MIRA INFORM REPORT
|
Report Date : |
24.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
WANBURY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
11.08.1988 |
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Com. Reg. No.: |
11-48455 |
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Capital
Investment/ Paid-up Capital: |
Rs. 146.893
Millions |
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CIN No.: [Company
Identification No.] |
L51900MH1988PLC048455 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP12825B /
VPNW00073D |
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PAN No.: [Permanent
Account No.] |
AABCP5939P |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business : |
Manufacturing and
Sale of Pharmaceuticals, Medicines, Drugs and Organic Chemicals. |
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No. of Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (42) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 5616000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is a fastest growing pharmaceutical company having a moderate
track record. The company has been incurring losses during past to financial years
because of which the reserves are deteriorating. However, trade relations are reported as fair. Business is active.
Payments are reported as slow but correct. The company can be considered for business dealings with great
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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
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Registered / Corporate Office : |
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Tel. No.: |
91-22-67942222 |
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Fax No.: |
91-22-67942111/ 333 |
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E-Mail : |
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Website : |
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Head Office : |
Plot No. 28, 1st
Floor, Kopri Road, Sector – 19 C, Vashi, Navi Mumbai – 400 703, Maharashtra,
India |
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Tel. No.: |
91-22-27668938/27668939/27668958/27668959 |
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Fax No.: |
91-22-27663944 |
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E-Mail : |
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Factory 1 : |
A-15, MIDC
Industrial Area, Patalganga, Taluka -
Khalapur, District Raigad - 410 220, |
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Tel. No.: |
91-2192-250444/
91-22-27630034/254006 |
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Fax No.: |
91-2192-250531 /
91-22-27619447 |
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E-Mail : |
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Factory 2 : |
Plot No. J – 17,
MIDC Industrial Area, Tarapur, Maharashtra, India |
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Tel. No.: |
91-2192-250444/
91-22-27630034/254006 |
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Fax No.: |
91-2192-250531 /
91-22-27619447 |
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Factory 3 : |
Plot No. 24, M.I.D.C Tarapur, |
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Factory 4 : |
Plot No. D-312, ITC Industrial Area, MIDC Turbhe, Navi Mumbai, |
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Factory 5: |
K. |
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Overseas Office: |
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E mail: |
DIRECTORS
AS ON 31.03.2012
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Name : |
Mr. A L Bongirwar |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. N.K. Puri |
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Designation : |
Non-Executive Independent Director |
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Qualification : |
MSC (Physics) |
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Expertise in Specific Area : |
Banking |
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Date of Appointment : |
09.03.2005 |
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Name : |
Dr. P.L Tiwari |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. P R Dalal |
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Designation : |
Exim Bank Nominee |
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Name : |
Mr. K Chandran |
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Designation : |
Whole-time Director |
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Qualification : |
Graduate |
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Experience: |
28 Years |
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Expertise in Specific Area : |
Pharmaceutical Industry |
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Date of Appointment : |
23.01.2001 |
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Name : |
Mr. A N Shinkar |
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Designation : |
Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Pankaj B Gupta |
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Designation : |
Company Secretary |
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Name : |
Mr. Mangesh Bhosale |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
4164730 |
24.77 |
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4164730 |
24.77 |
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3024000 |
17.99 |
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3024000 |
17.99 |
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Total shareholding of Promoter and Promoter Group (A) |
7188730 |
42.76 |
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(B) Public Shareholding |
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|
10117 |
0.06 |
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|
7360 |
0.04 |
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|
151 |
0.00 |
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|
750729 |
4.47 |
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|
768357 |
4.57 |
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|
1744691 |
10.38 |
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|
5138237 |
30.56 |
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|
1667027 |
9.92 |
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|
305244 |
1.82 |
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|
48943 |
0.29 |
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94680 |
0.56 |
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161621 |
0.96 |
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|
8855199 |
52.67 |
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Total Public shareholding (B) |
9623556 |
57.24 |
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Total (A)+(B) |
16812286 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
567000 |
0.00 |
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|
567000 |
0.00 |
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Total (A)+(B)+(C) |
17379286 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Sale of Pharmaceuticals, Medicines, Drugs and Organic Chemicals. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk Drugs |
M.T |
9,654.00 p. a. |
7456.22 |
|
Formulation - Tablets |
No. in Lacs |
5,400 p. a. |
-- |
|
Capsules |
No. In Lacs |
2100 p.a. |
-- |
|
Dry Syrup ( 60 ML) |
No. of Bottles
in Lacs |
60 p. a. |
-- |
|
Sachets ( 3 and 5 gm) |
No. in Lacs |
72 p. a. |
-- |
|
Sachets ( 22 gm) |
No. in Lacs |
60 p. a. |
-- |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kapoor an Parekh Associates Chartered Accountant |
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Address : |
Mumbai, Maharashtra, India |
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Associates/Subsidiaries : |
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Other Related Parties : |
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CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 Millions |
|
2000000 |
Preferences Shares |
Rs.100/- each |
Rs.200.000 Millions |
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TOTAL
|
|
Rs.500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17379286 |
Equity Shares |
Rs.10/- each
|
Rs.173.793
Millions |
NOTES:
Terms/Rights
attached to Equity Shares:
The Company has
issued only one class of Equity Shares having a par value of Rs. 10 per share.
Each holder of Equity Shares is entitled to one vote per share. The Company
declares and pays dividend in Indian rupees. In the event of liquidation of the
Company, the holders of Equity Shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. The
distribution will be in proportion to the numbers of Equity Shares held by the
shareholders.
Outstanding
Options to subscribe to Equity Shares:
11,25,236 warrants
of the face value of Rs. Nil have been allotted to the shareholders of
Erstwhile PPIL as per the BIFR order. The warrant holders have the right to
subscribe to one Equity Share of Rs. 10/- each at the premium of Rs. 125/- per
share which is exercisable within five years from 27 June 2007, being the date
of allotment of the warrants.
Details of Equity Shares held by each shareholder holding more than 5%:
|
Name of Shareholder |
As on 31.03.2012 |
|
|
|
No. of Shares |
% of Holding |
|
Kingsbury Investments Inc |
3024000 |
17.40% |
|
Expert Chemicals (India) Private Limited |
4164730 |
23.96% |
13,48,175 Shares
were allotted in the financial year ended 30 September 2008 pursuant to the
scheme of amalgamation of erstwhile PPIL and erstwhile DOCL with the Company, without
payment being received in cash.
Out of the above
Equity Shares 5,67,000 (Pr. Yr. 5,67,000) shares are represented by 1,89,000
(Pr. Yr. 1,89,000) Global Depository Receipts.
The Company has
allotted 26,90,000 Equity Shares of Rs. 10/- each at the premium of Rs. 27.50
per Equity Shares to Expert Chemicals (India) Private Limited on 30 March 2012
on preferential basis pursuant to the Corporate Debt Restructuring Scheme.
