MIRA
INFORM REPORT
|
Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
AARTI DRUGS LIMITED |
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|
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|
Registered
Office : |
Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi,
District Thane – 401506, |
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Country : |
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|
|
Financials (as
on) : |
31.03.2014 |
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|
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Date of
Incorporation : |
28.09.1984 |
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|
|
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Com. Reg. No.: |
11-055433 |
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Capital
Investment / Paid-up Capital : |
Rs.121.086 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L37060MH1984PLC055433 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA18926F/ MUMA20113C |
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|
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PAN No.: [Permanent Account No.] |
AAACA4410D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Selling of Pharmaceuticals and Bulk Drugs. |
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|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10000000 |
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|
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having good track record. Fundamental of the company is decent. Financial position of the
company is strong and healthy. Trade relation reported to be fair. Business is active. Payment terms
are reported to be regular and as per commitment. The company can be considered normal for business dealing at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the GDP
of the world on a purchasing power parity basis has seen a sizeable shift. It
highlights how as against 51 % in 2005, the emerging economies now account for
close to 56 % of the global purchasing power GDP as per the latest survey. And
with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund
manager Jim Chanos has been keenly following the political and economic
development in the dragon economy and has figured out something that is quite
worrying. He is of the view that the Chinese economy could be heading toward
trouble on account of new Chinese President Xi Jingping’s very aggressive
anti-corruption drive. Chanos believes tat many things such as apartment sales,
luxury products, etc. were largely bought with dirty money. And it is now
beginning to impact consumption. This may indeed be bad news for an economy
that is struggling to transition from an investment-driven export-oriented
economy to a domestic consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets including
equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate
outperformed every other asset classes during the 23-year period with an
annualized return of 20 % ! Equities came in second with annualized return of
15.5 % ! However, while these returns may seem mouthwatering, the fact is that
the return from equities adjusted for inflation came down to just 7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term - Term Loan = A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
June 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term - Fund Based = A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
June 2014 |
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
31-03-2014.
LOCATIONS
|
Registered Office : |
Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi, District
Thane – 401506, Maharashtra, India |
|
Tel. No.: |
91-22-24072249 (5 Lines) / 52571698/ 24019025 |
|
Fax No.: |
91-22-24073462/ 24070144 |
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E-Mail : |
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Website : |
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Corporate Office : |
Mahendra
Industrial Estate, Ground Floor, Plot No. 109-D Road, No. 29, Sion (East),
Mumbai-400 022, Maharashtra, |
|
Tel. No.: |
91-22-24019025
(30 Lines) |
|
Fax No.: |
91-22-24073462 /
24070144 |
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|
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|
Factory 1 : |
Plot Nos N-198,
G-60, E-120, K-40, K-41, E-9/3-4 and E-21/22, MIDC Industrial Area, Tarapur,
Village Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India |
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|
|
Factory 2 : |
Plot Nos. 2902/2904,
GIDC, Sarigam – 396155, District Valsad, |
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|
|
Research and
Development Centers : |
·
Plot
Nos. N-198 and G-60, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka
Palghar, Thane – 401506, ·
Plot Nos.
D-277/278, TTC Industrial Area, Turbhe, Navi Mumbai, |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Chandrakant
V. Gogri |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Rajendra V.
Gogri |
|
Designation : |
Chairman (w.e.f.
16 August, 2012) |
|
|
|
|
Name : |
Mr. Prakash M.
Patil |
|
Designation : |
Managing Director
and Chief Executive Director |
|
Date of Birth/Age : |
16.08.1947 |
|
Qualification : |
B. Chem. |
|
Date of Appointment : |
05.01.1985 |
|
|
|
|
Name : |
Mr. Harshit M.
