MIRA INFORM REPORT
|
Report No. : |
353441 |
|
Report Date : |
05.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
NATCO PHARMA LIMITED |
|
|
|
|
Registered
Office : |
Natco House, Road No.2, Banjara Hills, Hyderabad – 500033, Telangana |
|
Tel. No.: |
91-40-23547532 |
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|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
19.09.1981 |
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|
|
|
Com. Reg. No.: |
003201 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 332.348 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24230TG1981PLC003201 |
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|
|
|
IEC No.: |
0988004542 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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|
|
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PAN No.: [Permanent Account No.] |
AAACN6927A |
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|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturing of Active Pharmaceuticals Ingredients and
Finished Dosage Formulations. (Registered Documents) |
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|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 25114000 |
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|
|
|
Status : |
Good |
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|
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established and reputed company having fine track. For the financial year ended 2015, the company has strong operational activity
marked by decent sales turnover along with excellent profitability margin of
21.37%. The company has sound financial base backed by adequate net worth
position. It has good gap between trade payable and receivables. Trade relations are reported as fair. Business is active. Payments are
regular and as per commitment. The company can be considered for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term Fund Based Limits=AA- |
|
Rating Explanation |
High degree of safety and very low credit
risk |
|
Date |
January, 2015 |
|
|
|
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Non Fund Based Limits=A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk |
|
Date |
January, 2015 |
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
31-03-2015.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(Contact No: 91-40-23547533)
LOCATIONS
|
Registered/ Correspondence Office : |
Natco House, Road No.2, Banjara Hills, Hyderabad – 500033, Telangana,
India |
|
Tel. No.: |
91-40-23547532 |
|
Fax No.: |
91-40-23548243/ 23545298 |
|
E-Mail : |
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|
Website : |
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Factory 1 : |
Pharma Division Kothur Post, Kothur Mandal, Mahaboobnagar District - 509228,
Telangana, India |
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|
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Factory 2 : |
Pharma Division-
Parenterals Vijayapuri North, Nagarjuna Sagar, Nalgonda District – 508202,
Telangana, India |
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|
|
|
Factory 3 : |
Chemical
Division Mekaguda, Kothur Mandal, Mahaboobnagar District – 509228, Telangana,
India |
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Factory 4 : |
R and D Division B – 11, Industrial Estate, Sanathnagar, Hyderabad – 500018, Telangana,
India |
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Factory 5 : |
Formulations
Division Plot No.19, |
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Factory 6 : |
Formulations
Division Plot No.A3, UPSIDC, Selaqui Industrial area, Dehradun – 248001, |
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Factory 7 : |
Natco Organics
Limited No.74/B, |
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|
|
|
Factory 8 : |
Pharma Division DAG
No. – 749, 750, Kokjhar Village, Revenue Circle – Mirza, Kamrup (Rural) Guwahati
District-781122, Assam, India |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. V C Nannapaneni |
|
Designation : |
Chairman and Managing
Director |
|
Date of Birth/Age : |
69 Years |
|
Qualification : |
MS
(Pharmaceutical Administration) |
|
Experience : |
46 Years |
|
|
|
|
Name : |
Mr. T V Rao |
|
Designation : |
Director - Independent |
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|
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|
Name : |
Mr. G S Murthy |
|
Designation : |
Director - Independent |
