. MIRA INFORM REPORT
|
Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
STRIDES ARCOLAB LIMITED |
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Registered
Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.12.2012 |
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Date of
Incorporation : |
28.06.1990 |
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Com. Reg. No.: |
11-057062 |
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Capital
Investment / Paid-up Capital : |
Rs. 588.040
Millions |
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CIN No.: [Company Identification
No.] |
L24230MH1990PLC057062 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS36534B |
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PAN No.: [Permanent Account No.] |
AADCS8104P |
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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 Marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
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No. of Employees
: |
2700 (Approximately) |
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 54860000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having a satisfactory track record. There appears dip in profit of the company in 2012. However, liquidity
position of the company appears to be strong. Trade relations are reported to be fair. Business is active. Payment
terms are reported to be regular and as per commitments. The company can be considered for normal 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.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and acquisition
guidelines, cleared by a group of ministers, will be out before the auction
begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan Facilities = BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
September, 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund Based Facilities = A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
September, 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 DECLINED BY
|
Name : |
Mr. Venkatesh |
|
Designation : |
Account Manager |
|
Contact No.: |
91-22-27893199 |
|
Date : |
20.01.2014 |
LOCATIONS
|
Registered Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, Maharashtra, India |
|
Tel. No.: |
91-22-27892924 / 27893199 |
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Fax No.: |
91-22-27892942 |
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E-Mail : |
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Website : |
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Corporate Office : |
Strides House, Bilekahalli, Bannerghatta Road, Bangalore –
560076, Karnataka, India |
|
Tel. No.: |
91-80-26581343/ 44/ 67580738/
39/ 67580000/ 66580751/ 66580000/ 66580600 |
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Fax No.: |
91-80-26583538/ 4330/ 67580700/
800/ 66580800 |
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E-Mail : |
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R and D Centre |
Strides Technology And Research, Bilekahalli, Bannerghatta
Road, Bangalore 560076, Karnataka, India |
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Tel. No.: |
91-80-67840290 |
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Fax No.: |
91-80-66580200/300 |
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GLOBAL PLANTS : |
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Factory 1 : |
Sterile Products Division – I Bilekahalli, Bannerghatta
Road, Bangalore - 560076, Karnataka, India |
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Factory 2 : |
Penicillins Facility Estrada Doutor
Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes-
Rio de Janeiro- Brazil |
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Factory 3 : |
Sterile Products Division – II Plot No. 284-A,
Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani, Hobli,
Anekal Taluk, Bangalore - 562106, Karnataka, India |
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Factory 4 : |
Strides Arcolab Polska Sp.Zo.o ul. Daniszewska
10 03-230 Warszawa NIP-813-34-15-000, Poland |
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Factory 5 : |
Oral Dosage Form Facility – III Plot No. 9-12,
Dewan and Sons Industrial Area, Veroor, Palghar, District Thane - 401404,
Maharashtra, India |
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|
|
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Factory 6 : |
Onco Therapies Limited Plot No. 284-B,
Bommasandra Jigani Link Road, Industrial Area, Jigani Village, Jigani Hobli,
Anekal Taluk, Bangalore - 562106, Karnataka, India |
|
|
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Factory 7 : |
Strides Vital Nigeria Limited Gate No. 02,
Ladipo Oluwole Avenue, Opposite Cocoa Warehouse, Off Oba Akran Road, Ikeja
Industrial Area, Ikeja Lagos, Nigeria |
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Factory 8 : |
Beta-lactams
Facility Bilekahalli, Bannerghatta Road, Bangalore-560076,
Karnataka, India |
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Factory 9 : |
Beltapharm SpA 20095 Cusano MIL.
(MI) – Via Stelvio, 66 Italy. |
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Factory 10 : |
Penems Facility Estrada Doutor
Lorival Martins Beda, 926 – 968 28110-000- Donana – Campos dos, Goytacazes-
Rio de Janeiro- Brazil |
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Factory 11 : |
Oral Dosage Form Facility – II 'KRS Gardens',
Suragajakanahalli, Anekal Taluk, Bangalore - 560106, Karnataka, India |
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Factory 12 : |
Oral Dosage Form Facility – I 124, Sipcot Industrial
Complex, Hosur
- 635126, Tamilnadu, India |
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Factory 13 : |
Beta-lactams Facility Bilekahalli, Bannerghatta Road, Bangalore - 560076, Karnataka, India |
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Factory 14 : |
Star Drugs and Research Labs Limited Plot No. 14, Sipcot-II,
Hosur - 635109, Tamilnadu, India |
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Factory 15 : |
Cephalosporins Facility Bilekahalli,
Bannerghatta Road, Bangalore - 560076, Karnataka, India |
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Factory 16 : |
Penems Facility Estrada DoutorLorival
Martins Beda, 926 - 968 28110-000- Donana - Campos dos Goytacazes- Rio de Janeiro-
Brazil |
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Warehouse : |
Plot No. 62, Sector – 1, Nerul, Navi Mumbai – 400706, Maharashtra,
India |
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Global Offices : |
Located at : USA
South Africa 4, Angus Cresent, Longmeadow East, Modderfontein-1644, Norway Sorkedalsveien,
10B 0369, Oslo, Norway. United
Kingdom Unit
4, Metro Centre, Tolpits Lane,Watford, Hertfordshire, WD18 9SS, UK Singapore 8 Cross Street, No. 17-00 Singapore 048424 |
DIRECTORS
AS ON 31.12.2012
|
Name : |
Mr. Deepak Vaidya |
|
Designation : |
Chairman and Independent Director |
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|
Name : |
Mr. Arun Kumar |
|
Designation : |
Executive Vice Chairman and Managing Director |
|
Qualification |
B.Com., PGDBM |
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|
Name : |
Mr. K.R. Ravishankar |
|
Designation : |
Non Executive Director |
|
Qualification |
B.Sc. (Part) |
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|
