MIRA INFORM REPORT

 

 

Report Date :

30.09.2014

 

IDENTIFICATION DETAILS

 

Name :

DR. REDDY’S LABORATORIES LIMITED

 

 

Registered Office :

8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034, Telangana 

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

24.02.1984

 

 

Com. Reg. No.:

01-004507

 

 

Capital Investment / Paid-up Capital :

Rs.851.000 Millions

 

 

CIN No.:

[Company Identification No.]

L85195TG1984PLC004507

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

HYDD00080D

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer and Seller of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

 

 

No. of Employees :

19000 (Approximately) (Worldwide)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (79)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

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

Large

 

Maximum Credit Limit :

USD 373160000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old, well established and a reputed company engaged in manufacturing and marketing of pharmaceuticals having excellent track record.

 

The company manufacturers wide range of pharmaceuticals products in India and Overseas.

 

The company is doing well. Financial position of the company is sound. Fundamentals are strong and healthy. Directors are reported to be experienced, respectable and resourceful businessmen.

 

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

 

The company can be considered good for normal business dealings under usual trade terms and conditions.

 

NOTES :

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

 

 

ECGC Country Risk Classification List – 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

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 Electrotherm 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 BlueRidge 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 wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile 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

Fund Based = AA+

Rating Explanation

High degree of safety and very low credit risk.

Date

April 2013

 

 

Rating Agency Name

ICRA

Rating

Non-Fund Based = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

April 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

 

LOCATIONS

 

Registered Office/ Corporate Office :

8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500034, Telangana, India

Tel. No.:

91-40-49002900

Fax No.:

91-40-49002999

E-Mail :

shares@drreddys.com

drl@hd1.vsnl.net.in

corpcom@drreddys.com

vasudevan@drreddys.com

pavanknvs@drreddys.com

ssrinivasan@drreddys.com

nikhilshah@drreddys.com

Website :

www.drreddys.com  

 

 

API Manufacturing Facilities :

·         API Hyderabad Plant 1

Plot No. 137, 138, IDA Bollaram, Jinnaram Mandal Medak District - 502325, Andhra Pradesh, India

 

·         API Hyderabad Plant 2

Plot No. 75B, 105, 110 and 111, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Andhra Pradesh, India

 

·         API Hyderabad Plant 3

Plot No. 116, 116A and 126C and SY No. 157, IDA Bollaram, Jinnaram Mandal, Medak District - 502325, Andhra Pradesh, India

 

·         API Hyderabad Plant 4

Plot No. 9/A, 9/B, 22A, 22B and 22C, Phase – III, IDA Jeedimetla, Ranga Reddy District – 502325, Andhra Pradesh, India

 

·         API Nalgonda Plant

Peddadevulapally, Tripuraram Mandal, Nalgonda District – 502325, Andhra Pradesh, India

 

·         API Srikakulam Plant

IDA, Pydibheemavaram Ransthal Mandal Srikakulam, District - 502325, Andhra Pradesh, India

 

·         API Srikakulam Plant (SEZ)

Sector No. 28 and 34 Devunipalavalasa Village, Ranastalam Mandal, Srikakulam District - 502325, Andhra Pradesh, India

 

 

Formulation Manufacturing

Facilities :

·         Formulations Hyderabad Plant 1

Plot No. 146, IDA Bollaram, Jinnaram Mandal, Medak District – 502325, Andhra Pradesh, India

 

·         Formulations Hyderabad Plant 2

S Y No. 42, 45, 46 and 54 Bachupally, Qutubullapur Mandal, Ranga Reddy District – 502325, Andhra Pradesh, India

 

·         Formulations Hyderabad Plant 3

S Y No. 41 Bachupally, Qutubullapur Mandal, Ranga Reddy – 502325, Andhra Pradesh, India

 

·         Formulations Yanam Plant

Ward-F, Block-4, Adavipolam Yanam, Pondicherry – 533464, Tamilnadu, India

 

·         Formulations Baddi Plant 1

Khol, Nalagarh Solan, Nalagarh Road, Baddi – 173205, Himachal Pradesh, India

 

·         Formulations Vizag Sez Plant

Plot No P1-P9, Phase III Duvvada, VSEZ, Visakapatanam – 530046, Andhra Pradesh, India

 

·         Formulations Baddi Plant 2

Village Mauja Thana, Nalagarh Baddi Road, Baddi, District Solan – 173205, Himachal Pradesh, India

 

·         Formulations Srikakulam Plant (SEZ)

Sector No. 9-13 and 17-20 Devunipalavalasa Village, Ranastalam Mandal, Srikakulam District – 532409, Andhra Pradesh, India

 

·         Biologics

Survey No.47, Bachupally Quthbullapur Mandal, Ranga Reddy District – 500043, Andhra Pradesh, India

 

 

Research and Development Facility :

·         Integrated Product Development Organisation (IPDO)

Bachupally Village, Qutubullapur Mandal, Ranga Reddy District - 500123, Andhra Pradesh, India

 

·         Aurigene Discovery Technologies Limited (ADTL), Bangalore

 

·         39-40, KIADB Industrial Area, Electronic City Phase II, Hosur Road, Bangalore - 560100, Karnataka, India

 

·         ADTL, Hyderabad

Bollaram Road, Miyapur Hyderabad - 500049, Andhra Pradesh, India

 

·         Technology Development Centre Hyderabad 1

Bollaram Road, Miyapur Hyderabad - 500049, Andhra Pradesh, India

 

·         Technology Development Centre Hyderabad 2

Plot 31A, IDA, Jeedimetla Hyderabad - 500050, Andhra Pradesh, India

 

 

Facility Locations Outside India :

·         Kunshan Rotam Reddy Pharmaceutical Company Limited

No. 258, Huang Pu Jiang (M) Road, Kunshan Development Zone, Jiangsu Province P. R. China 215300

 

·         API CUERNAVACA PLANT Industrias Quimicas Falcon de Mexico S.A. de C.V.

