MIRA
INFORM REPORT
|
Report Date : |
1st
November 2006 |
IDENTIFICATION
DETAILS
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Name : |
BIOTECH
SOLUTIONS |
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Registered Office : |
Flat
No. 11 Pocket A-4, Konark Apartments, Kalkaji Extension, New Delhi 110019,
India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
2003 |
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Legal Form : |
A Sole
Proprietorship Concern |
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Line of Business : |
Importers
and suppliers of life sciences and biotech products |
RATING & COMMENTS
|
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
7500 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
The
inquired address is the subject’s office-cum residence address. During our
field visit we met Mrs Dhawan. We could not exactly establish the facts about
their business activities. We have also seen a name plate on box and they
displayed on their flat. The subject is importing and supplying life science
and bio tech products. The
subject claims that they are importing on the purchasing terms of DP at sight
(via wire transfer) they make the payments to their supplier. Subject
appears to be a small concern. Trade relations are fair. Payment are usually
correct and as per commitments. The
concern can be considered normal for business dealings at usual trade term
and considered. |
LOCATIONS
|
Registered Office : |
Flat
No. 11 Pocket A-4, Konark Apartments, Kalkaji Extension, New Delhi 110019,
India |
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Tel. No.: |
91-11-11-26093819 |
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Mobile No.: |
91-9868267463 |
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Fax No.: |
91-11-11-26093819 |
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E-Mail : |
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Area : |
Owned
– 1500 sq.fts. |
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Location : |
Residential |
SOLE PROPRIETOR
|
Name : |
Mr.
Sandeep Dhawan |
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Designation : |
Proprietor |
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Address : |
Flat
No. 11 Pocket A-4, Konark Apartments, Kalkaji Extension, New Delhi 110019,
India |
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Date of Birth/Age : |
38
years |
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Qualification : |
Graduate
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Experience : |
14
years |
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BUSINESS DETAILS
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Line of Business : |
Importers
and suppliers of life sciences and biotech products |
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Products : |
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Imports from : |
Germany,
UK, Australia, USA and Other European Countries |
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Terms : |
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Selling : |
Credit
(30 to 45 day) |
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Purchasing : |
DP at
sight and 100% Documents against Payments (Via Wire Transfer) |
GENERAL
INFORMATION
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Customers : |
Research
Institutions Medical
Colleges Government
/ Private Hospitals |
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No. of Employees : |
7 |
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Bankers : |
Punjab
National Bank |
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Banking Relations : |
Satisfactory
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CAPITAL STRUCTURE
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Capital
Investment : |
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Owned : |
Rs.
1.500 millions |
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Borrowed : |
-- |
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Total : |
Rs.
1.500 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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7.500 |
6.500 |
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Profit/(Loss)
Before Tax |
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0.175 |
0.125 |
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Profit/(Loss)
After Tax |
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0.175 |
0.100 |
KEY
RATIOS
|
PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.33 |
1.54 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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2.33 |
1.92 |
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Return
on Investment (ROI) (PBT/Networth) |
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|
17.50 |
11.76 |
LOCAL AGENCY
FURTHER INFORMATION
The
concern is in trade terms with :
- Authorised Distributor :
Life Bio Process, Australia
- Eurothem
- Igeneon GmbH, Germany
Subject
imports Biotech and Life Science products and supplies to research
institutions, hospitals and universities throughout India.
Projected
turnover for the financial year ending March 31, 2007 : - Rs. 10.000 millions
The
Indian pharmaceutical industry is one of the world’s largest, ranking 4th
in terms of volumes and 13th in terms of value in the global
pharmaceutical market. In 2005, Domestic pharmaceutical sale were US $ 4.5
billion, growing at CAGR (Compound annual growth rate) of 8.59%. The Indian
pharmaceutical industries characterised by a multitude of manufacturers. These
are predominantly mslall manufacturers, focusing on either active pharmaceutical
ingredients (APIs) of formulations. Until the advent of product patents in
January 2005, only process patents were
applicable in India, which effectively made it a low cost, generic
market. As a result, manufacturing expertise and efficiency were the only
requirements to participate in this industry, creating low barriers of entry.