Name : |
Mr. Mukul Sarkar |
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Designation : |
Independent Director |
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|
Name : |
Mr. P M Thampi |
|
Designation : |
Independent Director |
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|
Name : |
Mr. Venkat S Iyer |
|
Designation : |
Director |
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|
Name : |
Mr. M.R. Umarji |
|
Designation : |
Independent Director |
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|
Name : |
Mr. A.K. Nair |
|
Designation : |
Independent Director |
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|
Name : |
Mr. S Sridhar |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Arun Kumar |
|
Designation : |
Founder and Group Chief Executive Officer |
|
|
|
|
Name : |
Mr. Venkat S Iyer |
|
Designation : |
Executive Director and Chief Executive
Officer – Agila |
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|
Name : |
Mr. T. S. Rangan |
|
Designation : |
Group Chief Executive
Officer |
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|
Name : |
Mr. Adam Levitt |
|
Designation : |
Chief Executive Officer Americas Operations |
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|
Name : |
Dr. Anand Iyer |
|
Designation : |
Chief Executive Officer, Agila Biotech Division |
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|
Name : |
Mr. D P Shrivastava |
|
Designation : |
Chief Executive Officer, Brazil
|
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|
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|
Name : |
Mr. Manish Gupta |
|
Designation : |
Chief Executive Officer – pharma |
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|
Name : |
Mr. Subroto Banerjee |
|
Designation : |
President, Agila (India Region) |
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|
Name : |
Mr. Sihue B Noronha |
|
Designation : |
Chief Executive Officer – Africa |
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|
Name : |
Mr. Joe Thomas |
|
Designation : |
Chief Corporate Development Officer |
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|
|
Name : |
Mr. Venkatesh |
|
Designation : |
Account Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3287326 |
5.52 |
|
|
12896876 |
21.65 |
|
|
16184202 |
27.17 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
16184202 |
27.17 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
934576 |
1.57 |
|
|
41623 |
0.07 |
|
|
646722 |
1.09 |
|
|
29425209 |
49.40 |
|
|
97263 |
0.16 |
|
|
31145393 |
52.29 |
|
|
|
|
|
|
2740353 |
4.60 |
|
|
|
|
|
|
4894965 |
8.22 |
|
|
1257176 |
2.11 |
|
|
5000 |
0.01 |
|
|
3338532 |
5.60 |
|
|
2287174 |
3.84 |
|
|
242424 |
0.41 |
|
|
244900 |
0.41 |
|
|
204654 |
0.34 |
|
|
305000 |
0.51 |
|
|
21005 |
0.04 |
|
|
33375 |
0.06 |
|
|
12236026 |
20.54 |
|
Total Public shareholding (B) |
43381419 |
72.83 |
|
Total (A)+(B) |
59565621 |
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) |
59565621 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the
Shareholder |
Details of
Shares held |
Encumbered
shares (*) |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|||
|
|
|
No. of Shares
held |
As a % of grand
total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|
|
1 |
Pronomz Ventures Llp |
1,26,65,000 |
21.26 |
1706167 |
13.47 |
2.86 |
21.26 |
|
2 |
Arun Kumar |
5,70,797 |
0.96 |
0 |
0.00 |
0.00 |
0.96 |
|
3 |
K R Ravishankar |
12,35,906 |
2.07 |
0 |
0.00 |
0.00 |
2.07 |
|
4 |
Agnus Holdings Private Limited |
1,20,816 |
0.20 |
110500 |
91.46 |
0.19 |
0.20 |
|
5 |
Chayadeep Properties Private Limited |
61,060 |
0.10 |
60000 |
98.26 |
0.10 |
0.10 |
|
6 |
Triumph Venture Holdings Llp |
30,000 |
0.05 |
0 |
0.00 |
0.00 |
0.05 |
|
7 |
Agnus Capital Llp |
20,000 |
0.03 |
0 |
0.00 |
0.00 |
0.03 |
|
8 |
Padma Kumar |
1,71,485 |
0.29 |
0 |
0.00 |
0.00 |
0.29 |
|
9 |
Deepa Arun Kumar |
2,01,000 |
0.34 |
0 |
0.00 |
0.00 |
0.34 |
|
10 |
Tarini Arun Kumar |
2,00,000 |
0.34 |
0 |
0.00 |
0.00 |
0.34 |
|
11 |
Aditya Arun Kumar |
2,00,000 |
0.34 |
0 |
0.00 |
0.00 |
0.34 |
|
12 |
Vineetha Mohanakumar Pillai |
1,75,000 |
0.29 |
0 |
0.00 |
0.00 |
0.29 |
|
13 |
K R Lakshmidevi |
1,30,365 |
0.22 |
0 |
0.00 |
0.00 |
0.22 |
|
14 |
Rajeswari Amma |
93,760 |
0.16 |
0 |
0.00 |
0.00 |
0.16 |
|
15 |
Sajitha Pillai |
80,000 |
0.13 |
0 |
0.00 |
0.00 |
0.13 |
|
16 |
Gayatri Nair |
50,000 |
0.08 |
0 |
0.00 |
0.00 |
0.08 |
|
17 |
Lakshmi Gopalakrishnan |
50,000 |
0.08 |
0 |
0.00 |
0.00 |
0.08 |
|
18 |
Hemalatha Pillai |
48,000 |
0.08 |
0 |
0.00 |
0.00 |
0.08 |
|
19 |
Rajitha Gopalakrishnan |
45,000 |
0.08 |
0 |
0.00 |
0.00 |
0.08 |
|
20 |
G Purushothaman Pillai |
33,013 |
0.06 |
0 |
0.00 |
0.00 |
0.06 |
|
21 |
Rahul Nair |
3,000 |
0.01 |
0 |
0.00 |
0.00 |
0.01 |
|
|
Total |
1,61,84,202 |
27.17 |
1876667 |
11.60 |
3.15 |
27.17 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares
held |
Shares as % of Total
No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
Morgan Stanley Asia (Singapore) Pte. |
3498730 |
5.87 |
5.87 |
|
2 |
Dvi Fund Mauritius Limited |
3017878 |
5.07 |
5.07 |
|
3 |
Hsbc Global Investment Funds A/C Hsbc Global Investment Funds
Mauritius Limited |
2764867 |
4.64 |
4.64 |
|
4 |
Brookdale India Value Fund Limited |
2385773 |
4.01 |
4.01 |
|
5 |
BNP Paribas Arbitrage |
2033009 |
3.41 |
3.41 |
|
6 |
Janus Overseas Fund |
1780895 |
2.99 |
2.99 |
|
7 |
Valiant Mauritius Partners Limited |
1646360 |
2.76 |
2.76 |
|
8 |
Valiant Mauritius Partners Offshore Limited |
1459980 |
2.45 |
2.45 |
|
9 |
Satpal Khattar |
1412500 |
2.37 |
2.37 |
|
10 |
Route One Investment Company L.P. A/C Route One Fund 1 L. P |
1242566 |
2.09 |
2.09 |
|
11 |
Route One Investment Company L.P. A/C Route One Offshore Master Fund
L.P |
1123571 |
1.89 |
1.89 |
|
12 |
Macquairie Bank Limited |
1110815 |
1.86 |
1.86 |
|
13 |
DB International (Asia) Limited |
820440 |
1.38 |
1.38 |
|
14 |
Goldman Sachs Investments (Mauritius) I Limited |
742070 |
1.25 |
1.25 |
|
15 |
Reliance Life Insurance Company Limited |
636774 |
1.07 |
1.07 |
|
16 |
Kemney Investment Fund Limited |
604717 |
1.02 |
1.02 |
|
|
Total |
26280945 |
44.12 |
44.12 |
Shareholding
belonging to the category "Public" and holding more than 5% of the
Total No. of Shares
|
Sl. No. |
Name(s) of the shareholder(s)
and the Persons Acting in Concert (PAC) with them |
No. of Shares |
Shares as % of
Total No. of Shares |
Total shares
(including underlying shares assuming full conversion of warrants and
convertible securities) as a % of diluted share capital |
|
|
|
|
|
|
|
1 |
Morgan Stanley Asia (Singapore) Pte |
3498730 |
5.87 |
5.87 |
|
2 |
DVI Fund Mauritius Limited |
3017878 |
5.07 |
5.07 |
|
|
Total |
6516608 |
10.94 |
10.94 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
||||||||
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Products : |
|
PRODUCTION STATUS (AS ON 31.12.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Soft Gelatin Plant Softgel Capsules |
Numbers
in Millions |
2645 |
-- |
|
Hard Gelatin Plant Capsules |
Numbers
in Millions |
450 |
699734 |
|
Tablet Plant Tablets |
Numbers
in Millions |
2160 |
2115452 |
|
Others |
Numbers
in Millions |
-- |
2105 |
Note:
Installed
Capacities are as certified by the management and relied upon by the Auditors. The
installed capacities serve multiple purposes and will vary according to product
mix.
