MIRA
INFORM REPORT
|
Report Date : |
23RD
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
JUBILANT ORGANOSYS LIMITED |
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Registered Office : |
Bhartiagram, Gajraula, District Jyotiba Phuley
Nagar, Uttar Pradesh - 244 223, INDIA |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
21.06.1978 |
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Com. Reg. No.: |
20-4624 |
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CIN No.: [Company
Identification No.] |
U24116UP1978PLC004624 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTJ00275C |
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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 : |
Manufacturing of basic and speciality chemicals such as
acetaldehyde, acetic acid, acetic anhydride, vinyl acetate monomer and
pyridine bases and their derivatives. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
19500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company of Bhartia
Group, which is a medium, sized industrial house. Available information indicates high financial responsibility
of the company and its directors.
Their trade relations are reported as fair. The company can be considered good for normal business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Bhartiagram, Gajraula, District Jyotiba Phuley
Nagar, Uttar Pradesh - 244 223, INDIA |
|
Tel. No.: |
91-5924-252351/252353-60 |
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Fax No.: |
91-5924-252352 |
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E-Mail : |
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Website : |
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Corporate
Office : |
1A, Sector 16 A, Institutional Area, Noida – 201 301, Uttar
Pradesh |
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Tel.
No.: |
91-120-2516601-11 |
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Fax
No.: |
91-120-2516627/28/29 |
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E-Mail
: |
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Website : |
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Mumbai Office |
Contractor Building (Ground Floor)
46 R K Marg, Ballard Estate, Mumbai – 400038 |
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Factory
1 : |
Bhartiagram, District Jyotiba Phuley Nagar – 201 304, Uttar
Pradesh, India |
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Tel.
No.: |
91-5924-252351 / 252353-360 |
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Fax
No.: |
91-5924-252352 |
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Factory
2 : |
Village Nimbut, Near Nira Railway Station, District Pune,
Maharashtra, India |
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Tel.
No.: |
91-2112-269155-57 |
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Fax
No.: |
91-2112-269154 |
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Factory
3 : |
56
Industrial Area, Nanjangud, Distt. Mysore - 571 302 Karnataka, India |
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Tel.
No.: |
91
8221 228402-08 |
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Fax
No.: |
91
8221 228410-11 |
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Factory
4 : |
Block No. 133, P. O. Samlaya, Savli Jarod Road, Taluka Savli,
Vadodara – 391 520, Gujarat, India |
|
Tel.
No.: |
91-2667-251306 / 251281 / 251326 / 251361-63 |
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Fax
No.: |
91-2667-251305 |
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Factory
5 : |
Trigen
Laboratories Inc. 207 Kinley Drive, Salisbury, MD, 21801 |
|
Tel.
No.: |
1 410
860 8500 |
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Division : |
agro
business division
v
4th Floor, Sheetla House, 74, Nehru Place, New Delhi
– 110 019, India Tel. 91-11-26465772 / 26435922 Fax. 91-11-26469088 E-Mail. rkapoor@vamorganic.com Contact Person : Mr. Raju Kapoor feed
additives division
v
16A, Dutt Vihar Society, Behind ABB House, Race Course Circle,
Vadodara – 390 005, Gujarat, India Tel. 91-265-2339411 / 2336640 Fax. 91-265-2339466 E-Mail. anichembaroda@yahoo.com
Contact Person : Mr. Subodh Mishra International division
v
5th Floor, Mansarovar, 90, Nehru Place, New Delhi –
110 019, India Tel. 91-11-26292582 / 26211129 Fax. 91-11-26292420 / 26239337 E-Mail. vamintl@vamorganic.com Contact Person : Mr. L. R. Tandon organic
intermediates division
v
4th Floor, 'Skyline House', 85, Nehru Place, New
Delhi-110 019, India Tel. 91-11-26465772 / 26435922 Fax. 91-11-26469088 E-Mail. ddua@vamorganic.com
Contact Person : Mr. Dinesh
Dua Performance
chemicals division
v
2nd Floor, Skyline House, 85, Nehru Place, New Delhi
– 110 019, India Tel. 91-11-26435922 / 26465772 Fax. 91-11-26469088 E-Mail. msharan@vamorganic.com
Contact Person : Mr. Madhav Sharan speciality
products division
v
3rd Floor, Hemkunt Chambers, 89, Nehru Place, New
Delhi – 110 019, Inida Tel. 91-11-26428869 / 0347 Fax. 91-11-26465810 E-Mail. vkaushik@vamorganic.com vinyl
pyridine latex division
v
16A, Dutt Vihar Society, Behind ABB House, Race Course Circle,
Vadodara – 390 005, Gujarat, India Tel. 91-265-2339411 / 2336640 Fax. 91-265-2339466 E-Mail. 1. monojit@gnahd.global.net.in Contact Person : Mr. Monojit Mukherjee |
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R
and D Facility: |
Uttar
Pradesh
Uttar Pradesh
Uttar
Pradesh
Uttar
Pradesh Karnataka |
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Marketing offices: |
Located at : Ahmedabad, Bangalore, Kolkata, Chennai, New Delhi, Ludhiana,
Mumbai, Vadodara and Hyderabad |
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Overseas
Office : |
Ø
Shanghai Representative Office G/10F, Jiu Shi Fuxing Mansion,
918, Huai Hai Zhong Road, Shanghai PC 2000 20 Tel. +86 21 6415 9378 Fax. +86 21 6415 2793 E-Mail. vamsh@sh163b.sta.net.cn Ø
One Evergreen Avenue, Suite LL6, Hamden, CT 06518 Tel. +1-203 230 4890 Fax. +1-203 230 4870 E-Mail. c.gonzalez.vam@worldnet.att.net |
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Branches
: |
Uttar
Pradesh
Tamil
Nadu
Fax :
+91 44 24335875 Andhra
Pradesh
Karnataka
Maharashtra
Maharashtra
Gujarat
West
Bengal
|
DIRECTORS
|
Name : |
Mr. Shyam S. Bhartia |
|
Designation : |
Chairman and Managing Director |
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Name : |
Mr. H.S. Bhartia |
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Designation : |
Co- Chairman & Managing
Director |
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Name : |
Mr. Arbinda Ray |
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Designation : |
Director |
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Name : |
Dr. J. M. Khanna |
