MIRA INFORM REPORT
|
Report Date : |
17.10.2014 |
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) : |
31.03.2014 |
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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. 595.660
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
: |
1500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 65240000 |
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Status : |
Good |
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Payment Behavior : |
Regular |
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Litigation : |
Exits |
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Comments : |
Subject is an established company having a fine track record. Financial position of the company is sound and healthy. 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. Note: The company has changed its financial year form 12 months to 15
months i.e. 01.01.2013 to 31.03.2014. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
Verdict
Implications: Apex court order may alter coal import dynamics. Traders go
slowly on talks over coal supply contracts, uncertainty over cancellation of
blocks weigh on stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn Business Empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electro herm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in Blue Ridge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had willfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
On Mobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan Facilities = A+ |
|
Rating Explanation |
Have adequate degree of safety and carry low credit risk |
|
Date |
September, 2014 |
|
Rating Agency Name |
ICRA |
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Rating |
Fund Based Facilities = A1+ |
|
Rating Explanation |
Have very strong degree of safety and carry lowest credit risk. |
|
Date |
September, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON CO-OPERATIVE (91-22-27892924)
LOCATIONS
|
Registered Office : |
201, Devavrata, Sector 17,
Vashi, Navi Mumbai – 400705, Maharashtra, India |
|
Tel. No.: |
91-22-27893199 |
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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 |
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Tel. No.: |
91- 80-6784 0738/ 000 |
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Fax No.: |
91- 80-67840700/800 |
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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.: |
91-80-67840730/000 |
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Fax No.: |
91-80-67840700/800 |
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Global Offices : |
Located at : USA
United Kingdom Unit
4, Metro Centre, Tolpits Lane,Watford, Hertfordshire, WD18 9SS, UK Singapore 8 Cross Street, No. 17-00 Singapore 048424 |
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GLOBAL PLANTS |
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Factory 1 : |
Oral Dosage Form
Facility – II 'KRS Gardens', Suragajakanahalli, Anekal Taluk, Bangalore - 560106, Karnataka, India |
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Factory 2 : |
Oral Dosage Form
Facility – I 124, Sipcot Industrial Complex, Hosur - 635126, Tamilnadu, India |
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Factory 3 : |
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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Factory 4 : |
Oral Dosage Forms
Facility – I Strides Vital Nigeria Limited Plot 2, Ladipo Oluwole Street, Off. Oba Akran Avenue, Ikeja, Lagos, Nigeria |
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Factory 5 : |
Semi-solids
Facility – V BeltapharmSpA - 20095, Cusano MIL. (MI) – Via Stelvio, 66 Italy |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Deepak Vaidya |
|
Designation : |
Chairman and Non-Executive Director |
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DIN
No.: DIN No.: |
00337276 |
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Name : |
Mr. Arun Kumar |
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Designation : |
Executive Vice Chairman and Managing Director |
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Qualification |
B.Com., PGDBM |
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DIN
No.: |
00084845 |
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Name : |
Mr. Mukul Sarkar |
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Designation : |
Nominee Director |
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|
00893700 |
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Name : |
Mr. P M Thampi |
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Designation : |
Independent Director |
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DIN
No.: |
00114522 |
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Name : |
Mr. Venkat S Iyer |
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Designation : |
Director |
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Name : |
Mr. M.R. Umarji |
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Designation : |
Non-executive Director |
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DIN
No.: |
00307435 |
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Name : |
Mrs. Sangita Reddy |
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Designation : |
Independent Director |
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DIN
No.: |
00006285 |
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Name : |
Mr. Bharat D Shah |
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Designation : |
