MIRA
INFORM REPORT
|
Report Date : |
12TH
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
AMAR
REMEDIES LIMITED |
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Registered Office : |
207,
Roop Raj Building, 2ND Floor, SVP Road, Opera House, Mumbai –
400004 |
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Country : |
India |
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Financials (as on) : |
30.06.2005 |
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Date of Incorporation : |
18.04.1984 |
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Com. Reg. No.: |
11-32687 |
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CIN No.: [Company
Identification No.] |
U99999MH1984PTC032687 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA21298E |
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PAN No.: [Permanent
Account No.] |
AAACA3774G |
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Legal Form : |
It is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Company
is in engaged in as Manufacturer and Exporter of Amar Tooth Paste, Amar Balm,
Amar Get – Up and Ayurvedic Products.
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1000000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Slow
but Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. General financial position is satisfactory. Payments are reported
as slow but correct. However,
the company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office/Factory : |
207,
Roop Raj Building, 2ND Floor, SVP Road, Opera House, Mumbai –
400004 |
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Tel. No.: |
91-22-56340591 |
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Fax No.: |
91-22-23866625 |
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E-Mail : |
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Website : |
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Office
: |
Block
No 3, 2nd floor, Sane
Guruji Premises, 386,
S.V. Savarkar Marg, Opp.
Siddhivinayak Temple, Prabhadevi,
Mumbai - 400 025. Phone
91 22 3040 9100 Fax 91
22 3040 9120 / 21 |
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Factory
1 : |
375/14,
Kachigam, Hill
Industrial Estate, Zari Road, Daman
- 396 210 (U.T.). Phone
91 260 3096897, 91
93770 06618 / 75 TeleFax
91 260 2241125 463,
New G.I.D.C, Katargram,
Surat
- 395008, Gujarat. |
DIRECTORS
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Name : |
Mr. P Shah |
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Designation : |
Chairman |
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Name : |
Mr. Pratima P Shah |
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Designation : |
Director |
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Name : |
Mr. Sagar P Shah |
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Designation : |
Managing Director |
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Name : |
Ms. Natasha Shah |
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Designation : |
Director |
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Name : |
Mr. Rajiv Chitnis |
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Designation : |
Director |
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Name : |
Mr. Lalitchandra Mulchandji Vaidya |
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Designation : |
Director |
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Name : |
Mr. Hemal Shah |
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Designation : |
Whole-time Director |
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Name : |
Mr. Gaurav Doshi |
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Designation : |
Director |
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Name : |
Mr. Bhagwansingh Chowdhary |
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Designation : |
Director |
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Name : |
Mr. Dilip Mehta |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Ms. Neelam Damji Shah |
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Designation
: |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Company
is in engaged in as Manufacturer and Exporter of Amar Tooth Paste, Amar Balm,
Amar Get – Up and Ayurvedic Products.