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Designation : |
Executive Director |
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Name : |
Mr. Surendra Singh |
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Designation : |
Director |
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Name : |
Dr. Naresh Trehan |
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Designation : |
Director |
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Name : |
Mr. S. N. Singh |
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Designation : |
Executive Director |
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Name : |
Mr. Shyam Bang |
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Designation : |
Executive Director |
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Qualification : |
M.Tech (Chemical Engineering) |
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Experience : |
32 Years |
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Date of Appointment : |
1 February 1997 |
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Previous Employments : |
Enpro India Ltd. - President |
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|
Name : |
Mr. Bodhishwar Rai |
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Designation : |
Director |
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Name : |
Mr. R. Sankaraiah |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Ajay Krishna |
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Designation : |
Company Secretary |
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Name : |
Agarwal Dr. Ashutosh |
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Designation : |
Head of R&D Organisation |
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Qualification : |
D.Phil. Synthetic "Organic
Chemistry |
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Experience : |
24 years |
|
Date of Appointment : |
20 August 1998 |
|
Previous Employments : |
Ballarpur Industries Ltd. -
DGM-Organic Chemical Business |
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Name : |
Dubey Dr. Sushil Kumar |
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Designation : |
Head - Pharma (R&D) |
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Qualification : |
M.Sc., Ph.D. |
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Experience : |
23 years |
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Date of Appointment : |
24 February 2003 |
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Previous Employments : |
Zydus Cadila Healthcare Ltd. Vice
President |
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|
Name : |
Khanna Dr. J M |
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Designation : |
Executive Director &President
(Life Sciences) |
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Qualification : |
M.S. (Organic Chemistry), Ph.D. |
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Experience : |
39 years |
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Date of Appointment : |
16 August 2002 |
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Previous Employments : |
Ranbaxy Laboratories Ltd.
President (R & D) |
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|
Name : |
Puri Dr. Sukhbir |
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Designation : |
Business Unit Head (Alcoholic
Beverages) |
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Qualification : |
M. Sc. (Chemistry), Ph.D (Physical
Chemistry) |
|
Experience : |
25 years |
|
Date of Appointment : |
1 April 2004 |
|
Previous Employments : |
Director Supply Chain - India
& Russia Hub UDV India Ltd. |
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|
Name : |
Sankaraiah R. |
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Designation : |
Executive Director (Finance) |
|
Qualification : |
B. Sc.,
FCA. |
|
Experience : |
21 years |
|
Date of Appointment : |
9 September 2002 |
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Previous Employments : |
SRF Ltd. General Manager - Finance |
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Name : |
Singh S N |
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Designation : |
Executive Director & President (Chemicals) |
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Qualification : |
B. E. (Chemical Engineering) |
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Experience : |
44 years |
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Date of Appointment : |
14 December 1981 |
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Previous Employments : |
Indian Drugs & Pharmaceuticals
Ltd. |
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|
Name : |
Bhaskar Rajesh |
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Designation : |
Head-R&D (Dosage Forms) |
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Qualification : |
M Pharma - Pharmaceuticals |
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Experience : |
19 years |
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Date of Appointment : |
26 July 2004 |
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Previous Employments : |
Associate Director-Pharma Ranbaxy
Laboratories Ltd. |
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|
Name : |
Kamalakar Bundla Venkat |
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Designation : |
Business Unit Head-Dosage Forms |
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Qualification : |
Master in Personnel |
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Experience : |
17 years |
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Date of Appointment : |
24 May 2004 |
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Previous Employments : |
Director of Operations – India Niche
Generics Ltd |
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MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
Percentage of Holding |
|
FI/Banks/Mutual Funds |
|
5 % |
|
FIIs/NRIs/OCBs |
|
7 % |
|
Bodies Corporate |
|
63 % |
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Others |
|
25 % |
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Total |
|
100 % |
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BUSINESS DETAILS
|
Line of Business : |
Manufacturing of basic and speciality chemicals such as
acetaldehyde, acetic acid, acetic anhydride, vinyl acetate monomer and
pyridine bases and their derivatives. |
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Products : |
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PRODUCTION
STATUS
|
Particulars |
Units |
Installed
Capacity |
Actual
Production |
|
Alcohol |
KBL |
157700 |
82507 |
|
Organic including Speciality
Chemicals and its Intermediates |
MT |
387545 |
367771 |
|
Polymers including Co-polymers
and VP Latex/SBR latex |
MT |
31100 |
24144 |
|
Single Superphosphate |
MT |
132000 |
118273 |
|
Sulphuric Acid |
MT |
57750 |
60359 |
|
Dry & Acqueous
Choline Chloride & Ethyoxylates |
MT |
22000 |
8690 |
|
Feed Premixes |
MT |
3500 |
2188 |
|
Agri Chemicals |
KL |
-- |
480 |
|
Active Pharmaceuticals
Ingredients [API] |
MT |
218 |
139 |
|
Imfl |
KBL |
10800 |
3985 |
GENERAL
INFORMATION
|
Suppliers : |
Ø
Vel make Seals D. R. Scientific Works Ø
Manik Engineers Ø
Span Engineers Ø
Virava Chemicals Ø
Millenium Chemi Pharma Ø
Mander Engineering Ø
Sunil Kumar & Bros Ø
Premium Energy Transmission Limited Ø
Arihant Gujrat Plastic Industries Ø
Century Thread Works Ø
Pious Printers Ø
Enkay Containers Ø
Makewell Plasticizers Private Limited Ø
Parth Chemical & Metals Enterprises Ø
Metro Polyprints Ø
K L J Organic Limited Ø
Polybond Pharmaceuticals Ø
Dhruv Packaging Ø
Silver Tone Gravu-Flex Private. Limited Ø
Rodricon Industries Ø
S M Engineering Ø
Micro Engineers Ø
Dhatukarm Engineers Ø
Vimal Hi-Tech Private. Limited Ø
A K Sales Corporation Ø
Polybond Pharmaceuticals Ø
Niranjan Containers Private Limited Ø
Parkaire Engineering Co. Private Limited Ø
Multi -Max Engineering.Works Ø
Chhaya Packers & Printers Private. Limited Ø
Basant Plastics Ø
Pahwa Plastics Private Limited Ø
Bloom Packaging Private. Limited |
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No. of Employees : |
700 |
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Bankers : |
Ø
ICICI Bank Limited Ø
Export - Import Bank of India Ø
Punjab National Bank Ø
Corporation Bank Ø
Canara Bank Ø
Syndicate Bank Ø
Indian Bank Ø
The Jammu and Kashmir Bank Limited
Ø
ABN AMRO Bank N. V. Ø
Standard Chartered Bank Ø ING Vysya Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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|
Auditors : |
Statutory Auditors Ø
K. N. Gutgutia & Company Chartered Accountants 11K, Gopala Tower, 25,
Rajendra Place, New Delhi - 110 008, India US GAAP Auditors Ø
KPMG Chatered Accountants, 4B, DLF Corporate Park, DLF
City, Phase III, Gurgaon – 122002, Haryana, India Cost Auditors Ø
J. K. Kabra and Company Cost Accountants, 552/1B, Arjun Street, Main
Vishwas Road, Vishwas Nagar, Delhi –110032, India Internal
Auditor Ø
Ernst & Young Private Limited Ernst & Young Tower, B-26, Qutab
Institutional Area, New Delhi 110016, India |
|
|
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|
Associates/Subsidiaries : |
Ø
Air Travels Bureau (Private) Limited Ø
Cable Compound Limited Ø
Dominos Pizzas Ø
Enpro Services Limited Ø
Hindustan Wires Limited Ø
India Glycols Limited Ø
Insilco Limited Ø
Intelcom Limited Ø
Jubilant Biosys (P) Limited Ø
Jubilant Enpro India Limited Ø
Vam Employees Provident Fund Trust Ø
Ogan India Private Limited Ø
Ramganga Fertilizers Limited (Sick Unit) Ø
Vam Petro Products Private Limited Ø
Vam Leasing Limited Ø
Vam Investments Limited Ø
Vam Organic Chemicals, USA |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity Shares |
Rs. 5/- each |
Rs. 300.000 millions |
|
2500000 |
Redeemable Cumulative
Preference Shares |
Rs. 100/- each |
Rs. 250.000 millions |
|
|
Total
|
|
Rs. 550.000 millions |
|
|
|
|
|
Issued,
Subscribed:
|
No.
of Shares |
Type |
Value |
Amount |
|
25919755 |
Equity Shares |
Rs. 5/- each |
Rs. 129.600 millions |
|
Paid-up Capital |
|||
|
25913355 |
Equity Shares |
Rs. 5/- each |
Rs. 129.560 millions |
|
|
Equity
Shares Forfeited |
|
Rs. 0.020 millions |
|
|
Total
|
|
Rs. 129.580 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
129.580 |
117.320 |
73.330 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4830.520 |
1996.380 |
1405.570 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4960.100 |
2113.700 |
1478.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2038.150 |
3857.660 |
3473.210 |
|
|
2] Unsecured Loans |
1619.730 |
352.340 |
655.870 |
|
|
TOTAL BORROWING |
3657.8800 |
4210.000 |
4129.080 |
|
|
DEFERRED TAX LIABILITIES |
857.700 |
741.620 |
564.110 |
|
|
|
|
|
|
|
|
TOTAL |
9475.680 |
7065.320 |
6172.090 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5275.930 |
4336.320 |
4131.180 |
|
|
Capital work-in-progress |
929.700 |
405.990 |
113.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
990.230 |
148.890 |
163.230 |
|
|
DEFERREX TAX ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1762.050
|
1282.800 |
1341.900 |
|
|
Sundry Debtors |
1784.380
|
1455.050 |
829.880 |
|
|
Cash & Bank Balances |
159.620
|
208.350 |
99.540 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1249.010
|
811.420 |
760.310 |
|
Total Current Assets |
4955.060
|
3757.620 |
3031.630 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2039.530
|
1379.930 |
1083.530 |
|
|
Provisions |
691.290
|
225.480 |
184.680 |
|
Total Current Liabilities |
2730.820
|
1605.410 |
1268.210 |
|
|
Net Current Assets |
2224.240
|
2152.210 |
1763.420 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
55.580 |
21.910 |
1.160 |
|
|
|
|
|
|
|
|
TOTAL |
9475.680 |
7065.320 |
6172.090 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
11532.560 |
8633.530 |
9771.610 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
1503.040 |
978.920 |
641.200 |
|
Provision
for Taxation |
370.110 |
176.860 |
160.150 |
|
Profit/(Loss)
After Tax |
1132.930 |
802.060 |
481.050 |
|
|
|
|
|
|
Export
Value |
3393.820 |
2161.730 |
NA |
|
|
|
|
|
|
Import
Value |
2049.060 |
1061.720 |
NA |
|
|
|
|
|
|
Total
Expenditure |
10029.520 |
7654.610 |
9130.410 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2006 |
|
Type |
|
|
Full
Year |
|
Sales Turnover |
|
|
13860.000 |
|
Other Income |
|
|
177.000 |
|
Total Income |
|
|
14037.000 |
|
Total Expenditure |
|
|
11657.000 |
|
Operating Profit |
|
|
2380.000 |
|
Interest |
|
|
147.000 |
|
Gross Profit |
|
|
2233.000 |
|
Depreciation |
|
|
442.000 |
|
Tax |
|
|
403.000 |
|
Reported PAT |
|
|
1388.000 |
|
Dividend (%) |
|
|
1250.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
1.12 |
2.38 |
2.87 |
|
Long Term Debt Equity Ratio |
0.88 |
1.77 |
2.26 |
|
Current Ratio |
|
1.08 |
1.16 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.58 |
1.38 |
1.30 |
|
Inventory |
8.00 |
7.20 |
6.53 |
|
Debtors |
7.52 |
8.28 |
9.56 |
|
Interest Cover Ratio |
7.56 |
3.62 |
2.37 |
|
Operating Profit Margin (%) |
17.08 |
17.71 |
17.47 |
|
Profit Before Interest and Tax Margin (%) |
14.22 |
14.30 |
14.39 |
|
Cash Profit Margin (%) |
12.16 |
11.89 |
9.32 |
|
Adjusted Net Profit Margin (%) |
9.30 |
8.48 |
6.24 |
|
Return on Capital Employed (%) |
23.41 |
22.87 |
22.02 |
|
Return on Net Worth (%) |
32.33 |
45.71 |
36.97 |
STOCK PRICES
|
Face
Value |
Rs.