Savla |
|
Designation : |
Joint Managing
Director |
|
Date of Birth/Age : |
19.11.1962 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
02.01.1987 |
|
|
|
|
Name : |
Mr. Harit P. Shah |
|
Designation : |
Whole Time
Director |
|
Date of Birth/Age : |
12.10.1963 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
15.09.1995 |
|
|
|
|
Name : |
Mr. Uday M. Patil |
|
Designation : |
Whole Time
Director |
|
Date of Birth/Age : |
23.06.1963 |
|
Qualification : |
H.S.C. |
|
Date of Appointment : |
18.10.2000 |
|
|
|
|
Name : |
Rashesh
C. Gogri (w.e.f. 16th August, 2012) |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. Ramdas M. Gandhi |
|
Designation : |
Independent Directors |
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|
|
|
Name : |
Mr. Bhavesh R. Vora |
|
Designation : |
Independent Directors |
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|
Name : |
Prof. Krishnacharya G. Akamanchi |
|
Designation : |
Independent Directors |
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|
|
|
Name : |
Dr. Vilas G. Gaikar |
|
Designation : |
Independent Directors |
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|
|
|
Name : |
Mr. Sunil M.
Dedhia |
|
Designation : |
Independent Directors |
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|
|
|
Name : |
Mr. Navin C. Shah |
|
Designation : |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Mr. Sunny Pagre |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Adhish P. Patil |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6372916 |
52.63 |
|
|
882866 |
7.29 |
|
|
7255782 |
59.92 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7255782 |
59.92 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
8531 |
0.07 |
|
|
10000 |
0.08 |
|
|
18531 |
0.15 |
|
|
|
|
|
|
185822 |
1.53 |
|
|
|
|
|
|
2153851 |
17.79 |
|
|
2441544 |
20.16 |
|
|
53020 |
0.44 |
|
|
40545 |
0.33 |
|
|
12475 |
0.10 |
|
|
4834237 |
39.92 |
|
Total Public shareholding (B) |
4852768 |
40.08 |
|
Total (A)+(B) |
12108550 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
12108550 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Pharmaceuticals and Bulk Drugs. |
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Products : |
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PRODUCTION STATUS (As on: 31.03.2014)
|
Particulars |
Unit |
*Licensed |
Installed |
Production |
Captive |
Net Production |
|
|
|
|
|
|
|
|
|
Pharmaceuticals |
Kgs. |
-- |
14,460 |
11,482.07 |
2,357.53 |
9,124.54 |
|
|
|
|
(29,544) |
(23,963.90) |
(2,277.11) |
21,686.79 |
NOTE: * As license is not required Licensed Capacity
not given.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
·
Bank of Baroda ·
Union Bank of India ·
State Bank of India ·
The Bank of Nova Scotia ·
Standard Chartered Bank ·
DBS Bank Limited ·
IDBI Bank Limited ·
Citi Bank N.A. ·
HSBC ·
ICICI Bank Limited ·
Kotak Mahindra Bank Limited ·
Indusind Bank |
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Facilities : |
(Rs.
In Millions)
NOTE: Securities for loans taken from Banks:
Note: 1) Above term loan are secured by pari-pasu first charge by way of
mortgage of immovable properties and hypothication of moveable fixed assets,
both present and future situated at MIDC Boisar, viz Plot No. N-198, G-60,
E21& E22, K-40,
K-41 E120, E9/3, & E9/4, and MIDC Turbhe Plot No. D-277 & D-278 in
Maharashtra and at GIDC, Sarigam, Bhilad – Gujarat viz.
Plot No. 2902, 2904 & Plot No. 211, 213. The working directors of the
Company havepersonally guaranteed Corporate Loan of 3,32.900 Lakhs from State
Bank of India. 2)
Kotak Mahindra Bank loan is also secured by second charge on current assets
of the Company both present and future. b. Loans from Scheduled Banks 17,186.80
lakhs are secured by hypothecation of Company's raw materials stock, stock-in-process,
finished goods, packing materials, stores & spares, book debts, and all
other current assets including goods in transit governed by documents of
title and also pari-passu second charge by way of mortgage of immovable
properties and hypothecation of movable fixed assets, both present and future
situated at MIDC Boisar, Maharashtra viz. Plot No. N-198, G-60, E-21 &
22, K-40 & K-41, E-120 and E-9/3 & E-9/4, and at Turbhe Plot No.
