MIRA
INFORM REPORT
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Report Date : |
13.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
NATCO PHARMA LIMITED |
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Registered Office : |
Natco
House, Road No. 2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.09.1981 |
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Com. Reg. No.: |
01-3201 |
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CIN No.: [Company
Identification No.] |
U24230AP1981PLC003201 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDN00304D
/ HYDN00010D |
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Legal Form : |
A public limited liability company.
The Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of bulk drugs, intermediates, formulations, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
5750000 |
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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 company having satisfactory track. Trade relations are
fair. Financial position is satisfactory. Payments are usually correct and as
per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
Natco
House, Road No. 2, Banjara Hills, Hyderabad – 500 033, Andhra Pradesh, India |
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Tel. No.: |
91-40-23547532 |
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Fax No.: |
91-40-23548243
/ 23545298 |
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E-Mail : |
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Website : |
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Factory : |
PHARMA DIVISION Kothur
Post and Mandal, Mahaboobnagar Dist.- 509 228, Andhra Pradesh Phone
: 91-8548-257289 /257173 E-mail
: kothur@natcopharma.co.in PHARMA DIVISION-PARENTERALS Vijaypuri
North, Nagarjuna Sagar, Nalgaonda Dist. - 508 202, Andhra Pradesh Phone
: 91-8680-276661 CHEMICAL DIVISION Mekaguda,
Kothur Mandal, Mahaboobnagar Dist. - 509 228, Andhra Pradesh. Phone
: 91-8548-257400 / 257401/257403 E-mail
: mekaguda@natcopharma.co.in CHEMICAL - R & D DIVISION B-13,
Industrial Estate, Sanathnagar, Hyderabad - 500 018, Andhra Pradesh. Phone
: 91-040 -23710575 PHARMA DIVISION Plot No. 19, Pharma City, Selaqui Industrial
Area, Vikas Nagar Dehradun- 248 001. |
DIRECTORS
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Name : |
Mr. V. C. Nannapaneni |
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Designation : |
Chairman & Managing Director |
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Date of Birth/Age : |
59
years |
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Qualification : |
M.
Pharma, MS |
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Experience : |
28
years |
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Date of Appointment : |
3/10/1981 |
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Previous Employment : |
Incharge
of Quality Assurance and R & D TIME CAP INC, USA |
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Name : |
Dr. K. U. Mada |
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Designation : |
Director |
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Name : |
Mr. G. S. Murthy |
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Designation : |
Director
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Name : |
Dr. B. S. Bajaj |
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Designation : |
Director |
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Name : |
Dr. M. Rami Reddy |
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Designation : |
Director |
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Name : |
Mrs. Durgadevi Nannapaneni |
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Designation : |
Whole
time Director |
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Name : |
Dr. P. Khadgapathi |
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Designation : |
Director
and Executive Vice President |
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Name : |
Mr.
Rajeev Nannapaneni |
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Designation : |
Director & Chief Operating Officer |
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Date of Appointment : |
31.12.2005 |
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Name : |
Mr. P.
Bhaskara Narayana |
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Designation : |
Director & Chief Financial Officer |
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Date of Appointment : |
30.11.2005 |
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Name : |
Mr.
Mukul Sarkar |
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Designation : |
Director - Export-Import Bank of India Nominee |
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Date of Appointment : |
30.12.2005 |
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Name : |
Dr Jasti Samba Siva Rao |
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Designation : |
Director |
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Date of Appointment : |
20.04.2006 |
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Name : |
Mr.