As a
result, the leading Indian pharmaceutical companies have become some of the
most efficient manufacturing units in the world. In fact, India has the highest
number of US FDA (Food and Drug Administration) certified manufacturing
facilities outside the United States. There are an increasing number of
opportunities with large Indian manufacturers and contract manufacturing
organizations for the increasingly cost-conscious multinational.
One of
the major factors that has increased the confidence of foreign multinationals
looking for local opportunities in India is the adoption of new product patent
regime in January 2005. a new patent regime has changed the dynamics of the
India pharmaceuticals industry in other respects, too. Several leading domestic
producers have begun to conduct original research into new chemical entitles
and novel drug delivery systems. However these companies, because few Indian
companies can afford the high costs and failure rates associated with
developing an NCE. In this context, several Indian firms have already entered
into research partnerships with multinationals. Some pharmaceutical MNCs like
AstraZeneca have opened their own captive research centers in India to take
advantage of the low costs as well as availability of high quality intellectual
work force.
The
Indian government is also giving the biotechnology sector a big push by
bringing out for the first time a comprehensive national biotechnology policy.
Biotechnology in India is developing in cluster zones that have reputable and
established public life science research institutes at their centers. Various
state governments are also individually coming out with their own biotechnology
policies and are actively setting up biotechnology parks to facilitate research
in new therapeutic options using cutting –edge technology. Hence, drug
discovery outsourcing will be an option at which MNCs will be looking while
evaluating India’s collaborative R & D attractiveness.
Around
40% of MNC’s operating in India are either conducting or planning to conduct
clinical trials in India. Many big CROs including Quintiles have also set up in
India to take advantage of the positive environment. However lack of data
exclusivity is probably the main restraint to continued growth of the clinical
trials sector.
India’s well-established competencies in computer
science and software, as well as a large pool of trained professionals in life
sciences, form the bedrock for a flourishing bio informatics industry in India.
However, the lack of experience in building and selling software tools and
products (most Indian companies have hitherto focused on the delivery of
software services), has been a hidrance in the successful growth of
products-based bioinformatics companies. Meanwhile, bioinformatics companies
focused on services provision have flourished in India. The services offered
range from manual curation of literature, analysis of protein structure images (obtained
through X-ray crystallography) to in-silico toxicology testing. Global
pharmaceutical and biotechnology companies have the opportunity to selectively
outsource services to the Indian bioinformatics industry, as well as source
specialized software tools and databased from these companies.
While
developing an Indian collaborative R & D strategy, pharmaceutical MNCs
should keep in mind certain issues like data IP security, performance metrics,
and quality standards, and address and evaluate these upfront to ensure and
successful relationship.
India is
becoming an increasingly attractive destination for R & D activities in the
pharmaceutical industry. A variety of factors, from changing IP and patent
laws, via favourable cost / skill ratios, to the past success of outsourcing in
the IT field, have converged to create a compelling business opportunity for
Indian companies in pharmaceutical R & D. Global pharmaceutical companies
can exploit this opportunity by developing an India Strategy to enhance and complement
their existing R & D efforts.
Biotechnology
is an emerging sector in India. It accounted for just percent of the global
biotechnology market in 2003. the Biotech industry in India is confidently
looking forward to reaching the 5 billion mark by 2010, which would catapult it
to the club of the world’s top 5 biotech hubs.
The
Indian biotechnology market has a growth rate of 36.5 percent per annum that is
amongst the hightest in the world. Although it presently commands and market
share of just 2 per cent of global revenues, India has great potential to
become a significant player in the global biotech market by 2010. India already
has the largest vaccine production capacity in the world and can carve a
significant niche in such emerging segments as vaccines, diagnostics and
clinical trials.
India
has been leveraging its strong information technology (IT) base, human
expertise and low cost research and development (R & D) to establish and
strengthen its presence in the global biotechnology market. Biotechnology is belived to be the next major dirver of
growth in India. After information technology in the 1990s. The government of
India (Gol) has taken special initiatives to promote india’s biotech industry.
The Gol has more than doubled the biotech research Plan outlay, from Rs. 6.22
billion in the Ninth Plan (1997-2002) to Rs. 14.5 billion in the 10th
Plan (2002-2007) apart from funding, the Gol has eased the regulatory framework
by approving genetically modified crops and recombinant DNA products ; as well
as ethical stem cell research.
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.44.84 |
|
UK
Pound |
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.57.28 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
|
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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