Carretera Federal Cuernavaca-Cuautla KM 4.5 CIVAC, Jiutepec, Morelos Mexico 62578

 

·         Dr. Reddy’s Laboratories (UK) Limited

6, Riverview Road, Beverly, East Yorkshire HU 17 OLD, United Kingdom

 

·         Dr. Reddy’s Laboratories (EU) Limited

Steanard Lane, Mirfield, West Yorkshire, WF 14, 8HZ, United Kingdom

 

·         Chirotech Technology Limited

410 Cambridge Science Park Milton Road, Cambridge CB4 0PE, United Kingdom

 

·         Dr. Reddy’s Laboratories Louisiana LLC

8800 Line Avenue, Shreveport, Louisiana 71106. USA

 

·         Dr. Reddy’s Laboratories Tennessee LLC

P.O. Box 9002, 201 Industrial Drive Bristol, TN 37621- 9002, USA

 

·         Dr. Reddy’s Laboratories New York Inc.

1974 Route 145, Middleburgh, New York 12122, USA

 

·         Technology Development Centre leiden OctoPlus N.V.

Zernikedreef 12, 2333 CL Leiden, The Netherlands

 

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. Satish Reddy

Designation :

Chairman

Date of Birth/ Age :

47 Years

Qualification :

B. Tech., M.S. (Medicinal Chemistry)

 

 

Name :

Mr. Anupam Puri

Designation :

Independent Director

Date of Appointment :

04.06.2002

 

 

Name :

Dr. Ashok Sekhar Ganguly

Designation :

Independent Director

 

 

Name :

Mr. G V Prasad

Designation :

Co-Chairman and Chief Executive Officer

Date of Birth/ Age:

54 Years

Date of Appointment:

30.03.2013

Qualification:

B.Sc. (Chem. Eng.), M.S. (Indl. Admn.)

 

 

Name :

Mr. Bruce L A Carter

Designation :

Independent Director

Date of Appointment :

21.07.2008

 

 

Name :

Dr. J P Moreau

Designation :

Independent Director

Date of Appointment :

18.05.2007

 

 

Name :

Ms. Kalpana Morparia

Designation :

Independent Director

Date of Appointment :

05.06.2007

 

 

Name :

Dr. Omkar Goswami

Designation :

Independent Director

Date of Appointment :

21.07.2008

 

 

Name :

Mr. Sridar Iyengar

Designation :

Independent Director

 

 

Name :

Mr. Ravi Bhoothalingam

Designation :

Independent Director

Date of Appointment :

30.10.2000

 

 

KEY EXECUTIVES

 

Name :

Dr. R Ananthanarayanan

Designation :

President Pharmaceutical Services and Active Ingredients

 

 

Name :

Dr. S Chandrasekhar

Designation :

President And Head, Human Resources

 

 

Name :

Alok Sonig

Designation :

Senior Vice President and Head, India Business (Generics)

 

 

Name :

Samiran Das

Designation :

Executive Vice President and Head, FTO and Ggpm

 

 

Name :

Dr. Raghav Chari

Designation :

Executive Vice-President, Proprietary Products

 

 

Name :

M V Ramana

Designation :

Executive Vice-President and Head, Emerging Markets, Global Generics

 

 

Name :

Dr. Amit Biswas

Designation :

Executive Vice-President, Integrated Product Development

 

 

Name :

Abhijit Mukherjee

Designation :

Chief Operating Officer

 

 

Name :

Dr. K V S Ram Rao

Designation :

Senior Vice-President and Head, Chemical Technical Operations (CTO)

 

 

Name :

Dr. Cartikeya Reddy

Designation :

Executive Vice-President and Head, Biologics

 

 

Name :

Saumen Chakraborty

Designation :

President, Chief Financial Officer and Global Head, IT and BPE

 

 

Name :

Umang Vohra

Designation :

Executive Vice-President and Head, North America Generics

 

 

SHAREHOLDING PATTERN

 

As on 30.06.2014

 

Category of Shareholder

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

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

3688528

2.66

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

39729284

28.60

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

43417812

31.26

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

 

 

Total shareholding of Promoter and Promoter Group (A)

43417812

31.26

(B) Public Shareholding

 

 

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

 

 

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

5352715

3.85

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

205757

0.15

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

3701465

2.67

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

60112718

43.28

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

69372655

49.95

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

 

 

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

9891554

7.12

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

12253588

8.82

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

946976

0.68

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

3008163

2.17

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

349839

0.25

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

2315540

1.67

http://www.bseindia.com/include/images/clear.gifForeign Nationals

7799

0.01

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

334985

0.24

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

26100281

18.79

Total Public shareholding (B)

95472936

68.74

Total (A)+(B)

138890748

100.00

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

 

 

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

31444291

0.00

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

31444291

0.00

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

170335039

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of Bulk Drugs, Formulations and Diagnostic Reagents and Kits.