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Products : |
v
Amar
Tooth Paste v
Amar
Balm v
Amar
Get – Up |
GENERAL INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
v
UTI
Bank v
HDFC
Bank v
ICICI
Bank |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Shyam
C Agrawal & Company Chartered
Accountant |
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Address |
3/910-L, Nayjivan Society,Lamington Road,
Mumbai - 400 008. |
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Tel. No.: |
91-22- 307 35 38 (R) 26844931 |
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Fax No.: |
91-22-26835699. |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
280,00,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 280.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
111,64,150 |
Equity
Shares |
Rs. 10/- Each |
Rs. 111.641 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.06.2005 |
30.06.2004 |
30.06.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
111.641 |
111.641 |
101.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
157.098 |
89.523 |
49.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
268.739 |
201.164 |
151.300 |
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LOAN FUNDS |
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1] Secured Loans |
150.974 |
129.787 |
79.900 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
150.974 |
129.787 |
79.900 |
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DEFERRED TAX LIABILITIES |
0.998 |
0.711 |
0.000 |
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TOTAL |
420.711 |
331.662 |
231.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
60.424 |
59.647 |
62.100 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
187.701
|
110.362 |
80.700 |
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Sundry Debtors |
182.433
|
192.715 |
101.600 |
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Cash & Bank Balances |
0.945
|
0.322 |
0.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.033
|
6.717 |
10.000 |
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Total Current Assets |
374.112
|
310.116 |
192.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
12.856
|
13.919 |
23.200 |
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Provisions |
2.852
|
26.397 |
2.700 |
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Total Current Liabilities |
15.708
|
40.316 |
25.900 |
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Net Current Assets |
358.404
|
269.800 |
166.600 |
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MISCELLANEOUS EXPENSES |
1.883 |
2.215 |
2.500 |
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TOTAL |
420.711 |
331.662 |
231.200 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
30.06.2005 |
30.06.2004 |
30.06.2003 |
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Sales Turnover [including other income] |
1068.244 |
822.542 |
737.200 |
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Profit/(Loss)
Before Tax |
73.362 |
38.220 |
32.200 |
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Provision
for Taxation |
4.598 |
1.978 |
2.400 |
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Profit/(Loss)
After Tax |
68.764 |
36.242 |
29.800 |
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Export
Value |
57.338 |
NA |
NA |
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Total
Expenditure |
994.881 |
784.321 |
635.200 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
30.09.2005 |
31.12.2005 |
31.03.2006 |
|
Sales
Turnover |
369.200 |
421.300 |
440.300 |
|
Other
Income |
0.200 |
0.000 |
0.200 |
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Total
Income |
369.400 |
421.300 |
440.500 |
|
Total
Expenditure |
312.000 |
344.300 |
359.800 |
|
Operating
Profit |
57.400 |
77.000 |
80.700 |
|
Interest |
5.100 |
4.700 |
4.200 |
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Gross
Profit |
52.300 |
72.300 |
76.500 |
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Depreciation |
1.500 |
1.500 |
1.900 |
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Tax |
0.000 |
0.000 |
22.500 |
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Reported
PAT |
50.800 |
70.800 |
52.100 |
200509
Quarter 1- : Expenditure Include
Increase/Decrease in stock in trade Rs (97.920) Million Consumption of raw
materials Rs 385.329 Million Manufacturing expenditure Rs 7.240 Million Staff
Cost Rs 3.552 Million Administrative Expenses Rs 4.883 Million Selling,
Distribution and other Expenses Rs 8.891 Million Status of Investor Complaints
for the quarter ended September 30, 2005 Complaints Pending at the beginning of
the quarter Nil Complaints Received during the quarter Nil Complaints disposed
off during the quarter Nil Complaints unresolved at the end of the quarter Nil