Non – Executive Director |
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DIN
No.: |
00136969 |
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Name : |
Mr. A.K. Nair |
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Designation : |
Independent Director |
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Name : |
Mr. S Sridhar |
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Designation : |
Independent Director |
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DIN
No.: |
00004272 |
KEY EXECUTIVES
|
Name : |
Mr. Arun Kumar |
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Designation : |
Founder and Group Chief Executive Officer |
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Name : |
Mr. Sebi Chako |
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Designation : |
Chief Human Resources Officer |
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Name : |
Mr. Badree Komandur |
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Designation : |
Chief Human Officer and Company Secretary |
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Name : |
Mr. Mohan Kumar |
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Designation : |
Chief Executive Officer - Pharma |
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Name : |
Mr. Subroto Banerjee |
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Designation : |
President, Agila (India Region) |
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Name : |
Mr. Sihue B Noronha |
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Designation : |
Chief Executive Officer – Africa |
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Name : |
Mr. Joe Thomas |
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Designation : |
Chief Corporate Development Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
3387326 |
5.69 |
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|
13096876 |
21.99 |
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|
16484202 |
27.67 |
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Total shareholding of Promoter and Promoter Group (A) |
16484202 |
27.67 |
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(B) Public Shareholding |
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|
|
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|
2630043 |
4.42 |
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|
22888 |
0.04 |
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|
397073 |
0.67 |
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|
27072732 |
45.45 |
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|
97263 |
0.16 |
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|
30219999 |
50.73 |
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|
|
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|
1908358 |
3.20 |
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|
|
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|
4243172 |
7.12 |
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|
4156091 |
6.98 |
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|
5000 |
0.01 |
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|
2548799 |
4.28 |
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|
1877888 |
3.15 |
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|
180884 |
0.30 |
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|
290750 |
0.49 |
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|
96797 |
0.16 |
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|
80000 |
0.13 |
|
|
21005 |
0.04 |
|
|
1475 |
0.00 |
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|
12861420 |
21.59 |
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Total Public shareholding (B) |
43081419 |
72.33 |
|
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 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
59565621 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of all types of Bulk Drugs,
Pharmaceuticals, etc. |
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Products : |
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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 : |
1500 (Approximately) |
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Bankers : |
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Facilities : |
Note: LONG-TERM BORROWINGS Details of security
and terms of repayment for the long-term borrowings:
SHORT TERM
BORROWING (i) Details of security for the secured loans repayable on demand: Security: Working capital loans from banks are secured by first pari passu charge over current assets of the Company and second pari passu charge on movable and immovable fixed assets of the Company. Short-term loans are secured by pledge over current investments in mutual funds to the extent of Rs.400.000 Millions.
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Banking
Relations : |
-- |
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Statutory Auditors : |
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|
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 |
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Fax No.: |
91-80-66276011 |
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Internal Auditors : |
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|
Name : |
Grant Thornton International Chartered Accountants |
|
Address : |
Wings, 1st Floor, 16/1, Cambridge Road, Halasuru,
Bangalore-560008, Karnataka, India |
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Wholly Owned Subsidiaries |
Direct Holding
Indirect Holding
|
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Other Subsidiaries : |