1.00/- |
|
High |
Rs.
189.00/- |
|
Low |
Rs.
185.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
Ø Land- Free Hold, Lease Hold
Ø Buildings- Factory
Ø Plant & Machinery
Ø Vehicles
Ø Office Equipments
Ø Furniture & Fixtures
Ø Intangibles
Ø Internally generated
Patents/product development
HISTORY
The company was incorporated on 21st June 1978 in Uttar
Pradesh having Company Registration No. 4624.
It was promoted by Mr. A.B. Bofors (a Swedish Multinational), Hindustan
Wires Limited and Mr. M. L. Bhartia. Trial production started in 1982.
The company was originally incorporated under the name and style
of ‘Vam Organic Chemicals Limited and was changed to present name before some
time.
Subject was incorporated as a public company 18 years ago
primarily for manufacturing vinyl acetate monomer (VAM) in India. Later on the company expanded and started
manufacturing synthetic adhesives and established Vamicol as a successful brand
in the market. The company is currently
fully integrated and areas of operation include products like pyridines and
picolines used by pesticides and pharmaceutical industry. The company has technical collaboration with
Teutoburg of Germany for manufacturing construction chemicals. The company has merged two group companies
Anichem and Enpro Specialty Chemicals with itself in FY99 and has recently sold
34.1% stake in a company named Insilco that was jointly promoted by them. The company's main plant is located in
Gajrula in Uttar Pradesh and has other plants in Moradabad in Uttar Pradesh. Recently it acquired unit of Polychem
Industries located in Nira.
The name of the company has been changed to Jubilant Organosys
Limited in terms of Fresh Certificate of incorporation dated 23rd
November, 2001 issued by the Registrar of Companies, Uttar Pradesh and
Uttaranchal.
Subject was promoted by Bofors, Sweden, Hindustan Wires, and M L
Bhartia of the Bhartia group. The company has two subsidiaries -- Vam Leasing
and Vam Investments. It manufactures industrial chemicals such as vinyl acetate
monomers, poly vinyl alcohol, poly vinyl acetate, co-polymers, carbon dioxide,
adhesives, pyridine and picoline. It also manufactures and markets adhesives
for industrial and household uses, under the brand name “Vamicol”.
In 1983, it promoted India Glycol to manufacture mono ethylene glycol in
technical collaboration with Scientific Design Company, USA. It has a technical collaboration with Noble
Chematur, Sweden, for supply of know-how and basic engineering for the
manufacture of vinyl acetate monomer (VAM). It also has technical
collaborations with Crown Decorative, UK, for high-pressure emulsions;
Technimont, Italy, for poly vinyl alcohols; Hydrogas, Denmark, for recovering
carbon dioxide; and Biotim, Belgium, for production of biogas. Subject took over Ramganga Fertilisers
(RFL), a sick company, in 1994.
The company was awarded ISO 9001 and 9002 Certifications. It has various
expansion plans like manufacturing of Tri Ethyl Phosphate (TEP), Wood Finishes
a polymer based product in collaboration with Kemira Coatings Limited, UK,
further Construction Chemicals in collaboration with Teutoburg of Germany.
The company’s "Organic Intermediates Division" is the largest
manufacturer of alcohol based chemical in India. This division has organised
into three business units - Acetyls, Vam, Pyrdine and Picolines. The company's
"Speciality Product Division" related to branded consumer adhesives,
footwear adhesives, wood working adhesives, speciality wood finishing systems
& construction chemicals. These products are used in industrial as well as
household sector. Vamicol brand of adhesives is one of the top brands in the
Indian Market. The company has revamped its Single Superhosphate (SSP) and
Sulphuric Acid Plants of "Fertiliser Division" for increasing capacity.
It's SSP fertiliser marketed under the brand 'Ramban' is well accepted in the
market.
With the Merger of Anichem India Limited and Enpro Specilaity Chemicals Limited
two new business units - Feed Additives and Vinyl Pyridine Latex will get added
advantage. To expand the export business and make market access easy, a
subsidiary company was incorporated in the U.S. and Europe to expand the
distribution of network and also plans to open office in Shanghai which would
help penetrate the Chinese Market.
During 1999-2000, the strategic initiative of acquisition of erstwhile Polychem
unit at Nira near Pune having production facility of Alcohol, Acetic Acid and
Vinyl Acetate Monomer was completed and the plant commenced operation in first
quarter. Also the merger of erstwhile Anichem India and Enpro Speciality
Chemicals was approved by the high court and the company allotted 839897 equity
shares of Rs. 10 each fully paid up to the shareholders of erstwhile Anichem
India & Enpro Speciality Chemicals. During November, 2001 the name of the
company was changed to Jubilant Organosys Limited.
