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MIRA INFORM REPORT
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Report No. : |
499857 |
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Report Date : |
23.03.2018 |
IDENTIFICATION DETAILS
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Name : |
BIOCON LIMITED |
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Registered
Office : |
20th KM Hosur Main Road, Hebbagodi, Electronics City, Bangalore –
560100, Karnataka |
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Tel. No.: |
91-80-28082808/28082037 / 40144014 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
29.11.1978 |
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Com. Reg. No.: |
08-003417 |
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Capital
Investment / Paid-up Capital : |
INR 1000.000 Million |
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CIN No.: [Company Identification
No.] |
L24234KA1978PLC003417 |
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IEC No.: [Import-Export Code No.] |
0788000560 |
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TIN No.: |
29160058124 |
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PAN No.: [Permanent Account No.] |
AAACB7461R |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTN : [Goods & Service Tax
Registration No.] |
29AAACB7461R1ZZ |
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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
: |
· The Company is engaged in the manufacture of biotechnology products and research services. · Manufacture of pharmaceuticals, medicinal chemical and botanical products. (Registered Activity) |
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No. of Employees
: |
4832 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Maximum Credit Limit : |
USD 186900000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company incorporated in the year 1978. It is an established company having an excellent track record. It is engaged in manufacturing and marketing pharmaceuticals formulations and active pharmaceuticals ingredients. For the financial year 2017, the company has increased its revenue from operations as compared to previous year and maintained healthy profit margin of 20.07%. The rating takes into consideration strong financial risk profile of the company marked by healthy networth base and low debt level along with fair liquidity position. Rating also derives strength from rich experience of its promoters, established position and strong brand in bio pharma market and strengthening presence as one of the India's major player. Trade relations are reported as fair. Payments are reported to be regular and as per commitments. In view of established market position, the company can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
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Rating |
Long term rating : AA+ |
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Rating Explanation |
High degree of safety and very low credit risk |
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Date |
12.01.2017 |
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Rating Agency Name |
ICRA |
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Rating |
Short term rating : A1+ |
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Rating Explanation |
Very strong degree of safety and carry lowest credit risk |
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Date |
12.01.2017 |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 23.03.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED BY
|
Name : |
Mr. Shiva Kumar |
|
Designation : |
Assistant Manager - SCM |
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Contact No.: |
91-80-28082808 |
Management non-cooperative (Tel No.:91-80-28082037/40144014)
LOCATIONS
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Registered
Office /Factory 1 / Corporate Headquarters: |
20th KM Hosur Main Road, Hebbagodi, Electronics City,
Bangalore–560100, Karnataka, India |
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Tel. No.: |
91-80-28082808/28082037 / 40144014 |
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Fax No.: |
91-80-28523423 |
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E-Mail : |
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Website : |
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Factory 2 (SEZ
Unit) : (Special
Economic Zone) |
Plot No. 2 to 5, Phase IV Bommsandra-Jigani Link Road, Bangalore - 560099, Karnataka, India |
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Factory 3 : |
Plot No. 2, Road No. 21, JN Pharma City, IDA, Parvada, Vishakapatnam - 531021, Andhra Pradesh, India |
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Factory 4 : |
Plot 213-215, IDA
Phase – II, Pashamylaram Medak District – 502307, Telangana, India |
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Overseas Offices : |
Located At: ·
New
Jersey ·
London ·
Abu
Dhabi ·
Dubai |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Dr. Arun Suresh Chandavarkar |
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Designation : |
Managing Director |
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Address : |
#376, Malabar Mansion, 13th Main, III Block, Koramangala, Bangalore-560034, Karnataka, India |
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Qualification : |
Bachelor in Technology from the prestigious Indian Institute of Technology, Bombay. He earned his Ph.D. in Biochemical Engineering from the Massachusetts Institute of Technology, Cambridge, USA. |
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Date Of Appointment : |
24.04.2014 |
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PAN No : |
AAJPC6667N |
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DIN No.: |
01596180 |
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Name : |
Prof. Ravi Rasendra Mazumdar |
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Designation : |
Director |
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Address : |
565, Hemingway Place, Waterloo On, N2T1Z4, Canada |
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Date of
Birth/Age : |
14.07.1940 |
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Qualification
: |
IT, Bombay (B. Tech in Electrical Engineering, 1977). He received the MSc, DIC from Imperial College, London (1978) and is a Ph.D. from the University of California, Los Angeles (UCLA, 1983). |
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Date of
Appointment : |
08.08.2000 |
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DIN No.: |
00109213 |
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Name : |
Dr. Kiran Mazumdar-Shaw |
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Designation : |
Managing Director |
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Address : |
Glenmore, No. 58 Goolimangala Village, Sarjapur Hobli, Anekal Taluk, Bangalore -562106, Karnataka, India |
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Date of Birth/Age : |