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Joint Ventures : |
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Associates |
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Enterprises owned or significantly influenced by
key management personnel and relative of key management personnel : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
Authorized 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 |
|
|
|
|
|
|
59565621 |
Equity Shares |
Rs.10/- each |
Rs. 595.660
Millions |
|
|
|
|
|
NOTE:
Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the reporting period:
|
PARTICULARS |
31.03.2014 |
|
|
|
No. of shares |
(Rs. In Millions) |
|
Equity share of Rs.10/- each |
|
|
|
Opening balance |
58,803,721 |
588.040 |
|
Issued pursuant to employee stock option
plan |
761,900 |
7.620 |
|
Closing balance |
59,565,621 |
595.660 |
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 |
31.03.2014 |
|
|
|
No. of shares |
% |
|
Pronomz Ventures LLP |
12665000 |
21.26% |
|
Morgan Stanley Asia (Singapore) Private Limited |
3,965,140 |
6.66% |
|
DVI Fund Mauritius Limited |
3,118,378 |
5.24% |
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 |
31.03.2014 |
|
|
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 |
31.03.2014 |
|
|
No. of shares |
|
Towards Employee stock options under the various Strides Stock option
plans |
1,940,450 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 (15 Months) |
31.12.2012 (12 Months) |
31.12.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
595.660 |
588.040 |
583.800 |
|
(b) Reserves & Surplus |
15713.550 |
13126.100 |
13008.360 |
|
(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) |
16309.210 |
13714.140 |
13592.160 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3.520 |
2846.610 |
3639.350 |
|
(b) Deferred tax liabilities (Net) |
43.900 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
99.510 |
79.940 |
45.860 |
|
(d) long-term
provisions |
94.310 |
504.290 |
588.640 |
|
Total Non-current
Liabilities (3) |
241.240 |
3430.840 |
4273.850 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1937.120 |
2935.810 |
4142.280 |
|
(b) Trade
payables |
2170.790 |
1429.370 |
2096.120 |
|
(c) Other
current liabilities |
3086.260 |
1104.260 |
7684.170 |
|
(d) Short-term
provisions |
657.160 |
373.390 |
833.840 |
|
Total Current
Liabilities (4) |
7851.330 |
5842.830 |
14756.410 |
|
|
|
|
|
|
TOTAL |
24401.780 |
22987.810 |
32622.420 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3088.640 |
2285.870 |
2354.360 |
|
(ii)
Intangible Assets |
719.780 |
776.740 |
884.660 |
|
(iii)
Capital work-in-progress |
114.230 |
81.200 |
54.710 |
|
(iv)
Intangible assets under development |
257.170 |
214.470 |
15.420 |
|
(b) Non-current Investments |
6594.360 |
12953.230 |
7868.180 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1497.430 |
922.580 |
5835.170 |
|
(e) Other
Non-current assets |
3088.640 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
12271.610 |
17234.090 |
17012.500 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a)
Current investments |
3871.060 |
0.380 |
0.000 |
|
(b)
Inventories |
1368.010 |
1043.540 |
1303.190 |
|
(c) Trade
receivables |
2732.860 |
1930.960 |
2642.830 |
|
(d) Cash
and cash equivalents |
1749.630 |
293.300 |
814.610 |
|
(e)
Short-term loans and advances |
2277.960 |
2343.170 |
10520.270 |
|
(f) Other
current assets |
130.650 |
142.370 |
329.020 |
|
Total
Current Assets |
12130.170 |
5753.720 |
15609.920 |
|
|
|
|
|
|
TOTAL |
24401.780 |
22987.810 |
32622.420 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 (15 Months) |
31.12.2012 (12 Months) |
31.12.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
10638.460 |
7120.070 |
7496.200 |
|
|
|
Other Income |
1209.350 |
1189.080 |
195.990 |
|
|
|
TOTAL |
11847.810 |
8309.150 |
7692.190 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
5118.300 |
2815.420 |
3178.380 |
|
|
|
Purchase of stock in trade |
1182.080 |
1003.070 |
1072.110 |
|
|
|
(Increase)/Decrease in stock |
(82.180) |
66.760 |
66.180 |
|
|
|
Employees benefits expenses |
1113.740 |
709.190 |
629.760 |
|
|
|
Other Expenses |
1822.030 |
1568.570 |
1061.020 |
|
|
|
Exceptional Item |
(44948.42) |
(644.090) |
559.060 |
|
|
|
TOTAL
(B) |
(35794.450) |
6807.100 |
5448.390 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
47642.260 |
1502.050 |
2243.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1050.310 |
712.200 |
805.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
46591.950 |
789.850 |
1437.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
472.490 |
190.990 |
176.150 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
46119.460 |
598.860 |
1261.750 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10990.210 |
39.000 |
82.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
35129.250 |
559.860 |
1179.250 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
Transfer to General Reserve |
3512.920 |
43.000 |
NA |
|
|
|
Special dividend |
29783.300 |
0.000 |
NA |
|
|
|
Proposed Dividend |
297.830 |
117.990 |
NA |
|
|
|
Dividend |
2762.460 |
0.000 |
NA |
|
|
|
Tax on Dividend |
50.620 |
19.140 |
NA |
|
|
|
Balance
Carried to the B/S |
(1277.880) |
379.730 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports of Goods |
7959.230 |
5098.960 |
5404.610 |
|
|
|
Development Income |
72.760 |
30.170 |
447.590 |
|
|
|
Management advisory service
fees |
552.060 |
507.150 |
332.64 |
|
|
|
Interest |
645.150 |
516.340 |
10.230 |
|
|
|
Profit on sale of investment |
0.000 |
308.460 |
0.000 |
|
|
|
Share of Profit on Sale of Product |
14.740 |
11.610 |