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|
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|
Name : |
Dr B S Bajaj |
|
Designation : |
Director - Independent |
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|
|
|
Name : |
Mr. Rajeev Nannapaneni |
|
Designation : |
Vice Chairman and Chief
Executive Officer |
|
Date of Birth/Age : |
38 Years |
|
Qualification : |
BA in Quantitative
Economics and BA in History TUFTS University, USA |
|
Experience : |
16 Years |
|
|
|
|
Name : |
Dr A K S Bhujanga Rao |
|
Designation : |
Director and President
(Rand D and Tech.) |
|
Date of Birth/Age : |
62 Years |
|
Qualification : |
Ph. D |
|
Experience : |
33 Years |
|
|
|
|
Name : |
Mr. D G Prasad |
|
Designation : |
Director - Independent |
|
|
|
|
Name : |
Mr. Vivek Chhachhi |
|
Designation : |
Director - Non-Executive
and Non-Independent |
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|
|
|
Name : |
Mr. Tarun Khanna |
|
Designation : |
Alternative Director to
Shri Vivek Chhachhi |
|
|
|
|
Name : |
Dr. Mrs. Leela Digumarti |
|
Designation : |
Director - Independent |
|
|
|
|
Name : |
Mr. P S R K Prasad |
|
Designation : |
Director and Executive
Vice President (Corp. Engg. Services) |
|
Date of Birth/Age : |
57 Years |
|
Qualification : |
B. Tech |
|
Experience : |
32 Years |
|
|
|
|
Name : |
Dr. M U R Naidu |
|
Designation : |
Director – Independent |
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|
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|
Name : |
Dr. D Linga Rao |
|
Designation : |
Director and President
(Tech. Affairs) |
|
Date of Birth/Age : |
59 Years |
|
Qualification : |
Ph. D |
|
Experience : |
40 Years |
KEY EXECUTIVES
|
Name : |
Mr. CS M Adinarayana |
|
Designation : |
Company Secretary and Vice President (Legal and Corporate Affairs) |
|
|
|
|
Name : |
Mr. S V V N Appa Rao |
|
Designation : |
Interim Chief Financial
Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
9961262 |
28.60 |
|
|
7416894 |
21.29 |
|
|
17378156 |
49.89 |
|
|
|
|
|
|
487708 |
1.40 |
|
|
487708 |
1.40 |
|
Total shareholding of Promoter and Promoter
Group (A) |
17865864 |
51.29 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2033496 |
5.84 |
|
|
20280 |
0.06 |
|
|
3777867 |
10.85 |
|
|
5831643 |
16.74 |
|
|
|
|
|
|
909948 |
2.61 |
|
|
|
|
|
|
3585334 |
10.29 |
|
|
2922754 |
8.39 |
|
|
3719306 |
10.68 |
|
|
216559 |
0.62 |
|
|
26613 |
0.08 |
|
|
63660 |
0.18 |
|
|
3412474 |
9.80 |
|
|
11137342 |
31.97 |
|
Total Public shareholding (B) |
16968985 |
48.71 |
|
Total (A)+(B) |
34834849 |
100.00 |
|
(C) Shares held by Custodians and against which
Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
34834849 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Active Pharmaceuticals Ingredients and
Finished Dosage Formulations. (Registered Documents) |
|
|
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|
Products : |
-- |
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|
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|
Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
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Terms : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
Not Divulged |
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Bankers : |
· Citi Bank N.A. Mid Market Enterprise, 1st Floor, Queens Plaza, S.P. Road, Hyderabad-
500003, Telangana, India · ICICI Bank Limited Landmarkrace Cource Circle, Alkapuri, Baroda- 390015, Gujarat, India · Allahabad Bank Industrial Finance Branch, 6-3-850/3, 1st Floor, · Axis Bank Limited Corporate Banking Branch, 6-3-879/B, 1st Floor, G · State Bank of Hyderabad Sanathnagar Branch, Hyderabad, Andhra Pradesh, India |
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Facilities : |
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Banking
Relations : |
-- |
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Statutory
Auditors
: |
|
|
Name : |
Walker Chandiok and
Company LLP Chartered Accountants |
|
Address : |
7th
Floor, Block III, White House Kundan Bagh, Begumpet, Hyderabad- 500016,
Telangana, India |
|
Tel. No.: |
91-40-66308200 |
|
Fax No.: |
91-40-66308230 |
|
|
|
|
Internal
Auditors : |
|
|
Name : |
Seshachalam and Company Chartered Accountants |
|
Address : |
1-11-256,
Street No. 1, Wall Street Plaza, 6th Floor, ICICI Building, Begumpet,
Hyderabad – 500016, Telangana, India |
|
|
|
|
Cost
Auditors : |
|
|
Name : |
S.S. Zanwar and
Associates Cost Accountants |
|
Address : |
Flat
