MIRA INFORM REPORT

 

 

Report Date :

30.06.2014

 

IDENTIFICATION DETAILS

 

Name :

SUN PHARMACEUTICAL INDUSTRIES LIMITED

 

 

Registered Office :

Sun Pharma Advance Research Centre (SPARC), Tandalja,  Akota Road, Vadodara – 390020, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

01.03.1993

 

 

Com. Reg. No.:

04-019050

 

 

Capital Investment / Paid-up Capital :

Rs.1035.600 Millions

 

 

CIN No.:

[Company Identification No.]

L24230GJ1993PLC019050

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDS02426E

 

 

PAN No.:

[Permanent Account No.]

AADCS3124K

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer of Tablets, Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids.

 

 

No. of Employees :

14000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 311555000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and reputed company having fine track record.

 

Financial position of the company is strong. Over all fundamentals of the company is sound and healthy.

 

Directors are reported to be experienced and respectable businessmen.

 

Trade relations are reported a fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good 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.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

N E W S

 

The economy grew 4.7 %in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown in more than a quarter of a century. The data was below an official estimate of 4.9 % annual growth and compared with 4.5 % in the last fiscal year. However, the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A sharp fall in gold imports due to restrictions on overseas purchases and muted import of capital goods helped shrink the current account deficit.

 

Online retailer Flipkart has acquired fashion portal Myntra as it prepares to battle with the rapidly expanding India arm of the global e-commerce giant Amazon. The company raised $ 210 million from Russian Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba Group.

 

General Motors will start exporting vehicles from its Talegaon plant near Pune in the second half of 2014. GM was one of the few global carmakers that was using its India plant only for the domestic market.

 

Google has overtaken Apple as the world’s top brand in terms of value, according to global market research agency Millward Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were dominated by US companies.

 

Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being the other two.While Vemuri went on to lead IGate, Balakrishnan joined politics.

 

Naresh Goyal – promoted Jet Airways posted biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31, mainly because it has been offering discounts to passengers to fill planes.

 

William S Pinckney – Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in connection with a complaint against the direct selling firm. This is the second time that he has been taken into custody. A year, ago the Kerala Police had arrested Pinckney and two company directors on charges of financial irregularities.

 

China has told its state-owned enterprises to sever links with American consulting firms after the United States charged five Chinese military officers wih hacking US companies. China’s action which targets consultancies like McKinsey & Co. and the Boston Consulting Group, sterns from fears that the first are providing trade secrets to the US governments.

 

India has emerged as a country with some of the highest unregistered businesses in the world. Indonesia has the maximum number of shadow businesses, says a study of 68 countries by Imperial College Business School in London.

 

Pfizer has abandoned its attempt to buy AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55 pounds a share.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

AAA = Long Term Rating

Rating Explanation

Highest degree of safety and carry lowest risk

Date

April 8, 2014

 

 

Rating Agency Name

CRISIL

Rating

A1+ = Short Term Rating

Rating Explanation

Strong degree of safety and carry lowest credit risk.

Date

April 8, 2014

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DENIED

 

Management Non Co-Operative (91-265-234001)

 

 

LOCATIONS

 

Registered Office/ Research Centre 1 :

Sun Pharma Advance Research Centre (SPARC), Tandalja,  Akota Road, Vadodara – 390020, Gujarat, India

Tel. No.:

91-265-2340001/ 5515500/ 600/700

Fax No.:

91-265-2339103/ 2354897/ 2332664

E-Mail :

corpcomm@sunpharma.com

helpdesk@sunpharma.com

secretarial@sunpharma.com

ashok.bhuta@sunpharma.com

secretarial@sunpharma.com

Website :

http://www.sunpharma.com

 

 

Corporate Office :

Acme Plaza, Andheri – Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India

Tel. No.:

91-22-28211822/1842/1917/1951/1953

Fax No.:

91-22-28212010

E-Mail :

corpcomm@sunpharma.com

 

 

Research Centre 2 :

·         F.P 27, Part Survey No. 27, C. S. No. 1050, T. RS. Village, Tandalja, District Vadodara - 390020, Gujarat, India

 

·         17-B, Mahal Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai - 400059, Maharashtra, India

Tel No.: 91-2-66455645

Fax No.: 91-22-66455685

 

·         Chemistry and Discovery Reaserch Israel, 14 Hakitor Street, P.O. Box, 10347 Haifa Boy 26110, Israel

 

 

 

 

Factory 1 :

Plot No. 214, Plot No. 20, Government Industrial Area, Phase II, Piparia, Silvassa – 396230, Gujarat, India

 

 

Factory 2 :

Halol-Baroda Highway, Near Anand Kendra, Halol, District Panchmahal - 389350, Gujarat, India

 

 

Factory 3 :

Plot No. 24/2 and 25, GIDC, Phase-IV, Panoli, District Bharuch - 394116, Gujarat, India

 

 

Factory 4 :

A-7 and A-8, MIDC Industrial Area, Ahmednagar - 414111, Maharashtra, India

 

 

Factory 5 :

Plot No. 4708, GIDC. Ankleshwar - 393002, Gujarat, India

 

 

Factory 6 :

Sathammai Village, Karunkuzhi Post, Maduranthakam TK, District Kanchipuram - 603303, Tamilnadu, India 

 

 

Factory 7 :

Plot No. 817/A, Karkhadi, Taluka Padra, District Vadodara - 391450, Gujarat, India

 

 

Factory 8 :

Sun Pharma Drugs Private Limited

Plot No. 754, Nandok Block, Setipool, P.O. Ranipool – 737135, Sikkim, India

 

 

Factory 9 :

Sun Pharma Medication Private Limited

Survey No. 259/15, Dadra – 396191, Union Territory

 

 

Factory 10 :

Sun Pharma Medication Private Limited

6-9 Export Promotion Industrial Park (EPIP), Kartholi, Bari Brahmana, Jammu - 181133, Jammu and Kashmir, India

 

 

Factory 11 :

Sun Pharma Medication Private Limited

I.G.C. Phase-I, Samba – 184121, Jammu and Kashmir, India

 

 

Factory 12 :

Sun Pharmaceutical Industries Inc.

