MIRA INFORM REPORT

 

 

Report Date :

11.09.2014

 

IDENTIFICATION DETAILS

 

Name :

CADILA HEALTHCARE LIMITED

 

 

Registered Office :

‘Zydus Tower’, Satellite Cross Roads, Sarkhej – Gandhinagar Highway, Ahmedabad – 380015, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

15.05.1995

 

 

Com. Reg. No.:

04-025878

 

 

Capital Investment / Paid-up Capital :

Rs. 1024.000 Millions

 

 

CIN No.:

[Company Identification No.]

L24230GJ1995PLC025878

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMC00020G

 

 

PAN No.:

[Permanent Account No.]

AAACC6253G

 

 

Legal Form :

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

 

 

Line of Business :

Development, Production, Marketing and Distribution of Pharmaceutical Products.

 

 

No. of Employees :

Information Declined By The Management

 

 

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

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is an established company having excellent track record.

 

Financial position of the company is sound healthy. Fundamentals are strong.

Directors are reported to be well experienced, respectable and resourceful businessmen.

 

Share price are quoted high on stock exchange.

 

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

 

The company can be considered good for normal business dealings at usual trade terms and condition.

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

 

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

 

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

 

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating = AA+

Rating Explanation

High degree of safety and very low credit risk

Date

10.07.2014

 

Rating Agency Name

CRISIL

Rating

Short Term Rating = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk

Date

10.07.2014

 

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 DENIED BY

 

Management non co – operative

Tel No.: 91-79-26868100

 

LOCATIONS

 

Registered/ Corporate Office :

‘Zydus Tower’, Satellite Cross Roads, Sarkhej – Gandhinagar Highway, Ahmedabad – 380015, Gujarat, India

Tel. No.:

91-79-26770100 (EPBX) (20 Lines)/ 26868100/ 26868235

Fax No.:

91-79-26732365/ 26732366/ 26862365

E-Mail :

info@cadila-zydus.com

investor.grievance@zyduscadila.com

upen.shah@zyduscadila.com

Website :

http://www.cadilapharma.com 

http://www.zyduscadila.com

 

 

Factories :

Formulation Unit:

 

Ø                   S. No.417, 419 and 420, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat, India

Ø                   Kundaim Industrial Estate, Ponda – 403401, Goa, India

Ø                   Village Saraj Mujra, P. O.– Baddi,  Tehsil – Nalagarh, District – Solan, Himachal Pradesh, India

 

 

Topical Plant:

Plot No. 254/255, Behind Zyfine Chemicals, Sarkhej Bavla. N. H. No. 8A, Changodar Road, Taluka Sanand, District-Ahmedabad, Gujarat, India

 

 

Zydus Biologics:

Survey No. 40P, 23, 25P, 42, 37, Opposite Ramdev Masala, Sarkhej-Bavla N. H. No. 8A, Changodar, Ahmedabad, Gujarat, India

 

 

API Units :

Ø       GIDC Estate, Ankleshwar, Gujarat, India

 

Ø       Dabhasa, Tal. Padra, District Vadodara, Gujarat, India

 

Ø       Block No. 162, Ekalbara Umraya Road, Village Dabhasa, Taluka Padra, District-Vadodara, Gujarat, India

 

 

SEZ Unit:

Plot No. 1/1A, and 2, PHARMEZ, Sarkhej-Bavla N. H. No. 8A, Village – Matoda, Taluka Sanad, District-Ahmedabad

 

 

Zydus Research Center :

S. No. 396/403, Village Moraiya, Taluka Sanand, District Ahmedabad, Gujarat, India

 

 

Registrar and

Share Transfer Agents :

M/S. Sharepro Services (India) Private Limited, 416-420, 4th Floor, Devnandan Mall, Opp. Sanyas Ashram, Nr. M.J. Library, Ellisbridge, Ahmedabad - 380 009, Gujarat, India

 

 

Zyfine and

Topical Plant :

Block No. 265/266, Village Changodar, Sarkhej Bavla N.H.No. 8a, Changodar Road, Taluka- Anand, District-Ahmedabad, Gujarat, India

 

 

DIRECTORS

 

As on: 31.03.2014

 

Name

Mr. Ramanbhai B. Patel

Designation

Founder

Address

16, Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India

 

 

Name

Mr. Pankaj R. Patel

Designation

Chairman and Managing Director

 

 

Name

Dr. Sharvil P. Patel

Designation

Deputy Managing Director

Address

16, Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India

 

 

Name

Mr. Humayun Dhanrajgiri

Designation

Director

 

 

Name

Mr. Mukesh M. Patel

Designation

Director

 

 

Name

Mr. Nitin Raojibhai Desai

Designation

Director

 

 

Name

Mr. Apurva S. Diwanji

Designation

Director

 

 

Name

Mrs. Dharmishta N. Rawal

Designation

Director

 

 

KEY EXECUTIVES

 

Name

Mr. Upen H. Shah

Designation

Company Secretary

 

 

Name

Mr. Nitin D Parekh

Designation

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.06.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

153134446

74.79

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

3600

0.00

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

153138046

74.79

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

 

 

Total shareholding of Promoter and Promoter Group (A)

153138046

74.79

(B) Public Shareholding

 

 

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

 

 

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

7837398

3.83

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

375096

0.18

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

350

0.00

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

8704789

4.25

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

12143888

5.93

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

29061521

14.19

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

 

 

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

9847690

4.81

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

9320330

4.55

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

2832638

1.38

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

548295

0.27

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

548295

0.27

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

22548953

11.01

Total Public shareholding (B)

51610474

25.21

Total (A)+(B)

204748520

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)

204748520

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Development, Production, Marketing and Distribution of Pharmaceutical Products.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information Declined By The Management

 

 

Bankers :

·         Bank of Baroda

·         BNP Paribas

·         Credit Agricole Corporate and Investment Bank

·         Citibank N. A.

