MIRA INFORM REPORT
|
Report Date : |
28.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
NEULAND LABORATORIES LIMITED |
|
|
|
|
Registered
Office : |
Sanali Info Park, ‘A’ Block, Ground Floor, 8-2-120/113, Road No. 2, Banjara
Hills, Hyderabad – 500034, Andhra Pradesh |
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|
|
|
Country : |
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Financials (as
on) : |
31.03.2013 |
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|
|
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Date of
Incorporation : |
07.01.1984 |
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|
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Com. Reg. No.: |
01-004393 |
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|
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Capital Investment
/ Paid-up Capital : |
Rs.77.160 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L85195AP1984PLC004393 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDN00013G HYDN00131F |
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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
: |
The Company is engaged in the manufacturing and selling of bulk drugs. |
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|
|
|
No. of Employees
: |
693 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3900000 |
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|
|
|
Status : |
Moderate |
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|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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|
Comments : |
Subject is an established company having moderate track record. The rating takes in to consideration the moderate financial
performance and average liquidity position. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term rating = B+ |
|
Rating Explanation |
Risk prone credit quality and high risk of
default |
|
Date |
01.04.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term rating = A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk |
|
Date |
01.04.2013 |
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.
INFORMATION DENIED BY
|
Name : |
Mr. Bhardwaj |
|
Designation : |
Chief Finance Officer |
|
Contact No.: |
91-40-30211600/666 |
|
Date : |
27.02.2014 |
LOCATIONS
|
Registered Office / Corporate Office : |
Sanali Info Park, ‘A’ Block, Ground Floor, 8-2-120/113, Road No. 2, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India |
|
Tel. No.: |
91-40-30211600/ 23551081 |
|
Fax No.: |
91-40-30211602 |
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E-Mail : |
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|
Website : |
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Manufacturing Facilities : |
Unit 1: Village: Bonthapally Mandal: Jinnaram District: Medak,
Andhra Pradesh Unit 2 IDA, Pashamylaram, Isnapur, Patancheru (M) Medak, Dist –
502 319,
Unit 3 Plot No. 92-94, 257-259
Industrial Development Area, Village:
Pashamylaram, Mandal: Patancheru, District: Medak, |
|
|
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|
Overseas Office : |
US Office 2500, Regency
Parkway, Tel No: +1 (919) 654 6833 Fax No: +1 (919) 654 6834 E-Mail: johnpinna@neulandabs.com 2F Maruishi Building
Bekkan (Annex), 1-10-1 Kajicho, Chiyoda-ku, Tel No: 81-3-3526-5171 Fax No: 81-3-3526-5172 E-Mail: ykizawa@neulandlabs.com |
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|
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Research and
Development: |
Bonthapalli (V), |
DIRECTORS
As on 31.03.2013
|
Name : |
Dr. D. R. Rao |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
Masters in Science
from Andhra University, Post Graduate Diploma in Technology from IIT
Kharagpur and a PhD in Organic Chemistry from the University of Notre Dame |
|
|
|
|
Name : |
Mr. Davuluri Sucheth Rao |
|
Designation : |
Whole-time Director and Chief Executive Officer |
|
Qualification : |
Mechanical
Engineer by profession and has a MBA in Corporate Finance and Operations
Management from University of Notre Dame, USA |
|
|
|
|
Name : |
Mr. Davuluri Saharsh Rao |
|
Designation : |
Whole-time Director and President-Contract Research |
|
Qualification : |
Engineering
Graduate and obtained his Masters in MIS from Weatherhhead School of
Management, Cleveland, Ohio, USA. |
|
|
|
|
Name : |
Mr. G. V. K. Rama Rao |
|
Designation : |
Non-Executive Director and One of the promoters |
|
Qualification : |
LLB |
|
|
|
|
