MIRA INFORM REPORT

 

 

Report No. :

301695

Report Date :

07.01.2015

           

IDENTIFICATION DETAILS

 

Name :

GLENMARK PHARMACEUTICALS LIMITED

 

 

Registered Office :

B/2, Mahalaxmi Chambers, 22, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

18.11.1977

 

 

Com. Reg. No.:

11-019982

 

 

Capital Investment / Paid-up Capital :

Rs. 271.220 Millions

 

 

CIN No.:

[Company Identification No.]

L24299MH1977PLC019982

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG07883B

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Subject is primarily engaged in a single segment business of formulations and is managed as one entity, for its various activities and manufacturing and marketing of pharmaceuticals.

 

 

No. of Employees :

11000 (Approximately) 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

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

 

The rating reflects GPL’s strong position in the fast – growing chronic-therapeutic segments in India supported by decent financial base and adequate profitability margins of the company.

 

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

 

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

 

NOTES :

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

 

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term Rating: AA-

Rating Explanation

High degree of safety and very low credit risk

Date

12.11.2014

 

 

Rating Agency Name

CRISIL

Rating

Short Term Rating: A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

12.11.2014

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

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

 

 

INFORMATION DECLINED

 

Management non - cooperative (91-22-40189999)

 

 

LOCATIONS

 

Registered/ Administrative Office :

B/2, Mahalaxmi Chambers, 22, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Tel. No.:

91-22-24964893/ 24964894/ 24964895/ 24964896/ 56549999/ 55902491/ 92

Fax No.:

91-22-24932648/ 23512177/ 23519652

E-Mail :

glenmark@giasbm01.vsnl.net.in

webmaster@glenmarkpharma.com

complianceofficer@glenmarkpharma.com

adityap@glenmarkpharma.com

Website :

http://www.glenmarkindia.com

http://www.glenmarkpharma.com

 

 

Corporate Office :

Gelnmark House, HDO – Corporate Building Wing A, B D Sawant Marg, Chakala, Off Western Express Highway, Andheri (East), Mumbai – 400099, Maharashtra, India

Tel. No.:

91-22-40189999

Fax No.:

91-22-40189986

 

 

Manufacturing Facilities :

Formulations

 

·         E – 37, MIDC Industrial Area, D-Road, Satpur, Nasik – 422007, Maharashtra, India

·         Plot No. 7, Colvale Industrial Estate, Bardez – 403 115, Goa, India

·         D-42, Plot No. 50, Kundaim Industrial Estate, Kundaim – 403 115, Goa, India

·         Unit – I, Village-Kishanpura, Baddi Nalagarh Road, Tehsil Nalagarh, District Solan, Baddi – 174 101, Himachal Pradesh, India

·         Business Unit II, Village Bhattanwala, PO Rajpura, Nalagarh District Solan, Himachal Pradesh, India

·         Unit - III, Village Kishanpura, Baddi-Nalagarh Road, Dist. - Solan – 174101, Himachal Pradesh, India

·         Plot No. 2, Phase-II, Pharma Zone, Special Economic Zone Area, Pitampur, Indore – 454 775, Madhya Pradesh, India

·         Rua Assahi, 33-1, Andar CEP: 09633-0110, Rudge Ramos Sao Bernardo Do Campo, Sao Paulo, Brazil

·         Rua Frei Liberato De Gries, 548, Jardim Arpoadar, CEP: 05572-210, Sao Paulo, Brazil

·         Glenmark Pharmaceuticals S.R.O., Fibichova 143, 56617, Vysoke Myto, Czech Republic

·         Calle 9 Ing Meyer Oks N 593, Parque Industrial Pilar, B1629MX Buenos Aires, Argentina 

·         Growth Centre, Samlik-Marchak, District – East Sikkim, Sikkim.

 

API

 

·         3109-C, GIDC Industrial Estate, Ankleshwar, District Bharuch - 393 002, Gujarat, India

·         Plot No. 163-165/170-172, Chandramouli Industrial Estate, Mohal Bazarpeth, Sholapur – 413 213, Maharashtra, India

·         Plot No. A80, MIDC Area, Kurkumbh, Daund, Pune – 413 802, Maharashtra, India

·         Z-103 I, Dahej SEZ, Dahej District, Bharuch, Gujarat, Indi

·         Plot No.B-25, Five Star MIDC, Shendra, District Aurangabad, Maharashtra, India

 

 

R and D Centers :

·         Plot No. A-607, TTC Industrial Area, MIDC, Mahape, Vashi, Navi Mumbai - 400 705, Maharashtra, India