·         Exim Bank

·         HDFC Bank Limited

·         ICICI Bank Limited

·         IDBI Bank

·         State Bank of India

·         Standard Chartered Bank

 

 

Facilities :

 

Secured Loans

31.03.2014

31.03.2013

 

 

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

A Debentures [Secured]:

 

 

a) 9.70% Redeemable, Non-Convertible privately placed

1750.000

1750.000

b) 8.50% Redeemable, Non-Convertible privately placed

---

500.000

B Term Loans from Banks:

 

 

a) Term Loan [Secured]

---

250.000

b) External Commercial Borrowings in Foreign Currency [Secured]

5514.000

4020.000

SHORT TERM BORROWINGS

 

 

Loans repayable on Demand:

 

 

Working Capital Loans from Banks [Secured] [*]

1620.000

4005.000

 

 

 

Total

 

8884.000

10525.000

 

Note:

 

LONG TERM BORROWINGS

 

The Company has issued the following Secured Redeemable Non-convertible Debentures [“Debentures”]:

1,750 debentures each of Rs. 1.000 Million allotted on July 14, 2011, which carry interest rate of 9.7% p.a., payable on half-yearly basis. These debentures are redeemable at par at the end of five years from the date of allotment, with an option to the Company for redemption at the end of third year from the date of allotment. If the Company exercises its option, these debentures will be redeemed at the end of third year from its date of allotment.

 

 500 debentures each of Rs. 1.000 Million allotted on December 4, 2009, which carry interest rate of 8.5% p.a., payable on halfyearly basis. These debentures are redeemable at par at the end of five years from the date of allotment.

 

These debentures are secured by way of mortgage on specific trade mark[s] and pari-passu charge on land of the Company situated at Village Manipur in the State of Gujarat.

 

Rupee Term Loan:

Rupee Term Loan of Rs. 750.000 Millions is secured by an equitable mortgage of all immovable properties and hypothecation of movable plant and machineries, present and future, of the Company’s Formulation Unit at village Moraiya in the State of Gujarat on pari-passu basis with other lenders. The loan is further secured by way of a hypothecation of a specific trade mark. The loan is repayable in three yearly installments each of Rs. 250.000 Millions after a moratorium period of three years from the date of its origination [April 29, 2009] along with accrued interest for the period. Interest rates are reset at the end of every six months. Interest rate was fixed at 10% p.a. for April 2013, 9.85% p.a. w.e.f. May 1, 2013 till November 30, 2013 and at 10% p.a. from December 1, 2013 till year end. The outstanding amount of loan as at March 31, 2014 is Rs. 250.000 [as at March 31, 2013: Rs. 500.000] Millions.

 

Foreign Currency Loans:

 

External Commercial Borrowing [ECB] of USD 10.000 Millions is secured by an equitable mortgage of all immovable properties and hypothecation of movable properties [save and except stocks, book debts and all other current assets], present and future, of the Company’s API Unit at village Dabhasa/ Umraya in the State of Gujarat. The loan is further secured by way of hypothecation on a specific trade mark of the Company. The loan is repayable in five half-yearly equal installments after initial moratorium period of four years from the date of its origination [April 5, 2007] along with accrued interest for the period. Interest rates are reset every six months at the rate of 6 months USD LIBOR plus 71.5 bps p.a. The loan was fully repaid during the year on April 5, 2013. [as at March 31, 2013: Rs. 109.000 Millions].

 

ECB of USD 27 Millions is secured by hypothecation of specific trademarks of the Company. The loan is repayable in three half-yearly equal installments starting from April 12, 2012 along with accrued interest for the period. Interest rates are reset every six months at the rate of 6 months USD LIBOR plus 77.5 bps p.a. The loan was fully repaid during the year on April 9, 2013. [as at March 31, 2013: Rs. 489.000 Millions].

 

 

ECB of USD 15.000 Millions is secured by hypothecation of a specific trade mark of the Company. The loan is repayable on the maturity of loan at the end of five years and one day from the date of its origination [August 19, 2010] along with accrued interest for the period. Interest rates are reset every three months at the rate of 3 months USD LIBOR plus 275 bps p.a. The loan was fully repaid during the year on July 31, 2013. [as at March 31, 2013: Rs. 815.000 Millions].

 

ECB of USD 8.000 Millions is secured by hypothecation of a specific trade mark of the Company. The loan is repayable in six half yearly installments, first five installments each of Rs. 60.000 Millions [USD 1.000 Million] and the last installment of Rs. 180.000 Millions [USD 3.000 Millions] commenced from June 29, 2012 along with accrued interest for the period. Interest rates are reset every six months at the rate of 6 months USD LIBOR plus 160 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 240.000 [as at March 31, 2013: Rs.326.000] Millions.

 

ECB of USD 15.000 Millions is secured by hypothecation of a specific trade mark of the Company. The loan is repayable in three half yearly installments after initial moratorium period of five years from the date of its origination [October 17, 2011] along with accrued interest for the period. Interest rates are reset every month at the rate of 1 month USD LIBOR plus 205 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 899.000 [as at March 31, 2013: Rs. 815] Millions.

 

ECB of USD 20.000 Millions is secured by English mortgage of all immovable properties and hypothecation of movable plant and machineries, present and future, of the Company’s Formulation Unit at village Moraiya in the State of Gujarat on pari-passu basis with other lenders. The loan is repayable in five half yearly installments each of Rs. 240.000 Millions [USD 4.000 Millions] after a moratorium period of 30 months from the date of its origination [November 15, 2011] along with accrued interest for the period. Interest rates are reset every month at the rate of 1 month USD LIBOR plus 145 bps p.a. Facility fees of 0.72% to be paid in 4 equal installments with first four interest payment dates. The outstanding amount of loan as at March 31, 2014 is Rs. 1199.000 [as at March 31, 2013: Rs. 1086.000] Millions.

 

ECB of USD 6.670 Millions is secured by hypothecation of specific trademarks of the Company. The loan is repayable in two equal yearly installments starting from February 2, 2013 along with accrued interest for the period. Interest rates are reset every six months at the rate of 6 months USD LIBOR plus 150 bps p.a. The loan was repaid during the year on January 31, 2014. [as at March 31, 2013: Rs. 182.000 Millions].