Name : |
Mr. Nadeem Panjetan |
|
Designation : |
Director, represents the Export-Import Bank of India |
|
Qualification : |
Commerce Graduate and has completed his Post-Graduation in Master of
Arts. |
|
|
|
|
Name : |
Mr. Humayun Dhanrajgir |
|
Designation : |
Independent Director |
|
Qualification : |
Tech, MI, CHEM (E) |
|
|
|
|
Name : |
Mr. Parampally Vasudeva Maiya |
|
Designation : |
Independent Director |
|
Qualification : |
Master of Arts |
|
|
|
|
Name : |
Mr. Shashi Bhushan Budhiraja |
|
Designation : |
Independent |
|
Qualification : |
B. Tech |
|
|
|
|
Name : |
Dr. Christopher M. Cimarusti |
|
Designation : |
Non-Executive Director |
|
Qualification : |
PhD in Organic
Chemistry |
|
|
|
|
Name : |
Dr. Will Gordon Mitchell |
|
Designation : |
Independent Director |
|
Qualification : |
PhD from the School
of Business Administration of the University of California, Berkeley |
KEY EXECUTIVES
|
Name : |
Mr. N. S. Viswanathan |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ms. Sarada Bhamidipati |
|
Designation : |
Company Secretary and Compliance officer |
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Audit Committee
: |
Mr. Parampally Vasudeva Maiya Mr. Humayun Dhanrajgir Mr. Shashi Bhushan Budhiraja Mr. Nadeem Panjetan Mr. D. Sucheth Rao |
|
|
|
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Remuneration
Committee : |
Mr. Parampally Vasudeva Maiya Mr. Humayun Dhanrajgir Mr. Shashi Bhushan Budhiraja |
SHAREHOLDING PATTERN
As on 31.12.2013
|
Names of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
900 |
0.01 |
|
|
3826679 |
50.05 |
|
|
3827579 |
50.07 |
|
|
|
|
|
|
200 |
0.00 |
|
|
200 |
0.00 |
|
Total shareholding of Promoter and Promoter Group (A) |
3827779 |
50.07 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
400 |
0.01 |
|
|
500 |
0.01 |
|
|
900 |
0.01 |
|
|
|
|
|
|
379890 |
4.97 |
|
|
|
|
|
|
1154918 |
15.11 |
|
|
1384224 |
18.11 |
|
|
897267 |
11.74 |
|
|
7063 |
0.09 |
|
|
600000 |
7.85 |
|
|
290204 |
3.80 |
|
|
3816299 |
49.92 |
|
Total Public shareholding (B) |
3817199 |
49.93 |
|
Total (A)+(B) |
7644978 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
7644978 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the manufacturing and selling of bulk drugs. |
GENERAL INFORMATION
|
No. of Employees : |
693 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Statutory Auditors : |
|
|
Name : |
K. S. Aiyar and Company Chartered Accountants |
|
Address : |
# F-7 Laxmi Mills, Shakti Mills Lane, (Off Dr. E. Moses Road),
Mahalaxmi, Mumbai - 400 011, Maharashtra, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Grant Thornton India LLP Chartered Accountants |
|
Address : |
7th Floor, Block III, White House, Kundan Bagh, Begumpet, Hyderabad
500 016, Andhra Pradesh, India |
|
|
|
|
Holding
Company : |
Neuland Health Sciences Private Limited |
|
|
|
|
Fellow
Subsidiary : |
Neuland Pharma Research Private Limited |
|
|
|
|
Subsidiary
Companies : |
|
CAPITAL STRUCTURE
After 31.03.2013
Authorised Capital: Rs.160.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.76.557
Millions
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.00 Millions |
|
300000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.30.00 Millions |
|
300000 |
Cumulative or Non-cumulative and Redeemable Preference Shares |
Rs.100/- each |
Rs.30.00 Millions |
|
|
Total |
|
Rs.160.000
Millions |
Issued, Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7838523 |
Equity Shares |
Rs.10/- each |
Rs.78.390 Millions |
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7748254 |
Equity Shares |
Rs.10/- each |
Rs.77.480 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7644978 |
Equity Shares |
Rs.10/- each |
Rs.76.450 Millions |
|
|
Add: Forfeited Shares |
|
Rs.0.710 Million |
|
|
Total |
|
Rs.77.160
Millions |
Reconciliation of
number of equity shares outstanding at the beginning and at the end of the year
|
Equity Shares |
Number
of Shares |
|
Number of equity shares outstanding at the beginning of the year |
5396455 |
|
Add: Issued during the year |
2248523 |
|
Number of equity shares outstanding at the end of the year |
7644978 |
The Company had on April 27, 2012,
allotted 2,248,523 equity shares of a face value of Rs.10 each for cash at a
price of Rs.45 per equity share, including a Share Premium of Rs.35 per equity share, aggregating to
Rs.101.180 million to the existing equity shareholders of the Company on a
rights basis in the ratio of 5 shares for every 12 shares held.
