MIRA INFORM REPORT
|
Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
AHLCON PARENTERALS (INDIA) LIMITED |
|
|
|
|
Registered
Office : |
Unit No. 201-205, 2nd Floor, ND Mall 1, Plot No. 2-4, Wazirpur
District Centre, Netaji Subhash Place New Delhi – 110034 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
20.01.1992 |
|
|
|
|
Com. Reg. No.: |
55-047245 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 81.001
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24239DL1992PLC047245 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELA12317E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA1112C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Pharmaceutical Intravenous Fluids and Opthalmics/Ear drops. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2100000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track record. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 facilities: 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 : |
Unit No. 201-205, 2nd Floor, ND Mall 1, Plot No. 2-4,
Wazirpur District Centre, Netaji Subhash Place New Delhi – 110034, India |
|
Tel. No.: |
91-11-42344234/ 42344218 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
SP-917 and 918, Phase - III,RIICO Industrial Area, District Alwar, Bhiwadi 301019 Rajasthan, India |
|
Tel. No.: |
91-1493-225304-07 |
|
Fax No.: |
91-1493-221045 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Anand Chandrashekhar Apte |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr Arun Mudgal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Manfred Gregor Mahrle |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arun Kumar Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S.C.L. Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. S.S. Arora |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ranjan Kumar Sahu |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
% of total No.
of Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
5400112 |
75.00 |
|
|
5400112 |
75.00 |
|
Total shareholding of
Promoter and Promoter Group (A) |
5400112 |
75.00 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
431511 |
5.99 |
|
|
|
|
|
|
443312 |
6.16 |
|
|
922644 |
12.81 |
|
|
2571 |
0.04 |
|
|
122 |
0.00 |
|
|
2449 |
0.03 |
|
|
1800038 |
25.00 |
|
Total Public
shareholding (B) |
1800038 |
25.00 |
|
Total (A)+(B) |
7200150 |
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) |
7200150 |
0.00 |
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BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Pharmaceutical Intravenous Fluids and Opthalmics/Ear drops. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
I. V. Fluids |
Nos. in Lacs |
$ 450 |
*342.69 |
|
Injectable |
Nos. in Lacs |
1440 |
**999.09 |
Notes:
$ Includes capacity
of 130 lacs nos. added w.e.f. 1st September, 2010.
* Includes 147.70
lac bottles on job basis.
** Includes 654.65 lac vials on job basis.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Arun K. Gupta and Associates Chartered Accountants |
|
Address : |
D-58, East of
Kailash, New Delhi – 110065, Delhi, India |
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Parent of Ultimate
Holding Company: |
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Holding company: |
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Ultimate holding
company: |
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Immediate Holding
company: |
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Enterprises under
Common Control: |
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|
Enterprises under common control: |
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|
Enterprises over which key managerial personal is
able to exercise significant influence : |
|
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000 |
Equity Shares |
Rs.10/- each |
Rs. 110.000 Millions |
|
7000000 |
Preference Shares |
Rs. 10/- each |
Rs. 70.000 Millions |
|
|
|
|
Rs. 180.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7200150 |
Equity Shares |
Rs.10/- each |
Rs. 72.001
Millions |
|
900000 |
6% Redeemable Cumulative Preference Shares |
Rs.10/- each |
Rs. 9.000
millions |
|
|
|
|
Rs. 81.001 Millions |
Reconciliation of the
number of shares and amount outstanding at the beginning and at the end of the
reporting period:
|
Particulars |
As on 31.03.2013 |
|
|
Numbers of
Shares |
Rs. In Millions |
|
|
Equity Shares |
|
|
|
At the beginning of the year |
7200150 |
72.001 |
|
Add: Shares issued during the year |
-- |
-- |
|
Outstanding at the end of the year 6% Redeemable Cumulative Preference Shares |
7200150 |
72.001 |
|
|
|
|
|
At the beginning of
the year |
900000 |
9.000 |
|
Add: Shares issued
during the year |
-- |
-- |
|
Outstanding at the end of the year |
900000 |
9.000 |
Terms / rights /
preferences and restrictions attached to the each class of shares
(i) Terms/ rights attached to Equity Shares
The Company has fully paid up equity shares having a par value of Rs 10/– per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupee.
During the year ended March 31, 2013, no dividend was paid / distributed to Equity Shareholders (Previous year Final Dividend Rs 1.50 per share for 2010–11and Interim dividend Rs 1.00 per share for 2011–12)
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. This distribution will be in proportion to the number of equity shares held by the shareholders.
(ii) Terms/ rights attached to Preference Shares
The Company has fully paid up 6% Redeemable cumulative preference shares having a par value of Rs 10/– per share. Each holder of redeemable preference shares entitled to one vote per share only on resolutions placed before the company which directly affect the rights attached to redeemable preference shares. The Company declares and pays preference dividend in Indian rupee.
The preference shares are non–convertible and non – participatory and are redeemable at par by way of a put and call options at any time after a period of two years from the date of their allotment i.e. 28.10.2006 by giving one month prior notice either by the Company or by preference shareholders.
During the year ended March 31, 2013, neither company nor preference shareholders have exercised the call / put option.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
81.001 |
81.001 |
81.001 |
|
(b) Reserves & Surplus |
468.850 |
340.996 |
299.998 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
549.851 |
421.997 |
380.999 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
29.163 |
70.145 |
113.333 |
|
(b) Deferred tax liabilities (Net) |
58.165 |
63.801 |
63.267 |
|
(c) Other long term liabilities |
2.192 |
0.801 |
0.000 |
|
(d) long-term provisions |
4.843 |
3.910 |
2.557 |
|
Total Non-current
Liabilities (3) |
94.363 |
138.657 |
179.157 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
100.938 |
116.436 |
91.148 |
|
(b) Trade payables |
93.814 |
67.586 |
55.862 |
|
(c) Other current liabilities |
94.734 |
78.889 |
85.194 |
|
(d) Short-term provisions |
13.352 |
7.362 |
13.894 |
|
Total Current
Liabilities (4) |
302.838 |
270.273 |
246.098 |
|
|
|
|
|
|
TOTAL |
947.052 |
830.927 |
806.254 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
462.689 |
496.840 |
499.891 |
|
(ii) Intangible Assets |
2.286 |
2.956 |
3.506 |
|
(iii) Capital work-in-progress |
77.267 |
31.903 |
24.921 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
16.637 |
28.439 |
17.959 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
3.585 |
|
Total Non-Current
Assets |
558.879 |
560.138 |
549.862 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
100.900 |
97.371 |
76.202 |
|
(c) Trade receivables |
256.949 |
129.981 |
145.694 |
|
(d) Cash and cash equivalents |
5.800 |
19.037 |
12.055 |
|
(e) Short-term loans and advances |
15.838 |
15.121 |
18.540 |
|
(f) Other current assets |
8.686 |
9.279 |
3.901 |
|
Total Current Assets |
388.173 |
270.789 |
256.392 |
|
|
|
|
|
|
TOTAL |
947.052 |
830.927 |
806.254 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1077.060 |
797.028 |
624.337 |
|
|
|
Other Income |
8.958 |
9.078 |
5.402 |
|
|
|
TOTAL (A) |
1086.018 |
806.106 |
629.739 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
392.669 |
310.571 |
233.375 |
|
|
|
Purchases of Stock–in–Trade |
0.197 |
0.145 |
11.897 |
|
|
|
Changes in Inventories of Finished Goods, Work–in– Progress and Stock–in–Trade |
26.305 |
(13.893) |
(13.422) |
|
|
|
Employee Benefits Expense |
145.698 |
130.403 |
104.423 |
|
|
|
Other Expenses |
268.675 |
235.585 |
174.998 |
|
|
|
TOTAL (B) |
833.544 |
662.811 |
511.271 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
252.474 |
143.295 |
118.468 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
29.537 |
36.991 |
24.709 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
222.937 |
106.304 |
93.759 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
36.051 |
33.960 |
28.931 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
186.886 |
72.344 |
64.828 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
58.190 |
22.351 |
21.907 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
128.696 |
49.993 |
42.921 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
263.241 |
228.244 |
204.547 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
6.000 |
6.000 |
|
|
|
Dividend |
0.000 |
0.000 |
1.794 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
10.800 |
|
|
|
Tax on Interim Dividend on Equity Shares |
0.000 |
1.168 |
0.000 |
|
|
|
Interim Dividend on Preference Share |
0.000 |
0.405 |
0.000 |
|
|
|
Proposed Final Dividend on Preference Shares |
0.540 |
0.135 |
0.540 |
|
|
|
Tax on Interim Dividend on Preference Shares |
0.000 |
0.066 |
0.000 |
|
|
|
Tax on Proposed Dividend on Preference Shares |
0.081 |
0.022 |
0.090 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
7.200 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
391.316 |
263.241 |
228.244 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
259.820 |
151.909 |
67.041 |
|
|
|
Trade Discount |
5.136 |
2.805 |
0.000 |
|
|
TOTAL EARNINGS |
264.956 |
154.714 |
67.041 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
198.009 |
145.911 |
85.453 |
|
|
|
Stores & Spares |
3.963 |
1.562 |
10.085 |
|
|
|
Capital Goods |
0.000 |
0.000 |
92.171 |
|
|
TOTAL IMPORTS |
201.972 |
147.473 |
187.709 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.79 |
6.94 |
5.87 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st Quarter |
|
Audited / Unaudited |
Unaudited |
|
Net Sales |
287.400 |
|
Total Expenditure |
202.500 |
|
PBIDT (Excl OI) |
84.800 |
|
Other Income |
1.900 |
|
Operating Profit |
86.700 |
|
Interest |
5.100 |
|
Exceptional Items |
0.000 |
|
PBDT |
81.700 |
|
Depreciation |
8.700 |
|
Profit Before Tax |
73.000 |
|
Tax |
22.800 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
50.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
50.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
11.86 |
6.20 |
6.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.35 |
9.08 |
10.38 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
21.49 |
9.06 |
8.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33 |
0.17 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.23 |
0.44 |
0.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28 |
1.00 |
1.04 |
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 LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Short term
borrowings |
|
|
|
Credit facility from a bank |
34.087 |
0.000 |
|
|
|
|
|
Total |
34.087 |
0.000 |
|
Note:
Unsecured Short Term facility for Rs. 400.000 millions from Deutsche Bank is received under ‘Master Arrangement Letter of Credit Facilities’ dated 1st December 2010 between B. Braun Melsungen AG and Deutsche Bank AG, Mumbai supported by B. Braun Melsungen AG as Security party and Demand Promissory Note for INR Rs. 400.000 millions. |
||
OPERATIONAL
PERFORMANCE
Operational Performance of the company as it has continued to surpass all its previous since inception and has achieved a sales turnover of Rs.1077.000 millions as compared to the previous year sales turnover of Rs.797.000 millions thereby registering a growth of 35%. The Company’s Net Profit has recorded substantial growth of 157.42% by scaling up from the previous year figure of Rs. 49.993 millions to Rs.128.696 millions.
Directors are putting constant thrust on productivity, enhancement, cost optimization and customer satisfaction by producing their quality products enabling continuous growth track, in the Operational results of the Company
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
OVERVIEW INDIAN
PHARMA INDUSTRY
The Indian market offers unique advantages. India is one of the biggest democratic country for last 65 years in this globe. It has an educated workforce and English is the language of business in addition to Hindi, the basic national Language. It has a strong legal framework and strong financial markets. Professional services are easily available. There is already an established industry and international trade. It has a good network of educational institutions and world–class strengths in information technology. Indian participant players in the pharmaceutical industry in the future may continue to face the future with confidence. There are enormous opportunities for pharmaceutical players both nationally and globally, but the possibilities are challenges to be overcome to achieve sustainable growth in the future. The future is very promising with a lot of progress in the way the Indian pharmaceutical industry perceives.
India is now among the top five pharmaceutical emerging markets. The Indian pharma industry has been growing at a compounded annual growth rate (CAGR) of more than 15 per cent over the last five years and has significant growth opportunities.
The Indian pharmaceutical sector is expected to grow five–fold to reach Rs 5 lakh crore (US$ 91.45 billion) by 2020, as per, Department of Pharmaceuticals. The industry, particularly, has been the front runner in a wide range of specialties involving complex drugs’ manufacture, development, and technology. With the advantage of being a highly organized sector, the numbers of pharmaceutical companies are increasing their operations in India.
The pharmaceutical industry in India is an extremely fragmented market with severe price competition and government price control. The industry meets around 70 per cent of the country’s demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals, and injectables
OVERVIEW AHLCON
Subject is one of the leading manufacturing Company in the Indian Pharmaceutical Industry. The Company’s revenues are mainly from Contract Manufacturing, Institutional sales and ethical sale of branded–generic and unbranded–generic manufactured pharmaceutical products. A further break down of pharmaceutical sales can be done as, Domestic formulations (comprising branded pharmaceuticals formulations sold in the domestic market), Contract manufacturing (comprising sourcing, manufacturing and supplying pharmaceutical formulations to giant pharma company under their brand name) and direct export to International market comprising exports of branded and generic manufactured pharmaceutical formulations. The operating costs primarily comprise raw and packing materials, purchase of finished goods, staff cost, selling and marketing expenses, manufacturing, Research and Development expenses and general overheads.
OUTLOOK ON THREATS,
RISK AND CONCERNS
GOVERNMENT
INITIATIVES
FDI, up to 100 per cent, under the automatic route, would continue to be permitted for Greenfield investments in the Pharmaceuticals sector. 100 Per cent FDI is also permitted for Brownfield investment (i.e. investments in existing companies), under the Government approval route.
According to the Union Budget 2013–14, investment allowance of 15 percent on new plant and machinery has been allowed. The allowance is expected to increase investments in new projects while simultaneously providing tax benefit to the industry.
The Department of Pharmaceuticals has prepared a ‘Pharma Vision 2020’ document for making India one of the leading destinations for end–to–end drug discovery and innovation and for that purpose, the department provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R and D), venture fund for research in the public and private domain and such other measures.
NEW DRUG PRICING
POLICY
Recently, the Government of India cleared the way for the much awaited National Pharmaceutical Pricing Policy 2012. Unlike the current cost based pricing policy, this new policy is market based, and seeks to control prices of all strengths and dosages of 358 drugs and their combinations falling into the National List of Essential Medicines (NLEM). The price control will also be applicable to imported medicines, if these drugs also fall in the list of essential medicines.
In order to promote indigenous research, prices of original research products having a patent in India will be exempt from price control for five years. The ceiling price will be computed using the simple average method of all drugs with over 1% market share under a particular therapeutic area. The government is already amend the New Drug Price Control Order (DPCO) 2013.
The policy document on the website of the Department of Pharmaceuticals says that manufacturers will be free to fix any price for their products equal to or below the ceiling price. The controlled price will be revised every five years or as and when the NLEM is updated or revised. If there is a significant change in the market structure of a product, the government may revise the ceiling price even earlier.
The policy also allows an annual price increase of up to 10% for non– NLEM products, though the prices of existing price–controlled products not included in the NLEM 2011 will be frozen for one year and thereafter they will be allowed increases of up to 10% a year. The Department of Pharmaceuticals will monitor production and availability of all NLEM products. According to various industry analysts, the estimated impact of the proposed pricing policy on the top line drugs will be in the range of 3– 10% price cuts.
PHARMACEUTICALS
PRICING
One of the very serious concerns for the Pharmaceuticals division is Government regulation of prices of medicines and mounting pressure to reduce drug prices. The control extends two ways with the first being on the cost of inputs i.e raw materials, packing materials where the Government determines the fixation of prices and the second being the conversion cost and packing cost which is yet again decided by the Government on the basis of studies carried out by them. The domestic market is subject to price control under DPCO, 1995. More and more products are being added to the list of controlled products and thereby, the profit margins could be significantly affected. The Company manages its product portfolio, product mix and value added products, so as to move away, reduce and minimize the product weightage of drugs under price control.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF: –
(Rs. In Millions)
|
Sr. No. |
Particulars |
As on 31.03.2013 |
|
|
Excise duty pending hearing of appeals / writ petitions. |
|
|
|
Cenvat credit on photocopy of the invoice disallowed |
0.620 |
|
|
Penalty Cenvat credit on photocopy of the invoice disallowed |
0.620 |
|
|
Reversal of modvat on material distroyed |
0.104 |
|
|
Demand on excise duty on phigician samples |
1.668 |
|
|
Service Tax |
|
|
|
i Reversal of cenvat credit availed on input services |
-- |
|
|
ii Demand on import of services |
-- |
|
|
Penalty and interest on Service tax on import of services |
0.906 |
|
|
Service tax on import of services |
-- |
|
|
Irregular cenvat credit on outward freight |
0.180 |
|
|
Value Added Tax – declaration forms pending submission |
0.311 |
|
|
Worker reinstatement pending be for assistant commissionar labour law Alwar. |
1.500 |
|
|
Bank Guarantees |
31.935 |
|
|
Claims against the Company not acknoledged as debts |
0.041 |
|
|
Duty exemption availed on import of machinery under EPCG Scheme |
3.168 |
Based on favourable decisions in similar cases discussions with the solicitors etc, the Company believes that there is fair chance of decisions in its favour in respect of all the items listed in (a) to (d) above and hence no provision is considered necessary against the same.
i. National Pharmaceutical Pricing Authority (NPPA) vide its orders, letter F. No. 21 (807)07/DW IV /NPPA dated 03/09/2008; subsequent letters dated 24/11/2008, 01/05/2009, 08/11/2010, 06/02/2012 and in continuation letter dated 05/04/2013 have raised a demand of Rs. 60.192 millions being excess amount charged from consumers of product Ciplox, over and above price as per norms under DPCO, 1995, manufactured by us on behalf of CIPLA Limited, along with interest thereupon, amounting to Rs. 66.413 millions (previous year Rs. 55.900 millions) thereby aggregating to Rs. 126.606 millions (Previous year Rs. 116.092 millions)
ii. Capital Commitments:– Capital contracts remaining to be executed ( net of advances ) and not provided for Rs. 32.959 millions (previous year Rs. 11.909 millions)
UNAUDITED FINANCIAL
RESULTS FOR THE THREE MONTH ENDED 30TH JUNE, 2013
(Rs. In Millions)
|
Sr. No. |
Particulars |
As on 30.06.2013 (Unaudited) |
|
1 |
Income from
Operations |
|
|
a |
Net Sales/Income from Operations (Net of Excise Duty) |
282.954 |
|
b |
Other Operating Income, |
4.424 |
|
|
Total income from
Operations (Net) |
287.378 |
|
|
|
|
|
2 |
Expenses |
|
|
a |
Cost of Materials consumed |
108.008 |
|
b |
Purchases of stock-in-trade |
-- |
|
c |
Changes In inventories o' finished goods, work-.n-progress arid stock-in-trade |
(8.647) |
|
d |
Employee benefits expense |
39.906 |
|
e |
Depreciation and amortization |
8.698 |
|
f |
expense Power & Fuel Expenses |
25.374 |
|
g |
Other expenses |
37.888 |
|
|
Total Expenses |
211.227 |
|
|
|
|
|
3 |
Profit from operations
before other Income, finance costs and exceptional items (1-2) |
76.151 |
|
4 |
Other Income |
1.885 |
|
5 |
Profit from
ordinary activities before finance costs and exceptional items (3- 4) |
78.036 |
|
6 |
Finance costs |
5.054 |
|
7 |
Profit from
ordinary activities after finance costs but before Exceptional Items (5 – 6) |
72.982 |
|
8 |
Exceptional Items |
-- |
|
9 |
Profit from
ordinary activities before tax (7 - 8) |
72.962 |
|
10 |
Tax expense ( Met) |
22.819 |
|
11 |
Net Profit from ordinary
activities after tax (9-10) |
50.163 |
|
12 |
Extraordinary items |
-- |
|
13 |
Net Prof it for the
period (11-12) |
50.163 |
|
14 |
Paid-up equity share capital (Face Value Rs. 10 each/share) |
72.001 |
|
15 |
Reserve excluding Revaluation Reserve |
|
|
16 |
Earnings per share |
|
|
|
(Of Rs. 10/- each) (not annualized| |
|
|
a |
Basic |
6.95 |
|
b |
Diluted |
6.95 |
|
|
|
|
|
A |
Particulars of
Sharer holding |
|
|
1 |
Public Shareholding |
|
|
|
No of Shares |
1800038 |
|
|
Percentage of Shareholding |
25.00% |
|
2 |
Promoters and Promoter Group Shareholding *" |
|
|
a |
Pledged/Encumbered |
|
|
|
Number of Shares |
0 |
|
|
Percentage of Shares (as a % of the total shareholding of the promoter and promoter group) |
0 |
|
|
Percentage of Shares (as a % of the total share capital of the company) |
0 |
|
b |
Non-encumbered |
|
|
|
Number of Snares |
5400112 |
|
|
Percentage of Shares (as a % of the total shareholding of the promoter and promoter group) |
100% |
|
|
Percentage of Shares (as a % of the total share capital of the company) |
75.00% |
|
INVESTOR COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed of during the quarter |
2 |
|
Re naming unresolved at the end c' the Quarter |
Nil |
Notes:
- The activities of the Company relate to single segment i e. pharmaceuticals business segment and has only one reportable segment Revenue by geographical segment is shown below '
- Previous year /figures have been regrouped, and / or rearranged, wherever considered necessary to make than comparable with current period figures classification.
- The statutory auditors of the company have carried out a limited review of results for the quarter ended on 30.06 2013
- The above results have been reviewed by the Audit Committee. Approved and taken on record byjhe Board at its meeting held on 12th August 2013
|
Particulars |
Three Months Ended 30.06.2013 |
|
Revenue within India |
2224.20 |
|
Revenue outside India |
609.34 |
|
Total |
2829.54 |
Carrying amount of segment assets (Debtors) by geographical location of assets.
|
Receivables within India |
2702.36 |
|
Receivables outside India |
343.93 |
|
Segment Liabilities outside India (From Customers) |
(137.75) |
|
|
2908.54 |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10214301 |
02/09/2011 * |
130,000,000.00 |
PUNJAB AND SIND BANK |
H BLOCK, CONNAUGHT CIRCUS, NEW DELHI, NEW DELHI, DELHI - 110001, INDIA |
B20448411 |
|
2 |
10214302 |
02/09/2011 * |
358,500,000.00 |
PUNJAB AND SIND BANK |
H BLOCK, CONNAUGHT CIRCUS, NEW DELHI, NEW DELHI, DELHI - 110001, INDIA |
B20339180 |
|
3 |
10214298 |
25/03/2010 |
40,000,000.00 |
PUNJAB AND SIND BANK |
H BLOCK, CONNSUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA |
A83400242 |
|
4 |
10214300 |
25/03/2010 |
211,100,000.00 |
PUNJAB AND SIND BANK |
H BLOCK, CONNSUGHT CIRCUS, NEW DELHI, DELHI - 110001, INDIA |
A83400390 |
|
5 |
90048898 |
18/12/2002 * |
100,000,000.00 |
ALLAHABAD BANK |
17/90; MADRAS COMPLEX, INDUSTRIAL FINANCE BRANCH; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA |
- |
|
6 |
90046530 |
06/09/2001 * |
46,000,000.00 |
THE ALLAHABAD BANK |
17/90; MADRAS COMPLEX, INDUSTRIAL FINANCE BRANCH; CONNAUGHT CIRCUS, NEW DELHI, DELHI, INDIA |
- |
* Date of charge modification
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Furniture and Fixtures
- Office Equipment
- Vehicles
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] 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. 62.49 |
|
|
1 |
Rs. 99.66 |
|
Euro |
1 |
Rs. 83.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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.