M. Adinarayana |
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Designation : |
Company Secretary & General Manager
(Corporate Affairs) |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Indian Promoters |
7528793 |
43.31 |
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Foreign Promoters |
903540 |
2.50 |
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NRI’s/OCBs |
240260 |
1.38 |
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Mutual Funds and UTI |
1860 |
0.01 |
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Bodies Corporate |
4308919 |
24.79 |
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Public |
4394348 |
25.28 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of bulk drugs, intermediates, formulations, etc. |
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Products : |
Ø Diltiazem Ø Omeprazole Ø Lansoprazole Ø Isosorbides Ø Sumartriptan Succinate Ø Ondanssetron Ø Sertraline Ø Granisetron Ø Paroxetine Ø
Newer Quinolones and fourth
generation Cephalosorins are expected to be
launched soon |
GENERAL
INFORMATION
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Customers : |
Ø Procter & Gamble (India) Limited Ø Wyeth Lederle Limited Ø Ranbaxy Laboratories Limited Ø Sun Pharmaceutical Industries Limited Ø
Dr. Reddy's Laboratories Limited |
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No. of Employees : |
1950 |
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Bankers : |
v
Allahabad Bank v
State Bank of India v
Corporation Bank v
Oriental Bank of Commerce v Export-Import Bank of India |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Brahmayya & Company Chartered Accountants, 403 & 404, Golden Green Apartment, Irrum
Manzil Colony, Hyderabad - 500 082 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity
shares |
Rs.
10/- each |
Rs.
300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
27,174,414 |
Equity
shares |
Rs.
10/- each |
Rs. 271.744 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
271.744 |
261.614 |
233.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1205.135 |
874.846 |
656.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1476.879 |
1136.460 |
889.800 |
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LOAN FUNDS |
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1] Secured Loans |
634.369 |
850.944 |
1038.700 |
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2] Unsecured Loans |
166.159 |
261.328 |
16.300 |
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TOTAL BORROWING |
800.528 |
1112.272 |
1055.000 |
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DEFERRED TAX LIABILITIES |
149.957 |
157.733 |
0.000 |
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TOTAL |
2427.364 |
2406.465 |
1944.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1189.818 |
961.768 |
968.600 |
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Capital work-in-progress |
106.781 |
88.992 |
51.600 |
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INVESTMENT |
166.242 |
147.043 |
21.400 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
423.248
|
380.010 |
375.900 |
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Sundry Debtors |
334.188
|
331.471 |
479.600 |
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Cash & Bank Balances |
272.776
|
463.270 |
32.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
438.790
|
439.989 |
443.800 |
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Total Current Assets |
1469.002
|
1614.740 |
1331.800 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
529.875
|
467.560 |
526.200 |
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Provisions |
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Total Current Liabilities |
529.875
|
467.560 |
526.200 |
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Net Current Assets |
939.127
|
1147.180 |
805.600 |
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MISCELLANEOUS EXPENSES |
25.396 |
61.482 |
97.600 |
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TOTAL |
2427.364 |
2406.465 |
1944.800 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1858.045 |
1757.909 |
1530.200 |
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Profit/(Loss)
Before Tax |
272.167 |
7.497 |
140.100 |
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Provision
for Taxation |
34.233 |
[8.071] |
53.000 |
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Profit/(Loss)
After Tax |
237.934 |
15.568 |
87.100 |
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Export
Value |
805.837 |
918.526 |
NA |
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Import
Value |
124.752 |
111.295 |
NA |
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Total
Expenditure |
1560.878 |
1516.020 |
1207.500 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
430.800 |
469.500 |
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Other Income |
|
78.100 |
84.000 |
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Total Income |
|
508.900 |
553.500 |
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Total Expenditure |
|
373.300 |
407.000 |
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Operating Profit |
|
135.600 |
146.500 |
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Interest |
|
17.800 |
18.000 |
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Gross Profit |
|
117.800 |
128.500 |
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Depreciation |
|
18.400 |
19.800 |
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Tax |
|
18.700 |
11.100 |
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Reported PAT |
|
80.700 |
97.600 |
200606 Quarter 1 -
Expenditure Includes (Increase) /
Decrease in Stock in Trade Rs (18.80)million Consumption of Raw Materials Rs
200.90 million Staff Cost Rs 49.40 million Other Expenditure Rs 141.80 million
Tax indicates Taxation (including Fringe Benefit Tax) EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended June 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 43 Complaints disposed off during the quarter 43 Complaints
unresolved at the end of the quarter Nil 1.The above unaudited financial
results for the three months ended on June 30, 2006 were considered and taken
on record by the Board of Directors at a meeting held on July 31, 2006.
