MIRA INFORM REPORT

 

 

Report Date :

07.10.2013

 

IDENTIFICATION DETAILS

 

Name :

PARABOLIC DRUGS LIMITED

 

 

Registered Office :

SCO 99-100 Sector, 17-B, Chandigarh – 160 017, Chandigarh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

22.02.1996

 

 

Com. Reg. No.:

53-017755

 

 

Capital Investment / Paid-up Capital :

Rs.618.920 Millions

 

 

CIN No.:

[Company Identification No.]

L24231CH1996PLC017755

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients (API) and API intermediates.

 

 

No. of Employees :

Not Available

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (31)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 12030000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record.

 

However, trade relations are reported as fair. Business is active. Payment are reported to be slow.

 

The company can be considered for business dealings 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

 

 

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank =D

Rating Explanation

Default

Date

November 2012

 

Rating Agency Name

CARE

Rating

Short Term Bank =D

Rating Explanation

Default on Maturity

Date

November 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 :

SCO 99- 100, Sector 17-B, Chandigarh – 160 017, Chandigarh, India

Tel. No.:

91-172-5087671 / 5087672 / 28471234/ 3914646/ 647

Fax No.:

91-172-2721096/ 3914645

E-Mail :

sriram@parabolicdrugs.com

vipin.gupta@parabolicdrugs.com

parabolic@parabolicdrugs.com

athlanticpharma@sify.com

pradeep.jain@parabolicdrugs.com

Website :

http://www.parabolicdrugs.com

http://www.parabolicdrugs.co.in

 

 

Corporate Office :

SCO 99- 100, Sector 17-B, Chandigarh – 160 017, Chandigarh, India

Website :

http://www.parabolicdrugs.com

 

 

USA Office :

119 Watersedge Drive, Toms River, New Jersey - 08753

Tel No.:

+1-732-288-0851/ +1-848-333-8249/ +1-732-678-6362

 

 

Factory 1 :

Village Sundhran, P.O Mubarakpur, Tehsil Derabassi, District Mohali, Punjab, India

Tele fax No.:

91-1762-280305

 

 

Factory 2 :

Plot No. 45, Industrial Area, Phase-II, Panchkula, Haryana, India

Tel No.:

91-172-5057773

 

 

Factory 3 :

Village : Chachrauli, Tehsil : Derabassi, Distt.: Mohali, Punjab, India

 

 

Research and Development Centre :

Plot No. 280-281, Phase - 1, Block -1, HSIIDC, Tehsil Barwala, District Pachkula, Haryana, India

 

 

Sales Depot :

·         Godown No. 11, Baldev Estate, Opposite M.P Pandya High School, Jetpur (Aslali), Ahmedabad, Gujarat, India

 

·         Unit No. B-116, Shree Raj Laxmi Commercial Complex, Agra Road, Kalher Village : Bhiwandi, District: Thane, Maharashtra, India

 

·         Safex Cargo Complex, Village Kishanpura Nalagarh Road, Baddi, District: Solan, Himachal Pradesh, India

 

·         (Formulations Warehouse) 35 Feet Road, Near Cipla Warehouse, Zirakpur, District: Mohali, Punjab, India

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Pranav Gupta

Designation :

Chairman and Managing Director

Date of Birth/Age :

46 years

Qualification :

B. Tech(Mechanical), M.B.A.

Experience :

23 years

 

 

Name :

Mr. Vineet Gupta

Designation :

Whole-Time Director

Date of Birth/Age :

44 years

Qualification :

B. Tech (Mechanical)

Experience :

22 years

 

 

Name :

Mr. Balbir Singh Bhasin

Designation :

Nominee Director (SBI)

 

 

Name :

Mr. Arun Mathur

Designation :

Director

 

 

Name :

Mr. Nikhil Goel

Designation :

Director

 

 

Name :

Mr. Balwan Bansal

Designation :

Director

 

 

Name :

Dr. Ram Kumar

Designation :

Non Independent Director

 

 

Name :

Mr. Balwan Bansal

Designation :

Independent Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Yatish Kumar Bansal

Designation :

President (Technical)

 

 

Name :