705, E. Mulberry Street, Bryan, Ohio – 43506, USA

 

 

Factory 13 :

Sun Pharmaceutical Industries Inc.

270 Prospect Plains Road, Cranbury, New Jersey – 08512, USA

 

 

Factory 14 :

Caraco Pharmaceutical Laboratories Limited

1150 Elijah McCoy Drive, Detroit – 48202, Michigan, USA

 

 

Factory 15 :

Sun Pharmaceutical (Bangladesh) Limited

Chandana, Joydevpur, Gazipur, Bangladesh

 

 

Factory 16 :

Alkaloida Chemical Company Zrt

H-4440 Tiszavasvari , Kabay, Janos u.29, Hungary

 

 

Factory 17 :

TKS Farmaceutica

Rodovia GO-080, Km 02, Chacaras 01/02, Jardim Pompeia, Goiania/GO, Brazil CEP: 74690-170

 

 

Factory 18 :

Sun Pharma de Mexico S.A. de C.V, Av.

Rio Churubusco No. 658, Col. El Sifon, Del. Iztapalapa, C.P 09400 Mexico, Distrito Federal

 

 

Factory 19 :

Chattem Chemicals, Inc.

3708, St. Elmo Avenue, Chattanooga, TN 37409, USA

 

 

Factory 20 :

Taro Pharmaceuticals Inc.

130 East Drive, Brampton, Ontario L6T 1C1, Canada

 

 

Factory 21 :

Taro Pharmaceutical Industries Limited

14 Hakitor Street, P.O. Box 10347 Haifa Bay 26110, Israel

 

 

Factory 22 :

Dusa Pharmaceuticals Inc., 25, Upton Drive, Wilmington, Massachusetts, 01887, USA

 

 

Factory 23 :

URL Pharmaceuticals Inc., 1100 Orthodox Street, Philadelphia, PA 19124, USA

 

 

Factory 24 :

URL Pharmaceuticals Inc., 2500 Molitor Road, Aurora, IL 60502, USA

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. Israel Makov

Designation :

Chairman

 

 

Name :

Mr. Dilip S. Shanghvi

Designation :

Managing Director

Qualification :

B. Com.

Date of Appointment :

01.04.1993

 

 

Name :

Mr. Sudhir V. Valia

Designation :

Whole Time Director

Qualification :

FCA

Date of Appointment :

01.04.1994

 

 

Name :

Mr. Sailesh T. Desai

Designation :

Whole Time Director

 

 

Name :

Mr. S. Mohanchand Dadha

Designation :

Director

 

 

Name :

Mr. Hasmukh S. Shah

Designation :

Director

 

 

Name :

Mr. Ashwin Dani

Designation :

Director

 

 

Name :

Mr. Keki M. Mistry

Designation :

Additional Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Sunil R. Ajmera

Designation :

Company Secretary

 

 

Name :

Ms. Sheetal

Designation :

Accounts Department  

 

 

MAJOR SHAREHOLDERS

 

As on 31.03.2014

 

Category of Shareholder

Total No. of Shares

% of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

(1) Indian

 

 

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

304042200

14.68

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

1013024000

48.91

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

1280200

0.06

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

1280200

0.06

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

1318346400

63.65

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

 

 

Total shareholding of Promoter and Promoter Group (A)

1318346400

63.65

(B) Public Shareholding

 

 

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

 

 

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

24943604

1.20

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

36598631

1.77

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

1296420

0.06

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

51985309

2.51

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

466237186

22.51

http://www.bseindia.com/include/images/clear.gifQualified Foreign Investor

31600

0.00

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

581092750

28.06

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

 

 

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

52421989

2.53

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

 

 

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

76153544

3.68

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

32602698

1.57

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

10546529

0.51

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

1982954

0.10

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

2172188

0.10

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

1861577

0.09

http://www.bseindia.com/include/images/clear.gifForeign Corporate Bodies

617160

0.03

http://www.bseindia.com/include/images/clear.gifDirectors & their Relatives & Friends

3866650

0.19

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

46000

0.00

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

171724760

8.29

Total Public shareholding (B)

752817510

36.35

Total (A)+(B)

2071163910

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

2071163910

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Tablets, Capsules, Parenterals, Ointments, Bulk Drugs, Chemicals and Liquids.

 

 

Products :

ITC Code No.

Product Description

30049038

Pantaprazole Sodium

30033900

Losartan Potassium

30049065

Metformin Hydrochloride

29420090

Pentoxifyline

 

 

GENERAL INFORMATION

 

No. of Employees :

14000 (Approximately)

 

 

Bankers :

·         Bank of Baroda

·         Bank of Nova Scotia

·         Citibank N.A.

·         ICICI Bank Limited

·         Kotak Mahindra Bank Limited

·         Standard Chartered Bank

·         State Bank of India

 

 

Facilities :

SECURED LOANS

31.03.2013

Rs. In Millions

31.03.2012

Rs. In Millions

Long Term Borrowings

 

 

Loans Repayable on Demand (Secured):

 

 

Department of Biotechnology

(Secured by hypothecation of Assets and Goods pertaing to the project)

46.400

0.000

Short Term Borrowings

 

 

Loans Repayable on Demand (Secured):

 

 

Cash Credit Facility from Banks

(Secured by hypothecation of Inventories and Trade Receivables)

384.900

403.000

 

Total

431.300

403.000

 

Note :

 

Long Term Borrowing:

 

Repayable in 10 (Previous Year Nil) half-yearly installments of Rs. 4.600 Million each commencing from 31st March, 2017, Last installment is due on 30th September, 2021.

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants,

Address :

Mumbai, Maharashtra, India

 

 

Subsidiaries :

·         Alkaloida Chemical Company Zrt

·         Caraco Pharmaceutical Laboratories Limited

·         Chattem Chemical Inc

·         Green Eco Development Centre Limited

·         OOO "Sun Pharmaceutical Industries Limited

·         TKS Farmaceutica Ltda

·         Sun Pharma De Mexico S.A. DE C.V.

