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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

507193

Report Date :

04.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

ALKEM LABORATORIES LIMITED (w.e.f. 21.08.2001)

 

 

Formerly Known As :

ALKEM LABORATORIES PRIVATE LIMITED

 

 

Registered Office :

Alkem House, Devashish, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra

Tel. No.:

91-22-39829999

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

08.08.1973

 

 

Com. Reg. No.:

11-174201

 

 

Capital Investment / Paid-up Capital :

INR 239.100 Million

 

 

CIN No.:

[Company Identification No.]

L00305MH1973PLC174201

 

 

IEC No.:

[Import-Export Code No.]

0388161442

 

 

GSTN :

[Goods & Service Tax Registration No.]

27AABCA9521E1ZX

 

 

TIN/CST No.:

27580399269

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AABCA9521E

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products. (Registered Activity)

 

 

No. of Employees :

11958 (Approximately)

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Status :

Excellent 

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exists

 

 

Comments :

Subject was incorporated in the year 1973 and is based in Mumbai, Maharashtra. The company is among the top 10 players in India’s formulations market. It is present in the therapeutic segments, including antibiotics, NSAIDs, gastroenterology, and antioxidants.


The company is also present in chronic segments such as neuropsychiatry, cardiovascular, and oncology. It exports to the US, countries in Asia-Pacific region, Latin America, Africa, and the Commonwealth of Independent States.

It is a manufacturer of Pharmaceuticals Ingredients, Generic, Formulations and Nutraceuticals products.



For the financial year 2017, the company has reported decent growth of 18.15% in its revenue as compared to its previous year and maintained fair profitability margin during the year at 18.92% under review.


The robust financial profile of the company marked by healthy networth base and satisfactory liquidity position along with strong debt coverage indicators due to low debt balance sheet profile.


The company has decent earnings per share (EPS) of INR 73.86 against the face value of INR 10.


Rating also derives strength from Alkem established position in the formulations market in India marked by its well established track record of business operations and extensive industry experience of promoter’s in Pharmaceutical segment.

The company has its share price trading at around INR 2009.15 against the Face Value (FV) of INR. 02 on BSE as on 3rd May, 2018.


However, rating strengths are partially offset by company’s considerable revenue dependence on the acute therapeutic segment along with vulnerability of its operating margins to volatility in raw material prices and working capital intensive operations.


Business is active. Payment seems to be regular.


In view of aforesaid, the company can be considered good for business dealings at usual trade terms and conditions.

 

NOTES :

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

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long Term = AA+

Rating Explanation

High degree of safety and very low credit risk

Date

24.08.2017

 

Rating Agency Name

CRISIL

Rating

Short Term = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk

Date

24.08.2017

 

 

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 31-03-2018.

 

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 04.05.2018.

 

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 DECLINED

 

Management non-cooperative (Tel No.:91-22-39829999)

 

LOCATIONS

 

Registered / Corporate Office / Head Office :

Alkem House, Devashish, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India 

Tel. No.:

91-22-39829999

Fax No.:

91-22-24862789/ 24927190/ 24952955

E-Mail :

alkemlab@giasbm01.vsnl.net.in 

alkemlab@vsnl.com

alkempatna@alkem.com

investors@alkem.com

contact@alkem.com

manishnarang@alkem.com

Website :

www.alkemlabs.com

Location:

Owned

 

 

Factory 1 :

N. H. No. 8, Village Naugama, Jhagadia, District – Bharuch, Gujarat, India

 

 

Factory 2 :

333/1, Kachigam, Daman, India

 

 

Factory 3:

167/2, Amaliya, Dabhel, Daman, India  

 

 

Factory 4:

289/290, GIDC, Ankleshwar , District – Bharuch, Gujarat , India 

 

 

Factory 5:

167/1, Amaliya, Dabhel, Daman, India 

 

 

Factory 6:

Units 1 & 2 at Purana Barrier, Village Thane – Baddi, Th- Nalagarh, District – Solan, Himachal Pradesh, India

 

 

Factory 7:

Central Pendam Block Dugailaka, Kumrek, Rangpo, East Sikkim – 737132, India

 

 

Factory 8:

C 6/1, MIDC Industrial Estate, Taloja, District Raigad, Maharashtra, India

 

 

Factory 9:

Samardung, Karek Block, PO-Namthang, Dist-South Sikkim-737137, India

 

 

R & D Centers 1 :

C 17/7, MIDC Industries Estate, Taloja, District-Raigad, Maharashtra, India 

 

 

R & D Centers 2 :

473-D2, 13th Cross, IV Phase, Peenya Industrial Area, Bangalore, Karnataka, India

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Dhananjay Kumar Singh

Designation :

Managing Director

Address :

Flat No 16, 16th Floor, Vasudha Apartment, Century Bazar, B Worlikar Chowk, Mumbai - 400025, Maharashtra, India

Date of Birth/Age :

29.07.1962

Date of Appointment :

25.10.1988

DIN No.:

00739153

 

 

Name :

Mr. Sandeep Singh

Designation :

Managing Director

Address :

403 404, Richoux Society Jn of St Joseph Road and Kantw Bandra (West), Mumbai - 400050, Maharashtra, India

Date of Appointment :

09.08.2013

DIN No.:

01277984

 

 

Name :

Mr. Basudeo Narayan Singh

Designation :

Whole-time Director

Address :

Budha Colony, Boring Canal Road, Patna – 800001, Bihar, India

Date of Birth/Age :

20.11.1940

Date of Appointment :

08.08.1973

PAN No.:

AKZPS2803A

DIN No.:

00760310

 

 

Name :

Mr. Balmiki Prasad Singh

Designation :