200609 Quarter 2 –
Expenditure Includes (Increase) /
Decrease in Stock in Trade Rs 4.70 million Consumption of Raw Materials Rs
182.40 million Staff Cost Rs 59.10 million Other Expenditure Rs 160.80 million
Tax indicates Taxation (including Fringe Benefit Tax) EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 58 Complaints disposed off during the quarter 58 Complaints
unresolved at the end of the quarter Nil 1. The above unaudited financial
results for the three months ended on September 30, 2006 were considered and
taken on record by the Board of Directors at a meeting held on October 26,
2006. 2. The Board had recommended an interim dividend of Rs 1.25 per share.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.73 |
1.13 |
1.55 |
|
Long Term Debt-Equity Ratio |
0.38 |
0.55 |
0.67 |
|
Current Ratio |
1.37 |
1.29 |
1.18 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.13 |
1.33 |
1.31 |
|
Inventory |
4.21 |
4.50 |
4.07 |
|
Debtors |
5.08 |
4.19 |
3.16 |
|
Interest Cover Ratio |
4.39 |
1.39 |
2.04 |
|
Operating Profit Margin(%) |
24.75 |
14.38 |
22.37 |
|
Profit Before Interest And Tax
Margin(%) |
20.83 |
10.94 |
19.07 |
|
Cash Profit Margin(%) |
17.99 |
6.93 |
9.34 |
|
Adjusted Net Profit Margin(%) |
14.06 |
3.49 |
6.04 |
|
Return On Capital Employed(%) |
15.87 |
9.49 |
16.50 |
|
Return On Net Worth(%) |
18.21 |
6.21 |
12.24 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.116.80/- |
|
Low |
Rs.113.90/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Incorporated in Sep.'81 as Natco Fine Pharmaceutical
Limited, it became a deemed public company with effect from July 1992 and in February
1993, it changed its name to Natco Pharma (NPL). The company began to
manufacture conventional and time-release dosage forms of life-saving drugs.
The company is a contract manufacturer for reputed companies like Ranbaxy and
Parke Davis. It has also obtained the coveted ISO 9002 certification, which
will boost exports. It has initiated registration proceedings (for its
formulations) in over 20 countries.
To channelise its operations in the USA, the company has formed a new
subsidiary, Natco Pharma, USA. It has entered into research collaborations with
Regional Research Laboratories, Jammu, for keto-L-gluconic acid (a penultimate
for iso-ascorbic acid), with the Centre for Cellular and Molecular Biology for
synthetic peptides and with the Central Leather Research Institute for oral
vaccines. The company has introduced drugs like diltiazem, mononitrate, etc, in
time-release form. Natco Laboratories, Natco Parenterals and Karanth
Pharmaceuticals have merged with the flagship company, NPL to capitalise on the
opportunities in the post-GATT era, to provide a large asset base and to
increase high-technology capability.
During 1995-96, the company has implemented the project for formulations in the
USA. As a part of its diversification plans, the company is participating in
the development of Krishnapatnam Industrial Port City Project, Nellore
District, in collaboration with ITOCHU, Japan; Flour Daniels, USA; and HAM,
Netherlands to create infrastructure. During 1996-97, the company entered into
a agreement whereby Ranbaxy Laboratories (RLL) acquires rights in marketing
certain products of the company in Russia, Ukraine and other countries of CIS.
Krishnapatnam Port Project has succeeded in signinig up with the UK based Indo
British Port Development Consortium to develop the project. Natco is a minority
participant in this project. The Andhra Pradesh government has extended the
time allowed for time closure of Krishnapatnam Port project by another 2 years.
The project is now proposed to be developed in 2 phases. In the first phase,it
proposed to contrct 2 berths-one for loading and another for unloading. This
facility is expected to be operational by August/September, 2002 and
thereafter, lighter age operations could commence.