·         Sun Pharma De Venezuela, CA

·         Sun Pharma Global Inc

·         Sun Pharmaceutical (Bangladesh) Limited

·         Sun Pharmaceutical Industries (Europe) B.V.

·         Sun Pharmaceutical Industries Inc (merged with Caraco Pharmaceutical Laboratories Limited w.e.f. 28th February, 2013)

·         Sun Pharmaceutical Spain, S.L.

·         Sun Pharmaceuticals France

·         Sun Pharmaceuticals Germany GmbH

·         Sun Pharma Global (FZE)

·         Sun Pharmaceuticals Italia S.R.L.

·         Sun Pharmaceuticals UK Limited

·         Taro Pharmaceutical Industries Limited

·         Sun Pharmaceutical Industries (Australia) Pty. Limited

·         Aditya Acquisition Company Limited

·         Sun Pharmaceuticals (SA) (Pty) Limited

·         Sun Global Canada Pty Limited

·         Sun Pharmaceutical Peru S.A.C.

·         Taro Development Corporation

  • ZAO Sun Pharma Industriesx.
  • SPIL De Mexico S.A. DE C.V.
  • Caraco Pharma Inc
  • 3 Skyline LLC
  • One Commerce Drive LLC
  • Taro Hungary Intellectual Property Licensing LLC.
  • Taro International Limited
  • Taro Pharmaceuticals Inc.
  • Taro Pharmaceutical India Private Limited
  • Taro Pharmaceutical Laboratories INC
  • Taro Pharmaceuticals U.S.A., Inc.
  • Taro Pharmaceuticals Europe B.V.
  • Taro Pharmaceuticals Ireland Limited
  • Taro Pharmaceuticals North America, Inc.
  • Taro Pharmaceuticals UK Limited
  • Taro Research Institute Limited (merged with Taro Pharmaceutical Industries Limited w.e.f. 31st March , 2012)
  • Tarochem Limited
  • Morley and Company Inc
  • Sun Laboratories FZE
  • Taro Pharmaceuticals Canada, Limited
  • Sun Global Development FZE
  • Sun Pharmaceuticals Korea Limited
  • Sun Pharma Philippines Inc.
  • Caraco Pharmaceuticals Private Limited
  • Sun Pharma MEA JLT
  • Sun Pharma Healthcare FZE
  • Sun Pharma Japan Limited
  • Sun Pharma Laboratories Limited(Formerly, Sun Resin and Polymers Private Limited)
  • Sun Pharma Medication Private Limited
  • Sun Pharma Drugs Private Limited
  • Universal Enterprise Private Limited (w.e.f. 31st August, 2012)
  • ** Faststone Mercantile Company Private Limited
  • ** Neetnav Real Estate Private Limited
  • ** Realstone Multitrade Private Limited
  • ** Skisen Labs Private Limited
  • ** Softdeal Trading Company Private Limited
  • ** Orta Limited
  • ** Sun Universal Limited
  • ** Khyati Realty ME Limited

·         ** Aditya Pharma limited Liability Company

  • ** Alkaloida Sweden AB
  • ** Dusa Pharmaceuticals Inc
  • ** Dusa Pharmaceuticals New York Inc
  • ** Sirius Laboratories Inc
  • ** URL Pharma Inc
  • ** AR Scientific.Inc
  • ** Mutual Pharmaceutical Company, Inc.
  • ** United Research Laboratories, Limited
  • ** Dungan Mutual Associates, LLC

·         ** URL PharmPro, LLC

 

 

Controlled Entity :
  • Sun Pharmaceutical Industries
  • Sun Pharma Sikkim
  • Sun Pharma Drugs
  • Universal Enterprise Private Limited (upto 31st August, 2012)

 
  •  

Enterprise under significant Influence of Key Management Personnel or their relative :
  • Sun Petrochemicals Private Limited
  • Navjivan Rasayan (Gujarat) Private Limited
  • Sun Pharma Advanced Research Company Limited

 

 

* Controlled entities converted into private limited companies under Part IX of the Companies Act, 1956 w.e.f.31st August, 2012.

 

** Incorporated / Acquired during the year

 

 

CAPITAL STRUCTURE

 

As on: 30.09.2013

 

Authorised Capital : Rs. 3000.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs. 2071.164 Millions

 

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1500000000

Equity Shares

Re. 1/- each

Rs.1500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1035581955

Equity Shares

Re. 1/- each

Rs.1035.600 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1035.600

1035.600

1035.600

(b) Reserves & Surplus

76853.200

77745.600

65769.700

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

77888.800

78781.200

66805.300

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

46.400

0.000

0.000

(b) Deferred tax liabilities (Net)

1654.100

1339.100

1285.100

(c) Other long term liabilities

10.100

20.300

21.900

(d) long-term provisions

1314.900

986.200

86.800

Total Non-current Liabilities (3)

3025.500

2345.600

1393.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

384.900

403.000

505.300

(b) Trade payables

3632.700

4001.900

2696.600

(c) Other current liabilities

1451.500

625.400

420.800

(d) Short-term provisions

6081.500

5154.900

4244.200

Total Current Liabilities (4)

11550.600

10185.200

7866.900

 

 

 

 

TOTAL

92464.900

91312.000

76066.000

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

11347.600

9759.300

7831.800

(ii) Intangible Assets

10.300

13.700

112.100

(iii) Capital work-in-progress

3480.400

2488.700

1956.500

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

33764.900

35928.000

17785.900

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

4910.900

3385.400

1438.900

(e) Other Non-current assets

78.300

28.300

1.900

Total Non-Current Assets

53592.400

51603.400

29127.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

9410.500

8449.800

18228.300

(b) Inventories

8687.600

6400.700

6182.600

(c) Trade receivables

7375.300

7134.800

5426.200

(d) Cash and cash equivalents

4311.200

13277.100

12509.100

(e) Short-term loans and advances

8495.000

3906.100

4183.500

(f) Other current assets

592.900

540.100

409.200

Total Current Assets

38872.500

39708.600

46938.900

 

 

 

 

TOTAL

92464.900

91312.000

76066.000

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

24321.400

40155.600

31075.700

 

 

Other Income

2361.700

3428.500

1941.300

 

 

TOTAL                                    

26683.100

43584.100

33017.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

7057.900

9517.100

7131.300

 

 

Purchases of Stock-in-Trade

2009.600

1874.800

1766.800

 

 

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(105.300)

(817.300)

71.200

 

 

Employee Benefits Expense

2348.700

3165.600

2610.900

 

 

Other Expenses

7883.700

8829.200

6254.700

 

 

TOTAL                                    

19194.600

22569.400

17834.900

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

7488.500

21014.700

15182.100

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

858.200

757.200

642.300

 

 

 

 

 

 

PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX

6630.300

20257.500

14539.800

 

 

 

 

 

Less

EXCEPTIONAL ITEMS

0.000

2999.200

0.000

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX

6630.300

17258.300

14539.800

 

 

 

 

 

Less

TAX                                                                 

1464.800

283.400

701.800

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX

5165.500

16974.900

13838.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

33376.900

23517.000

18891.500

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend on Equity Share

5178.000

4401.000

3624.500

 

 

Corporate Dividend Tax

880.000

714.000

588.000

 

 

Transfer to General Reserve

520.000

2000.000

5000.000

 

BALANCE CARRIED TO THE B/S

31964.400

33376.900

23517.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports (FOB basis)

19238.000

14628.200

8963.600

 

 

Interest

4.100

0.000

0.900

 

 

Royalty

3.300

3.000

0.000

 

 

Others

369.800

14.700

41.100

 

TOTAL EARNINGS

19615.200

14645.900

9005.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2692.000

2895.200

2585.800

 

 

Packaging Material

944.400

669.000

337.300

 

 

Capital Goods

1217.600

907.800

903.500

 

 

Stores and Spares

498.600

347.100

213.200

 

TOTAL IMPORTS

5352.600

4819.100

4039.800

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.00

16.40

13.40

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
19.36

38.95

41.91

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
27.26

42.99

46.79

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
15.11

40.02

30.05

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09

0.22

0.22

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
0.01

0.01

0.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.36

3.90

5.97

 

 

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

1035.600

1035.600

1035.600

Reserves & Surplus

65769.700

77745.600

76853.200

Net worth

66805.300

78781.200

77888.800

 

 

 

 

long-term borrowings

0.000

0.000

46.400

Short term borrowings

505.300

403.000

384.900

Total borrowings

505.300

403.000

431.300

Debt/Equity ratio

0.008

0.005

0.006

 

 

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

31075.700

40155.600

24321.400

 

 

29.219

(39.432)

 

 

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

31075.700

40155.600

24321.400

Profit

13838.000

16974.900

5165.500

 

44.53%

42.27%

21.24%

 

 

 

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

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

 

HIGH COURT OF GUJARAT

TAX APPEAL No. 1679 of 2007

Status: PENDING                       (Converted from : ST/3691/2007)            CCIN No : 001092200701679

 

Last Listing Date: 27/02/2008

 

Coram: HONOURABLE MR.JUSTICE MOHIT S. SHAH

HONOURABLE MR.JUSTICE RAVI R.TRIPATHI

S.N

Name of the Petitioner

Advocate On Record

1

THE COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS

MR GAURANG H BHATT for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

S.N

Name of the Respondant

Advocate On Record

1

SUN PHARMACEUTICAL INDUSTRIES LIMITED

RULE SERVED for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

 

Presented On             : 03/12/2007                                                  Registered On                : 03.12.2007

Bench Category         : DIVISION BENCH                                   District                         : NAVSARI

Case Originated From: THROUGH ADVOCATE                          Listed                           : 119 times

Stage Name                : FOR ORDERS

 

Act   - TAXATION LAWS (CONTINUATION AND VALIDATION OF RECOVERY PROCEEDINGS) ACT, 1964           

Office Details

 

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

15/08/2007

VAKALATNAMA

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

MR GAURANG H BHATT:1

2

15/08/2007

DOCUMENT

RULE SERVED
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

RULE SERVED:1

3

03/02/2009

APPEARANCE NOTE

MR GAURANG H BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png1

-

MR GAURANG H BHATT:1

 

Court Proceedings

 

S. No.

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

1

01/02/2008

2

-

FOR FINAL HEARING - TAX MATTERS

NEXT DATE

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA  HONOURABLE MR.JUSTICE J.C.UPADHYAYA

2

27/02/2008

2

-

FOR ORDERS

FIXED RULE / ADMIT

HONOURABLE MR.JUSTICE MOHIT S. SHAH HONOURABLE MR.JUSTICE RAVI R.TRIPATHI

 

Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

Download

1

TAX APPEAL/1679/2007

HONOURABLE THE CHIEF JUSTICE Y.R.MEENA

HONOURABLE MR.JUSTICE J.C.UPADHYAYA

01/02/2008

N

ORDER

-

Y

Download

 

 

 

INDEX OF CHARGE:

 

Sr .No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10351563

31/03/2012

178,140,000.00

DEPARTMENT OF BIOTECHNOLOGY

6-8TH FLOOR, BLOCK NO.2, CGO COMPLEX, LODHI ROAD, NEW DELHI, DELHI - 110003, INDIA

B38042354

2

90099243

27/03/2002 *

500,000.00

THE BANK OF NOVA SCONA

MITTAL TOWER; B WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

3

90099216

26/09/2001 *

82,500,000.00

THE BANK OF NOVA SCOTIA

MAKER TOWER; B WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

4

90099197

22/05/2000

218,000,000.00

ICICI BANK LIMITED

FREE PRESS HOUSE, 215; NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

-

5

90095114

14/07/2004 *

7,500,000.00

LAKSHDEEP INVESTMENT AND FINANCE PRIVATE LIMITED

3; NARAYAN BUILDING; 23; L.N. ROAD, DADAR EAST, MUMBAI, MAHARASHTRA - 400014, INDIA

-

6

90095637

27/04/2000 *

7,500,000.00

NVFC FINANCE PRIVATE LIMITED

1843; 6TH CROSS 20TH MAIN, J.P. NAGAR; II PHASE, BANGLORE, KARNATAKA - 560078, INDIA

-

7

90095112

05/08/2004 *

15,000,000.00

RISK CAPITAL AND TECHNOLOGY FINANCE CORPORATION LIMITED

E-216; 3RD FLOOR, EAST KAILASH, NEW DELHI, DELHI - 110065, INDIA

-

8

90095086

18/02/2005 *

134,500,000.00

LAKSHDEEP INVESTMENT and FINANCE PRIVATE LIMITED

3; NARAYAN BUILDING; 23; L.N. ROAD, DADAR EAST, MUMBAI, MAHARASHTRA - 400014, INDIA

-

9

90095083

09/07/2005 *

32,500,000.00

INDUSTRIAL DEVELOPMENT BANK OF INDIA

IDBI TOWER, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

-

10

90101877

23/09/1998

250,000,000.00

ICICI LIMITED

163, BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA

-

 

