MIRA
INFORM REPORT
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Report Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
CAPSUGEL HEALTHCARE LIMITED |
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Formerly Known As : |
BHARTI HEALTH CARE LIMITED |
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Registered Office : |
21, Joniawas, Dharuhera, Rewari, Haryana;122100, |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.12.1982 |
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Com. Reg. No.: |
020151 |
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CIN No.: [Company
Identification No.] |
L85110HR1982PLC020151 |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturer of Hard Gelantine Capsule Shells |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 330000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having satisfactory track. Company’s
profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office/Manufacturing Plant/Sales Offices : |
21, Joniawas, Dharuhera, Distt. Rewari, Haryana, Pin - 122 100 |
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Tel. No.: |
91-1274-267092, 93,97,99 |
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Fax No.: |
91-1274-267168 |
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E-mail: |
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Website : |
DIRECTORS
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Name : |
Mr. Charles Robert Danjaut |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Guido Driesen |
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Designation : |
Chairman |
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Name : |
Mr. Rana Bhattacharjee |
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Designation : |
Managing Director |
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Name : |
Mr. Douglas Milanes J |
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Designation : |
Director |
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Name : |
Mr. Vanchai Santimanochai |
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Designation : |
Director |
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Name : |
Ms. Siriporn Sridech . |
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Designation : |
Director |
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Name : |
Mr. K.G. Ananthakrishnan |
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Designation : |
Director |
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Name : |
Mr. Jean Francois Thedenat |
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Designation : |
Director |
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Name : |
Mr. William Stevenson McCall |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Pinkey Kataria Hooda |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hard Gelantine Capsule Shells |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Empty Hard Gelatine Capsules |
No. in Thousand |
6000000 |
4800000 |
4608221 |
GENERAL
INFORMATION
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No. of Employees : |
500 |
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Bankers : |
IDBI Ltd. |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. J.C. Bhalla&Co. Chartered Accountant |
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Associates/Subsidiaries : |
Bharti Teletech Limited Goa Telecommunications and Systems Limited Bharti Telesoft Private Limited Lilly Projects Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity shares |
Rs.10/- each |
Rs.100.000 Millions |
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1000000 |
Preference Shares |
Rs.100 /- each |
Rs.10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9285348 |
Equity Shares |
Rs.10/- each |
Rs. 92.853
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
92.853 |
92.853 |
92.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
(9.903) |
67.396 |
55.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
82.950 |
160.249 |
148.000 |
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LOAN FUNDS |
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1] Secured Loans |
119.515 |
161.123 |
106.300 |
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2] Unsecured Loans |
104.544 |
25.952 |
93.800 |
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TOTAL BORROWING |
224.059 |
187.075 |
200.100 |
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DEFERRED TAX LIABILITIES |
59.439 |
18.708 |
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TOTAL |
366.448 |
366.032 |
348.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
276.500 |
288.548 |
265.600 |
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Capital work-in-progress |
44.252 |
1.635 |
9.000 |
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INVESTMENT |
0.000 |
2.304 |
0.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
52.281 |
40.854 |
37.000 |
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Sundry Debtors |
53.960 |
65.176 |
56.500 |
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Cash & Bank Balances |
3.588 |
6.324 |
13.500 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
11.765 |
26.181 |
80.100 |
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Total
Current Assets |
121.594 |
138.535 |
187.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
71.211 |
60.732 |
110.900 |
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Provisions |
5.148 |
5.178 |
4.700 |
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Total
Current Liabilities |
76.359 |
65.910 |
115.600 |
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Net Current Assets |
45.235 |
72.625 |
71.500 |
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MISCELLANEOUS EXPENSES |
0.461 |
0.920 |
2.000 |
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TOTAL |
366.448 |
366.032 |
348.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
283.928 |
297.839 |
316.700 |
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Other Income |
25.313 |
20.019 |
9.500 |
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Total Income |
309.241 |
317.858 |
326.200 |
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Profit/(Loss) Before Tax |
(34.826) |
24.474 |
28.600 |
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Provision for Taxation |
(111.830) |
12.038 |
13.400 |
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Profit/(Loss) After Tax |
(77.004) |
(12.436) |
15.200 |
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Earnings in Foreign Currency : |
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FOB value of Exports |
99.654 |
116.411 |
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Total Earnings |
99.654 |
216.065 |
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Imports : |
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Raw Materials |
4.040 |
6.394 |
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Stores & Spares |
0.342 |
1.531 |
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Capital Goods |
5.834 |
1.433 |
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Traveling |
1.027 |
1.169 |
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Commission on sale |
4.308 |
6.677 |
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Interest |
1.637 |
1.364 |
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Others |
0.551 |
0.000 |
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Total Imports |
17.739 |
18.568 |
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Expenditures : |
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Excise Duty |
0.000 |
0.000 |
26.500 |
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Raw Materials |
0.000 |
0.000 |
7.08 |
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Power and Fuel |
0.000 |
0.000 |
40.800 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
19.200 |
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Employee Cost |
0.000 |
0.000 |
49.200 |
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Selling and Administration |
0.000 |
0.000 |
40.800 |
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Miscellaneous Expenses |
0.000 |
0.000 |
8.400 |
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Manufacturing Expenses |
81.932 |
65.180 |
0.000 |
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Administrative Expenses |
23.518 |
17.788 |
0.000 |
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Raw Material Consumed |
88.306 |
84.783 |
0.000 |
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Personnel Expenses |
58.894 |
51.089 |
0.000 |
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Sales and Marketing Expenses |
27.299 |
33.463 |
0.000 |
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Total Expenditure |
279.949 |
252.303 |
191.98 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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1.69 |
1.26 |
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Long Term Debt-Equity Ratio |
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0.90 |
0.95 |
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Current Ratio |
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0.67 |
1.09 |
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TURNOVER RATIOS |
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Fixed Assets |
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0.59 |
0.65 |
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Inventory |
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6.65 |
8.23 |
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Debtors |
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5.20 |
5.27 |
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Interest Cover Ratio |
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0.38 |
2.23 |
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Operating Profit Margin(%) |
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9.65 |
20.44 |
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Profit Before Interest And Tax Margin(%) |
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2.32 |
13.80 |
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Cash Profit Margin(%) |
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-18.79 |
10.52 |
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Adjusted Net Profit Margin(%) |
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-26.11 |
3.87 |
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Return On Capital Employed(%) |
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0.00 |
12.62 |
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Return On Net Worth(%) |
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0.00 |
7.84 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.79.85 |
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Low |
Rs.75.70 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
During the year under review, the total income decreased by 4 % from Rs.
331.69 million in 2004- 05 to Rs.
317.06 million in 2005-06. Though the total income has not gone down
much in volume, the profit before finance charges and depreciation shown a
steep decline of about 55% at Rs. 29.29 million in 2005-06 as compared to Rs.
65.55 million in 2004-05. During the year under review, the company has
registered a loss of Rs. 77.00 million after taking into consideration tax
(Deferred Tax and Fringe Benefit Tax) as compared to profit of Rs. 12.43
million in 2004-05.
The main reasons for loss were inventory (WIP) written off valued at
13.12 million, gelatine worth Rs. 6.8 million booked as scrap, loss of long
term investment of Rs. 2.3 million in wholly owned subsidiary Gel Caps Inc. as
on March 31,2006, lower exports, high fuel and electricity costs during the
year under review.
FUTURE OUTLOOK
In view of change in the management, the company expects to sell
significant quantity of Capsules along with focus towards higher standards in
productivity, Product quality, Cost Reduction and Customer service.
CHANGE IN NAME OF THE COMPANY
The name of the the Company changed to Company Healthcare Limited, vide
approval letter dated July 21, 2006 of the Registrar of Companies, NCT of Delhi
and Haryana. The said proposal was earlier approved in the Extra Ordinary
General Meeting held on June 16, 2006 as consequent to the change in the
management and control of the Company, the existing name of the Company no
longer reflected the true identity of the new promoters.
Fixed Assets:
Land
Building
Plant and Machinery
Furniture and Fixture
Electrical Installations
Office Equipments
Computer
Scooter and Motor Cycle
Laboratory Equipment
A.C. Plant
Car
As required by Accounting Standard - AS 18 "Related Parties
Disclosure" issued by the Institute of Chartered Accountants of India,
following are the names and nature of related parties :
a) Holding Company (From 7th December ,2005)
- Pfizer Pharmaceutical India Private Limited
b) Controlling Enterprise (Till 6th December ,2005)
- Bharti Overseas Trading Company
c) Subsidiary Company
- Gel Caps Inc. USA
d) Related Parties where transactions have taken place during the year:
HISTORY:
Previously known as United Pharma International, Bharti Healthcare was set up in 1982 to manufacture empty hard gelatine capsules at Dharuhera, Haryana. In 1987, the company's erstwhile promoter, the United group, transferred its stake to the Mittal group, leading to the name change. Due to industrial sickness resulting from demand-supply imbalances and the exchange fluctuation which led to heavy losses, the company was referred to the BIFR on 6 Jan.'90.
The rehabilitation programme initiated by the BIFR was successful and the
company was declared no longer sick on 19 Jul.'94; and soon became a
profit-making pharmaceutical company. Its production capacity is 1350 mln
capsules and its major clients for hard gelatine capsules include Wockhardt,
Glaxo, Cipla, Okasa, etc.
The company entered into a strategic alliance with Stryker Corporation,
US, a Fortune 500 company renowned for its medical equipment. Bharti Healthcare
will market, distribute and support a range of sophisticated arthroscopic and
endoscopic medical equipment, amongst a host of other devices.
In 1999-2000 the company introduced new sizes `EL-0' and `4' along with
rectified printing facility which would help the company towards exploring new
markets in USA, Europe and South East Asian Countries.
As Per Web Site:
Company has emerged as a global leader creating innovative dosage forms for the pharmaceutical and dietary supplements industries. Companies look to their leadership to help them formulate new products, enhance existing product lines, bring new products to market faster, and ensure their clinical trials are conducted without bias.
Broad Range of Products & Services
With a diverse product line, including hard gelatin, soft gel, non-animal, and fish gelatin capsules, they are at the forefront of bringing to market the highest quality polymers, each designed and tailored for specific applications. Combined with their innovative R&D machines, like the CFS 1200 liquid filling and sealing machine and their Xcelodose® Precision Powder Micro-filling System, customers count on Company support from formulation to final production.
Committed to Quality & Education
To ensure their customers receive the very best quality products and services, they employ the principles of Six-Sigma throughout their entire organization. And their vast technical reference library, containing independent studies and articles, as well as articles written by their own scientists, is viewed as an invaluable recourse by their customers. As an active industry supporter, Company also gives presentations about dosage forms to pharmaceutical students at universities.
Initially part of the Parke-Davis Company, A Company is now a division of Pfizer Inc., a Fortune 100 global pharmaceutical company, and has numerous global locations to support customers on every major continent.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.99 |
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UK Pound |
1 |
Rs.84.22 |
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Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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32 |
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 |
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|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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