmaceuticals and Chemicals (Shanghai) Company Limited, Innovative Ozone Services Inc. (IO3S), Dishman Netherlands B. V. (formerly known as "Pharma Syn B. V."), Cohecie Fine Chemicals B.V. (formerly known as "Dishman Holland B.V."), Carbogen Amcis Limited (formerly known as "Synprotec DCR Limited "), CARBOGEN AMCIS AG, Carbogen Amcis (India) Limited, Dishman Australasia Pty. Limited, Dishman LLP, Dishman Care Limited, Dishman Middle East (FZE), Dishman Japan Limited (85% holding by Dishman), two joint venture Companies., namely Schutz-Dishman Biotech Limited .(22.33% holding by Dishman), and Dishman Arabia Limited, (50% holding by Dishman) and one associate company namely, Bhadr-Raj Holdings Private Limited (40% holding by Dishman) as per relevant Accounting Standards.
Fixed Assets:
- Land
- Building
- Plant and
Machinery
- Laboratory
Equipment
- Electrical
Installation
- Furniture and
Fixtures
- Office Equipment
and Computer
- Vehicles
Details Website
NEWS:
Acquisition of Creapharm Parenterals
17 January 2012
Dishman
Pharmaceuticals and Chemicals Limited has informed that Company's Wholly
Owned Subsidiary company, namely Carbogen Amcis AG., Switzerland has acquired
Creapharm Parenterals, a subsidiary of France based Greapharm Group.
Creapharm Parenterals is a contract development and manufacturing organization
specializing in liquid, semi-solid and injectable aseptic dosage forms. As part
of this acquisition, Creapharm Parenterals has changed its name to CARBOGEN
AMCIS SAS.
The acquisition will extend CARBOGEN AMCIS' comprehensive range of development
and manufacturing services by adding complementary formulation, lyophilization
services and sterile GMP capabilities for the fast supply of drug products,
including highly potents, for preclinical studies and clinical trials (Phase I,
II and III).
Dishman Netherlands is pleased to announce
that the Food and Drug Administration (FDA) successfully audited its facility
in Veenendaal.
3 November 2011
Dishman
Netherlands is pleased to announce that the Food and Drug Administration (FDA)
successfully audited its facility in Veenendaal. The audit has been concluded
without 483 Inspectional Observations.
The Audit was
conducted over 4 days, from October 24 to 28, 2011 and covered two products;
Cholesterol HP and Calcitriol.
“We are very proud
of this significant achievement” states Henk Pluim, CEO
of Dishman Netherlands. “It is allowing us to supply commercial APIs
to the US market produced in our new HiPo facility. Our Quality Assurance
Management is audited by customers and local authorities quite often, but a
successful FDA inspection is the icing on the cake”.
Dishman Netherlands reaches agreement with
Charles Bowman and Company
to distribute all their Vitamin D3 products
in USA
12 January 2011
Dishman Netherlands reaches agreement with
Charles Bowman and Company to distribute all their Vitamin D3 products in North
America; which will provide them with good growth opportunities for the animal
feed market.
Veenendaal, the
Netherlands, January 11, 2010
Dishman Netherlands
(Vitamins and Chemicals) announced recently their intentions to produce,
market, and sell Vitamin D3 for the animal feed, pharmaceutical, and food
markets during 2011, from their new facility in India which is currently being
completed. All products from this facility will be GMP+ certified. Existing
Vitamin D products from Dishman Netherlands include Cholecalciferol, Vitamin D3
resin, Dohyfral D3 2000AG (vitamin D3 in oil), and Ergocalciferol.
Charles Bowman and
Company has been appointed the exclusive North American distributor for all
Vitamin D products from Dishman Netherlands. The new products from Dishman
Netherlands will include Dishman D3 500,000IU for use in the animal feed market
worldwide, Dishman D3 100,000IU for the food market, and also other Vitamin D3
products in oil. The new Dishman D3-500 grade will provide a high quality D3-500
to meet the growing demand in the marketplace. The history of Vitamin D
production at Dishman Netherlands can be traced back to the 1920s and the
invention of the process to produce vitamin D2 and thereafter in 1946 when the
production of Vitamin D3 began.
This agreement
strengthens Dishman Netherlands’ position as a leader in the manufacture and
sale of Vitamin D3 in the North American market; particularly the animal feed
market with Dishman D3-500. “Charles Bowman and Company was a natural choice
for us as they have worked with Dishman Netherlands for many years with our
Vitamin D products and Cholesterol,” stated Rodney Fox, International Sales and
Marketing Director of Dishman Netherlands. “They bring not only an
understanding of our operations but also considerable experience in the areas
of marketing and distribution of vitamins and nutrition ingredients to the
feed, food, and pharmaceutical markets.”
Strategic alliance with Codexis
17 February 2010
Customers will
benefit from cheaper, cleaner and greener processes
(AHMEDABAD, INDIA),
February 17, 2010 – Today, the Dishman Group announced the formation of a
strategic alliance with Codexis, Inc. a California based biotechnology
company. This strategic partnership covers the use of Codexis’
proprietary enzymatic biocatalysis technology for the manufacture of building
blocks, intermediates and APIs for innovator pharmaceutical
companies. Dishman will be a preferred contract manufacturer for
Codexis and will be able to offer the technology to its own customers. In
addition, the companies will work exclusively on certain select accounts.
Codexis offers a
wide selection of enzymes for the pharmaceutical synthesis of chiral compounds.
With the majority of today’s drugs containing at least one chiral centre, this
technology is directed at the very heart of pharmaceutical
manufacture. In comparison to traditional chemical synthesis, this
technology offers a number of significant advantages: cost reduction compared
with conventional complex transformations as a result of telescoped processes,
increased specificity gives improved yields and often improved impurity
profiles, significant reduction in environmental impact through reduce use of
organic solvents and reduced energy processes.
This alliance will
benefit Codexis and its customers by enabling Codexis to offer production of
both intermediates and final APIs in Dishman’s world-class manufacturing asset
base. “We are delighted to be working with Codexis on this
innovative technology. It adds another dimension to the already
extensive portfolio of services offered by the Dishman Group. Our
customers will benefit from cheaper, cleaner, greener processes manufactured in
a low cost environment, a significant differentiator given today’s regulatory
and market conditions ” said Nick Green, President Dishman CRAMS.
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 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.55.52 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.