MIRA INFORM REPORT

 

 

Report No.:

327475

Report Date :

17.06.2015

 

IDENTIFICATION DETAILS

 

Name :

CADILA HEALTHCARE LIMITED

 

 

Registered Office :

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

Tel. No.:

91-79-26868100

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

15.05.1995

 

 

Com. Reg. No.:

04-025878

 

 

Capital Investment / Paid-up Capital :

Rs. 1023.700 Million

 

 

CIN No.:

[Company Identification No.]

L24230GJ1995PLC025878

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMC00020G

 

 

PAN No.:

[Permanent Account No.]

AAACC6253G

 

 

Legal Form :

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

 

 

Line of Business :

Development, Production, Marketing and Distribution of Pharmaceutical Products.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (76)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

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

Large

 

Maximum Credit Limit :

USD 129000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and reputed company having an excellent track record.

 

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

 

Share price are quoted high on stock exchange (Face Value Rs 5 with Share price Rs 1752)

 

Directors are reported to be trustworthy. Business is active. Payments are reported to be regular and as per commitment.

 

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

 

It can be regarded as a promising business partner in medium to long run.

 

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

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2013.

 

 

INFORMATION DENIED

 

Management non co-operative (Tel. No.: 91-79-26868100)

 

 

 

 

LOCATIONS

 

Registered/ Corporate Office :

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

Tel. No.:

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

Fax No.:

91-79-26732365/ 26732366/ 26862365

E-Mail :

info@cadila-zydus.com

investor.grievance@zyduscadila.com

upen.shah@zyduscadila.com

Website :

http://www.cadilapharma.com 

http://www.zyduscadila.com

 

 

Factories :

Formulation Unit:

 

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

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

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

 

 

Topical Plant:

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

 

 

Zydus Biologics:

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

 

 

API Units :

Ř  GIDC Estate, Ankleshwar, Gujarat, India

 

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

 

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

 

 

SEZ Unit:

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

 

 

Zydus Research Center :

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

 

 

Registrar and

Share Transfer Agents :

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

 

 

Zyfine and

Topical Plant :

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

 

 

 

DIRECTORS

 

As on 31.03.2014

 

Name

Mr. Ramanbhai B. Patel

Designation

Founder

Address

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

 

 

Name

Mr. Pankaj R. Patel

Designation

Chairman and Managing Director

 

 

Name

Dr. Sharvil P. Patel

Designation

Deputy Managing Director

Address

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

 

 

Name

Mr. Humayun Dhanrajgiri

Designation

Director

 

 

Name

Mr. Mukesh M. Patel

Designation

Director

 

 

Name

Mr. Nitin Raojibhai Desai

Designation

Director

 

 

Name

Mr. Apurva S. Diwanji

Designation

Director

 

 

Name

Mrs. Dharmishta N. Rawal

Designation

Director

 

 

KEY EXECUTIVES

 

Name

Mr. Upen H. Shah

Designation

Company Secretary

 

 

Name

Mr. Nitin D Parekh

Designation

Chief Financial Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

Category of Shareholder

No. of Shares

% of Holdings

(A) Shareholding of Promoter and Promoter Group

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

 

 

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

153134446

74.79

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

3600

0.00

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

153138046

74.79

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

 

 

Total shareholding of Promoter and Promoter Group (A)

153138046

74.79

(B) Public Shareholding

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

 

 

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

8728746

4.26

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

368984

0.18

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

178295

0.09

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

7653925

3.74

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

13169657

6.43

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

48000

0.02

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

30147607

14.72

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

 

 

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

8738553

4.27

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 1 lakh

9185372

4.49

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 1 lakh

2690509

1.31

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

848433

0.41

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

848433

0.41

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

21462867

10.48

Total Public shareholding (B)

51610474

25.21

Total (A)+(B)

204748520

100.00

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

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

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

0

0.00

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

0

0.00

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

204748520

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Development, Production, Marketing and Distribution of Pharmaceutical Products.

 

 

Products :

Not Divulged

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

 

 

GENERAL INFORMATION

 

Suppliers :

Not Divulged

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 :

Not Divulged

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 :

Information declined by the management

 

 

Bankers :

·         Bank of Baroda

·         BNP Paribas

·         Credit Agricole Corporate and Investment Bank

·         Citibank N. A.