20.11.1978 |
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Qualification : |
B.Sc. (Hons.), PG Diploma in Malting and Brewing |
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Date Of Appointment : |
01.04.2010 |
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DIN No.: |
00347229 |
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Name : |
Mr. John Mccallum Marshall Shaw |
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Designation : |
Whole-time director |
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Address : |
Glenmore, Survey No. 58, Goolimangala Village, Sarjapur Hobli, Anekal Taluk, Bangalore-562106, Karnataka, India |
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Qualification : |
He holds a master’s degree in Arts (Economic Hons.) in History and Political Economy from Glasgow University, United Kingdom |
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Date Of Appointment : |
12.01.1998 |
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DIN No.: |
00347250 |
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|
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Name : |
Mr. Meleveetil Damodaran |
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Designation : |
Director |
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Address : |
D-8/3, D-Block, Vasant Vihar, New Delhi-110057, India |
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Date Of Appointment : |
26.04.2016 |
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DIN No.: |
02106990 |
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|
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Name : |
Mr. John Russell Fotheringham Walls |
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Designation : |
Director |
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Address : |
40 IBIS Lane, Grove Park, Chiswick, London, W43UP, United Kingdom |
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Date of Birth/Age : |
73 Years |
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Experience : |
46 Years |
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Date of Appointment : |
28.04.2011 |
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DIN No.: |
03528496 |
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Name : |
Ms. Mary Harney |
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Designation : |
Director |
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Address : |
Wynnsward Park, Dublin 14, Dublin, 14, Ireland |
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Date of Birth/Age : |
64 Years |
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Date of Appointment : |
26.04.2012 |
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DIN No.: |
05321964 |
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Name : |
Mr. Daniel Mark Bradbury |
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Designation : |
Director |
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Address : |
5462, Soledad Road, LA Jolla, California, 92037, United States |
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Date of Birth/Age : |
56 Years |
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Qualification: |
He holds a postgraduate diploma in Management Studies and a diploma of the Chartered Institute of Marketing from Harrow and Ealing Colleges of Higher Education, United Kingdom and bachelor’s degree in Pharmacy (Hons.) from Nottingham University, United Kingdom. |
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Experience : |
31 Years |
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Date of Appointment : |
25.04.2013 |
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DIN No.: |
06599933 |
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Name : |
Dr. Levin M Jeremy |
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Designation : |
Director |
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Address : |
110 Riverside Door 13A, New York, United States |
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Date of Birth/Age : |
63 Years |
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Qualification: |
He holds a Bachelor’s Degree in Zoology and a Masters of Arts and a Doctorate in the structure of Chromatin from the University of Oxford. In addition he received degrees of Bachelor of Medicine and Bachelor of Surgery from the University of Cambridge. |
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Date Of Appointment : |
22.01.2015 |
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DIN No.: |
07071720 |
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Name : |
Dr. Vijay Kumar Kuchroo |
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Designation : |
Director |
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Address : |
30 Fairhaven Road, Newton, Massachusetts, Massachusetts, 02459, United States |
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Date of Birth/Age : |
62 Years |
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Date Of Appointment : |
22.01.2015 |
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DIN No.: |
07071727 |
KEY EXECUTIVES
|
CORE
COMMITTEE |
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Name : |
Kiran Mazumdar - Shaw |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. John Shaw |
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Designation : |
Vice Chairman |
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Name : |
Dr. Arun Chandavarkar |
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Designation : |
Chief Executive Officer and Joint Managing Director |
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Name : |
Mr. Ravi Limaye |
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Designation : |
President, Marketing |
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Name : |
Mr. Siddharth Mittal |
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Designation : |
President Finance and Chief Financial Officer |
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Name : |
Mr. Narendra Chirmule |
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Designation : |
Sr. Vice President, R&D |
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Name : |
Mr. Amitava Saha |
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Designation : |
Sr. Vice President, Human Resources |
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Scientific Advisory
Board |
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|
Name : |
Prof. Alan D. Cherrington |
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Designation : |
Ph.D., Professor and Chairman |
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|
Name : |
Dr. David M. Essayan |
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Designation : |
M.D., Key Research |
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Name : |
Dr. G. Alexander Fleming |
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Designation : |
M.D., President and Chief Executive Officer |