1. The above results for the quarter ended September 30, 2005 have been
reviewed by the Audit Committee and were taken on record by the Board of
Directors in its meeting held on October 25, 2005. 2. The company's operation
fall under single segment. 3. The Company came out with an IPO in August, 2005
with 1,50,00,000 Equity Shares @ Rs 28/- per equity share. The Company's Shares
were listed on The Bombay Stock Exchange Ltd and The National Stock Exchange of
India Ltd on September 16, 2005, Hence Corresponding Quarters figures are not
provided. 4. The 'Limited Review' required under clause 41 of listing agreement
has been done by statutory auditors of the Company. 5. Provision of Income Tax
has not been made for the quarter end and the same will be provided at the end
of the financial year. 6. Earning Per Shares has been calculated on annual
basis. 7. Company is in a process to acquire land at Dehradun, Uttaranchal
wherein company will be putting WHO GMP (Geneva) Plant. 8. The utilisation of
funds from public issue proceedings of Rs 420 million as on September 30, 2005
is as follows. Public Issue Exps - 41.062 Million Working Capital
Repayment/Utilisation - 74.292 Million Spent for Surat Plant - 2.519 Million
Bank Balance - 302.127 Million ---------------------- Total - 420.00 Million ----------------------
200512 Quarter 2 - Expenditure Include Increase/Decrease in stock in trade Rs 32.315 million Consumption of raw materials Rs 288.109 million Manufacturing expenditure Rs 7.334 million Staff Cost Rs 3.614 million Administrative Expenses Rs 5.410 million Selling, Distribution and other Expenses Rs 7.515 million Status of Investor Complaints for the quarter ended December 31, 2005 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 743 Complaints disposed off during the quarter 743 Complaints unresolved at the end of the quarter Nil 1. The above results for the quarter ended December 31, 2005 have been reviewed by the Audit Committee and were taken on record by the Board of Directors in its meeting held on January 27, 2006. 2. The Company's operation fall under single segment. 3. The Company came out with an IPO in August, 2005 with 1,50,00,000 Equity Shares @ Rs 28/- per equity share. The Company's Shares were listed on The Bombay Stock Exchange Ltd and The National Stock Exchange of India Ltd on September 16, 2005, Hence Corresponding Quarters figures are not provided. 4. The 'Limited Review' required under clause 41 of listing agreement has been done by statutory auditors of the Company. 5. Provision of Income Tax has not been made for the quarter end and the same will be provided at the end of the financial year. 6. Earning Per Shares has been calculated on annual basis. 7. The Company's Surat Project will be operational from February 2006. 8. The utilisation of funds from public issue proceedings of Rs 420 million as on December 31, 2005 is as follows. Public Issue Exps Rs 46.525 million Working Capital Repayment/Utilisation Rs 123.943 million Spent for Surat Plant Rs 43.323 million Research & Development/ Analytical Libratory Rs 5.545 million Marketing/Branding /Sale promotion Rs 31.515 million Investment in after Corporate Deposits Rs 54.035 million Bank Balance Rs 115.114 million ------------------------------------------------------------------ Total Rs 420.000 million
200603
Quarter 3
- Expenditure Include (Increase)/Decrease in stock in trade Rs (5.019)
million Consumption of raw materials Rs 339.352 million Manufacturing
expenditure Rs 6.941 million Staff Cost Rs 5.556 million Administrative
Expenses Rs 5.648 million Selling, Distribution and other Expenses Rs 7.279
million Tax Includes Provision for Current Tax Rs 22.000 million Deferred Tax
Rs 0.500 million Status of Investor Complaints for the quarter ended March 31,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 114 Complaints disposed off during the quarter 114
Complaints unresolved at the end of the quarter Nil 1. The above results for
the quarter ended March 31, 2006 have been reviewed by the Audit Committee and
were taken on record by the Board of Directors in its meeting held on April 27,
2006. 2. The Company came o with an IPO in August, 2005 with 1,50,00,000 Equity
Shares @ Rs 28 /- per equity share. The Company's Shares were listed on The
Bombay Stock Exchange Ltd and The National Stock Exchange of India Ltd on
September 16, 2005, Hence Corresponding Quarters figures are not provided. 3.
The 'Limited Review' required under clause 41 of listing agreement has been
done by statutory auditors of the Company. 4. The utilisation of funds from
public issue proceedings of Rs 420 million as on March 31, 2006 is as follows.
1. Public Issue Exps. - 46.525 million 2. Working Capital Repayment /
Utilisation - 129.943 million 3. Spent for Surat Plant - 55.823 million 4.