 

 

GENERAL INFORMATION

 

No. of Employees :

19000 (Approximately) (Worldwide)

 

 

Bankers :

·         Allahabad Bank, Industrial Finance Branch, Secunderabad, Andhra Pradesh, India

·         Bank of Baroda, Khairatabad Branch, Hyderabad, Andhra Pradesh, India

·         Canara Bank, Basheer Bagh, Hyderabad, Andhra Pradesh, India

·         Canara Bank, India

·         Citi Bank, Hyderabad, Andhra Pradesh, India

·         Global Trust Bank, Secunderabad, Andhra Pradesh, India

·         HDFC Bank Limited, Hyderabad, Andhra Pradesh, India

·         The Hongkong and Shanghai Banking Corporation Limited, Hyderabad, Andhra Pradesh, India

·         State Bank of Hyderabad, Overseas Branch, Hyderabad, Andhra Pradesh, India

·         State Bank of India, Industrial Finance Branch, Hyderabad, Andhra Pradesh, India

·         State Bank of Mysore, Industrial Finance Branch, Hyderabad, Andhra Pradesh, India

·         Standard Chartered, Grindlays Bank Limited, Hyderabad, Andhra Pradesh, India

·         Andhra Bank, Balanagar Branch, Hyderabad – 500016, Andhra Pradesh, India

 

 

Facilities :

SECURED LOANS

31.03.2014

Rs. In Millions

31.03.2013

Rs. In Millions

LONG TERM BORROWINGS

 

 

Long term maturities of finance lease obligations

13.000

35.000

Total

13.000

35.000

 

Notes:

 

Finance lease obligations are towards lease rentals payable for the vehicles leased by the Company. Lease rentals are paid in monthly instalment, with the last instalment due in April 2018.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

BSR and Company LLP

Chartered Accountants

Address :

Hyderabad, Andhra Pradesh, India

 

 

Subsidiaries including step down subsidiaries :

·         Aurigene Discovery Technologies (Malaysia) SDN BHD

·         Aurigene Discovery Technologies Inc., USA

·         Aurigene Discovery Technologies Limited, India

·         Beta Institut gemeinnützige GmbH, Germany

·         Betapharm Arzneimittel GmbH, Germany

·         Cheminor Investments Limited, India

·         Chienna B.V., Netherlands (from 15 February 2013)

·         Chirotech Technology Limited, UK

·         Dr. Reddy’s Bio-sciences Limited, India

·         Dr. Reddy’s Farmaceutica Do Brasil Ltda., Brazil

·         Dr. Reddy’s Laboratories (Australia) Pty. Limited, Australia

·         Dr. Reddy’s Laboratories (EU) Limited, UK

·         Dr. Reddy’s Laboratories (Proprietary) Limited, South Africa

·         Dr. Reddy’s Laboratories Inc., USA

·         Dr. Reddy’s Laboratories International SA, Switzerland

·         Dr. Reddy’s Laboratories Lousiana LLC, USA

·         Dr. Reddy’s Laboratories Romania SRL, Romania

·         Dr. Reddy’s Laboratories SA, Switzerland

·         Dr. Reddy’s New Zealand Limited, New Zealand

·         Dr. Reddy’s Pharma SEZ Limited, India

·         Dr. Reddy’s Singapore PTE Limited, Singapore (from 22 October 2013)

·         Dr. Reddy’s Srl, Italy (formerly Jet Generici Srl)

·         Dr. Reddy’s Laboratories New York, Inc., USA

·         Dr. Reddy’s Laboratories Canada Inc., Canada (from 29 August 2013)

·         Dr. Reddy’s Laboratories (UK) Limited, UK

·         Dr. Reddy’s Laboratories ILAC TICARET Limited SIRKETI, Turkey (till 04 December 2012)

·         Dr. Reddy’s Laboratories Tennessee LLC, USA

·         Dr. Reddy’s Laboratories LLC, Ukraine

·         Dr. Reddy’s Venezuela C.A., Venezuela

·         DRL Impex Limited, India

·         Eurobridge Consulting B.V., Netherlands

·         Idea2Enterprises (India) Private Limited, India

·         Industrias Quimicas Falcon de Mexico S.A. de C.V., Mexico

·         I-Ven Pharma Capital Limited, India (under liquidation)

·         Lacock Holdings Limited, Cyprus

·         OctoPlus Development B.V., Netherlands (from 15 February 2013)

·         OctoPlus N.V., Netherlands (from 15 February 2013)

·         OctoPlus PolyActive Sciences B.V., Netherlands (from 15 February 2013)

·         OctoPlus Sciences B.V., Netherlands (from 15 February 2013)

·         OctoPlus Technologies B.V., Netherlands (from 15 February 2013)

·         OctoShare B.V., Netherlands (from 15 February 2013)