0.000 |
|
|
|
Other Income |
12.540 |
9.200 |
131.260 |
|
|
TOTAL EARNINGS |
22790.560 |
6481.890 |
6326.330 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2546.100 |
1379.150 |
1241.020 |
|
|
|
Capital Goods |
118.760 |
69.290 |
37.120 |
|
|
|
Others |
86.710 |
66.070 |
11.560 |
|
|
TOTAL IMPORTS |
2751.570 |
1514.510 |
1289.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
593.65 |
9.55 |
20.30 |
|
|
|
Diluted |
591.14 |
5.84 |
20.13 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 (15 Months) |
31.12.2012 (12 Months) |
31.12.2011 |
|
PAT / Total Income |
(%) |
296.50 |
6.74 |
15.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
433.52 |
8.41 |
16.83 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
264.51 |
6.15 |
5.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
2.83 |
0.04 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.12 |
0.42 |
0.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.55 |
0.98 |
1.06 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.12.2011 |
31.12.2012 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
583.800 |
588.040 |
595.660 |
|
Reserves & Surplus |
13008.360 |
13126.100 |
15713.550 |
|
Net
worth |
13592.160 |
13714.140 |
16309.210 |
|
|
|
|
|
|
long-term borrowings |
3639.350 |
2846.610 |
3.520 |
|
Short term borrowings |
4142.280 |
2935.810 |
1937.120 |
|
Total
borrowings |
7781.630 |
5782.420 |
1940.640 |
|
Debt/Equity
ratio |
0.573 |
0.422 |
0.119 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.12.2011 |
31.12.2012 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
7496.200 |
7120.070 |
10638.456 |
|
|
|
(5.018) |
49.415 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.12.2011 |
31.12.2012 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
7496.200 |
7120.070 |
10638.456 |
|
Profit |
1179.250 |
559.860 |
35129.202 |
|
|
15.73% |
7.86% |
330.21% |
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 |
||||||||||
|
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 |
|||||||||
OPERATIONAL PERSPECTIVE:-
While the sale of the specialties business was much talked about, they progressed with growing their global pharma business registering revenue of Rs.13747.000 Millions and an EBITDA of Rs.2572.000 Millions (EBITDA margin stood at 19%). They had a foreign exchange loss; adjusted for which, their EBITDA would have been Rs.2836.000 Million with an EBITDA Margin at 21%. In the pharma business, they witnessed growth in all regions. Revenue from regulated markets grew from Rs.3560.000 Millions in FY 2012 to Rs.5060.000 Millions in FY 2013-14, despite delayed approvals in the US market. The revenue from the emerging markets increased from Rs.2179.000 Millions in FY 2012 to Rs.3351.000 Millions in FY 2013-14. This was driven by strong expansion in the African business with addition of five new countries and over 100 new field staff – their total Africa business spans 25 countries. Their revenue from institutional business grew from Rs.3520.000 Million in FY 2012 to Rs.5336.000 Millions in FY 2013-14. During the year, they launched their anti-malarial product in the institutional business. Steles Bio pharma their Biogenetics Division commenced its RandD initiatives at its new Centre in Bangalore. They had a negative EBITDA of Rs.41.000 Million, which Happened owing to initial set-up cost and RandD expenses in this space.
ADVANCING WITH PHARMA
GENERICS:
They are growing their global footprint in IP-led generics with efficient formulation development, complex manufacturing capabilities and operational flexibility. They have a diversified portfolio comprising over 300 products and strong regulatory and registration capabilities for regulated and emerging markets. Moreover, they are front ending through Strides Pharma Inc. in the US with focus on providing quality healthcare products with the Strides brand.
GROWING THEIR INDIAN
BRAND BUSINESS:-
They acquired ‘Raricap’ and India Branded Generic Business from Bafna Pharmaceuticals Limited, to strengthen their domestic brand business. This will enhance the Women and Child portfolio of their branded generics business. Bafna’s pan-India reach will facilitate Re-Nerve’s entry into new market segments. Re-Nerve, a vitamin B12 supplement, is their flagship brand, and among the fastest growing brands in India. Also, their strong presence across South India will help ‘Raricap’ reach a higher patient base.
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMY:
The financial year 2013-14 witnessed changing world dynamics with developed nations gaining strength and emerging markets witnessing moderate growth. The central banks played a pivotal role in the U.S., Japan and Europe by introducing unconventional monetary policies combined with fiscal stimulus, low interest rates and reassured commitment to facilitate recovery. However, emerging markets like Brazil and India witnessed domestic demand slowdown due to rising rates deployed to curb inflation. Global economic growth is estimated to be 3.4% in 2014 against 3.2% in 2013. The evolving housing sector and rising employment with reduced drag from fiscal consolidation in the US, coupled with high exports in the Eurozone is expected to drive advanced economies’ growth. Emerging economies like China and India are expected to grow with reforms for better governance and quality of growth along with removal of supply. According to the IMF, Sub-Saharan Africa is expected to grow at 5.4% in 2014 and 5.8% in 2015. Greater political stability and rapid structural reforms especially in infrastructure can bring a lasting transformation to these economies.