Research & Development /Analytical Laboratory - 9.045 million 5. Marketing
/ Branding / Sales promotion - 47.629 million 6. Investment in inter Corporate
Deposits - 54.035 million 7. General corporate purpose - 12.000 million 8. Bank
Balance - 65.000 million Total - 420.000 million
KEY
RATIOS
|
PARTICULARS |
30.06.2005 |
30.06.2004 |
30.06.2003 |
|
Debt
Equity Ratio |
0.64 |
0.66 |
0.63 |
|
Long
Term Debt Equity Ratio |
0.07 |
0.34 |
0.63 |
|
Current
Ratio |
2.22 |
2.98 |
4.59 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
13.77 |
11.64 |
11.63 |
|
Inventory
|
7.16 |
8.60 |
10.37 |
|
Debtors |
5.69 |
5.59 |
8.39 |
|
Interest
Cover Ratio |
4.71 |
4.87 |
4.54 |
|
Operating
Profit Margin (%) |
9.47 |
6.82 |
6.26 |
|
Profit
Before Interest and Tax Margin (%) |
8.87 |
6.05 |
5.61 |
|
Cash
Profit Margin (%) |
7.04 |
5.18 |
4.70 |
|
Adjusted
Net Profit Margin (%) |
6.44 |
4.40 |
4.05 |
|
Return
on Capital Employed (%) |
26.59 |
19.09 |
24.06 |
|
Return on Net Worth (%) |
31.59 |
22.94 |
27.81 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.57.25/- |
|
Low |
Rs.50.00/- |
LOCAL AGENCY
FURTHER INFORMATION
FINANCIAL PERFORMANCE:
The Directors Report and the Audit Accounts for
the ended June 30th 2005 have been mailed to
the earlier. Year ended June, 2005 in retrospect was a satisfactory year due to
various factors. The manufacturing sector too recorded an impressive growth. The
toothpaste market, showed signs of growth. The toothpaste price reduction
strategy of the company stimulated market demand and helped the company achieve
volume growth despite the deep price cuts, the net profit of the company
registered a growth of 90% to Rs. 68.800 as against Ra 36.200 in the previous
year and the Sales of the company registered a growth of 29.90% to Rs. 1067.800
as against Rs. 822.000 in the previous year. Over the years as oral care has
become increasingly sophisticated, AMAR has earned the trust and confidence of
consumers and the dental profession all around INDIA In every region of INDIA,
in every stage of economic development, AMAR'S state of the art oral hygiene
and therapeutic oral care. We are committed to improve the country's oral
health and reach additional people each year.
CONCLUSIVE:
I would like to sincerely thank all my
colleagues on the board for their wise counsel and assistant and express my
appreciation for the efficient and loyal services rendered by the Company's
employees at all levels. I must also express my gratitude to their many
business partners, their stockiests, distributors, retailers and suppliers for
their continued support and most importantly.
BUSINESS PERFORMANCE;
Consumer spending is gradually picking up in
urban India, the overall demand conditions continued to be dfficult since the
agriculture sector has declined significantly, severely affecting rural demand.
The market environment continues to be very competitive. Within the challenging
competitive market conditions. The
Company continues to deliver excellent growth in
sales of 29.90% during the year 2004-05.
BUSINESS PROSPECTS:
In a highly competitive market environment, it
is essential to respond with such products and services that will not only
improve the quality of life but will also increase the Company's market
leadership in the Oral Care business. This was aggressively supported with
"360 degree" marketing, consumer promotions and
trade incentives. Their products with the power
of Ayurvedic contents is proven to make teeth stronger.
The "bmpany undertook product improvement
measures despite a strong recessionary pressure in the toothpaste market.
Competitive brands have chosen to down-price and partially offset the cost by
down-sizing their pack. However, Amar Tooth Paste continues to offer excellent
value to the consumer by rationalizing prices to match competitors without
reducing the grammage of toothpaste in each tube. The FMCG sector in India has
become fiercely competitive. In order to survive as a viable manufacturing
unit, the company needs to have access to state-of-the-art technology so as to
improve continually the quality of products and cost efficiency. With a view to
adapting and absorbing the technological assistance, the Company has
established a Research & Development Centre at Daman during the year 2003-
2004. The main advantage of having such centre is that the company can
undertake adaptive research to develop new products and process as well as to
improve the existing products and process that meet the Indian consumers and
business needs. All theses initiatives are likely to further strengthen the
Company's market leadership in the Oral Care business.
Fixed
Assets
v
Land
v
Plant
& Machinery
v
Factory
Premises
v
Computer
& Printer
v
Telephone
System
v
Fax
Machine
v
Cars
v
Air
Conditioners
v
Electrical
Installation
v
Office
Premises
v
Refrigerator
v
Laboratory
Instrument
As per
Web Site Details
Overview
In 1984,
Swami Aushadalaya Pvt. Ltd. was incorporated to start a journey in Ayurvedic
medicinal research and development. A name change resulted in AMAR Remedies
Pvt. Ltd. and subsequently in 1995 AMAR Remedies Ltd. (ARL) came into being.
The first Manufacturing Facility was constructed at Surat, Gujarat.
ARL’s
first product was toothpaste and in times when every toothpaste available in
the market used gelatine as an ingredient (making their toothpaste
non-vegetarian), AMAR Toothpaste made a breakthrough by developing a
gelatine-free formula. Thus, ARL was successful in developing “VEGETARIAN”
TOOTHPASTE, the only one of its kind. AMAR Toothpaste was launched in the
markets of Gujarat for the first time in 1991. By 1994 it was all over the
Western markets of India, and by 1998 the company extended its brand by
launching AMAR Regular Toothpaste and AMAR Strong Toothpaste.
ARL
Daman plant was inaugurated in 2001. Its state-of-the-art manufacturing
facility resulted in an immediate increase in capacity and gave ARL the
opportunity to manufacture more varieties of toothpastes for different
segments.
ARL
started manufacturing more than 25 different brands and variants of toothpaste
for local as well as the export markets. ARL also makes regular cosmetic
toothpastes besides herbal products. It found immediate success in selling to
traders in African countries like Nigeria, Ghana, Sudan, and Tanzania, and also
in countries like Dubai and Panama.
Infrastructure
ARL has
two manufacturing plants at Surat (25000 sq.ft.) and Daman (20000 sq.ft.)
respectively.
The
Surat Plant is a two-storied building, which will be made operational after the
public issue. It will manufacture Ayurvedic medicines for which the company has
an FDA approval on 25 Ayurvedic and herbal products.
The
Daman Factory is a sophisticated plant with modern machinery used to
manufacture FMCG products and Ayurvedic medicines. It runs in 3 shifts, mainly
manufacturing various types of Toothpastes along with Pain Balm and
Toothpowder.
2500
years ago, Charaka, the Father of Medicine consolidated Ayurveda - the earliest
school of medicine known to man.
Ayurvedic
remedies are derived from nature and are able to cure, rather than suppress
disease and do not give birth to any side effects. Not surprisingly, Ayurveda
is being accepted more and more not only in India but also globally.
At ARL,
it is their constant endeavour to spread the benefits of this science across
all geographical barriers.
With a
very focused, dedicated and committed approach, they embarked upon the project
to formulate products, which can provide the benefits of Ayurveda to the common
man.
ARL
works towards changing the perceptions of Ayurveda in the eyes of consumers
from that of a simple homemade remedy, to that of a new age holistic cure.
The ARL
research team is currently dedicating itself towards Research and Ayurvedic
cures for six critical sicknesses such as:
1
Acquired Immune Deficiency Syndrome (AIDS)
2
Medicines for blood purification to avoid dialyses
3 Blood
Pressure
4
Malaria
5
Typhoid
6
Jaundice
ARL is
embarking upon establishing a strong marketing network to for its Ayurvedic
medicines all over India. ARL plans to launch its 25 FDA approved Ayurvedic
medicines in India as well as in International markets.
Amar
Remedies to enter capital market on Aug 25th 8/23/2005
5:41:27 PM IST
Amar Remedies Limited, one
of the leading manufactures and exporters of Ayurvedic products, is entering
the capital market on 25th August 2005 with an IPO of 15mn equity shares through
100% Book Building process in the price band of Rs24 to Rs28 per equity share
of Rs10 each.
The issue would constitute
57.33% of the fully diluted post issue paid up capital
of the company. The issue closes on 31st August. The Book Running Lead Managers
for the issue is Allianz Securities Limited.