** Not applicable as the products have been de-licensed.
GENERAL INFORMATION
|
No. of Employees : |
2700 (Approximately) |
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Bankers : |
·
Axis Bank Limited ·
Central Bank of India ·
HDFC Bank Limited ·
Indian Overseas Bank ·
Ratnakar Bank Limited ·
Syndicate Bank ·
Yes Bank Limited ·
Citi Bank · Exim Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Deloitte Centre, Anchorage II, 100/2, Richmond Road,
Bangalore – 560025, Karnataka, India |
|
Tel. No.: |
91-80-66276000 |
|
Fax No.: |
91-80-66276011 |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Grant Thornton International Chartered Accountants |
|
Address : |
Wings, 1st Floor, 16/1, Cambridge Road, Halasuru,
Bangalore-560008, Karnataka, India |
|
|
|
|
Wholly Owned Subsidiaries : |
Direct Holding ·
Arcolab Limited SA,
Switzerland ·
Agila Biotech Private
Limited, India (w.e.f. May
16, 2012) ·
Agila Specialties Asia Pte.
Limited, Singapore (w.e.f. August
4, 2012) ·
Agila Specialties Private
Limited, India ·
Agila Specialties Limited
(formerly Starsmore Limited), Cyprus ·
Strides Africa Limited,
British Virgin Islands (upto December 25, 2012) ·
Strides Arcolab
International Limited, U.K (SAIL) ·
Strides Emerging Markets
Private Limited, India (w.e.f. June
1, 2012 upto November7, 2012) ·
Strides Pharma
International Limited, Cyprus (formerly Strides Specialty (Cyprus) Limited) ·
Strides Technology and
Research Private Limited, India (Under the process of striking off) Indirect Holding ·
Agila Australasia Pty
Limited, Australia (w.e.f. March
22, 2012) ·
Agila Biotech (Malaysia)
SDN BHD, Malaysia (Formerly Agila Specialties (Malaysia) SDN BHD) ·
Agila (NZ) Pty Limited, New
Zealand (w.e.f. February 8, 2012) ·
Agila Pharma Canada
Corporation, Canada (formerly Pharma Strides Canada Corporation) ·
Agila Specialties Americas
Limited, Cyprus (w.e.f. September
28, 2012) (Formerly Agila Specialties Latina Limited) ·
Agila Specialties Asia Pte.
Limited, Singapore (upto August 3, 2012) ·
Agila Specialties Global
Pte. Limited, Singapore (w.e.f. September
28, 2012) ·
Agila Specialties UK
Limited, UK (w.e.f. December
14, 2012) ·
Agila Specialties Polska
Sp. Z.o.o, Poland (Formerly Strides Arcolab Polska Sp.Z.o.o.) ·
Co Pharma Limited, UK ·
Farma Plus AS , Norway ·
Onco Laboratories Limited,
Cyprus ·
Onco Therapies Limited,
India ·
Plus Farma ehfi, Iceland ·
Scentia Pharmaceuticals Pty
Limited, Australia (formerly Linkace Investments Pty Limited), ·
Strides Africa Limited,
British Virgin Islands (w.e.f. December
26, 2012) Strides Australia Pty Limited, Australia ·
Strides Emerging Markets
Private Limited, India (w.e.f. November
8, 2012) ·
Strides Inc., USA ·
Strides Pharma (Cyprus)
Limited, Cyprus (upto June 28, 2012) Strides Pharma Limited, Cyprus (formerly
Linkace Limited) ·
Strides Pharmaceuticals
(Holdings) Limited, Mauritius ·
Strides Pharmaceuticals
(Mauritius) Limited, Mauritius ·
Strides S.A.
Pharmaceuticals Pty. Limited, South Africa (w.e.f.
December31, 2012) ·
Strides Specialties
(Holdings) Cyprus Limited, Cyprus · Strides Specialties (Holdings) Limited, Mauritius |
|
|
|
|
Other Subsidiaries : |
Indirect Holding ·
African Pharmaceuticals
Development Company, Cameroon · Agila Marketing e distribicao de Productos Hospitalaries Limited. (formerly Ephos – 106 Produtos Hospitalaries Limited Me), Brazil · Beltapharm S.p.A., Italy · Congo Pharma SPRL, Congo · Inbiopro Solutions Private Limited, India · Sorepharm SA, Burkinofaso · SPC Company Limited, Sudan · Strides CIS Limited, Cyprus ·
Strides Farmaceutica
Participacoes Limited, Brazil ·
Agila Jamp Canada Inc.,
Canada (w.e.f. March 20, 2012) ·
Strides Pharma Cameroon
Limited, Cameroon ·
Strides Pharma (Cyprus)
Limited, Cyprus · Strides Pharma Namibia (Pty) Limited, Namibia · Strides S.A. Pharmaceuticals Pty. Limited, South Africa · Strides Vital Nigeria Limited, Nigeria ·
Ascent Pharmahealth Asia
Pte., Limited, Singapore · Ascent Pharma Pty Limited (formerly Genepharm Pty Limited), Australia ·
Ascent Pharmacy Services
Pty Limited, Australia ·
Ascent Pharmaceuticals
Limited (formerly Genepharm (New Zealand) Limited), New Zealand · Ascent Pharmahealth Asia (Hong Kong) Limited (formerly Strides Arcolab Hong Kong Limited), Hong Kong · Ascent Pharmahealth Asia (Malaysia) SDN BHD (formerly Strides Arcolab Malaysia SDN. BHD) , Malaysia · Drug Houses of Australia (Asia) Pte. Limited, Singapore · Pharmasave Australia Pty Limited, Australia |
|
|
|
|
Joint Ventures : |
· Akorn Strides LLC, USA Sagent
Agila LLC, USA |
|
|
|
|
Enterprises owned or significantly influenced by
key management personnel and relative of key management personnel : |
· Atma Projects, India ·
Agnus Holdings Private
Limited, India ·
Agnus Global Holdings Pte
Limited, Singapore ·
Agnus IPCO Limited, BVI ·
Mandala Valley Vineyards
Private Limited, India ·
Nous Infosytems Private
Limited, India ·
Patsys Consulting Private
Limited, India ·
Santo Properties Private
Limited, India ·
Sequent Scientific Limited,
India ·
Sequent Research Limited,
India ·
Sequent Penems Private
Limited, India ·
Sequent Global Holdings
Limited, Mauritius ·
Sequent Antibiotics
(Private) Limited, India ·
Sequent Oncolytics
(Private) Limited, India ·
Skanray Healthcare Private
Limited, India (Formerly known as Triumph Fincap Ventures Private Limited) ·
Karuna Ventures Private
Limited, India ·
Paradime Infrastructure
Development Company ·
Deesha Properties, India ·
Agnus Capital LLP, India ·
Atma Enterprises LLP India ·
Chayadeep Ventures LLP
India ·
Qualichem Remedies LLP
India ·
Triumph Venture Holdings
LLP, India ·
Chayadeep Properties
Private Limited, India ·
Higher Pharmatech Private
Limited, India · Pronomz Ventures LLP, India |
CAPITAL STRUCTURE
AS ON 31.12.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89750000 |
Equity Shares |
Rs.10/- each |
Rs. 897.500 Millions |
|
620000 |
Cumulative Redeemable Preference Shares |
Rs.1000/- each |
Rs. 620.000 Millions |
|
|
TOTAL |
|
Rs. 1517.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
58803721 |
Equity Shares |
Rs.10/- each |
Rs. 588.040
Millions |
|
|
|
|
|
NOTE:
Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the reporting period:
|
PARTICULARS |
31.12.2012 |
|
|
|
No. of shares |
(Rs. In Millions) |
|
Equity share of Rs.10/- each |
|
|
|
Opening balance |
58380171 |
583.800 |
|
Issued pursuant to employee stock option
plan |
423550 |
4.240 |
|
Closing balance |
58803721 |
588.040 |
Detail of the rights, preferences and restrictions attaching
to each class of shares outstanding Equity shares of Rs. 10/- each:
The Company has only one
class of equity shares, having a par value of Rs.10/-. The holder of equity
shares is entitled to one vote per share. The Company declares and pays
dividends in Indian rupees. The dividend proposed by the Board of Directors is
subject to approval by the shareholders at the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of the equity shares
will be entitled to receive any of the remaining assets of the Company, after
distribution to all other parties concerned. The distribution will be in
proportion to number of equity shares held by the shareholders.