To provide range of software services and development of software systems the
company had floated a new venture named Jubliant Biosys with 51% stake. The
venture is located in Bangalore. A new technique for sterlizing surgical
instruments with a mixture of ETO/CO2 had been successfully
commercialised. During 2002-03 it made
entry into Active Pharmaceutical Ingredients business by way of acquiring Max
India’s API operations. The acquired
API business is having plant in Nanjangud, Mysore is a US FDA approved
manufacturing plant. With the approval
from Delhi and Allahabad High Courts the two subsidiaries viz. VAM Investments Limited and VAM Leasing
Limited was merged with the company from 1st April 2002. The total capital expenditure for 2003 was
Rs. 1158.000 millions and the same was generated by Internal Cash accruals and
External borrowings.
acquisitions
The company is focused on building a high value-added pharmaceuticals
and speciality chemicals business by providing customised and cost effective
solutions to global customers, backed by intensive marketing efforts, focused
research and an increasing scale of operational efficiencies. In line with this strategy, the company
acquired the API business as a complementary extension of its current position
and will lead to an enhancement of its business portfolio.
The company also entered into an MOU with Triumph Distillers and
Vintners Private Limited [TDV] for the bottling facility of UDV India Limited
that is located at Nira, Maharashtra for a consideration of Rs. 27.500
millions. The acquisition is subject to
UDV India Limited transferring the potable liquor licence in the company’s name
and TDV entering into a contract with the company for bottling and supply of
extra neutral alcohol.
merger
The two subsidiary companies, Vam Investments Limited and Vam
Leasing Limited merged with the company w.e.f. 1st April 2002 by
virtue of the approval of Scheme of Amalgamation by Hon’ble High Court of
Judicature, Allahabad and High Court of Delhi, Delhi. As a result of the amalgamation, the share capital of the company
has reduced to Rs. 73.330 millions from Rs. 77.600 millions.
future
action plan
Ø
Process developments for identified Active Pharmaceutical
Ingredients
Ø
Process development of new derivatives of Pyridine and other
heterocyclic chemicals.
Ø
Development of advanced pharmaceutical/agrochemical intermediates
Ø
Bio transformations for the manufacture of fine and speciality
chemicals
Ø
Synthsis of chiral compounds
Ø
Development of research chemicals for pharma/agrochemical industry
Ø
Improvements in the fermentation technology and effluent treatment
Ø
Development of new products in the field of polymers and adhesives
for application in coating, textile, footwear, paper, auto, electronic and
other industries.
Ø
Development of various surfactants, emulsifiers and ethoxylates
Ø
Development of VP late and SBR latex for different applications
Ø
Development of various Choline salts and animal nutrition products
Ø
Development of various plant health chemicals.
OPERATIONS
Financial Year 2004-2005 has been a year of impressive growth, the
significant improvement in the result of operations being primarily driven by
increased contribution from the Pharmaceutical and Life Science Chemicals
business which has grown organically and through international acquisition. The
growth in this business was driven by increased sales to high growth regulated
markets of USA, Europe and Japan. The Industrial Chemicals business also did
well during the year due to higher price realization for its products. Net
sales recorded a growth of 29.8% to Rs. 11145 Million as compared to Rs. 8690
Million in the previous year. Revenues from Exports increased 59.5% to Rs. 3644
Million from Rs. 2285 Million, with increased exports to the key markets of US,
Europe and China. EBITDA at Rs. 2064 million in FY 2005, compared with Rs. 1659
in the previous year, recorded a growth of 24.4%. However, operating margins
were lower mainly due to increase in cost of some of the key raw materials.
Profit before tax (PBT) improved to Rs. 1503 Million (13.5% of net sales) from
Rs. 979 Million (11.3% of net sales), an increase of 53.5%.
Profit after tax (PAT) increased to Rs.1133 Million (10.2% of net sales)
from Rs. 802 Million (9.2% of net sales), an increase of 41.3%.
In line with the Company's strategy to continuously move up the value
chain, during the year, the company entered new businesses of development,
licensing and supply of dosage forms in Europe through acquisition of PSI and
PSI supply. The Company also entered the medicinal chemistry services business
and is setting up chemical research business through its wholly owned
subsidiaries, Jubilant Chemsys Ltd. and Jubilant Chinsys Ltd.
The Company alongwith its subsidiaries now have presence across the value
chain right from early stage drug discovery services to custom research and
manufacturing services for advance intermediates and fine chemicals to API,
dosage forms, regulatory affairs services and clinical research.
Pharmaceuticals and life science chemicals business continues to be the
growth driver for the Company. To meet the growing customers demand, the
Company has expanded the manufacturing capacities for its key business of CRAMS
and API. CRAMS business added a new multipurpose plant and a kilo lab operation
at the Gajraula facility. In API business, a semi commercial and multi purpose
facility and pilot plant were set up at Nanjangud.
The Company has significantly ramped up the R&D for the existing
businesses of CRAMS and API. The Company is also setting up a new formulations
development R&D center equipped with latest scientific equipment which will
be fully functional during FY 2006.
The company believes in respecting the IPRs of others and at the same
time developing and protecting its own IPRs. Patents are most valuable assets
of any knowledge-based organization such as Jubilant. The Company has developed
several novel processes for APIs, fine chemicals, performance chemicals and
feed additives. It has filed patent applications on all significant processes
developed through its R&D activities. To strengthen its presence in global
market, the Company has filed 61 patent applications out of which 5 patents are
granted and 9 are published in various countries including United States,
Canada, Europe and India.
CAPITAL
STRUCTURE
(a) FCCB ISSUE
During FY2005, the Company successfully issued 1.5% Foreign Currency
Convertible Bonds due 2009 (FCCB 2009) or an aggregate value of US $ 35
million. The Bonds are convertible at any time between June 14, 2004 and April
15, 2009 by holders into fully paid equity shares of Rs.5 each of the Company
or Global Depositary Shares ('GDSs') each representing one equity Share at an
initial conversion price of Rs.818.23 per share with a fixed rate of exchange
of Rs. 44.805 = U.S.$1. The conversion price is subject to adjustment in
certain circumstances. The Bonds may also be redeemed, in whole but not in
part, at the option of the Company at any time on or after May 14, 2007 and
prior to May 8, 2009, subject to satisfaction of certain conditions. Unless
previously converted, redeemed or purchased and cancelled, the Bonds will be
redeemed on May 15, 2009 at 113.70% of their principal amount. The FCCBs are
listed on Singapore Stock Exchange. The GDSs arising out of conversion of FCCBs
are listed on Luxembourg Stock Exchange. The FCCB 2009 proceeds were utilized
for European acquisition and capital expenditure.