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Name : |
Dr. Harold E. Lebovitz |
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Designation : |
M.D., FACE, Professor |
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Name : |
Dr. Lawrence Steinman |
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Designation : |
M.D., Key Research |
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|
Name : |
Dr. Vijay Kuchroo |
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Designation : |
D.V.M., Ph.D. Key Research |
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|
Name : |
Dr. Brian Kotzin |
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Designation : |
Vice President of Global Clinical Development |
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|
Name : |
Dr. Brian Daniels |
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Designation : |
M.D., M.S. and B.S. |
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|
Name : |
Dr. Jugnu Jain |
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Designation : |
PhD |
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|
Name : |
Prof. Huub Schellekens |
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Designation : |
M.D., Ph.D. Professor |
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|
Name : |
Mr. Siddharth Mittal |
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Designation : |
Chief Financial Officer, |
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Address : |
No C-402, P St Johns Kloods Apartments, Thavarekere, Main Road, Near Forum Mall, Bangalore-560029, Karnataka, India |
|
Date Of
Appointment : |
01.08.2014 |
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PAN No.: |
ADBPM8709L |
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|
Name : |
Mr. Rajiv Balakrishnan |
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Designation : |
Company Secretary |
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Address : |
No. 3 Ground Floor, Sree Rama Nilayam Spur, Tank Road Chetpet, Chennai- 600031, Tamilnadu, India |
|
Date Of
Appointment : |
24.01.2017 |
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PAN No.: |
AGFPB7799C |
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|
|
Name : |
Dr. Arun Suresh Chandavarkar |
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Designation : |
Chief Executive Officer |
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Address : |
#376, Malabar Mansion, 13th Main, III Block, Koramangala, Bangalore-560034, Karnataka, India |
|
Qualification : |
Bachelor in Technology from the prestigious Indian Institute of Technology, Bombay. He earned his Ph.D. in Biochemical Engineering from the Massachusetts Institute of Technology, Cambridge, USA. |
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Date Of Appointment : |
24.04.2014 |
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PAN No : |
AAJPC6667N |
SHAREHOLDING PATTERN
AS ON December 2017
|
Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of
shares (calculated as per SCRR, 1957)As a % |
|
|
(A) Promoter & Promoter
Group |
364007838 |
60.67 |
|
|
(B) Public |
226622590 |
37.77 |
|
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(C) Non Promoter-Non Public |
9369572 |
1.56 |
|
|
Grand Total |
600000000 |
100.00 |
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of shareholder |
No. of fully paid up equity shares held |
Shareholding as a % of total no. of shares
(calculated as per SCRR, 1957)As a % |
|
|
A1) Indian |
0.00 |
||
|
Individuals/Hindu
undivided Family |
238775298 |
39.80 |
|
|
KIRAN MAZUMDAR SHAW |
237862692 |
39.64 |
|
|
YAMINI R MAZUMDAR |
912606 |
0.15 |
|
|
Sub
Total A1 |
238775298 |
39.80 |
|
|
A2) Foreign |
0.00 |
||
|
Individuals
(NonResident Individuals/ Foreign Individuals) |
6626958 |
1.10 |
|
|
J M M SHAW |
4222674 |
0.70 |
|
|
RAVI RASENDRA MAZUMDAR |
2145042 |
0.36 |
|
|
DEV MAZUMDAR |
259242 |
0.04 |
|
|
Any Other
(specify) |
118605582 |
19.77 |
|
|
Glentec International |
118605582 |
19.77 |
|
|
Sub
Total A2 |
125232540 |
20.87 |
|
|
A=A1+A2 |
364007838 |
60.67 |
Statement showing shareholding pattern of the Public
shareholder
|
Category & Name of the Shareholders |
No. of fully paid up equity shares held |
Shareholding % calculated as per SCRR, 1957 As a
% |
|
|
B1)
Institutions |
|
|
|
|
Mutual
Funds/ |
13100114 |
2.18 |
|
|
Foreign
Portfolio Investors |
99239559 |
16.54 |
|
|
Oppenheimer Deveoping Markets
Fund |
22241254 |
3.71 |
|
|
Franklin Templeton Investment
Funds |
6737669 |
1.12 |
|
|
National Westminster Bank PLC
as Ttrustee of the Jupiter India Fund |
8381133 |
1.40 |
|
|
Financial
Institutions/ Banks |
7866125 |
1.31 |
|
|
Any Other
(specify) |
2136656 |
0.36 |
|
|
Foreign Nationals |
2136656 |
0.36 |
|
|
Sub
Total B1 |
122342454 |
20.39 |
|
|
B2)
Central Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual
share capital upto INR 0.200 million |
42905774 |
7.15 |
|
|
Individual
share capital in excess of INR 0.200 million |
26211718 |
4.37 |
|
|
Arun Suresh Chandavarkar |
6600000 |
1.10 |
|
|
NBFCs
registered with RBI |
63194 |
0.01 |
|
|
Any
Other (specify) |
35099450 |
5.85 |
|
|
Trusts |
12145076 |
2.02 |
|
|
Alternative Investment Fund |
183061 |
0.03 |
|
|
NRI |
2667439 |
0.44 |
|
|
Clearing Members |
1436524 |
0.24 |
|
|
NRI – Non- Repat |
2709342 |
0.45 |
|
|
Bodies Corporate |
15922684 |
2.65 |
|
|
IEPF |
35324 |
0.01 |
|
|
Sub
Total B3 |
104280136 |
17.38 |
|
|
B=B1+B2+B3 |
226622590 |
37.77 |
Statement showing shareholding pattern of the Non Promoter-
Non Public shareholder
|
Category & Name of the
Shareholders(I) |
No. of shareholder(III) |
No. of fully paid up equity shares
held(IV) |
Total no. shares held(VII = IV+V+VI) |
Shareholding % calculated as per SCRR,
1957 As a % of (A+B+C2)(VIII) |
Number of equity shares held in
dematerialized form(XIV)(Not Applicable) |
|
|
C1)
Custodian/DR Holder |
0 |
0 |
0.00 |
|||
|
C2)
Employee Benefit Trust |
0 |
0 |
0.00 |
|||
|
Employee
Benefit Trust |
1 |
9369572 |
9369572 |
1.56 |
9369572 |
|
|
Sub
Total C2 |
1 |
9369572 |
9369572 |
1.56 |
9369572 |
|
|
C=
C1+C2 |
1 |
9369572 |
9369572 |
1.56 |
9369572 |
BUSINESS DETAILS
|
Line of Business : |
· The Company is engaged in the manufacture of biotechnology products and research services. · Manufacture of pharmaceuticals, medicinal chemical and botanical products. (Registered Activity) |
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Products / Services
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
4832 (Approximately) |
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Bankers (As per 31.03.2016) : |
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Facilities : |
LONG TERM