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 |
173.793 |
146.893 |
146.893 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1230.319 |
1404.614 |
1702.448 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1404.112 |
1551.507 |
1849.341 |
|
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
3168.868 |
2288.936 |
2632.693 |
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2] Unsecured Loans |
6.801 |
683.561 |
579.134 |
|
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TOTAL BORROWING |
3175.669 |
2972.497 |
3211.827 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
3.194 |
|
|
|
|
|
|
|
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TOTAL |
4579.781 |
4524.004 |
5064.362 |
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APPLICATION OF FUNDS |
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|
|
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|
|
|
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|
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FIXED ASSETS [Net Block] |
2106.137 |
2198.858 |
2204.886 |
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Capital work-in-progress |
127.124 |
99.410 |
150.132 |
|
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|
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INVESTMENT |
1057.965 |
1047.157 |
1017.231 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
441.758
|
363.894 |
323.561
|
|
|
Sundry Debtors |
796.765
|
655.651 |
822.274
|
|
|
Cash & Bank Balances |
170.095
|
75.919 |
104.220
|
|
|
Other Current Assets |
0.654
|
0.538 |
0.000
|
|
|
Loans & Advances |
1954.949
|
1824.283 |
1446.579
|
|
Total
Current Assets |
3364.221
|
2920.285 |
2696.634 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
601.462
|
616.530 |
615.113
|
|
|
Other Current Liabilities |
1396.803
|
1035.950 |
238.492
|
|
|
Provisions |
77.401
|
89.226 |
150.916
|
|
Total
Current Liabilities |
2075.666
|
1741.706 |
1004.521 |
|
|
Net Current Assets |
1288.555
|
1178.579 |
1692.113
|
|
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|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
4579.781 |
4524.004 |
5064.362 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3445.505 |
3152.371 |
3511.082 |
|
|
|
Other Income |
108.241 |
151.392 |
247.665 |
|
|
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TOTAL (A) |
3553.746 |
3303.763 |
3758.747 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1346.928 |
1100.835 |
|
|
|
|
Purchase of Stock-in-Trade |
426.026 |
406.212 |
|
|
|
|
Employee benefits expense |
615.584 |
571.768 |
|
|
|
|
Other expenses |
1016.519 |
979.594 |
3091.369 |
|
|
|
Exceptional
Items-Income / (Expense) |
(78.321) |
0.000 |
|
|
|
|
Changes in
inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
(56.805) |
(30.758) |
|
|
|
|
TOTAL (B) |
3269.931 |
3027.651 |
3091.369 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
283.815 |
276.112 |
667.378 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
350.870 |
407.994 |
233.720 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(67.055) |
(131.882) |
433.658 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
94.313 |
90.571 |
118.235 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(161.368) |
(222.453) |
315.423 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.216 |
16.208 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(161.368) |
(222.669) |
299.215 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
593.168 |
311.082 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Tax on Dividend |
NA |
NA |
2.440 |
|
|
|
Proposed Dividend |
NA |
NA |
14.689 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
593.168 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1498.943 |
1166.385 |
1373.194 |
|
|
|
Freight, Insurance Etc. |
27.694 |
34.268 |
20.690 |
|
|
|
Others |
0.000 |
0.000 |
0.672 |
|
|
TOTAL EARNINGS |
1526.637 |
1200.653 |
1394.556 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials [Including High Seas Purchases] |
441.210 |
365.559 |
324.373 |
|
|
|
Capital Goods |
0.000 |
1.516 |
2.248 |
|
|
|
Interest |
24.586 |
28.917 |
28.660 |
|
|
|
Commission Paid |
15.059 |
5.061 |
12.903 |
|
|
|
Legal & Professional Fees |
2.816 |
0.765 |
9.287 |
|
|
|
Travelling & Other Expenses |
3.448 |
19.378 |
40.069 |
|
|
TOTAL IMPORTS |
487.119 |
421.196 |
417.540 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(10.97) |
(15.16) |
20.37 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
966.800 |
1053.100 |
1053.500 |
|
Total Expenditure |
898.500 |
1033.600 |
995.700 |
|
PBIDT (Excl OI) |
68.300 |
19.500 |
57.800 |
|
Other Income |
29.100 |
06.600 |
00.300 |
|
Operating Profit |
97.400 |
26.100 |
58.100 |
|
Interest |
121.200 |
17.800 |
101.400 |
|
PBDT |
(23.800) |
08.300 |
(43.300) |
|
Depreciation |
32.100 |
39.100 |
38.600 |
|
Profit Before Tax |
(55.800) |
(30.800) |
(82.000) |
|
Profit After Tax |
(55.800) |
(30.800) |
(82.000) |
|
Net Profit |
(55.800) |
(30.800) |
(82.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(4.54)
|
(6.74) |
7.96
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(4.68)
|
(7.05) |
8.98
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.95)
|
(4.35) |
6.43
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
(0.14) |
0.17
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.26
|
1.92 |
1.74
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.62
|
1.67 |
2.68
|
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
|
HIGH COURT OF BOMBAY CASE DETAILS BENCH:-BOMBAY Stamp No.:- ARPST/30848/2012 Filing Date:- 02/11/2012 Reg. No.:- ARP/46/2012 Reg.
Date:- 05/12/2012 Petitioner:- Candid Drug Distributors Respondent:- Wanbury
Limited Petn. Adv.:- Mr. Dushyant Purekar Resp.
Adv.:- Sanjay Udeshi and Company Bench: Single Status: Pre-Admission Last Date: 08/04/2013 Stage:
Petitions For Hearing [Civil Side Matters] Last Coram: Provisional Board Act: Arbitration and Conciliation Act 1996 |
OPERATIONAL
REVIEW:
THE FINANCIAL HIGHLIGHTS ARE AS UNDER:
The Total Revenue for
the financial year was Rs. 35,537.46 Millions as against Rs. 3303.763 Millions
in the previous year. The Total Expenditure was Rs. 37,934.35 Millions as
against Rs. 3526.216 Millions. The Loss before Tax for the financial year was
Rs. 161.368 Millions as against a Loss before Tax of Rs. 222.453 Millions.
Exports of the Company during the year were Rs. 1526.637 Millions as against
Rs. 1200.653 Millions in the previous year. The Formulation Business revenues
declined on account of high rate of attrition, which put the profitability of
the division under pressure. The Company’s management has taken several
measures to improve the formulations business. All vacancies have been filled
across the country with the best talent. The Company has also engaged some of
the best talent in the industry at senior management leadership levels. The new
product pipeline is robust and the launch of these products should help achieve
a significant growth in formulation business revenues and profitability.
MERGER OF THE PHARMACEUTICAL PRODUCTS OF INDIA LIMITED (PPIL) WITH THE
COMPANY:
The Hon’ble Board
for Industrial and Financial Reconstruction (BIFR) is considering the
Rehabilitation and Revival cum Merger of the Pharmaceutical Products of India
Limited (PPIL) with the Company afresh, pursuant to the Order of Hon’ble
Supreme Court of India dated 16 May 2008. The PPIL has submitted proposal for
rehabilitation cum merger of PPIL with Wanbury Limited, with Operating Agency,
IDBI and after considering the same in the joint meeting of all concerned,
Operating Agency, IDBI has submitted “Draft Rehabilitation Proposal” with
Hon’ble BIFR for their consideration. The Hon’ble BIFR is considering the
“Draft Rehabilitation Proposal” submitted by the IDBI, Operating Agency and
they expect that the “Draft Rehabilitation Proposal” will be circulated by
Hon’ble BIFR shortly for the consideration of the all concerned.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
INDUSTRY OVERVIEW:
According to
McKinsey, India is the 14th largest Pharmaceutical market and third largest in
terms of manufacturing Pharma products by volume in the world. By 2015, it is
expected to reach top 10 in the world beating Brazil, Mexico, South Korea and
Turkey. The Indian pharmaceutical market is currently estimated at US$ 12 bn
and is expected to reach US$ 74 billion in Sales by 2020 according to a
PricewaterhouseCoopers (PWC) Report. The industry which recorded a 9.9% growth
till 2010 is expected to grow at a rate of 9.5% until 2015. The increasing population
of the higher-income group in the country is expected to open a potential US$ 8
bn market for multinational companies selling costly drugs by 2015. India
continuous to be the largest exporter of Generic drugs in the world. The Indian
generic market is estimated at US$ 11 bn and is expected to grow at a CAGR of
nearly 17% between 2011 to 2014. According to IMS health, the shift in global
drug spending towards generics is expected to rise to 39 per cent of total
Pharma spending in 2015, up from 27 per cent in 2010. The US market remains the
largest market for generics and in the short to medium term will remain a major
focus for the sector and a growth driver for a number of Indian Pharma
companies. During 2011, of the total 431 Abbreviated New Drug Application
(ANDA) approved by the US FDA, Indian pharma companies received 144 approvals
for the ANDA's and 49 tentative approvals, amounting to over 33 per cent of the
FDA approvals in 2011. Compared to $21 billion in 2011, Patended products worth
US$ 52 billion are expected to expire in 2012. This would offer significant
market opportunity for lower priced generics and a clear visibility for profit
and revenue growth for the generic focused Indian Pharma companies. A growing
demand for generics, subsequent increase in capacity utilization and better
cost rationalization will ensure stability to the sector's operating margins.
Margins for Indian Pharma companies could also improve with the depreciating
rupee; the extent, however, would be governed by the amount of imports and
hedging policies adopted.
GOVERNMENT
INITIATIVES:
The government is
planning to set up a US$ 639.56 mn Venture Capital (VC) fund to give a boost to
drug discovery and strengthen the pharma infrastructure in the Country. The
government had issued an expression of Interest (EOI) for technical and
financial bids for the selection of a global level consultant for the
preparation of a detailed project report in order to develop India as a drug
discovery and pharma innovation hub by 2020. The Drugs and Pharmaceuticals
Manufacturers Association has received an in-principal approval for its
proposed special economic zone (SEZ) for Pharmaceuticals, bulk drugs, active
pharmaceuticals ingredients (API) and Formulations to be located at Nakkapalli Mandal
in Visakhapatnam district. The Department of Pharmaceuticals has prepared
“Pharma Vision 2020” for making India one of the leading destinations for
end-to-end drug discovery and Innovations.
COMPANY OVERVIEW:
DOMESTIC
FORMULATIONS BUSINESS:
The Company was
focused on restructuring the Formulations Business during the year to lay the
foundation for robust and sustainable growth. This included major initiatives
like implementation of mandatory order with cheque system to boost collections
and curb doubtful orders. This not only led to significant reduction in the
overdue amount in the market but also to lower sales. These initiatives coupled
with scarcity of funds due to delay in final approval and disbursal of CDR
funds led to drop in sales for the year. However, the Company undertook the
following initiatives which would help grow the Formulation business
significantly over the mid-long term.
• Appointment
President, Formulations – During the year the Company has appointed
President, Formulation. He has nearly 30 years of experience in the
Pharmaceutical Industry and has worked some of the top Pharmaceutical companies
in India.
• Introduced a
new reporting system for Sales Force – From an on paper weekly reporting to
a new real time online reporting system has been put in place by the Company,
which helps in tracking the performance of the sales force on a real time
basis.
• Introduced
New Order System – The Company only accepts orders on receipt of cheques
now. This initiative has improved the overall collections and has streamlined
the cash flow cycle of the Formulation business. The Company continues to focus
on Orthopedics, Gastrointestinal, Gynecology and Surgery therapeutic segments.
The Company has been able to maintain its position by focusing on some of its
key existing brands. These brands have established themselves in their
respective therapeutic areas and have come to be known as the best in class.
Key performing brands for the Company are:-
CPink – An iron
supplement based on Ferrous Ascorbate preparation is a Rs. 280.000 Millions
(ORG MAT Mar 2011) brand and ranked 2nd in Ferrous Ascorbate category. CPink
has revolutionized Iron therapy by introducing the formulation prepared through
patented IIC (Integrated Iron Complexation) technology. CPink with IIC
technology maximizes Iron absorption and prevents GI irritation.
Adtrol plus - Is an Rs.200.000
Millions brand, ranked 3rd in the Calcitriol Combinations market. It’s a comprehensive
solution for the management of osteoporosis. Adtrol Plus can be used in all
osteoporosis patients; all women above age of 40 years and men above 50 years.
Rabiplus- Their brand of
Rabiprazole is Rs.200.000 Millions brand and ranked among top 5 brands in this
category. Rabiplus is prepared through Optimally Stabilized Trilayered Enteric
coated pallet technology. The benefit of this technology is 100% availability
of drug at the site of absorption thus offers faster onset of action as compared
to competitors. Pallet technology is being used for the first time in India.
Folinine - Is a Rs.120.000
Millions brand, growing at 57% with second rank in folic acid market. The drug
controls pregnancy complications and is recommended throughout the nine months
of pregnancy. According to NIN 1998, more than 60 % young women suffer from
folic acid deficiency, and over 25% women suffer from pyridoxine deficiency and
thus there is huge potential in this area.
The Company had
limited new product launches during the year due to the delay in CDR approval.
However, the Company did launch the following new products during the year:
• GRO 9
• CRich
• Adtrol D
Active Pharmaceutical Ingredients (API) Business:
The API division
led by the new management achieved the 20% top line growth target it had set
for itself last year. The division benefited from better price realization
across products including Metformin, mainly due to favorable exchange rates
obtained for exports during the year. The Company has introduced significant
cost reduction initiatives over the last one year in order to sustain its
competitiveness in a highly price sensitive market.
API Research and
Development (R and D) Centre increased its man power at Tanuku factory to
improve process efficiency of already commercialized products. DSIR has
approved the Company’s RandD centre of Tanuku. During the year, the R and D
Centre of the Company has developed lab scale processes for 3 Active
Pharmaceutical Ingredients (APIs), increasing capacity to three times that of
its key product with minimal investment.
The synthesis of
APIs today is governed by stringent norms as the process chemistry employed
needs to be cost effective, hazard-free, non-infringing, adhering to
Pharmacopoeia quality and eco-friendly. RandD Centre has successfully improved
the process through backward integration for its key API products wherein
nearly a 15 % cost reduction was achieved.
INTERNATIONAL FORMULATIONS BUSINESS – CANTABRIA PHARMA:
The Spanish
economy contracted by 0.3% in the opening quarter of 2012 is expected to shrink
through 2012. This will make it difficult for the government to achieve its
fiscal deficit targets, which may lead to more austerity measures and the
government turning to the EU for help in dealing with its bank problems.
Spain's unemployment rate jumped to 24.4% during the first quarter of 2012.
This was the highest rate in 18 years. With the economy already in contraction,
unemployment is likely to continue to climb in the coming quarters. Spanish industrial
production deteriorated further with the Industrial output falling by 7.5%. Due
to continuous price cuts and the declining demand due to the current economic
scenario, the Cantabria Pharma business has become unviable. Therefore the
Company has decided to divest the company and exit Spain. Though the Company
initiated appropriate measures for the divestment of the Cantabria Business, it
could not get the desired response due to the prevailing economic scenario.
However, the Company will continue to aggressively pursue the same.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 [Rs. in millions] |
31.03.2011 [Rs. in millions] |
|
Letter of Credit Opened |
107.100 |
273.027 |
|
Bank Guarantee issued |
3.576 |
3.309 |
|
Guarantees given to banks/financial institutions for loans given to
subsidiaries |
2733.600 |
2529.600 |
|
Loans outstanding at the year end |
1671.359 |
1500.766 |
|
Guarantees given
to banks/financial institutions for loans given to Other |
270.000 |
270.000 |
|
Loans outstanding at the year end |
178.433 |
155.515 |
|
Estimated
amounts of contracts remaining to be executed on capital account and not provided for (net of advances) |
37.925 |
10.599 |
|
Disputed demands by Income Tax Authorities |
4.043 |
4.043 |
|
Amount paid there against |
4.043 |
4.043 |
|
Disputed demands by Sales Tax Authorities |
3.327 |
3.327 |
|
Amount paid under protest |
1.332 |
1.332 |
|
Claims against the Company not acknowledged as debts |
42.565 |
109.823 |
FIXED ASSETS:
- Freehold Land
- Leasehold Land and Land
- Development Expenses
- Factory Building
- Plants, Machineries and Equipments
- Furniture and Fixture
- Vehicles
- Office Equipments
- Electrical Installations
- Computers
- Office Premises
- R and D Building
- Brands
- Software
- Technical Know-how
NEWS:
WANBURY - ANNULLING EXTENSION OF
CURRENT ACCOUNTING YEAR
Wanbury Limited has informed BSE that the Board of Directors of the Company has decided to annual the extension of Company’s Current Accounting Year. Now the Company’s financial year will be period of 12 months from April 01, 2012 to March 31, 2013.
Therefore the Company will submit to Stock Exchange Annual Audited Financial
Results for 12 months from April 01, 2012 to March 31, 2013.
Intimation to this effect has already been given to the Office of Registrar of
Companies, Ministry of Corporate Affairs, 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 records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] 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.55.99 |
|
|
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.