* Date of charge modification

 

 

ROUND UP OF 2012-13

 

Successful acquisition of DUSA:

 

Acquired DUSA Pharmaceuticals, with all cash deal of approximately US$ 230 millions. DUSA provides access to Levulan® (aminolevulinic acid HCl) photodynamic therapy for the treatment of non-hyperkeratotic actinic keratoses or AKs of the face or scalp.  Additionally, DUSA’s BLU-U® treatment has been approved by USFDA for the treatment of moderate inflammatory acne vulgaris and general dermatological conditions. This acquisition denotes Sun Pharma’s first major initiative in establishing its presence in the US specialty pharma market.

 

Caraco - USFDA clearance: The USFDA gave clearance to Caraco (a wholly-owned subsidiary of Sun Pharma) for manufacturing three products, post inspection and confirmed that its facility is now in compliance with USFDA cGMP requirements.

 

Successful acquisition of URL: Caraco entered into a definitive agreement with Takeda pharmaceuticals Inc to buy URL Pharma’s non-colcrys business. URL was formerly a privately-held Philadelphia-based pharmaceutical company which was acquired by Takeda America Holdings, Inc. (TAH) in June, 2012. This acquisition expands Sun Pharma’s product basket in the US generics market.

 

Approvals: Received a total of 20 ANDA approvals from the US FDA during the year, including that for Doxorubicin Liposomal Injection.

 

Prandin judgment: The US courts ruled in favor of Caraco Pharmaceuticals Laboratories in its patent litigation against Novo Nordisk over Caraco’s generic version of Prandin®, Repaglinide Tablets. The final US FDA approval for this product was received in Jun-2013. Being the First-to-File Para-IV filer, Sun Pharma is entitled to 180 days of marketing exclusivity for this product in the US market.

 

Merger termination: Sun Pharma and Taro mutually agreed to terminate their merger agreement in the best interest of respective companies and shareholders.

 

Strengthened top management: Mr. Israel Makov was appointed as the Chairman of the Company. Mr. Makov is the former President and CEO of Teva Pharmaceutical Industries Limited (2002-2007). He is among Israel’s most respected corporate leaders, and is widely credited with Teva’s emergence as a global enterprise and a world leader in generic pharmaceuticals.

 

DIVISIONAL HIGHLIGHTS

 

FINANCIAL

 

Revenues increased from Rs.  347160.000 millions in FY12 to Rs. 61537.000 millions in FY13, a growth of 77%. This growth was driven by favorable pricing for some products, part contribution from the DUSA and URL acquisitions and a favorable currency. Revenue contribution from this geography increased to 54% in FY13 compared to 43% for FY12.

 

OPERATIONAL

 

As on 31st Mar-13, ANDAs for 138 products await approval, including 17 tentative approvals. Of the total 138 ANDAs awaiting approval; Sun Pharma has applied for 93 products (including nine tentative approvals), Caraco has applied for 24 products (including 5 tentative approvals) and Taro has applied for 21 products (including 3 tentative approvals). The URL acquisition adds ANDAs corresponding to 107 products to the Company’s US generics portfolio.

 

Taro

 

Taro’s performance has been quite strong in FY13. Taro’s topline grew by 24% to US$ 671 million, while the net profit surged by 30% to US$ 266 million. Most of the increase is catalyzed by better pricing environment, while volumes declined marginally. Taro enjoyed the benefits from favorable sale prices throughout the year.

 

Caraco

 

In Aug-2012, Caraco’s manufacturing facility and packaging sites in Detriot and Wixom, Michigan (USA) were cleared by the US FDA and allowed to resume manufacturing. With this, Caraco’s facility becomes compliant with US FDA cGMP norms. While the US FDA cleared the manufacturing of two products also, resumption of manufacturing of other products will have to undergo rigorous approval procedure. As a result, the increase in production at these sites and resultant revenue contribution is expected to be gradual.

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEP

(Rs. In Millions)

 

Quarter ended

Half Year Ended

Particulars

30.09.2013

Unaudited

30.06.2013

Unaudited

30.09.2013

Unaudited

Income from Operations

 

 

 

Net Sales / Income from Operations (Net of Excise Duty)

6587.000

5882.900

12469.900

Other Operating Income

196.400

293.500

489.900

Total Income from Operations (Net)

6783.400

6176.400

12959.800

Expenses

 

 

 

Cost of materials consumed

2135.900

2047.000

4182.900

Purchases of stock-in-trade

581.400

415.000

996.400

Changes in inventories of finished goods, work-in-progress and stock-in-trade

39.300

7.500

46.800

Employee benefits expense

698.800

690.600

1389.400

Depreciation and amortisation expense

245.500

236.400

481.900

Other expenses

2565.500

1772.700

4338.200

Total Expenses

6266.400

5169.200

11435.600

Profit from Operations before Other Income and Finance Costs

517.000

1007.200

1524.200

Other income (net of impact of MTM loss on forward foreign exchange contracts)

(346.000)

(351.000)

(697.000)

Profit before Finance Costs

171.000

656.200

827.200

Finance costs

0.900

0.800

1.700

Profit before Tax

170.100

655.400

825.500

Tax expense

107.100

198.400

305.500

Net Profit for the quarter / year

63.000

457.000

520.000

Paid-up Equity Share Capital

 