No 205, 3rd Floor, Reliance Krishna Apartment, Hill fort, Hyderabad-500004,
Telangana, India |
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
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|
|
|
Subsidiary
Company : |
·
Natco
Pharma Inc., United States of America ·
Timecap Overseas
Limited., Mauritius ·
Natco
Pharma (Canada) Inc., Canada ·
Natco
Pharma Asia PTE Ltd., Singapore ·
Natco
Pharma Australia PTY., Australia · Natco Organics Limited |
|
|
|
|
Step-down
Subsidiary Company : |
Natco Farma Do Brazil
Ltda EPP., Brazil |
|
|
|
|
Entities in which
Directors have control or have significant influence : |
·
Time Cap
Pharma Labs Limited ·
Natco
Trust ·
Natco
Group Employees Welfare Trust · Natsoft Information Systems Private Limited |
CAPITAL STRUCTURE
AFTER 27.09.2014
Authorised Capital : Rs. 400.000 Million
Issued, Subscribed & Paid-up Capital : Rs. 348.348
Million
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs. 10/- each |
Rs. 400.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33234849 |
Equity Shares |
Rs. 10/- each |
Rs. 332.348
Million |
|
|
|
|
|
a)
Reconciliation of shares
|
Particulars |
31.03.2015 |
|
|
(No. of Shares) |
(Rs. In Million) |
|
|
Balance
at the beginning of the year |
33073074 |
33.073 |
|
Add:
issued during the year |
161775 |
0.162 |
|
Balance
at the end of the year |
33234849 |
33.235 |
b) Terms and rights attached to equity shares
The
Company has only one class of equity shares having a par value of Rs.10 per
share. Each holder of equity shares is entitled to one vote per share. The
dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing general meeting.
In
the event of liquidation of the Company, the holders of equity shares will be
entitled to receive the remaining assets of the Company, after distribution of
all preferential amounts in proportion of their shareholding.
c) Shareholders holding more than five
percent shares in the Company
|
Particulars |
No. of Shares |
Percentage |
|
V
C Nannapaneni * |
81,47,363 |
24.51% |
|
Time
Cap Pharma Labs Limited |
34,31,444 |
10.32% |
|
Natsoft
Information Systems Private Limited |
31,53,500 |
9.49% |
*
including shares held in the capacity of Karta of HUF aggregating to 1,088,009
(31 March 2014:1,088,009)
** shareholding of the investor as at 31
March 2015 is less than 5% and hence no disclosure is given.
d) Employee stock option scheme (“ESOP”)
(i)
The Company had instituted NATCO Stock Option Plan 2010 (“ESOP 2010”) as per
the special resolution passed in the annual general meeting of the members held
on 30 September 2010. The Scheme was formulated in accordance with the
Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 (“SEBI ESOP Guidelines”)
issued by the Securities and Exchange Board of India (“SEBI”) and pursuant to
the provisions of Section 81(1A) and other applicable provisions of the
Companies Act, 1956. Pursuant to such approval, the Board is authorized to
issue employee stock options, that are exercisable into not more than 600,000
equity shares of the Company to eligible employees based on specific
recommendations of the remuneration committee. Each option comprises of one
underlying equity share of `10 each. 236,551 options were granted during August 2011 at an
exercise price of Rs.10 each and were accounted at an intrinsic value of Rs.
252.55 per share, being the difference between the market value, calculated in
accordance with the valuation methods prescribed by the SEBI and the grant
price and accounted as stock option compensation over the vesting period of
twelve months from the date of the grant.
(ii)
During the year ended 31 March 2015, the Company has not granted any options to
the employees and no options were pending for vesting / exercise as at 31 March
2015.
(e) Details of shares issued pursuant to contract without payment being
received in cash and brought back during the last 5 years, immediately
preceding the balance sheet date:
|
Particulars |
No. of Shares 1 April 2010 to 31 March 2015 |
|
Aggregate
number of equity shares allotted * |
3,86,897 |
|
|
|
*
Equity shares allotted pursuant to contracts without payment being received in
cash comprise of:
(i)
During the year ended 31 March 2015, the Company has issued 161,775 equity
shares of Rs.10 each, fully paid-up at a premium of Rs.1,190 per equity share to
the erstwhile shareholders of Natco Organics Limited (‘NOL’) in exchange of
19,310,000 equity shares of Rs.10 each at face value held in NOL.