D-277 & D-278. GIDC, Bhilad,
Sarigam – Gujarat viz. Plot No. 2902, 2904, & 211, 213 |
|
|
|
|
Banking
Relations : |
--- |
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|
|
|
Auditors : |
|
|
Name : |
Parikh Joshi and
Kothare Chartered Accountants |
|
Address : |
49/2341, M. H. B. Colony, Gandhi Nagar,
Bandra (East), Mumbai – 400051, |
|
|
|
|
Solicitors: |
M.P. Savla and Company, Bharat House, 2nd floor, 104 Mumbai
Samachar Marg, Mumbai – 400 001. |
|
|
|
|
Associates: |
·
Huanggang Yinhe Aarti Pharmaceutical Company
Limited |
|
|
|
|
Enterprise/firms over which controlling individuals have significant
influence. |
·
Aarti Industries Limited ·
Anushakti holdings Limited ·
Rupal Drugs LLP ·
Anushakti Chemical and Drugs Limited ·
Gogri and Sons Investments Private Limited ·
Alchemie Gases and Chemicals Private Limited ·
Alchemie Leasing and Financing Private Limited ·
Alchemie Pharma chem Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21500000 |
Equity Shares |
Rs.10/- each |
Rs.215.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12108550 |
Equity Shares |
Rs.10/- each |
Rs.121.086
Millions |
|
|
|
|
|
NOTE:
Reconciliation
|
Particulars |
Numbers |
(Rs.
In Millions) |
|
Opening outstanding shares |
12108550 |
121.085 |
|
Closing outstanding shares |
12108550 |
121.085 |
|
Note: There is no movement in shares during
the year |
|
|
Disclosures of shares held by each shareholders more than 5% shares:
|
Name of Shareholders |
As at 31st March, 2014 |
As at 31st March, 2013 |
||
|
No. of Share held |
% held |
No. of Share held |
% held |
|
|
Prakash M. Patil |
985251 |
8.14 |
966464 |
7.98 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
121.086 |
121.086 |
121.085 |
|
(b) Reserves & Surplus |
2387.953 |
1954.993 |
1643.713 |
|
(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) |
2509.039 |
2076.079 |
1764.798 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
766.420 |
807.046 |
669.238 |
|
(b) Deferred tax liabilities (Net) |
310.120 |
275.118 |
244.720 |
|
(c) Other long term liabilities |
115.085 |
100.331 |
77.100 |
|
(d) long-term provisions |
0.000 |
28.574 |
0.000 |
|
Total Non-current Liabilities (3) |
1191.625 |
1211.069 |
991.058 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2655.975 |
2149.835 |
2055.704 |
|
(b) Trade payables |
1501.783 |
1318.933 |
937.857 |
|
(c) Other current
liabilities |
441.848 |
302.407 |
286.561 |
|
(d) Short-term provisions |
197.142 |
138.865 |
90.216 |
|
Total Current Liabilities (4) |
4796.748 |
3910.040 |
3370.338 |
|
|
|
|
|
|
TOTAL |
8497.412 |
7197.188 |
6126.194 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
3725.262 |
2912.310 |
2735.363 |
|
(i) Tangible assets |
0.000 |
0.000 |
0.000 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
83.155 |
125.889 |
29.909 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
46.190 |
51.319 |
69.184 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
70.430 |
25.572 |
22.659 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
3925.037 |
3115.090 |
2857.115 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1267.258 |
1409.191 |
979.076 |
|
(c) Trade receivables |
2765.209 |
2156.748 |
1806.035 |
|
(d) Cash and cash
equivalents |
43.980 |
28.788 |
49.439 |
|
(e) Short-term loans and
advances |
222.059 |
196.033 |
271.487 |
|
(f) Other current assets |
273.869 |
291.338 |
163.042 |
|
Total Current Assets |
4572.375 |
4082.098 |
3269.079 |
|
|
|
|
|
|
TOTAL |
8497.412 |
7197.188 |
6126.194 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9699.372 |
8248.414 |
6592.609 |
|
|
|
Other Income |
18.275 |
9.057 |
30.817 |
|
|
|
TOTAL (A) |
9717.647 |
8257.471 |
6623.426 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
5708.202 |
4924.374 |
3811.201 |
|
|
|
Purchases of Stock-in-Trade |
860.248 |
854.273 |
733.602 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
56.862 |
(225.936) |
(9.166) |
|
|
|
Employees benefits expense |
324.063 |
285.287 |
248.268 |
|
|
|
Other expenses |
1304.577 |
1216.131 |
1036.818 |
|
|
|
Extraordinary items |
(9.170) |
4.363 |
11.627 |
|
|
|
TOTAL (B) |
8244.782 |
7058.492 |
5832.35 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1472.865 |
1198.980 |
791.076 |
|
|
|
|
|
|
226.719 |
|
|
Less |
FINANCIAL
EXPENSES (D) |
334.897 |
280.355 |
|
|
|
|
|
|
|
564.357 |
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1137.968 |
918.625 |
|
|
|
|
|
|
|
242.159 |
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
281.194 |
259.840 |
|
|
|
|
|
|
|
322.198 |
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
856.774 |
658.785 |
|
|
|
|
|
|
|
97.588 |
|
|
Less |
TAX (H) |
239.651 |
206.400 |
|
|
|
|
|
|
|
224.61 |
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
617.123 |
452.385 |
226.719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
1591.600 |
1325.300 |
1250.600 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Income tax of Earlier Year |
0.000 |
0.000 |
8.600 |
|
|
|
Transfer to General Reserve |
62.000 |
45.000 |
23.600 |
|
|
|
Proposed Dividend 40% |
66.600 |
48.400 |
36.300 |
|
|
|
1st Interim Dividend 30% |
36.300 |
36.300 |
24.200 |
|
|
|
2nd Interim Dividend 30% |
54.500 |
36.300 |
0.000 |
|
|
|
Tax on Dividend |
26.800 |
20.100 |
9.800 |
|
|
BALANCE CARRIED
TO THE B/S |
1962.523 |
1591.600 |
1325.300 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3502.138 |
2964.030 |
2460.501 |
|
|
TOTAL EARNINGS |
3502.138 |
2964.030 |
2460.501 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3421.337 |
2699.919 |
1793.360 |
|
|
|
Capital Goods |
29.537 |
15.492 |
4.916 |
|
|
TOTAL IMPORTS |
3450.874 |
2715.411 |
1798.276 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
50.97 |
37.36 |
17.84 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
6.35 |
5.48 |
0.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.83 |
7.99 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.45 |
16.04 |
0.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.34 |
0.32 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.36 |
1.42 |
1.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95 |
1.04 |
0.97 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
121.085 |
121.086 |
121.086 |
|
Reserves & Surplus |
1643.713 |
1954.993 |
2387.953 |
|
Net worth |
1764.798 |
2076.079 |
2509.039 |
|
|
|
|
|
|
long-term borrowings |
669.238 |
807.046 |
766.420 |
|
Short term borrowings |
2055.704 |
2149.835 |
2655.975 |
|
Total borrowings |
2724.942 |
2956.881 |
3422.395 |
|
Debt/Equity ratio |
1.544 |
1.424 |
1.364 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
6592.609 |
8248.414 |
9699.372 |
|
|
|
25.116 |
17.591 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
6592.609 |
8248.414 |
9699.372 |
|
Profit |
224.610 |
452.384 |
617.123 |
|
|
3.41% |
5.48% |
6.36% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
CASE DETAILS
BENCH:-BOMBAY
|
|
Lodging No.:- |
ITXAL/1472/2012 |
Filing Date:- |
10/10/2012 |
Reg. No.:- |
ITXA/1241/2012 |
Reg. Date:- |
25/10/2012 |
|
|
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX- 6, |
Respondent:- |
M/S. AARTI DRUGS LIMITED |
|
|
|
Petn.Adv.:- |
SURESH KUMAR |
|
|
|
District:- |
MUMBAI |
|
|
|
Bench:- |
DIVISION |
|
|
|
|
|
Status:- |
Admitted(Unready) |
Category:- |
TAX APPEALS |
|
|
|
Last Date:- |
01/03/2013 |
Stage:- |
FIRST ON BOARD |
|
|
|
Last Coram:- |
HON'BLE SHRI JUSTICE J.P. DEVADHAR |
|
|
|
|
HON'BLE SHRI JUSTICE M.S. SANKLECHA |
|
|
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
UNSECURED
LOAN
(Rs.