Milestones of NATCO Pharma Limited
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Ø Incorporated - 1981.for manufacture of pharmaceutical formulations. |
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Ø First full year in Operations - 1984 - sales Rs. 0.5 million. |
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Ø Pioneered Timed Release, a delayed acting sustained release
technology. Achieved a rare feat of
introducing the largest array of timed release products based on zero order
release concept of Microdialysis Cell Technology. |
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Ø Started parenteral manufacturing facility at Nagarjunasagar, India. -
1986. |
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Ø Acquired Dr. Karanth Pharma Chemical Labs, a small bulk drug
manufacturer,now known as NATCO Research Center. |
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Ø Established bulk drug and Intermediate facility at Mekaguda, India.
This facility is TGA approved, and certified for its environmental management
systems (ISO-14001). |
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Ø State of the art manufacturing facilities - cGMP, ISO 9002 certified
dosage facility. |
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Ø A wide distribution network, Indian & International. |
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Ø Merged three of the group companies with the parent, NATCO Pharma
Limited - 1995. |
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Ø Granted US Patent for its manufacturing process of Omeprazole. |
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Ø Launched anti-cancer drug-Imatinib Mesylate 100 mg capsules under
the brand name - VEENAT. Process
developed in-house. |
The company's fixed assets of important
value include land, buildings, plant & machinery, electrical installation,
generator, air-conditioner, R & D equipment, factory equipment, lab
equipment, data processing equipment, office equipment, furniture &
fixture, vehicles and library.
Performance Review:
In spite of pressure on realizations of certain key Active Pharmaceutical Ingredients (APIs), the Company's performance was satisfactory.
After accounting for all expenditure, the operational surplus for the
fiscal 2006 was Rs. 297.2 millions (against Rs. 241.9 millions for the fiscal
2005).
Operational Review & Future Outlook: API Division:
The year under reference witnessed a reduction in the realizations for
certain of the specialty Active Pharmaceutical Ingredients that the company has
been manufacturing and marketing. Nevertheless, the division has been able to
clock a turnover of Rs. 864.7 millions during the year.
A new multi utility production block, with a
unique "flow-down" technique (which ensures savings both on account
of space, costs and resources) has been commissioned. With the commissioning of
this block, the division has been able to substantially augment its capacities.
The Company's API facility is now one of the most modern plants,
facilitating simultaneous production of ten APIs. The facility continues to
enjoy US FDA, Australian TGA and ISO:14001 certification.
The company strives to maintain the API
division on par with world class standards and the division continues to
produce high value, low volume specialty drugs, almost all of which are
exported. In addition, the division also concentrates on production of certain
niche anti-cancer APIs, which are used for captive
onsumption. These capabilities would certainly go hand-in-hand with the
finished dosage pharmaceutical formulations division, where the objective is to
become a top league player in the domestic oncology market.
Broadly, the sub-segments under the API segment include (a) supplies to
regulatory markets, consisting mainly of anti-depressants, anti-migraine,
cyto-toxic and non-cytotoxic APIs, (b) peptides and (c) sterioids. The company
is well established in API supplies to regulated markets, while efforts are on
to establish the cyto-toxic facilities and facilities for peptides and
steroids, and are expected to be operational in the year 2007.
With the FDA approval in place and with the skills that the division has
developed over a period of time - both in terms of understanding the production
techniques, the chemistry involved – this division aims to concentrate on a
significant portion of the world market. As a part of achieving this goal, the
division has entered into a definitive supply agreement with Akorn, Inc., a US
based company for the supply of two APIs - an anti-emetic and hyper calcemia -
on a margin sharing basis. Under this agreement, the Company will supply APIs
for both drug products, while the US Company will focus on manufacturing the
finished product, regulatory submissions, marketing and distribution in the
hospital, clinical and home healthcare markets in the US and Canada. In its
efforts to gain recognition for the Company's products in global markets the
company continues to pursue the process of filing DMFs. The following table
indicates their status.
Operational Review & Future Outlook : Finished Dosage Formulation
Division :
The performance of the Finished Dosage Formulations division is a matter
of great satisfaction for the company.
The growth in the division has been primarily driven by the domestic
oncology market, where the company has successfully made deep inroads. In terms
of revenues, the company is now ranked as # 2 from among the Indian
companies operating in the oncology segment, having crossed the Rs. 40 Millions
per month revenues as on the date of this report. With further launches slated
in the fiscal 2006-2007, the company expects to catapult itself into # 1
position. The launches include products in the Oncology and non-oncology
segment and are expected to significantly contribute to the revenues of the
Company while improving its market share In the respective therapeutic
segments.