Assuming full conversion of FCCBs into equity shares, 19,16,544 shares
would be allotted taking the paid up capital to Rs. 139 million.
On part conversion of US $ 0.5 million of FCCB 2009, the Company allotted
27,379 fully paid up Equity Shares of Rs. 5 each.
As on 31st March, 2005, FCCBs of US $ 34.5 million were
outstanding.
(b) PRIVATE EQUITY PLACEMENT
During the year under review, the Company allotted 2,424,273 fully paid
up Equity Shares of Rs. 5 each, at a premium of Rs. 820 per share, amounting to
Rs. 2 billion, on private placement basis to two foreign financial investors
viz. Citicorp International Finance Corporation and HPC (Mauritius) Limited in
accordance with SEBI guidelines.
SUBSIDIARIES
To have a clear business focus to service the global customers and to
enable international acquisition, the Company created six new subsidiaries
(four new international subsidiaries and two new Indian subsidiaries) in
addition to two existing subsidiaries. Thus, the total number of subsidiaries
of the company at present stands at eight. Brief particulars of each of the
subsidiaries are given below:
1. Jubilant Biosys Limited - It is a subsidiary of the Company since
2003-04. Currently, the Company holds 66.98% of its equity. Jubilant Biosys is
an innovative informatics company offering bio/chemo informatics databases to
global drug discovery pharma and biotech companies. During the year, the
company expanded its business operations in USA and its databases are used by
global customers for their early stage drug discovery programme.
2. Jubilant Chemsys Limited - It became a wholly owned subsidiary of the
Company during the financial year 2005. Jubilant Chemsys Ltd. offers medicinal
chemistry services to drug discovery companies. The company has set up an
R&D center in Noida to cater to global pharmaceutical companies on FTE or
molecule basis.
3. Jubilant Clinsys Limited - It became a wholly owned subsidiary of
Jubilant Organosys Ltd. during financial year 2005. A clinical research organization
(CRO), it would initially be providing bio equivalence and bio availability
studies for generic pharmaceutical companies and would conduct phase I clinical
trials for drug discovery companies. A 54 bed facility, including 8 bed ICU, is
being set up to undertake these studies and would start commercial operations
in 2005-06.
4. Jubilant Organosys USA Inc. - This is an existing wholly owned
marketing subsidiary undertaking sales and distribution in North American
market.
5. Jubilant Organosys (Shanghai) Limited - A wholly owned subsidiary
incorporated during the financial year 2005 essentially for sales and
distribution of the Company's products in China.
6. Jubilant Pharma N.V. - This company was incorporated during FY 2005 as
a wholly owned subsidiary to hold 80% of the equity of the two acquired Belgium
companies.
7. Pharmaceutical Services Incorporated N.V. -This Belgium company became
subsidiary of Jubilant Organosys Limited by virtue of its becoming subsidiary
of Jubilant Pharma N.V. during the financial year 2005. Jubilant Pharma N.V.
holds 80% equity of this company. This company offers regulatory affairs
services, which includes dossier development, market authorization and EU
release, to European generic companies.
8. PSI supply N.V. - This Belgium company became subsidiary of Jubilant
Organosys Ltd. by virtue of its becoming subsidiary of Jubilant Pharma N.V.
during FY 2005. Jubilant Pharma N.V. holds 80% equity of this company. PSI
supply is involved in development and supply of dosage forms to generic
companies in European market.
CORPORATE
GOVERNANCE
Corporate Governance Report and a certificate from the auditors of the
Company regarding compliance of conditions of Corporate Governance as
stipulated under Clause 49 of the Listing Agreements with Stock Exchanges, are
attached as Annexure C.
AWARDS
The efforts of the Company to be the best in each and every area of its
business and functions have been recognized by various organizations.
During the year, the company was given the following awards:
* Hewitt-CNBC TV-18 award for Top 5 Best Managed Workforce in India
* Six Sigma Quality award in All India CII Convention
* Greentech Safety award in chemical industry for outstanding achievement
in the field of safety
* Best HR Practices award by Centre for International Businesses
* PC Acharya award for Development of Indigenous Technology by ICMA
* DSIR award for Innovation in chemicals and allied industries
Secured Loan
Notes :
1. Term Loans from Punjab National Bank, Export
Import Bank of India and Indian Bank and Long Term Foreign Currency Loan of USD
5 million from Export Import Bank of India-are secured by a first charge by way
of :-
a) mortgage of the immovable assets and charge
by way of hypothecation on the movable assets, both present and future [Save
& except Book Debts and Bankers Goods as per Note 2 below and specified
exclusions listed in notes i to iv below] pertaining to the Company's
manufacturing facilities located at Bhartiagram, District Jyotiba Phoolay
Nagar, Uttar Pradesh and at Village Samlaya, Taluka, Savli, District Vadodara,
Gujarat. i specified land and buildings situated at Bhartiagram, District
Jyotiba Phoolay Nagar, Uttar Pradesh and constructed out of the financial
assistance granted by HDFC.
ii land and building located at Plot No 1A,
Sector 16A, Noida, Uttar Pradesh.
iii land & building of Active Pharmaceutical
Ingredients Unit located at Nanjangud, Mysore, Karnataka.
