MIRA INFORM REPORT
|
Report No. : |
301203 |
|
Report Date : |
10.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
RPG LIFE SCIENCES LIMITED (w.e.f. 13.02.2008) |
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|
|
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Formerly Known As
: |
RPG PHARMACEUTICALS LIMITED |
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Registered
Office : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030,
Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
29.03.2007 |
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|
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Com. Reg. No.: |
11-169354 |
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Capital
Investment / Paid-up Capital : |
Rs.132.300
Millions |
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|
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CIN No.: [Company Identification
No.] |
L24232MH2007PLC169354 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNER01855A |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on The Stock Exchanges. |
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Line of Business
: |
Manufacturing and Marketing of Pharmaceutical Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having a fine track record. Financial position of the company seems to be sound. Trade relations are fair. Business is active. Payment terms are
reported to be regular and as per commitment. The company can be considered normal 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term Loans: BBB+ |
|
Rating Explanation |
Have moderate degree of safety and carry moderate credit risk. |
|
Date |
September, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term non-fund based facilities: A2 |
|
Rating Explanation |
Have strong degree safety and carry low credit risk. |
|
Date |
September, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
LOCATIONS
|
Registered / Corporate Office : |
RPG House, 463, Dr. Annie Besant Road, Worli, Mumbai-400030,
Maharashtra, India |
|
Tel. No.: |
91-22-24981650/51/66606375/76/77/78 |
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Fax No.: |
91-22-24970127 |
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E-Mail : |
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Factory 1 : |
BIOTECH Plot No. 2702/A, GIDC Industrial Estate, Ankleshwar-393002, District
Bharuch, Gujarat, India |
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Tel. No.: |
91-2646-652102/03/04/652074 |
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Fax No.: |
91-2646-250104 |
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Factory 2 : |
FORMULATION Plot No. 3102/A, GIDC Estate, Ankleshwar-393002, District Bharuch,
Gujarat, India |
|
Tel. No.: |
91-2646-652062 to 652069 |
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Fax No.: |
91-2646-250572 |
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Purchase Office / Factory 3 : |
API 25, MIDC Land, Thane Belapur Road, Navi
Mumbai-400705, Maharashtra, India |
|
Tel. No.: |
91-22-67955555/5398/5399/6795/5400 |
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Fax No.: |
91-22-27672646/27631052 |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. H. V. Goenka |
|
Designation : |
Chairman |
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Name : |
Mr. R.A. Shah |
|
Designation : |
Alternate to Mr. C. Vinayaraghavan |
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Name : |
Mr. C.L. Jain |
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Designation : |
Director |
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|
Name : |
Dr. Lalit S. Kanodia |
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Designation : |
Director |
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Name : |
Mr. Mahesh S. Gupta |
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Designation : |
Director |
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Name : |
Mr. Manoj K. Maheshwari |
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Designation : |
Director |
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Name : |
Mr. P.K. Mohapatra |
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Designation : |
Director |
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Name : |
Mr. C. Vinayaraghavan |
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Designation : |
Director |
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Name : |
Mr. Narendra Ambwani |
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Designation : |
Director |
KEY EXECUTIVES
|
Audit Committee: |
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Name : |
Mr. Rajindrra
Patkar |
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Designation : |
Chief Executive – Global Formulations |
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Name : |
Mr. Vimalendu K.
Singh |
|
Designation : |
Chief Executive – API, Global Generics and Biotech |
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Name : |
Mr. Sachin Raole |
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Designation : |
CFO and Sr. Vice President – Corporate Services |
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Name : |
Dr. Uday R.
Bapat |
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Designation : |
Chief Scientific Officer |
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Name : |
Ms. Suchitra
Tiwari |
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Designation : |
General Manager – QA/QC and Regulatory Affairs |
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Name : |
Mr. Rabindranath Nandi |
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Designation : |
Vice President - Corporate Quality |
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Name : |
Mr. Anil Kumar Gupta |
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Designation : |
Vice President - Manufacturing |
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Name : |
Mr. Rajesh Shirambekar |
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Designation : |
Head – Legal and Company Secretary |
MAJOR SHAREHOLDERS / 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 |
|
|
|
|
|
|
|
|
46346 |
0.28 |
|
|
10177195 |
61.55 |
|
|
10223541 |
61.83 |
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|
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|
Total shareholding of Promoter and Promoter Group (A) |
10223541 |
61.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1100 |
0.01 |
|
|
294884 |
1.78 |
|
|
5500 |
0.03 |
|
|
301484 |
1.82 |
|
|
|
|
|
|
1032631 |
6.24 |
|
|
|
|
|
|
3298325 |
19.95 |
|
|
1303603 |
7.88 |
|
|
376521 |
2.28 |
|
|
79 |
0.00 |
|
|
245049 |
1.48 |
|
|
131393 |
0.79 |
|
|
6011080 |
36.35 |
|
Total Public shareholding (B) |
6312564 |
38.17 |
|
Total (A)+(B) |
16536105 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
16536105 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pharmaceutical Products. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Auditors : |
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Name : |
Lovelock and Lewes Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Solicitors: |
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Name : |
Crawford Bayley and Company |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Enterprise where
control exists: |
Notes: *No transactions during the year @Consequent to acquisition of additional shares of the company during the year by one of the subsidiaries of Swallow Associates Limited, a Promoter Group Company, the company became a subsidiary of Swallow Associates Limited with effect from 13th July, 2012 in terms of the provisions of sub-section (3) of Section 4 of the Act. However, on conversion of Swallow Associates Limited to Swallow Associates LLP ('SAL'), the company ceased to be a subsidiary of Swallow Associates Limited with effect from 31st October, 2012. SAL along with its subsidiaries, now holds 52.64% of the paid-up share capital of the company as at 31st March, 2013. |
CAPITAL STRUCTURE
As on 25.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18750000 |
Equity Shares |
Rs.8/- each |
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16536105 |
Equity Shares |
Rs.8/- each |
Rs.132.289Millions
|
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18750000 |
Equity Shares |
Rs.8/- each |
Rs.150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16535241 |
Equity Shares |
Rs.8/- each |
Rs.132.300
Millions |
NOTE:
Reconciliation of Number of Shares
|
Particular |
As on 31.03.2014 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Number of shares outstanding as at the beginning of the year |
16535241 |
132.300 |
The company has only one class of shares i.e. Equity Shares having a face value of Rs. 8 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
List of shareholders holding more than 5% shares as at the Balance Sheet date
|
Name of the
Shareholder |
As on 31.03.2014 |
|
|
|
No. of Shares |
% of Holding |
|
Swallow
Associates Limited |
5017522 |
30.34 |
|
Instant Holdings Limited |
2727659 |
16.50 |
|
Summit
Securities Limited |
1774708 |
10.73 |
Shares allotted as fully paid-up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31st March, 2013)
14,368,850 shares were allotted in the last 5 years as fully paid-up pursuant to a Scheme of Arrangement without payments being received in cash
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 |
132.300 |
132.300 |
132.300 |
|
(b) Reserves & Surplus |
1125.300 |
630.000 |
609.100 |
|
(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) |
1257.600 |
762.300 |
741.400 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3.600 |
105.200 |
206.700 |
|
(b) Deferred tax liabilities
(Net) |
17.000 |
29.400 |
68.200 |
|
(c) Other long term
liabilities |
30.600 |
31.500 |
72.100 |
|
(d) long-term provisions |
14.200 |
12.500 |
11.800 |
|
Total
Non-current Liabilities (3) |
65.400 |
178.600 |
358.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
136.800 |
370.900 |
243.900 |
|
(b) Trade payables |
370.200 |
474.300 |
288.700 |
|
(c) Other current liabilities |
51.900 |
240.100 |
168.800 |
|
(d) Short-term provisions |
78.800 |
31.400 |
23.700 |
|
Total
Current Liabilities (4) |
637.700 |
1116.700 |
725.100 |
|
|
|
|
|
|
TOTAL |
1960.700 |
2057.600 |
1825.300 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
870.900 |
828.300 |
875.400 |
|
(ii) Intangible Assets |
189.600 |
200.900 |
211.500 |
|
(iii) Capital work-in-progress |
8.400 |
12.600 |
12.800 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
51.600 |
22.700 |
25.200 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
6.700 |
|
Total
Non-Current Assets |
1120.500 |
1064.500 |
1131.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
377.700 |
293.700 |
287.900 |
|
(c) Trade receivables |
363.400 |
492.900 |
300.900 |
|
(d) Cash and cash equivalents |
7.000 |
7.800 |
5.600 |
|
(e) Short-term loans and
advances |
92.100 |
114.600 |
99.300 |
|
(f) Other current assets |
0.000 |
84.100 |
0.000 |
|
Total
Current Assets |
840.200 |
993.100 |
693.700 |
|
|
|
|
|
|
TOTAL |
1960.700 |
2057.600 |
1825.300 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2353.300 |
2216.400 |
1928.200 |
|
|
|
Other Income |
25.800 |
17.800 |
6.900 |
|
|
|
TOTAL (A) |
2379.100 |
2234.200 |
1935.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
658.100 |
547.900 |
446.500 |
|
|
|
Purchases of Stock-in-Trade |
194.300 |
188.000 |
119.500 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(84.900) |
28.500 |
(13.100) |
|
|
|
Employees benefits expense |
621.800 |
552.000 |
499.900 |
|
|
|
Other expenses |
780.500 |
735.900 |
693.900 |
|
|
|
Provision for Doubtful Debts and Advances |
68.900 |
3.400 |
0.000 |
|
|
|
Exceptional Items |
(641.400) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
2055.700 |
1746.700 |
1542.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
781.800 |
178.500 |
188.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
26.000 |
74.400 |
68.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
755.800 |
104.100 |
119.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
106.100 |
98.700 |
102.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
649.700 |
5.400 |
17.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
115.700 |
(38.700) |
8.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
534.000 |
44.100 |
8.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
252.200 |
233.500 |
240.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
53.400 |
2.200 |
0.000 |
|
|
|
Proposed Dividend |
5.600 |
3.400 |
13.200 |
|
|
|
Tax on Proposed Dividend |
33.100 |
19.800 |
2.200 |
|
|
BALANCE CARRIED
TO THE B/S |
694.100 |
252.200 |
233.500 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
712.200 |
618.600 |
506.900 |
|
|
|
Freight and Insurance |
11.200 |
12.900 |
11.200 |
|
|
TOTAL EARNINGS |
723.400 |
631.500 |
518.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
74.300 |
107.200 |
92.800 |
|
|
|
Stores & Spares |
3.900 |
2.300 |
1.900 |
|
|
|
Capital Goods |
14.600 |
5.100 |
14.500 |
|
|
TOTAL IMPORTS |
114.600 |
92.800 |
114.600 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
32.29 |
2.67 |
0.51 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
22.69 |
1.99 |
0.44 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
33.22 |
8.05 |
9.77 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
33.28 |
0.26 |
0.96 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.52 |
0.01 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.11 |
0.62 |
0.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.32 |
0.89 |
0.96 |
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 |
132.300 |
132.300 |
132.300 |
|
Reserves & Surplus |
609.100 |
630.000 |
1125.300 |
|
Net
worth |
741.400 |
762.300 |
1257.600 |
|
|
|
|
|
|
long-term borrowings |
206.700 |
105.200 |
3.600 |
|
Short term borrowings |
243.900 |
370.900 |
136.800 |
|
Total
borrowings |
450.600 |
476.100 |
140.400 |
|
Debt/Equity
ratio |
0.608 |
0.625 |
0.112 |
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 |
1928.200 |
2216.400 |
2353.300 |
|
|
|
14.947 |
6.177 |
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 |
1928.200 |
2216.400 |
2353.300 |
|
Profit |
8.500 |
44.100 |
534.000 |
|
|
0.44% |
1.99% |
22.69% |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
LITIGATION DETAILS
|
CASE DETAILS |
|||||||
|
BENCH:-BOMBAY |
|||||||
|
Lodging No.:- |
SSL/3504/2011 |
Filing Date:- |
23/12/2011 |
Reg. No.:- |
SS/274/2012 |
Reg. Date:- |
30.01.2012 |
|
Petitioner:- |
CREATIVE
HEALTH CARE PRIVATE LIMITED |
Respondent:- |
RPG
LIFE SCIENCES LIMITED |
||||
|
Petn.Adv.:- |
O.P.SONI
AND CO (0) |
Resp.Adv.:- |
M/S.
THAKORE JARIWALAL AND ASSOCIATES |
||||
|
District:- |
MUMBAI |
|
|
||||
|
Bench:- |
SINGLE |
|
|
||||
|
Status:- |
Transferred |
Category:- |
MONETARY SUITS |
||||
|
Last Date:- |
03/10/2012 |
Stage:- |
TRANSFERRED TO CITY CIVIL COURT |
||||
|
Act :- |
Code of Civil Procedure 1908 |
|
|
||||
BACKGROUND
Subject was incorporated on 29th March, 2007 as RPG Pharmaceuticals Limited. The name of the company was subsequently changed to RPG Life Sciences Limited on 13th February, 2008.
Pursuant to a Scheme of Arrangement, the company acquired the pharmaceuticals business of Brabourne Enterprises Limited (formerly RPG Life Sciences Limited) with retrospective effect from the appointed date of 2nd April, 2007.
OPERATIONS
The Company earned a total income of Rs. 2379.100 millions for the year as compared to Rs. 2234.200 millions during the previous year and a profit before tax of Rs. 8.300 millions as against Rs. 5.400 millions during the previous year. After providing for depreciation, interest and addition of exceptional income of Rs. 641.400 millions arising on sale of a part of Navi Mumbai land, the profit after tax for the year stood at Rs. 534.000 millions as compared to Rs. 44.100 millions for the previous year. The operating profit of the Company was lower due to a provision for doubtful debts of Rs. 67.400 millions arising from outstanding receivables from certain parties to whom goods were supplied as per contracts. The Company has already initiated legal action against these parties.
Subsequent to the pre-approval inspection by the USFDA of the Company’s API facility at Navi Mumbai and the formulation facility at Ankleshwar, the Company has received a notice of non-compliance and a warning letter from the USFDA. The non- approval of facilities would prolong future plans of entering the US market. The estimated time required for corrective steps and complete adherence with the stipulations indicated by USFDA is about two years.
Even though Company continues to hold EU GMP, WHO GMP and TGA, Australia certifications for the API facility at Navi Mumbai plant and UK MHRA certification for its formulation plant at Ankleshwar, some of its existing business has been impacted during the year as a result of the warning letter received from USFDA.
FORMULATIONS BUSINESS:
PERFORMANCE
During the year, the Formulations business achieved sales revenue of Rs. 1530.000 millions, with a growth of 9.8% over the previous year. The Company improved its prescription ratings by 3 ranks. Nephrocare Division features among the top 5 Indian Companies operating under this space. Acute care business grew by 13% vis-à-vis market growth of 8%, while Specialty business grew by 16% compared to market growth of 14%.
Continued thrust on Focus brand strategy in the Company’s core therapies has fuelled growth. Focus brands achieved a growth of 20% over the previous year. Some of the promising brands like Tricaine in Gastro-Intestinal therapy, Minmin Tonic in Nutritional Therapy, RPO & Alfalog in Dialysis Therapy, Frastim in Oncology and Anti-Diabetic Therapy have grown more than 20%. Company’s major brands such as Aldactone, Naprosyn, Serenace and Azoran showed healthy growth in the year under review. In addition, productivity improvement of the sales force played a significant role in achieving growth. In the export markets, the Company has received regulatory
approvals for its manufacturing facility from Tanzania, Ethiopia, Kenya and Algeria.
OUTLOOK
The Company will continue its emphasis on Focus brands and leverage the strength of the key brands to fuel growth. Gastrointestinal, Respiratory, Pain Management and Nutritionals will drive growth in the acute therapies while further strengthening of Cardiology, Anti-Diabetic, Oncology and Nephrology therapies will boost growth in the Chronic Specialty therapies. With focus on Immunosuppressant therapies, the Company will consolidate its position in the Nephrocare space both in Domestic as well as export markets.
Launching new products in therapies where the Company’s core competencies exist, in line with therapy gaps identified by prescription studies, will be a driver of growth in sales. Training of the field force will continue to remain the cornerstone for improving productivity by strengthening product knowledge and sales skills.
GLOBAL GENERICS
BUSINESS:
PERFORMANCE
The Global Generics business achieved sales revenue of Rs.189.000 millions, with a growth of 9% over the previous year. The key contributing factor for the growth was increased focus on existing clients in Canada and UK. Today, given the facility for manufacturing immunosuppressant’s, APIs and oral solid dosage forms, the Company enjoys a good share of the Azathioprine market. However, more generic companies are expected to enter the market with Azathioprine formulations.
OUTLOOK
The Company is constantly evaluating generic opportunities for both advanced markets like Europe and South Africa and major emerging markets like Russia and other Commonwealth of Independent States (CIS). In the coming years, the Company expects to increase the footprint of its flagship product Azathioprine Tablets in all strengths and launch this product in Germany and certain other European countries for tenders as well as private business.
Active Pharmaceutical Ingredients (API/Bulk
Drugs) Business:
Performance:
The API business achieved sales revenue of Rs. 355.900 crores, a
growth of 27% over the last year. The traditional markets of Latin America in
which the Company enjoys a fair market share continued to perform well.
Quinfamide, Pantoprazole and Lamotrigine registered good growth rates. Outlook:
API business has a strategic importance in the overall growth of the Company.
The Company has a backward integration for Di-phenoxylate and Azathioprine. One
of the key objectives of the Company is to build a strong and sustainable
product portfolio. It has a plan to introduce new APIs every year in various
key segments. With successful achievement of EU GMP, the Company plans to penetrate
EU markets with a new API towards the end of the current financial year. With
the emergence of BRIC markets, apart from domestic markets, Brazil & China
would be increasingly important markets for some niche APIs that the Company
manufactures.
BIOTECH BUSINESS:
PERFORMANCE
The Biotech business achieved Rs. 215.100 Millions by maintaining
business with key clients in domestic & international markets and with the
addition of new clients in Taiwan and Russia. The Company continued to make several
improvements and upgrades in its Biotech facility, to meet the requirements of
various markets in emerging geographies. In line with its strategy to take the
products to regulated markets, the Company has filed COS (Certificate of
Suitability) for Doxorubicin with EDQM (European Directive Quality Medicines)
in France and also plans to file COS for Epirubicin in the current financial
year.
OUTLOOK
Doxorubicin
and Epirubicin are used in treatment of cancer and which are manufactured by
the Company to compete with the best in class in the category. The Company
expects to receive COS for Doxorubicin in this year and expects to get COS for
Epirubicin by end of 2015. This will also help the Company to target regulated
business in Europe.
SEGMENT WISE PERFORMANCE
The Company is exclusively engaged in pharmaceutical business and operates across segments ranging from Global Formulations and Active Pharmaceutical Ingredients (API) to Global Generics and Biotech. Global Formulation division catering to domestic market and rest of the world market achieved sales of Rs. 1530.000 millions registering a growth of 9.8%. The Company has strengthened its presence in the market by leveraging the existing brands to get newer products launched. The Company also took a host of other initiatives such as increasing the in-clinic effectiveness of the field force through extensive scientific training, emphasis on Focus brands, innovative promotional strategies. These initiatives are expected to reap benefits in the current year too. In the export market, the revenues grew to Rs. 172.100 millions from Rs. 120.400 millions, where the emphasis has been the immunosuppressant products to Asian, African and Latin American markets. Focus brands achieved growth of 20%. The Global Generics business achieved net sales of Rs. 189.000 millions registering a growth of 9% over the previous year.
The increased focus on existing clients in Canada, UK and manufacture of Azathioprine in immunosuppressants,
APIs and oral solid dosage forms has increased the market share and contributed to growth. The Company expects to increase the footprint of its flagship product Azathioprine Tablets in all strengths by launching in European countries. The Bulk Drug business achieved net sales of Rs. 355.900 millions registering a growth of 27% over the last year. The Biotech business achieved net sales of Rs. 215.100 millions.
OUTLOOK
The growth estimate for the domestic Formulation Industry is pegged at 8% and 9%. In comparison to the Industry growth prediction, the Company has taken a growth target of 13% for products promoted through trade channels. In light of the initiatives detailed above, the outlook of the business looks positive.
AWARDS &
RECOGNITION
The Company has been recognized as one of India’s Best Companies in the Pharmaceuticals & Biotechnology industry for the second consecutive year in 2013 in study conducted by “Great Place to Work Institute” which validates the progressive culture organizations.
The Company has ranked 8th as “Asia’s Best-Employer Brand” and also been awarded with “Continuous Innovation in HR Strategy at Work” and “Innovation in Recruitment”.
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
Finance Lease Obligations |
0.600 |
1.500 |
|
Total |
0.600 |
1.500 |
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10181270 |
04/06/2013 * |
659,200,000.00 |
Union Bank of India |
239, Vidhan Bhavan Marg, Nariman Point, Mumbai, |
B76526151 |
* Date of charge modification
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS
ENDED 30th SEPTEMBER, 2014
|
Sr. No. |
Particular |
3
Months Ended |
6
months Ended |
|
|
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
566.200 |
587.900 |
1154.100 |
|
|
Other Operating
Income |
8.900 |
7.700 |
16.600 |
|
|
Total Income From Operations (Net) |
575.100 |
595.600 |
1170.700 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
174.300 |
152.600 |
326.900 |
|
|
Purchase
of stock in trade |
75.900 |
51.600 |
127.500 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(36.100) |
23.300 |
(12.800) |
|
|
Employee
benefits expenses |
189.200 |
156.100 |
345.300 |
|
|
Depreciation
and amortization expenses |
30.000 |
22.600 |
52.600 |
|
|
Provision
for doubtful debts and advances |
0.900 |
0.900 |
1.800 |
|
|
Other
expenses |
212.100 |
176.500 |
388.600 |
|
|
Total Expenses |
646.300 |
583.600 |
1229.900 |
|
|
|
|
|
|
|
3. |
Profit From Operations before
Other Income, Interest and Exceptional Items (1-2) |
(71.200) |
12.000 |
(59.200) |
|
|
|
|
|
|
|
4. |
Other
Income |
3.500 |
3.200 |
6.700 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and
Exceptional Items (3+4) |
(67.700) |
15.200 |
(52.500) |
|
|
|
|
|
|
|
6. |
Interest |
7.000 |
4.200 |
11.200 |
|
|
|
|
|
|
|
7. |
Profit After Interest but
before Exceptional Items (5-6) |
(74.700) |
11.000 |
(63.700) |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary
Activities before Tax (7+8) |
(74.700) |
11.000 |
(63.700) |
|
|
|
|
|
|
|
10. |
Tax
Expense |
(0.800) |
(0.600) |
(1.400) |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary
Activities after Tax (9-10) |
(73.900) |
11.600 |
(62.300) |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
--- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period
(11-12) |
(73.900) |
11.600 |
(62.300) |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.8/- Each) |
132.300 |
132.300 |
132.300 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
--- |
--- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
(4.47) |
0.70 |
(3.77) |
|
|
b)
Basic and diluted EPS after extraordinary items |
(4.47) |
0.70 |
(3.77) |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
6312564 |
6321501 |
6312564 |
|
|
-
Percentage of Shareholding |
38.17 |
38.23 |
38.17 |
|
|
|
|
|
|
|
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 |
10223541 |
10213740 |
10223541 |
|
|
-
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) |
61.83 |
61.77 |
61.83 |
|
Particulars |
3 Months Ended 30.09.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
10 |
|
Disposed of during the quarter |
10 |
|
Remaining unresolved at the end of the
quarter |
Nil |
|
SOURCES OF FUNDS |
As on 30.09.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders'
Funds |
|
|
(a) Share Capital |
132.300 |
|
(b) Reserves & Surplus |
1063.00 |
|
|
|
|
(2) Minority Interest |
0.000 |
|
|
1195.300 |
|
|
|
|
(3) Non-Current
Liabilities |
|
|
(a) long-term borrowings |
3.900 |
|
(b) Deferred tax liabilities (Net) |
28.800 |
|
(c) Other long term
liabilities |
31.600 |
|
(d) long-term
provisions |
14.200 |
|
|
78.500 |
|
(4) Current Liabilities |
|
|
(a) Short term
borrowings |
315.800 |
|
(b) Trade payables |
388.900 |
|
(c) Other current
liabilities |
56.600 |
|
(d) Short-term
provisions |
10.000 |
|
|
771.300 |
|
|
|
|
TOTAL |
2045.100 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
1093.100 |
|
(b) Long-term Loan and Advances |
75.100 |
|
|
1168.200 |
|
(2) Current assets |
|
|
(a) Inventories |
382.000 |
|
(b) Trade receivables |
390.500 |
|
(c) Cash and cash
equivalents |
15.500 |
|
(d) Short-term loans
and advances |
88.900 |
|
|
876.900 |
|
|
|
|
TOTAL |
2045.100 |
NOTE:
- The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 20th October, 2014.
- The results for the quarter ended 30th September, 2014 have been subjected to limited review by the statutory auditors of the company.
- The company is exclusively engaged in the pharmaceuticals segment,
- Pursuant to the enactment of the companies Act, 2013. Effective 1st April 2014, the management has evaluated and reassessed the useful life of its fixed assets. Consequent to such change, the on accountant of depreciation for the quarter is higher by Rs.1.000 million and for half year ended 30th September, 2014 is higher by Rs.2.100 million. Further, fixed assets of Rs.0.100 million having no residual life as at 1st April, 2014. have been recognized in the opening balance of General Reserve.
- Depreciation expenses for the half year ended 30th September, 2014 includes prior period credit of Rs.5.600 representing impact of rectification in the classification and estimated useful life of certain fixed assets.
- Figures for the prior periods have been regrouped where necessary.
FIXED ASSETS
- Goodwill
- Technical Knowhow
- Computer Software
- Leasehold Land
- Building
- Plant and Machinery
- Furniture, Fittings and Office Equipments
- Vehicles
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 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.62.39 |
|
|
1 |
Rs.94.16 |
|
Euro |
1 |
Rs.73.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.