Whole-time Director

Address :

1st Floor, Room No 101, West More II, Pochkhawala Road, Mumbai - 400018, Maharashtra, India

Date of Birth/Age :

26.12.1954

Date of Appointment :

01.04.2010

PAN No.:

AMMPS2252G

DIN No.:

00739856

 

 

Name :

Mr. Mritunjay Kumar Singh

Designation :

Whole-time Director

Address :

3/31, Suraiya Apartment, Sir Pochkhanwala Road, Worli, Mumbai - 400025, Maharashtra, India

Date of Birth/Age :

04.11.1963

Date of Appointment :

11.02.2008

DIN No.:

00881412

 

 

Name :

Ms. Sudha Ravi

Designation :

Director

Address :

704/A, 7th Floor, Joanna CHS, Manuel Gonsalves Road, Bandra (West), Mumbai - 400050, Maharashtra, India

Date of Appointment :

29.06.2015

DIN No.:

06764496

 

 

Name :

Ms. Sangeeta Kapiljit Singh

Designation :

Director

Address :

9-A, Harbour Heights, A-Building, N. A. Sawant Marg, Colaba, Mumbai - 400005, Maharashtra, India

Date of Appointment :

29.06.2015

DIN No.:

06920906

 

 

Name :

Mr. Akhouri Maheshwar Prasad

Designation :

Director

Address :

158, First Floor, Pataliputra Colony, Patna 800013, Bihar, India

Date of Appointment :

30.01.2015

DIN No.:

07066439

 

 

Name :

Dr. Dheeraj Sharma

Designation :

Director

Address :

Indian Institute of Management Rohtak M.D.U. Campus, Rohtak – 124001, Haryana, India

Date of Birth/Age :

30.01.2015

Date of Appointment :

26.05.2017

DIN No.:

07683375

 

 

Name :

Mr. Ranjal Laxmana Shenoy

Designation :

Director

Address :

A-2, Kamdar Park Co-Operative Housing Society Limited Agar Bazaar, Off Gokhale Road (N), Mumbai - 400028, Maharashtra, India

Date of Appointment :

20.02.2015

DIN No.:

00074761

 

 

Name :

Mr. Arun Kumar Purwar

Designation :

Director

Address :

C - 2303/4, Floor - 23, Ashok Tower, 63/7-4, Dr. SS Rao Road, Parel, Mumbai - 400012, Maharashtra, India

Date of Appointment :

16.03.2015

DIN No.:

00026383

 

 

Name :

Samprada Singh

Designation :

Director

Address :

Budha Colony, Boring Canal Road, Patna – 800001, Bihar, India

Date of Birth/Age :

02.05.1930

Date of Appointment :

08.08.1973

DIN No.:

00760279

 

 

KEY EXECUTIVES

 

Name :

Mr. Manish Abnashi Lal Narang

Designation :

Company Secretary

Address :

1/A/1103, Dreams, LBS Marg, Bhandup (West), Mumbai – 400078, Maharashtra, India

Date of Birth/Age :

31.08.1970

Date of Appointment :

16.12.2006

PAN No.:

AAHPN6263D

 

Name :

Mr. Rajesh Matasevak Dubey

Designation :

Chief Finance Officer

Address :

Flat No-603-B, 6th Floor, Shivam-I, CHS, Raheja Complex, Near Times of India, Malad (East), Mumbai - 400097, Maharashtra, India

Date of Appointment :

01.08.2014

PAN No.:

AAHPD0258Q

 

SHAREHOLDING PATTERN

 

AS March, 2018

 

Category of shareholder

Total nos. shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a %

(A) Promoter & Promoter Group

78743333

65.86

(B) Public

40821667

34.14

Grand Total

119565000

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

Total nos. 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

78743333

65.86

Sarandhar Singh - *Shares held on behalf of Samprada & Nanhamati Singh Family Trust (“Trust”). The shares were acquired by the Trust pursuant to the e

25205800

21.08

Basudeo Narain Singh

8586100

7.18

Mritunjay Kumar Singh

7511875

6.28

Dhananjay Kumar Singh

7466260

6.24

Madhurima Singh

2974250

2.49

Seema Singh

2937740

2.46

Archana Singh

2394050

2.00

Samprada Singh

1577190

1.32

Meghna Singh

1204150

1.01

Aniruddha Singh

1195779

1.00

Divya Singh

1195724

1.00

Shrey Shree Anant Singh

1195650

1.00

Samprada Singh HUF

150800

0.13

Sandeep Singh

108867

0.09

Sarandhar Singh

79800

0.07

Sarvesh Singh

79800

0.07

Srinivas Singh

79800

0.07

Balmiki Prasad Singh

71595

0.06

Satish Kumar Singh

21444

0.02

Inderjit Kaur Arora

7800

0.01

Annapurna Singh

1

0.00

Manju Singh

1

0.00

Premlata Singh

1

0.00

Jayanti Sinha

7138220

5.97

Nawal Kishore Singh

4311060

3.61

Lalan Kumar Singh

2711538

2.27

Raj Kumar Singh

538038

0.45

Sub Total A1

78743333

65.86

A2) Foreign

0.00

A=A1+A2

78743333

65.86

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

Total no. shares held

Shareholding % calculated as per SCRR, 1957 As a %

B1) Institutions

0.00

Mutual Funds/

3465569

2.90

Alternate Investment Funds

392122

0.33

Foreign Portfolio Investors

4308479

3.60

Financial Institutions/ Banks

106253

0.09

Sub Total B1

8272423

6.92

B2) Central Government/ State Government(s)/ President of India

0.00

B3) Non-Institutions

0.00

Individual share capital upto INR 0.200 million

2560281

2.14

Individual share capital in excess of INR 0.200 million

27830026

23.28

Alok Kumar

1408950

1.18

Ashok Kumar

1403950

1.17

Deepak Kumar Singh

3428352

2.87

Kishor Kumar Singh

3423312

2.86

Rajeev Ranjan

3040342

2.54

Rajesh Kumar

3305535

2.76

Tushar Kumar - Shares held on behalf of Prasid Uno Family Trust

7533360

6.30

Any Other (specify)