(ii)
Balance equity shares comprising of 225,122 (31 March 2014: 332,247) were
allotted during the period of five years, on exercise of the options granted
under the employee stock option plan (ESOP) wherein part consideration was
received in form of employee services.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
332.348 |
330.731 |
313.731 |
|
(b) Reserves & Surplus |
8457.572 |
6998.261 |
5062.059 |
|
(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) |
8789.920 |
7328.992 |
5375.790 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
962.821 |
949.691 |
1371.236 |
|
(b) Deferred tax liabilities (Net) |
112.905 |
423.271 |
411.199 |
|
(c)
Other long term liabilities |
7.710 |
6.910 |
6.910 |
|
(d)
long-term provisions |
91.886 |
106.292 |
82.122 |
|
Total
Non-current Liabilities (3) |
1175.322 |
1486.164 |
1871.467 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1685.436 |
986.312 |
1477.435 |
|
(b)
Trade payables |
1153.394 |
991.810 |
963.763 |
|
(c)
Other current liabilities |
1133.188 |
964.818 |
882.994 |
|
(d)
Short-term provisions |
11.106 |
4.137 |
3.306 |
|
Total
Current Liabilities (4) |
3983.124 |
2947.077 |
3327.498 |
|
|
|
|
|
|
TOTAL |
13948.366 |
11762.233 |
10574.755 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
5680.249 |
5231.904 |
4656.460 |
|
(ii)
Intangible Assets |
47.102 |
57.895 |
49.109 |
|
(iii)
Capital work-in-progress |
1007.737 |
929.369 |
783.678 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
1311.497 |
885.811 |
767.592 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
1424.736 |
1251.611 |
1206.628 |
|
(e)
Other Non-current assets |
35.207 |
32.168 |
26.079 |
|
Total
Non-Current Assets |
9506.528 |
8388.758 |
7489.546 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
1.183 |
3.180 |
8.122 |
|
(b)
Inventories |
1983.468 |
1619.656 |
1283.199 |
|
(c)
Trade receivables |
1889.575 |
1158.467 |
1264.635 |
|
(d)
Cash and cash equivalents |
71.882 |
76.960 |
75.003 |
|
(e)
Short-term loans and advances |
476.623 |
489.990 |
426.885 |
|
(f)
Other current assets |
19.107 |
25.222 |
27.365 |
|
Total
Current Assets |
4441.838 |
3373.475 |
3085.209 |
|
|
|
|
|
|
TOTAL |
13948.366 |
11762.233 |
10574.755 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7155.506 |
6223.422 |
5578.525 |
|
|
|
Other Income |
135.666 |
157.051 |
119.399 |
|
|
|
TOTAL |
7291.172 |
6380.473 |
5697.924 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1785.811 |
1666.988 |
1806.273 |
|
|
|
Purchases of Stock-in-Trade |
8.751 |
0.000 |
55.816 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(87.597) |
(159.662) |
(212.489) |
|
|
|
Employees benefits expense |
1161.889 |
942.231 |
853.621 |
|
|
|
Other expenses |
2000.996 |
1908.006 |
1506.004 |
|
|
|
TOTAL |
4869.850 |
4357.563 |
4009.225 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
2421.322 |
2022.910 |
1688.699 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
301.319 |
340.555 |
251.193 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
2120.003 |
1682.355 |
1437.506 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
424.639 |
267.860 |
198.415 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEM |
151.275 |
0.000 |
115.841 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
1544.089 |
1414.495 |
1123.250 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
14.834 |
312.572 |