BORROWING On February 9, 2000, the Company obtained an order from the Karnataka Sales Tax Authority for allowing an interest free deferment of sales tax (including turnover tax) for a period upto 12 years with respect to sales from its Hebbagodi manufacturing facility for an amount not exceeding INR 649. This is an interest free liability. The amount is repayable in 10 equal half yearly instalments of ` 65 each starting from February 2012. The loan was repaid during the year. During the year ended March 31, 2016, the Company had obtained an external commercial borrowing facility of USD 20 million from a bank. The term loan facility is secured by first priority pari-passu charge on the plant and machinery of the proposed expanded facility line in the existing facility with a carrying amount of ` 1,410. The long-term loan is repayable in 4 equal quarterly instalments of USD 5 million each commencing from December 31, 2018 and carries an interest rate of LIBOR + 0.95% p.a. During the year ended March 31, 2016, the Company had entered into interest rate swap to convert floating rate to fixed rate. On March 31, 2005, the Company entered into an agreement with the Council of Scientific and Industrial Research (‘CSIR’), for an unsecured loan of 3 for carrying out part of the research and development project under the New Millennium Indian Technology Leadership Initiative (‘NMITLI’) Scheme. The loan is repayable over 10 equal annual instalments of 0.3 starting from April 2009 and carry an interest rate of 3% p.a. On March 31, 2009, the Department of Scientific and Industrial Research (‘DSIR’) sanctioned financial assistance for a sum of INR 17 to the Company for part financing one of its research projects. The assistance is repayable in the form of royalty payments for three years post commercialization of the project in five equal annual instalments of INR 3 each, starting from April 1, 2013. On August 25, 2010, the Department of Science and Technology (‘DST’) under the Drugs and Pharmaceutical Research Programmer (‘DPRP’) has sanctioned financial assistance for a sum of INR 70 to the Company for financing one of its research projects. The loan is repayable over 10 annual instalments of ` 7 each starting from July 1, 2012, and carries an interest rate of 3% p.a. In respect of the financial assistance received under the aforesaid programmers (refer note (c) to (e) above), the Company is required to utilize the funds for the specified projects and is required to obtain prior approvals from the said authorities for disposal of assets/Intellectual property rights acquired/ developed under the above programmers. SHORT TERM
BORROWING During the year ended March 31, 2016, the Company had obtained unsecured foreign currency denominated loans of INR 597 (USD 9 million) [April 01, 2015 - INR Nil (USD Nil)], carrying an interest rate of LIBOR + 0.20% p.a. from a bank. The facility was repayable within 120 days from the date of its origination and has been repaid during the current year. During the year ended March 31, 2016, the Company had obtained unsecured foreign currency denominated loans of INR 1,656 (USD 25 million) [April 01, 2015 - Nil (USD Nil)], carrying an interest rate of LIBOR + 0.10% p.a. from a bank. The facility was repayable within 180 days from the date of its origination and has been repaid during the current year. During the year ended March 31, 2015, the Company had obtained foreign currency denominated loan of INR 561 (USD 9 million), carrying an interest rate of LIBOR + 0.35% p.a., from a bank. The facility was repayable within 180 days from the date of its origination and was repaid during the year ended March 31, 2016. The Company had working capital facilities with various banks carrying interest rate ranging from 9.7% - 13% p.a. These facilities were repayable on demand, secured by pari-passu first charge on inventories and trade receivables. |
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Statutory Auditors : |
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|
Name : |
S. R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
12th and 13th Floor, “UB City”, Canberra Block No. 24, Vittal Mallya Road, Bangalore-560001, Karnataka, India |
|
Tel. No.: |
91-80-67275000 |
|
Fax No.: |
91-80-22106000 |
|
|
|
|
Name : |
B S R and Company LLP Chartered Accountants |
|
Address : |
5th Floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalakshmi, Mumbai-400011, Maharashtra, India |
|
Tel. No.: |
91-80-39806000 |
|
Fax No.: |
91-80-39806999 |
|
|
|
|
Secretarial
Auditors : |
|
|
Name : |
Sreedharan and Company Secretarial Auditor |
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries : |
Syngene International Limited |
|
|
|
|
Wholly-owned
subsidiaries : |
· Biocon Research Limited · Biocon SA · Biocon Sdn.Bhd. · Biocon Pharma Limited · Biocon Biologics Limited · Biocon FZ LLC · Biocon Pharma Inc. · Biocon Academy |
|
|
|
|
Joint-venture : |
NeoBiocon FZ LLC |
|
|
|
|
Enterprise owned by
key management personnel : |
Glentec International Limited |
|
|
|
|
Trust in which key
management personnel are the Board of Trustees : |
Biocon Foundation |
|
|
|
|
Enterprise in which
a director of the Company is a member of board of directors : |
Narayana Hrudayalaya Limited [formerly known as Narayana Hrudayalaya Private Limited] |
CAPITAL STRUCTURE
AS ON 28.07.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
INR 5/- each |
INR 3000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
INR 5/- each |
INR 3000.000 Million |
|
|
|
|
|
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
220000000 |
Equity Shares |
INR 5/- each |
INR 1100.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
INR 5/- each |
INR 1000.000 Million |
|
|
|
|
|
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting year
|
Equity Shares |
31.03.2017 |
|
|
No. |
INR In Million |
|
|
At the beginning of the year |
200000000 |
1000.000 |
|
Issued during the year |
-- |
-- |
|
Outstanding at the end of the year |
200000000 |
1000.000 |
Terms/rights attached
to equity shares
The Company has only one class of equity shares having a par value of INR 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts, if any. The distribution will
be in proportion to the number of equity shares held by the shareholders.
Details of shareholders
holding more than 5% shares in the Company
|
Equity Shares |
31.03.2017 |
|
|
Equity shares of
INR 5 each fully paid |
No. |
% holding |
|
Dr Kiran Mazumdar Shaw |
79287564 |
39.64% |
|
Glentec
International |
39535194 |
19.77% |
As per records of the Company, including its register of shareholders/members, the above shareholding represents both legal and beneficial ownerships of shares.
Shares reserved for
issue under options
For details of shares reserved for issue under the employee stock option plan (ESOP) of the Company.
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET (STANDALONE)
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
(b) Reserves &
Surplus |
64411.000 |
58966.000 |
24844.000 |
|
(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) |
65411.000 |
59966.000 |
25844.000 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
1324.000 |
1365.000 |
114.000 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
9.000 |
368.000 |
|
(c) Other long term
liabilities |
769.000 |
920.000 |
1364.000 |
|
(d) long-term provisions |
133.000 |