 

 

Equity Shares - Face Value Re.  1 each

2071.200

1035.600

2071.200

Reserves excluding Revaluation Reserve

 

 

 

Earnings Per Share of Rs. 1 each (Basic and Diluted)

0.03

0.22

0.25

 

 

SELECT INFORMATION FOR THE QUARTER ENDED SEPTEMBER 30, 2013

 

Part II

Quarter ended

Half Year Ended

Particulars

30.09.2013

Unaudited

30.06.2013

Unaudited

30.09.2013

Unaudited

 

 

 

 

Public Shareholding

 

 

 

Number of Equity Shares of Re.  1 each

752822510

376103755

752822510

Percentage of Shareholding

36.35

36.32

36.35

Promoters and Promoter Group Shareholding

 

 

 

Pledged / Encumbered

 

 

 

Number of Equity Shares of Re.  1 each

2850000

2845417

2850000

Percentage of Equity Shares (as a % of the total shareholding of promoter and promoter group)

 

0.22

0.43

 

0.22

Percentage of Equity Shares (as a % of the total share capital of the Company)

 

0.14

0.27

 

0.14

Non-encumbered

 

 

 

Number of Equity Shares of Re.  1 each

1315491400

656632783

1315491400

Percentage of Equity Shares (as a % of the total shareholding of promoter and promoter group)

 

99.78

99.57

 

99.78

Percentage of Equity Shares (as a % of the total share capital of the Company)

 

63.51

63.41

 

63.51

 

 

 

 

Research and Development Expenses incurred  (included above)

 

9431

6313

 

5808

 

Investor Complaints

 

Pending at the beginning of the quarter

 --

Received during the quarter

--

Disposed of during the quarter

--

Remaining unresolved at the end of the quarter

 --

 

Notes:

 

  1. STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Millions)

Particular

30.09.2013

 

EQUITY AND LIABILITIES

 

Shareholders’ funds

 

(a) Share capital

2071.200

(b) Reserves and surplus

76337.600

Sub-total - Shareholders' funds

78408.800

 

 

Non-current liabilities

 

(a) Long-term borrowings

46.400

(b) Deferred Tax Liabilities (Net)

1769.500

(c) Other Long-term Liabilities

22.800

(d) Long-term Provisions

2848.600

Sub-total - Non-current liabilities

4687.300

 

 

Current liabilities

 

(a) Short-term Borrowings

245.400

(b) Trade payables

4229.300

(c) Other current liabilities

15140.100

(d) Short-term provision

102.300

Sub-total - Current liabilities

19717.100

 

 

TOTAL - EQUITY AND LIABILITIES

102813.200

 

 

ASSETS

 

Non-current assets

 

(a) Fixed assets

15512.600

(b) Non-current investments

30087.600

(c) Long-term loans and advances

5603.100

(d) Other Non-current Assets

1.200

Sub-total - Non-current assets Current assets

51204.500

Current assets

 

(a) Current Investments

22468.700

(b) Inventories

8938.100

(c) Trade receivables

9221.700

(d) Cash and cash equivalents

2984.200

(e) Short-term loans and advances

6490.400

(f) Other current assets

1505.600

Sub-total - Current assets

51608.700

 

 

TOTAL - ASSETS

102813.200

 

 

  1. The above financial results of the Company have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on November 13, 2013 and have been subjected to a Limited Review by the Statutory Auditors of the Company.

 

  1. Other Operating Income for the quarter ended September 30, 2012 and year ended March 31, 2013 mainly represents Income from Partnership Firms. With effect from August 31, 2012, these Partnership Firms have been converted under Part IX of the Companies Act, 1956 into Private Limited companies, being wholly owned subsidiaries of the Company and accordingly, the corresponding figures for other quarters are not comparable.

 

  1. The Company has only one reportable business segment namely 'Pharmaceuticals'

 

  1. The Scheme of Arrangement in the nature of spin off and transfer of Domestic Formulation undertaking of the Company to Sun Pharma Laboratories Limited, wholly owned subsidiary, from the close of the business hours on March 31, 2012, being the appointed date, was approved by the Hon’ble High Courts of Gujarat and Bombay vide their Orders dated May 03, 2013 and the said Scheme became effective from May 27, 2013 upon filing of the said Orders with the Registrar of Companies. Accordingly, the effect of the Scheme was given in the financial results for the year ended March 31, 2013 only on an annual basis and approved by the Board of Directors at their meeting held on May 28, 2013. However, the financial results for quarterly periods during the year ended March 31, 2013 had been so approved without giving effect to the said Scheme and have not been restated in these results. In view of this, the figures for the quarter ended September 30, 2013 are not comparable with the figures for the quarters ended and half year ended September 30, 2013 due to effect of spin off and transfer of Domestic Formulation undertaking of the Company.

 

  1. In terms of the resolution passed by shareholders by way of Postal Ballot on July 15, 2013, the Company has allotted 1035581955 bonus equity shares on August 03, 2013 in the ratio of 1 equity share of Re.  1 each fully paid up for every equity share of Re.  1 each held. Consequently, the Earnings Per Share of Re.  1 each has been restated for all the periods presented based on the number of equity shares post bonus issue, i.e. 2071163910 equity shares, in accordance with Accounting Standard (AS-20) on Earnings Per Share’ as notified under the Companies (Accounting Standards) Rules, 2006.

 

  1. The Board of Directors of the Company at their meeting held today, approved the Scheme of Arrangement for spin off of specified therapeutic and investment business undertakings of Sun Pharma Global FZE, a wholly owned subsidiary, into the Company w.e.f May 1, 2013, without any consideration on a going concern basis consisting of all the assets and liabilities pertaining to the said business undertakings. The scheme being subject to approval by the shareholders and the relevant regulatory authorities, no effect thereof has been given in above results.

 

  1. Figures for the previous quarters / year have been regrouped wherever considered necessary, other than referred in Note 5 above.