Expenses incurred by the Company in
relation to Rights Issue activity aggregating to Rs.5.810 Millions were
adjusted to the securities premium account.
The utilization of the proceeds from the Rights Issue of Rs.101.180
Millions is as follows:
Rs. In Millions
|
Particulars |
Proposed
Utilisation |
Actual
Utilisation |
|
Incremental Working Capital Requirement |
95.000 |
95.370 |
|
Issue Expenses |
6.180 |
5.810 |
|
Total |
101.180 |
101.18 |
Terms / Rights attached to equity shares
The Company has only
one class of equity shares having par value of Rs.10 per share. Each
shareholder of equity shares is entitled to one vote per share. The Company
declares and pays dividend in Indian Rupees. The dividend proposed by the Board
of Directors is subject to prior consent from the Banks and approval of the
shareholders in the ensuing Annual General Meeting.
In the event of
liquidation of the Company, the holders of the equity shares will be entitled
to receive remaining assets of the Company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholder.
Details of equity shares held by shareholders holding more than 5%
shares:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Neuland Health
Sciences Private Limited |
3826679 |
50.05 |
|
Unipharm Limited
|
600000 |
7.85 |
|
Dr. Davuluri Rama Mohan Rao* |
- |
- |
* As on March 31, 2013, Dr. Davuluri Rama Mohan Rao holds less than 5% of
the total shareholding in the Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
77.160 |
54.670 |
54.670 |
|
(b) Reserves & Surplus |
908.640 |
696.110 |
676.610 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.240 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
985.800 |
751.020 |
731.280 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
511.100 |
559.000 |
715.790 |
|
(b) Deferred tax liabilities (Net) |
27.070 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
33.300 |
10.000 |
0.000 |
|
(d) long-term
provisions |
47.050 |
38.490 |
26.660 |
|
Total Non-current
Liabilities (3) |
618.520 |
607.490 |
742.450 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1,353.150 |
1,320.330 |
1,339.660 |
|
(b) Trade
payables |
786.880 |
1,106.690 |
1,043.460 |
|
(c) Other
current liabilities |
426.260 |
414.420 |
380.700 |
|
(d) Short-term
provisions |
76.520 |
54.350 |
35.920 |
|
Total Current Liabilities
(4) |
2,642.810 |
2,895.790 |
2,799.740 |
|
|
|
|
|
|
TOTAL |
4,247.130 |
4,254.300 |
4,273.470 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1,351.310 |
1,511.050 |
1,579.800 |
|
(ii)
Intangible Assets |
3.930 |
1.890 |
3.200 |
|
(iii)
Capital work-in-progress |
356.890 |
271.490 |
272.570 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
76.410 |
76.670 |
76.670 |
|
(c) Deferred tax assets (net) |
0.000 |
18.500 |
0.000 |
|
(d) Long-term Loan and Advances |
55.250 |
56.810 |
50.900 |
|
(e) Other
Non-current assets |
80.950 |
105.910 |
109.510 |
|
Total Non-Current
Assets |
1,924.740 |
2,042.320 |
2,092.650 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
|
|
|
(b)
Inventories |
921.690 |
924.180 |
799.160 |
|
(c) Trade
receivables |
984.950 |
964.120 |
995.720 |
|
(d) Cash
and cash equivalents |
2.840 |
17.820 |
44.490 |
|
(e)
Short-term loans and advances |
314.780 |
189.100 |
212.150 |
|
(f) Other
current assets |
98.130 |
116.760 |
129.300 |
|
Total
Current Assets |
2,322.390 |
2,211.980 |
2,180.820 |
|
|
|
|
|
|
TOTAL |
4,247.130 |
4,254.300 |
4,273.470 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
4,605.860 |
4,482.340 |
3,967.950 |
|
|
|
|
Other Income |
33.180 |
17.000 |
24.640 |
|
|
|
|
TOTAL (A) |
4,639.040 |
4,499.340 |
3,992.590 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Raw Materials Consumed |
2,726.060 |
2,898.630 |
2,530.800 |
|
|
|
|
(Increase) / Decrease in Inventories of Work in Process and Finished Goods |
(34.500) |
(51.630) |
(31.710) |
|
|
|
|
Employee Benefits Expense |
348.830 |
307.830 |
260.600 |
|
|
|
|
Manufacturing Expenses |
482.980 |