Details of equity shares held by each
shareholder holding more than 5% of shares:
|
PARTICULARS |
31.12.2012 |
|
|
|
No. of shares |
% |
|
Pronomz Ventures LLP |
12665000 |
21.54% |
Details of aggregate number of equity shares allotted as
fully paid-up pursuant to contract without payment being received in cash for
the period of five year immediately preceding the balance sheet date:
|
PARTICULARS |
31.12.2012 |
|
|
No. of shares |
|
Equity shares of Rs.10- issued pursuant to a scheme of amalgamation in
2009 |
13524 |
Details of equity shares ofRs.10/- each reserved for issuance:
|
PARTICULARS |
31.12.2012 |
|
|
No. of shares |
|
Towards Employee stock options under the various Strides Stock option
plans |
2702350 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.12.2012 |
31.12.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
588.040 |
583.800 |
|
(b) Reserves & Surplus |
|
13126.100 |
13008.360 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
13714.140 |
13592.160 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
2846.610 |
3639.350 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
79.940 |
45.860 |
|
(d) long-term
provisions |
|
504.290 |
588.640 |
|
Total
Non-current Liabilities (3) |
|
3430.840 |
4273.850 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
2935.810 |
4142.280 |
|
(b) Trade payables |
|
1429.370 |
2096.120 |
|
(c) Other current liabilities |
|
1104.260 |
7684.170 |
|
(d) Short-term
provisions |
|
373.390 |
833.840 |
|
Total
Current Liabilities (4) |
|
5842.830 |
14756.410 |
|
|
|
|
|
|
TOTAL |
|
22987.810 |
32622.420 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
2285.870 |
2354.360 |
|
(ii) Intangible Assets |
|
776.740 |
884.660 |
|
(iii) Capital work-in-progress |
|
81.200 |
54.710 |
|
(iv) Intangible assets under
development |
|
214.470 |
15.420 |
|
(b) Non-current
Investments |
|
12953.230 |
7868.180 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
922.580 |
5835.170 |
|
(e) Other
Non-current assets |
|
0.000 |
0.000 |
|
Total
Non-Current Assets |
|
17234.090 |
17012.500 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.380 |
0.000 |
|
(b) Inventories |
|
1043.540 |
1303.190 |
|
(c) Trade receivables |
|
1930.960 |
2642.830 |
|
(d) Cash and cash equivalents |
|
293.300 |
814.610 |
|
(e) Short-term loans and advances |
|
2343.170 |
10520.270 |
|
(f) Other current assets |
|
142.370 |
329.020 |
|
Total Current Assets |
|
5753.720 |
15609.920 |
|
|
|
|
|
|
TOTAL |
|
22987.810 |
32622.420 |
|
SOURCES OF FUNDS |
|
|
31.12.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
577.450 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
13462.740 |
|
|
4] Employees stock options outstanding account |
|
|
20.860 |
|
|
5] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
14061.050 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
6461.360 |
|
|
2] Unsecured Loans |
|
|
5969.340 |
|
|
TOTAL BORROWING |
|
|
12430.700 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
26491.750 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
3115.520 |
|
|
Capital work-in-progress |
|
|
375.280 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
8645.200 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1293.080 |
|
|
Sundry Debtors |
|
|
1597.310 |
|
|
Cash & Bank Balances |
|
|
810.290 |
|
|
Other Current Assets |
|
|
145.280 |
|
|
Loans & Advances |
|
|
14210.230 |
|
Total
Current Assets |
|
|
18056.190 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
1882.820 |
|
|
Other Current Liabilities |
|
|
326.790 |
|
|
Provisions |
|
|
1490.830 |
|
Total
Current Liabilities |
|
|
3700.440 |
|
|
Net Current Assets |
|
|
14355.750
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
26491.750 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
7120.070 |
7496.200 |
5046.610 |
|
|
|
Other Income |
1189.080 |
195.990 |
561.030 |
|
|
|
TOTAL |
8309.150 |
7692.190 |
5607.640 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2815.420 |
3178.380 |
|
|
|
|
Purchase of stock in trade |
1003.070 |
1072.110 |
|
|
|
|
(Increase)/Decrease in stock |
66.760 |
66.180 |
4347.240 |
|
|
|
Employees benefits expenses |
709.190 |
629.760 |
|
|
|
|
Other Expenses |
1568.570 |
1061.020 |
|
|
|
|
TOTAL |
6163.010 |
6007.450 |
4347.240 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2146.140 |
1684.740 |
1260.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
712.200 |
805.900 |
733.740 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
1433.940 |
878.840 |
526.660 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION |
190.990 |
176.150 |
150.820 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEM
|
(644.090) |
559.060 |
514.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
598.860 |
1261.750 |
890.830 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
39.000 |
82.500 |
155.210 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
559.860 |
1179.250 |
735.620 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports of Goods |
5098.960 |
5404.610 |
3277.180 |
|
|
|
Development Income |
30.170 |
447.590 |
609.680 |
|
|
|
Management advisory service
fees |
507.150 |
332.64 |
312.970 |
|
|
|
Interest |
516.340 |
10.230 |
9.880 |
|
|
|
Profit on sale of investment |
308.460 |
0.000 |
94.400 |
|
|
|
Share of Profit on Sale of Product |
11.610 |
0.000 |
97.920 |
|
|
|
Other Income |
9.200 |
131.260 |
149.970 |
|
|
TOTAL EARNINGS |
6481.890 |
6326.330 |
4552.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1379.150 |
1241.020 |
612.690 |
|
|
|
Capital Goods |
69.290 |
37.120 |
185.550 |
|
|
|
Others |
66.070 |
11.560 |
6.450 |
|
|
TOTAL IMPORTS |
1514.510 |
1289.700 |
804.690 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
9.55 |
20.30 |
15.69 |
|
|
|
Diluted |
5.84 |
20.13 |
11.98 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2013 |
|
|
4th Quarter |
|
Sales Turnover |
1783.700 |
|
Total Expenditure |
1462.600 |
|
PBIDT (Excl OI) |
321.100 |
|
Other Income |
166.800 |
|
Operating Profit |
487.900 |
|
Interest |
124.600 |
|
Exceptional Items |
8.300 |
|
PBDT |
371.600 |
|
Depreciation |
88.800 |
|
Profit Before Tax |
282.700 |
|
Tax |
(33.000) |
|
Provisions and Contingencies |
0.000 |
|
Reported PAT |
315.700 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
315.700 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2012 |