Mr. R.C. Goyal

Designation :

Senior Vice-President (Finance)

 

 

Name :

Mr. Vipin Gupta

Designation :

Vice-President and Company Secretary

 

 

MAJOR SHAREHOLDERS

 

AS ON 30.06.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

Individuals / Hindu Undivided Family

1,652,250

2.67

Bodies Corporate

20,126,627

32.52

Any Others (Specify)

1,238,550

2.00

Trusts

713,400

1.15

Directors/Promoters & their Relatives & Friends

525,150

0.85

Sub Total

23,017,427

37.19

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

450,000

0.73

Sub Total

450,000

0.73

Total shareholding of Promoter and Promoter Group (A)

23,467,427

37.92

(1) Institutions

 

 

Mutual Funds / UTI

297,545

0.48

Financial Institutions / Banks

1,487,323

2.40

Foreign Institutional Investors

8,736,941

14.12

Sub Total

10,521,809

17.00

(2) Non-Institutions

 

 

Bodies Corporate

2,984,441

5.15

Individuals

-

-

Individual shareholders holding nominal share capital up to Rs.0.100 Million

8,868,327

14.41

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

6,957,949

11.50

Any Others (Specify)

6,636,327

14.03

Clearing Members

419,138

0.68

Non Resident Indians

749,705

1.21

Foreign Corporate Bodies

5,467,484

12.14

Sub Total

25,447,044

45.08

Total Public shareholding (B)

35,968,853

62.08

Total (A)+(B)

59,436,280

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued-m

0

0

(1) Promoter and Promoter Group

0

0

(2) Public

0

0

Sub Total

0

0

Total (A)+(B)+(C)

59,436,280

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Active Pharmaceutical Ingredients (API) and API intermediates.

 

 

Products :

ITC Code

Product Descriptions

3041

Cloxacillin Sodium

3041

Amoxcillin Trihydrate

3041

Ampicin Trihydrate

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

6-APA/ Semi Synthetic Penicillin

MT

N.A.

720

1693.78

Cephalosporin

MT

N.A.

818

431.17

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India (Specialised Commercial Branch), S.C.O.103-106, Bank Square, Sector 17 B, Chandigarh, India

·         ICICI Bank Limited, S.C.O. 129-130, Madhya Marg, Sector 9, Chandigarh, India

·         UCO Bank, S.C.O. 55-57, Bank Square, Sector 17 B, Chandigarh, India

·         State Bank of Patiala, S.C.O. 103-107, Sector 8 C, Chandigarh, India

·         Union Bank of India, 4/14-A, Asaf Ali Road, New Delhi, India

·         Central Bank of India, S.C.O. 58-59, Bank Square, Sector 17 B, Chandigarh, India

·         Bank of Baroda, S.C.O. 62-63, Bank Square, Sector 17 B, Chandigarh, India

·         IDBI Bank Limited, S.C.O. 72-73, Bank Square, Sector 17 B, Chandigarh, India

·         Canara Bank, S.C.O. 117-119, Sector 17 C, Chandigarh, India

·         Export-Import Bank of India, First Floor, PHD House, Sector 31 A, Dakshin Marg, Chandigarh, India

·         State Bank of Hyderabad, S.C.O. 62-63, Sector 34 A, Chandigarh, India

 

 

Facilities :

SECURED LOANS

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Term Loans from Banks

3892.080

1291.280

Short Term Borrowings

 

 

Working capital Loans from Banks:

 

 

--Cash Credit

3279.920

2150.290

--Buyer Credit

20.800

447.030

--Packing Credit

199.260

547.110

--Bills Discounted

0.000

257.930

Total

7392.060

4693.640

 

NOTE:

 

Terms of borrowings are as under:

Term Loans from Banks are secured by way 1st pari passu charge on all existing and future fixed assets of the Company at all locations with equitable mortgage of land and building, 2nd pari passu charge on all the current assets of the Company and pari passu charge on the collateral properties of M/s Parabolic Infrastructure P Limited, M/s PNG Trading P Limited and also personally guaranteed by Mrs. Rama Gupta, Mr. J. D. Gupta, Mr. T.N Goel, Mr. Pranav Gupta and Mr. Vineet Gupta.