Company Profile
NATCO Pharma Limited is an Indian
enterprise molded by global aspirations. This has always demanded a
preparedness and long- term organizational vision that can encompass the
turbulences and paradoxes of shifting terms and terrain's of business.
BACKGROUND
Beginning:- NATCO PHARMA
was promoted by Mr. V.C.Nannapaneni in the year 1981 as a Private Limited
Company to be in the business of Research, Developing, Manufacturing and
Marketing of Pharmaceutical Substances and Finished Dosage forms for Indian and
International markets. NATCO PHARMA began operations in 1984 in Andhra Pradesh,
India.
First Success :- In the
first year of its operations it achieved a sales figure of Rs. 0.5 million. The
company's first product was Cardicap, which is an Anti-Anginal drug. Since then
the company has introduced many dosage forms into the market. By 1985 it had
dosage forms in Cardiovascular, Anti-cold, Anti-Asthmatic and Antibiotic
segments. NATCO has the credit of having pioneered Time Release Technology in
India.
The Journey:- NATCO
PHARMA was ranked 82nd in sales among Indian Pharmaceutical companies in 1994.
NATCO also has the credit of being one of the largest contract manufacturers in
India. Some of the well-known companies like Ranbaxy, Dr. Reddy's Laboratories,
John Wyeth etc.get their products manufactured by NATCO.Merged NATCO PHARMA
grew in size when three companies
Ø Natco Parenterals Limited
Ø Dr. Karanth Pharma Labs Private Limited
Ø Natco Laboratories Limited
merged with
it.
Today :- NATCO
PHARMA LIMITED, which began its operations as a single unit with 20 employees,
today has four manufacturing facilities and employs around 1500 people. It has
an on-line data for analysis and decision making. Consistently ranked among the
fastest growing pharmaceutical companies in the country, Natco is utilizing its
collective experience to kickstart its future plans as a global company.
Respected for Quality, Performance, Care , Responsibility and for creation and
maximization of wealth for its shareholders NATCO Pharma Limited, the
post-merger organization represents a strategic stage in NATCO's constant
evolution as the Complete Pharma Company.
Products
NATCO manufactures a comprehensive range of branded and generic dosage forms, bulk actives and intermediates for both Indian as well as International markets.The product range is constantly expanded through its own R&D initiative, basic research and also through joint ventures, technology transfers and collaborations.
It has an impressive and growing presence in all Pharma segments in India and abroad.
DOSAGE FORMS
NATCO's product come in various forms such as timed released capsules, tablets, inhalers, dry syrups, dispersible, syrups and suspensions, ointments, gels, injectables, infusions, sterile preparations and large and small volume parenterals.
NATCO's branded products and generic versions of antibiotics, anti-malarial, amoebicides, analgesics, anti-pyretic, peripheral vasodilators, anti-anginal, anti-hypertensives, anti-asthmatic, tranquilizers, anti-depressants, oncologicals, anti-emetics, anti-anemic, nutritional supplements, bio-technology based drug forms and health products of natural origin have found wide acceptance.
Product
List:
Ø Alphabetical Order
Ø Therapeutic Order
Ø Categorywise
BULK ACTIVES AND INTERMEDIATES:
NATCO has strong capabilities to manufacture a wide range of bulk actives and intermediates.Some of these products are :
Ø Diltiazem
Ø Omeprazole
Ø Lansoprazole
Ø Isosorbides
Ø Sumatriptan succinate
Ø Ondansetron
Ø Sertraline
Ø Granisetron
Ø Paroxetine
Ø
Newer Quinolones and fourth genaration
Cephalosorins.
For Domestic Marketing
Phone No: 91-40- 23547532
Fax No:
91-40- 23541217
Email: sales@natcopharma.co.in
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.44.75 |
|
UK
Pound |
1 |
Rs.58.14 |
|
Euro |
1 |
Rs.57.55 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|