31.12.2011 |
31.12.2010 |
|
PAT / Total Income |
(%) |
6.74
|
15.33
|
13.12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.41
|
16.83
|
17.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.15
|
5.11
|
4.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.09
|
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.42
|
0.57
|
0.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.98
|
1.06
|
4.88 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM DEBT: NOT AVAILABLE
|
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
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 |
|||||||
|
Bench:-
Bombay |
|
||||||
|
Stamp No:- |
ITXAL/2454/2010 |
Failing Date:- |
07/12/2010 |
Reg. No.:- |
ITXA/46/2011 |
Reg. Date:- |
15/01/2011 |
|
|
|||||||
|
|
Main Matter |
|
|||||
|
Petitioner:- |
Commissioner of Income tax |
Respondent:- |
Strides Arcolab Limited |
||||
|
Petn.Adv:- |
Padam Divakar |
||||||
|
District:- |
Mumbai |
||||||
|
|
|||||||
|
Bench:- |
Single |
Category:- |
TAX APPEALS |
||||
|
Status:- |
Admitted(Unready) |
Stage:- |
FOR ADMISSION - FRESH |
||||
|
Last Date:- |
23/11/2011 |
|
|||||
|
Last Coram:- |
HON'BLE SHRI JUSTICE J.P. DEVADHAR HON'BLE SHRI JUSTICE A.R. JOSHI |
||||||
|
|
|
||||||
|
Act:- |
Income Tax Act, 1961 |
||||||
UNSECURED LOANS
|
Unsecured Loans |
31.12.2012 |
31.12.2011 |
|
|
(Rs. In Millions) |
|
|
LONG-TERM BORROWINGS |
|
|
|
Term loan from banks |
2605.450 |
2663.500 |
|
SHORT-TERM BORROWINGS |
|
|
|
Unsecured loan repayable on demand from others |
0.000 |
100.000 |
|
Total |
2605.450 |
2763.500 |
TURNOVER AND
PROFITS
On a Standalone basis the total income during the
year stood at Rs. 8309.150 Millions as against Rs. 7692.190 Millions in the previous
year. The Standalone net profits Rs.559.806 Million as against a net profit ofRs.1179.250 Millions for the previous
year.
BUSINESS OVERVIEW
2012 began and ended on an optimistic note for the
Company. During the year, their revenues and EBIDTA increased considerably,
compared to 2011, primarily driven by consistent new product launches and
increase in operational scale. Besides, both Agila and Pharma divisions
demonstrated significant operating leverage across all global manufacturing
facilities and consistent regulatory filings. Besides, there were significant
corporate initiatives round the year.
KEY BUSINESS HIGHLIGHTS FOR
2012
PHARMA
COLLABORATION WITH GILEAD
SCIENCES
The Company entered into an in-licensing agreement to
collaborate with Gilead Sciences, Inc. to promote access to high-quality,
low-cost generic versions of Gilead's HIV medicine emtricitabine (FTC) in
developing countries - including fixed-dose combinations of emtricitabine
co-formulated with other Gilead HIV medicines.
FUNDING FROM FRENCH
DEVELOPMENT
FINANCING INSTITUTION
During the year the French Development Financing
Institution Proparco invested USD12.5 Million in the form of equity
participation for a 20% stake in Strides' African front-end arm, valuing the
African operations at about USD 60 Million. The proceeds will be used to create
additional manufacturing infrastructure in key markets in Africa and to build a
regional Company.
BIOTECH
CONSOLIDATION OF STAKE IN
INBIOPRO
During the year 2012, the Company consolidated its
stake in Inbiopro Solutions Private Limited (Inbiopro) the Biotech arm of the
Company from the initial holding of 70% to 96.79%.
As at the date of this report the Company further
consolidated its stake to 100% and consequently Inbiopro is a wholly owned
subsidiary of the Company.
CUSTOMISED BIOTECH FACILITY
IN MALAYSIA
In March 2013, the Company's wholly owned subsidiary
Agila Biotech (Malaysia) SDN BHD, Malaysia, entered into an arrangement with
Bio-XCell Sdn Bhd (Malaysian Government undertaking) for the establishment of a
customised biotech facility located in the Bio-XCell ecosystem in Johor,
Malaysia.
The Company plans to incorporate into this facility,
the "next-generation" technology platforms which revolutionise the
way biomolecules are developed, manufactured and commercialised.
SPECIALTIES (AGILA)
BRAZIL STERILE PENEMS
FACILITY - US FDA APPROVAL
In February 2012, the Brazilian Sterile Penems facility
received US FDA approval. This state-of-the-art facility manufactures sterile
dry powder injectables of Penems. The plant has already been approved by other
international regulatory agencies like MHRA and ANVISA.
POLISH FACILITY - US-FDA
APPROVAL
During the year, the Company's polish sterile
facility received US-FDA approval. This state-of-the-art facility located in
Warsaw, Poland, manufactures vials, ampoules, pre-filled syringes and
lyophilized injections. The approval offers significant flexibility to the
manufacturing which is currently experiencing strong demand on a worldwide
basis.
ACQUISITION OF USFDA
APPROVED STERILE MANUFACTURING FACILITY
During the year, the Company through its wholly
owned subsidiary, Agila Specialties Private Limited acquired a USFDA approved
Sterile Formulations facility situated at Hosur, Tamil Nadu from Star Drugs and
Research Labs Limited.
JOINT VENTURE WITH JAMP
PHARMA CORPORATION
During the year, the Company through its wholly
owned subsidiary Agila Specialties Pharma Corporation, Canada (part of
injectable division of Strides), formed a joint venture with Jamp Pharma, a
Canadian generic drug company, to introduce a variety of quality injectable
generic drugs in Canada.
COLLABORATION WITH ELI LILLY
In December 2012, the Company along with its
subsidiary Agila Specialties Private Limited collaborated with Eli Lilly to
expand delivery of cancer medicines in the emerging markets. As a part of this
arrangement, Lilly will in-license a portfolio of high-quality, branded generic
injectable and oral cancer medicines from
Agila Specialties, the specialties division of
Strides.
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
The global
economy weathered unpredictable headwinds in 2012. The Euro zone had little to
cheer in 2012 as governments continued to look for ways and means to keep
financial markets afloat without promoting unsustainable debts, or continue
with austerity measures without impacting the economy. Emerging economies were
also impacted in a largely interdependent world.However, the world's largest
economy, the United States, seems to be recovering.