341.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
1529.255 |
1101.923 |
781.434 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on F.O.B. basis |
2866.258 |
2907.799 |
2817.396 |
|
|
|
Sale of services |
85.397 |
225.577 |
145.680 |
|
|
|
Technology
income |
0.000 |
0.000 |
112.125 |
|
|
|
Income from Profit
sharing agreements |
203.944 |
304.755 |
121.027 |
|
|
|
Interest on loans to
subsidiary company |
0.000 |
7.228 |
8.535 |
|
|
TOTAL EARNINGS |
3155.599 |
3445.359 |
3204.763 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and packing
materials |
369.934 |
339.393 |
375.630 |
|
|
|
Capital Goods and
consumable stores |
168.311 |
81.836 |
110.404 |
|
|
TOTAL IMPORTS |
538.245 |
421.229 |
486.034 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
46.17 |
34.49 |
25.02 |
|
|
|
Diluted |
46.17 |
34.49 |
24.91 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term Borrowings |
440.283 |
435.621 |
506.895 |
|
|
|
|
|
|
Cash
generated from Operating Activities |
1446.434 |
2042.487 |
922.655 |
|
|
|
|
|
|
Net
cash generated from Operating Activities |
1245.524 |
1717.872 |
700.247 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
21.37 |
17.71 |
14.01 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
33.84 |
32.50 |
30.27 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.28 |
14.22 |
12.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.19 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.35 |
0.32 |
0.62 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.12 |
1.14 |
0.93 |
STOCK
PRICES
|
Face Value |
Rs. 2.00/- |
|
|
|
|
Market Value |
Rs. 509.80/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
313.731 |
330.731 |
332.348 |
|
Reserves & Surplus |
5062.059 |
6998.261 |
8457.572 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
5375.790 |
7328.992 |
8789.920 |
|
|
|
|
|
|
Long-term borrowings |
1371.236 |
949.691 |
962.821 |
|
Short term borrowings |
1477.435 |
986.312 |
1685.436 |
|
Current Maturities of
Long-Term Borrowings |
506.895 |
435.621 |
440.283 |
|
Total
borrowings |
3355.566 |
2371.624 |
3088.540 |
|
Debt/Equity
ratio |
0.624 |
0.324 |
0.351 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
5578.525 |
6223.422 |
7155.506 |
|
|
|
11.560 |
14.977 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
5578.525 |
6223.422 |
7155.506 |
|
Profit |
781.434 |
1101.923 |
1529.255 |
|
|
14.01% |
17.71% |
21.37% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
LITIGATION
DETAILS:
|
ITTASR 4731/ 2012
CASE IS: DISPOSED |
|
|
PETITIONER:- THE COMMISSIONER OF INCOME TAX-IV PETN.ADV.:- PRASAD (SC FOR INCOME TAX) SUBJECT :- U/Sec. 143 Assessment |
RESPONDENT:- VS M/S NATCO PHARMA LTD., RESP.ADV.:-
VASANTKUMAR DISTRICT:- HYDERABAD |
|
FILING DATE: 05.11.2012 POSTING STAGE: FOR ADMISSION AND HEARING DISPOSED ON
24.09.2013
DISMISSED
NO COSTS REG. DATE : 17.09.2013 LISTING DATE : 24.09.2013 STATUS : -- |
|
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10577202 |
22/06/2015 |
120,450,000.00 |
CITI BANK N.A. |
MID MARKET
ENTERPRISE, 1ST FLOOR, QUEENS PLAZA, |
C57597197 |
|
2 |
10545846 |
22/12/2014 |
600,000,000.00 |
Citi Bank N.A. |
#24, 3RD
FLOOR,CANBERRA BLOCK,, UB CITY, VITTAL M |
C41792599 |
|
3 |
10356550 |
06/03/2013 * |
400,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA- 390015, GUJARAT, INDIA |
B70186960 |
|
4 |
10276521 |
04/07/2012 * |
500,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