2158937

1.81

Trusts

2867

0.00

Foreign Nationals

246

0.00

HUF

183045

0.15

Non-Resident Indian (NRI)

118142

0.10

Clearing Members

25965

0.02

Bodies Corporate

1828672

1.53

Sub Total B3

32549244

27.22

B=B1+B2+B3

40821667

34.14

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products. (Registered Activity)

 

 

Products/Service :

NIC Code No.

Products/Service Description

210

Pharmaceutical

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

11958 (Approximately)

 

 

Bankers :

 
  • The Saraswat Co-Operative Bank Limited, 266, Kanchwala Building, Dr. Annie Beasant, Opposite Old Passport Office, Worli, Mumbai – 400030, Maharashtra, India

 

  • Kotak Mahindra Bank Limited, 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra, India   

 

  • Citi Bank N.A, First International Financial Centre, 9th Floor, Plot No. C-54 & 55, BKC, Bandra (East), Mumbai – 400051, Maharashtra, India

 

 

Facilities :

SECURED LOAN

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Short-term borrowings

 

 

Loans repayable on demand from Banks

1080.000

1510.600

Total

1080.000

1510.600

 

SHORT TERM BORROWING

 

Loans repayable on demand from Banks include:

 

1. Cash Credit from bank for INR Nil (31 March 2016 INR 0.100 Million; 1 April 2015 INR 620.900 Million) and Packing Credit Foreign Currency Loan for INR Nil (31 March 2016 INR Nil; 1 April 2015 INR 312.5) are secured by hypothecation of inventories and trade receivables.

 

2. Overdrafts from Banks INR 1080.000 Million (31 March 2016 INR 245.700 Million; 1 April 2015 INR 7336.400 Million) are secured against pledge of Fixed Deposits with the banks.

 

3. Cash Credit and Overdraft Facilities carry a rate of Interest ranging between 8.50% to 10.50% p.a., computed on a monthly basis on the actual amount utilized, and are repayable on demand.

 

Auditors :

 

Name :

BSR and Company LLP

Chartered Accountants

Address :

5th Floor, Lodha Excelus, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai – 400011, Maharashtra, India

Tel. No.:

91-22-43455300

Fax No.:

91-22-43455399

E-Mail :

AAAFB9852F

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiaries and Step down Subsidiaries :

·         Alkem Laboratories (NIG) Limited

·         Alkem Laboratories (PTY) Limited

·         Alkem Pharma GmbH

·         Alkem Laboratories Corporation

·         S and B Holdings B.V.

·         Pharmacor Pty Limited

·         ThePharmaNetwork, LLC (Wholly owned Subsidiary of S&B Holdings B.V)

·         Ascend Laboratories SDN BHD.

·         Ascend Laboratories SPA

·         Enzene Biosciences Limited

·         Alkem Laboratories Korea INC

·         Pharmacor Limited

·         S & B Pharma Inc.

·         The PharmaNetwork, LLP

·         Ascend Laboratories, LLC ( Wholly owned by ThePharmanetwork, LLC)

·         Alkem Real Estate LLP (up to 11 September 2015)

·         Ascend Laboratories (UK) Limited

·         Cachet Pharmaceuticals Private Limited

·         Indchemie Health Specialities Private Limited

·         Avenue Venture Real Estate Fund

 

 

Joint Ventures :

·         India Golf Assets Private Limited

·         BBCL Srishti Homes LLP

·         Casa Grande Realtors LLP

·         Enerrgia Skyi Ventures LLP

·         Rohan Procon LLP

·         Vastushodh Infrastructures LLP

·         Casa Grande Shelter LLP

 

 

Entities in which Key Management Personnel’s and their relatives have significant influence and with whom transactions have taken place during the year (“Entities”):

·         Galpha Laboratories Limited

·         Samprada Singh (HUF)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250000000

Equity Shares

INR 2/- each

INR 500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

119565000

Equity Shares

INR 2/- each

INR 239.100 Million

 

 

 

 

 

Reconciliation of the number of equity shares outstanding at the beginning and at the end of the period

 

Particulars

As at 31 March 2017

 

Number

INR in Million

At the commencement of the year

119565000

239.100

At the end of the year

119565000

239.100

 

 

Rights, preferences and restrictions attached to Equity Shares

 

The Company has issued one class of equity shares with voting rights having a par value of INR 2/- per share. Each shareholder is eligible for one vote per share held.

 

On winding up of the Company, the holders of equity shares will be entitled to receive residual assets of the Company remaining after distribution of all preferential amounts in proportion to the number of equity shares held by the shareholders.

 

Details of shareholders holding more than 5% shares in the Company

 

Name of the shareholders

As at 31 March 2017

Number

Percentage of holding

Equity Shares of INR 2 Each (Previous Year INR 2 Each) held by

 

 

Samprada & Nanhamati Singh Family Trust

25205800

21.08%

Mr. Basudeo Narain Singh

8479950

7.09%

Mrs. Jayanti Sinha

7138220

5.97%

Mr. Nawal Kishore Singh

4311060

3.61%

Mr. Balmiki Prasad Singh

71595

0.06%

 

 

Aggregate Number of Bonus Shares Issued for the consideration other than cash during the period of five years immediately preceeding the reporting date

 

During the year ended 31 March 2015, 59782500 Equity Shares of INR 2 Each fully paid up have been allotted as Bonus Shares by capitalization of General Reserves.

 

 

FINANCIAL DATA

[all figures are in 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

239.100

239.100

239.100

(b) Reserves & Surplus

43687.400

35755.900

30771.100

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

(3) Deferred Government Grant

0.000

0.000

35.800

Total Shareholders’ Funds (1) + (2)

43926.500

35995.000

31046.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

281.300

(b) Deferred tax liabilities (Net)

0.000

0.000

685.100

(c) Other long term liabilities

112.900

26.500

0.000

(d) long-term provisions

810.600

659.700

565.100

Total Non-current Liabilities (3)

923.500

686.200

1531.500

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

3682.300

3506.200

10462.800

(b) Trade payables

6852.400

4665.000

3465.300

(c) Other current liabilities

2569.400

2543.600

1435.900

(d) Short-term provisions

1029.400

828.100

666.500

Total Current Liabilities (4)

14133.500

11542.900

16030.500

 

 

 

 

TOTAL

58983.500

48224.100

48608.000

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

11032.100

8470.700

8382.100

(ii) Intangible Assets

224.200

276.100

322.500

(iii) Capital work-in-progress

2184.400

1465.500

958.900

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

12412.300

8847.500

10106.500

(c) Deferred tax assets (net)

5910.000

4093.900

0.000

(d)  Long-term Loan and Advances

404.400

1386.400

6463.900

(e) Other Non-current assets

4287.500

2890.000

4601.200

Total Non-Current Assets

36454.900

27430.100

30835.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

2764.100

2729.200

599.100

(b) Inventories

8587.600

5900.300

5482.400

(c) Trade receivables

6333.200

4804.400

3750.100

(d) Cash and cash equivalents

1990.600

5240.300

6333.200

(e) Short-term loans and advances

144.900

82.000

1194.700

(f) Other current assets

2708.200

2037.800

413.400

Total Current Assets

22528.600

20794.000

17772.900

 

 

 

 

TOTAL

58983.500

48224.100

48608.000

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

46684.500

39510.400

31375.600

 

Other Income

1166.000

2512.800

1821.300

 

TOTAL

47850.500

42023.200

33196.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

12322.600

9694.200

8541.100

 

Purchases of Stock-in-Trade

7750.400

6119.400

5563.500

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(2119.200)

(340.600)

(116.200)

 

Employees benefits expense

7222.500

6266.300

5605.800

 

Other expenses

12728.300

10573.400

8326.300

 

TOTAL

37904.600

32312.700

27920.500

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

9945.900

9710.500

5276.400

 

 

 

 

 

Less

FINANCIAL EXPENSES

236.800

586.700

726.300

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

9709.100

9123.800

4550.100

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

764.800

735.300

596.800

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

8944.300

8388.500

3953.300

 

 

 

 

 

Less

TAX

112.700

1386.600

276.400

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

8831.600

7001.900

3676.900

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

35755.900

30581.000

8275.300

 

 

 

 

 

 

Other comprehensive income

(36.700)

0.500

0.000

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

Interim Dividend

717.400

1518.500

478.300

 

Dividend Distribution Tax

146.000

309.100

88.500

 

Total

863.400

1827.600

566.800

 

 

 

 

 

 

Balance Carried to the B/S

43687.400

35755.800

11385.400

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

8410.000

6563.300

3516.100

 

TOTAL EARNINGS

8410.000

6563.300

3516.100

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

 

 

 

Basic

73.86

58.56

30.75

 

Diluted

73.86

58.56

30.75

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

0.000

296.500

281.300

Cash generated from operations

7012.500

7768.900

3471.900

Net cash flow from operating activity

4964.800

6298.200

3471.900

 

 

QUARTERLY RESULTS

 

Particulars

 

30.06.2017

1st Quarter

30.09.2017

2nd Quarter

31.12.2017

2nd Quarter

 

(Unaudited)

(Unaudited)

(Unaudited)

Net Sales

11271.500

15680.200

14225.200

Total Expenditure

9757.200

11255.600

11090.500

PBIDT (Excl OI)

1514.300

4424.600

3134.700

Other Income

237.700

203.000

226.900

Operating Profit

1752.000

4627.600

3361.600

Interest

75.300

113.000

71.800

Exceptional Items

NA

NA

NA

PBDT

1676.700

4514.600

3289.800

Depreciation

234.200

257.500

283.000

Profit Before Tax

1442.500

4257.100

3006.800

Tax

321.300

949.500

877.100

Provisions and contingencies

NA

NA

NA

Profit After Tax

1121.200

3307.600

2129.700

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

1121.200

3307.600

2129.700

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

49.52

44.38

43.63

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

7.37

8.22

8.37

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

124.60

107.67

89.68

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

1.16

1.65

0.96

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.74

0.95

0.55

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.24

0.25

0.34

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

0.08

0.11

0.36

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

0.32

0.32

0.52

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.31

0.28

0.31

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

42.00

16.55

7.26

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

18.92

17.72

11.72

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

14.97

14.52

7.56

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

20.11

19.45

11.84

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.59

1.80

1.11

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.99

1.29

0.77

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.74

0.75

0.64

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

15.40

15.90

46.11

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.59

1.80

1.11

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 2.00/-

Market Value

INR 2009.15/-

 

 

FINANCIAL ANALYSIS

[all figures are in 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

239.100

239.100

239.100

Reserves & Surplus

30771.100

35755.900

43687.400

Deferred Government Grant

35.800

0.000

0.000

Net worth

31046.000

35995.000

43926.500

 

 

 

 

Long-term borrowings

281.300

0.000

0.000

Short term borrowings

10462.800

3506.200

3682.300

Current Maturities of Long term debt

281.300

296.500

0.000

Total borrowings

11025.400

3802.700

3682.300

Debt/Equity ratio

0.356

0.106

0.084

 

 

 

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

31375.600

39510.400

46684.500

 

 

25.927

18.157

 

 

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

31375.600

39510.400

46684.500

Profit / (Loss)

3676.900

7001.900

8831.600

 

11.72%

17.72%

18.92%

 

 

LEGAL CASES

 

LEGAL CASE FILE ATTACHED

 

ABRIDGED BALANCE SHEET (CONSOLIDATED)

 

SOURCES OF FUNDS

 

31.03.2017

31.03.2016

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

239.100

239.100

(b) Reserves & Surplus

 

44437.300

36680.500

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

(3) Non-controlling interest

 

1152.300

950.200

Total Shareholders’ Funds (1) + (2)

 

45828.700

37869.800

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

2088.500

1234.600

(b) Deferred tax liabilities (Net)

 

4.700

10.100

(c) Other long term liabilities

 

112.900

26.500

(d) long-term provisions

 

1021.700

829.600

Total Non-current Liabilities (3)

 

3227.800

2100.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

4450.800

4641.700

(b) Trade payables

 

7413.700

5804.800

(c) Other current liabilities

 

3515.100

3882.600

(d) Short-term provisions

 

1244.400

1046.900

Total Current Liabilities (4)

 

16624.000

15376.000

 

 

 

 

TOTAL

 

65680.500

55346.600

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

13944.500

10310.300

(ii) Intangible Assets

 

4025.900

4185.100

(iii) Capital work-in-progress

 

2992.600

1724.200

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

2750.400

2343.900

(c) Deferred tax assets (net)

 

6962.700

5162.300

(d)  Long-term Loan and Advances

 

91.500

87.200

(e) Other Non-current assets

 

5905.700

3846.600

Total Non-Current Assets

 

36673.300

27659.600

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

2779.700

2741.800

(b) Inventories

 

12060.000

9093.700

(c) Trade receivables

 

7136.400

5675.100

(d) Cash and cash equivalents

 

3992.600

7809.000

(e) Short-term loans and advances

 

153.500

98.500

(f) Other current assets

 

2885.000

2268.900

Total Current Assets

 

29007.200

27687.000

 

 

 

 

TOTAL

 

65680.500

55346.600

 

 

PROFIT & LOSS ACCOUNT (CONSOLIDATED)

 

 

PARTICULARS

 

31.03.2017

31.03.2016

 

SALES

 

 

 

 

Income

 

58525.000

50479.300

 

Other Income

 

1120.100

2397.100

 

TOTAL

 

59645.100

52876.400

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

 

14493.200

11733.300

 

Purchases of Stock-in-Trade

 

10618.100

8949.900

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

 

(2896.000)

(1044.400)

 

Employees benefits expense

 

10038.500

8610.800

 

Other expenses

 

16281.700

13697.200

 

TOTAL

 

48535.500

41946.800

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

 

11109.600

10929.600

 

 

 

 

 

Less

FINANCIAL EXPENSES

 

451.600

712.400

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

 

10658.000

10217.200

 

 

 

 

 

Less

DEPRECIATION/ AMORTISATION

 

1011.700

933.100

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

 

9646.300

9284.100

 

 

 

 

 

Less

TAX

 

599.600

1761.800

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

 

9046.700

7522.300

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

 

74.61

62.02

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

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

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

Changes in the Registered Office:

 

The Registered office was originally located at “Exhibition Road, Patna – 800 001, Bihar, India”. Their Company filed Company Petition No. 356(17)/ ERB/ 2007 before the Company Law Board, Eastern Region Bench at Kolkata for shifting the registered office of their company from the State of Bihar to the State of Maharashtra, as approved by a special resolution at its extra-ordinary general meeting held on January 29, 2007. 

 

GENERAL INFORMATION

 

The company was incorporated in 1973 under the provisions of Companies Act, 1956 of India, as a company with limited liability. The Company is domiciled in India with its registered office address being Alkem House, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, India. The Company is engaged in pharmaceutical business with global operations. The Company is engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.

 

OVERVIEW OF FINANCIAL PERFORMANCE

 

During the financial year ended 31st March, 2017, the Company’s total revenue including other income was INR 47850.500 million on standalone basis as against INR 42023.200 million achieved in the previous year, registering a growth of 13.87%.

 

The export turnover of the Company during the financial year 2016-17 was INR 7242.000 million as against INR 6472.300 million achieved in the previous year registering a growth of 11.89%.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Global Economy

 

Financial year 2017 did not usher in good tidings for the global economy. Global growth was sluggish and reflected a more subdued outlook following the June 2016 UK vote in favour of leaving the European Union (Brexit) and weaker-than expected growth in the United States. These developments exerted further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer (Source: IMF).

 

However, after a lacklustre performance in 2016, economic activity is expected to gather pace in 2017 and 2018, especially in emerging market and developing economies. Global growth is expected to rise from 3.1% in 2016 to 3.4% in 2017 and 3.6% in 2018. This is owing to a pick-up in global economic activity with a long-awaited cyclical recovery in investment, manufacturing and trade. However, projected outcomes may differ, depending on the impact of the prevailing downside risks and policy stance of the new US administration and its global ramifications.

 

Global growth is expected to be driven by improvements in emerging markets and developing economies. In emerging markets and developing economies, investment in human and physical capital would help reduce the unmet needs in skills and infrastructure thereby enhancing growth for the upcoming years.