iv immovable assets of the Company situated at
Nimbut Village, District Nira, Pune, Maharashtara
b) hypothecation of fixed assets [other than
land and building as mentioned in a (iii)] both present and future pertaining
to the Company's manufacturing unit situated at Nanjangud, Mysore, Karnataka;
c) such charges to rank pari-passu amongst the
said chargeholders;
2. i) Working Capital Facilities sanctioned by
Consortium of Banks and notified Financial Institutions comprising of ICICI
Bank Limited, Corporation Bank, Punjab National Bank, Jammu & Kashmir Bank
Limited, Canara Bank, Syndicate Bank, Indian Bank, Export Import Bank of India,
ING Vysya Bank Ltd., ABN Amro Bank and Standard Chartered Bank are secured by a
first charge by way of hypothecation, ranking pari passu inter-se Banks, of the
entire Book Debts of the Company and Inventories both present and future at the
manufacturing facilities at Bhartiagram, District Jyotiba Phoolay Nagar, Uttar
Pradesh at Nimbut Village, District Nira, Pune, Maharashtra and at Village
Samlaya, Taluka, Savli, District Vadodara, Gujarat (save and except Book Debts
and Inventories related to IMFL business at Nimbut Village,District Nira, Pune,
Maharashtra and the modification of charge for excluding these assets is
pending) and at
Nanjangud, Mysore, Karnataka; ii) The Company
also has a Commercial Paper programme aggregating Rs. 2000 million within the
overall Working Capital Limits sanctioned to it by the Working Capital
Consortium. As on 31.03.05, there was no outstanding against the same. The
Company has availed Rs. 550 million against the said facility during the year
(Previous year Rs. 500 million).
3. Loans availed for financing purchase of
vehicles are secured by a first charge by way of an exclusive hypothecation of
the vehicles purchased out of the loan proceeds in favour of the lender.
4. Secured Loans includes loans of Rs. 281.30
million (Previous year Rs. 485.10 million) repayable within one year.
The company’s product range includes acetaldehyde, acetic acid,
acetic anhydride, ethyl acetate, VAM, TEP, carbon dioxide, ETO/CO2 mixtures,
chlormequat chloride, sulphuric acid, pyridine, picolines, lutidines,
collidines and pyridine derivatives.
The company sells its products under various brand names such as
Vamulsion, Vamisol, Vamitex, Vamitherm, Vamithane, Vamipol, Vamicol, Vamwhite,
Vambond, Vamigum, Vamibond, Vardan, Ripen, Anjilincs/Anicox, Anifur, Aflasil,
Anpol, Shakticol, Vamigum, Superglue 2001, Charmwood, Anichol, Brolay, Anisurf,
Ramban, etc.
The company is in trade terms with :
v
Agarwal Polysects Private Limited
v
Shivam Polymers
v
Udgam Metal Private Limited
v
Vishnu Timber Mart
v
Kumar Containers
v
Niranjan Containers (Private) Limited
Jubilant
Organosys is a collaborative, innovative provider of products and services to
the global life sciences industry, striving to accelerate the process of
pharmaceutical drug approval.
They have a presence across the pharmaceuticals value chain right from drug
discovery services, custom research and manufacturing services, advance
intermediates and fine chemicals to active pharmaceutical ingredients, dosage
forms and regulatory affairs services.
They also enjoy leadership in Industrial Products and Performance Polymer
products in India.
Vision
Ø To be among the top
10 most admired companies work for
Ø To maintain and
acquire the 1st and 2nd leadership position in the chosen
area of business in India
Ø To expand the
position of leadership in India of establish global presence
Ø To continuously
create new opportunities for growth in the strategic business
Ø To continuously
achieve a return on investment capital of at least 10 point higher than the
cost of capital
Promise
They will with utmost care fort
the environment, continue to enchase value For the customer by providing
Product and economically
efficient solution and for the shareholders through sales growth, cost
effectiveness and wise investment of resources.
VALUES
They will carefully select, train and develop their people
to be creative, empower them to take decisions, so that they respond to all
customers with agility, confidence and teamwork
They stretch theselves to be cost effective and
efficient in all aspects of the operations and focus on flawless delivery to create and provide the
best value to the customers
By sharing the knowledge and learning from each other and from the
markets they serve, they will continue to surprise the customers with innovative solutions
With
utmost care for the environment and safety,
they will always strive to excel in the quality of the processes, the products
and the services
Jubilant Organosys is
an integrated pharmaceutical industry player having presence across the
pharmaceuticals value chain. They are a collaborative and innovative provider
of products and services to the global life sciences industry, striving to
accelerate the process of pharmaceutical drug approval. The range of offerings
include drug discovery and development services, custom research and
manufacturing services, advance intermediates, fine chemicals, active
pharmaceutical ingredients, dosage forms and regulatory affairs services.
They are one of the largest Indian Custom Research
and
Manufacturing Services (CRAMS) and Drug Discovery Services companies and a
leading active pharmaceuticals ingredients company in India.
They are a Science Active company with more than 25 years of chemistry
knowledge in producing innovative products and processes by leveraging the
R&D expertise, knowledge driven operations and global scale manufacturing
capacities.
Jubilant Organosys has three subsidiary companies in India - Jubilant Biosys
Ltd. for bio/chemo informatics databases & drug discovery services,
Jubilant Chemsys Ltd. for medicinal chemistry services and Jubilant Clinsys
Ltd. for clinical research.
They have a strong
international presence, having international subsidiaries in USA, Belgium and
China. PSI N.V. and PSI Supply N.V., in which Jubilant Organosys holds 80%
equity, are the Belgium based pharmaceuticals companies providing regulatory
affairs services and supply of dosage forms to European generic companies.
Jubilant Pharmaceuticals, Inc., a subsidiary of Jubilant in USA, is a generic
pharmaceutical company having a US FDA approved manufacturing facility in the
USA. Clinsys, Inc., a wholly owned subsidiary, is a clinical research organization
(CRO) operating out of the USA. Jubilant Organosys also has marketing
subsidiaries in USA and China. Jubilant products are sold across the globe in
more than 60 countries.
The business is organized in three business segments:
Pharmaceuticals & Life Science Chemicals, Industrial Products and
Performance Polymers.
They have fthe manufacturing locations in India situated at Gajraula (in Uttar
Pradesh), Nanjangud (in Karnataka), Nira (in Maharashtra) and Samlaya (in
Gujarat) and a US FDA approved manufacturing facility for dosage forms in
Maryland, USA.