FLOOR 21, CENTER
ONE BUILDING,, WORLD TRADE CENTER, CUFFEE PARADE, MUMBAI- 400005,
MAHARASHTRA, INDIA |
B44480861 |
|
5 |
10271782 |
16/04/2015 * |
2,750,000,000.00 |
ALLAHABAD BANK |
INDUSTRIAL
FINANCE BRANCH, 6-3-850/3, 1ST FLOOR, |
C52475753 |
|
6 |
10241955 |
04/07/2012 * |
440,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
FLOOR 21, CENTER
ONE BUILDING, WORLD TRADE CENTER, CUFFEE PARADE, MUMBAI-400005, MAHARASHTRA,
INDIA |
B44480341 |
|
7 |
10224989 |
12/05/2015 * |
800,000,000.00 |
AXIS BANK LIMITED |
CORPORATE
BANKING BRANCH, 6-3-879/B, 1ST FLOOR, G PULLA REDDY BUILDING, GREEN LANDS, BEGUMPET
ROAD, |
C55082408 |
|
8 |
90126960 |
21/12/2004 |
2,000,000.00 |
EXPORT - IMPORT BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR-21, WORLD TRADE CENTR |
- |
|
9 |
90340115 |
27/02/1998 |
1,500,000.00 |
STATE BANK OF HYDERABAD; |
SANATHNAGAR
BRANCH;, HYDERABAD, ANDHRA PRADESH, INDIA |
- |
|
10 |
90258288 |
30/09/2004 * |
100,000,000.00 |
STRESSED ASSETS STABILISATION FUND |
IDBI TOWER, WTC
COMPLEX, MUMBAI- 400005, MAHARASHTRA, INDIA |
- |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
SHORT TERM BORROWINGS |
|
|
|
From banks |
310.239 |
42.958 |
|
|
|
|
|
Total |
310.239 |
42.958 |
COMPANY OVERVIEW:
NATCO
Pharma Limited (“the Company”) is a public company listed in India and incorporated
in accordance with the provisions of Companies Act, 1956. The Company is
engaged in manufacturing and selling of bulk drugs and finished dosage
formulations and caters to both domestic and international markets.
COMPANY AFFAIRS:
The Company’s standalone revenue for the year was Rs. 7291.200 Million,
up 14% over the previous year. Earnings before interest, taxes, depreciation,
amortisation and impairment (EBIDTA) before exceptional items increased by 20%
to Rs. 2421.300 Million compared to previous year in value terms, or 33% of
standalone revenue. Profit before taxes (PBT) was Rs. 1544.100 Million, up 9%
over the previous year.
The Company’s consolidated revenue for the year was H84018 lakhs, up 11%
over the previous year. EBITDA before exceptional items grew by 16% as compared
to previous in value terms, to Rs. 2282.900 Million, or 27% of consolidated
revenue. Profit before taxes (PBT) was Rs. 1342.200 Million, an increase of 4%
over the previous year.
Revenue from API’s constituted 30% of the revenue while formulations
constituted 50% of the revenue. This growth was largely driven by domestic
oncology segment, increase in market share in some of the key products and also
contribution from new product launches in FY2015. During the year, the Company
got the unique distinction of being the first company in India to launch the
generic version of Gilead’s Sovaldi under its brand “Hepcinat” for the
treatment of Hepatitis C.
As of March 31st, 2015, the Company has made 35 ANDA filings of which
(i) 14 are approved (including 2 tentative approvals);
(ii) 14 are Paragraph IV filings, which have been filed in collaboration
with global pharmaceutical companies, such
as, Mylan, Breckenridge, Alvogen, Actavis and Lupin. As of March 31st,
2015, the Company filed 31 DMFs with the USFDA across therapeutic segments such
as oncology, CNS, anti-asthmatic, anti-depressant, anti-migraine,
antiosteoporosis and gastrointestinal disorders and are currently working on
several more DMFs to be filed with USFDA in near future.