 

ECB of USD 20.000 Millions is secured by hypothecation of specific trade marks of the Company. The loan is repayable in three half yearly equal installments after initial moratorium period of three years from the date of its origination [March 26, 2013] along with accrued interest for the period. Interest rate is reset every month at the rate of 1 month USD LIBOR plus 161 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 1199.000 [as at March 31, 2013: Rs. 1086.000] Millions.

 

ECB of USD 20 Millions secured by hypothecation of specific trademarks of the Company. The loan is repayable at the end of five years from the date of its origination [July 10, 2013] along with accrued interest for the period. Interest rate is reset every month at the rate of 1 month USD LIBOR plus 180 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 1199.000 [as at March 31, 2013: Rs. Nil] Millions.

 

ECB of USD 15.000 Millions secured by hypothecation of specific trademarks of the Company. The loan is repayable on August 20, 2015 along with accrued interest for the period. Interest rate is reset every month at the rate of 1 month USD LIBOR plus 165 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 899.000 [as at March 31, 2013: Rs. Nil] Millions.

 

ECB of USD 20.000 Millions [utilised 10.000 Millions] will be secured by hypothecation of specific trademarks of the Company. The loan is repayable in three equal yearly installments starting from the end of four years from the date of its origination [March 20, 2014] along with accrued interest for the period. Interest rate is reset every month at the rate of 1 month USD LIBOR plus 160 bps p.a. The outstanding amount of loan as at March 31, 2014 is Rs. 599.000 [as at March 31, 2013: Rs. Nil] Millions

 

SHORT TERM BORROWINGS

 

[*] Working Capital loans which are repayable on demand from Banks are secured by hypothecation of inventories of all types, save and except stores and spares relating to plant and machineries [consumable stores and spares], including goods in transit, bills receivables, book debts and other movables of the Company in the nature of current assets, including documents to title of goods. Interest in the range 9.70% p.a. to 12.75% p.a. PCFC interest is in the range of 45 bps to 60 bps over 1 month USD LIBOR.

 

[**] PCFC loan from Banks. It is repayable during April, 2014 to September, 2014. Interest in the range of 37 bps to 60 bps over 1 or 3 months USD LIBOR.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Mukesh M. Shah and Company

Chartered Accountants

Address :

3, H. K. House, Second Floor, Ashram Road, Ahmedabad – 380009, Gujarat, India

 

 

Subsidiary Companies/ Concerns:

·         Dialforhealth India Limited

·         Zydus Pharmaceuticals (USA) Inc. [USA]

·         Dialforhealth Unity Limited

·         Nesher Pharmaceuticals (USA) LLC [USA] [Formerly known as Zynesher Pharmaceuticals (USA) LLC]

·         Dialforhealth Greencross Limited

·         German Remedies Limited

·         Zydus Healthcare (USA) LLC [USA]

·         Zydus Pharmaceuticals Limited

·         Zydus Noveltech Inc. [USA]

·         Zydus Animal Health Limited

·         Zydus Healthcare S.A. (Pty) Limited [South Africa]

·         Zydus Wellness Limited

·         Simayla Pharmaceuticals (Pty) Limited [South Africa]

·         Zydus Wellness-Sikkim, a Partnership Firm Liva Healthcare Limited

·         Script Management Services (Pty) Limited [South Africa]

·         Zydus Nikkho Farmaceutica Ltda. [Brazil] [Formerly known as Zydus Healthcare Brasil Ltda]

·         Zydus Technologies Limited

·         Biochem Pharmaceutical Industries Limited

·         Zydus Pharmaceuticals Mexico SA De CV [Mexico]

·         Finest Procuring Solutions Limited

·         Zydus Pharmaceuticals Mexico Services Company SA De C.V.[Mexico]

·         Zydus Healthcare, a Partnership Firm Zydus International Private Limited [Ireland]

·         ZAHL B.V. [the Netherlands] [Formerly known as RFCL B.V.]

·         Zydus Netherlands B.V. [the Netherlands]

·         ZAHL Europe B.V. [the Netherlands] [Formerly known as RFCL Europe B.V.]

·         Zydus France, SAS [France]

·         Etna Biotech S.R.L. [Italy]

·         Bremer Pharma GmbH [Germany]

·         Zydus Pharma Japan Company Limited [Japan]

·         Zydus Lanka (Private) Limited [Sri Lanka]

·         Laboratorios Combix S.L. [Spain]

 

 

Joint Ventures :

·         Zydus BSV Pharma Private Limited

·         Zydus Hospira Oncology Private Limited

·         Zydus Nycomed Healthcare Private Limited

·         Bayer Zydus Pharma Private Limited

 

 

Enterprises significantly influenced by Directors and/ or their relatives:

·         Cadmach Machinery Company Private Limited

·         Western Ahmedabad Effluent Conveyance Company Private Limited

·         Zydus Hospitals and Healthcare Research Private Limited

·         Zydus Hospitals (Vadodra) Private Limited

·         Pripan Investment Private Limited

·         Zydus Hospitals (Rajkot) Private Limited

·         Zest Aviation Private Limited

·         MabS Biotech Private Limited

·         Zandra Infrastructure LLP

·         Zydus Infrastructure Private Limited

·         C. M. C. Machinery

·         Cadila Laboratories Private Limited

·         Cadam Enterprises

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

345000000

Equity Shares

Rs.05/- each

Rs. 1725.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

204748520

Equity Shares

Rs.05/- each

Rs. 1024.000 Millions

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[All figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1024.000

1024.000

1024.000

(b) Reserves & Surplus

35275.000

28091.000

24547.000

(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)

36299.000

29115.000

25571.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

8536.000

7941.000

6844.000

(b) Deferred tax liabilities (Net)

1236.000

1236.000

1248.000

(c) Other long term liabilities

206.000

272.000

193.000

(d) long-term provisions

468.000

348.000

476.000

Total Non-current Liabilities (3)