384.880 |
333.510 |
|
|
|
|
Other Expenses |
501.220 |
476.160 |
399.960 |
|
|
|
|
TOTAL (B) |
4,024.590 |
4,015.870 |
3,493.160 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
614.450 |
483.470 |
499.430 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
313.300 |
332.740 |
298.370 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
301.150 |
150.730 |
201.060 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
146.220 |
148.910 |
154.110 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
154.930 |
1.820 |
46.950 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
18.560 |
(18.500) |
(3.740) |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-H) (I) |
136.370 |
20.320 |
50.690 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
82.160 |
61.84 |
11.150 |
||
|
|
|
|
|
|
||
|
Add |
Adjustments to
Opening Reserves |
14.790 |
0.000 |
0.000 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATION |
|
|
|
||
|
|
|
Proposed Equity Dividend |
9.170 |
0.000 |
0.000 |
|
|
|
|
Tax on Proposed Equity Dividend |
1.490 |
0.000 |
0.000 |
|
|
|
|
Transfer to General Reserve |
3.410 |
0.000 |
0.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
219.250 |
86.160 |
61.840 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Export Earnings |
3331.440 |
3444.950 |
2869.530 |
|
|
|
TOTAL EARNINGS |
3331.440 |
3444.950 |
2869.530 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
1148.950 |
1375.050 |
1403.230 |
|
|
|
|
Capital Goods |
0.000 |
18.680 |
23.750 |
|
|
|
TOTAL IMPORTS |
1148.950 |
1393.730 |
1426.980 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
17.84 |
3.77 |
9.39 |
||
QUARTERLY RESULTS
|
Particulars |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
1220.400 |
1051.000 |
1315.500 |
|
Total Expenditure |
1014.400 |
904.100 |
1122.300 |
|
PBIDT (Excl OI) |
206.000 |
146.900 |
193.200 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
206.000 |
146.900 |
193.200 |
|
Interest |
59.000 |
63.100 |
59.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
147.000 |
83.800 |
133.700 |
|
Depreciation |
36.500 |
37.100 |
36.800 |
|
Profit Before Tax |
110.500 |
46.700 |
96.900 |
|
Tax |
32.400 |
12.300 |
28.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
78.100 |
34.400 |
68.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
78.100 |
34.400 |
68.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.94 |
0.45 |
1.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.36 |
0.04 |
1.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.06 |
0.05 |
1.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.00 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.89 |
2.50 |
2.81 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.88 |
0.76 |
0.78 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
54.670 |
54.670 |
77.160 |
|
Reserves & Surplus |
676.610 |
696.110 |
908.640 |
|
Share Application money pending
allotment |
|
0.240 |
|
|
Net
worth |
731.280 |
751.020 |
985.800 |
|
|
|
|
|
|
long-term borrowings |
715.790 |
559.000 |
511.100 |
|
Short term borrowings |
1339.660 |
1320.330 |
1353.150 |
|
Total
borrowings |
2055.450 |
1879.330 |
1864.250 |
|
Debt/Equity
ratio |
2.811 |
2.502 |
1.891 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
3,967.950 |
4,482.340 |
4,605.860 |
|
|
|
12.964 |
2.756 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
3,967.950 |
4,482.340 |
4,605.860 |
|
Profit |
50.690 |
20.320 |
136.370 |
|
|
1.28% |
0.45% |
2.96% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
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 |
LITIGATION
DETAILS:
|
CASE STATUS INFORMATION SYSTEM CMA 414 / 2013 CMASR
10114 / 2013
CASE IS:PENDING
SUBJECT: W.C.ACT & E.S.I. ACT
DISTRICT: HYDERABAD FILING DATE: 11-03-2013
POSTING STAGE : INTERLOCUTORY REG. DATE : 02-05-2013 LISTING
DATE : 25-04-2013
STATUS : NOTICES HON'BLE JUDGE(S):
S.V.BHATT
L.NARASIMHA REDDY |
UNSECURED LOAN:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term Borrowings |