Globally, Jubilant Organosys is a leading manufacturer in defined product
segments, including select APIs (e.g., Carbamazepine and Citalopram), Pyridine
and its derivatives, Solid polyvinyl acetate, Vinyl Pyridine Latex and Organic
Intermediates (e.g., Ethyl Acetate and Acetic Anhydride).
2005 Acquires
Target Research Associates, Inc., renamed Clinsys Inc.; a US based Clinical
Research Organisation (CRO)
Acquires Trinity Laboratories, Inc. and its wholly owned subsidiary, Trigen
Laboratories, Inc., renamed Jubilant Pharmaceuticals, Inc., a generic
pharmaceutical company in USA having a US FDA approved formulations
manufacturing facility
Enters clinical research business by setting up wholly owned subsidiary
Jubilant Clinsys Ltd.
2004 Sets up medicinal chemistry services business through wholly owned
subsidiary Jubilant Chemsys Ltd.
Enters formulations and regulatory affairs businesses by acquiring
Pharmaceuticals Services Incorporated, N.V. and PSI Supply N.V., the
pharmaceutical companies in Europe.
2003
Sets up a new state-of-the-art Research & Development Centre
in Noida, near New Delhi equipped with all latest scientific instruments.
2002 Acquires the Active Pharmaceutical Ingredients business
2001 New corporate identity: Jubilant Organosys Ltd. reflecting changed
corporate and business profile
2000 Enters the Bio / chemo informatics arena by setting up Jubilant
Biosys Ltd.
1998
Enters high value-added Pyridine derivates. Commissions Pyridine
HBR and Cyano Pyridine plants. Forms marketing subsidiary in the USA.
Acquires acetyl plant in western India.
1997 Commissions first Multi-purpose fine chemicals plant. Plant for
food polymer commissioned.
1995 Gets ISO 9001 certification.
1990 Commissions Pyridine & Picoline plant.
1988 Launches its first branded product: Vamicol, an adhesive product.
1987
Introduces new products in Performance Chemicals segments: Poly
vinyl acetate emulsion for paint, textile, paper & packaging and
woodworking industry.
1985 Research & Development center gets recognition from Government
of India.
1983 Commercial production of Vinyl Acetate Monomer (VAM).
1981 Initial Public Offering. Listing on leading stock exchanges of
India.
1978 Incorporated as Vam Organic Chemicals Ltd.
Manufacturing capabilities are one of the key differentiator for
Jubilant Organosys. The Company has vertically integrated manufacturing
facilities for its range of Custom Research and Manufacturing Services, APIs,
Dosage Forms, Industrial Products and Performance Polymers businesses.
Jubilant Organosys has four manufacturing locations in India
situated at Gajraula (in Uttar Pradesh), Nanjangud (in Karnataka), Nira (in
Maharashtra) and Samlaya (in Gujarat). The Company also has a US FDA approved
manufacturing facility for dosage forms in Maryland, USA.
The progress that they have made across all corporate aspects has
secured for us recognition by various industry bodies, government and
non-government agencies in the form of awards and certifications.
Golden
Peacock award for Innovation Management - 2003
Six-sigma
Quality Award at the All India CII Convention -2004
The
Greentech Foundation Award for Environment Excellence
The
Energy Conservation Award (Chemical sector) from the Government of India for
the Gajraula unit
Best
Managed Manufacturing Plant for Single super phosphate by FAI - 2003
Best
HR Practices Award by Centre for International Businesses - 2004
P
C Acharya Award for Development of Indigenous Technology by ICMA - 2004
Top
5 Best Managed Workforce in India - Hewitt Award
The
DSIR Award for Innovation in Chemicals & Allied Industries
Recognition and Awards at Gajraula
Jubilant Organosys Ltd. is an integrated pharmaceutical industry
player offering products and services to global life sciences companies. They
are one of the largest companies in Industrial Products and Performance
Polymers in the product categories they operate in.
They have business interest in three main segments -
Pharmaceuticals & Life Science Chemicals, Industrial Products and
Performance Polymers. Each segment has independent growth units with clear
performance and growth objectives.
These businesses provide products and services to meet the demands
of the Pharmaceuticals, Agrochemicals, Construction, Food & Beverages,
Textile, Tyres and Paper & Packaging industries.
They
are the leading manufacturer - worldwide - in distinct product segments
including selective APIs, Pyridine and its derivatives, Solid Polyvinyl
Acetate, Vinyl Pyridine Latex and Organic intermediates such as Ethyl Acetate,
Acetic Anhydride and Acetaldehyde.
Jubilant believes that, only an innovative firm will continue to
achieve success in scientific, technological and social arenas in the coming
years.
Innovation is about instilling a mindset of entrepreneurial thinking,
flexibility, and organic growth - at every level of the organisation. The
organisation must learn to evolve continuously to meet, the customer and market
needs and create competitive advantage in this age of rapid change.
Jubilant is creating a culture of innovation to give a free rein to the
creative potential of the employees in order to develop fresh solutions and
bring tangible results in the fields of R&D, Contract Management and Human
Restheces.
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As responsible corporate citizens they, at Jubilant Organosys
Ltd., believe that sustainable growth is possible only when they take all the
stakeholders along with us in the journey of growth. The theylfare of the
communities around the workplaces and the environment forms an integral part of
the decision-making processes. They weigh all the commercial activities for its
impact on these key stakeholders.
They have a presence across the entire pharmaceuticals value chain with
facilities and establishments in the U.S., Europe and China. The global
footprint and success is the result not only of the strategy and efforts but
also the recognition of us being recognised as key, reliable and trustworthy
partners with a strong commitment to fulfilling the social responsibilities
while continuing to grow economically.
Jubilant Organosys Ltd became the first company in India to be the registered
Organisational Stakeholder of Global Reporting Initiative. This is both a
recognition and acknowledgement of the adherence to providing a safe working
environment to the employees and the communities around the areas of operation.
The reputation for high quality, reliability, trustworthy partners and being
responsible corporate citizens make us an outstanding partner of choice.
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
|
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 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |