MIRA INFORM REPORT
|
Report
Date : |
3rd
November, 2006 |
IDENTIFICATION
DETAILS
|
Correct
Name : |
VIRCHOW LABORATORIES PRIVATE LIMITED |
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Registered
Office : |
Plot No.
4 To 10, SV Co-Operative Industrial Estate, IDA, Jeedimetla, Hyderabad – 500
055, Andhra Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date
of Incorporation : |
20.01.1982 |
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Com.
Reg.: |
01-3368 |
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CIN
No.: [Company
Identification No.] |
L24232AP1982PLC003368 |
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TAN
No.: [Tax Deduction & Collection Account No.] |
HYDV00173F |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Manufacturers
and Sellers of Dextroproxy Phene-HCL, (Bulk Drug) Ethambutol HCL (Bulk Drugs)
D-Oxyphene (Drug Interemediaries). |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
2750000 |
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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 having satisfactory track. Directors are reported as experienced,
respectable and resourceful industrialists.
Their trade relations are reported as fair. As per available information, financial position of the company
is good. Payments are usually correct
and as per commitments. The
company can be considered for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered/
Factory Office : |
Plot No.
4 To 10, SV Co-Operative Industrial Estate, IDA, Jeedimetla, Hyderabad – 500
055, Andhra Pradesh, India |
|
Tel.
No.: |
91-40-23096688/23095566/23098205/5588/
8637 |
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Fax
No.: |
91-40-23096677/23098205 |
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E-Mail
: |
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Website
: |
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Branches
: |
Located
at:- Daman, Union Territory |
DIRECTORS
|
Name : |
Dr. L. V.
Subba Reddy |
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Designation
: |
Director |
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Name : |
Dr.
Ravindra Reddy |
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Designation
: |
Director |
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Name : |
Dr. P.
Gargi |
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Designation
: |
Director |
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Name : |
Mr. M.
Lakshmiprassanna |
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Designation
: |
Director |
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Name : |
Dr. N.
Hemanath |
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Designation
: |
Director |
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Name : |
Mr. N.
Prashanth |
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Designation
: |
Wholetime
Director |
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Name : |
Mr. M.
Narayana Reddy |
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Designation
: |
Wholetime
Director |
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Name : |
Dr. N.
Venkata Reddy |
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Designation
: |
Wholetime
Director |
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Name : |
Mr. L. V.
Subash |
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Designation
: |
Wholetime
Director |
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Name : |
Ms. M.
Sudha |
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Designation
: |
Wholetime
Director |
MAJOR SHAREHOLDERS
There are 25 shareholders.
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
and Sellers of Dextroproxy Phene-HCL, (Bulk Drug) Ethambutol HCL (Bulk Drugs)
D-Oxyphene (Drug Interemediaries). |
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|
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Exports
to : |
UK. |
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Imports
from : |
Germany |
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Terms
: |
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Purchasing : |
Secured terms. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Sulphamelthoxazole |
Tons |
2400.000 |
3600.000 |
3734.116 |
GENERAL INFORMATION
|
No. of
Employees : |
25 |
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|
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Bankers
: |
UTI Bank,
R. P. Road, Secunderabad – 500 003, Andhra Pradesh |
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Banking Relations : |
Satisfactory |
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Auditors
: |
A. M.
Reddy & Company Chartered
Accountants |
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Address
: |
10-5-6/B,
2nd Floor, Flat No. 103, My Home Plaza, Masabtank, Hyderabad – 500
028, Andhra Pradesh |
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Tel.