·         OOO Alfa, Russia (till 16 July 2012)

·         OOO Dr. Reddy’s Laboratories Limited, Russia

·         OOO DRS LLC, Russia

·         Promius Pharma LLC, USA

·         Reddy Antilles N.V., Netherlands

·         Reddy Specialities GmbH, Germany (formerly Reddy beta GmbH)

·         Reddy Cheminor S.A., France (under liquidation)

·         Reddy Holding GmbH, Germany

·         Reddy Netherlands B.V., Netherlands

·         Reddy Pharma Iberia SA, Spain

·         Reddy Pharma Italia S.p.A, Italy

·         Reddy Pharmaceuticals Hong Kong Limited, Hong Kong (till 19 October 2012 )

·         Reddy US Therapeutics Inc., USA (till 03 July 2013 ) and

·         55. Trigenesis Therapeutics Inc., USA (till 04 December 2012)

 

 

Joint Ventures :

·         Kunshan Rotam Reddy Pharmaceutical Company Limited (“Reddy Kunshan”), China

·         Dranu LLC, USA (from 9 July 2012)

 

 

List of other related parties with whom transactions have taken place during the current and/or previous year :

·         Dr. Reddy’s Research Foundation

·         Dr. Reddy's Institute of Life Sciences

·         Ecologic Chemicals Limited

·         Stamlo Hotels Private Limited

·         Green Park Hotels and Resorts Limited

·         Pudami Educational Society

·         A. R. Life Sciences Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

240000000

Equity Shares

Rs.5/- each

Rs.1200.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

170108868

Equity Shares

Rs.5/- each

Rs.851.000 Millions

 

 

a)      Reconciliation of the equity shares outstanding is set out below:

 

Equity Shares

Number of Shares

Rs. In Millions

Number of shares outstanding at the beginning of the year

169,836,475

849.000

Add : Equity shares issued pursuant to employee stock option plan

272,393

2.000

Number of shares outstanding at the end of the year

170,108,868

851.000

 

 

b)      Terms / rights attached to the equity shares

 

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. During the year ended 31 March 2014, the amount of per share dividend recognized as distributions to equity shareholders is Rs. 18 (previous year: Rs.15). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

 

c)       Details of equity shares held by shareholders holding more than 5% shares:

 

Name of Shareholder

Number of Shares

% holding

Dr. Reddy’s Holdings Limited

39,729,284

23.35

First state investments management (UK) Limited, First state investments International Limited and their associates

14,056,799

8.26

 

 

d)       651,674 (previous year: 695,259) stock options are outstanding to be issued by the Company on exercise of the vested stock options in accordance with the terms of exercise under the “Dr. Reddy’s Employees Stock Option Plan, 2002” and 97463 (previous year: 98,608) stock options are outstanding to be issued by the Company on exercise of the vested stock options in accordance with the terms of exercise under the “Dr. Reddy’s Employees ADR Stock Option Plan 2007”.

 

e)       Represents 200 (previous year: 200) equity shares of Rs. 5/- each, amount paid-up Rs. 500/- (rounded off in millions in the note above) forfeited due to non-payment of allotment money.

 

 

 

 

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

851.000

849.000

848.000

(b) Reserves & Surplus

92439.000

76985.000

66330.000

(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)

93290.000

77834.000

67178.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

9015.000

63.000

5130.000

(b) Deferred tax liabilities (Net)

1252.000

937.000

200.000

(c) Other long term liabilities

47.000

28.000

63.000

(d) long-term provisions

335.000

298.000

212.000

Total Non-current Liabilities (3)

10649.000

1326.000

5605.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

17630.000

15828.000

10204.000

(b) Trade payables

8423.000

7678.000

7334.000

(c) Other current liabilities

10294.000

13011.000

9844.000

(d) Short-term provisions

4795.000

4214.000

3241.000

Total Current Liabilities (4)

41142.000

40731.000

30623.000

 

 

 

 

TOTAL

145081.000

119891.000

103406.000

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

26937.000

23355.000

18967.000

(ii) Intangible Assets

546.000

515.000

1.000

(iii) Capital work-in-progress

5761.000

4232.000

6176.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

17401.000

21826.000

22707.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

5358.000

3752.000

6318.000

(e) Other Non-current assets

0.000

209.000

0.000

Total Non-Current Assets

56003.000

53889.000

54169.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

10664.000

1966.000

2070.000

(b) Inventories

15921.000

15265.000

13267.000

(c) Trade receivables

45615.000

29639.000

19435.000

(d) Cash and cash equivalents

6651.000

9191.000

8490.000

(e) Short-term loans and advances

8287.000

8634.000

5298.000

(f) Other current assets

1940.000

1307.000

677.000

Total Current Assets

89078.000

66002.000

49237.000

 

 

 

 

TOTAL

145081.000

119891.000

103406.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

97280.000

84340.000

67397.000

 

 

Other Income

1515.000

1417.000

818.000

 

 

TOTAL                                     (A)

98795.000

85757.000

68215.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

21918.000

22773.000

17386.000

 

 

Purchases of Stock-in-Trade

4690.000

3931.000

3076.000

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(1706.000)

(1006.000)

(1048.000)

 

 

Conversion Charges

785.000

592.000

505.000

 