10446.000

9797.000

8761.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

5576.000

8514.000

4114.000

(b) Trade payables

4617.000

3607.000

2848.000

(c) Other current liabilities

2986.000

2695.000

4449.000

(d) Short-term provisions

2507.000

1792.000

1795.000

Total Current Liabilities (4)

15686.000

16608.000

13206.000

 

 

 

 

TOTAL

62431.000

55520.000

47538.000

 

 

 

 

II.    ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

15392.000

14644.000

12007.000

(ii) Intangible Assets

249.000

327.000

170.000

(iii) Capital work-in-progress

5306.000

4638.000

3117.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

12653.000

10640.000

11025.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

8032.000

7187.000

5505.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

41632.000

37436.000

31824.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

2924.000

2159.000

1097.000

(b) Inventories

6635.000

5872.000

5012.000

(c) Trade receivables

7220.000

6830.000

6158.000

(d) Cash and cash equivalents

894.000

916.000

1183.000

(e) Short-term loans and advances

2709.000

1910.000

1916.000

(f) Other current assets

417.000

397.000

348.000

Total Current Assets

20799.000

18084.000

15714.000

 

 

 

 

TOTAL

62431.000

55520.000

47538.000

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from operations

40421.000

35274.000

31508.000

 

 

Other Income

3086.000

529.000

2369.000

 

 

TOTAL                                     (A)

43507.000

35803.000

33877.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

10681.000

9441.000

7909.000

 

 

Purchases of Stock-in-Trade

3827.000

3324.000

3046.000

 

 

Changes in Inventories of Finished goods, Work-in-progress and Stock-in-Trade

(357.000)

(90.000)

(585.000)

 

 

Employee Benefits Expense

5251.000

4179.000

4345.000

 

 

Other Expenses

12949.000

11357.000

10115.000

 

 

TOTAL                                     (B)

32351.000

28211.000

24830.000

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

11156.000

7592.000

9047.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

425.000

1110.000

1261.000

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

10731.000

6482.000

7786.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1274.000

1168.000

1082.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

9457.000

5314.000

6704.000

 

 

 

 

 

Less

TAX                                                                  (H)

421.000

328.000

129.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

9036.000

4986.000

6575.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

11896.000

10094.000

6675.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

1000.000

1000.000

1000.000

 

 

Transfer to Debenture Redemption Reserve

450.000

450.000

450.000

 

 

Proposed Dividend

1843.000

---

----

 

 

 Interim Dividend

----

1536.000

1536.000

 

 

Corporate Dividend Tax on Proposed Dividend

273.000

198.000

170.000

 

BALANCE CARRIED TO THE B/S

17366.000

11896.000

10094.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

20038.000

15442.000

13569.000

 

 

Royalty, Know-how, professional and consultation fees

301.000

601.000

356.000

 

 

Other Earnings

274.000

193.000

711.000

 

TOTAL EARNINGS

20613.000

16236.000

14636.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2907.000

2360.000

1759.000

 

 

Stores & Spares

354.000

178.000

160.0000

 

 

Capital Goods

414.000

1112.000

718.000

 

 

Finished Goods

303.000

223.000

690.000

 

 

Packing materials

232.000

200.000

222.000

 

TOTAL IMPORTS

4210.000

4073.000

3549.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic and Diluted EPS

 

 

 

 

- Before Exceptional Items

44.13

24.35

32.11

 

- After Exceptional Items

44.13

24.35

32.11

 

QUARTERLY / SUMMARISED RESULTS

 

Particulars (Rs.Millions)

 

 

 

Jun 2014

Audited / UnAudited

 

 

 

UnAudited

Net Sales

 

 

 

11127.900

Total Expenditure

 

 

 

8489.400

PBIDT (Excl OI)

 

 

 

2638.500

Other Income

 

 

 

163.400

Operating Profit

 

 

 

2801.900

Interest

 

 

 

82.500

Exceptional Items

 

 

 

0.000

PBDT

 

 

 

2719.400

Depreciation

 

 

 

529.500

Profit Before Tax

 

 

 

2189.900

Tax

 

 

 

217.000

Provisions and contingencies

 

 

 

0.000

Profit After Tax

 

 

 

1972.900

Extraordinary Items

 

 

 

0.000

Prior Period Expenses

 

 

 

0.000

Other Adjustments

 

 

 

0.000

Net Profit

 

 

 

1972.900

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

20.77

13.93

19.41

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

23.40

15.06

21.28

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

21.27

13.21

20.07

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.26

0.18

0.26

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.39

0.57

0.43

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.33

1.09

1.19

 

 

FINANCIAL ANALYSIS

[All figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

1024.000

1024.000

1024.000

Reserves & Surplus

24547.000

28091.000

35275.000

Net worth

25571.000

29115.000

36299.000

 

 

 

 

long-term borrowings

6844.000

7941.000

8536.000

Short term borrowings

4114.000

8514.000

5576.000

Total borrowings

10958.000

16455.000

14112.000

Debt/Equity ratio

0.429

0.565

0.389

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

31508.000

35274.000

40421.000

 

 

11.953

14.591

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

31508.000

35274.000

40421.000

Profit

6575.000

4986.000

9036.000

 

20.87%

14.14%

22.35%

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. in Millions)

Particulars

31.03.2014

31.03.2013

31.03.2012

 

 

 

 

Current Maturities of Long Term Debt

1750.000

1400.000

1887.000

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

9]

Name of person contacted

Yes

10]

Designation of contact person

Yes

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

CASE DETAILS:

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 379 of 2014

 

Status : PENDING

(Converted from : O/ST/1050/2014)

CCIN No : 001092201400379

 

Last Listing Date: 28/04/2014

 

Coram

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

 

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX-I

MRS MAUNA M BHATT for: Appellant(s)  1

 

 

S.NO.

Name of the Respondant

Advocate On Record

1

CADILA HEALTHCARE LTD

·         RULE SERVED for :Opponent(s)  1

MR RK PATEL for :Opponent(s)  1

·         RULE SERVED for :Opponent(s)  1

MR RK PATEL for :Opponent(s)  1

 

 

 

Presented On

: 21/04/2014

Registered On

: 23/04/2014

Bench Category

: -

District

: AHMEDABAD

Case Originated From

: THROUGH ADVOCATE

Listed

: 28 times

 

StageName

ADMISSION (FRESH MATTERS)

Classification

DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

Act

INCOME-TAX ACT, 1961

Office Details

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

21/04/2014

APPEARANCE NOTE

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s)  1

0

MRS MAUNA M BHATT(174) for P:1

2

21/04/2014

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s)  1

20

MRS MAUNA M BHATT(174), for P:1

3

21/04/2014

CERTIFIED COPY

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s)  1

60

MRS MAUNA M BHATT(174), for P:1

4

25/04/2014

VAKALATNAMA

MR RK PATEL ADVOCATE
for RESPONDENT(s)  1

5

MR RK PATEL(1082) for R:1

Court Proceedings

S. No.

Notified Date

Court

Code

Board Sr. No.

Stage

Action

Coram

1

28/04/2014

7

2-

ADMISSION (FRESH MATTERS)

RULE/ADMIT

HONOURABLE MR.JUSTICE AKIL KURESHI 

HONOURABLE MS JUSTICE SONIA GOKANI

            Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

1

TAX APPEAL/379/2014

HONOURABLE MR.JUSTICE AKIL KURESHI 

HONOURABLE MS JUSTICE SONIA GOKAN

28/04/2014

N

ORDER

-

 

CERTIFIED COPY

 

S. No.

Applicant

Name

Application Type

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MR RK PATEL

ORDINARY

29/04/2014

O/17809/2014

28/04/2014

01/05/2014

05/05/2014

Delivered

ORDER

2

MRS MAUNA M BHATT

ORDINARY

29/04/2014

O/17775/2014

28/04/2014

01/05/2014

02/05/2014

Delivered

ORDER

 

 

 

UNSECURED LOANS

 

particulars

31.03.2014

31.03.2013

 

 

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Term Loans from Banks:

 

 

External Commercial Borrowings in Foreign Currency [Unsecured]

1199.000

1268.000

Deferred Payment Liabilities [Unsecured]:

 

 

Interest free deemed loan against deferment of sales tax:

 

 

a) From a Financial Institution

--

14.000

b) Deferred amount

--

56.000

From Others [Unsecured]

73.000

83.000

SHORT TERM BORROWINGS

 

 

Loans repayable on Demand:

 

 

Working Capital Loans from Banks [Unsecured] [**]

3956.000

4509.000

 

 

 

Total

5228.000

5930.000

 

Terms of Repayment for Unsecured Long Term Borrowings:

 

Interest Free Deemed loan against deferment of sales tax from a financial institution is guaranteed personally by the Chairman and Managing Director of the Company and another loan is interest free sales tax deferred loan, repayable in six equal yearly installments starting from May 30, 2009. The outstanding amount as at March 31, 2014 is Rs. 71.000 [as at March 31, 2013: Rs. 141.000] Millions.

 

Loan from Department of Science and Technology is repayable in ten yearly equal installments starting from November 1, 2012 along with interest @ 3% p.a. Interest accrued up to October 31, 2012 will be payable in 5 yearly installments along with repayment installment starting from November 1, 2012. The outstanding amount as at March 31, 2014 is Rs. 82.000 [as at March 31, 2013: Rs. 93.000] Millions.

 

ECB of USD 10.000 Millions is repayable in three equal yearly installments starting from May 14, 2012 along with interest for the period. Interest rates are reset every six months at the rate of 6 months USD LIBOR plus 150 bps p.a. The outstanding amount as at March 31, 2014 is Rs. 200.000 [as at March 31, 2013: Rs. 363.000] Millions.

 

ECB of USD 20.000 Millions is repayable in three yearly installments starting from December 26, 2016 along with interest for the period. The first installment of Rs. 360.000 Millions [USD 6 Millions] and the last two installments of Rs. 419.000 Millions [USD 7 Millions]. Interest rates are reset every month at the rate of 1 month USD LIBOR plus 223 bps p.a. The outstanding amount as at March 31, 2014 is Rs. 1199.000 [as at March 31, 2013: Rs. 1086.000] Millions.

 

ECONOMY AND INDUSTRY OVERVIEW

 

GLOBAL ECONOMY AND PHARMACEUTICAL INDUSTRY

 

The global economy appears to be on the path of revival with high income economies showing signs of firm recovery after years of low growth and/or recession. This recovery in the high-income economies is expected to be a major contributor to the projected acceleration in the global growth. In these countries, the drag on growth from fiscal consolidation and policy uncertainty is easing and private sector recoveries are gaining firmer footing. This likely acceleration in the global growth marks a significant shift from recent years when developing countries alone pushed the global economy forward. In addition to providing a sound basis for global growth, stronger high income growth and import demand are likely to be important drivers of developing countries’ exports. Economic activity and business sentiments improved in the developing countries from mid-2013 on the back of strengthening high-income demand and the rebound in China. This positive development though, was partially offset by tighter financial conditions and reduced capital flows. Increase in long-term interest rates in the United States in response to the expectations of the gradual withdrawal of quantitative easing was one of the key factors responsible for this.

 

The growth registered by the developing countries in 2013 was almost the same as the growth registered by them in 2012. However, some of the regions and/or countries of the developing world displayed significant variation in the growth rates registered in 2013 vis-à-vis 2012. While the countries of the developing Eastern Europe, Central Asia and Sub-Saharan Africa witnessed significant increase in the GDP growth in 2013 vis-à-vis 2012, countries of Middle East and North Africa registered significant decline in GDP growth over the same period.

 

The global pharmaceutical industry is estimated to have grown by approximately 3% in 2013 and reached a size of over US$ 975 bn. The growth in 2013 was lower compared to the growth of over 5% registered during the period 2007 to 2012. Healthcare spending in the US, the world's largest pharmaceutical market, as well as in Europe, declined marginally during 2013, while the Japanese pharmaceutical market grew by over 2.5% in 2013. On the other hand, developing markets of Asia, Africa, Australia and Latin America, which are termed as 'pharmerging' markets continued to grow by 10-14% in 2013, driving the overall growth of the global pharmaceutical industry.

 

Generic drugs continued to increase their share in the overall prescription for pharmaceutical drugs dispensed across the globe, though the growth in 2013 was impacted by relatively lower value of innovator drugs losing their patent protection compared to that in 2012. In the US, generic drugs now account for over 83% of the total prescriptions.

 

 

INDIAN ECONOMY AND PHARMACEUTICAL INDUSTRY

 

The Indian economy registered a growth of 4.9% during the financial year 2013-14, marginally better than the growth of 4.5% registered during the financial year 2012-13. However, the growth rate was much lower than the recent growth rates. Among the three sectors of the economy viz. agriculture, industry and services, the industrial sector was the worst performer as it grew by only 0.7% during the year 2013-14, mainly due to the de-growth registered by the manufacturing and mining sectors.

 

Overall inflationary pressure on the economy eased during the year. The average Wholesale Price Index (WPI) inflation rate for 2013-14 was 5.93% as against 7.35% during 2012-13, although it moved from below 5% during the initial part of the year to a peak of 7.52% in November 2013, from which it started a downward trend and fell below 6% in March 2014.

 

The financial year 2013-14 saw a steep depreciation of the Indian Rupee vis-à-vis global currencies. The exchange rate between the Indian Rupee and the US Dollar, which was at around Rs. 54 in the beginning of the financial year started an upward movement and reached a level of Rs. 68-69 in the month of August. From the month of October, the Indian Rupee started appreciating against the US Dollar but the exchange rate remained more or less in the range of Rs. 60-63 during the rest of the financial year.

 

The year 2013-14 turned out to be one of the worst phases for the Indian pharmaceutical market in the recent past as it grew by a mere 6.1% and reached a size of approximately Rs. 75,600 crores after growing well in excess of 10% during the previous few years (Source: AIOCD-AWACS Report, MAT March 2014). The Government of India notified the new Drug Price Control Order (DPCO) 2013 whereby it expanded the scope of the National List of Essential Medicines (NLEM), covering a larger number of medicines under the list and notified revised prices, mostly downward, for the same. This adversely impacted a large number of companies in the Indian pharmaceutical market as they realised lower prices as notified by the new DPCO 2013 on an increased number of products. The new DPCO, 2013 also adversely affected the volume growth during the year for the products covered under NLEM. During the year, the products covered under the NLEM saw an overall sales decline of approximately 8% whereas those out of the purview of the list grew by around 8.5%.

 

HOME MARKETS

 

INDIA FORMULATIONS

 

The year 2013-14 was a challenging one for the Company’s formulations business in India, currently the largest contributor to the topline. The price reductions imposed by the Government of India on the products covered under NLEM impacted both the volume and the value growth of these products. Despite this, the growth registered by the Company in the India Formulations Business was a little higher than the overall market growth of 6%.

 

The Company retained its leading positions in the participated market segments of cardiovascular, gastro intestinal, women's healthcare and respiratory therapeutic areas. The Company also gained 2 positions in the dermatology segment, from 6th rank last year to the 4th rank this year. 16 of the Company’s brands feature among the top 300 pharmaceutical brands in India.

 

The Company continued its drive of adding new products to the existing portfolio and launched more than 75 new products, including line extensions in India during the year. Of these, 19 were first-time launches. This included the launch of Lipaglyn (Saroglitazar), the first New Chemical Entity (NCE), discovered and developed indigenously by an Indian pharmaceutical company.

 

Overall, the Company’s formulations business in India posted sales of Rs. 24,644 Millions. During the year, up by 6.1% from Rs. 23,232 Millions last year.

 

 

US FORMULATIONS

 

The US remains the world’s largest pharmaceutical market accounting for more than 30% of the global market. The Company’soperations in the US are spearheaded by its wholly-owned subsidiary Zydus Pharmaceuticals (USA) Inc.

 

The Company is now ranked 8th amongst the US generic companies based on scripts (Source: IMS), moving two positions from the 10th rank last year.

 

The Company’s business in the US completed yet another year of successful operations and posted sales of Rs. 21,704 Mio., up by 44%. The Company launched 7 new products in the US during the year.

 

The Company filed a record 50 ANDAs with the USFDA during the year, taking the cumulative ANDA filings to 227.

 

The Company’s continuous endeavour to improve service levels coupled with a focus on quality has helped achieve high levels of customer satisfaction. The Company received the ‘Service Level Excellence’ award from a large US wholesaler with an overall customer service level exceeding 99%.

 

Going forward, the Company’s focus will continue to be on launching complex, difficult-to-make oral solids and formulations of other dosage forms like injectables, nasals, creams and ointments to further strengthen its position in the US generic market.

 

 

BRAZIL

 

Brazil, which is the largest pharmaceutical market in Latin America and one of the promising ‘pharmerging’ markets, has been undergoing the process of consolidation in the recent past. Entry of large distributors, big retail chains buying the smaller ones and the increased competition have posed new challenges for the existing companies. In 2013, the Brazilian pharmaceutical market grew by approximately 3%.

 

The overall market scenario and the lack of new product approvals posed several challenges to the Company during the year.Despite this, the Company continued its focus on brand building initiatives with an aspiration to be a leading player in the women's healthcare, respiratory, cardiovascular, diabetes and neuropsychiatry therapy segments. During the year, the Company took several initiatives in the areas of optimising the cost of operations, inventory management and sales force effectiveness.

 

The Company posted sales of Rs. 2,353 Millions. in Brazil during the year

 

MEXICO

 

The Mexican pharmaceutical market, valued at around US$ 10 bn., is the second largest pharmaceutical market in Latin America after Brazil. The Company is present in the Mexican pharmaceutical market through its subsidiary Zydus Pharmaceuticals Mexico S.A. de C.V.

 

The Company commenced commercial operations in Mexico in June 2013 and launched 7 products. During the year, the Company posted sales of Rs. 109 Millions in Mexico.

 

Going forward, the Company intends to expand its focus on the cardiovascular and the primary care specialty area by aggressively launching new products in the Mexican market.

 

 

OTHER MARKETS AND BUSINESSES

 

EUROPE

 

The Company is present in the generic market of France through its subsidiary, Zydus France SAS, while in the Spanish generic market, its presence is marked by its subsidiary, Laboratorios Combix S.L. During the year, the French generic market grew by about 6%, reflecting a fall in the Government-led initiatives to increase generic penetration towards the later part of the year. The French generic market is likely to remain challenging as the French government introduces price cuts to keep the healthcare costs down. The Spanish generic market, which is highly competitive, grew by 12% during the year. Going forward, this market is expected to continue strengthening as the fiscal crisis has started to ease.

 

During the year, the Company consolidated its business in France by restructuring the product portfolio and customer base which helped in improving overall profitability. The Company launched 8 new products in France, including two Day-1 launches. The Spanish business registered growth mostly in line with the market growth rate. The Company launched 12 new products, including one Day-1 launch in the Spanish market during the year. In both these markets, the focus now is on improving the profitability further by increasing the proportion of products supplied from India.

 

Overall, the Company’s business in Europe posted sales of Rs. 3,902 Mio. up by 6% during the year.

 

EMERGING MARKETS OF ASIA PACIFIC, AFRICA AND THE MIDDLE EAST

 

During the year, the Company continued to strengthen its branded generics business in the key markets of Asia Pacific, Africa and the Middle East. The Company launched over 35 new products in these markets during the year, including several firsts in these markets.

 

The Company posted sales of Rs. 3,592 Mio. in these markets during the year with a growth of 15% over the previous year.

 

JAPAN

 

During the year, the Company decided to discontinue its existing business in Japan, which was operated through its subsidiary Zydus Pharma Japan Company Limited

 

 

APIS

 

The Company’s APIs and intermediates’ business continued to provide support to the formulations business by providing key input materials in a timely and cost efficient manner for the Indian as well as the developed and emerging markets across the world and also contributed to the launch of new formulations in these markets. The API business also fulfilled the requirements of the external customers by supplying them APIs and intermediates in a timely manner and at the most competitive prices. During the year, the Company filed 10 more DMFs with the USFDA, taking the cumulative filings to 117.

 

During the year, the Company’s API business grew by 13% and posted sales of Rs. 3,497 Millions.

 

 

CONSUMER WELLNESS

 

The Company is present in the consumer wellness space through its subsidiary, Zydus Wellness Limited, which has three established brands viz. Sugar Free, a low calorie sugar substitute, EverYuth, a range of skincare products and Nutralite, a cholesterol free table spread.

 

During the year 2013-14, Sugar Free maintained its leadership position in the low calorie sugar substitute market with a market share of more than 93%, which virtually represents the entire low calorie sugar substitute market in India (Source: AC Nielsen).

 

The skincare category witnessed a slowdown primarily due to reduced discretionary spending on personal care products by consumers driven by high inflation, which has impacted all the three categories in which EverYuth has a presence viz. face wash, scrub and peel-off. The Company continued its thrust on new product launches with the launch of several variants in the existing categories.

 

Despite strong competition from lower priced regional brands, Nutralite continued to maintain its leadership position in the margarine category due to the focus on superior quality, high standards of customer service and launch of a lower priced variant of Nutralite called ‘Nutralite Yummy’ in North India.

 

During the year, Zydus Wellness Limited. registered a sales of Rs. 4,296 Millions. up by 5% and a net profit of Rs. 965 Millions. Marginally down by 1%.

 

ANIMAL HEALTH

 

With a strong presence, the Company ranks amongst the leading companies in India in the animal healthcare space. The Company has the distinction of launching one of the highest number of 'first time in India' products. During the year, the Company introduced a range of specialty products for companion animals through a separate division 'Petz' to focus on growing pet care needs. During the year, the Company launched 11 new products in the animal health market in India. Bremer Pharma GmbH, Germany, a subsidiary of the Company runs the global animal health business, which has a presence in more than 50 markets around the world.

 

On a consolidated basis, the Company’s animal health business posted sales of Rs. 2,754 Millions with a growth of 17% during the year.

 

INDEX OF CHARGES:

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10516028

07/08/2014

930,000,000.00

CITI BANK N.A.

CITIBANK BUILDING, 110, THOMPSON BOULEVARD,NASSU, 
BAHMAS, , BAHAMAS

C17406232

2

10504520

28/05/2014

1,204,040,000.00

THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED

9, RAFFLES PLACE,, # 01-01, REPUBLIC PLAZA,, SINGAPORE, - 048619, SINGAPORE

C07604234

3

10465522

21/11/2013

945,000,000.00

CITI BANK N.A.

CITIBANK BUILDING,110 THOMSON BOULEVARD, NASSU, - 0, BAHAMAS

B91692251

4

10456406

10/10/2013

1,300,000,000.00

BARCLAYS BANK PLC

1 CHURCHILL PLACE, E 14 5 HP, LONDON, - 1026167, UNITED KINGDOM

B88096995

5

10430802

31/05/2013

1,124,860,000.00

THE BANK OF TOKYO-MITSUBISHI UFJ LTD

9 RAFFLES PLACE, #01-01 REPUBLIC PLAZA, SINGAPORE - 048619, SINGAPORE

B76984210

6

10396390

17/06/2014 *

8,500,000,000.00

BANK OF BARODA

ASHRAM RROAAD BRANCH, VALLABH SADAN,, OPP. NATRAJ 
CINEMA,ASHRAM ROAD,, AHMEDABAD - 380009, GUJARAT, 
INDIA

C08947178

7

10332648

24/01/2012

1,020,000,000.00

THE BANK OF NOVA SCOTIA ASIA LIMITED

ONE REFFLES QUAY, # 20-01 NORTH TOWER, SINGAPORE, 
- 048583, SINGAPORE

B30856926

8

10323573

12/12/2011

384,000,000.00

BANK OF AMERICA N.A.

1ST FLOOR,DLF CENTRE, SANSAD MARG, NEW DELHI - 110001, DELHI, INDIA

B27990894

9

10201696

19/02/2010

500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG,, BA 
LLARD ESTATE,, MUMBAI - 400001, MAHARASHTRA, INDIA

A79162178

 

 

STATEMENT OF RESULTS FOR THE QUARTER ENDED 30/06/2014

(Rs. In Millions)

 

Particulars

30.06.2014

 

1

Income from operations

 

 

(a) Net sales/income from operations (net of excise duty)

9869.100

 

(b) Other operating income

1258.800

 

Total income from operations (net)

11127.900

 

 

 

2

Expenses

 

 

a) Cost of materials consumed

3165.500

 

b) Purchases of stock-in-trade

1153.700

 

c) Changes in inventories of finished goods, work-in- process and stock-in-trade

(518.900)

 

d) Employee benefits expense

1517.600

 

e) Depreciation and amortisation expense

529.500

 

g) Other expenses

3171.500

 

Total expenses

9018.900

 

 

 

3

Profit from operations before other income, finance costs and exceptional items (1-2)

2109.000

4

Other income

163.400

5

Profit before finance costs and exceptional items (3+4)

2272.400

6

Finance costs

82.500

7

Profit after finance costs but before exceptional items (5-6)

2189.900

8

Exceptional items

0.000

9

Profit before tax (7+8)

2189.900

10

Tax expense

217.000

11

Net Profit after tax (9-10)

1972.900

 

Extraordinary item

0.000

 

Net Profit/ (Loss) for the period (11-12)

1972.900

14

Paid-up equity share capital (Face value-7l per equity share)

1023.700

16

Reserves (excluding revaluation reserves) as per Balance Sheet of previous accounting year

 

18

Earnings per share (of 71 each) (for the period - not annualised)

 

 

Basic

9.64

 

Diluted

9.64

 

 

 

A

Particulars of Shareholding

 

1

Public Shareholding

 

 

- Number of shares

51610474

 

- Percentage of shareholding

25.21%

2

Promoters and Promoter group Shareholding a) Pledged/encumbered

 

 

-Number of shares

0

 

-Percentage of shares (as a % of the total shareholding of promoter and promoter group)

0.00%

 

-Percentage of shares (as a % of the total share capital of the Company)

0.00%

 

b) Non-encumbered

 

 

-Number of shares

153138046

 

-Percentage of shares (as a u u of the total shareholding of promoter and promoter group)

100.00%

1

Percentage of shares (as a % of the total share capital of

74.79%

 

 

Particulars

30.06.2014

Investment Complaints

 

Pending at the beginning of the quarter

0

Received during the quarter

7

Disposed of during the quarter

6

Remaining unresolved at the end of the quarter

1

 

Note:

 

The above results for the quarter ended on June 30, 2014 were reviewed by the Audit Committee and then approved by the Board of Directors at their meeting held on July 30, 2014.


The Statutory Auditors of the Company have carried out a "Limited Review" of the above results as per clause 41 of the Listing Agreement.


Effective from April 1, 2014, the Company has changed the depreciation charge based on the revised remaining useful lives of the assets as per the requirement of Schedule II of the Companies Act, 2013. Due to this, the depreciation charge for the quarter ended June 30, 2014 is higher by Rs. 1,61.300 millions on Standalone basis [Rs. 1,83.800 millions on Consolidated basis]. Further, based on transitional provision provided in Note 7(b) of Schedule II, an amount of Rs. 2,49.700 millions on Standalone basis [Rs. 2,59.400 millions on Consolidated basis], which pertains to the carrying value of the assets whose remaining useful life as on April 1, 2014 is "Nil", has been adjusted to the Retained Earnings. 


The Company has incorporated Zydus Discovery DMCC as a wholly owned subsidiary in Dubai on June 15, 2014.

The changes in investments during the quarter are as under:


Zydus Worldwide DMCC [initial investments] - Rs. 0.800 million

Zydus Healthcare Philippines Inc. [additional investments] - Rs. 2.600 millions

Zydus International Private Limited [additional investments] - Rs. 463.300 millions


Figures of previous reporting periods have been regrouped/ reclassified wherever necessary to correspond with the figures of the current reporting period.


The Company has one segment of activity viz., "Pharmaceuticals''.

 

PRESS RELEASES:

 

ZYDUS RECEIVES FINAL APPROVAL FOR TELMISARTAN TABLETS

 

Ahmedabad, 29 August 2014

 

Zydus Cadila has received the final approval from the USFDA to market Telmisartan Tablets,

20mg, 40mg and 80mg.

 

The estimated sales in 2014 for Telmisartan Tablets which fall in the anti-hypertensive

Segment is USD 233.3 million, as per IMS.

 

The group now has 96 approvals and has so far filed 249 ANDAs since the commencement

of the filing process in FY 2003-04.

 

ZYDUS RECEIVES FINAL APPROVAL FOR ACYCLOVIR TABLETS

 

Ahmedabad, 20 August 2014

 

Zydus Cadila has received the final approval from the USFDA to market Acyclovir Tablets in

the strengths of 400 mg and 800 mg. The drug falls under the anti-viral segment.

 

The estimated sales in 2014 for Acyclovir Tablets is USD 55.8 million, as per IMS.

 

The group now has 95 approvals and has so far filed 249 ANDAs since the commencement

of the filing process in FY 2003-04.

 

FIXED ASSETS:

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipments

·         Vehicles

·         Trademarks, Patents and Designs

·         Technical Know-how

·         Commercial Rights

 

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 records 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 judgment 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 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.60.82

UK Pound

1

Rs.98.15

Euro

1

Rs.78.66

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Report Prepared by :

JAY

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--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

 

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.