In Millions)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM BORROWING |
|
|
|
Loans and advances from related parties |
|
|
|
From Directors |
0.000 |
18.800 |
|
From other |
0.000 |
113.264 |
|
SHORT TERM
BORROWING |
|
|
|
Borrowing |
757.212 |
802.866 |
|
Loans and advances from related parties |
|
|
|
From Directors |
31.800 |
0.000 |
|
From other |
148.283 |
0.000 |
|
Total |
937.295 |
934.930 |
|
|
|
|
OPERATIONS REVIEW
During the year, Gross
Sales of the Company have crossed Rs.10000.000 Millions milestone at Rs.
10443.500 Millions (Previous Year Rs. 8857.500 Millions) registering a growth
of 17.91%.
The Company has achieved
Export Sales of Rs. 3956.900 Millions as against Rs.3222.000 Millions for the
last year, registering a growth of 22.81%.
EBITA, has been Rs.
1463.7000 Millions (Previous Year: Rs. 1203.400 Millions), registering a growth
of 21.63%. PAT has been Rs. 617.1000 Millions (Previous Year: Rs. 452.400
Millions), registering a growth of 36.41%.
The above results were
achieved in spite of shut down of manufacturing operations on account of
notices by Pollution Control Authority which were also issued to various units
located in the Tarapur region. Due to this, four out of nine plants of the
Company had to shut its operations during October 2013. Based on the steps
taken by the Company, all the plants could resume manufacturing and had been
fully operational during November, 2013 onwards.
MANAGEMENT
DISCUSSION AND ANALYSIS
Pharmaceutical
industry – Global and Indian
The
global pharmaceutical market is expected to reach $ 1.2 trillion by 2017, due
to increased global spending.
Pharmerging
market is expected to reach 28% of global spending in 2015, whereas US and EU-5
will account for 44% of the global spending. The CAGR of developed market will
be 1 to 4% and CAGR of pharmerging market will be 11 to 14% by 2017. Due to
globalization, pharmerging countries increased from 5 to 21 and healthcare
improvement will continue to be their priority. Many of these countries are
implementing healthcare reforms to ensure universal coverage.
The
Indian pharmaceutical industry accounts for about 1.4% of the global
pharmaceutical industry in value terms and 10% in volume terms. It's revenue is
expected to expand at a CAGR of 17.8% from the year 2008 to year 2016, by
nearly $ 36 billion. The generic market is expected to grow to $ 26.1 billion
by 2016 and has immense potential for growth. India is the fourth largest
player by value with 5.7% market share of Asia-Pacific. Indian pharmaceutical
industry has many advantages in terms of efficient cost of production, good
R&D technical work force for process improvements, lower healthcare costs,
diversified array of products viz., over 60,000 generics brands across 60
therapeutic categories comprising of more than 500 different APIs. Economic
prosperity, increased drugs affordability and increasing penetration of health
insurance along with government initiatives like pharma vision 2020' will
propel India to become a global leader as a end-to-end drug manufacturer.
BUSINESS STRATEGY
Domestic
Market and Trends:
The
domestic formulation market has witnessed a healthy growth in demand in the
past five years. Going forward, this trend is expected to continue broadly
based on growing population, increasing health awareness and an increasing per
capita income leading to a large overall healthcare spend. The market is
expected to grow with a CAGR of 13.5% to reach a size of US $17.3 billion in
2014-15. Indian bulk drug industry has grown as a direct offset of formulation
growth world-wide.
Aarti
Drugs Limited (ADL) has a strong regulatory framework and cGMP level
documentation which is now a
standard
requirement of most of the big Indian pharmaceutical companies. High process
efficiency and high standard for quality has created good brand name for ADL in
the space of Antibiotic, Antidiabetic, Antifungal, Antidiarrheal,
Anti-inflammatory and Antihypertensive therapeutic segments. Indian
pharmaceutical market is growing fast due to penetration of health services in
rural areas of the country. There is also a shift in demand from drugs treating
hygiene related diseases to drugs treating lifestyle related diseases in the
urban sector. ADL has capital expenditure plans worth more than INR 150 crores
for coming 18 months for constructing new facilities, few of which are expected
to start giving production output from 2014-15. These will cater to ever
increasing Antibiotic, Antidiarrheal & Anti-inflammatory segments. ADL has
installed new plant at Sarigam (GIDC), which will cater Anti-diabetic segment
and will increase it's current capacity from 100 metric tons per month (TPM) to
600 TPM. The plant is already operational and will contribute to incremental
revenues for the year 2014-15.
Export
Market and Trends:
Indian
bulk drug companies have filed 49% of the overall drug master filings (DMFs)
made in the US in 2012,
Which
will help Indian pharmaceutical companies to capitalize further on export
opportunities in regulated and
Semi-regulated
markets.
The
phenomenal growth of global generics market in past few years is expected to
continue for next five years.
The
global generics market has grown at a phenomenal pace in past few years, and is
expected to grow over the
next
five years. Significant portion of bulk drugs manufactured in India is exported
as compared to developed
Countries,
where bulk drugs are primarily manufactured for captive consumption.
ADL
management expects to address concerns arising out of USFDA warning letter
received in July'13 in the year 2014-15. We have taken necessary
corrective/remedial actions after consulting USFDA consultant which satisfied
to the USFDA authorities and expect a re-audit soon. ADL did suffer a setback
on account of this in the year 2013-14, which is expected to be recouped in the
year 2014-15. However, other facilities of ADL continues to maintain cGMP
certifications like COFEPRIS, ANVISA, TGA, WHO GMP and ISO resulting in 22.8%
growth of export sales in the year 2013-14.
OUTLOOK
The
Company's R&D programs are currently focused on new products related to
lifestyle related diseases like Diabetics, Cardiovascular, Dementia,
Hypertension, Cholesterol, Hyperphosphatemia, etc. These products would be
developed along with their DMFs in a time-horizon of 2-4 years. This falls in
line with the vision of expanding ADL's presence in the regulated markets.
Company will continue to do R&D on APIs that are off patents and will work
on non-infringing route of synthesis. ADL has also tied up with few formulation
partners on profit sharing model and Company aiming to file 4-5 dossiar and
ANDA in the year 2014-15.
ADL
plans to launch more products in ‘Fluoroquinolones' series, making it one of
the strongest in Anti-biotic segment. Majority market share and sheer economies
of scale with strong technological backup will continue to remain key strengths
of ADL. Many projects target to cater US market are in pipeline and are
expected to commercialize soon. ADL is also planning to start green-field
expansion program of its USFDA facilities in the year 2014-15
STATEMENT OF AUDITED FINANCIAL RESULT FOR THE QUARTER AND YEAR ENDED 30th
JUNE, 2014
(Rs. In Millions)
|
Sr. |
|
Quarter Ended |
|
No |
PARTICULARS |
30.06.2014 |
|
|
|
(Audited) |
|
1 |
Income from Operations |
|
|
|
(a) Gross Sales / Income from Operations |
2787.700 |
|
|
Less : Excise Duty & Sales Tax |
191.700 |
|
|
(a) Net Sales / Income from Operations (Net Of Excise Duty & Sales Tax) |
2596.000 |
|
|
(b) Other Operating Income |
1.000 |
|
|
Total income from operations (net) |
2597.000 |
|
2 |
Expenditure |
|
|
|
(a) Cost of materials consumed |
1670.900 |
|
|
(b) Purchase of stock-in-trade |
319.500 |
|
|
(c) Changes in inventories of finished
goods, work-in-progress and stock-in-trade |
(205.200) |
|
|
(d) Employee benefits expense |
87.200 |
|
|
(e) Depreciation and Amortisation Expense |
74.100 |
|
|
(f) Other expenses |
326.100 |
|
|
Total expenses |
2272.500 |
|
3 |
Profit from Operations before Other Income,
finance costs and exceptional items (1-2) |
324.500 |
|
4 |
Other Income |
- |
|
5 |
Profit from ordinary activities before
finance cost and exceptional items (3+4) |
324.500 |
|
6 |
Finance costs (interest) |
98.200 |
|
7 |
Profit from ordinary activities after
finance cost but before Exceptional Items (5-6) |
226.200 |
|
8 |
Exceptional Items |
- |
|
g |
Profit from Ordinary Activities before Tax
(7-8) |
226.200 |
|
10 |
Tax Expenses (Includes) |
53.900 |
|
|
Provision for Taxation Current |
48.000 |
|
|
MAT
Credit Entitlement |
(2.100) |
|
|
Earlier
Years |
- |
|
|
Provision for Deferred Taxation |
8.000 |
|
11 |
Net profit from ordinary Activities after
Tax (9-10) |
172.400 |
|
12 |
Extraordinary item |
- |
|
13 |
Net profit for the year |
172.400 |
|
14. |
Paid-up Equity Share Capital of Rs.10/-
each. |
121.100 |
|
|
Reserves & Surplus (excluding revaluation
reserves) |
- |
|
|
Earning per share (of Rs. 10 /- each) (not
annualised) |
|
|
|
Basic & Diluted (Before extra-ordinary
item) |
14.24 |
|
|
Basic & Diluted (After extra-ordinary
item) |
0.00 |
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
1 |
Public shareholding |
|
|
|
-
Number of Shares |
4852768 |
|
|
-
Percentage of Total Shareholding |
40.08 |
|
2 |
Promoters & Promoter Group shareholding a) Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
|
|
- Percentage
of shares( as a % of the total shareholding of promoter and promoter group) |
Nil |
|
|
-
Percentage of shares( as a % of the total Share capital of the
company) |
Nil |
|
|
b) Non-encumbered |
|
|
|
-
Number of Shares |
7255782 |
|
|
- Percentage
of shares( as a % of the total Shareholding of promoter and promoter group) |
100 |
|
|
-
Percentage of shares( as a % of the total Share capital of the
company) |
59.92 |
|
B INVESTOR
COMPLAINTS |
Quarter Ended 30.06.2014 |
|
Pending at the beginning of the quarter |
0 |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the
quarter |
0 |
NOTES:
· The above results, reviewed by the Audit Committee, have been taken on record by the Board of Directors at their meeting held on 8th August, 2014
· Company is operating as a single Segment Company, engaged in Pharmaceuticals Business
· Figures for the previous period have been regrouped or rearranged wherever necessary.
· The estimated useful lives of fixed assets have been reviewed and revised to align with the provision of PART C of Schedule II to the Companies Act 2013, effective from April 1, 2014.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10459076 |
18/10/2013 |
350,000,000.00 |
State Bank of India |
Industrial Finance Branch, Devchand House,, 1st f |
B89107965 |
|
2 |
10416348 |
05/04/2013 |
400,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, Gujarat - 390015, INDIA |
B72179666 |
|
3 |
10277975 |
11/10/2013 * |
5,624,300,000.00 |
Axis Bank Limited |
TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLE, LAW G |
B86988599 |
|
4 |
10075106 |
16/10/2007 |
150,000,000.00 |
INDUSTRIAL DEVELOPMENT BANK OF INDIA LIMITED |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
A26550061 |
|
5 |
90150595 |
22/12/2008 * |
1,313,050,000.00 |
UNION BANK OF INDIA |
UNIONBANK BHAVAN,239, VIDHAN BHAVAN MARG, NARIMAN |
A54286406 |
* Date of charge modification
FIXED ASSETS
·
Building
·
Furniture
·
Land
·
Office Equipments
·
Plant and Machinery
·
Vehicles
·
Tradename
·
Technical Knowhow
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.05 |
|
|
1 |
Rs.101.83 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
ARI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.