INDIAN ECONOMY:
The Indian economy grew at 4.7% in FY2013-14. Fiscal deficit is estimated to be 4.6% of GDP, below the targeted 4.8%, while it is projected at 4.1% of GDP for FY 2014-15. The CAD is estimated to be contained at 1.7% of GDP and is around US$ 45 billion as against previous year’s US$ 88 billion. With a stabilized rupee, rising exports and greater thrust on reforms to boost manufacturing and infrastructure as well as remove structural constraints, India is poised to witness accelerated future growth. According to a Deloitte report, India is one of the top-five emerging pharmaceutical markets. India’s life sciences and healthcare industry registered double-digit growth owing to rising sales of generic medicines, continued growth in chronic therapies and increasing penetration in rural markets. Pharmaceutical sales are projected to rise by 14.4% from US$ 23.6 billion in 2013 to US$ 27 billion in 2016. Increased exports will drive the domestic pharmaceutical market from stable to positive growth in the next fiscal.
GLOBAL PHARMACEUTICAL INDUSTRY:
The global pharmaceutical market is estimated to reach around US$1.2 trillion in 2017 from US$965.4 billion in 2012, registering compound annual growth rate (CAGR) of 3-6% during 2013-17. Developed markets like the US, Europe and Japan are expected to witness single-digit growth owing to a combination of economic and health austerity measures. Most emerging markets are likely to exhibit double-digit growth driven by economic prosperity, demographic factors, epidemiologic changes and improved state and private insurance funding available for healthcare and medicines. It is forecasted that the global spending share of developed markets (US, EU5 and Japan) will decrease to 53% in 2017 from 61% in 2012 whereas the combined share of emerging markets and rest of the world is estimated to reach 48% in 2017 from 39% in 2012.
CORPORATE GOVERNANCE:
The Company has complied with all the mandatory requirements of Corporate Governance specified by the Securities and Exchange Board of India through clause 49 of the Listing Agreement. As required by the said clause, a separate “Report on Corporate Governance” forms part of the Annual Report of the Company. A certificate from the Statutory Auditors of the Company regarding compliance with the conditions of Corporate Governance also forms part of this Report.
CORPORATE INFORMATION
The ‘Company’ or ‘Strides’ and its subsidiaries and joint ventures (together referred to as the ‘Group’) are into the development and manufacture of Pharmaceutical products. The Group is headquartered in Bangalore, India and operates across many countries spreading across developed and emerging markets. Strides is listed on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited.
UNSECURED LOANS
|
Unsecured Loans |
31.03.2014 |
31.12.2012 |
|
|
(Rs. In Millions) |
|
|
LONG-TERM BORROWINGS |
|
|
|
Term loan from banks |
0.000 |
2602.450 |
|
Total |
0.000 |
2605.450 |
STATEMENT OF STANDALONE
UNAUDITED RESULTS FOR THE QUARTER ENDED JUNE 30, 2014
Rs. In Millions
|
Particulars |
3 Months ended |
|
|
30.06.2014 |
||
|
Unaudited |
||
|
1 |
Income from Operations |
|
|
|
(a) Net sates/income from operations (Net
of excise duty) |
1879.530 |
|
|
(b) Other Operating Income |
128.477 |
|
|
Total income
from operations (net) |
2008.007 |
|
2 |
Expenses |
|
|
|
(a) Cost of materials consumed |
1058.771 |
|
|
(b) Purchases of stock-in trade |
82.954 |
|
|
(c) Changes in inventories of finished goods.