95.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
2226.000 |
2389.000 |
1846.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
2255.000 |
561.000 |
|
(b) Trade payables |
4505.000 |
3944.000 |
3008.000 |
|
(c) Other current
liabilities |
2227.000 |
2142.000 |
603.000 |
|
(d) Short-term provisions |
320.000 |
285.000 |
1468.000 |
|
Total Current Liabilities
(4) |
7052.000 |
8626.000 |
5640.000 |
|
|
|
|
|
|
TOTAL |
74689.000 |
70981.000 |
33330.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
8649.000 |
8596.000 |
8986.000 |
|
(ii) Intangible Assets |
292.000 |
342.000 |
157.000 |
|
(iii) Capital
work-in-progress |
2408.000 |
1723.000 |
576.000 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
34074.000 |
32545.000 |
804.000 |
|
(c) Deferred tax assets
(net) |
1054.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1923.000 |
1584.000 |
5435.000 |
|
(e) Other Non-current
assets |
2504.000 |
2480.000 |
13.000 |
|
Total Non-Current Assets |
50904.000 |
47270.000 |
15971.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
5247.000 |
5983.000 |
843.000 |
|
(b) Inventories |
5396.000 |
5046.000 |
4063.000 |
|
(c) Trade receivables |
7982.000 |
5038.000 |
5551.000 |
|
(d) Cash and cash
equivalents |
3829.000 |
6430.000 |
6212.000 |
|
(e) Short-term loans and
advances |
0.000 |
0.000 |
497.000 |
|
(f) Other current assets |
1331.000 |
1214.000 |
193.000 |
|
Total Current Assets |
23785.000 |
23711.000 |
17359.000 |
|
|
|
|
|
|
TOTAL |
74689.000 |
70981.000 |
33330.000 |
PROFIT
& LOSS ACCOUNT (STANDALONE)
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
25879.000 |
23018.000 |
22416.000 |
|
|
Other Income |
988.000 |
1731.000 |
1491.000 |
|
|
TOTAL |
26867.000 |
24749.000 |
23907.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials and
packaging material consumed |
9915.000 |
9479.000 |
9565.000 |
|
|
Purchases of traded goods |
902.000 |
760.000 |
880.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(465.000) |
(364.000) |
(392.000) |
|
|
Employees benefits
expense |
3650.000 |
3219.000 |
2844.000 |
|
|
Other expenses |
5963.000 |
5754.000 |
5239.000 |
|
|
Exceptional Item |
0.000 |
(1061.000) |
218.000 |
|
|
Recovery of Product development
cost from co-development partners |
(4.000) |
(48.000) |
(19.000) |
|
|
TOTAL |
19961.000 |
17739.000 |
18335.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
6906.000 |
7010.000 |
5572.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
38.000 |
19.000 |
8.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
6868.000 |
6991.000 |
5564.000 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION
|
1506.000 |
1397.000 |
1281.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
5362.000 |
5594.000 |
4283.000 |
|
|
|
|
|
|
|
Less |
TAX |
169.000 |
1908.000 |
671.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
5193.000 |
3686.000 |
3612.000 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
|
|
|
|
Basic |
26.45 |
18.78 |
18.06 |
|
|
Diluted |
26.27 |
18.76 |
18.06 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
971.000 |
104.000 |
866.000 |
|
Cash generated from operations |
3065.000 |
4137.000 |
2079.000 |
|
Net cash flow from (used in) operations |
1858.000 |
2085.000 |
1250.000 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 1st
Quarter |
30.09.2017 2nd
Quarter |
31.12.2017 2nd
Quarter |
|
Unaudited |
|
|
|
|
Net Sales |
5806.000 |
6047.000 |
5921.000 |
|
Total Expenditure |
4944.000 |
5318.000 |
5362.000 |
|
PBIDT (Excl OI) |
862.000 |
729.000 |
559.000 |
|
Other Income |
261.000 |
457.000 |
374.000 |
|
Operating Profit |
1123.000 |
1186.000 |
933.000 |
|
Interest |
9.000 |
2.000 |
1.000 |
|
Exceptional Items |
NA |
NA |
NA |
|
PBDT |
1114.000 |
1184.000 |
932.000 |
|
Depreciation |
372.000 |
334.000 |
332.000 |
|
Profit Before Tax |
742.000 |
850.000 |
600.000 |
|
Tax |
197.000 |
166.000 |
163.000 |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
545.000 |
684.000 |
437.000 |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
545.000 |
684.000 |
437.000 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors /Income * 365 Days) |
112.58 |
79.89 |
90.39 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
3.24 |
4.57 |
4.04 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
152.01 |
140.60 |
105.11 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
1.28 |
1.39 |
1.37 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.61 |
0.66 |
0.57 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.13 |
0.13 |
0.20 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.04 |
0.06 |
0.06 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities
/ Net Worth) |
0.11 |
0.14 |
0.22 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.17 |
0.18 |
0.38 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
181.74 |
368.95 |
696.50 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
20.07 |
16.01 |
16.11 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
6.95 |
4.79 |
10.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
7.94 |
6.15 |
13.98 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
3.37 |
3.44 |
3.08 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
2.61 |
2.85 |
2.36 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.88 |
0.78 |
0.78 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
2.30 |
3.72 |
1.54 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
3.37 |
3.44 |
3.08 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK
PRICES
|
Face Value |
INR 5.00/- |
|
Market Value |
INR 562/- |
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
Reserves & Surplus |
24844.000 |
58966.000 |
64411.000 |
|
Net
worth |
25844.000 |
59966.000 |
65411.000 |
|
|
|
|
|
|
Long Term borrowings |
114.000 |
1365.000 |
1324.000 |
|
Short Term borrowings |
561.000 |
2255.000 |
0.000 |
|
Current Maturities of Long term debt |
866.000 |
104.000 |
971.000 |
|
Total
borrowings |
1541.000 |
3724.000 |
2295.000 |
|
Debt/Equity
ratio |
0.060 |
0.062 |
0.035 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
22416.000 |
23018.000 |
25879.000 |
|
|
|
2.686 |
12.429 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
22416.000 |
23018.000 |
25879.000 |
|
Profit |
3612.000 |
3686.000 |
5193.000 |
|
|
16.11% |
16.01% |
20.07% |
ABRIDGED
BALANCE SHEET (CONSOLIDATED)
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1000.000 |
1000.000 |
|
(b) Reserves &
Surplus |
|
47377.000 |
39338.000 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
(3) Non-controlling
interest |
|
3761.000 |
2658.000 |
|
Total Shareholders’ Funds
|
|
52138.000 |
42996.000 |
|
|
|
|
|
|
(4) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
21082.000 |
20724.000 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term
liabilities |
|
3579.000 |
3905.000 |
|
(d) long-term provisions |
|
360.000 |
299.000 |
|
Total Non-current
Liabilities |
|
25021.000 |
24928.000 |
|
|
|
|
|
|
(5) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
972.000 |
3949.000 |
|
(b) Trade payables |
|
7397.000 |
6098.000 |
|
(c) Other current
liabilities |
|
7946.000 |
6236.000 |
|
(d) Short-term provisions |
|
468.000 |
374.000 |
|
Total Current Liabilities
(4) |
|
16783.000 |
16657.000 |
|
|
|
|
|
|
TOTAL |
|
93942.000 |
84581.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
35793.000 |
17219.000 |
|
(ii) Intangible Assets |
|
458.000 |
264.000 |
|
(iii) Capital
work-in-progress |
|
5327.000 |
20597.000 |
|
(iv) Intangible assets
under development |
|
3065.000 |
1798.000 |
|
(b) Non-current
Investments |
|
1888.000 |
268.000 |
|
(c) Deferred tax assets
(net) |
|
1975.000 |
715.000 |
|
(d) Long-term Loan and Advances |
|
0.000 |
0.000 |
|
(e) Other Non-current
assets |
|
4959.000 |
4011.000 |
|
Total Non-Current Assets |
|
53465.000 |
44872.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
10650.000 |
8747.000 |
|
(b) Inventories |
|
6353.000 |
5424.000 |
|
(c) Trade receivables |
|
8832.000 |
7145.000 |
|
(d) Cash and cash
equivalents |
|
10443.000 |
15386.000 |
|
(e) Short-term loans and
advances |
|
0.000 |
0.000 |
|
(f) Other current assets |
|
4199.000 |
3007.000 |
|
Total Current Assets |
|
40477.000 |
39709.000 |
|
|
|
|
|
|
TOTAL |
|
93942.000 |
84581.000 |
PROFIT
& LOSS ACCOUNT (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
38911.000 |
33474.000 |
|
|
Other Income |
|
1571.000 |
792.000 |
|
|
TOTAL |
|
40482.000 |
34266.000 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials and
packaging material consumed |
|
13224.000 |
12549.000 |
|
|
Purchases of traded goods |
|
1932.000 |
760.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(690.000) |
(405.000) |
|
|
Employees benefits
expense |
|
7470.000 |
6101.000 |
|
|
Other expenses |
|
8463.000 |
8111.000 |
|
|
Less : Recovery of
product development costs form co-development
partners |
|
(1283.000) |
(1320.000) |
|
|
Exceptional Item |
|
0.000 |
(1606.000) |
|
|
Share of Profit of Joint
Venture |
|
(163.000) |
(217.000) |
|
|
TOTAL |
|
28953.000 |
23973.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
|
11529.000 |
10293.000 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
260.000 |
293.000 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
11269.000 |
10000.000 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
2772.000 |
2487.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
8497.000 |
7513.000 |
|
|
|
|
|
|
|
Less |
TAX |
|
1616.000 |
1422.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
6881.000 |
6091.000 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
0.04 |
0.03 |
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
Yes |
|
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 |
Yes |
|
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 |
-- |
|
33] |
Market information |
-- |
|
34] |
Payments terms |
No |
|
35] |
Negative Reporting by Auditors in the
Annual Report |
No |
STATE OF AFFAIRS
The highlights of the Company’s standalone performance are as under:
Revenue from operations grew by 12% to INR 26184.000 million from INR 23354.000 million in FY16. Other income for FY17 at INR 988.000 million (FY16 INR 1731.000 million), primarily due to foreign exchange gain INR 160.000 million and dividend from subsidiaries INR 487.000 million in FY16.
Core operating margins (EBIDTA excluding R&D, forex and
dividend from subsidiaries) remained at similar levels as compared to FY16.
COMPANY OVERVIEW
Reporting entity
The Company is engaged in the manufacture of biotechnology products and research services. The Company is a public limited company incorporated and domiciled in India and has its registered office in Bengaluru, Karnataka, India. The Company’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.
MANAGEMENT DISCUSSION
AND ANALYSIS
The global life science industry has fared well amidst the past economic downturns. In light of today’s volatile marketplace, which is faced with economic, political and social challenges, this industry is faced with reform-driven pricing pressures and increased demand for value in innovation. Significant global unmet needs, aided by favourable demographic trends, make it likely that this industry would enjoy long term growth. Driven by the recent wave of innovative therapies approved by regulators, reports suggest that the global drug spending could reach $1.1 trillion by 2022.
Globally, spending on healthcare correlates well with general economic strength of a country. Given the high contribution of the USA, Russia, Brazil and China in global growth of healthcare spending, coupled with pricing pressures in the United States and the unstable economic conditions in large emerging markets have led to a slowdown in the global marketplace. Strict measures taken by the governments with regards to health care budgets and/ or reductions in out- of-pocket expenditures in these countries have impacted the spending. Aging populations, rise of chronic diseases and the introduction of innovative and frequently expensive treatments (e.g., for cancer and Hepatitis C) are some of the main factors, which would continue to drive growth in health care spending. However, many countries have taken steps to contain health care costs that includes price control, value-based pricing and reimbursement along with pro-generic and pro-biosimilar policies. Companies are responding to the current changing market dynamics and are trying to position themselves for continued growth through portfolio transformation, mergers and acquisitions (M&A), cost-cutting, sharpened focus on high-performing therapeutic areas (TAs) and on key geographic markets.
GLOBAL BIOLOGICS
MARKET CONTINUES TO GROW
Growth of the pharmaceutical companies is driven by specialty products with a focus on personalized medicine, which includes biologic drugs. With increased number of biologics being approved as compared to non-biologics (synthetic molecules) in recent times, antibody drugs have become an increasingly significant component of the therapeutic landscape, Antibodies exhibit very high specificity and selectivity, reducing risks of ‘off-target’ toxicity typical for synthetic molecules and enabling ‘personalized’ treatments’. Of the top 15 pharma drugs by sales in 2016, 10 drugs were biologics
Driven by recent advances that have created much excitement in the industry (e.g. nivolumab, pembrolizumab, atezolizumab, ocrelizumab), oncology remains the most sought after therapeutic area followed by immunotherapy. Expanding waistlines across the globe will continue to see growth in the segment of anti-diabetic drugs and attract more research dollars. Over the past several years, biologics have made many new, ground breaking treatments possible and gained significant traction in the pharmaceutical industry as novel biologic blockbusters have continued to enter the market. Companies are increasingly focusing on narrow patient populations characterized by large unmet needs and easier market access. Estimates by Evaluate Pharma indicate that sales of biotechnology products, which stood at over $165 billion in revenue in 2013 are likely to go up to $337 billion by 2022 and comprise nearly 29% of the pharmaceutical market.
The above mentioned growth trends are expected to be offset by increased demand for generic drugs and biosimilars. WHO defines biosimilars as a biotherapeutic product, which is similar in terms of quality, safety, and efficacy to the already licensed reference biotherapeutic product. Given the high costs of biologic treatments, in the coming years, lower cost biosimilars should be instrumental in expanding access to populations who need these therapies but are unable to afford and have access to them. Analysts expect the worldwide biosimilars market to reach between $25 billion to $35 billion by 2020.
ACCESS AND
AFFORDABILITY OF BIOLOGICAL DRUGS
The cost for access to advanced biologic therapies are paid for by different channels across the globe. From reimbursed markets that have a well-defined insurance payment mechanism to government funded healthcare to cash based (out-of-pocket) markets, the access of patients to biologic treatments have been defined accordingly.
The developed markets success is led by the United States where reimbursement is widely available through private insurance or Medicare (Federal health insurance program for people who are 65 or older and certain others) followed by the EU. Even in the developed markets, access to biologics is not uniform. Often, patients struggle to cope up with the cost of continued therapy. In emerging markets, biologics penetration has been sub-optimal, given the varied nature of payment mechanisms for drug coverage. Governments of emerging market countries are trending towards adoption of universal healthcare to promote well-being of their citizens and reduce out-of-pocket costs. Drugs provided may include biologics like human insulin, which are available at competitive prices but seldom include expensive drugs to treat cancer and chronic inflammatory conditions. Hence, access to biologics by patients might be severely limited in these markets as governments are unable to afford higher priced branded biologic therapies.
BIOSIMILARS LANDSCAPE
Biologics development is long, complex and expensive resulting in patients and payers buying drugs at a very high cost.. This has resulted in a large unmet need for more affordable alternatives in form of biosimilars to be made available to patients in different parts of the world. To negate the effects of high pricing of drugs, we have seen an increase in biosimilar development activity globally. Developed markets have been a focus area for most biologics manufacturers. While emerging markets may not have attracted the level of attention the developed markets have incurred in biosimilar environment, these markets are poised to drive long term growth. Companies would require specific strategies to be successful in this segment. The key to success will vary based on the market chosen. Although each country’s environment is unique, there are similarities in trends across the developed and emerging markets. Given the need for significant investments of both capital and time required for biosimilar development, companies need to build the right conditions for success to be able to a get a fair return on those investments.
UNSECURED LOANS:
|
Unsecured Loan |
31.03.2017 INR In Million |
31.03.2016 INR In Million |
|
LONG-TERM
BORROWINGS |
|
|
|
Deferred sales tax liability |
0.000 |
65.000 |
|
Other loans and
advances |
|
|
|
NMITLI - CSIR Loan |
1.000 |
1.000 |
|
Financial assistance from DSIR |
3.000 |
6.000 |
|
Financial assistance from DST |
35.000 |
42.000 |
|
Less: Amount disclosed under the head other current financial liabilities |
(11.000) |
(75.000) |
|
|
|
|
|
SHORT-TERM
BORROWINGS |
|
|
|
From
banks/financial institutions |
|
|
|
Packing credit foreign currency loan |
0.000 |
2253.000 |
|
Total |
28.000 |
2227.000 |
INDEX OF CHARGE:
|
S No |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Amount |
Address |
|
1 |
G19690999 |
100057799 |
Citi Bank N.A. |
26/09/2016 |
1330000000.0 |
3rd Floor, Canberra BlockUB City, 24 Vittal Mallya Road, Bengaluru – 560001, India |
|
2 |
B18143230 |
10300393 |
Department of Biotechnology |
29/06/2011 |
44267000.0 |
6-8th Floor, Block No. 2CGO Complex, New Delhi – 110003, India |
|
3 |
B01390137 |
10255822 |
Department Of Biotechnology |
12/11/2010 |
57081000.0 |
6-8th Floor, Block No. 2cgo Complex, Lodhi Road, New Delhi – 110003, India |
|
4 |
A11661360 |
10060347 |
State Bank of India |
17/02/2007 |
650000000.0 |
Overseas Branch, No. 65, St. Marks Road, Bangalore – 560001, India |
|
5 |
A11660974 |
10059940 |
State Bank of India |
17/02/2007 |
650000000.0 |
Overseas Branch, No. 65, St. Marks Road, Bangalore – 560001, India |
|
6 |
A90645920 |
80022593 |
The Hongkong and Shanghai Banking Corporation Limited |
28/05/2004 |
1773500000.0 |
7 M. G. Road, Bangalore – 560001, Karnataka, India |
CONTINGENT
LIABILITIES:
|
PARTICULARS |
31.03.2017 (INR in million) |
31.03.2016 (INR in million) |
|
Claims against the Company not acknowledged as debt |
5272.000 |
5197.000 |
|
Direct taxation |
4304.000 |
4132.000 |
|
Indirect taxation (includes matters pertaining to disputes on central excise, custom duty and service tax) |
575.000 |
668.000 |
|
Other litigations |
393.000 |
397.000 |
|
The Group is involved in taxation and other disputes, lawsuits, proceedings etc. including patent and Commercial matters that arise from time to time in the ordinary course of business. Management is of the view that above claims are not tenable and will not have any material adverse effect on the Group’s financial position and results of operations. |
|
|
|
Guarantees |
|
|
|
Corporate guarantees given to Central Excise Department |
648.000 |
648.000 |
|
Guarantees given by banks on behalf of the Group for contractual obligations of the Group |
20.000 |
60.000 |
STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017
(INR In Million)
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
INCOME |
|
|
|
|
Revenue from operations |
5921.000 |
6047.000 |
17774.000 |
|
Other Income |
374.000 |
457.000 |
939.000 |
|
Total Income |
6295.000 |
6504.000 |
18713.000 |
|
|
|
|
|
|
EXPENSES |
|
|
|
|
Cost of materials and packing
material consumed |
2535.000 |
1922.000 |
6952.000 |
|
Purchase of traded goods |
212.000 |
240.000 |
623.000 |
|
Changes in inventories of finished
goods and work-in-progress |
(233.000) |
556.000 |
95.000 |
|
Excise Duty |
0.000 |
0.000 |
63.000 |
|
Employee benefits expense |
1043.000 |
964.000 |
2968.000 |
|
Finance costs |
1.000 |
2.000 |
12.000 |
|
Depreciation and Amortization
expenses |
332.000 |
334.000 |
1038.000 |
|
Other Expenditure |
1839.000 |
1645.000 |
4813.000 |
|
Total |
5729.000 |
5663.000 |
16564.000 |
|
Less: Recovery of cost from
co-development partners |
(34.000) |
(9.000) |
(43.000) |
|
Total Expenses |
5695.000 |
5654.000 |
16521.000 |
|
Profit before tax and exceptional item |
600.000 |
850.000 |
2192.000 |
|
Exceptional item |
0.000 |
0.000 |
0.000 |
|
Profit before tax |
600.000 |
850.000 |
2192.000 |
|
Tax expenses |
163.000 |
166.000 |
526.000 |
|
Profit for the period/year |
437.000 |
684.000 |
1666.000 |
|
Other comprehensive income |
|
|
|
|
Item that will not be
reclassified to profit or loss |
(6.000) |
(7.000) |
(20.000) |
|
Income tax relating to item that
will not be reclassified to profit or loss |
0.000 |
0.000 |
0.000 |
|
Item that will not be
reclassified to profit or loss |
26.000 |
(44.000) |
(29.000) |
|
Income tax relating to item
that will not be reclassified to profit or loss |
(9.000) |
15.000 |
10.000 |
|
Other comprehensive income, net of taxes |
11.000 |
(36.000) |
(39.000) |
|
Total comprehensive income for the period |
448.000 |
648.000 |
1627.000 |
|
Paid-up Equity Share Capital
(Face value INR 5/- per share) |
3000.000 |
3000.000 |
3000.000 |
|
Reserves (excluding
Revaluation Reserve) |
|
|
|
|
Earnings per Share (EPS) - INR |
|
|
|
|
Basic |
0.74 |
1.16 |
2.83 |
|
Diluted |
0.74 |
1.15 |
2.81 |
Note :
1. The unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2017 in respect of Biocon Limited (‘the Company’) have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on January 24, 2018. The above results have been subjected to limited review by the statutory auditors of the Company. The reports of the statutory auditors are unqualified.
2. These financial results have been prepared in accordance with Indian
Accounting Standards (‘Ind AS’) prescribed under section 133 of the Companies
Act, 2013 read with the relevant rules thereunder and in terms of Regulation 33
of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
and SEBI Circular dated July 5, 2016.
3. The consolidated financial results include the financial results of the
parent company Biocon Limited and the financial results of the following
subsidiaries:
·
Syngene International Limited (‘Syngene’)
· Biocon Research Limited
· Biocon Pharma Limited
· Biocon Academy
· Biocon SA
· Biocon SDN. BHD
· Biocon FZ LLC
· Biocon Biologics Limited
· Biocon Pharma Inc.
· Biocon Biologics India Limited
· Biocon Healthcare SDN. BHD
· Syngene USA Inc.
In addition to the above, the consolidated financial results also include the
financial results in respect of Biocon India Limited Employee Welfare Trust and
Syngene Employees Welfare Trust. The Company has also accounted for its share
of interest in the joint venture i.e. NeoBiocon FZ-LLC and share of investment
in the associate i.e. Iatrica Inc., if any under the equity method. Biocon
Limited, its subsidiaries, associate and a joint venture are collectively
referred to as ‘the Group’.
4. Pursuant to a fire incident on December 12, 2016 at Syngene, certain fixed
assets, inventory and other contents in one of the buildings were damaged.
Syngene lodged an estimate of loss with the insurance company and the survey is
currently ongoing. Syngene recorded a loss of Rs. 795 million arising from such
incident during the year ended March 31, 2017. During the quarter and nine
months ended December 31, 2017, Syngene has additionally written off net book
value of assets aggregating to INR Nil and INR 47 million respectively. Syngene
also recognized a minimum insurance claim receivable for equivalent amounts in
the respective periods. The aforementioned loss and the corresponding credit
arising from insurance claim receivable has been presented on a net basis (Nil)
under Exceptional items in these financial results.
In addition, the Group is in the process of determining its claim for Business Interruption and has accordingly not recorded any claim arising therefrom at this stage.
5. Segment Reporting in Consolidated financial results: Based on the
"management approach" as defined in Ind AS 108-Operating Segments,
the Chief Operating Decision Marker evaluates the Group's performance and
allocates resources based on an analysis of various performance indicators by
business segments. Accordingly, information has been presented along these business
segments. The accounting principles used in the preparation of these financial
results are consistently applied to record revenue and expenditure in
individual segments.
6. The Company has allotted 400,000,000 equity shares of INR 5/- each fully paid
up as bonus shares on June 19, 2017 in the ratio of 2:1 (Two equity shares of
INR 5/- each for every one equity share of INR 5/- each held in the Company as
on the record date i.e., June 17, 2017) by capitalisation of securities premium
account. In accordance with Ind AS 33, Earnings per share, the earnings per
share data has been adjusted to give effect to the bonus issue for all periods
presented.
7. Prior period/ year figures have been reclassified wherever required to
conform to the classification of the current period/ year.
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Computer
·
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 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
|
INR |
|
US Dollar |
1 |
INR 65.06 |
|
|
1 |
INR 92.06 |
|
Euro |
1 |
INR 80.37 |
INFORMATION DETAILS
|
Information Gathered
by : |
SWT |
|
|
|
|
Analysis Done by
: |
PSD |
|
|
|
|
Report Prepared
by : |
JYTK |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.
·