PART I
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR
THE QUARTER ENDED SEPTEMBER 30,2015
|
|
Particulars |
THREE MONTHS ENDED
(REVIEWED/UN-AUDITED) |
YEAR-TO-DATE
FIGURES FOR THE HALF YEAR ENDED ON (REVIEWED/UN-AUDITED) |
||
|
|
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
|
|
1. |
Gross Sales / Income from Operations
|
2043.500 |
1969.900 |
4013.400 |
|
|
|
Less
: Excise Duty |
80.900 |
53.000 |
133.900 |
|
|
|
Less
: Sales Tax |
63.500 |
55.200 |
118.700 |
|
|
|
Net Sales / Income from
Operations |
1899.100 |
1861.700 |
3760.800 |
|
|
2. |
Other
Operating Income |
121.300 |
78.800 |
200.100 |
|
|
3. |
TOTAL INCOME FROM OPERATIONS |
2020.400 |
1940.500 |
3960.900 |
|
|
4. |
EXPENDITURE |
|
|
|
|
|
|
a)
Cost of materials consumed |
637.600 |
618.100 |
1255.700 |
|
|
|
b) Purchases of stock-in-trade |
-- |
3.700 |
3.700 |
|
|
|
c) Changes in inventories
of finished goods, work-in- progress
and stock-in-trade |
(183.800) |
(102.500) |
(286.300) |
|
|
|
d) Employee benefits expense |
355.100 |
346.400 |
701.500 |
|
|
|
e) Depreciation and amortization expense |
112.400 |
112.000 |
224.400 |
|
|
|
f) Other Expenses |
603.700 |
469.300 |
1073.000 |
|
|
|
TOTAL EXPENSES |
1525.000 |
1447.000 |
2972.000 |
|
|
5. |
Profit / (Loss) from Operations before other income, finance costs and
exceptional items |
495.400 |
493.500 |
988.900 |
|
|
6. |
Other
Income |
30.800 |
28.300 |
59.100 |
|
|
7. |
Profit from ordinary activities before finance costs and exceptional
Items |
526.200 |
521.800 |
1048.000 |
|
|
8. |
Finance
costs |
75.400 |
77.700 |
153.100 |
|
|
9. |
Profit from ordinary activities after finance costs but before
exceptional Items |
450.800 |
444.100 |
894.900 |
|
|
10. |
Exceptional
Items |
-- |
0.000 |
-- |
|
|
11. |
Profit from ordinary activities before tax |
450.800 |
444.100 |
894.900 |
|
|
12. |
Current Tax Expense |
96.200 |
94.800 |
191.000 |
|
|
13. |
Deferred Tax Expense/
(reversal) |
8.600 |
8.600 |
17.200 |
|
|
14. |
Net Profit
/ Loss (-) from ordinary activities after tax |
346.000 |
340.700 |
686.700 |
|
|
15. |
Extraordinary
items ( net of tax expense) |
-- |
0.000 |
-- |
|
|
16. |
Net Profit/(Loss) for the period |
346.000 |
340.700 |
686.700 |
|
|
17. |
Paid-up Equity Share Capital (each share of Rs. 10/- face value) |
348.300 |
332.300 |
348.300 |
|
|
18. |
Reserves excluding
revaluation reserves as per Balance Sheet of previous accounting
year |
-- |
-- |
-- |
|
|
19. |
Earnings per share |
|
|
|
|
|
|
Basic and diluted EPS
before and after extraordinary item (Rs.) – non-annualized |
10.35 10.35 |
10.25 10.25 |
20.60 20.60 |
|
|
PART
II |
|
|
|
||
|
|
SELECT INFORMATION |
|
|||
|
A. |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
|
1. |
Public
Shareholding |
|
|
|
|
|
|
-
Number of Shares |
16969985 |
15368985 |
16968985 |
|
|
|
-
Percentage of Shareholding |
48.71 |
46.24 |
48.71 |
|
|
2. |
Promoter
and Promoter Group Shareholding |
|
|
|
|
|
|
a)
Pledged/Encumbered |
-- |
-- |
-- |
|
|
|
b)
Non-encumbered- No. of shares |
17865864 |
17865864 |
17865864 |
|
|
|
-Percentage of Shares (as
a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
-Percentage
of Shares (as a % of the total share capital of the Company) |
51.29 |
53.76 |
51.29 |
|
|
|
|
|
|||
|
|
Particulars |
|
|
|
|
|
|
|||||
|
|
Pending
as on 01.07.2015 |
-- |
|||
|
|
Received
during the quarter |
124 |
|||
|
|
Resolved
during the quarter |
124 |
|||
|
|
Pending
as on 30-09-2015 |
-- |
|||