The Company said that, it
has registered 24 Ayurvedic medicines with FDA since 1997 onwards, Since it is
in the FMCG business and has a
presence in both the domestic and international markets of Africa, South
America, and Middle East, it, therefore feels that this is the right time to
diversify and establish itself as a multi product company. Further it will also
help the company gain wide recognition amongst the people for umbrella brand ‘Amar’ that will give value addition in its products.
It has a land and building structure ready at Surat, which reduces the
gestation period and allows it to commence its Expansion Project immediately.
The Ayurvedic products that
are to be launched have already been approved by FDA. The company’s foray into
ayurvedic medicines for Hypertension, Diabetes and Heart Ailments will be an
added advantage.
At the proposed
infrastructure in Surat, Amar Remedies intend to set up a state of the art
manufacturing facility using all GMP compliant machinery. It has designed the
plant to be completely dust-free and to some extent moisture free to ensure
high standard of manufacturing. It is setting up a laboratory to facilitate
in-house research and development
at the same time to ensure high standard of quality control.
The company intends to make
Ayurveda as a main stream treatment instead of an alternative treatment by
following good manufacturing practices (GMP) and modernizing the packaging.
This would also help in marketing of products
to developed countries viz. USA and Europe, which have set high standards for
import of medicinal products.
It also intends to give
Consultation over toll-free phone lines which will be a unique way of knowing
consumer needs and catering specifically to them. The company also proposes to
do extensive branding for selling products Over The Counter. All this would
help in changing the general perception of consumers towards Ayurveda as an
age-old science to a new-age remedy.
Amar Remedies
has already achieved success in developing medicines for various diseases such
as irregular digestive system, heart ailments, throat infections, sinus,
improvement in eye sight, reduction in pigmentation of skin. The medicines
proposed to be manufactured at Expansion Project are result of successful
research in the past 5 to 7 years. They are looking not just to create an
Ayurvedic option to other origin of medicines but Ayurveda as the only answer
to the disease.
Due to continuous and
ongoing R&D Amar Remedies has been successful in developing a
wide range of toothpaste. It has been periodically developing different
variants of toothpaste and till date has developed more than 25 variants of
toothpaste. This has resulted in a growth of over 200% in turnover over the
last three years. It has developed 24 different Ayurvedic medicines and has also
obtained FDA approval for the manufacture and sale of these medicines, which
include medicines for hypertension, diabetes and heart ailments.
The Company proposes to
manufacture the 24 different Ayurvedic medicines in the Expansion Project. Its
focus on the development of these Ayurvedic medicines will be to change the
perception of consumer towards Ayurveda from an age-old science to a remedy for
various new age ailments and diseases by changing the delivery system of the
medicine.
AMAR REMEDIES LIMITED
INTIAL PUBLIC OFFERING OF 1,50,00,000 EQUITY SHARES OF RS. 10/- EACH AT A PRICE
OF RS. 28/- FOR CASH AGGREGATING TO RS. 4200 LAKHS (HEREINAFTER REFERRED TO AS
THE "ISSUE"). THE ISSUE WOULD CONSTITUTE 57.33% OF THE FULLY
DILUTED POST ISSUE PAID UP CAPITAL OF THE COMPANY
THE ISSUE PRICE IS 2.8 TIMES OF THE FACE VALUE
The
issue was made through the 100% book-building process wherein upto 50% of the issue was to be allocated on a
discretionary basis to Qualified institutional Buyers. Further, not less than
15% of the issue was to be made available for allocation on a proportionate
basis to Non-institutional Bidders and not less than 35% of the issue was to be
made available for allocation on a proportionate basis to Retail Bidders,
subject to valid Bids being recevied at or above the issue Price.