 

 

FIXED ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Buildings – Leased

·         Plant and Equipment

·         Vehicles

·         Office Equipment

·         Furniture and Fixtures

·         Trademarks

·         Designs

 

 

PRESS RELEASE: 

 

SUN PHARMA SLIPS 2%, RANBAXY MERGER MAY BE DELAYED

 

Shares of Sun Pharma  slipped over 2 percent intraday on Friday as investors were worried that merger with  Ranbaxy may still be stuck in some roadblocks. According to a media report its merger with Ranbaxy Laboratories may take longer than usual to secure all regulatory clearances.

 

Earlier in May, Andhra Pradesh High Court had cleared the decks for the USD 4-billion deal by lifting the stay it had imposed. The deal, however, needs to be approved by regulatory bodies such as CCI, BSE, NSE and Sebi which were investigating the insider-trading allegations.

 

On April 6, Sun Pharma had announced to fully acquire Ranbaxy in an all-stock transaction with a total equity value of USD 3.2 billion, along with debt of USD 800 million, taking the overall deal value to USD 4 billion.

 

At 12:32 hrs, Sun Pharma was quoting at Rs 629.40, down Rs 12.55, or 1.95 percent while Ranbaxy Laboratories was at Rs 468.55, down Rs 7.95, or 1.67 percent on the BS

 

 

SUN PHARMA, TARO CALL OFF PLANNED MERGER

 

Friday, Feb 08, 2013

 

Mumbai: Sun Pharmaceutical Industries Limited and Taro Pharmaceutical Industries Limited have decided to terminate their August 2012 merger agreement, some three years after India’s largest drug maker by market capital acquired a majority stake in the Israeli company following a corporate battle that reached the courts in Israel and the US.

 

With the termination of the agreement, announced in a joint statement on Friday, Sun Pharma’s offer to all shareholders of Taro to buy their holdings at $39.50 (around Rs.2120 today) per share stands cancelled. Taro will, however, remain a subsidiary of the Indian company.

 

The move, announced the same day that Sun Pharma posted a 32% increase in third quarter net profit, follows objections raised by a group of investors, including minority shareholders, against the price offered by Sun Pharma, which is lower than the prevailing market price.

 

Sun Pharma in August said it plans to buy more shares in Taro from minority shareholders, including the public and a couple of institutional investors, to raise its stake in the Israeli company beyond the existing 66%. This offer was made to enable the merger of the company into Sun Pharma, which has turned around Taro since acquiring it at a time when it was ailing.

 

A merger would have given the Indian firm full control of the Israeli unit’s management. The proposed buyout of minority shareholders and the delisting of Taro from the New York Stock Exchange (NYSE) would have improved Sun Pharma’s cash flows because it would have saved on dividend payouts.

 

The firms said in their joint statement that they decided to call off the merger “in the best interests of the companies and their shareholders”. The decision was taken at the direction of the special committee formed to handle the merger plan, said the statement made after the close of stock-market trading in Mumbai.

 

Shares of Sun Pharma fell 0.63% to Rs.744.05 on BSE on Friday. The Sensex lost 0.49% to 19,484.77 points. Taro shares were trading 2.87% up at $52 on NYSE at 9.15pm India time.

 

“The termination of the merger plan will not have any significant impact on the revenue and the operations of Taro,” said Sun Pharma chairman Dilip Shanghvi in a conference call with media and analysts on Friday.In August, the merger deal was approved by Taro’s board of directors on the recommendation of the special committee.

 

Sun Pharma acquired a controlling stake in Taro in September 2010, after a three-year-long court battle between the two firms. They signed the first merger pact in May 2007.

 

The court battle was followed by a unilateral termination of this agreement by the Taro board after the firm’s promoters, Barry Levitt and his family, and a few institutional shareholders objected to the valuation. Following a series of battles in Israeli and US courts, Sun Pharma received a favourable order from the Supreme Court of Israel that allowed it to acquire a majority stake, including the whole holding of the promoters, in 2010.

 

With a 25% increase in net profit, the subsidiary contributed significantly to Sun Pharma’s third-quarter revenue and profit in fiscal 2013 that was announced on Friday.

 

“It (the termination of the merger) was quite expected as the shareholders had not agreed to the price of $39.50 a unit. Since the shares of Taro are currently traded at above $45 and also with the better performance, it would seem difficult to get shareholder consent for the merger at a lower price offer,” said Hitesh Mahida, an industry analyst with brokerage Fortune Equity Brokers (India) Limited.

 

“I don’t think termination will have any impact on the company’s business as Taro will remain a subsidiary of Sun Pharma till a consensus is made on the offer price,” he said.

 

Sun Pharma’s net profit rose to Rs.8810.000 Millionse from the year-ago quarter’s Rs.6680.000 Millions, it said on Friday. Exports grew 42% and margins widened substantially, helping it beat analysts’ estimates. Sales rose by one-third to Rs.28520.000 Millions in fiscal third quarter from Rs.21450.000 a year ago.

 

 

SUN PHARMACEUTICAL INDUSTRIES GETS FAVOURABLE US SUPREME COURT VERDICT IN PATENT CASE

 April 18, 2012

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NEW DELHI: Sun Pharmaceutical Industries today said the US Supreme Court has given a favourable verdict in its patent case against Novo Nordisk over generic Prandin tablets used for treating diabetes.

 

US Supreme Court has ruled in favour of the company's subsidiary, Caraco Pharmaceutical Laboratories, in it's patent litigation against Novo Nordisk over Caraco's generic version of prandin, repaglinide tablets, Sun Pharma said in a statement.

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"The Supreme Court, in a unanimous opinion, concluded that Caraco can seek correction of Novo Nordisk's inaccurate use code regarding the combination use of repaglinide and metformin for the treatment of type II diabetes," it added.

 

The judgement has said, "The text and context of the provision demonstrate that a generic company can employ the counterclaim to challenge a brand's overbroad use code. We accordingly hold that Caraco may bring a counterclaim seeking to 'correct' Novo's use code..."

 

Prandin is a registered trademark of Denmark-based drug firm Novo Nordisk.

 

The decision will help all generic companies prevent brand companies from misrepresenting their patents to the USFDA and improperly delaying or preventing generic companies from marketing their drugs, Sun Pharma said.

Caraco's abbreviated new drug application (ANDA) for generic Prandin is still awaiting approval by the United States Food and Drug Administration (USFDA), it added.

 

"Prandin has annual sales of approximately $ 230 million in the US," Sun Pharma said.

 

A separate appeal concerning the validity of patents for Prandin is pending before the Court of Appeals for the Federal Circuit after a lower court ruled in favour of Caraco, it added.

 

Scrips of Sun Pharma were trading at Rs 596.50 apiece in the afternoon on the BSE, up 2.11 per cent from its previous close.

 

 

SUN PHARMA REPORTS STRONG QUARTER

 

Net Sales Rs.34820.000 Millions, up 31%, Adjusted Net Profit Rs.12410.000 Millions, up 56%

 

Mumbai, August 09, 2013: Sun Pharmaceutical Industries Limited (Reuters: SUN.BO, Bloomberg: SUNP IN,

 

Highlights of Q1FY14 consolidated financials

 

  • Net sales/Income from operations at Rs. 34820.000 Millions, a growth of 31% over same quarter last year. Adjusted for the impact of one-time sales recorded in the domestic business in Q4FY12, which lowered Q1FY13 sales, the net sales have grown by 23% over Q1FY13.
  • Branded generic sales in India, at Rs. 8490.000 Millions, grew by 44% over Q1 last year. Adjusted sales growth of the domestic formulation business, as explained above, is 11%.
  • US finished dosages sale is US$ 364 million recording a growth of 28% (in US$ terms) over Q1 last year.
  • International formulation sales is US$ 81 million, and grew by 19% (in US$ terms) over same quarter last year.
  • EBITDA at Rs. 15310.000 Millions grew by 26% YoY while EBITDA margins were at 44%, compared to 46% in Q1 last year.
  • Recurring Net profit at Rs 12410.000 Millions witnessed a growth of 56% over Q1 last year; resulting margin of 36%.
  • Reported Net loss at Rs. 12760.000 Millions, on account of a provision of Rs 25170.000 Millions towards settlement for patent infringement litigation related to generic versions of ‘Protonix’.

 

These results were taken on record by the Board of Directors at a meeting held in Mumbai today.

 

Dilip Shanghvi, Managing Director of the Company said, “All our businesses continue to perform in-line with our expectations. We remain focused on strengthening our existing businesses and developing a differentiated and specialty driven product basket. We also continue to review opportunities to expand and strengthen our global footprint.”

 

India Branded Generics – Chronic Therapy Leadership

 

Sales of branded prescription formulations in India were at Rs. 8490.000 Millions, grew by 44% from Q1 last year, accounting for 24% of total sales. Adjusted sales growth for the quarter was 11%.

 

Sun Pharma is ranked 2rd and holds 5.1% market share in the Rs.72000.000 Millions Indian pharmaceutical market, as per June-2013 AIOCD-AWACS report. Based on SMSRC data for Feb-2013, the company continues to be ranked no. 1 based on share of prescriptions with 7 classes of specialists: psychiatrists, neurologists, cardiologists, ophthalmologists, orthopedicians, nephrologists and gastroenterologists.

 

10 products were launched in the first quarter.

 

The company has completed the process of transferring its domestic formulations business to Sun Pharma

Laboratories Limited, a wholly owned subsidiary.

 

US Formulations – Strong performance led by Sun portfolio

 

Sales in the US were at US$ 364 million for the quarter, up by 28%, accounting for 58% of total sales.

Taro recently posted overall sales of US$ 153 million for Q1FY14, a decline of 4% from the corresponding quarter

last year. Excluding the one-time charge related to price adjustments on contractual obligations, sales would have

been higher by 10% YoY. Taro’s Net profit for Q1 was US$ 59 million.

 

During the quarter, Sun Pharma settled the ongoing litigation pending in the US District Court, District of New

Jersey regarding Sun Pharma subsidiary’s generic pantoprazole. Under the terms of the litigation settlement

between Sun Pharma, and Wyeth, (now a division of Pfizer Inc.) and Altana Pharma AG, (now known as Takeda

GmbH) the parties have dismissed all their claims. Sun Pharma will pay a lump-sum US$ 550 million as a part of

this settlement.

 

Sun Pharma had already provided Rs. 5840.000 Millions in Q2FY13 towards this liability. For the quarter ended 30th Jun- 2013, the company has made a provision of Rs. 25170.000 Millions towards the difference between total settlement amount and past provision.

 

During the quarter, Sun Pharma’s subsidiary received a favourable verdict from the US Federal Circuit Court regarding its on-going patent litigation with Novo Nordisk for generic Prandin.

 

Rest of World – Growth traction continues

 

Formulation sales in rest of the world (ROW) markets outside of India and US were US$ 81 million in Q1FY14 registering a growth of 19% (in US$ terms). Excluding ex-US Taro sales, underlying sales growth in US$ terms for Sun Pharma’s business in these markets was 23% for Q1FY14.

 

Active Pharmaceutical Ingredients (API) – Focus on vertical integration

 

The API business continues to be largely used for vertical integration on key products. A cumulative of 243 DMF /

CEP applications have been made, with 171 approved so far. External sales of API, accounting for a fraction of the total API production, reached Rs 1930.000 Millions in Q1FY14 with marginal decrease of 4% over the same quarter last year.

 

Research – Investing for future

 

Consolidated R and D expense for Q1FY14 was Rs. 2050.000 Millions, at 6% of sales.

 

In the first quarter, ANDAs for 4 products were filed. After counting these, and adjusting for filings that were dropped, cumulatively ANDAs for 453 products have been filed by Sun Pharma and Taro with the USFDA (as on

June 30, 2013). ANDAs for 9 products received approvals in the first quarter, taking the total number of approvals to 320 (as on June 30, 2013). ANDAs for 133 products now await USFDA approval, including 19 tentative approvals. The above ANDA statistics exclude the discontinued/withdrawn products of URL.

 

The total number of patent applications submitted now stands at 791, with 503 patents granted so far.

 

 

 

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.60.10

UK Pound

1

Rs.102.40

Euro

1

Rs.81.88

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VRN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

9

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

75

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.