No.: |
91-40-23316426/23316912 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
150000 |
Equity
shares |
Rs. 100/- each |
Rs. 15.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
117457 |
Equity
shares |
Rs. 100/- each |
Rs. 11.755 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 |
11.754 |
11.754 |
11.755 |
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|
2]
Reserves & Surplus |
696.017 |
600.534 |
464.335 |
|
NETWORTH
|
707.771 |
612.288 |
476.090 |
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|
LOAN
FUNDS |
|
|
|
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|
1]
Secured Loans |
345.094 |
19.232 |
9.646 |
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2]
Unsecured Loans |
170.708 |
141.056 |
222.074 |
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TOTAL
BORROWING
|
515.802 |
160.288 |
231.720 |
|
|
DEFERRED
TAX LIABILITIES |
13.915 |
13.976 |
13.432 |
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|
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|
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TOTAL
|
1237.488 |
786.552 |
721.242 |
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APPLICATION OF FUNDS
|
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|
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FIXED ASSETS [Net Block]
|
160.582 |
137.936 |
138.614 |
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Capital work-in-progress
|
17.067 |
8.553 |
3.641 |
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INVESTMENT
|
45.686 |
8.324 |
83.214 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
97.816 |
75.372
|
92.539
|
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Sundry Debtors
|
400.860 |
403.309
|
292.883
|
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Cash & Bank Balances
|
3.956 |
20.820
|
3.754
|
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Loans & Advances
|
576.554 |
226.247
|
196.428
|
Total Current Assets
|
1079.186 |
725.748 |
585.604
|
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
65.033 |
94.009
|
89.831
|
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Provisions
|
0.000 |
0.000
|
0.000
|
Total Current Liabilities
|
65.033 |
94.009 |
89.831
|
|
Net
Current Assets
|
1014.153 |
631.739 |
495.773
|
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TOTAL
|
1237.488 |
786.552 |
721.242 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
1555.491 |
1533.838 |
1362.633 |
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|
|
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Profit/(Loss) Before Tax
|
148.811 |
193.250 |
188.789 |
Provision for Taxation
|
53.329 |
57.050 |
53.263 |
Profit/(Loss) After Tax
|
95.482 |
136.200 |
135.526 |
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Total Expenditure
|
1406.679 |
1340.587 |
1173.845 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
6.14 |
8.88 |
9.94
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Net Profit Margin
(PBT/Sales) |
(%) |
9.57 |
12.60 |
13.85
|
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
12.00 |
22.38 |
26.06
|
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Return on Investment (ROI)
(PBT/Networth) |
|
0.21 |
0.32 |
0.39
|
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Debt Equity Ratio
(Total
Liability/Networth) |
|
0.82 |
0.42 |
0.67
|
|
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|
Current Ratio
(Current
Asset/Current Liability) |
|
16.59 |
7.72 |
6.51
|
LOCAL AGENCY FURTHER INFORMATION
Sulfamethoxazole
(SMZ) is a key anti-bacterial agent used by millions worldwide. The company takes pride in producing this
Active Pharmaceutical Ingredient that has held it's own against global
competition. This achievement comes from quality products, ethical business
practices, quality vendors, good financial strength and an impeccable reputation
as a reliable supplier with adherence to delivery schedules.
The policy
of total excellence that has been the driving philosophy from its inception in
1983 has made company the acknowledged world leader in the manufacture of SMZ.
Today, the company is the preferred supplier to pharmaceutical giants worldwide
and its impressive list of customers includes Glaxo Smithkline, Shionogi &
Company Limited, Roche, Merck Generics and Sanofi Synthelabo.
CREDO
v
A
world class manufacturing facility is necessary to meet the exacting needs of
customers.
v
Sustainable
growth is possible only through continuous technological up gradation and
process optimization
v
Manufacture
of quality products is possible only by strict adherence to Good Manufacturing
Practices
v
The
view of environmental concerns as intrinsic to manufacturing processes is an
essential component of the drive to excellence
v
Success
should be measured through customer satisfaction
Production Facilities
The perfect union of
man, machine and methodologies
The Virchow plant is located in a spread of 16 acres in Hyderabad, India. The
built-up area is over 100,000 sq.ft. The plant is totally dedicated to the
production of only SMZ. State of the art equipment and a highly trained and
motivated workforce work in tandem to produce a product that is highly rated
the world over for its consistent quality.
Subject
also produces all the critical high purity raw materials and intermediates such
as Sodium Methoxide, Isoxamine and N-Acetyl Sulfanilyl Chloride resulting in an
efficient and controlled manufacturing process and an assured final product
quality.
The SMZ manufacturing process is highly mechanized
and utilizes efficient modern equipment like micro-processor controlled bottom
discharge centrifuges, spin flash driers, packed bed distillation columns, air
cyclone separators, vapor absorption cooling systems and a range of other
sophisticated equipment.
The state
of the art production facilities and extensive manufacturing experience gained
over the past 20 years has enabled Virchow to optimize its manufacturing
process and attain leadership status in the manufacture of SMZ.
Ensuring peak efficiency at all times to deliver a
better product for healthcare:-
v
Economies
of large scale production
v
Dedicated
production equipment
v
Highly
optimized production processes
v
Total
intermediate production
v
Mechanized
operation in critical stages
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. 44.84 |
|
UK Pound |
1 |
Rs. 85.55 |
|
Euro |
1 |
Rs. 57.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 |
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 |