 

Working Capital borrowings from Banks are secured by way of first pari passu charge on hypothecation of entire present and future current assets of the Company, Second pari passu charge on all fixed assets of the Company and pari passu charge on the collateral properties of M/s Parabolic Infrastructure P Ltd, M/s PNG Trading P Limited and also personally guaranteed by Mrs. Rama Gupta, Mr. J.D. Gupta. Mr. T. N. Goel, Mr. Pranav Gupta and Mr. Vineet Gupta

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S.K. Bansal and Company

Chartered Accountants

Address :

Kothi No. 3193,Sector 28 D, Chandigarh, India

 

 

Subsidiary with whom transactions have taken place during the Year :

·         Parabolic Research Lab Limited

·         Ziven Life Sciences Limited

 

 

Associates with whom transactions have taken place during the Year :

·         PNG Trading Private Limited

·         Parabolic Infrastructure Private Limited

·         Vineet Packaging Industries

·         Parabolic Estates Private Limited

·         Saj Infrastructure Private Limited

·         Trackball Technology Private Limited

·         Kenam Education Services Private Limited

·         Spar Engineering and Infrastructure Limited

·         Mohali Green Environment Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

62000000

Equity Shares

Rs. 10/- each

Rs. 620.000 Millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

61892014

Equity Shares

Rs.10/- each

Rs. 618.920 Millions

 

 

 

 

 

 

(a) Reconciliation of Number of Shares Outstanding

 

Particulars

31.03.2012

Equity Shares

Number

Amount

Shares outstanding at the beginning of current reporting period

61892014

618.920

Shares Issued & Subscribed during the Period

--

--

Shares Bought Back

--

--

Shares outstanding at the end of current reporting period

61892014

618.920

 

 

(b) Terms/ Rights Attached to Equity Shares

 

The Company has only One Class of Equity Shares having par value of Rs. 10 each. Each holder of Equity share is entitled to one vote per share with a right to receive per share dividend declared by the company. The company declares and pays dividend in Indian rupees. The Dividend proposed by Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting.

 

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of Equity shares held by the Shareholders.

 

 

(c) Detail of Shareholders Holding more than 5% Shares in the Company

 

Particulars

31.03.2012

 

Number

% Holding

PNG Trading Private Limited

14171836

22.90

Parabolic Infrastructure Private Limited

5935891

9.59

BTS India Private Equity Fund Limited

5467484

8.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

     31.03.2012

     31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

618.920

618.920

618.920

(b) Reserves & Surplus

2267.600

3665.210

3171.080

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

122.800

0.000

0.000

Total Shareholders’ Funds (1) + (2)

3009.320

4284.130

3790.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

4217.850

1459.330

922.680

(b) Deferred tax liabilities (Net)

(435.590)

116.940

97.530

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

30.290

30.870

21.050

Total Non-current Liabilities (3)

3812.550

1607.140

1041.260

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3548.660

3764.550

3590.960

(b) Trade payables

1238.620

2841.940

1773.780

(c) Other current liabilities

348.940

495.140

303.540

(d) Short-term provisions

0.000

150.870

172.970

Total Current Liabilities (4)

5136.220

7252.500

5841.250

 

 

 

 

TOTAL

11958.090

13143.770

10672.510

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3331.560

1875.110

1627.570

(ii) Intangible Assets

3.810

3.810

1.960

(iii) Capital work-in-progress

722.920

1872.880

1122.540

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

61.410

35.660

56.730

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

1821.200

1637.490

910.650

Total Non-Current Assets

5940.900

5424.950

3719.450

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3511.000

4517.320

3406.480

(c) Trade receivables

1385.860

2217.560

2751.580

(d) Cash and cash equivalents

120.940

346.200

256.570

(e) Short-term loans and advances

757.870

464.310

370.500

(f) Other current assets

241.520

173.430

167.930

Total Current Assets

6017.190

7718.820

6953.060

 

 

 

 

TOTAL

11958.090

13143.770

10672.510

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

7656.810

9243.440

6198.440

 

 

Other Income

31.120

40.770

153.450

 

 

TOTAL                                     (A)

7687.930

9284.210

6351.890

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials consumed

6927.440

8004.480

5410.890

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

761.140

(1041.330)

(897.820)

 

 

Employee benefit expenses

215.880

225.160

169.300

 

 

Other expenses

485.600

481.590

398.070

 

 

TOTAL                                     (B)

8390.060

7669.900

5080.440

 

 

 

 

 

Less

PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

(702.130)

1614.310

1271.450

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

697.770

641.370

407.600

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

(1399.900)

972.940

863.850

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION                     (F)

550.260

308.530

177.030

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                  (G)     

(1950.160)

664.410

686.820

 

 

 

 

 

Less

TAX                                                                  (H)

552.540

152.120

166.570

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-H)                    (I)

(1397.620)

512.290

520.250

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods (F.O.B)

1154.420

1212.460

1736.170

 

TOTAL EARNINGS

1154.420

1212.460

1736.170

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

933.480

1785.340

2592.230

 

 

Capital Goods

2.150

54.950

22.850

 

TOTAL IMPORTS

935.630

1840.290

2615.080

 

 

 

 

 

 

Earnings Per Share (Rs.)

(22.58)

8.27

9.43

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

Unaudited

 

 

 

1st Quarter

 Sales Turnover

994.800

 Total Expenditure

970.900

 PBIDT (Excl OI)

23.900

 Other Income

0.000

 Operating Profit

23.900

 Interest

200.000

 Exceptional Items

0.000

 PBDT

(176.100)

 Depreciation

170.400

 Profit Before Tax

(346.500)

 Tax

(107.000)

Provisions and Contingencies

0.000

 Reported PAT

(239.500)

Extraordinary Items      

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

(239.500)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(18.18)

5.52

8.19

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(25.47)

7.19

11.08

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(20.85)

6.92

8.00

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.65)

0.16

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.58

1.22

1.19

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.17

1.06

1.19

 

 

 

 

 

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

----------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------

26]

Buyer visit details

----------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

UNSECURED LOANS:

 

Particulars

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Due to others

325.770

168.050

Short Term Borrowings

 

 

Working Capital Loan from Banks

48.680

362.190

Total

374.450

530.240

 

 

INDEX OF CHARGE:

 

Sr.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10424936

29/05/2013 *

9,437,500,000.00

SBICAP TRUSTEE COMPANY LIMITED

202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA

B78294303

2

10370431

17/08/2012

150,000,000.00

UCO BANK

S.C.O. NO.55-56-57, SECTOR 17-B, CHANDIGARH, CHANDIGARH – 160 017, INDIA

B45638392

3

10326822

23/03/2012 *

300,000,000.00

EXPORT-IMPORT BANK OF INDIA

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE
COMPLEX,CUFFE PARADE, MUMBAI – 400 005, MAHARASHTRA, INDIA

B39549084

4

10331192

23/03/2012 *

180,000,000.00

STATE BANK OF HYDERABAD

S.C.O. 62-63, SECTOR 34, CHANDIGARH, CHANDIGARH – 160 022, INDIA

B37416542

5

10315599

15/10/2011

493,600,000.00

STATE BANK OF PATIALA

S.C.O.103-107, SECTOR 8 C, CHANDIGARH, CHANDIGARH – 160 008, INDIA

B24512949

6

10315603

15/10/2011

850,000,000.00

STATE BANK OF PATIALA

S.C.O.103-107, SECTOR 8 C, CHANDIGARH, CHANDIGARH – 160 008, INDIA

B24514309

7

10297720

23/03/2012 *

270,000,000.00

IDBI BANK LIMITED

S.C.O. 72-73, BANK SQUARE, SECTOR 17 B, CHANDIGARH, CHANDIGARH – 160 017, INDIA

B37382066

8

10265266

11/02/2011

320,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA – 390 015, GUJARAT, INDIA

B05639539

9

10265029

04/02/2011

250,000,000.00

UCO BANK

S.C. O. 55-56-57, SECTOR - 17 B, CHANIDGARH, CHANDIGARH – 160 017, INDIA

B05426481

10

10204139

05/05/2012 *

5,976,800,000.00

STATE BANK OF INDIA

SPECIALISED COMMERCIAL BRANCH, S.C.O. 103-106, SECTOR 17 B, CHANDIGARH, CHANDIGARH – 160 017, INDIA

B40143174

 

* Date of charge modification

 

 

FINANCIAL ANALYSIS AND REVIEW OF OPERATIONS:

The directors are pleased to report performance of the business operations as follows:-

 

Sales and Export:

During the year subject has registered a turnover of Rs.8280.690 millions as compared to Rs.10123.080 millions in the previous year showing thereby a decrease of 18.20%. The Export turnover has also been lower at Rs.1182.940 millions as compared to Rs.1478.170 millions in the previous year showing thereby a decrease of 19.97%. The Sales have reduced largely on account of rapid selling price volatility and unavailability of sales of few products due to high cost of import on account of rupee depreciation.

 

Profitability:

Subject incurred loss before depreciation, interest and tax (EBDIT) of Rs. (1084.490) millions as compared to a profit of Rs.1406.320 millions in the previous year. Subject incurred loss before tax (PBT) of Rs. (1950.160) millions as compared to a profit of Rs664.410 millions in the previous year. After tax adjustment of Rs.552.540 millions (previous year Rs.152.290 millions), the net loss worked out to Rs.(1397.620) millions as compared to a net profit of Rs.512.120 millions in the previous year owing to the high interest rates, revaluation of semi finished stock because of the quality and eroded market prices.

 

Fixed Assets:

The net fixed assets (including work-in-progress) as at 31st March, 2013 were Rs.4058.290 millions as compared to Rs.3751.810 millions in the previous year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

 

Global pharmaceutical industry:

Snapshot- Transforming wave towards the Generics

 

The transformation of the global pharmaceutical market continues unabated, with focus steadily shifting from developed to developing countries and from patented drugs to generics. The overall pharmaceutical market is anticipated to reach US$ 1.1 trillion by 2014 (Source: IMS Data).The US is the major pharmaceutical market in the world growing at a CAGR of around 3%. It is also the largest generic market with a sizeable generic substitution (75% in terms of volume). During the year 2011-12, the contribution of the US to the global pharmaceutical has been about 20%. However, this share is likely to come down as the transition is on its way. The European Union , primarily the EU5(German, France, Italy, Spain and UK) markets have registered growth of 1-3% in 2011-12 and are poised to grow at an average CAGR of 2.5% till 2016 and achieve sales up to US$ 220 billion. In most of the European countries a considerable share of health care expenditure is public expenditure and there have been significant regulatory changes over the past years on account of austerity measures and attempts to reduce health care expenditure. Thus, the EU markets are also focussing on ‘genericization’ in order to bring down the health care costs. Japan, the second largest single country pharmaceutical market is registering a growth of 5.7%. The overall Japanese Pharmaceutical Industry is projected to grow at a CAGR of 2.6% from 2012- 2016. Owing to the pressure of reducing the cost of health care, this market has also opened up and is poised to give new opportunities for the generic companies to cater the needs.

 

During the next five years, the markets will be impacted by numerous payer actions, including the imposition of price cuts on existing drugs, the raising of standards required to achieve reimbursement of innovative therapies and the use of economic incentives for prescribers and pharmacists to drive a shift to generic equivalents.

The following transitions are likely to drive the pharmaceutical markets for the coming years:

 

Emergence of the ‘Pharmerging ‘markets:

The 17 ‘Pharmerging’ countries (India, China, Brazil, Venezuela, Poland, Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan, Ukraine and Russia.) are expected to contribute 28% to global pharmaceutical spending by 2015. These countries registered a growth of 15-17% in the previous year to reach a market value of ~US$ 170-200 billion. Drugs with sales of more than $30 billion USD faced generic competition in 2012 with Lipitor accounting for $11 billion USD. Government will continue to try to reduce drug costs.

 

The dynamic and high-potential pharmerging markets offer tremendous opportunities for drug manufacturers. Big Pharma’s drive into a group of high-potential “pharmerging” markets has continued to gather momentum. The market research organization IMS Health categorizes the market in Tier 1, Tier 2 and Tier 3 pharmerging markets. Collectively, these markets have been steadily gaining share at the expense of the US and top five European countries (France, Germany, Italy, UK and Spain).In India a number of recent developments, such as establishment of intellectual property rights (IPR), a rapidly growing middle-class population, emerging rural markets and improvements in medical infrastructure have benefitted outside manufacturers.

 

Patent cliff to continue playing the key role:

Patent cliff describes what happens to the sales of an original drug when its protection (patent, regulatory, etc.) ceases. There is a dramatic drop in sales both due to the declining unit numbers and also due to the price erosion of up to 70 percent within months. Patent cliff will fundamentally impact individual pharma companies in the mid-term future; however it gives an opportunity to excel through innovation in the alternative generic products.

 

Growing regulatory pressures:

The FDA Amendments Act of 2007 has forced the FDA to increase standards for approvals of new drugs, introducing mandatory risk evaluation and mitigation strategies (REMS). This is one example of a long-term, global trend of ever higher hurdles for new drugs to be approved with the corresponding high failure rates and costs associated. Although the greater cooperation between the regulators in different markets will ultimately be advantageous for the pharma industry as a whole due to the streamlining of the development and approval requirements and the reduction in the costs, in the near term it could cause spread of approval restrictions around markets.

 

 

REORGANIZATION OF BUSINESS AND FUTURE OUTLOOK:

 

The Company has already taken steps to move up the value chain and exit low profitable sections of business. It has built relationships and intellectual wealth over the past few years and it is expected that it would be able to leverage them successfully to move out of the present situation. It still believes that the pharmaceutical industry is attractive and there is a potential for future growth and sustainability.

The revamping of the business will be driven by:

 

Consolidation of Antibiotic business:

The Company is making an exit from the less profitable and low margin business in a phased manner and will primarily focus on exports. The following are some of the steps already taken by the Company for attaining its objectives:

 

1.     Long term supply agreements with the leading innovator and Japanese companies as to augment the exports

 

2.     Audit check from the European authorities for the sterile range of products. With such developments taking     place, the   Company expects to build exports further.

 

3.     Anticipated inspection from the USFDA for some of the cephalosporin products

 

Scale up of Non antibiotics & Formulations:

 

1.     In the lifestyle drugs, the validation and development activities have already been initiated with various companies around the world; these are likely to add revenues to the export markets.

 

2.     Since the launch of the CRAMS vertical, the Company has been providing integrated solutions to leading innovator and generic companies ranging from route selection, process development, and optimization to manufacturing. Its expertise also involves providing engineering solutions for manufacturing at multi-ton scale. The developments in the CRAMS space will scale up at the Lalru facility

 

3.     Further, Nucleus, the domestic formulations arm of Parabolic that was launched in FY 2012 is gaining momentum in terms of adding revenue and margins to the Company. The division as on date has pan-India presence with over 550 stockiest, 26 distributors and a basket of over 300 products. Going forward, the division looks to build on the successful launch of products, market penetration, and reception. In the International Formulations, the Company has filed over 50 brands across different countries, submitted over 100 dossiers and finalized distribution agreements with different companies in APAC.

 

Keeping in view the current challenges and with the purpose of translating the Company’s strengths into opportunities, the Company’s future strategy is broadly the consolidation of its existing businesses and making leverage of the capital expansions already set in place.

 

 

COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE:

This report on Corporate Governance forms part of the Annual Report. Corporate Governance refers to a combination of laws, regulations, procedures, implicit rules and good corporate practices that ensure that a Company meets its obligations to optimize shareholders’ value and fulfill its responsibilities towards the community, customers, employees, Government and other segments of the society. Parabolic Drugs Limited (Parabolic) is committed on adopting the best practices of Corporate Governance as manifested in the Company’s functioning to achieve the business excellence by enhancing long-term shareholders’ value. Parabolic is committed to achieve the best standards of Corporate Governance through complete transparency in its dealings with the management, associate companies and other third parties. The Management of Parabolic understands its accountability and responsibility towards its shareholders/investors, regulatory authorities and also for other sections of the society.

 

 

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED, 30TH JUNE 2013

 

Registered Office: SCO. 99 - 100, Top Floor, Sector - 17B, Chandigarh

Unaudited Financial Results for the Quarter Ended 30th June, 2013   

  (Rs. In Millions)

Particulars

Three months

ended 30/06/2013

 

Unaudited

 

Stand-alone

Income from Operations

 

Gross Sales

978.200

Less : Excise Duty

(14.700)

(a) Net Sales/Income from Operations (Net of excise duty)

 

963.500

(b) Other Operating Income

31.300

Total Income from Operations (net)

994.800

Expenses

 

(a) Cost of Materials Consumed

926.200

(b) Changes in inventories of finished goods, work-in-progress and stock-in-trade

 

(79.600)

(c ) Employee Benefits Expense

39.100

(d) Depreciation and Amortisation Expense

170.400

(e) Other Expenses (Any item exceeding 10% of the total expenses relating to continuing operations to be shown separately)

85.200

Total Expenses

1141.300

Profit/(Loss) from Operations before Other Income, Finance Costs & Exceptional Items (1 - 2)

(146.500)

Other Income

 

Profit/(Loss) from ordinary activities before finance costs and exceptional items (3 + 4)

(146.500)

Finance Costs

200.000

Profit/(Loss) from ordinary activities after finance costs but before exceptional items (5-6)

(346.500)

Exceptional Items

-

Profit /(Loss) from Ordinary Activities before tax (7 + 8)

 

(346.500)

Tax expense

(107.000)

Net Profit/(Loss) from Ordinary Activities after tax (9 - 10)

 

(239.500)

Extra Ordinary Items (net of tax expense)

-

Net Profit / (Loss) for the period (11-12)

(239.500)

Share of Profit/(Loss) of Associates

-

Minority Interest

-

Net Profit/(Loss) after taxes, minority interest and share of profit/(loss) of Associates (13 +14 + 15)

(239.500)

Paid-up equity share capital (Face Value of the Share shall be indicated) (Rs. 10/- each)

 

618.900

Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

-

Earnings Per Share (EPS) (before extraordinary items) -Shares of Rs. 10/- each (not annualised)

 

(a) Basic

-

(b) Diluted

-

Earnings Per Share (EPS) (after extraordinary items) -Shares of Rs. 10/- each (not annualised)

 

(a) Basic

-

(b) Diluted

-

PARTICULARS OF SHAREHOLDING

 

Public Shareholding :

 

- Number of Shares

38424587

- Percentage of Shareholding

62.08

Promoters and Promoter Group Shareholding :

 

(a) Pledged/Encumbered

 

- Number of shares

22162807

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

94.4

- Percentage of shares (as a % of the total share capital of the company)

 

35.81

(b) Non-Encumbered

 

- Number of shares

1304620

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

5.56

- Percentage of shares (as a % of the total share capital of the company)

 

2.11

 

 

NOTES:

 

1.     The above quarterly results have been reviewed by the Audit Committee and taken on record by the Board of Directors in their meeting held on 10th August, 2013 and the same have been limited reviewed by the statutory Auditors, as required under Clause 41 of the Listing Agreement.

2.     During the period, subject has incurred loss. Owing to the tightened market conditions and economic stress, subject has witnessed erosion in the margins of key products.

3.     The promoter’s shareholding has been pledged pursuant to the terms of CDR package.

4.     There is not more than one reportable segment; hence, information as per AS-17 is not required to be disclosed.

5.     Figures of the previous year / period have been rearranged/ regrouped wherever necessary.

 

 

FIXED ASSETS:

 

Tangible Assets:

·         Land and Site Development

·         Factory Building

·         Non Factory Building

·         Plant and Machinery

·         Furniture and Fixture

·         Tube well

·          Vehicles

·         Computers and Peripherals

·         Research and Development Fixed Assets

 

 

Intangible Assets:

·         Computer Software

·         Patents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.61.41

UK Pound

1

Rs.99.29

Euro

1

Rs.83.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NKT

 


 

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

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

31

 

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

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.