 

Excise duty

562.000

636.000

534.000

 

 

Employees benefits expense

11849.000

11381.000

8661.000

 

 

Other expenses

21583.000

19667.000

15124.000

 

 

Research and Development Expenses

9982.000

6509.000

5813.000

 

 

Provision for other than temporary diminution in the value of long-term investments

 0.000

 0.000

1925.000

 

 

TOTAL                                     (B)

69663.000

64483.000

51976.000

 

 

 

 

 

Less

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

29132.000

21274.000

16239.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

783.000

614.000

636.000

 

 

 

 

 

 

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

28349.000

20660.000

15603.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

3805.000

3128.000

3011.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

24544.000

17532.000

12592.000

 

 

 

 

 

Less

TAX                                                                  (H)

5216.000

4877.000

3468.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

19328.000

12655.000

9124.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

43614.000

36049.000

31397.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed dividend on equity shares

3062.000

2548.000

2331.000

 

 

Tax on proposed dividend

520.000

433.000

378.000

 

 

Credit of dividend distribution tax

(2.000)

(4.000)

0.000

 

 

Dividend of previous years (including tax)

3.000

3.000

3.000

 

 

Debenture Redemption Reserve

827.000

845.000

848.000

 

 

Transfer to General Reserve

1933.000

1265.000

912.000

 

BALANCE CARRIED TO THE B/S

56599.000

43614.000

36049.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

74059.000

61004.000

48405.000

 

 

Interest on loan to subsidiaries

90.000

181.000

249.000

 

 

Service income and license fees

1495.000

1684.000

581.000

 

 

Royalty income

0.000

0.000

53.000

 

 

Guarantee commission

176.000

177.000

79.000

 

 

Litigation settlement

162.000

1220.000

0.000

 

 

Others

25.000

24.000

0.000

 

TOTAL EARNINGS

76007.000

64290.000

49367.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

11031.000

8837.000

6914.000

 

 

Capital equipment (including spares and components)

1931.000

2650.000

2285.000

 

TOTAL IMPORTS

12962.000

11487.000

9199.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

113.67

74.54

53.83

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

19.56

14.76

13.38

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

25.23

20.79

18.68

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

20.13

18.68

16.90

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.26

0.23

0.19

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.29

0.20

0.23

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.17

1.62

1.61

 

 

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

848.000

849.000

851.000

Reserves & Surplus

66330.000

76985.000

92439.000

Net worth

67178.000

77834.000

93290.000

 

 

 

 

long-term borrowings

5130.000

63.000

9015.000

Short term borrowings

10204.000

15828.000

17630.000

Total borrowings

15334.000

15891.000

26645.000

Debt/Equity ratio

0.228

0.204

0.286

 

 

 

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

67397.000

84340.000

97280.000

 

 

25.139

15.343

 

 

 

 

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

67397.000

84340.000

97280.000

Profit

9124.000

12655.000

19328.000

 

13.54%

15.00%

19.87%

 

 

 

 

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

--

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

Yes

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

 

 

UNSECURED LOAN:

 

Particulars

31.03.2014

Rs. In Millions

31.03.2014

Rs. In Millions

LONG TERM BORROWINGS

 

 

Sales tax deferment loan from the Government of Andhra Pradesh (interest free)

15.000

28.000

Long term loans from banks

8987.000

0.000

SHORT TERM BORROWINGS

 

 

Packing credit loans

17630.000

15786.000

Bank overdraft

0.000

42.000

Total

26632.000

15856.000

 

Notes:

 

·         Sales tax deferment loan is repayable in 8 instalments, with the last instalment due on 31 March 2019.

 

·         External Commercial Borrowings of USD 150 million carrying interest rate of LIBOR plus 179 bps and is repayable in five equal quarterly instalments ending in February 2019. As part of the arrangement, the Company is required to comply with certain financial covenants and the Company was in compliance with such covenants as of 31 March 2014.

 

·         Packing credit loans for the current year comprised of USD and EUR denominated loans carrying interest rates of LIBOR plus 20 - 85 bps, RUB denominated loans carrying interest rate of Moscow Prime Offered Rate plus 60 bps, RUB denominated loans carrying fixed interest rate of 7.20% - 7.75% per annum and INR denominated loans carrying fixed interest rate of 9.50% - 10%, and are repayable within 1 to 6 months from the date of drawdown. Packing Credit loans for the previous year comprised of USD and EUR denominated loans carrying interest rates of LIBOR plus 50 - 125 bps and RUB denominated loans carrying fixed interest rate of 7.25% - 8.00% per annum and are repayable within 1 to 6 months from the date of drawdown.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

GLOBAL GENERICS (GG)

 

Revenue from Global Generics for FY2014 increased by 27.4% and stood at Rs.105.2 billion — driven largely by North America and the emerging markets.

 

Revenue from North America for FY2014 was Rs.55.3 billion, recording a year-on-year growth of 46.1%. Growth was largely driven by key complex to make’ products launched during the year. Nine new products were launched during the year the major ones being decitabine, azacitadine, zolendronic acid (5 mg/100 mL), divalproex ER and donepezil 23 mg. There was also a significant increase in the market share of key existing products such as metoprolol succinate and atorvastatin. FY2014 also saw 13 product fi lings in the USA. Cumulatively, 62 Abbreviated New Drug Applications (ANDAs) are pending for approval from the US Food and Drug Administration (USFDA). Of these, 39 are Para IVs — out of which they believe nine to have ‘First to File’ status.

 

 

Revenue from Emerging Markets for FY2014 was Rs.27.2 billion registering a year-on-year growth of 21.1%. Within Emerging Markets:

 

Revenue from Russia and other CIS markets was Rs.19.8 billion recording a growth of 17.2%.

 

Revenue from the Rest of World (RoW) territories was Rs.7.4 billion growing at 33%.

 

 

Revenue from India for FY2014 was Rs.15.7 billion achieving a growth of 7.9%.

 

 

PHARMACEUTICAL SERVICES AND ACTIVE INGREDIENTS (PSAI)

 

Compared to the previous year, revenue from PSAI in FY2014 declined by 21.9% to Rs.24 billion. This was on account of decreased sales of Active Pharmaceutical Ingredients (APIs) as some of our key customers lost market shares during the year, coupled with lower sales from “launch molecules” vis-ŕ-vis the previous year.

 

During the year, 61 DMFs were fi led globally, including 12 in the US and 13 in Europe. The cumulative number of DMF fi lings as of 31 March 2014 is 631.

 

 

OUTLOOK FOR THE GLOBAL PHARMACEUTICAL INDUSTRY

 

The global pharmaceutical market is expected to reach US$ 1.2 trillion in 2017, up from US$ 0.96 trillion in 2012, growing at the compound annual growth rate (CAGR) of 4.5% over the five-year period.1

 

Developed markets2 will account for more than half of the business even in 2017, or approximately US$ 668 billion in value.

 

Simultaneously, with a higher CAGR of around 11.6%, the pharmerging markets3 will significantly increase their share from 23% of the market in 2012 to 32% in 2017.

 

Another way to look at the growth of the global pharmaceutical market is the mix between branded and generic drugs. Here are the estimates the IIHI provides:

 

The market for branded drugs is expected to grow modestly to reach US$ 620 billion in 2017.

 

The generic drugs market is expected to grow at a CAGR of 10.5%, from around US$ 260 billion in 2012 to about US$ 430 billion in 2017.

 

Generic medicines will meet a significant part of increasing global demand, rising from a market share of 27% in 2012 to 36% in 2017.

 

The share of generics is expected to rise everywhere: (i) in developed markets from 16% in 2012 to 21% in 2017; (ii) in pharmerging markets from 58% to 63%; and (iii) in the rest of the world from 27% to 31%.

 

 

OUTLOOK

 

The Company believes that its focus on profitable growth and targeting a leadership position in GG and PSAI will create significant value in the near term. In GG, improving depth through portfolio expansion, cost leadership, consistent delivery of limited competition products and supply chain excellence should lead to a leadership position in key markets. In PSAI, the objective is to be the partner of choice by creating compelling value for customers through leveraging IP, technology and cost leadership. In Proprietary Products, the aim is to create a viable business by calibrating investments to produce a self sustainable model.

 

The Company has a positive outlook for the next year. The largest increment of growth is expected to be contributed by the North America Generics and the Emerging Markets businesses.

 

In a dynamic business environment, the Company’s base business model in pharmaceuticals is exposed to considerable volatility, both upwards and downwards. While the upsides create non-linear value for the organization, there is a conscious attempt to protect it against the downsides.

 

 

PHARMACEUTICAL SERVICES AND ACTIVE INGREDIENTS (PSAI)

 

FY2014 was a challenging year for the PSAI business with revenues declining by 22% compared to FY2013. Decreased sales of Active Pharmaceutical Ingredients was primarily due to some of their key customers losing market shares during the year, coupled with lower sales from ‘launch molecules’ vis-ŕ-vis the previous year. The pharmaceutical services business also saw a slowdown in the demand for custom services from some of their innovator company customers. However, being vertically integrated, the API business continues to support their Global Generic launches.

 

Asia Pacific is fast becoming a dominant player in the global API business, both in terms of supply and demand. Countries such as India and China have become global hubs for API outsourcing, primarily due to their low cost of production and strong domestic demand. However, the industry is also facing some challenges, with newer market entrants increasing competition and eroding API prices. Mergers, collaborations, high levels of cost competency and optimal inventory management are strategies that have been noticed across the API industry in order to survive and grow.

 

Dr. Reddy’s is one of the highest Drug Master File (DMF) filers worldwide. During FY2014, they filed 61 DMFs globally, including 12 in the US, 13 in Europe and 36 in other markets. The cumulative number of DMF fi lings as on 31 March 2014 was 631.

 

 

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30ST JUNE 2014

Rs. In millions

Sr.

No.

Particular

Quarter Ended

 

 

30.06.2014

(Unaudited)

1.

Net Sales/Income from Operations

26528.400

 

License fees and service income

155.600

 

Other operating income

220.800

 

Total income from operations (net)

26904.800

 

 

 

2.

Expenditure

 

 

a) Cost of materials consumed

5842.500

 

b) Purchases of stock-in-trade

1026.900

 

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

86.600

 

d) Employee benefits expense

3641.700

 

e) Selling Expenses

3032.800

 

f) Depreciation and amortisation expense

1054.800

 

g) Provision for decline in the value of long-term investments

0.000

 

h) Other expenses

5170.500

 

h) Total

19855.800

3.

Profit From Operations before Other Income, Interest and Exceptional Items (1-2)

7049.000

4.

Other Income

918.800

5.

Profit Before Interest and Exceptional Items (3+4)

7967.800

6.

Finance costs

151.000

7.

Profit After Interest but before Exceptional Items (5-6)

7816.800

8.

Exceptional Items

0.000

9.

Profit from Ordinary Activities before Tax (7+8)

7816.800

10.

Tax Expense

1789.300

11.

Net Profit from Ordinary Activities after Tax (9-10)

6027.500

12.

Extraordinary Item (net of expense)

0.000

13.

Net Profit for the period (11-12)

6027.500

14.

Paid-up Equity Share Capital (Face Value of Rs.10/- Each)

851.700

15.

Reserves Excluding Revaluation Reserve

 

16.

Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualised

 

 

a) Basic

35.42

 

b) Diluted

35.26

 

 

 

17.

Public Shareholding

 

 

-Number of Shares

95472936

 

- Percentage of Shareholding

56.05

18.

Promoters and Promoter Group Shareholding

 

 

a) Pledged/Encumbered

 

 

- Number of Shares

--

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

--

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

--

 

 

 

 

b) Non Encumbered

 

 

- Number of Shares

43417812

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

100.00

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

25.49

 

Particulars

30.06.2014

Investment Complaints

 

Pending at the beginning of the quarter

Nil

Received during the quarter

Nil

Disposed of during the quarter

Nil

Remaining unresolved at the end of the quarter

Nil

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 (Rs. in millions)

Sl.

No.

Particulars

 

30.06.2014

(Unaudited)

1

Segment Revenue

 

 

 

 

 

 a) Pharmaceutical Services and Active Ingredients 

7051.100

 

 b) Global Generics

21661.500

 

 c) Proprietary Products

0.000

 

Total

28712.600

 

 Less: Inter segment revenue 

1807.800

 

 Add : Other unallocable Income

0.000

 

Total income

26904.800

2

Segment Results

 

 

 a) Pharmaceutical Services and Active Ingredients 

224.200

 

 b) Global Generics

8877.300

 

 c) Proprietary Products

(756.700)

 

Total

8344.800

 

Less :Interest

151.000

 

Less : Other Unallocable Expenses, net

377.000

 

Total profit before tax

7816.800

3

Capital Employed

 

 

 a) Pharmaceutical Services and Active Ingredients 

27180.600

 

 b) Global Generics

61506.900

 

 c) Proprietary Products

(408.300)

 

 d) Unallocated 

11104.400

 

Total

99383.600

 

Note:

 

a)       The above financial results are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair value. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006 which continue to apply under section 133 of the Companies Act 2013; guidelines issued by Securities and Exchange Board of India; and other accounting principles generally accepted in India.

 

b)       The unaudited results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors of the Company at their meeting held on 30 July 2014.

 

c)       The results for the quarter ended 30 June 2014 have been subjected to a “Limited review” by the Statutory Auditors of the Company. An unqualified report has been issued by them thereon.

 

d)       The figures for the previous periods have been re-grouped/ re-classified, wherever necessary, to conform to the current period classification.

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

90258811

05/08/2002

12,000,000.00

State Bank Of India

Industrail Finance Branch, Somajiguda, Hyderabad, 
Andhra Pradesh, India

-

2

90258687

23/02/2001

150,000,000.00

State Bank Of Hyderabad

Overseas Branch, Somajiguda, Hyderabad, Andhra Pradesh, India

-

3

90258523

20/10/1999 *

1,710,000,000.00

CANARA BANK

Bashirbagh, Hyderabad, Andhra Pradesh - 500029, India

-

4

90134184

31/12/1998 *

1,000,000.00

ICICI Limited

L.B. Bhavan, 6-3-550; Somajiguda, Hyderabad, Andhra Pradesh - 500082, India

-

5

90258324

17/08/1997

26,000,000.00

BANK OF BARODA

Khairtabad Branch, Hyderabad, Andhra Pradesh, India

-

6

90132444

19/06/1997

150,000,000.00

ICICI Bank Limited

163; Backbay Reclamation, Bombay, Maharashtra - 400020, India

-

7

90258244

15/12/2000 *

1,000,000.00

The Hong Kong And Shanghai Banking Corp. Limited 

Bahrain Offshore Banking Unit, Manama, Manama, Bahrain

-

8

90132335

12/11/1996 *

100,000,000.00

ICICI Bank Limited

163; backbay reclamation, bombay, maharashtra - 400020, india

-

9

90132312

28/08/1996 *

40,000,000.00

SCICI Limited

4 Nagarjuna Hills, Punjagutta, Hyderabad, Andhra Pradesh - 500482, India

-

10

90132308

13/08/1996 *

50,000,000.00

ICICI Bank Limited

163; Backbay Reclamation, Bombay, Maharashtra - 400020, India

-

 

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Plant and machinery

·         Electrical equipment

·         Laboratory equipment

·         Furniture and fixtures

·         Office equipment

·         Vehicles

·         Customer contracts

·         Technical know how

·         Non-compete fees

·         Copyrights and patents

 

 

PRESS RELEASE

 

DR REDDY'S LABS LAUNCHES GENERIC VERSION OF CYMBALTA

 

June 27, 2014

 

Drug maker Dr Reddy's Laboratories has launched duloxetine delayed-release capsules USP 20 mg, 30 mg and 60 mg in the US market, the company said today.

 

According to IMS health, Cymbalata (duloxetine delayed-release capsules) brand and generic had US sales of USD 5.04billion for the most recent 12 months ending April 2014, Dr Reddy's said in the statement.

 

The US FDA in December last year approved the first generic versions of Cymbalta (duloxetine delayed-release capsules), for Aurobindo Pharma Limited, Dr Reddy's Laboratories Limited, Lupin Limited, Sun Pharma Global FZE, Teva Pharmaceuticals USA and Torrent Pharmaceuticals Limited to market the drug in various strengths.

 

Cymbalta (duloxetine) is used to treat major depressive disorder, general anxiety disorder and fibromyalgia.

 

Common adverse reactions reported by people taking Cymbalta include nausea, dry mouth, drowsiness, fatigue, decreased appetite, increased sweating, and dizziness, FDA had said in the website earlier. Generic prescription drugs approved by the FDA have the same high quality and strength as brand-name drugs. Generic prescription drug manufacturing and packaging sites must pass the same quality standards as those of brand-name drugs, it had said.

 

 

DR REDDY'S LAUNCHES SKIN DISORDER LOTION IN INDIA

 

June 12, 2014

 

Drug firm Dr Reddy's Laboratories today launched Melgain lotion used for treatment of vitiligo, a skin disorder in India under a partnership with Issar Pharmaceuticals Pvt Limited.

 

The lotion will benefit patients of the skin pigmentation disorder in India, Dr Reddy's said in a statement. "Melgain lotion is safe and efficacious in vitiligo cases involving various areas of the body, as established by a number of clinical studies. Its safety is well established for treating children as well," it added.

 

It leads to re-pigmentation in 80 percent to 90 percent of patients, as compared to 60 percent of patients who respond to other medical treatments such as corticosteroids and phototherapy, Dr Reddy's said.

 

 "Vitiligo is a skin disease that leads to white patches on the body due to the loss of normal skin pigment called melanin. It is a very common disease that affects all races, and is estimated to affect about 5 crore people in India," it added.

 

Melgain lotion's unique mechanism of action enhances re-pigmentation when used in combination with other therapies, Dr Reddy's said.

 

Shares of Dr Reddy's Laboratories today closed at Rs 2,434 apiece on BSE, up 0.08 percent from previous close.

 

 

DR REDDY INITIATES VOLUNTARY RECALL OF DRUG FROM US MARKET

 

June 19, 2014

 

Drug maker Dr Reddy's Laboratories has initiated voluntary recall of Metoprolol Succinate Extended Release Tablets, USP 25 mg. 100-count bottles from US market following failure of dissolution test, USFDA said.

 

According to a notification by the FDA, the recall of the 13,560 bottles has been voluntarily initiated by the company through a letter to the regulator last month under 'Class-II' classification. Metoprolol is used alone or in combination with other medications to treat high blood pressure.

 

It also is used to prevent angina (chest pain) and to improve survival after a heart attack. The regulator's website cited "Failed Dissolution Specifications: failure of dissolution test observed at 18 month time point," as the reason for recall. Tablet Dissolution is a standardised method for measuring the rate of drug release from a dosage form.

 

 

DR REDDY'S RECALLS OVER 13,000 BOTTLES OF HYPERTENSION DRUG

 

June 19, 2014

 

Dr Reddy's Laboratories is recalling 13,560 bottles of the high blood pressure drug metoprolol succinate in the United States after it failed a dissolution test, the US Food and Drug Administration said. Metoprolol succinate extended release is a cheaper generic form of AstraZeneca Plc's Toprol XL. Wockhardt Limited also recalled 109,744 bottles of the same drug last month citing the same reason.

 

The recall was voluntarily started by Dr Reddy's on May 23, 2014, and posted on the FDA website on Thursday.

 

A Dr Reddy's spokesman did not immediately respond to a request for comment on the recall. Dissolution tests are commonly conducted to check the time taken for the active ingredient in a drug to release into the body, and help predict how the drug performs inside the body.

 

The Dr Reddy's recall, like the one by Wockhardt, was classified by the FDA as Class II, which means use of or exposure to the recalled products may cause temporary or medically reversible adverse health consequences.

 

This is the latest in a string of drug recalls and manufacturing quality-related issues involving Indian companies that have hurt the reputation of the industry as a supplier of cheap generic drugs, and led to increased scrutiny from regulators.

 

Dr Reddy's recalled about 58,656 bottles of the heartburn drug lansoprazole in the United States in March due to a microbial contamination.

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 Financial Crime :   

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.43

UK Pound

1

Rs.99.72

Euro

1

Rs.77.93

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

9

--RESERVES

1~10

8

--CREDIT LINES

1~10

9

--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

 

79

 

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

 

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.