·         Exim Bank

·         HDFC Bank Limited

·         ICICI Bank Limited

·         IDBI Bank

·         State Bank of India

·         Standard Chartered Bank

 

 

Facilities :

SECURED LOANS

31.03.2014

31.03.2013

 

 

(Rs. In Million)

LONG TERM BORROWINGS

 

 

A Debentures [Secured]:

 

 

a) 9.70% Redeemable, Non-Convertible privately placed

1750.000

1750.000

b) 8.50% Redeemable, Non-Convertible privately placed

---

500.000

B Term Loans from Banks:

 

 

a) Term Loan [Secured]

---

250.000

b) External Commercial Borrowings in Foreign Currency [Secured]

5514.000

4020.000

SHORT TERM BORROWINGS

 

 

Loans repayable on Demand:

 

 

Working Capital Loans from Banks [Secured] [*]

1620.000

4005.000

 

 

 

Total

 

8884.000

10525.000

 

NOTE:

 

LONG TERM BORROWINGS

 

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

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

 

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

 

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

 

Rupee Term Loan:

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

 

Foreign Currency Loans:

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

SHORT TERM BORROWINGS

 

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

 

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

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Mukesh M. Shah and Company

Chartered Accountants

Address :

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

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Subsidiary Companies/ Concerns:

·         Dialforhealth India Limited

·         Zydus Pharmaceuticals (USA) Inc. [USA]

·         Dialforhealth Unity Limited

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

·         Dialforhealth Greencross Limited

·         German Remedies Limited

·         Zydus Healthcare (USA) LLC [USA]

·         Zydus Pharmaceuticals Limited

·         Zydus Noveltech Inc. [USA]

·         Zydus Animal Health Limited

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

·         Zydus Wellness Limited

·         Simayla Pharmaceuticals (Pty) Limited [South Africa]

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

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

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

·         Zydus Technologies Limited

·         Biochem Pharmaceutical Industries Limited

·         Zydus Pharmaceuticals Mexico SA De CV [Mexico]

·         Finest Procuring Solutions Limited

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

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

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

·         Zydus Netherlands B.V. [the Netherlands]

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

·         Zydus France, SAS [France]

·         Etna Biotech S.R.L. [Italy]

·         Bremer Pharma GmbH [Germany]

·         Zydus Pharma Japan Company Limited [Japan]

·         Zydus Lanka (Private) Limited [Sri Lanka]

·         Laboratorios Combix S.L. [Spain]

 

 

Joint Ventures :

·         Zydus BSV Pharma Private Limited

·         Zydus Hospira Oncology Private Limited

·         Zydus Nycomed Healthcare Private Limited

·         Bayer Zydus Pharma Private Limited

 

 

Enterprises significantly influenced by Directors and/ or their relatives:

·         Cadmach Machinery Company Private Limited

·         Western Ahmedabad Effluent Conveyance Company Private Limited

·         Zydus Hospitals and Healthcare Research Private Limited

·         Zydus Hospitals (Vadodra) Private Limited

·         Pripan Investment Private Limited

·         Zydus Hospitals (Rajkot) Private Limited

·         Zest Aviation Private Limited

·         MabS Biotech Private Limited

·         Zandra Infrastructure LLP

·         Zydus Infrastructure Private Limited

·         C. M. C. Machinery

·         Cadila Laboratories Private Limited

·         Cadam Enterprises

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital : Rs. 1725.000 Million

 

Issued, Subscribed & Paid-up Capital : Rs. 1023.743 Million

 

 

As on 31.03.2015

 

Authorised Capital :Not Available

 

Issued, Subscribed & Paid-up Capital : Rs. 1023.700 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1023.700

1024.000

1024.000

(b) Reserves & Surplus

44229.500

35275.000

28091.000

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

45253.200

36299.000

29115.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

5835.600

8536.000

7941.000

(b) Deferred tax liabilities (Net)

1236.400

1236.000

1236.000

(c) Other long term liabilities

239.100

206.000

272.000

(d) long-term provisions

805.000

468.000

348.000

Total Non-current Liabilities (3)

8116.100

10446.000

9797.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

6795.700

5576.000

8514.000

(b) Trade payables

6713.200

4617.000

3607.000

(c) Other current liabilities

3300.000

2986.000

2695.000

(d) Short-term provisions

3195.500

2507.000

1792.000

Total Current Liabilities (4)

20004.400

15686.000

16608.000

 

 

 

 

TOTAL

73373.700

62431.000

55520.000

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

21350.300

15392.000

14644.000

(ii) Intangible Assets

0.000

249.000

327.000

(iii) Capital work-in-progress

0.000

5306.000

4638.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

17507.500

12653.000

10640.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

7542.600

8032.000

7187.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

46400.400

41632.000

37436.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

4583.400

2924.000

2159.000

(b) Inventories

8043.200

6635.000

5872.000

(c) Trade receivables

10561.200

7220.000

6830.000

(d) Cash and cash equivalents

1293.900

894.000

916.000

(e) Short-term loans and advances

2018.500

2709.000

1910.000

(f) Other current assets

473.100

417.000

397.000

Total Current Assets

26973.300

20799.000

18084.000

 

 

 

 

TOTAL

73373.700

62431.000

55520.000

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Revenue from operations

14539.500

40421.000

35274.000

 

 

Other Income

149.000

3086.000

529.000

 

 

TOTAL                                     (A)

14688.500

43507.000

35803.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

2967.800

10681.000

9441.000

 

 

Purchases of Stock-in-Trade

1266.600

3827.000

3324.000

 

 

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

(53.600)

(357.000)

(90.000)

 

 

Employee Benefits Expense

1500.900

5251.000

4179.000

 

 

Other Expenses

4228.200

12949.000

11357.000

 

 

TOTAL                                     (B)

9909.900

32351.000

28211.000

 

 

 

 

 

Less

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

4778.600

11156.000

7592.000

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

138.600

425.000

1110.000

 

 

 

 

 

 

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

4640.000

10731.000

6482.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

553.900

1274.000

1168.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

4086.100

9457.000

5314.000

 

 

 

 

 

Less

TAX                                                                  (H)

615.500

421.000

328.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3470.600

9036.000

4986.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

17366.000

11896.000

10094.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

1000.000

1000.000

 

 

Transfer to Debenture Redemption Reserve

NA

450.000

450.000

 

 

Proposed Dividend

NA

1843.000

---

 

 

 Interim Dividend

NA

----

1536.000

 

 

Corporate Dividend Tax on Proposed Dividend

NA

273.000

198.000

 

BALANCE CARRIED TO THE B/S

20836.600

17366.000

11896.000

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

NA

20038.000

15442.000

 

 

Royalty, Know-how, professional and consultation fees

NA

301.000

601.000

 

 

Other Earnings

NA

274.000

193.000

 

TOTAL EARNINGS

NA

20613.000

16236.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

2907.000

2360.000

 

 

Stores & Spares

NA

354.000

178.000

 

 

Capital Goods

NA

414.000

1112.000

 

 

Finished Goods

NA

303.000

223.000

 

 

Packing materials

NA

232.000

200.000

 

TOTAL IMPORTS

NA

4210.000

4073.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic and Diluted EPS

 

 

 

 

- Before Exceptional Items

16.95

44.13

24.35

 

- After Exceptional Items

16.95

44.13

24.35

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

NA

175.000

140.000

Cash generated from operations

NA

814.400

505.000

 

           

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2014

(Unaudited)

30.09.2014

(Unaudited)

31.03.2014

(Unaudited)

Net Sales

11127.900

12528.100

14648.800

Total Expenditure

8489.400

9288.800

9815.100

PBIDT (Excl OI)

2638.500

3239.300

4833.700

Other Income

163.400

1437.900

101.800

Operating Profit

2801.900

4677.200

4935.500

Interest

82.500

102.300

105.000

Exceptional Items

0.000

0.000

0.000

PBDT

2719.400

4574.900

4830.500

Depreciation

529.500

522.400

512.700

Profit Before Tax

2189.900

4052.500

4317.800

Tax

217.000

396.400

706.200

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

1972.900

3565.100

3611.600

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

1972.900

3565.100

3611.600

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

23.87

22.35

14.14

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

32.87

27.60

21.52

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.31

21.27

13.21

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.09

0.26

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.28

0.39

0.57

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.35

1.33

1.09

 

 

STOCK PRICES

 

Face Value

Rs. 5.00/-

Market Value

Rs. 1752.95/-

 

 

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

1024.000

1024.000

1023.700

Reserves & Surplus

28091.000

35275.000

44229.500

Share Application money pending allotment

0.000

0.000

0.000

Net worth

29115.000

36299.000

45253.200

 

 

 

 

long-term borrowings

7941.000

8536.000

5835.600

Short term borrowings

8514.000

5576.000

6795.700

Current Maturities of Long Term Debt

140.000

175.000

0.000

Total borrowings

16595.000

14287.000

12631.300

Debt/Equity ratio

0.570

0.394

0.279

 

 

 

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

35274.000

40421.000

14539.500

 

 

14.591

(64.030)

 

 

 

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

35274.000

40421.000

14539.500

Profit

4986.000

9036.000

3470.600

 

14.14%

22.35%

23.87%

 

C

 

 

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

No

10

Date of Birth of Proprietor / Partners / Directors

No

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:

 

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 379 of 2014

 

Status : PENDING

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

CCIN No : 001092201400379

 

 

Last Listing Date:

28/04/2014

Coram

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

 

 

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX-I

MRS MAUNA M BHATT for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

 

S.NO.

Name of the Respondant

Advocate On Record

1

CADILA HEALTHCARE LTD

RULE SERVED for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MR RK PATEL for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

 

 

Presented On

: 21/04/2014

Registered On

: 23/04/2014

Bench Category

: -

District

: AHMEDABAD

Case Originated From

: THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 141 times

StageName

: ADMISSION (FRESH MATTERS)

 

Classification

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

Act

·         INCOME-TAX ACT, 1961

 

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

21/04/2014

APPEARANCE NOTE

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

0

MRS MAUNA M BHATT(174) for P:1

2

21/04/2014

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

20

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

3

21/04/2014

CERTIFIED COPY

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

60

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

4

25/04/2014

VAKALATNAMA

MR RK PATEL ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

5

MR RK PATEL(1082) for R:1

 

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

28/04/2014

7

2-

ADMISSION (FRESH MATTERS)

RULE/ADMIT

·         HONOURABLE MR.JUSTICE AKIL KURESHI 

·         HONOURABLE MS JUSTICE SONIA GOKANI

 

Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

Download

1

TAX APPEAL/379/2014

·         HONOURABLE MR.JUSTICE AKIL KURESHI 

·         HONOURABLE MS JUSTICE SONIA GOKANI

28/04/2014

N

ORDER

-

Y

Download

 

Certified Copy

 

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MR RK PATEL

ORDINARY

29/04/2014

O/17809/2014

28/04/2014

01/05/2014

05/05/2014

Delivered

ORDER

2

MRS MAUNA M BHATT

ORDINARY

29/04/2014

O/17775/2014

28/04/2014

01/05/2014

02/05/2014

Delivered

ORDER

 

 

 

UNSECURED LOANS

 

PARTICULARS

31.03.2014

31.03.2013

 

 

(Rs. In Millions)

LONG TERM BORROWINGS

 

 

Term Loans from Banks:

 

 

External Commercial Borrowings in Foreign Currency [Unsecured]

1199.000

1268.000

Deferred Payment Liabilities [Unsecured]:

 

 

Interest free deemed loan against deferment of sales tax:

 

 

a) From a Financial Institution

--

14.000

b) Deferred amount

--

56.000

From Others [Unsecured]

73.000

83.000

SHORT TERM BORROWINGS

 

 

Loans repayable on Demand:

 

 

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

3956.000

4509.000

 

 

 

Total

 

5228.000

5930.000

 

Terms of Repayment for Unsecured Long Term Borrowings:

 

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

 

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

 

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

 

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

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10516028

07/08/2014

930,000,000.00

CITI BANK N.A.

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

C17406232

2

10504520

28/05/2014

1,204,040,000.00

THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED

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

C07604234

3

10465522

21/11/2013

945,000,000.00

CITI BANK N.A.

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

B91692251

4

10456406

10/10/2013

1,300,000,000.00

BARCLAYS BANK PLC

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

B88096995

5

10430802

31/05/2013

1,124,860,000.00

THE BANK OF TOKYO-MITSUBISHI UFJ LTD

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

B76984210

6

10396390

17/06/2014 *

8,500,000,000.00

BANK OF BARODA

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

C08947178

7

10332648

24/01/2012

1,020,000,000.00

THE BANK OF NOVA SCOTIA ASIA LIMITED

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

B30856926

8

10323573

12/12/2011

384,000,000.00

BANK OF AMERICA N.A.

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

B27990894

9

10201696

19/02/2010

500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

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

A79162178

 

 

 

 

ECONOMY AND INDUSTRY OVERVIEW

 

GLOBAL ECONOMY AND PHARMACEUTICAL INDUSTRY

 

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

 

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

 

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

 

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

 

 

INDIAN ECONOMY AND PHARMACEUTICAL INDUSTRY

 

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

 

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

 

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

 

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

 

 

HOME MARKETS

 

INDIA FORMULATIONS

 

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

 

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

 

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

 

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

 

 

US FORMULATIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

 

BRAZIL

 

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

 

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

 

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

 

MEXICO

 

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

 

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

 

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

 

 

OTHER MARKETS AND BUSINESSES

 

EUROPE

 

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

 

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

 

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

 

EMERGING MARKETS OF ASIA PACIFIC, AFRICA AND THE MIDDLE EAST

 

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

 

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

 

JAPAN

 

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

 

 

APIS

 

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

 

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

 

 

CONSUMER WELLNESS

 

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

 

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

 

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

 

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

 

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

 

ANIMAL HEALTH

 

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

 

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

 

 

FIXED ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fixture

·         Office Equipments

·         Vehicles

·         Trademarks, Patents and Designs

·         Technical Know-how

·         Commercial Rights

 

 

 

PRESS RELEASE

 

ZYDUS CADILA’S NET PROFIT SOARS TO RS. 11510.000 MILLION

 

Announcing the results for the year ended 31st March 2015, Zydus Cadila registered a Net Profit of Rs. 11510.000 Million, up by 43% from Rs. 804 crores. During the year, the company registered gross sales of Rs. 86580.000 Million, up by 20% from Rs. 72080.000 Million in the corresponding period last year, on a consolidated basis.

 

For the fourth quarter ended 31st March 2015, the group registered gross sales of Rs. 22970.000 Million, up by 18% from Rs. 19520.000 Million in the corresponding period last year on a consolidated basis. Net Profit for the same period stood at Rs. 3500.000 Million. The Board of Directors of the Company in their meeting proposed a dividend of 240%.

 

During the year, the group launched Exemptia, the world’s first biosimilar for Adalimumab which is the largest selling therapy worldwide. This biosimilar is a part of the group’s robust biologics programme which has the largest number of monoclonal antibodies under development in India. Exemptia is marketed by Zydus Biovation and Zydus BioNext - new divisions launched exclusively to market this ground breaking therapy for inflammatory arthritis and Inflammatory Bowel Disease. During the year, the group also launched SoviHep, the breakthrough therapy for Hepatitis C in alliance with Gilead Sciences.

 

Advancing its discovery research programme, the group has been exploring newer treatment options for its breakthrough drug LipaglynTM (Saroglitazar) and initiated Phase III trials of the molecule for patients suffering from lipodystrophy and nonalcoholic steatohepatitis (NASH), during the year. The group initiated Phase I clinical trials in the United States for ZYDPLA1, a novel, orally active, small molecule DPP-4 inhibitor to treat Type-2 Diabetes. Phase-I clinical trials are also underway in Australia for its IND - ZYAN 1, a HIF-PH inhibitor for treating anemia.

 

Strengthening its regulatory pipeline, the group filed 38 ANDAs during the year with the US FDA, taking the cumulative filings to 260. The group received 8 ANDA approvals during the year taking the total to 99 product approvals.

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a 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. 64.15

UK Pound

1

Rs. 100.04

Euro

1

Rs. 72.27

 

 

INFORMATION DETAILS

 

Information Gathered by :

SUV

 

 

Analysis Done by :

DIV

 

 

Report Prepared by :

JYO

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILITY

1~10

9

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

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

 

76

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.