|
|
|
Inter Corporate Deposit |
250.000 |
0.000 |
|
Short Term Borrowings |
|
|
|
Inter Corporate Deposit from Related Party |
30.000 |
52.500 |
|
From Banks |
28.500 |
0.000 |
|
From Others |
0.000 |
0.000 |
|
Total |
308.500 |
52.500 |
CORPORATE
INFORMATION
The Company is a
public company domiciled in India and incorporated under the provisions of the Companies
Act, 1956. Its shares are listed on two stock exchanges in India. The Company
is engaged in the manufacturing and selling of bulk drugs. The Company caters
to both domestic and international markets.
Pursuant to the
reorganization of shareholding of the Promoter Group, the Company has become a
subsidiary Company of Neuland Health Sciences Private Limited (Formerly Sucheth
and Saharsh Holdings Private Limited), in terms of section 4(1)(b)(ii) of the
Companies Act, 1956.
ECONOMIC OVERVIEW
Economies across the globe did witness slowdown in GDP
growth in the year gone by. According to IMF’s World Economic Outlook, April
2013, Global GDP growth dipped to 3.2% in 2012 from 4% recorded in the previous
calendar year. The gains from moderate growth in the US and rebound in Japan
were set-off by contraction in the Euro zone. Developed economies confronted
inflationary pressure, tightened liquidity, slowing export and sluggish
domestic consumption. As a block, they recorded a 1.2% growth in 2012.
Indian economy too underwent the churn of inflationary
pressure, tightened liquidity, slowing domestic demand, weakened investment
sentiments and policy standstill in the fiscal year 2012-13 (FY ‘13). The fact
that the interest rates did not rise any further and few bold reforms were
announced during the latter half of the year were the only silver linings in an
otherwise gloomy FY ‘13. Indian economy also recorded its decade-low GDP growth
of 5% in the year gone by.
COMPANY OVERVIEW
Neuland Laboratories has consistently grown its business of
APIs manufacturing over 29 years, with an expertise in different therapeutic
segments. All these years, Neuland has been at the forefront of aiding and
accelerating the drug substance development and manufacturing process. The
Company offers integrated and versatile GMP
manufacturing facilities capable of handling complex
reactions tuned to ensure seamless transfer of processes from small-scale
through validation to commercial manufacturing. Neuland, thereby, helps its
customers expedite the discovery-to-market timelines.
Having developed 300 processes and 60 APIs, the Company has
filed 391 drug master files (DMFs) including those for process changes. It has also
filed for 92 patents across various geographies. Its business presence spreads
across 85 countries. Neuland has manufacturing facilities compliant with health
and regulatory agencies cGMP certifications namely, US FDA (USA), TGA
(Australia), AIFA (Italy), ANSM (France), PMDA (Japan), ANVISA (Brazil) and
KFDA (Korea) among others. It has earned the identity of a preferred and
reliable source in the pharmaceutical industry owing to:
- Consistency
in product quality
- Knowledge and
ability to deal with niche chemistry
- On-time
delivery performance
The Company’s strengths in synthetic chemistry, process
development and controlled supply chain coupled with a project management
approach built into all its operations and product development programs makes
Neuland an ideal API partner for generics. Neuland has made a successful foray
into contract manufacturing services building upon its known strengths of:
- Proven expertise in manufacturing at
varied scales
- A deep understanding of complex
chemistry
- State-of-the-art
manufacturing facilities that are compliant with the guidelines of the
leading regulatory authorities
OUTLOOK
Courtesy the strategic directions set out in FY ‘12, its robust implementation coupled with few more strategic initiatives undertaken throughout FY ‘13; Neuland stands at a very exciting juncture of its business growth.
Buoyed by a robust financial performance in FY ‘13, the Company is confident of sustaining its growth momentum in FY ‘14 and beyond. Its strategy to focus on niche, high-margin products with continuous expansion of its product portfolio will yield revenue and profitability growth over coming years. Its successful foray into contract manufacturing is likely to not only add to its revenues and profitability but flag-off its evolution as a leading contract manufacturing companies for many other pharmaceuticals companies of global repute. Its alliance with Mitsubishi Chemicals will strengthen the Company’s revenue growth over many years.
Aided by all these factors and fuelled by its vision to become one of the world’s largest and most respected APIs manufacturing company, Neuland Laboratories’ future outlook remains highly promising.
FINANCIAL RESULTS
For the financial year ended March 31, 2013, standalone revenues grew by 3.10% to reach Rs.4639.040 Millions. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) recorded a growth of 27.09% to reach Rs.614.450 Millions and Profit after Tax (PAT) grew to Rs.136.370 Millions, recording a growth of 571.11% over Rs.20.320 Millions achieved in the previous financial year.
BUSINESS REVIEW
The Company recorded its highest ever revenue of Rs.4639.040 milion. This was the third consecutive instance of the Company scaling record revenue benchmark. While the Compounded Annual Growth Rate (CAGR) of revenue for three years was 8%, the Profit before Taxes (PBT) has grown at a CAGR of 82% over the same period to reach Rs.154.93 Millions. The Company had taken several initiatives (product mix changes, scaling up new processes and improving existing manufacturing processes) that enabled it to improve the profitability. The Company also successfully completed inspections by various regulatory authorities including USFDA, ANVISA (Brazil), KFDA (Korea), AIFA (Italy) and ANSM (France).
The Company also undertook a major re-organisation of businesses aimed at de-leveraging on one hand and on the other hand narrowing the focus on core activities: APIs, Intermediates and Contract Manufacturing. Consequently, the Company divested its R&D activities by selling its Land and Building and some identified
Intellectual properties to Neuland Pharma Research Private Limited and its Peptides Research activities along with identified intellectual properties to Neuland Health Sciences Private Limited.
The above re-organisation enabled the Company to improve the cash flow by Rs.363.000 Millions during the year. This, coupled with Rs.101.180 Millions raised through the Rights Issue, enabled the Company to de-leverage and also improve its Credit Rating, a key objective of the re-organisation exercise.
In another strategic move, the Company entered into a Joint Business Arrangement with API Corporation, Japan – a part of Mitsubishi Chemical, for manufacturing and sale of APIs and Intermediates. The benefits of this arrangement are likely to start accruing towards the last quarter of FY 2014.
The Company has self-identified itself all the Manufacturing facilities with US FDA in compliance with the Generic Drug Users Fee Act 2012 (GDUFA) and also registered with the Central Drugs Standard Control Organisation (CDSCO) in compliance with the EU directive on standards for import of bulk drugs to EU.
The Company remains steadfast on continuous systemic improvements, with an aim to enhance efficiencies, profit margins and overall profitability. The management is striving to build a sustainable business model that should enhance value for all their stakeholders over coming years
OUTLOOK
The Company continues to see traction for its existing products with the momentum built over the past few years. There are nine more products that are expected to be scaled up commercially in FY14 supplementing the Company’s offerings to the market. With the Company being perceived as a preferred and reliable supplier by its customers, the order flow remains encouraging and is being met with imroved manufacturing efficiencies of both intermediates and active pharmaceutical ingredients through process improvements and developments.
There is very significant potential for the Company as a contract manufacturing organization. The development work done in earlier years has helped the Company understand the needs of the customers and, in recent times the Company has broken new ground by securing projects for commercial compounds and late phase clinical development candidates
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10317280 |
07/01/2014 * |
1,824,000,000.00 |
State Bank of India |
Overseas Branch, Plot no.