REPORT OF SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED, (UN-AUDITED) UNDER CLAUSE 41 OF THE LISTING AGREEMENT, FOR THE QUARTER AND HALF YEAR ENDED ON 30TH SEPTEMBER,
2015
|
|
PARTICULARS |
THREE MONTHS ENDED
(UN-REVIEWED/UN-AUDITED) |
HALF YEAR ENDED (UN-REVIEWED/UN-AUDITED) |
|
|
1. |
Segment Revenue (Net) |
|
|
|
|
|
a)
Bulk Chemicals |
519.800 |
558.000 |
1077.800 |
|
|
b)
Formulations |
1591.000 |
1414.600 |
3005.600 |
|
|
c)
Job Work |
12.700 |
22.100 |
34.800 |
|
|
d)
Unallocated |
3.100 |
32.600 |
35.700 |
|
|
Total |
2126.600 |
2027.300 |
4153.900 |
|
|
Less : Inter-segment Revenue |
106.200 |
86.800 |
193.000 |
|
|
Net Sales / Income from Operations |
2020.400 |
1940.500 |
3960.900 |
|
2. |
Segment Results : Profit
(+)/Loss (-) before tax and interest |
|
|
|
|
|
a)
Bulk Chemicals |
49.500 |
113.400 |
162.900 |
|
|
b)
Formulations |
678.100 |
571.200 |
1249.300 |
|
|
c)
Job Work |
10.800 |
19.000 |
29.800 |
|
|
d)
Unallocated |
7.700 |
24.300 |
32.000 |
|
|
Total |
746.100 |
727.900 |
1474.000 |
|
|
Less : a)
Interest |
75.400 |
77.700 |
153.100 |
|
|
b) Oher unallocable
expenditure |
250.700 |
234.400 |
485.100 |
|
|
c) Unallocable income |
(30.800) |
(28.300) |
(59.100) |
|
|
Total Profit Before Tax |
450.800 |
444.100 |
894.900 |
|
3. |
Capital Employed (Segment Assets – Segment Liabilities) |
|
|
|
|
|
a) Bulk Chemicals |
4759.800 |
44696.300 |
4759.800 |
|
|
b) Formulations |
4716.400 |
4512.300 |
4716.400 |
|
|
c) Job Work |
4.100 |
10.100 |
4.100 |
|
|
d) Unallocated (Others) |
3340.800 |
(88.100) |
3340.800 |
|
|
Total |
12821.100 |
9130.600 |
12821.100 |
NOTES:
1. The above un-audited financial results were reviewed by the Audit Committee, Statutory Auditors and approved by the Board of Directors at a meeting held on 13th November, 2015. Figures for the previous period(s) have been re-arranged / re-grouped wherever necessary.
2. The Company has allotted 1,600,000 equity shares of Rs.10 each at a premium
of Rs. 2,120.55 per equity share on 18 September 2015 pursuant to a Qualified
Institution
Placement under Securities and Exchange Board of India (Issue of Capital and
Disclosure Requirements) Regulations, 2009 (as amended). Share issue expenses
amounting to Rs.642 lakhs have been adjusted against the Securities Premium
Account in terms of the provisions of Section 52 of the Companies Act, 2013
instead of charging to Statement of Profit and Loss account as done earlier.
3. As at 30 September 2015, Short term loans and advances includes term
deposits with financial institutions amounting to Rs. 4,00.000 Million.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
(a) Commitments |
|
|
|
Estimated amount of
contracts remaining to be executed on capital account and not provided
for (net of advances) |
179.536 |
178.486 |
|
(b) Contingent liabilities |
|
|
|
Claims against the
company not acknowledged as debt |
0.000 |
204.227 |
|
Disputed sales tax
liabilities |
8.690 |
8.690 |
|
Disputed service tax
liabilities |
1.749 |
0.000 |
|
Disputed customs
liability |
2.000 |
0.000 |
|
Disputed income tax
liabilities |
0.657 |
29.953 |
|
Total |
192.632 |
421.356 |
FIXED ASSETS:
Tangible Assets
·
Buildings
·
Plant
and Equipment
·
Furniture
and Fixtures
·
Vehicles
·
Office
Equipment
·
Computer
· Leasehold Land
·
Freehold
land
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 66.84 |
|
|
1 |
Rs. 101.04 |
|
Euro |
1 |
Rs. 73.05 |
INFORMATION DETAILS
|
Information Gathered
by : |
KMN |
|
|
|
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
IND |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.