BASIS OF ALLOCATION
The
Board of Directors of Amar Remedies Ltd. wish to thank the investing public
for their response to the issue which opened on August 25, 2005. and closed on
August 31, 2005. The issue received 1,97,990 valid bids for 53,35,46,000
Equity Shares resulting in 35.57 times subscription. The details
of the applications received in the issue from Retail individuals,
Non-institutional and Qualified institutional Buyers categories as under:
|
Category |
No. of valid |
No of Shares |
suscription |
|
Retail
investors |
1,97,463 |
29,60,81,750 |
56,396 |
|
Non
Insititutional Investors |
477 |
18,72,79,750 |
82,235 |
|
Qualified
Institutional Buyers |
50 |
5,01,84,500 |
6,718 |
Final Demand
A Sample of the final demand at different bid price is as under:
|
Bid Price |
No. of |
% to Total |
Cumulative |
Cumulative % |
|
24 |
18575500 |
2.94 |
569298000 |
18.14 |
|
25 |
686000 |
0.11 |
567761500 |
18.09 |
|
26 |
51161750 |
8.09 |
567703750 |
18.09 |
|
27 |
1138250 |
0.18 |
560469250 |
17.86 |
|
28& cut off |
560629250 |
88.68 |
872935250 |
27.82 |
|
|
|
100.00 |
|
|
The
Basis of Allotment was approved by Bombay Stock Exchange Limited
("BSE") on Septemeber 13, 2005.
A) Allocation to Retail Investors:-
The Basis of Allocation to the Retail Investors, who have bid at cut-off
or at above offer Price of Rs.28/- per Equity Share, was
finalized in consultation with BSE, Mumbai on a proportionate basis after
rounding off to the nearest integer. The category was oversubscibed 56.39652
times. The total number of shares allocated in this category is
52,50,000 Equity Shares. The category-wise details of the Basis
of Allocation is as under:
|
Category |
No. of |
% |
Total |
% |
No. of Shares |
Ratio |
Total No. Shares |
|
250 |
19079 |
9.66 |
4769750 |
1.61 |
250 |
1:57 |
84250 |
|
500 |
22216 |
11.25 |
11108000 |
3.75 |
250 |
2:57 |
196500 |
|
750 |
9733 |
4.93 |
7299750 |
2.47 |
250 |
1:19 |
129250 |
|
1000 |
23583 |
11.94 |
23583000 |
7.97 |
250 |
1:14 |
419000 |
|
1250 |
7012 |
3.55 |
8765000 |
2.96 |
250 |
1:11 |
155750 |
|
1500 |
9822 |
4.97 |
14733000 |
4.98 |
250 |
2:19 |
260750 |
|
1750 |
80681 |
40.86 |
141191750 |
47.69 |
250 |
17:137 |
2503000 |
|
2000 |
1473 |
0.75 |
2946000 |
1.00 |
250 |
1:7 |
52500 |
|
2250 |
360 |
0.18 |
810000 |
0.27 |
250 |
1:6 |
15000 |
|
2500 |
815 |
0.41 |
2037500 |
0.69 |
250 |
2:11 |
37000 |
|
2750 |
257 |
0.13 |
706750 |
0.24 |
250 |
1:5 |
12750 |
|
3000 |
608 |
0.31 |
1824000 |
0.62 |
250 |
1:5 |
32000 |
|
3250 |
307 |
0.16 |
997750 |
0.34 |
250 |
2:9 |
17250 |
|
3500 |
21517 |
10.90 |
75309500 |
25.44 |
250 |
34:137 |
1335000 |
B) Allocation to Non Institutional Investors:-
The Basis of Allocation to the Non institutional Investors, who have bid
for at or above the Issue Price of Rs. 28/- per Equity
Share, was finalized in consultation with BSE, Mumbai on a proporationate basis
after rounding off to the nearest integer. The category was oversubscribed
83.23544 times. The total numberr of shares allocated in this category
is 22,50,000 Equity Shares. A sample of category-wise details of
the Basis of Allocation is as under:
|
Category |
No. of |
% |
Total |
% |
No. of |
Ratio |
Total No. |
|