work-in-progress and stock in trade |
(84.610) |
|
|
(d) Employee benefits expense |
277.298 |
|
|
(e) Depreciation and Anmortisation Expenses |
108.000 |
|
|
(f) Other Expenses |
350.147 |
|
|
Total
expenses |
1792.560 |
|
3 |
Profit/ (Loss) from operations
before other Income, finance costs and exceptional Items (1-2) |
215.447 |
|
4 |
Other Income |
254.778 |
|
5 |
Profit/
(Loss) from operations before other income, finance costs and exceptional
items (3+4) |
470.225 |
|
6 |
Finance Costs |
86.086 |
|
7 |
Profit/
(Loss) from ordinary activities after finance cost but before exceptional
items (5-6) |
384.139 |
|
8 |
Exceptional items |
(5.587) |
|
9 |
Profit/
(Loss) from ordinary activities before tax (7+8) |
378.552 |
|
10 |
Tax expenses |
110.595 |
|
11 |
Net
Profit / (Loss) from ordinary activities after tax (9-10) |
267.957 |
|
12 |
Extraordinary item (net of tax expense) |
-- |
|
13 |
Net
Profit / (Loss) for the period (11-12) |
267.957 |
|
14 |
Share of profit' (loss) of associates |
-- |
|
15 |
Minority Interest |
-- |
|
16 |
Net
Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of
associates (13+14+15) |
267.957 |
|
17 |
Paid up equity share capital (Face Value of
Rs10/-each) |
595.656 |
|
18 |
Reserve excluding Revaluation Reserve as
per Balance Sheet of previous accounting year |
-- |
|
19 |
Earnings per
share of Rs.10/- each (not
annualised): |
|
|
|
(a) Basic |
4.50 |
|
|
(b) Diluted |
4.49 |
|
|
|
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
Public
Shareholding |
|
|
|
- Number of shares |
43081419 |
|
|
- Percentage of shareholding |
72.33% |
|
2 |
Promoters
and Promoter group shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of shares |
1876667 |
|
|
- Percentage of shares (as a % of the total
shareholding of Promoter & Promoter group) |
11.38% |
|
|
- Percentage of shares (as a % of the total
Share Capital of the Company) |
3.15% |
|
|
b) Non
Encumbered |
|
|
|
- Number of shares |
14607535 |
|
|
- Percentage of shares (as a % of the total
shareholding of Promoter & Promoter group) |
88.62% |
|
|
- Percentage of shares (as a % of the total
Share Capital of the Company) |
24.52% |
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
4 |
|
|
Received during the quarter |
113 |
|
|
Disposed off during the quarter |
117 |
|
|
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 July 25, 2014.
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. Figures for the quarter ended March 31, 2014 are the balancing figures between (a) the audited figures of the fifteen months period ended March 31, 2014 and (b) the published year to date figures upto the quarter ended December 31, 2013 which have been reclassified as per the classification followed at the period ended March 31, 2014.
5. During the quarter, the Company has acquired balance stake of 60% in Strides Actives Limited thereby making it a wholly owned subsidiary.
6. The Board of Directors of the Company in the Meeting held on December 10, 2013 have approved change of financial year of the Company from January-December to that of April-March. Consequently, the current financial year is for a period of 15 months i.e., from January 01, 2013 to March 31, 2014.
7. The Company has entered into an agreement' dated July 21, 2014 with Bafna Pharmaceuticals Limited (the 'seller') to acquire majority stake (74% ) of the Indian Branded Generic Business of the seller for o cash consideration of Rs. 481.000 Millions.
8. The Company is in the process of assessing the potential impact of depreciation on adoption of Schedule II of the Companies Act 2013, which has come into effect from April 01, 2014. Pending such assessment, no adjustments have been made in these results.
9. Exchange fluctuation gain/loss (net) included under Exceptional Items comprises the exchange gain / loss arising on account of restatement and settlement of long term foreign currency loans and intra-group loans & advances given and gain/ loss on related derivative contracts.
10. The Company's investment in Growth oriented Mutual Funds as at June 30, 2014 amounts to Rs. 36,50.000 Millions. The Net Asset Value of these growth funds as at June 30, 2014 is Rs. 3766.438 Millions.
11. 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.
FIXED
ASSETS
·
Freehold Land
·
Leased Hold Land
·
Buildings
·
Furniture and Fixtures
·
Office Equipment and Computers
·
Plant and Machinery
·
Motor Vehicles
·
Registration and Brands
·
Software Licenses
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 records 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 Finacial
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.61.48 |
|
|
1 |
Rs.98.23 |
|
Euro |
1 |
Rs.77.66 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.
X