241/A, Rajala Towers, Road no.36, Jubilee Hills, Hyderabad, Andhra Pradesh -
500033, INDIA |
B94788817 |
|
2 |
10312190 |
08/07/2013 * |
100,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
Floor 21, Center One
Building,, World Trade Center, Cuffee Parade, Mumbai, Maharashtra - 400005,
India |
B81105207 |
|
3 |
10243563 |
07/01/2014 * |
50,000,000.00 |
SBI GLOBAL FACTORS LIMITED |
6th Floor, Metropolitan
Building, Bandra-Kurla, Complex, Bandra(East), Mumbai, Maharashtra - 400051,
India |
B95077830 |
|
4 |
10199917 |
23/01/2010 |
220,000,000.00 |
State Bank of India |
Overseas Branch, 5-9-300, Abids,
Hyderabad, Andhra Pradesh - 500001, India |
A78226974 |
|
5 |
10082478 |
08/07/2013 * |
300,000,000.00 |
EXPORT-IMPORT BANK OF INDIA |
Floor 21, Center One Building,
World Trade Center, Cuffee Parade, Mumbai, Maharashtra - 400005, India |
B81101784 |
|
6 |
90135025 |
07/01/2014 * |
1,509,000,000.00 |
State Bank of India |
Overseas Branch, 5-9-300,
Abids, Hyderabad, Andhra Pradesh - 500001, India |
B94788759 |
* Date of charge modification
FIXED ASSETS:
·
Land
·
Building
·
Plant and
Machinery
·
R and D
Equipments
·
Data
Processing Machines
·
Furniture
and Fittings
·
Vehicles
NEWS:
NEULAND LABS REPORTS THIRD QUARTER FISCAL YEAR 2014
FINANCIAL RESULTS
—Strengthening Margins and Continued Deleveraging Contribute
to Improved Profitability as Year-Over-Year After-Tax Profits Rise—
—Neuland’s Board of Directors Approves Rights
Issue—
Hyderabad,
India – February 5, 2014 – Neuland
Laboratories Limited, (NSE:NEULANDLAB; BOM:524558) a pharmaceutical manufacturer
providing active pharmaceutical ingredients (APIs), complex intermediates and
contract manufacturing services to customers located in 85 countries, today
announced financial results for the third quarter of fiscal year (FY) 2014,
ended December 31, 2013.
“In
the third quarter of FY2014, Neuland continued to deliver on its commitment to
increase profitability,” said Dr. D.R. Rao, Chairman and Managing Director of
Neuland Labs. “This partly reflects our focus on growing our higher margin
businesses such as our contract manufacturing services, which we believe will
serve Neuland well in both the near and longer-term. We also are announcing an
upcoming Rights Issue that has been approved by Neuland’s Board of Directors.
The proceeds are expected to provide resources for investments intended to
achieve our strategic business plan and spur additional profitable growth.”
Revenues
for the third quarter of FY 2014 were $21.15 Millions (1.308 billion INR*),
compared to revenues in the third quarter of FY 2013 of $19.40 Millions (1.065
billion INR), an increase of 23%.
Neuland
reported EBITDA of $3.12 Millions (193.19 Millions INR) in the third quarter of
FY 2014, compared to EBITDA of $3.22 Millions (176.56 Millions INR) in the
comparable period in FY 2013, an increase of 9%.
After-tax
profits in the third quarter of FY 2014 were $1.11 Millions (68.23 Millions
INR), compared to after-tax profits of $0.61 Millions (32.73 Millions INR) in
the third quarter of FY 2013, an increase of more than 108%.
“Our
ongoing efforts to shift our product mix to higher margin activities continued
to advance this quarter, as we grew our contract manufacturing business, which
helped to significantly increase after-tax profits compared to the third
quarter of FY2013,” said Sucheth R. Davuluri, Chief Executive Officer of
Neuland Labs. “We also made further progress in our deleveraging campaign aimed
at reducing Neuland’s debt. The resulting decrease in interest charges
contributed to our increased profitability this quarter. We intend to continue
these initiatives in the coming quarters.”
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.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
36 |
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.