In 2012
the economy grew 2.2% against 1.8% in 2011.
Reliable
forecasts of the US economy for 2013 put growth upwards of 2% and for 2014,
above 3%. These estimates apparently look insignificant, but considering the
size of the economy, around US$ 15 Trillion, even a 2% growth would add an
output worth US$ 300 Billion. This will create a fresh wave of economic
activity not only in the US, but around the world, thanks to globalisation. The
global economy is expected to have grown by 3.2% in 2012. It is estimated to
grow at the rate of 3.5% in 2013.
INDIAN ECONOMY
India's GDP is estimated to have grown by 5% in FY
2012-13. The Reserve Bank of India infused Rs. 18,000 crore to its economy by
reducing the cash reserve ratio (CRR) to 4% in its third monetary policy during
2012-13. Moreover, he Reserve Bank of India twice lowered the repo rate by 25
basis points in 2012-13 to help revive growth. Increasing FDI limits across
major sectors have significantly improved India's capital inflows. The
government is also taking various initiatives to keep the fiscal deficit within
5.2%. More financial reforms are expected to strengthen India's growth story.
GLOBAL PHARMACEUTICAL
INDUSTRY
PHARMACEUTICAL INDUSTRY
OVERVIEW
The global pharmaceutical market has witnessed a 6%
CAGR from 2006 to 2012 to reach a US$ 956 Billion market size in 2012.
According to IMS Health, the global pharmaceutical spend is estimated to touch
US$ 1.2 Trillion by CY2016, growing at 4.5%annually. Growth will be
primarilydriven by higher generic spending (accounting for 3/4th of
the total increase) and increasing medical expenditure.
The pharmerging countries will be the primary growth
driver with market share likely to rise to 30% by CY2016 from 20% in CY2011.
Simultaneously, the share of developed markets is likely to decline to 57% by
CY2016 from 66% in CY2011, led by around US$ 100 Billion of patent expiries in
the next five years.
Gradually growth is gravitating from developed
countries to emerging markets. This is owing to an enhanced focus on
biopharmaceuticals, compared to small molecule drugs and higher preference for
generics, compared to their branded counterparts.
INNOVATOR MARKET
As the innovator market emerges from a wave of
patent expiries in the US, there has been a sharp increase in the number of NDA
(new drug application) approvals. The year 2012 saw around 34 new drug
approvals, highest in the last eight years.
GENERIC MARKET
Growing generics spending in the developed Market
over the next five year will be fuelled by generic competition due to patent
expiries, with some additional increases due to expanded generic use for
off-patent molecules. In
pharmerging markets generic companies will increase
most of the spending
GLOBAL
PHARMACEUTICAL MARKETS
REGULATED MARKET
USA
The US pharmaceutical market valued is US$ 322 Billion in 2011, is
expected to grow at a CAGR of 1-4% over 2012-16, likely to reach a market value
of 350-380 Billion by 2016 The year 2012 witnessed around US$ 35 Billion worth
of drugs to go off patent The US generics market, worth US$ 100 Billion, is
also estimated to register a CAGR of 8-9% in the medium term on account of
patent expiries
JAPAN
Japan is the world’s second largest pharmaceutical market. Japan’s
pharmaceutical market valued at US$ 111 Billion in 2011, is likely to witness
CAGR of 1-4% over 2012-16, reaching a market size of US$ 105 – 135
Billion.Growth rate is marginally hindered by price cuts expected in 2014 and
2016. Rising healthcare costs and ageing population have forced the government
to initiate a shift towards generic drugs. The generics segment is the highest
growing of all with anestimated CAGR of ~14% (2010-2015).
EUROPE
Europe is one of the largest global pharmaceutical market (around 17%)
followed by the US and Japan. In Europe pharmaceutical market is likely to
witness growth in the range of -1% to 2% by 2016. Sluggish growth is expected
due to healthcare cost containment measures adopted in order to curtail
the debt crisis. The EU5* nations are likely to touch a market size of US$
125-175 Billion by 2016.
PHARMERGING
MARKETS
The pharmerging markets are likely to double their pharmaceutical
spending from US$ 151 Billion 2011 to around US$ 285-313 Billion by 2015.Growth
will be led by gradual economic growth and government efforts to expand
healthcare access. IMS expects the pharmerging markets to grow by 13%-plus CAGR
from 2011 to 2016, reaching US$ 357 Billion by 2016.
CHINA
China’s pharmaceutical market is expected to soar to 2.3 Trillion yuan
(US$ 369.2 Billion) by 2020, up from 926.1 Billion yuan (US$ 148. 66 Billion),
currently. The growth will be led by China’s ageing population and economic
development, driving social insurance and consumption capacities (Source: Life
Sciences Health Industry Group, 2013).
LATIN AMERICA
The outlook for the Latin American market is positive, given the sheer
size and the burgeoning population. Generics and biologics are among the
strongest areas. Even if standards vary, the tendency is for ‘similar drugs’
without proven bio-equivalence to be phased out.
According to the IMS Health, the Latin American market will double from
2011 to 2015.The Latin America’s pharmaceutical market is worth US$ 45 Billion
in 2011.
Brazil’s is the largest market in Latin America and ranks the 7th globally.
The market is growing at 14-15%, and is expected to reach US$ 25 Billion by
2014 (Source: IMS, Fortune).
INDIA
India’s pharmaceutical industry is expected to reach US$ 29 Billion, growing
at a CAGR of 15-16%. The country is expected to have registered a growth of US$
15.7 Billion in 2012(Source: Espicom). The key growth enablers (disposable
income, insurance penetration, growing prevalence of lifestyle diseases) will
continue to drive growth.
GLOBAL APPROACH
India is rapidly emerging as one of the most preferred outsourcing
destinationsfor pharmaceuticals. A favourable regulatory environment has
attracted significant foreign investment. The cumulative drugs and pharmaceutical
industry attracted a foreign direct investment (FDI) of US$ 9,596 Million
between April 2000 and May 2012.
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER & NINE MONTHS ENDED SEPTEMBER
30, 2013
(Rs. In Millions)
|
Sl. No. |
Particulars |
3
Months ended 30.09.2013 Unaudited |
Preceding3
Mounts ended 30.06.2013 |
Year
to date figures for the current period ended 30.09.2013 |
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net Sales / Income
from Operations (Net of excise duty) |
1991.813 |
1508.301 |
5113.540 |
|
|
(b) Other Operating
Income |
97.607 |
156.005 |
423.847 |
|
|
Total Income from
operations (net) |
2089.420 |
1664.306 |
5537.387 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of material
consumed |
835.806 |
657.453 |
2201.237 |
|
|
(b) Purchases of
stock-in-trade |
458.850 |
228.948 |
931.661 |
|
|
(c) Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(70.359) |
12.536 |
(6.394) |
|
|
(d) Employee benefit
expenses |
196.147 |
174.658 |
562.982 |
|
|
(e) Depreciation and
amortisation expense |
92.993 |
91.708 |
273.516 |
|
|
(f) Other expenses |
317.219 |
369.916 |
954.291 |
|
|
Total expenses |
1830.656 |
1535.219 |
4917.293 |
|
3 |
Profit/(Loss) from
Operations before Other Income, finance cost & Exceptional Items (1 -2) |
258.764 |
129.087 |
420.094 |
|
4 |
Other Income |
165.278 |
176.116 |
508.199 |
|
5 |
Profit/ (Loss) from
ordinary activities before finance cost & Exceptional Items (3+4) |
424.042 |
305.203 |
1128.293 |
|
6 |
Finance costs |
251.226 |
159.371 |
535.192 |
|
7 |
Profit/(Loss) from
ordinary activities after finance cost but before Exceptional Items (5-6) |
172.816 |
145.832 |
593.101 |
|
8 |
Exceptional Items |
|
|
|
|
|
Exchange Fluctuation
(Loss) / gain (Net) |
(118.666) |
(124.258) |
(234.648) |
|
9 |
Profit / (Loss) from Ordinary
Activities before tax (7+ 8) |
54.150 |
21.574 |
358.453 |
|
10 |
Tax Expense / (credit) |
32.000 |
-- |
(0.999) |
|
11 |
Net Profit / (Loss) after tax
(9-10) |
22.150 |
21.574 |
359.452 |
|
12 |
Paid-up Equity Share
Capital (Face value of Rs.10/-each) |
591.614 |
590.501 |
591.614 |
|
13 |
Earnings per share
(face value of Rs. 10/- each) - not annualised |
|
|
|
|
|
Basic EPS (Rs.) |
0.38 |
0.37 |
6.09 |
|
|
Diluted EPS (Rs.) |
0.37 |
0.36 |
6.05 |
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public shareholding : |
|
|
|
|
|
(a) Number of shares |
42,977,169 |
42,875,919 |
42,977,169 |
|
|
(b) Percentage of shareholding |
72.64% |
72.61% |
72.64% |
|
2 |
Promoters and Promoter group shareholding : (a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
7,280,152 |
7,203,784 |
7,280,152 |
|
|
- Percentage of shareholding (as a % of the total share holding of promoter and promoter group) |
44.98% |
44.54% |
44.98% |
|
|
- Percentage of shareholding (as a % of the total share capital of the Company) |
12.31% |
12.20% |
12.31% |
|
|
(b) Non Pledged / Non Encumbered |
|
|
|
|
|
- Number of shares |
8,904,050 |
8,970,416 |
8,904,050 |
|
|
- Percentage of shareholding (as a % of the total share holding of promoter and promoter group) |
55.02% |
55.46% |
55.02% |
|
|
- Percentage of shareholding (as a % of the total share capital of the Company) |
15.05% |
15.19% |
15.05% |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS [Nos.] |
|
|
|
|
|
Pending at the beginning
of the quarter |
-- |
|
|
|
|
Received during the
quarter |
20 |
|
|
|
|
Disposed of during the
quarter |
20 |
|
|
|
|
Remaining unresolved at
the end of the quarter |
-- |
|
|
NOTE:
1.
The
above unaudited results of the Company has been reviewed by the Audit Committee
and taken on record by the Board of Directors at their meeting held on 14th
November, 2013.
2.
The
statutory auditors have carried out limited review of the above standalone results.
3.
The
previous period's figures have been regrouped/ reclassified wherever necessary
to conform to the classification of the current period.
4.
Consequent
to the approval of Scheme of Arrangement during the year ending December 31,
2009 by the Hon'ble High Courts of Judicature ('the Scheme'), the Company has
utilised the Reserve for Business Restructure (BRR) as mentioned below. In
2009, as per the Scheme, investments in a subsidiary had been fair valued and
the resultant surplus over the previously carried book values, amounting to Rs.
5856.200 Millions had been credited to BRR. The maximum amount that can be
written off against the BRR instead of being debited to the statement of profit
and loss account on or at any time after January 1, 2009 would be restricted to
the balance in the BRR or upto December 31, 2012 and not beyond that.
|
|
Particulars |
3
Months ended 30.09.2013 Unaudited |
Preceding3
Mounts ended 30.06.2013 |
Year
to date figures for the current period ended 30.09.2013 |
|
|
Utilisation of BRR : - Employee benefit expenses accrued / (reversed) - net - Depreciation and Amortisation - Other expenses - Interest on Fixed Loans Impact if the Company
followed the Accounting Standards instead of the accounting treatment
provided in the Scheme :- |
-- |
-- |
-- |
|
|
|
|
|
- |
|
|
Net Profit for the
period would have decreased by : |
|
|
- |
|
|
Earnings / (Loss)
per share (EPS) (Face value of Rs.10/-each) would have been : - Basic (not annualised) - Diluted (not annualised) |
Rs. 0.38 0.37 |
Rs. 5.36 5.32 |
Rs. 6.09 6.05 |
5. During the quarter, 111,250 equity shares were allotted by the Company) 101,250 Shares under strides arcolab ESOP 2008 (Director) Scheme) on exercising equal number of options. No options were granted under this scheme in the current period.
6. As part of the ongoing restructuring in the group, the following changes have been made during the quarter:
a) Strides Inc. USA has been renamed as Agila Specialties Inc., USA
b) Strides Specialties (Holdings) Cyprus Limited, Cyprus has been renamed as Agila Specialties (Holdings) Cyprus Limited, Cyprus
c) Agila Specialties Limited, Cyprus has been renamed as Strides Pharmaceuticals (Holdings) Limited, Cyprus
d) Agila Biotech (Malaysia) SDN. BHD has been renamed as Stelis Biopharma (Malaysia) SDN. BHD
e) Agila Biotech Private Limited has been renamed as Stelis Biopharma Private Limited
f) Akorn Strides LLC has been transferred from Strides Inc, USA to Strides Pharma Inc USA
7. Exchange fluctuation gain/loss (net) included under Exceptional Items comprises the exchange gains/losses arising out of the restatement/settlement of borrowings in foreign currency, intra group loans given and certain foreign currency denominated monetary items.
8. The Company’s operations fall within a single business segment viz. “Pharmaceutical Products” and as such there is no reportable segment information as per Accounting Standard 17 issued under the relevant provisions of the Companies Act, 1956.
9. During the quarter ended March 2013 (February 27, 2013), the Company and its subsidiary, Agila Specialties Asia Pte Limited. (Agila Asia), have entered into definitive agreements for the sale of entities into Specialty products (a part of the Pharmaceutical business that the Group is into) by way of share sales to Mylan Inc. ('the purchaser') Pursuant to this agreement, the purchaser will acquire
• the entire share capital of Agila Specialties Private Limited., from the Company, and
• the entire share capital of Agila Specialties Global Pte Limited., from Agila Asia.
In terms of the agreements, the consideration is subject to certain retentions, post completion adjustments and deposit of escrow amounts as set out in the agreements. The completion of the sale is subject to various regulatory and corporate approvals as may be required and fulfillment of other terms and conditions agreed between the parties and set out in the agreements. Upon satisfaction of the terms and conditions and receipt of all regulatory and corporate approvals, the Company and its subsidiary will tender the shares to the buyer. Pending completion of all the formalities, no effect has been given to above sale of shares to the purchaser in this results.
CONTINGENT LIABILITIES (AS ON 31.12.2012)
The Company has given corporate guarantees upto
Rs.26298.570 Millions (Previous year Rs.4572.940 Millions) to financial
institutions and other parties, on behalf of its subsidiaries. At December 31,
2012, the subsidiaries had availed facilities from such financial institutions/
were obligated to the parties referred above for an aggregate amount of
Rs.4068.850 Millions (Previous year Rs.3672.540 Millions). The Company has
additionally provided its fixed assets (under a paripassu second charge) as
security in respect of some of these facilities.
The Company has disputed tax liabilities arising
from assessment proceedings relating to earlier years from the income tax
authorities amounting to Rs.741.310 Millions (Previous year Rs.741.270). The
outflow on account of disputed taxes is dependent on completion of assessments.
The Company has preferred an appeal with the CESTAT
against the order of the Commissioner of Central Excise disallowing transfer of
CENVAT credit of Rs.3.860 Million (Previous year Rs.3.860 Millions) as on the
date of conversion of one of the units of the Company into a 100% EOU. The
outflow on account of disputed taxes is dependent on completion of assessments.
FIXED ASSETS
·
Freehold Land
·
Leased Hold Land
·
Buildings
·
Furniture and Fixtures
·
Office Equipment and Computers
·
Plant and Machinery
·
Motor Vehicles
·
Registration and Brands
·
Software Licences
PRESS RELEASE
STRIDES ARCOLAB TO
REWARD SHAREHOLDERS WITH UP TO RS 800/SHARE PAYOUT POST AGILA SALE
Sep 23, 2013
MUMBAI: Drugmaker Strides Arcolab will be returning cash to shareholders, making it one of the rare Indian companies to do so, after the crash in the rupee bumped up the money the company is getting for selling its Agila unit to US-based pharmaceutical company Mylan Inc.
Shareholders will get around Rs 800 for every share they own, amounting to a total payout of about $800 million, according to a person with direct knowledge of the development. The company has 27,177 shareholders, including 24,320 retail investors. As of June 30, the promoters had a 27.39% stake in the company, while foreign institutional investors had 51.74%, according to the BSE web site.
STELIS BIOPHARMA
SIGNS A RESEARCH COLLABORATION AGREEMENT WITH BIO-SCAFFOLD INTERNATIONAL PTE LIMITED
TO DEVELOP SCAFFOLDS LOADED WITH BMP AND STEM CELLS FOR VARIOUS MEDICAL
APPLICATIONS
October 23, 2013: Strides Arcolab Limited (BSE: 532531, NSE: STAR) announced that its biotech subsidiary -Stelis Biopharma (previously known as Agila Biotech) today entered into Research Collaboration Agreement with Bio-Scaffold International Pte Ltd (BSI), a Singapore based, start-up Company, to research and develop BMP and stem cell loaded 3D printed devices for various applications in Orthopaedics, Cosmetology/ Plastic and Reconstructive Surgery and Dentistry. The Research will be jointly directed by Dr. Anand Iyer, Ph.D., JD, CEO, Stelis Biopharma and Dr. Margam Chandrasekaran, CEO/ Chief Scientist, Bio-scaffold International Pte. Ltd. and each Company will bear the cost of its contribution to the joint research collaboration.
BSI is a pioneer in the application of 3D printing technology for the development of novel, biocompatible scaffolds. Stelis is a cutting edge biotechnology company whose research and development efforts include the development of drug and stem cell loaded devices for the treatment of various medical conditions. Scientists from Stelis and BSI have developed a framework for initial research collaboration which would include working on multiple areas such as BMP-2/7 heterodimer loaded scaffold for orthopaedic applications and BMP2/ BMP7 loaded scaffolds for spinal fusion etc.
Dr. Iyer and Dr. Chandrasekaran strongly feel that this joint collaboration would help harness the synergies of the two companies in advancing the development of novel 3D printed devices for effectively treating various conditions in the orthopaedic, orthodontic oral/ maxillofacial and plastic/ reconstructive arena.
About Stelis
Biopharma / Strides Arcolab Limited.
Stelis Biopharma Private Limited, India (formerly known as Agila Biotech Private Limited, India), is a wholly owned subsidiary of Strides Arcolab Limited, India. Stelis Biopharma (Malaysia) Sdn Bhd (formerly known as Agila Biotech (Malaysia) Sdn Bhd), is a wholly owned subsidiary of Stelis Biopharma Private Limited, India.
Stelis Biopharma Private Limited, India (formerly known as Agila Biotech Private Limited, India), is a wholly owned subsidiary of Strides Arcolab Limited, India. Stelis Biopharma (Malaysia) Sdn Bhd (formerly known as Agila Biotech (Malaysia) Sdn Bhd), is a wholly owned subsidiary of Stelis Biopharma Private Limited, India.
The facility will also provide product and process development and validation services, bioprocess solutions, integrated business services, operational support services, end-user services, leveraging a combination of technology platform and service delivery framework. Stelis will also provide training and support services as well as consultancy in business, marketing and other allied services to other biotechnology companies.
Strides Arcolab Limited, listed on the Bombay Stock Exchange Limited (532531) and National Stock Exchange of India Limited (STAR), is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures a wide range of pharmaceutical products.
The Company has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets. Manufacturing is ably supported by a 350-scientist strong global RD Centre located in Bangalore.
About Bio-scaffold
International Pte Limited.
Bio-scaffold International Pte Limited (BSI) is a local biomedical technology company focusing on the development of scaffolds for tissue engineering which include repair and replacement of human tissue including bones, ligaments and joints. BSI’s ground-breaking innovative technology has led to the development of Alvelac™ which aids in the preservation of alveolar socket after tooth extraction. BSI is working on extending the dental applications and development of new products to address applications in Orthopaedics, Plastic Reconstructive Surgery and allied fields.
STRIDES ARCOLAB SAYS
FORM 483 ISSUES UNDER CONTROL, WILL CONTINUE SUPPLYING U.S.
August 1, 2013
Strides Arcolab recently joined a few of its fellow Indian drugmakers in a club no manufacturer wants to be part of. In June, the company became the latest in a series of Indian pharmas this year to draw critical observations from the FDA for production shortfalls. But unlike some of its counterparts, Strides will continue to send drugs to the U.S., as the company said Wednesday that everything is under control.
CEO Arun Kumar told Reuters that Strides had submitted its response to the FDA regarding the regulatory body's concerns at a Bangalore plant and was "confident about resolving it." As Business Standard reports, he cited a strong FDA track record, with 7 of 15 inspections coming up free of Form 483s--and the rest yielding observations that were addressed to the agency's satisfaction. "With our past experience, we are confident these Form 483s would be addressed in a diligent manner," Kumar told investors (as quoted by Business Standard).
Still, Strides' shares dipped as much as 17.1% on news of the Form 483, Reuters says. According to Business Standard, part of the worry was that the company's $1.6 billion sale of its specialty injectables unit to Mylan ($MYL), expected by September, might be delayed, as the FDA's observations dealt with a production line slated to be part of the deal. But Kumar said the Form 483 wouldn't impact the transaction.
CMT REPORT (Corruption, Money Laundering
Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report : No
press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.99 |
|
UK Pound |
1 |
Rs. 102.67 |
|
Euro |
1 |
Rs. 83.98 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--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 |
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 |
|
50 |
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.