 

Indian Economy

 

India continues to be one of the fastest growing major economies of the world. The year 2016-17 saw two major policy initiatives: the passage of the Constitutional amendment, paving the way for the implementation of the ‘game changing’ Goods and Services Tax (GST); and the action to demonetise the two highest denomination notes.

 

Despite the short-term hardships brought by the high denomination notes ban, India is projected to grow by 7.1% in financial year 2016-17 and is expected to further move up to around 7.4% in 2017-18. The country has positioned itself as one of the most vibrant emerging economy amongst major economies with a robust private consumption and significant reforms being implemented by the government.

 

Over the last few years, India has taken a host of economic reforms initiative, including the implementation of GST and liberalisation of the FDI regime, with a view to improve business climate and promote growth. The Government of India has also started several initiatives such as Make in India, Digital India, Skill India, Start-up India and so on to empower domestic manufacturing, create appropriate infrastructure and enhance digital literacy and talent pool to empower millions of people. Overall, India is poised for a long-term growth trajectory, powered by greater access to banking, technology adoption, urbanisation and other structural reforms.

 

Global Pharmaceutical Industry

 

The global medicine spending is forecasted to grow at a CAGR of 4-7% through 2016-21 to reach nearly US$ 1.5 trillion by 2021 on an invoice price basis. This is nearly US$ 370 billion higher than the 2016 estimated spending level. Most of the growth in the developed market will be driven by newer medicines / original brands, while on the other hand, pharmerging markets will continue to drive volume led growth fuelled by non-original (generic / off-patented) products and improved access to quality healthcare.

 

UNSECURED LOAN

 

Particular

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Short-term borrowings

 

 

Working Capital Loan from Banks

2602.300

1995.600

Total

2602.300

1995.600

Note:

 

SHORT TERM BORROWING

 

Working Capital Loan from banks comprises of Overdraft in INR of INR 73.200 Million (31 March 2016; INR 173.600 Million; 1 April 2015 INR 1099.400 Million) and Packing Credit in Foreign Currencies of INR 2529.100 Million (31 March 2016: INR 1822.000 Million; 1 April 2015: INR 1093.600 Million) and are repayable on demand.

 

Working Capital Loan from banks in Foreign Currency carries Interest rate in the range of 1.10% to 2.00% and those in Indian Rupees carries Interest rate in the range of 10% to 11% p.a.

 

 

INDEX OF CHARGES

 

SNO

SRN

CHARGE ID

CHARGE HOLDER NAME

DATE OF CREATION

DATE OF MODIFICATION

DATE OF SATISFACTION

AMOUNT

ADDRESS

1

G28845782

100064606

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

11/11/2016

-

-

900000000.0

RAMON HOUSE 169, BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI – 400020, MAHARASHTRA, INDIA

2

G10810547

100047965

THE SARASWAT CO-OPERATIVE BANK LIMITED

12/08/2016

-

-

1350000000.0

KANCHWALA BUILDING, DR. ANNIE BEASANT, OPPOSITE OLD PASSPORT OFFICE, WORLI, MUMBAI – 400030, MAHARASHTRA, INDIA

3

G39471198

10616168

KOTAK MAHINDRA BANK LIMITED

29/01/2016

28/02/2017

-

110000000.0

27 BKC, C 27, G BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI - 400051, MAHARASHTRA, INDIA

4

G46796827

10625146

THE SARASWAT CO-OPERATIVE BANK LIMITED

15/07/2015

26/05/2017

-

50000000.0

266, KANCHWALA BUILDING, DR. ANNIE BEASANT ROAD, OLD PASSPORT OFFICE, WORLI, MUMBAI - 400030, MAHARASHTRA, INDIA

5

C74066473

10578739

CITI BANK N.A.

02/06/2015

20/10/2015

-

3087000000.0

FIRST INTERNATIONAL FINANCIAL CENTRE, 9TH FLOOR, PLOT NO. C-54 AND 55, G- BLOCK, BKC, BANDRA (EAST), MUMBAI - 400051, MAHARASHTRA, INDIA

6

A25615204

10072610

MEMBER SECRETARY SINGLE WINDOW CLEARANCE AGENCY

12/09/2007

-

-

3000000.0

DEPARTMENT OF INDUSTRIES, BADDITEHSIL – NALAGARHSOLAN -173205, HIMACHAL PRADESH, INDIA

7

A88704135

90264437

STATE BANK OF INDIA

27/09/2005

08/07/2010

-

1750000000.0

INDUSTRIAL FINANCE BRANCH, SHIVSAGAR ESTATE, WORLI-(S), MUMBAI – 400018, MAHARASHTRA, INDIA

8

G28541498

10617310

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

29/01/2016

-

07/11/2016

900000000.0

RAMON HOUSE 169, BACKBAY RECLAMATION, H T PAREKH MARG, MUMBAI – 400020, MAHARASHTRA, INDIA

9

G24962326

10483471

DBS BANK LIMITED

06/03/2014

-

02/11/2016

901414059.0

UPPER DLF CAPITOL POINT, GR AND 1ST FLOOR, BABA KHARAK SINGH MARG, CONNAUGHT PLACE, NEW DELHI – 110001, INDIA

10

C80259484

10578225

DENA BANK

27/02/2015

-

22/02/2016

2000000000.0

MAHESHWARI UDYAN BRANCH, 467-A, VORA BHAVAN, MATUNGA, MUMBAI – 400019, MAHARASHTRA, INDIA

 

 

CONTINGENT LIABILITIES:

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Claims against the Company not acknowledged as debt

 

 

(i) Central Excise demand disputed in appeal :advances paid in dispute INR 41.500 Million (31 March 2016 INR 13.700 Million; 1 April 2015 INR 30.800 Million)

67.600

37.700

(ii) Sales Tax demand disputed in appeal :advances paid in dispute INR 38.000 Million (31 March 2016 :INR 78.700 Million; 1 April 2015: INR 3.500 Million)

152.400

482.100

(iii) Income Tax demand disputed in appeal :advances paid dispute in INR Nil (31 March 2016 INR Nil; 1 April 2015 INR Nil)

283.000

445.000

(iv) Other matters

 

 

a. In relation to purchase commitments- INR 968.100 Million* (31 March 2016 INR 968.100 Million; 1 April 2015 INR 968.100 Million)

2093.100

1429.300

b. Supply of Goods: INR 376.600 Million (31 March 2016 INR 461.200 Million; 1 April 2015 INR 717.400 Million)**

c. in relation to property- INR Nil (31 March 2016 INR Nil; 1 April 2015 INR 13.800 Million)

d. in relation to CCI - INR 746.300 Million (31 March 2016 INR Nil; 1 April 2015 INR Nil)

e. Alleged infringement of intellectual property - INR 2.100 Million (31 March 2016 INR Nil; 1 April 2015 INR Nil)”

2 Bonds/Debentures/Fixed Deposits pledged against loan taken by subsidiaries. The loan amount outstanding as on the balance sheet date is

2111.000

2183.400

3 Corporate Guarantee given in respect of credit facility sanctioned by bank in favour of subsidiary company aggregating to AUD 5.5 Million

272.700

0.000

 

Management considers that the excise duty, custom duty, sales tax and income tax demands received from the authorities are not tenable against the Company, and therefore no provision for these tax contingencies have been made.

 

* Claim from vendor in relation to compliance with contractual purchase commitment and alleged infringement of intellectual property

 

** Claim from customer in relation to product quality issues and packing norms in recipient country.

 

The Company has reviewed all its pending litigations and proceedings and has adequately provided for, where provisions are required and disclosed as contingent liabilities wherever applicable, in its financial statement. The Company does not expect the outcome of these proceedings to have materially adverse effect on its financial statements.

 

 

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULT FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

 

(INR in Million)

PARTICULARS

Quartered Ended

Six Months

31.12.2017

30.09.2017

31.12.2017

 

[Unaudited]

[Unaudited]

[Unaudited]

1. Income from Operations

 

 

 

Revenue from Operation

14225.200

15680.200

41349.900

Other Operating Income

226.900

203.000

667.600

Total income from operations (net)

14452.100

15883.200

42017.500

 

 

 

 

Expenses

 

 

 

Cost of materials consumed

3638.800

2339.600

9746.700

Purchases of stock-in trade

2739.800

1471.100

6051.200

Changes in inventories of finished goods. work-in-progress and stock in trade

(1288.900)

2045.100

164.200

Employee benefits expense

2232.700

2221.100

6420.800

Finance Cost

71.800

113.000

260.100

Depreciation and Amortization Expenses

283.000

257.500

774.700

Other Expenses

3758.100

3178.700

9893.400

Total expenses

11445.300

11626.100

33311.100

Profit/ (Loss) before exceptional Items

3006.800

4257.100

8706.400

Exceptional items

-

-

-

Profit/ (Loss) before tax

3006.800

4257.100

8706.400

Tax expenses

877.100

949.500

2147.900

Net Profit / (Loss) from the period after tax

2129.700

3307.600

6558.500

Other Comprehensive Income

 

 

 

Items that will not be reclassified to profit or loss

(6.200)

(6.200)

(18.600)

Income tax Relating to items that will not be reclassified to profit or loss

2.100

2.200

6.400

Total Other Comprehensive Income

(4.100)

(4.000)

(12.200)

Total Comprehensive income for the period 

2125.600

3303.600

6546.300

Paid up equity share capital (Face Value INR 2 each fully paid up)

239.100

239.1000

239.100

 

 

 

 

Earning per share of INR 2 each

 

 

 

Basic

17.81

27.66

54.85

Diluted

17.81

27.66

54.85

 

NOTES:

1.The above unaudited financial results of the Company were reviewed and recommended by the Audit Committee on 8 February 2018 and subsequently approved by the Board of Directors at its meeting held on 9 February 2018. The figures for the quarter and nine months ended 31 December 2017 have been subjected to limited review by the statutory auditors. The auditors have expressed an unmodified opinion in the limited review report for the quarter and nine months ended 31 December 2017. 


2. Financial results for the periods presented have been prepared in accordance with Indian Accounting standards ('Ind AS') notified by the Ministry of Corporate Affairs in consultation with the National Advisory Committee on Accounting Standards, under section 133 of the Companies Act, 2013 (‘Act’) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and the relevant provisions of the Act. 


3. The Company operates in one reportable business segment i.e. "Pharmaceuticals". 


4. Post implementation of Goods and Service Tax ("GST") with effect from 1 July 2017 and as per Ind AS 18, Revenue from operations is disclosed net of GST. Revenue from operations for the quarter and nine months ended 31 December 2016 and for the year ended 31 March 2017 included excise duty which is now subsumed under GST. Revenue from operations for the nine months ended 31 December 2017 includes excise duty up to 30 June 2017. Accordingly, revenue from operations for the quarter and nine months ended 31 December 2017 are not comparable with those of the previous periods presented. 


5. The Board of Directors in its meeting held on 9 February 2018 have declared an interim dividend of INR 6 (Rupees six only) per equity share of the face value of INR 2 each (300%). 


6. Previous periods' figures have been regrouped/reclassified, where necessary, to make them comparable with the figures for the current period.