·         Chemin de la Combeta 5, 2300 La Chaux-de-fonds, Switzerland

·         Plot No. C 152, MIDC Sinnar Industrial Area, Malegaon, District Nasik - 422 113, Maharashtra , India

·         Plot No. M4, Taloja Industrial Area, MIDC Taloja, Takula Panvel – 410 208, District – Raigad, Maharashtra, India

 

 

Clinical Research Centre :

·         Plot No. D 508, TTC Industrial Estate, MIDC, Turbhe, Navi Mumbai – 400705, Maharashtra, India

·         Building 2, Croxley Green Business Park, Merlins Meadow, Watford, Hertfordshire, UK

 

 

 

DIRECTORS

 

As on 31.03.2014

 

Name:

Mrs. Cherylann Pinto

Designation :

Director - Corporate Affairs

Qualification:

Graduate in Pharmacy

 

 

Name:

Mr. Rajesh V. Desai

Designation :

Executive Director and CFO

 

 

Name

Mrs. B. E. Saldanha

Designation

Non-Executive Director

Qualification :

Graduated in Arts and Law

 

 

Name

Mr. D. R. Mehta

Designation

Non-Executive Director

 

 

Name

Mr. Sridhar Gorthi

Designation

Non-Executive Director

Qualification :

B.A., L.L.B. (Hons.) from National Law School of India University

 

 

Name

Mr. Bernard Munos

Designation

Non-Executive Director

 

 

Name

Mr. Hocine Sidi Said

Designation

Non-Executive Director

Qualification :

B.A. (International Marketing) 

 

 

Name

Mr. J. F. Ribeiro

Designation

Non-Executive Director

Qualification :

Ex-IPS

 

 

Name

Mr. N. B. Desai

Designation

Non-Executive Director

 

 

Name :

Dr. Brian W Tempest

Designation :

Non-Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanjay Kumar Chowdhary

Designation :

Company Secretary

 

 

SHAREHOLDING PATTERN

 

As on 30.09.2014

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

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

 

 

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

2804884

1.03

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

128241936

47.27

 

 

 

http://www.bseindia.com/include/images/clear.gifAny Other

128241936

47.27

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

131046820

131046820

 

 

 

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

 

 

Total shareholding of Promoter and Promoter Group (A)

131046820

48.31

 

 

 

(B) Public Shareholding

 

 

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

 

 

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

2865980

1.06

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

13115101

4.83

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

95135664

35.07

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

111116745

40.96

 

 

 

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

 

 

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

2982371

1.10

 

 

 

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

14270641

5.26

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

8374245

3.09

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

3478031

1.28

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

252026

0.09

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

358971

0.13

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

1216338

0.45

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

8104

0.00

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

1641130

0.60

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

1462

0.00

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

29105288

10.73

 

 

 

Total Public shareholding (B)

140222033

51.69

 

 

 

Total (A)+(B)

271268853

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

0

0.00

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

0

0.00

 

 

 

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

271268853

0.00

 

 

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

 

Sr..No.

Name of the Shareholder

Details of Shares held

 

 

No. of Shares held

As a % of grand total

1

Saldanha Family Trust

12,82,41,936

47.27

2

Cherylann Maria Pinto

4,91,000

0.18

3

Blanche Elizabeth Saldanha

4,83,966

0.18

4

Glenn Mario Saldanha

4,49,947

0.17

5

Glenn Mario Saldanha

3,00,000

0.11

6

Robin Joseph Pinto

2,74,000

0.10

7

Blanche Elizabeth Saldanha

1,10,544

0.04

8

Blanche Elizabeth Saldanha

1,10,543

0.04

9

Blanche Elizabeth Saldanha

1,10,542

0.04

10

Blanche Elizabeth Saldanha

1,10,542

0.04

11

Cherylann Maria Pinto

1,07,000

0.04

 

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

 

Sr..No.

Name of the Shareholder

Details of Shares held

Shares as % of Total No. of Shares

1

Life Insurance Corporation Of India

9314294

3.43

2

Oppeheimer Development Markets Fund

5588205

2.06

3

HSBC Global Investment Funds A/c HSBC GIF Mauritius Ltd

5560933

2.05

4

Emerging Markets Growth Fund Inc

3955244

1.46

5

Macquarie Fund Solutions A/C Macquarie Fund solutions - Macquaire Asia New Stars Fund

3362045

1.24

6

Merrill Lynch Capital Markets Espana S A S V

3322852

1.22

7

General Insurance Corporation of India

2900000

1.07

 

Total

34003573

12.54

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is primarily engaged in a single segment business of formulations and is managed as one entity, for its various activities and manufacturing and marketing of pharmaceuticals.

 

 

Products :

Products Description

Item Code No.

 

Terbutaline Sulphate + Bromehexine Hydrochloride + Guaiphenesin

300480.00

Clotrimazole

300490.99

Telmisartan

300490.79

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

11000 (Approximately) 

 

 

Bankers :

·         Bank of India, Mahalaxmi Branch, Mumbai – 400026, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

SECURED LOAN

As on

31.03.2014

As on

31.03.2013

SHORT TERM BORROWING

 

 

Loan repayable on demand

14.690

0.000

 

 

 

Total

14.690

0.000

 

Note :

(i) Working capital facilities represented by loan repayable on demand are secured by hypothecation of stocks of raw materials, packing materials, finished goods, work-in-process, receivables and equitable mortgage on fixed assets at the manufacturing facility at Nasik and Research and Development centre at Sinnar, Nasik both present and future.

(ii) The Company has not defaulted on repayment of loan and interest during the year.

(iii) The Company has taken working capital facility from banks/ term loans from banks in foreign currency as well as Indian Rupee. The

interest rates range between 2.58% - 10.50% which are repayable within twelve months.

 

 

Auditors :

 

Name :

Walker, Chandiok and Company

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Cost Auditors:

 

Name:

Sevekari Khare and Associates

Ccost Accountants

Address:

Mumbai, Maharashtra, India

 

 

Solicitor : 

·         Kanga and Company, Mumbai, Maharashtra, India

·         Trilegal, Mumbai, Maharashtra, India

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies:

·         Glenmark Pharmaceuticals Europe Limited., U.K.

·         Glenmark Generics (Europe) Limited., U.K.

·         Glenmark Pharmaceuticals S.R.O., Czech Republic

·         Glenmark Pharmaceuticals SK, s.r.o., Slovak Republic

·         Glenmark Pharmaceuticals S. A., Switzerland

·         Glenmark Holding S. A., Switzerland

·         Glenmark Generics Holding S. A., Switzerland

·         Glenmark Generics Finance S. A., Switzerland

·         Glenmark Pharmaceuticals S.R.L., Romania

·         Glenmark Pharmaceuticals Eood., Bulgaria

·         Glenmark Distributors SP z.o.o., Poland

·         Glenmark Pharmaceuticals SP z.o.o., Poland

·         Glenmark Generics Inc., USA

·         Glenmark Therapeutics Inc., USA

·         Glenmark Farmaceutica Ltda., Brazil

·         Glenmark Generics SA., Argentina

·         Glenmark Pharmaceuticals Mexico, S.A. DE C.V., Mexico

·         Glenmark Pharmaceuticals Peru SAC., Peru

·         Glenmark Pharmaceuticals Colombia Ltda., Colombia

·         Glenmark Uruguay S.A., Uruguay

·         Glenmark Pharmaceuticals Venezuela., C.A., Venezuela

·         Glenmark Dominicana, SRL, Dominican Republic

·         Glenmark Pharmaceuticals Egypt S.A.E., Egypt

·         Glenmark Pharmaceuticals FZE., United Arab Emirates

·         Glenmark Impex L.L.C., Russia

·         Glenmark Philippines Inc., Philippines

·         Glenmark Pharmaceuticals (Nigeria) Limited., Nigeria

·         Glenmark Pharmaceuticals Malaysia Sdn Bhd., Malaysia

·         Glenmark Pharmaceuticals (Australia) Pty Limited., Australia

·         Glenmark South Africa (Pty) Limited., South Africa

·         Glenmark Pharmaceuticals South Africa (Pty) Limited., South Africa

·         Glenmark Access Limited (formerly known as Glenmark Exports Limited.)

·         Glenmark Generics Limited, India

·         Glenmark Generics B.V., Netherlands

·         Glenmark Arzneimittel Gmbh., Germany

·         Glenmark Generics Canada, Inc.

·         Glenmark Pharmaceuticals Kenya Limited, Kenya

·         Glenmark Therapeutics AG; Switzerland

 

 

CAPITAL STRUCTURE

 

AS ON 25.07.2014

 

Authorised Capital: Rs.750.000 Millions

 

Issued, Subscribed & Paid-up Capital: Rs.271.284 Millions

 

 

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

350000000

Equity Shares

Re.1/- each

Rs. 350.000 Millions

4000000

Cumulative Redeemable Non Convertible Preference Shares

Rs.100/- each

Rs. 400.000 Millions

 

Total

 

Rs.750.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

270535503

Equity Shares

Re.1/- each

Rs.270.530 Millions

318150

Add: Issued during the year

- Under the employee Stock Option Scheme, 2003 (ESOS)

Rs.100/- each

Rs.0.320 Million

 

 

 

 

 

Total

 

Rs.270.850 Millions

 

 

 

As at 31 March 2014

List of shareholders holding more than 5% shares

% of Holding

 of Shares

Saldanha Family Trust

47.28

128,241,936

HSBC Global Investment Funds Mauritius Limited

- -

- -

 

 

As at 31 March 2014, 282,100 options were outstanding under Employee Stock Option Scheme 2003. On exercise of the options so granted under Employee Stock Option Scheme, 2003, the paid up Equity Share Capital of the Company will increase by equivalent number of shares.

 

Right, Preference and restriction on shares

 

The Company presently has only one class of ordinary equity shares. For all matters submitted to vote in the shareholders meeting, every holder of ordinary equity shares, as reflected in the of the Company on the date of the shareholders’ meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the Company.

 

In the period of five years immediately preceeding 31 March 2014, the Company has not allotted any shares as fully paid up pursuant to contracts without payment being received in cash. Further, the Company has neither issued bonus shares nor bought back any shares during the aforementioned period.

 

Employee Stock Option Scheme, 2003 (ESOS)

 

The Company has formulated an Employee Stock Option Scheme (‘ESOS’) scheme namely ESOS 2003 under which it has made grants on various dates from time to time. Each grant has a vesting period which varies from 1 - 2 years and up to 4 - 6 years from the date of grant depending on the terms of the grant. The grants are made at the market price of the equity shares of the Company on either the date or the closing price of the date prior to day of the grant.

 

The aggregate share options and weighted average exercise price under the above mentioned plan are as follows:

 

2014

 

Number*

weighted

average

Price in Rupees

Outstanding at 1 April 753,800 317.39

753,800

317.39

Granted

--

--

Forfeited/cancelled

(101,700)

286.86

Exercised

(307,000)

337.88

Outstanding as at 31 March

282,100

301.53

 

 

All share based employee remuneration would be settled in equity. The Company has no legal or constructive obligation to repurchase or settle the options.

 

The fair values of options granted are determined using the Black-Scholes valuation model. Significant inputs into the calculation are:

Share price (Rs.)*

120.85 – 480.40

Exercise price (Rs.)*

120.85 – 480.40

Weighted average volatility rate

40% - 60%

Dividend payout

200%

Risk free rate

7.75% - 9.00%

Average remaining life

1- 60 months

 

*All figures have been accordingly adjusted for:

- Split of face value from Rs. 10 to Rs. 2 in October 2003.

- 1:1 bonus issue in April 2005 and split of face value from Rs. 2 to Rs. 1 in September 2007.

 

The underlying expected volatility was determined by reference to historical data, adjusted for unusual share price movements. No special features inherent to the options granted were incorporated into the measurement of fair value.

 

The Company’s net profit and earnings per share would have been as under, had the compensation cost for employees’ stock options been recognized based on fair value at the date of grant in accordance with Black-Scholes model.

 

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

271.220

270.850

270.530

(b) Reserves & Surplus

28789.000

24960.930

21586.550

(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)

29060.220

25231.780

21857.080

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

2543.500

(b) Deferred tax liabilities (Net)

364.170

285.820

238.010

(c) Other long term liabilities

518.790

849.450

778.420

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

882.960

1135.270

3559.930

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3533.160

3088.490

2220.890

(b) Trade payables

5626.820

4262.030

2704.990

(c) Other current liabilities

2236.340

4427.050

644.140

(d) Short-term provisions

956.420

710.760

703.580

Total Current Liabilities (4)

12352.740

12488.330

6273.600

 

 

 

 

TOTAL

42295.920

38855.380

31690.610

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

4391.700

2671.190

2162.680

(ii) Intangible Assets

93.490

85.390

74.900

(iii) Capital work-in-progress

797.810

1688.960

655.710

(iv) Intangible assets under development

35.240

35.240

33.700

(b) Non-current Investments

14092.420

12943.320

10832.690

(c) Deferred tax assets (net)

6705.230

10324.070

0.000

(d)  Long-term Loan and Advances

0.000

0.000

9552.030

(e) Other Non-current assets

83.900

148.760

1018.310

Total Non-Current Assets

26199.790

27896.930

24330.020

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

2104.260

1901.510

1759.270

(c) Trade receivables

11360.440

5567.310

3587.430

(d) Cash and cash equivalents

1084.550

1677.860

475.140

(e) Short-term loans and advances

1514.290

1751.810

670.450

(f) Other current assets

32.590

59.960

868.300

Total Current Assets

16096.130

10958.450

7360.590

 

 

 

 

TOTAL

42295.920

38855.380

31690.610

 

 

 

PROFIT & LOSS ACCOUNT