3750 |
23 |
4.82 |
86250 |
0.05 |
250 |
4:23 |
1000 |
|
4000 |
11 |
2.31 |
44000 |
0.02 |
250 |
2:11 |
500 |
|
4250 |
9 |
1.89 |
38250 |
0.02 |
250 |
2:9 |
500 |
|
5000 |
14 |
2.94 |
70000 |
0.04 |
250 |
3:14 |
750 |
|
6000 |
19 |
3.98 |
114000 |
0.06 |
250 |
5:19 |
1250 |
|
10000 |
19 |
3.98 |
190000 |
0.10 |
250 |
9:19 |
2250 |
|
11000 |
2 |
0.42 |
22000 |
0.01 |
250 |
1:2 |
250 |
|
25000 |
13 |
2.73 |
325000 |
0.17 |
300 |
FIRM |
3900 |
|
50000 |
8 |
1.68 |
400000 |
0.21 |
601 |
FIRM |
4808 |
|
75000 |
10 |
2.1 |
750000 |
0.40 |
901 |
FIRM |
9010 |
|
100000 |
20 |
4.19 |
2000000 |
1.07 |
1201 |
FIRM |
24020 |
|
125000 |
6 |
1.26 |
750000 |
0.40 |
1502 |
FIRM |
9012 |
|
150000 |
1 |
0.21 |
150000 |
0.08 |
1802 |
FIRM |
1802 |
|
175000 |
1 |
0.21 |
175000 |
0.09 |
2102 |
FIRM |
2102 |
|
200000 |
9 |
1.89 |
1800000 |
0.96 |
2403 |
FIRM |
21627 |
|
250000 |
3 |
0.63 |
750000 |
0.40 |
3004 |
FIRM |
9012 |
|
275000 |
1 |
0.21 |
275000 |
0.15 |
3304 |
FIRM |
3304 |
|
1000000 |
2 |
0.42 |
2000000 |
1.07 |
12014 |
FIRM |
24028 |
|
1250000 |
1 |
0.21 |
1250000 |
0.67 |
15018 |
FIRM |
15018 |
|
2500000 |
3 |
0.63 |
7500000 |
4.00 |
30035 |
FIRM |
90105 |
|
3600000 |
1 |
0.21 |
3600000 |
1.92 |
43251 |
FIRM |
43251 |
|
4000000 |
1 |
0.21 |
4000000 |
2.14 |
48056 |
FIRM |
48056 |
|
7500000 |
2 |
0.42 |
15000000 |
8.01 |
90100 |
FIRM |
180200 |
|
8279000 |
1 |
0.21 |
8279000 |
4.42 |
99415 |
FIRM |
99415 |
|
15000000 |
3 |
0.63 |
45000000 |
24.03 |
180112 |
FIRM |
540336 |
C) Alloaction to QIB's:-
|
Category |
Fls/ |
MFs |
Flls |
Insurance |
VCs |
Others |
Total |
|
No. of |
334800 |
1787750 |
5377450 |
- |
- |
- |
75,00,000 |
The
Board of Directors Amar Remedies Limited at its Meeting held at Mumbai on
September 13, 2005 has approved the basis of allocation of shares and
allocated the shares to various successful applicants. The despatch of
Refund Orders has been completed by September 15, 2005 to the address of the
investors as registered with the depositories. The refund orders have been
printed with the Bank Mandate details as registered, if any, with the
depositories. The shares allocated to the successful applicants have
been credited to their beneficiary accounts subject to validation of the
account details with the depositories concerned. The company is taking steps to
get the Equity shares admited for trading on the Bombay Stock
Exchange Limited and on The National Stock Exchange of India Limited, Mumbai
within seven working days from the date of approval of basis of allocation.
INVESTORS PLEASE NOTE
This details of the allocation made would also be hosted on the website
of Registrars to the Offer,
Intime Spectrum Registry Limited at www.intimespectrum.com .
All
futut correspondence in this regard may kindly be addressed to the Registrars
to the Issue quoting full name of the First/ Sole applicant, Serial number of
the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate
and place where the bid was submitted and payment details at the address given
below:
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.98 |
|
UK
Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.57.82 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |