MIRA INFORM REPORT

 

 

Report Date :

23.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SHASUN PHARMACEUTICALS LIMITED (w.e.f. 11.08.2010)

 

 

Formerly Known As :

SHASUN CHEMICALS AND DRUGS LIMITED

 

 

Registered Office :

3rd and 4th Floor, The Batra Centre, Old No. 28, Sardar Patel Road, Guindy Chennai-600032, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

19.04.1976

 

 

Com. Reg. No.:

18–007122

 

 

Capital Investment/ Paid-up Capital:

Rs. 113.250 Millions

 

 

CIN No.:

[Company Identification No.]

L24117TN1976PLC007122

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES03195D

 

 

PAN No.:

[Permanent Account No.]

AAACS5031L

 

 

Legal Form :

A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer and Exporter of Ibuprofen, Anti – inflammatory Drug and Anti – Ulcerative Drug.

 

 

No. of Employees:

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (51)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 11400000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record.

 

The company has seen a drastic dip in its net profitability during 2013. However, overall position appears to be decent.

 

Trade relations are fair. Business is active. Payment terms are reported as usually correct.

 

In view of long standing experience of its promoters, the subject 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

ICRA

Rating

BBB (Fund Based)

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

May 2013

 

Rating Agency Name

ICRA

Rating

A3 (Non Fund Based)

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

May 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 / Corporate Office :

3rd and 4th Floor, The Batra Centre, Old No. 28, Sardar Patel Road, Guindy Chennai-600032, Tamilnadu, India

Tel. No.:

91-44-24316700

Fax No.:

91-44-24348924 and 22350278

E-Mail :

dinesh@shasun.com

shasun@shasun.com

Web Site:

www.shasun.com

 

 

Research Office:

No.27, Vandalur –Keambakkam Raod, Keezhakkottaiyur, Village, Chennai – 600048, Tamilnadu, India

Tel. No.:

91-44-47406100

Fax No.:

91-44-47406190

E-Mail :

scr@shasun.com

 

 

API Facility – Puducherry / Bio –Tec Centre :

Mathur Road, (formerly known as Shasun Road), Periakalapet, Puducherry – 605 014, (formerly known as Pondicherry), India

Tel. No.:

91-413-2655156/ 2655157

Fax No.:

91-413-655154

E-Mail :

shapdy@shasun.com

 

 

Finished Dosage Facility :

Pharmaceutical Division
Unit –II R.S. No 32-34, PIMS Road, Periyakalapet, Puducherry - 605 014, (formerly known as Pondicherry), India.

Tel. No.:

91-413-2655946 / 2655697  / 2655698

Fax No.:

91-413-2656052

 

 

Multi Product Facility – Cuddalore

A1/B SIPCOT Industrial Estate, Kudikadu, Cuddalore-607005, Tamilnadu, India

Tel. No.:

91-4142-239701/ 239702/ 239703/ 239704

Fax No.:

91-4142-239709

 

 

UK Branch Office :

165 A, Thornbury Road, Isleworth, London – TW7, 4QG, United Kingdom

Tel. No.:

+ 44 20 8560 9711

Fax No.:

+ 44 20 8560 9455

E-Mail :

venky@shasun.com

 

 

Overseas Office :

Shasun USA Inc, 197, Rt 18 South, Suite 102 East Brunswick, NJ 08816, USA

 

Tel. No.:

1-732-465-0700 * 116

Fax No.:

1-732-465-0710

E-Mail :

chaitanya@shasun.com

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. R Kannan

Designation :

Chairman

 

 

Name :

Mr. R Sundara Rajan

Designation :

Independent Director

 

 

Name :

Mr. N Subramanian

Designation :

Independent Director

 

 

Name :

Dr Sunny Sharma

Designation :

Independent Director

 

 

Name :

Prof Indira J Parikh

Designation :

Independent Director

 

 

Name :

Mr. S Abhaya Kumar

Designation :

Managing Director

 

 

Name :

Dr S Devendra

Designation :

Whole Time Director

 

 

Name :

Mr. S Vimal Kumar

Designation :

Whole Time Director

 

 

Name :

Mr. M Mohan

Designation :

Whole Time Director

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.06.2013

 

Category of Shareholder

No. of Shares

% of No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

15999716

28.26

http://www.bseindia.com/include/images/clear.gifBodies Corporate

7762983

13.71

http://www.bseindia.com/include/images/clear.gifSub Total

23762699

41.97

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

23762699

41.97

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

3549540

6.27

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

110352

0.19

http://www.bseindia.com/include/images/clear.gifInsurance Companies

350950

0.62

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

50001

0.09

http://www.bseindia.com/include/images/clear.gifForeign Venture Capital Investors

6578947

11.62

http://www.bseindia.com/include/images/clear.gifSub Total

10639790

18.79

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

3746186

6.62

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

12810981

22.62

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4977772

8.79

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

686424

1.21

http://www.bseindia.com/include/images/clear.gifClearing Members

666424

1.18

http://www.bseindia.com/include/images/clear.gifTrusts

19000

0.03

http://www.bseindia.com/include/images/clear.gifLimited Liability Partnership

1000

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

22221363

39.24

Total Public shareholding (B)

32861153

58.03

Total (A)+(B)

56623852

100.00

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

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

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

56623852

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Ibuprofen, Anti – inflammatory Drug and Anti – Ulcerative Drug.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not available

 

 

Bankers :
  • State Bank of Travancore
  • State Bank of India
  • ICICI Bank Limited
  • State Bank of Mysore
  • State Bank of Hyderabad
  • Axis Bank Limited
  • DBS Bank
  • Canara Bank
  • IDBI Bank

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2013

Rs. In Millions

31.03.2012

LONG-TERM BORROWINGS

 

 

External commercial borrowings from banks

1000.100

566.830

Foreign currency term loans from banks

298.290

158.160

Less: disclosed under "Other current liabilities

(323.830)

(234.460)

SHORT TERM BORROWINGS

 

Overdrafts from banks

580.130

39.190

Packing credit facilities from banks

1592.370

1300.480

 

 

 

TOTAL

3147.060

1830.200

 

NOTES

 

LONG-TERM BORROWINGS

 

Security details and terms of re-payment for loans:

 

i.              Foreign currency loan (INR loan with swing option of converting into foreign currency loan) from State Bank of India amounting to Rs. 68.50 (Previous year Rs. 158.16) is secured by way of first charge on:

 

(a)   Moveable and immoveable fixed assets at Shasun Research Centre (SRC) located at Vandalur

 

(b)   Unencumbered immoveable assets at Plot No. A1/A, measuring 5.01 acres located in Sipcot Complex, Cuddalore

 

(c)   Unencumbered Land measuring 1 acre and 3 cents located at Shasun Research Centre (SRC) located at Vandalur

 

(d)   Moveable and immoveable fixed assets at Ozhavarkarai located at Pondicherry (dispensary land and building)

 

The loan carries interest ranging from 5.00% to 6.00% and is repayable in 33 equal monthly installments of USD 0.15 million.

 

ii.             Foreign currency loan (with swing option of converting into foreign currency loan) from State Bank of India amounting to Rs. 229.79 (Previous year Rs. Nil) is secured by way of first paripassu charge with DBS Bank on:

 

(a)   The leasehold rights of the land admeasuring 45 acres and 47 cents located at Jawaharlal Nehru Pharma City - SEZ, Visakapatnam district, Andhra Pradesh

 

(b)   Building, plant and machinery and other assets created / to be created out of bank finance at the aforesaid location

 

The loan carries interest ranging from 5.00% to 6.00% (if availed in USD), 12.00% to 13.50% (if availed in INR) and is repayable in 60 equal monthly installments of USD 0.136 million.

 

iii.            External commercial borrowing from DBS, Singapore amounting to Rs. 164.40 (Previous year: Rs. 206.12) is secured by way of first paripassu charge with State Bank of India on:

 

(a)   The leasehold rights of the land admeasuring 45 acres and 47 cents located at Jawaharlal Nehru Pharma City - SEZ, Visakapatnam district, Andhra Pradesh

 

(b)   Building, plant and machinery and other assets created / to be created out of bank finance at the aforesaid location

 

The borrowing carries interest ranging from 3.00% to 4.00% and is repayable in 8 semi-annual installments of USD 0.50 million after an initial moratorium period of 18 months.

 

iv.            External commercial borrowing from DBS, Singapore amounting to Rs. 548 (Previous year Rs. Nil) is secured by way of exclusive first charge on the entire plant and machinery present and future at Cuddalore plant.

 

The borrowing carries interest ranging from 3.00% to 4.00% and is repayable in 8 semi-annual installments of USD 1.25 million after an initial moratorium period of 18 months.

 

v.             External commercial borrowing from ICICI Bank Limited, Singapore amounting to Rs. 287.70 (Previous year: Rs. 309.18) is secured by way of first paripassu charge on:

 

(a)   Land, building, plant and machinery in Formulation unit, located at Pondicherry

 

(b)   Land and building in MPP unit, located at Cuddalore

 

(c)   Land and building in API unit (API, Biotech, Pilot units) located at Pondicherry

 

The borrowing carries interest ranging from 3.30% to 3.55% and is repayable in 16 equal quarterly installments of USD 0.38 million after an initial moratorium period of 15 months.

 

vi. Standby line of credit availed by Shasun Pharma Solutions Limited, UK (wholly owned subsidiary) amounting to GBP 2.00 million (Previous year: GBP 2.00 million) from State Bank of India, UK with support of Axis Bank Ltd is secured by:

 

(a)   Exclusive charge on land approx 3.13 acres situated at Kumarapettai, Cuddalore

 

(b)   Second charge on plant and machinery situated at Cuddalore unit

 

(c)   Hypothecation by way of subservient charge on current assets of the Company

 

vi.            Standby line of credit availed by Shasun Pharma Solutions Limited, UK (wholly owned subsidiary) amounting to GBP 3.05 million (Previous year: GBP 5.50 million) from State Bank of India, UK is secured by:

 

(a)   Second charge on moveable and immoveable fixed assets at Shasun Research Centre (SRC) located at Vandalur

 

(b)   Second charge on unencumbered immoveable assets at plot No. A1/A, measuring 5.01 acres located in Sipcot Complex, Cuddalore

 

(c)   Second charge on unencumbered land measuring 1 acre and 3 cents located at Shasun Research Centre (SRC) located at Vandalur

 

(d)   Second charge on moveable and immoveable fixed assets at Ozhavarkarai located at Pondicherry (dispensary land and building)

 

(e)   Paripassu first charge on the tangible assets of Shasun Pharma Solutions Limited, UK

 

vii.           External commercial borrowing from Standard Chartered Bank, Mauritius, amounting to Rs. Nil (Previous year: Rs. 51.53) was secured by way of first charge on plant and machinery situated at Cuddalore units. The loan was repayable in 6 semi-annual installments of USD 1.00 million after an initial moratorium period of 30 months. The loan has been finally repaid during the year.

 

SHORT TERM BORROWINGS

 

Security details and terms of re-payment for loans:

 

i.              Working Capital facility sharing under consortium arrangement from bankers aggregating to Rs. 3,800 (Fund based Rs. 2,200, Non-fund based Rs. 1,500 and standby line of credit amounting to Rs. 100) is secured by way of exclusive first charge on:

 

(a)   Hypothecation of entire current assets on a paripassu basis with other members of the consortium

 

(b)   Paripassu first charge on land and building in API unit (API, Biotech and Pilot Units) located at Pondicherry

 

(c)   Paripassu first charge on land and building in MPP unit, located at Cuddalore

 

(d)   Land, buildings, plant and machinery in Formulation unit located at Pondicherry

 

(e)   Second charge on all other fixed assets of the Company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BSR and Company

Chartered Accountant

Address :

No.10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034, Taminadu, India

Tel. No.:

91-44-3914 5000

Fax No.:

91-44-3914 5999

 

 

Cost Auditor :

 

Name :

Geeyes and Company

Chartered Accountant

Address :

A-3, III Floor, 56, Seventh Avenue, Ashok Nagar, Chennai-600083, Tamilnadu, India

 

 

Wholly owned subsidiaries :

 
  • Shasun USA Inc., USA
  • Shasun Life Sciences Private Limited, India
  • SVADS Holding SA, Switzerland

 

 

Wholly owned step down subsidiaries :
  • Shasun Pharma Solutions Limited, UK (100% subsidiary of SVADS Holding SA)
  • Shasun Pharma Solutions Inc., USA (100% subsidiary of SVADS Holding SA)

 

 

Joint Venture :
  • Shasun NBI LLC, USA
  • Shasun NBI Nanotech India Private Limited (subsidiary of Shasun NBI LLC, USA)

 

 

Entities where Directors have control or significant influence :
  • Shasun Finance Limited
  • Shasun Leasing and Finance Private Limited
  • Devendra Estate Private Limited
  • Shasun Foundation Trust

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

75000000

Equity Shares

Rs.2/- each

Rs. 150.000 Millions

1000000

Redeemable Preference Shares

Rs.100/- each

Rs. 100.000 Millions

 

TOTAL

 

Rs. 250.000 Millions

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

56623852

Equity Shares

Rs.2/- each

Rs. 113.250 Millions

 

 

 

 

 

 

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

113.250

110.250

97.090

(b) Reserves & Surplus

2759.400

2486.490

1617.810

(c) Money received against share warrants

0.000

28.130

0.000

 

 

 

 

(2) Foreign Currency monetary item translation difference account

(20.560)

(9.950)

0.000

Total Shareholders’ Funds (1) + (2)

2852.090

2614.920

1714.900

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

985.300

490.530

359.900

(b) Deferred tax liabilities (Net)

0.000

15.030

129.840

(c) Other long term liabilities

10.400

0.800

0.000

(d) long-term provisions

59.680

51.370

156.280

Total Non-current Liabilities (3)

1055.380

557.730

646.020

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

2720.040

1652.510

1599.620

(b) Trade payables

1763.650

1552.660

1176.180

(c) Other current liabilities

637.070

516.780

351.160

(d) Short-term provisions

123.300

225.040

159.050

Total Current Liabilities (4)

5244.060

3946.990

3286.010

 

 

 

 

TOTAL

9151.530

7119.640

5646.930

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2663.890

1938.500

1659.100

(ii) Intangible Assets

9.960

4.790

2.640

(iii) Capital work-in-progress

773.360

308.090

49.340

(iv) Intangible assets under development

35.210

0.000

0.000

(b) Non-current Investments

509.000

50.400

23.490

(c) Deferred tax assets (net)

11.410

0.000

0.000

(d)  Long-term Loan and Advances

701.080

1000.150

789.670

(e) Other Non-current assets

11.310

5.290

70.280

Total Non-Current Assets

4715.220

3307.220

2594.520

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1453.330

1106.880

1048.740

(c) Trade receivables

2206.760

1970.550

1379.200

(d) Cash and cash equivalents

39.740

66.270

106.500

(e) Short-term loans and advances

680.100

593.710

441.140

(f) Other current assets

56.380

75.010

76.830

Total Current Assets

4436.310

3812.420

3052.410

 

 

 

 

TOTAL

9151.530

7119.640

5646.930

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

7827.560

7359.090

5671.260

 

 

Other Income

136.550

409.640

160.040

 

 

TOTAL                                     (A)

7964.110

7768.730

5831.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material Consumed

5009.680

4655.130

3812.790

 

 

Purchase of Stock In Trade

17.740

42.920

11.830

 

 

Employee benefits expenses

767.430

595.240

516.460

 

 

Other Expenses

1529.270

1562.020

1245.930

 

 

Changes in inventories of Finished goods, work in progress and stock in trade

(177.840)

(11.400)

(304.800)

 

 

TOTAL                                     (B)

7146.280

6843.910

5282.210

 

 

 

 

 

Less

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

817.830

924.820

549.090

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

264.870

304.810

223.350

 

 

 

 

 

 

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

552.960

620.010

325.740

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

316.620

247.280

242.150

 

 

 

 

 

 

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

236.340

372.730

83.590

 

 

 

 

 

Less

TAX                                                                  (H)

(26.440)

(157.850)

34.820

 

 

 

 

 

 

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

262.780

530.580

48.770

 

 

 

 

 

 

Mark to Market loss option contracts relating to  prior periods

0.000

0.000

(405.320)

 

 

 

 

 

 

NET PROFIT / (LOSS) FOR THE YEAR

262.780

530.580

(356.550)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

5101.320

4981.450

3901.450

 

 

Product Development fee

68.920

54.940

63.820

 

 

Contract research fees

48.940

29.610

3.640

 

 

Interest and Dividend

18.720

16.630

41.590

 

 

Miscellaneous Income

20.470

0.000

0.000

 

TOTAL EARNINGS

5258.370

5082.630

4010.500

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1304.290

1362.260

1115.730

 

 

Capital Goods & Spares Parts

179.910

172.850

30.840

 

TOTAL IMPORTS

1484.200

1535.110

1146.570

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

4.76

10.92

(7.34)

 

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2013

 

 

1st Quarter

Net Sales

1759.500

Total Expenditure

1688.400

PBIDT (Excl OI)

71.100

Other Income

14.700

Operating Profit

85.800

Interest

77.000

Exceptional Items

0.000

PBDT

8.800

Depreciation

86.400

Profit Before Tax

(77.600)

Tax

(102.700)

Provisions and contingencies

0.00

Profit After Tax

25.100

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustments

0.000

Net Profit

25.100

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
3.30

6.83

0.84

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.02

5.06

1.47

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
3.02

5.51

1.50

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.14

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.30

0.82

1.14

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.85

0.97

0.93

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

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)

Yes

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

-----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

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

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2013

Rs. In Millions

31.03.2012

LONG-TERM BORROWINGS

 

 

Loan from others

10.740

0.000

SHORT TERM BORROWINGS

 

 

Other loans from banks

547.540

312.840

 

 

 

TOTAL

558.280

312.840

 

 

VIEW INDEX OF CHARGES

 

S. No

Charge ID

Date of Charge Creation /Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN

1

10445370

19/08/2013

300,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, NO.232 NSC BOSE ROAD, CHENNAI, TAMIL NADU - 600001, INDIA

B83179440

2

10415079

26/03/2013

100,000,000.00

STATE BANK OF TRAVANCORE

COMMERCIAL BRANCH, JEEVAN ANAND, 556, MOUNT ROAD, TEYNAMPET, CHENNAI, TAMIL NADU - 600018, INDIA

B71857007

3

10399371

02/01/2013

553,000,000.00

DBS BANK LIMTIED 

806, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA

B66396938

4

10374612

30/08/2012

52,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, NO.232 NSC BOSE ROAD, CHENNAI,
TAMIL NADU - 600001, INDIA

B57336117

5

10363032

28/06/2012

753,500,000.00

AXIS BANK LIMITED

CMC, KARUMUTHU NILAYAM, NO.192, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA

B42631697

6

10363184

13/06/2012

450,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, NO.232 NSC BOSE ROAD, CHENNAI,
TAMIL NADU - 600001, INDIA

B42701110

7

10340690

30/08/2012 *

50,000,000.00

STATE BANK OF TRAVANCORE

COMMERCIAL BRANCH, JEEVAN ANAND, 556, MOUNT ROAD,
TEYNAMPET, CHENNAI, TAMIL NADU - 600018, INDIA

B57370173

8

10297652

30/11/2011 *

270,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B26741348

9

10262659

09/07/2011 *

246,300,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 232, N. S. C. BOSE ROAD, CHENNAI, TAMIL NADU - 600001, INDIA

B16868804

10

10245653

05/10/2012 *

192,500,000.00

DBS BANK LIMTIED

806, ANNASALAI, CHENNAI, TAMIL NADU - 600002, INDIA

B59780585

11

10240157

13/09/2010

145,400,000.00

AXIS BANK LIMITED

CMC, KARUMUTHU NILAYAM, NO.192, ANNA SALAI,, CHENNAI, TAMIL NADU - 600002, INDIA

A94539111

12

10196450

09/01/2013 *

279,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, NO.232 NSC BOSE ROAD, CHENNAI,
TAMIL NADU - 600001, INDIA

B68082387

13

10158077

29/10/2009 *

282,000,000.00

STATE BANK OF MYSORE

576 ANNA SALAI, TEYNAMPET, CHENNAI, TAMIL NADU -
600006, INDIA

A75505370

14

80019392

12/08/2003

150,000,000.00

STATE BANK OF TRAVANCORE

CHENNAI MAIN BRANCH, UNITED BUILDING ESPLANADE, CHENNAI, TAMIL NADU - 600108, INDIA

-

15

90292831

15/04/2004 *

92,800,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH; 232; N.S.C. BOSE ROAD, CHENNAI,
TAMIL NADU - 600001, INDIA

-

16

90292714

24/05/1999 *

16,700,000.00

EXPORT IMPORT BANK OF INDIA

CENTRE ONE; WORLD TRADE CENTRE, CUFFE PARADE, MUM
BAI, MAHARASHTRA - 400005, INDIA

-

17

90293805

23/02/1999

16,700,000.00

EXPORT IMPORT BANK OF INDIA

CENTRE ONE; WORLD TRADE CENTRE, CUFFE PARADE, MUM
BAI, MAHARASHTRA - 400005, INDIA

-

18

90292397

16/07/1996

6,000,000.00

M/S. PONDICHERRY INDUSTRIAL PROMOTION DEVLOPMENT C
ORP. LIMTIED  

PONDICHEERY, PONDICHERRY, PONDICHERRY, INDIA

-

19

90292336

30/10/1998 *

29,600,000.00

STATE BANK OF MYSORE

INDUSTRIAL FINANCE BRANCH, BANGALORE, KARNATAKA -
560001, INDIA

-

20

90292330

24/05/1996 *

80,000,000.00

EXPORT IMPORTBANK OF INDIA

CENTRE ONE; WORLD TREAD CENTRE;, CUFFE PARADE, BOMBAY, PONDICHERRY - 400005, INDIA

 

21

90292303

30/10/1998 *

36,200,000.00

STATE BANK OF TRAVANCORE

MADRAS MAIN BRANCH, CHENNAI, TAMIL NADU - 600108,
INDIA

-

22

90295367

14/02/1995

32,900,000.00

INDIANRENEWABLE ENERGY DEVLOPMENTAGENCY LIMTIED  

CORA 4A; EAST COURT; 1ST FLOOR, INDIAN HABITAT CENTRE; LODI ROAD, NRE DELHI, DELHI - 110003, INDIA

-

23

90292253

12/01/1995

10,000,000.00

STATE BANK OF MYSORE

INDUSTRIAL FINANCE BANCH; RAMANASHREE ARCADE, BANGALORE, KARNATAKA - 560001, INDIA

-

24

90293553

30/10/1998 *

10,000,000.00

STATE BANK OF MYSORE

INDUSTRIAL FINANCE BRANCH, BANGALORE, KARNATAKA -
560001, INDIA

-

25

90291580

20/12/1996 *

6,500,000.00

STATE BANK OF TRAVANACORE

MADRAS MAIN;, CHENNAI, TAMIL NADU - 600108, INDIA

-

26

90292174

30/10/1998 *

6,500,000.00

STATE BANK OF TRAVANCORE

MADRAS MAIN BRANCH, CHENNAI, TAMIL NADU - 600108,
INDIA

-

27

90292172

30/08/2012 *

3,700,000,000.00

STATE BANK OF TRAVANCORE

STATE BANK OF TRAVANCORE, COMMERCIAL BRANCH, JEEVAN ANAND, CHENNAI, TAMIL NADU - 600018, INDIA

B57286189

28

90293342

17/06/1993

24,000,000.00

THE GOVT OF TAMILNADU

COMMERCIAL TAXES, MADRAS, TAMIL NADU, INDIA

-

29

90293511

07/04/1998 *

24,000,000.00

THE GOVT. OF TAMILNADU

DEPATMENT OF COMMERCIQL TAXES, CHENNAI, TAMIL NADU, INDIA

-

30

90292140

23/01/1995 *

20,000,000.00

STATE BANK OF TRAVANCORE

MADRAS MAIN BRANCH, MADRAS, TAMIL NADU - 600108,
INDIA

-

31

90293503

05/01/1993

20,000,000.00

M/S. STATE BANK OF TRAVANCORE

MADRAS MAIN, MADRAS, TAMIL NADU - 600108, INDIA

-

32

90292114

30/05/1992

21,500,000.00

M/S.INTEGRATED FINANCE COMP. LIMTIED  

‘VAIRAMS'; 112; THYAGARAYA ROAD, T. NAGAR, MADRAS, GUJARAT - 600017, INDIA

-

* Date of charge modification

 

 

COMPANY OVERVIEW

 

Subject was incorporated in 1976 having its registered office in Chennai, India. The Company is primarily engaged in manufacturing of Active Pharmaceutical Ingredients (APIs), their intermediates and finished dosage. The Company is also into product development and provides contract research and manufacturing services.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

COMPANY PERFORMANCE

 

The company is cognizant of the various emerging trends in the global pharmaceutical landscape and has taken a lot of initiatives to ensure that it is well positioned to leverage the opportunities that arise out of such trends.

 

The following section discusses such initiatives on a divisional basis

 

API BUSINESS

 

On a consolidated basis, API and its intermediate business contributed close to 52% of the turnover of the company. On a standalone basis, they contributed close to 73% of the total sales.

 

The Company’s strategy with respect to this SBU is to enhance sales and profitability. This can be achieved through the following measures:

 

Capacity enhancement of the existing products to meet the growing demand Commercializing new products which are New products development to improve pipeline of products Process Improvement initiatives

 

Shasun’s current API portfolio consists of Ibuprofen, Ranitidine, Nizatidine, Gabapentin, Levetiracetan and Cycloserine, amongst others.

 

The Company has filed 5 new DMFs and 2 ANDAs in the current financial year.

 

In this current financial year, the API SBU has achieved a sales revenue of Rs.5316.22 Mn.

 

OUTLOOK FOR API BUSINESS

 

The company continues to enjoy significant traction in its core APIs.

 

New products introduction is major initiative in FY 14 to enhance the sales and profitability.

 

Currently, the Company is investing in new facilities to manufacture three new APIs, which are to be launched in FY15. This will bring significant volume and value to the Company. The USDMFs filed by the company has been triggered by various customers

 

This year the Company is investing in Vizag SEZ to create manufacturing capacities for API business Segment

 

While North America and Europe continue to be key markets for the Company, other markets such as Korea, Japan, and Brazil have presented new opportunities thereby opening more avenues for the Company.

 

Contract Research and Manufacturing Services Business

 

The Company has an active presence in CRAMS in both APIs and Formulations

 

API CRAMS includes

 

  1. Shasun Pharma Solutions Limited, UK
  2. CRAMS SBU in India

 

FORMULATIONS CRAMS INCLUDES

 

Finished Dosages facility in Pondicherry caters to contract manufacturing and contract development of finished dosages for Innovator, Emerging and Generic pharma companies.

 

Formulation research centre in Pondicherry provides support for development of new formulation products.

 

During FY13, CRAMS consolidated business registered the revenue of Rs 4,899 Mn, comprising 48% of the total consolidated revenue of Shasun and registering a growth of 3% over previous year.

 

SHASUN PHARMA SOLUTIONS LIMITED, UK( SPSL)

 

OPERATIONS-SPSL

 

During FY13, SPSL has continued to focus on its core strengths of safety and quality compliance, continuous improvement, and innovation.

 

Safety performance and compliance were maintained at an industry leading level. The year saw the successful completion of several scheduled major hazard regulatory inspections on key risk control systems with no major observations. In addition, their safety performance and commitment to ensuring the safety of their employees has been reinforced through a number of initiatives. Working with the Health and Safety Executive on a competency project engaging all employees and a waste minimization project working closely with the UK Environmental Agency. REACH compliance was maintained and expert support and advise continues to be provided to our customer base as part of their service offering.

 

Compliance with cGMP standards was acknowledged through customer visits and eighteen quality audits at their facility. The Company continued its excellent performance with respect to quality performance indicators with a Process right first time of 98%. The company has invested around GBP 3 Million at Dudley facility to capacity and capability enhancement and to infrastructure upgrades.

 

SALES-SPSL

 

Market interest continues to be driven by their key strengths – technical expertise and capability, speed of response, good facilities, their people and their reliability.

 

SPSL has a unique ability to handle both highly complex and hazardous projects. A world class hazard evaluation capability which is fully integrated into their process development group and project management process allows early understanding and appropriate measures to ensure safe execution. This approach is seen as an advantage over their competitors by several of their customers.

 

SPSL UK has achieved sales GBP 35.23 Million and posted PAT of GBP 3.69 million. Focus on high value added, technically challenging projects has enabled SPSL to return a good PAT performance, despite pressure on sales.

 

In 2012, SPSL hosted ninety customer visits to the Dudley site, of which 50% were new and prospective clients. They have also seen improvements in other key performance metrics including number of inquiries, number of proposals and proposal closure rate, generating a number of good prospects for their future pipeline.

 

SCIENCE AND TECHNOLOGY – SPSL

 

Over the past year they have continued to focus on science and technology as a key initiative to differentiate their offering. They continue to develop our HKR (Hydrolytic Kinetic Resolution) technology and broaden its application, In 2012 a key milestone was achieved with the commercialization of their 4th generation Salen catalyst and novel synthesis for Hyperzine A(natural product).

 

OUTLOOK FOR SPSL

 

In 2012 SPSL had a pipeline of 24 launched products and grew its pre-launch pipeline to 27 projects spanning all clinical phases. The pipeline remains strong with 9 exciting projects in Phase III, 2 of which have been filed and are pending regulatory approval. The company, through its excellent level of service coupled with it’s proprietary technology and innovation, is well placed to take advantage of the increased outsourcing opportunities presented by both established and emerging pharma customers. The company remains confident that based upon current orders and new business opportunities identified for 2013-14 it can sustain sales and coupled with planned plant efficiency improvements ensure the company remains profitable.

 

CRAMS SBU IN INDIA

 

On the Contract Manufacturing front in India, the Company has posted a growth of 26% by successfully capitalising on the global growth in the contract manufacturing business

 

FINISHED DOSAGES BUSINESS – FORMULATIONS CRAMS

 

The company offers the services of development and manufacture of finished dosages to both Innovator and generic companies worldwide. The division achieved sales of Rs.1472 Mn during FY13, a substantial growth of 75% over the previous year.

 

The Finished Dosages facility has undergone successful inspections by various regulatory bodies such as WHO Geneva, NDA Uganda, PMPB Malawi, TFDA Tanzania, MCAZ Zimbabwe and ROA Ivory Coast during FY13.

 

During this period, it has also five products for registration with various regulatory agencies and has received one approval for a product previously filed for registration.

 

OUTLOOK FOR FORMULATION CRAMS

 

Finished Dosages Business remains a major opportunity for Shasun to increase and diversify its revenue base. With the increased expansion capacity and expected approvals on newer Products, the Formulation Division is planning to increase its revenues from FY13.The development work on ANDAs have commenced with a goal of filing atleast 10 ANDAs and 2 CTDs for the European market in FY 14. The outlook for the Formulations division is robust and the Company is preparing plans to initiate work on Phase-III expansion later part of this year so as to increase the capacity to meet the growing needs of its existing customers, and it is also preparing for new product approvals.

 

The service levels to their existing customers have improved with the changing needs, taking their partnership with customers to newer heights. Customers have started adding new products from their formulation facility.

 

BIOTECHNOLOGY

 

The division achieved Sales growth of 58% for its flagship recombinant streptokinase product and continued to strengthen its position as a leading manufacturer for streptokinase in India.

 

The product is also under export registration in some of the key developing countries.

 

While its other pipeline biosimilar molecules are progressing in development, the division is also drawing up strategic plans for future growth on a sustainable and differentiated basis.

 

NANOTECHNOLOGY

 

The company is one of the first few pharmaceutical companies in India to have embarked on nanotechnology based research and drug development. As the application and potential of nanotechnology keeps validating through numerous research papers and partnering deals worldwide, the company is well-positioned to leverage its knowledge and skills in this sunrise area.

 

The company is involved in a lead development compound based on the nanotechnology platform with its joint venture partner – Nanoparticle Biochem Inc., USA and support from the University of Missouri, USA. The compound is a radioactive gold nanoparticle and is being investigated for treatment of solid tumours. Extensive preclinical testing is underway in animals and these include studies in both rodent and non-rodents like dogs and pigs.

 

A clinical study has also been undertaken for treating prostate-cancer bearing patient dogs and the compound has shown promising evidence of increase in survival time, tumour regression and retention within the tumour.

 

The plan is for completing the rest of the identified preclinical studies and take the product for Investigational New Drug (IND) filing in both India and USA A Scientific Advisory team comprising of well-known experts has also been formed in India and they are guiding the team in the development of this molecule.

 

With its nanotechnology foray, the company has also undertaken another area of research into polymeric nanoparticles with the objective of developing a drug delivery platform that can be applied across various molecules. This research is currently underway with the target of establishing the preliminary proof-of concept of the proposed technology platform.

 

CONSOLIDATED FINANCIAL REVIEW

 

The Company has registered a consolidated Gross revenue of Rs.11030.52 Mn as compared to the previous year figure of Rs.11073.23 Mn.

 

Raw material cost as a proportion of total net income decreased to 50.33% in FY13 from 52.64% in FY12. This is mainly due to product sales mix and process improvement in various products.

 

Other operating expenses increase in line with increase in sales growth.

 

The Company has achieved PAT of Rs.530.36 Mn. in FY13 as compared to the previous year figure of Rs.1005.67 Mn.

 

FOREX FORWARD CONTRACTS

 

The Company has completed all forex forward contracts during October, 2012 and there is no pending contracts.

 

 

FIXED ASSETS

 

  • Land
  • Leasehold Land
  • Buildings - Factory
  • Building Non Factory
  • Machinery
  • Electrical installations
  • Lab Equipments
  • Office Equipments
  • Factory Equipments
  • R and D Equipments
  • Fixtures and fittings
  • Vehicles 
  • Computers Software

 

WEBSITE DETAILS

BOARD OF DIRECTORS

EXECUTIVE DIRECTORS

DR. S. DEVENDRA WHOLE TIME DIRECTOR

Dr. S. Devendra, Whole Time Director is a graduate in medicine and is one of the key architects in developing the organization and was instrumental in transforming the company from single product company to multi product service provider. He has gained a worldwide reputation for his knowledge in Marketing, Customer Satisfaction, Global Competition, and Strategic Thinking. He has been mentoring and developing the marketing skills of the company.

S. ABHAYA KUMAR MANAGING DIRECTOR

Mr. S. Abhaya Kumar is Managing Director. He is a chemical engineer and as such has been instrumental in honing the technical aspects of the Shasun offering. His leadership has ensured that our facilities and products meet the technical challenge of the global market place. His drive for technical excellence and quality manufacturing has taken Shasun to international heights. Well respected within the national bodies of the Indian Chemical Industry Abhaya has extensive experience of marketing in the USA and is a member of the Indo American Chamber of Commerce.

S. VIMAL KUMAR WHOLE TIME DIRECTOR

Mr. S. Vimal Kumar, Whole Time Director is a graduate in Commerce from Loyola College in Chennai and a Fellow Member of the Institute of Chartered Accountants of India. He started his career with Shasun Chemicals and Drugs Limited and became Director Finance of the Company. As a Chartered Accountant, he heads the accounting and finance functions of the company. He holds the Directorship for the Shasun Group of Companies.

A M MOHAN DIRECTOR EHS

Mr. A M Mohan, Director EHS, a chemical engineer has been one of the key management team members involved in shaping the organization.

Mr. Mohan, has headed the Operation and is currently responsible for heading the EHS (Environment, Health and Safety) New Product Initiatives and Projects.

NON-EXECUTIVE DIRECTORS

R. KANNAN CHAIRMAN

Mr. R. Kannan, a Post Graduate in Mathematics from Madras University, PGDMS from Bombay University and Certified Associate of Indian Institute of Bankers with Industrial Finance.

R. SUNDARA RAJAN DIRECTOR

Mr. R. Sundara Rajan, is a Mechanical Engineer and PGDM from IIM Ahmedabad. He is a Chartered Engineer and Associate of Insurance Institute of India. He has a rich experience of around 30 years in Pharmaceutical Industry Senior Management positions.

N. SUBRAMANIAN DIRECTOR

Mr. N. Subramanian is a Fellow Member of the Institute of the Chartered Accountants of India, New Delhi and Associate Member of the Institute of Company Secretaries of India, New Delhi.

DR. SUNNY SHARMA DIRECTOR

Dr. Sunny Sharma is a Senior Managing Director on the Asia team of OrbiMed Advisors. Dr. Sharma has over 12 years of life sciences experiences panning venture capital, investment banking, and clinical practice.

PROF. INDIRA J PARIKH DIRECTOR

Prof. Indira J Parikh is the Founder President of FLAME (Foundation for Liberal and Management Education). She was a faculty at IIM­ Ahmedabad for over 30 years and Dean from 2002 to 2005. She has taught at INSEAD (European Institute for Business Administration), Fontainebleau (France) and Texas A & M University. She has specialized in organization development and design and institution building. She has designed and offered management and leadership development programs in public sector, private sector and multinational organizations.

 

HISTORY

 

1976-77 - Incorporated in Chennai, India. First production facility (for Analgin)

 

1986 - Second production facility at Pondicherry (for Ibuprofen)

 

1991 - Third manufacturing facility in Cuddalore (for Ranitidine HCl)

 

1992 - Established US subsidiary

 

1994 - Initial public offering raised approx Rs. 60.000 Millions

 

2005 - Commissioned new Research Centre and Formulations facility

 

2006 - Successfully completed acquisition of Rhodia Pharma Solutions business.

 

2009 - Commercial launch of recombinant streptokinase in India (June 09)

 

2010 - Finished dosages sales grows 100% and reaches Rs. 500.000 Millions

 

2011 - Formed 50:50 JV Shasun NBI LLC in USA with Nanoparticle Biochem
          Major expansion of formulations facility to 5 billion OSD

 

NEWS

 

PRESS RELEASE

 

EXPANSION, TURNAROUND OF UK OPERATIONS BUOY SHASUN HOPES

 

Chennai, Jan 24:  

Come June, Shasun Pharmaceuticals Limited’s tablet making capacity will double to 10 billion, and that is for starters. On the cards is a plan to put up a new formulations unit, at a cost of Rs 1000.000 Millions, which will produce another 5 billion tablets in 2014.

The enhanced capacity, combined with the turnaround of the company’s UK subsidiary, will make 2013-14 a watershed year in the history of Shasun, says its Chairman and Managing Director Abhaya Kumar.

In the UK, Shasun has a facility to undertake contract manufacturing assignments.

“Although we lost a customer, we are compensated by orders (£40 million) from another drug company,” Kumar said, without naming the company. He said that the contract would be to produce a drug which has currently gone into Phase III clinical trials (where a drug is given to large groups of people to study its effectiveness and any possible side-effects), is for treating Alzheimer’s disease, he said.

“Shasun UK is on track,” he said.

In India, the company filed 6 Drug Master Files (applications for selling new bulk drugs) and 8 ANDA (abbreviated new drug application—for selling generic or copies of existing drugs) in the current year. In 2013-14, Shasun will file 10 DMFs and 20 ANDAs with the US Food and Drug Administration. Basically, these filings give an indication of the products that a company is likely to have in the market.

With these developments, Shasun Pharma expects to achieve a turnover of Rs 15000.000 Millions in 2013-14, Kumar said. In 2011-12, the company’s turnover was Rs 10660.000 Millions.

SHASUN PHARMACEUTICALS LIMITED AND DEBIOPHARM GROUP™ ENTER INTO LICENSING AGREEMENT

10th April 2013, 09:00 GMT

Shasun Pharmaceuticals Limited and Debiopharm Group™ enter into licensing agreement for the manufacturing and commercialization of Huperzine-A

 

Lausanne, Switzerland and Chennai, India – April – Shasun Pharmaceuticals Limited, a global pharmaceutical contracting organization offering world class capabilities and facilities to provide services and manufacturing at every scale across the whole drug development lifecycle and Debiopharm Group™ (Debiopharm) a Swiss-based global biopharmaceutical group with a focus on the development of innovative prescription drugs that target unmet medical needs, entered into a licensing agreement for the manufacturing and commercialization of Huperzine-A.

Huperzine-A is a potent and reversible acetylcholinesterase inhibitor and clinical studies have shown a significant improvement in memory deficit and cognitive performance in patients with Alzheimer’s disease. Huperzine-A is commercially available through Shasun Pharmaceuticals.

According to the terms of the agreement, Shasun Pharmaceuticals Ltd will be able to use the Debiopharm technology for the manufacture of synthetic Huperzine-A under GMP quality conditions and commercialize it in pharmaceutical and nutraceutical markets.

The manufacturing technology involves a 10-stage chemical synthesis process including a complex chiral organometallic step as a key transformation of the Huperzine-A structure. The synthesis is a result of a joint collaboration between Shasun’s research centers in Chennai and the UK.

This technology was recently recognized and awarded at the North East of England Process Industry Cluster (NEPIC), Innovation Awards in 2012. NEPIC is a stand-alone company created to represent the 500+ Pharmaceutical, Biotechnology, Specialty Chemical, Polymer and Rubber, Petrochemical and Commodity Chemical companies based in the North East of England.

Commenting on the agreement, Dr Mauvernay, President and founder of Debiopharm Group™ said, “We are delighted to continue our collaboration with Shasun Pharmaceuticals Limited Clinical studies have demonstrated the drug to enable significant improvement in both memory deficit and cognitive performance and we are excited to have the opportunity to add value to this technology while contributing to improve people’s quality of life.”

Dr Michel Spagnol, President of Shasun Pharmaceuticals Limited added, “We are very proud of this achievement, resulting from a very close collaboration with Debiopharm. It underlines our commitment to delivering cutting-edge science in all our processes through our global research and development network.” Huperzine-A is commercially available through Shasun Pharmaceuticals Limited.

About Debiopharm Group™

Debiopharm Group™ (Debiopharm) is a Swiss-based global biopharmaceutical group of companies with a focus on the development of prescription drugs that target unmet medical needs. The group in-licenses, develops and/or co-develops promising biological and small molecule drug candidates having reached clinical development phases I, II or III, as well as earlier stage candidates. It develops its products for global registration and maximum commercial potential. The products are out-licensed to pharmaceutical partners for sales and marketing. Debiopharm is also active in the field of companion diagnostics with a view to progressing in the area of personalized medicine. Debiopharm independently funds the worldwide development of all of its products while providing expertise in pre-clinical and clinical trials, manufacturing, drug delivery and formulation, and regulatory affairs.

About Shasun Pharmaceuticals Limited

Shasun Pharmaceuticals Limited is a global pharmaceutical contracting organization offering world class capabilities and facilities to provide services and manufacturing at every scale across the whole drug development lifecycle. The company offers formulation and generic manufacturing services at its India sites together with a contract research and manufacturing service for APIs (Active Pharmaceutical Ingredients) in India and the UK.

SHASUN APPOINTS KEVIN COOK TO ACCELERATE BUSINESS GROWTH

29 August 2013

 

Shasun has appointed Kevin Cook as President - Business Growth from 1 August 2013 with a remit to accelerate company growth and increase sales.

 

Kevin will be based at UK manufacturing facility at Dudley, Northumberland and will report directly to Shasun Managing Director, Abhaya Kumar. He will work closely with the Shasun’s business development teams to promote the company’s manufacturing offering. Shasun provide a unique “East-West” offering to the healthcare market and Kevin’s key areas of focus will involve increasing the manufacturing customer portfolio, identifying and creating new business lines and expanding Shasun’s Active Pharmaceutical Ingredient (API) offerings.

 

Kevin is highly experienced in both the operational and commercial disciplines within the pharmaceutical manufacturing industry. Almost 30 years of experience in the industry culminated in his being named President of Shasun Pharma Solutions Limited, Dudley in 2008. Kevin held that role for three years before moving to the pharmaceutical company Aesica in April 2011 as Managing Director, API Business Unit. Shasun is delighted that he has now decided to rejoin their global team.

 

Abhaya Kumar said “I believe that appointing Kevin to this new and challenging role provides us with a cutting edge advantage as we look to continue our worldwide growth strategy. Kevin has a global reputation in the pharmaceutical and healthcare industry and his knowledge of the healthcare business together with his worldwide

contacts will be vital as we work to increase our market share and sales portfolio”.

 

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 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. 62.24

UK Pound

1

Rs. 99.89

Euro

1

Rs. 84.22

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

51

 

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.