 

FIXED ASSETS

 

·         Land

·         Building

·         Office building

·         Factory building

·         Building

·         Plant and machinery

·         Office equipments

·         Factory equipments

·         Computer equipments

·         Other equipments

·         Furniture and fixtures

·         Vehicles

·         Motor vehicles

·         Livestock

 

 

WEBSITE DETAILS

 

NEWS / PRESS RELEASE

 

ALKEM LABS GETS 14 USFDA OBSERVATIONS FOR TWO UNITS, SHARES FALL 11%

 

DATE:28.03.2018

 

Alkem Laboratories shares decline 11% after the company said the USFDA issued 14 observations for objectionable conditions at its manufacturing units

 

New Delhi: Alkem Laboratories Ltd on Wednesday said that the US Food and Drug Administration (USFDA) has pointed out 14 observations for objectionable conditions at its manufacturing units at Amaliya in Daman and St Louis in US following inspections.

 

At 2.44pm, Alkem Laboratories shares were trading 7.76% lower at Rs1,930 on BSE, while the Sensex was down 0.63% to 32,964.04 points. In intraday trade, shares tanked 11.26% to INR 1856.60.

 

The USFDA had conducted an inspection at the Daman unit from 19-27 March, Alkem Laboratories said in a regulatory filing. “Post the inspection, the company has received a Form 483 with 13 observations,” it added.

 

As per the USFDA, Form 483 notifies the company’s management of objectionable conditions based on observations made by its investigators about conditions or practices which would “indicate that any food, drug, device or cosmetic has been adulterated or is being prepared, packed, or held under conditions whereby it may become adulterated or rendered injurious to health”.

 

“The company shall put together a detailed response with adequate corrective and preventive measures to address the USFDA observations and the same in proposed to be filed within the timeline stipulated by the USFDA,” Alkem said.

 

The company further said the USFDA had also conducted an inspection at its manufacturing unit at St Louis from 12-15 March. In response to one Form 483 observation issued by the USFDA, it has submitted a detailed corrective and preventive action plan to the regulator within the stipulated timeline, Alkem said.

 

 

USFDA OBSERVATIONS: ‘MOSQUITOES, GNATS IN ALKEM PLANT; NO QUALITY CONTROL UNIT’

 

DATE:13.04.2018

 

An FDA Form 483 is issued to a company’s management at the conclusion of an inspection if investigators find violations of US drug laws.

 

A recent inspection of Alkem Laboratories Ltd’s drug facility at Daman by the United States Food and Drug Administration (USFDA) has revealed the presence of “flying insects… including mosquitoes and gnats” at the manufacturing unit. The drug regulator has also observed that the plant — owned by one of India’s largest pharma company — has “no quality control unit” at its facility.

 

Three USFDA investigators, who inspected the Daman facility from March 19 to March 27, observed that “buildings used in the manufacture, processing, packing or holding of drug products are not maintained in a clean and sanitary condition and free of infestation by rodents, birds, insects, and other vermin”. Alkem earned around 20 per cent of its total income from the United States in 2016-17.

 

Explaining the observation, the investigators stated in the Form 483: “Your firm failed to establish, implement, and monitor a pest control program and procedures inside quality control areas, such as, the stability laboratory, where samples are kept and the central and (other) laboratories where all samples are stored and analysed. Flying insects, including, but not limited to, mosquitoes and gnats, were found too numerous to count in the aforementioned areas.”

 

An FDA Form 483 is issued to a company’s management at the conclusion of an inspection if investigators find violations of US drug laws. Alkem was issued a Form 483 with total 13 adverse observations. The company did not respond to the queries sent by The Indian Express.

 

However, a senior Alkem executive told The Indian Express on condition of anonymity that “Every factory has a controlled area and an uncontrolled area. Controlled area is where we do all sensitive stuff such as manufacturing, testing etc and in such areas we can’t allow an external agent such as insects as it can contaminate the medicines. Uncontrolled area consists of storage area among other things. Mosquitoes and other insects were found in the uncontrolled area.”

 

The investigators also stated that the company did not “investigate fungal growth on the walls” of a particular area. This fungal growth was identified in a work order dated August 28, 2016. Moreover, the investigators found that employees who are engaged in manufacturing and processing of a drug lack the training and experience required to perform the assigned functions.

 

The first observation in the Form 483 reads: “There is no quality control unit”. The USFDA investigators explained: “Your firm’s QC (quality control) department deleted 2,101 files since March 1, 2018, on your network…According to your Assistant Vice President of QC, your firm does not have any written procedures addressing the deletion of files from your firm’s network. No investigations were initiated for the deletion of these files.”

 

The investigators added that company destroyed its logbooks that are not obsolete or outdated. They also noted that the company’s quality unit failed to “track, trend and investigate invalid analytical results for system suitability”. Moreover, they found that a logbook that contained such invalid data was destroyed.

 

The investigators also found that the drugs were distributed to United States four months before the OOS (out-of-specification) test results were out. According to the Alkem executive, “The testing results came in November. Their concern is how will you recall the product if its test fails. We have given them ample data that these products were just shipped to warehouses in US and not to the people. And those medicines are distributed only after the test results are out. So, there is no question of recall. In case our test results fail, we will destroy that batch in the warehouse. We will give them proof of all these things.”

 

 

 

 

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 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 66.66

UK Pound

1

INR 90.66

Euro

1

INR 80.00

 

                                                              

INFORMATION DETAILS

 

Information Gathered by :

GYT 

 

 

Analysis Done by :

VAR

 

 

Report Prepared by :

RKI 

 

 

SCORE FACTORS

 

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

 

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)

 

 

 

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.