MIRA INFORM REPORT

 

 

Report Date :

07.08.2007

 

IDENTIFICATION DETAILS

 

Name :

EMCURE PHARMACEUTICALS LIMITED

 

 

Registered Office :

Emcure House, T – 184, MIDC, Bhosari, Pune – 411026, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

16.04.1981

 

 

Com. Reg. No.:

11-24251

 

 

CIN No.:

[Company Identification No.]

U24231PN1981PLC024251

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNEE00094D

 

 

PAN No.:

[Permanent Account No.]

AAACE4574C

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Seller of Pharmaceuticals such as  Antibiotics, Herbal, Bacteriological and Biological Products.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 4000000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and resourceful industrialist. Their trade relations are reported as fair. Financial position is good. Payments are usually correct and as per commitments.

 

The company can be considered good for any normal business dealings at usual trade terms and conditions.  

 

 

LOCATIONS

 

Registered Office/Factory :

Emcure House, T - 184, M. I. D. C., Bhosari, Pune-411026, Maharashtra, India

Tel. No.:

91-20-30610000

Fax No.:

91-20-30610111 / 27122289

E-Mail :

corporate@emcure.co.in

Website :

http://www.emcure.co.in

Area :

48,000 Sq. ft. (Owned)

 

 

Factory 1 :

C – 10/12, M.I.D.C., Bhosari, Pune – 411026, Maharashtra, India

 

 

Factory 2 :

D6/S-25, M.I.D.C., Bhosari, Pune – 411026, Maharashtra, India

 

 

Factory 3 :

T – 172, M.I.D.C., Bhosari, Pune – 411026, Maharashtra, India

 

 

Factory 4 :

Plot 12/2, F – II Block, M.I.D.C., Pimpri, Pune – 411018, Maharashtra, India

 

 

Factory 5 :

Plot No. D – 24, M.I.D.C., Kurkumbh, Taluka Daund, District Pune, Maharashtra, India

 

 

DIRECTORS

 

Name :

Mr. Hamayun Raja Dhanrajgir

Designation :

Director

Address :

Flat No. F – 41, Dhanraj Mahal, CSM Road, Apollo Bunder, Mumbai – 400039, Maharashtra, India

Date of Birth/Age :

02.12.1936

Date of Appointment :

23.09.2000

 

 

Name :

Mr. Satish Ramanlal Mehta

Designation :

Managing Director

Address :

4, Mumbai – Pune Road, Kirkee, Pune – 411003, Maharashtra, India

Date of Birth/Age :

13.01.1951

Date of Appointment :

14.09.1995

Qualification :

M. Sc., M.B.A. [IIMA]

Experience :

27 Years

 

 

Name :

Mr. Arunkumar Purushottamalal Khanna

Designation :

Whole Time Director

Address :

Clover Hills, Bungalow No. 63, Nibm Road, Kondhwa, Pune – 411048, Maharashtra, India

Date of Birth/Age :

09.07.1952

Date of Appointment :

27.12.1994

 

 

Name :

Mr. Shar Ramchandra Gujar

Designation :

Director

 

 

Name :

Mr. Bhalch Keshinath Khare

Designation :

Director

 

 

Name :

Mr. Rust Phiroze Sonawala

Designation :

Director

 

 

Name :

Mr. Dilip Girdharlal Shah

Designation :

Director

Address :

2 / 21, Beach Queen, 35 – B, Azad Road, Juhu, Mumbai – 400049, Maharashtra, India

Date of Birth/Age :

25.04.1941

Date of Appointment :

02.09.1999

Date of Ceasing :

10.06.2005

 

 

Name :

Mr. Berjis Minoo Desai

Designation :

Director

Address :

Yezerina II, 740 / 741, Parsi Colony Road No. 5, Dadar, Mumbai – 400014, Maharashtra, India

Date of Birth/Age :

02.08.1956

Date of Appointment :

03.04.1997

 

 

Name :

Mr. Mahesh Nathalal Shah

Designation :

Whole Time Director

Address :

303, Abhinav Sankul, Plot No. 1A, Survey No. 132, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

03.10.1953

Date of Appointment :

15.08.2001

Qualification :

M. Sc.

Experience :

30 years

 

 

Name :

Mr. Shrikant Krushnaji Bapat

Designation :

Director

Address :

91, Sagar Tarang, Worli Sea Face, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

08.10.1937

Date of Appointment :

26.06.1999

 

 

Name :

Mr. A. K. Khanna

Designation :

Director

Qualification :

B. Sc., M. A. [Eco.]

Experience :

34 years

 

 

Name :

Mr. Umakan Chimanlal Shah

Designation :

Director

 

 

Name :

Dr. Mukund Keshao Gurjar

Designation :

Director

Address :

Bungalow C – II / 2, NCL Colony, Pashan Road, Pune – 411008, Maharashtra, India

Date of Birth/Age :

28.08.1952

Date of Appointment :

23.07.2001

 

 

Name :

Mr. A. K. Medhekar

Designation :

Director

Qualification :

B. Com, ACA

Experience :

26 years

 

 

Name :

Mr. Jitendra Vir Singh

Designation :

Director

Address :

752, Cornerstone Lane, Bryn Mawr, Pennsylvannia, U.S.A. – 19010

Date of Birth/Age :

31.01.1954

Date of Appointment :

11.07.2003

 

 

Name :

Mr. Mahendra Raojibhai Patel

Designation :

Director

Address :

5, Bel Air Court, Miltown, New Jersey – 08550, U.S.A.

Date of Birth/Age :

20.09.1949

Date of Appointment :

12.01.2005

 

 

KEY EXECUTIVES

 

Name :

Mr. Shirish Padmakar Dabir

Designation :

Secretary

Address :

A / 6, Malkauns Society, Paud Phata, Karve Road, Pune – 411038, Maharashtra, India

Date of Birth/Age :

27.12.1963

Date of Appointment :

26.08.2004

Date of Ceasing :

29.04.2006

 

 

Name :

Mr. Sandeep Anil Phadnis

Designation :

Secretary

Address :

3, Prabhat, Gururaj Society, Paud Road, Pune – 411038, Maharashtra, India

Date of Birth/Age :

11.06.1968

Date of Appointment :

29.04.2006

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

 

No. of Shares

Mr. Ambalal Ramanlal Mehta

 

259710

Ms. Sushila Ramanlal Mehta

 

242220

Mr. Satish Ramanlal Mehta

 

2863906

Satish Ramanlal Mehta [HUF]

 

330975

Ms. Namita Vikas Thapar

 

604980

Mr. Samit Satish Mehta

 

1310452

Ms. Bhavana Satish Mehta

 

913756

Ambalal Hiralal Mehta [HUF]

 

381990

Mr. Rajanikant Hiralal Mehta

 

496635

Hiralal Rajanikant Mehta [HUF]

 

319870

Ms. Pushpa Rajanikant Mehta

 

429765

Mr. Sunil Rajanikant Mehta

 

522395

Mr. Sanjay Rajanikant Mehta

 

935757

Mr. Piyush Popatlal Shah

 

14400

Mr. Suhas Popatlal Shah

 

9600

Ms. Shaila Sharad Gujar

 

10050

Ms. Kamini Sunil Mehta

 

664654

Mr. Sanjay Rajanikant Mehta jointly with Ms. Sonali Sanjay Mehta

 

68400

Mr. Rutav Sunil Mehta jointly with Mr. Sunil Rajanikant Mehta

 

58837

Ms. Kamini Sunil Mehta jointly with Mr. Sunil Rajanikant Mehta

 

129112

Mr. Arunkumar Purushottamlal Khanna

 

150000

Mr. Mahesh Nathalal Shah

 

30000

Mr. Avinash Kamlakar Medhekar

 

32250

Ms. Bhavana Satish Mehta jointly with Mr. Satish Ramanlal Mehta

 

8640

Mr. Sunil Rajanikant Mehta jointly with Ms. Kamini Sunil Mehta

 

23400

Ms. Pushpa Rajanikant Mehta jointly with Mr. Rajnikant Hiralal Mehta

 

3840

Ms. Sonali Sanjay Mehta

 

276612

Mr. Jashvantlal Chandulal Shah

 

4500

Mr. Saumil Jasubhai Shah

 

4500

Ms. Suhasini Saumil Shah

 

10050

Ms. Surekha Umakant Shah

 

24750

Ms. Rita Mukesh Desai

 

2250

Ms. Swati Hetal Shah

 

10050

Ms. Smita Paresh Shah

 

10050

Mr. Bhalchandra Kashinath Khare jointly with Ms. Padmini Bhalchandra Khare

 

18150

Ms. Shreekant Krushnaji Bapat jointly with Ms. Alaka Shreekant Bapat

 

21300

Mr. Dilip Girdharlal Shah jointly with Ms. Smita Dilip Shah

 

16800

Mr. Rustom Phiroze Soonawala

 

10500

Mr. Berjis Minoo Desai

 

15000

Mr. Narinder Gurbaxraj Sagar

 

9000

Mr. Milind Mahadev Lad

 

2250

Mr. Anoop A. Sood

 

4500

Mr. Ajit Brajkishorelal Mehta

 

1350

Mr. Anil Verma

 

1350

Ms. Manjusha Ambadas Joshi

 

2850

Mr. Yashwant Jagannath Agte

 

1350

Mr. Uday Chandu Borde

 

1350

Mr. Mahinder Punwanin

 

2250

Mr. Raju Pessumal Kalera

 

2250

Mr. Navneet Hargovindas Shah

 

18000

Mr. Girishchander Harrai Desai

 

9000

Mr. Jaydeep Ranjitrai Desai

 

9000

Mr. Humayun Raja Dhanrajgir

 

15000

Mr. Venkappa Martahndappa Agadi jointly with Ms. Kamala Venkappa Agadi

 

9000

Mr. Mohan Ramchandra Gujar jointly with Ms. Leela Mohan Gujar

 

2250

Ms. Anvi Sanjay Mehta

 

62167

Mr. Rutav Sunil Mehta

 

21375

Mr. Umakant Chimanlal Shah

 

45000

Mr. Vijay Damodar Kulkarni

 

1350

Mr. T. S. R. Moorthy

 

1350

Mr. D. Shivputra Kannure

 

1350

Ms. Sonali Sanjay Mehta jointly with Mr. Sanjay Rajanikant Mehta

 

78172

Ms. Anvi Sanjay Mehta jointly with Ms. Sonali Sanjay Mehta

 

22645

Mr. Rajanikant Hiralal Mehta jointly with Ms. Pushpa Rajanikant Mehta

 

9750

Mr. Rutav Sunil Mehta jointly with Ms. Kamini Sunil Mehta

 

29610

Sanjay Rajanikant Mehta [HUF]

 

5625

Mr. Prahlad Babanrao Lande

 

2250

Mr. Mukund Keshao Gurjar

 

15000

Mr. Mukund Pandurang Ranade

 

19500

Mr. Deo Venkatarangala Balaji

 

1350

Mr. Rajesh Narayanan Nair

 

750

Mr. Nishith Jyotindra Trivedi

 

750

Mr. Dilip Nandkumar Deobagkar

 

1500

Mr. Ajay Premchand Bharadwaj

 

7500

Mr. Rakesh Triloknath Bamzai

 

7500

Mr. Jitendra Vir Singh

 

75000

Mr. Prakashkumar Prasantakumar Guha

 

15000

Mr. Chandrakant Vittal Shetty

 

3000

Mr. Balasubramaniam Shriram

 

3000

Mr. Mahendra Raojibhai Patel

 

100000

Mr. Joseph Renner

 

50000

TOTAL

 

11911350

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Seller of Pharmaceuticals such as Antibiotics, Herbal, Bacteriological and Biological Products.

 

 

Products :

-Anti- Diarrhoeals

-Anti Tuberculosis

-Antibiotics (Oral)

-Antibiotics (Parenterals)

-Anti-Diabetic

-Anti-Infectives

-Anti-Inflammatory / Analgesics

-Antineoplastic

-Antiplatelet

-Anti-Retroviral

-Anti-Spasmodics / Analgesic

-Anxiolytic

-Bronchodialator

-Calcium Preparations

-Cardiovascular

-Cough and Cold

-Erectile Dysfunction

-For Benign Prostrate Hyperplasia

-Gastro Intestinal

-Haematinics

-Hemostatics

-Hepatoprotectives

-Hormones

-Immunosupressants

-Laxatives

-Nephrology

-Nutritionals

-Oral Anti- Asthamatic

-Topical Anti - Fungal

-Topical Anti - Inflammatory

-Topical Cream

 

 

Brand Names :

“EMCURE”

 

 

Terms :

 

Selling :

Credit of 30 days, Cash and Contract

 

 

Purchasing :

Credit of 30 days, Cash and Contract

 

 

GENERAL INFORMATION

 

Suppliers :

1)                   Indian Organic Chemicals Limited, Baroda.

2)                   National Organic Chemical Industries Limited, Bombay.

3)                   Lupin Chemicals Limited, Bombay.

4)                   Bayer India Limited, Bombay

 

 

Customers :

1)                   Radiant Chemists, Bombay

2)                   Spencer & Company Limited, Madras.

3)                   Akbarallys Stores Department Stores Limited, Bombay

4)                   Bombay General Hospital, Bombay.

 

 

No. of Employees :

300

 

 

Bankers :
  • Bank of Maharashtra, Bhosari Brother, Pune – 411 026
  • The Saraswat Co-operative Bank Limited, Nana Chowk, Bombay – 400 007

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Price Waterhouse and Company

Chartered Accountants

 

 

Associates/Subsidiaries :

Ψ       Lazor Labs Private Limited, Bombay.

Ψ       Emfin Investments Private Limited, Bombay.

Ψ       Nuoan Pharma Private Limited, Bombay

Ψ       Emcure Laboratories Private Limited.

Ψ       Emcure Infotech Limited

Ψ       Zuventus Healthcare Limited

Ψ       Gennova Biopharmaceuticals Limited

Ψ       Lasor Pharmachem Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

60000000

Equity Shares

Rs. 10/- each

Rs. 600.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

11925000

Equity Shares

Rs. 10/- each

Rs. 119.250 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

119.250

117.750

78.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

913.010

685.177

543.000

4] (Accumulated Losses)

0.000

0.000

0.000
NETWORTH

1032.260

802.927

621.500

LOAN FUNDS

 

 

 

1] Secured Loans

1421.923

724.237

512.500

2] Unsecured Loans

175.434

139.597

155.900
TOTAL BORROWING

1597.357

863.834

668.400

DEFERRED TAX LIABILITIES

148.825

102.980

0.000
 

 

 

 
TOTAL

2778.442

1769.741

1289.900
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

1606.988

937.002

752.300
Capital work-in-progress

203.897

28.997

0.000
 

 

 

 
INVESTMENT

85.881

47.934

34.800
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories

465.086

398.195

302.400
 
Sundry Debtors

557.763

519.554

419.100
 
Cash & Bank Balances

13.068

15.650

9.800
 
Other Current Assets

1.505

0.866

0.000
 
Loans & Advances

529.836

394.262

196.900
Total Current Assets

1567.258

1328.527

928.200
Less : CURRENT LIABILITIES & PROVISIONS

 

 

 
 
Current Liabilities

601.908

503.271

386.600
 
Provisions

83.674

69.448

38.800
Total Current Liabilities

685.582

572.719

425.400
Net Current Assets

881.676

755.808

502.800
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.000
 

 

 

 
TOTAL

2778.442

1769.741

1289.900

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004
Sales Turnover [including other income]

3445.126

2512.006

2965.800
 

 

 

 
Profit/(Loss) Before Tax

406.435

260.850

277.300
Provision for Taxation

127.685

71.398

97.200
Profit/(Loss) After Tax

278.750

189.452

180.100
 

 

 

 
Total Expenditure

2959.905

2189.481

2688.500

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
8.09

7.54

6.07

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
11.80

10.38

9.35

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
12.80

11.51

16.50

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.39

0.32

44.62

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.21

1.79

1.76

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.29

2.32

2.18

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

History:

 

Milestones

 

Year

Mile Stone

1981

- Emcure Pharmaceuticals Private Limited incorporated.

1983

- First manufacturing facility commissioned at Bhosari, Pune.

1986

- Lasor Laboratories Private Limited incorporated.

1988

- Nucron Pharmaceuticals Private Limited incorporated.

1994

- Lasor Remedies Private Limited incorporated

1995

- Emcure Laboratories Private Limited incorporated.

- Beginning of own product marketing. Normet launched.

1996

- New marketing division "Emcure Shweiz" launched.

1997

- New marketing division "Impetus" launched.

1998

- Launch of the popular Iron preparation "Orofer".

1999

- New marketing division "Nucron" and "International" division launched.

2000

-New Marketing Division "Ennova" launched.

- First US Process Patent application filed.

2001

- New Marketing Divisions "Lasor" and "Ennova Impetus" launched. 
- Amalgamation of all group concerns into Emcure Pharmaceuticals Limited.
- Registrations in Africa, Asia, Middle East and Eastern Europe obtained.
- Exports of Emcure formulations commence.

2002

- Launch and commercialisation of S-Amlodipine and Asomex formulation.
- Formation of Zuventus Healthcare Private Limited.

2003

- Launch and commercialisation of S-Atenolol and Atpure formulation.
- Commissioning of Hinjwadi manufacturing facility for regulated markets.
- Commissioning of API pilot scale plant and research facility for chiral APIs.

2004

- Hinjwadi facility audited and approved by MCC- South Africa.
-Biotech facility fully operational.

- SAP 4.7 Enterprise version goes live across the organisation.

2005

- Hinjwadi solid dosage facility geared up for exports to Europe with the  receipt of the UK MHRA approval.

 

RESULT OF OPERATIONS :

 

The gross sales revenue for the financial year under report was Rs. 4020.25 millions as compared to Rs. 2778.55 millions recorded for the previous financial year reflecting an excellent growth of 44.5%. The net sales [excluding Excise Duty of Rs. 630.02 millions] are Rs. 3390.23 millions as compared to previous year net sales of Rs. 2488.18 millions [excluding excise duty of Rs. 290.37 millions].

 

In the business of manufacturing and marketing of formulations of third party brands for reputed multinationals, the company has recorded sales of Rs. 1322.28 millions as compared to the previous year Rs. 977.27 millions.  The company has also achieved an impressive growth in manufacturing and marketing of its own branded domestic formulations.  These sales were recorded at Rs. 2232.71 millions as against Rs. 1511.06 millions, for the previous year, thus achieving a commendable growth of 48%.

 

During the year 2005-06, export sales were recorded at Rs. 465.26 millions, including sales to regulated and semi regulated market, as compared to sales of Rs. 221.73 millions for the previous year, reflecting a growth of 110%.

 

The company continued to gain market share in core therapeutic areas in the domestic market.  The research and development teams in API and formulations gave it the cutting edge in the domestic market with the product and processes that it has developed, notably in the area of Chiral Chemistry.  The success was replicated in the international market as the company entered the global supply chain by forming alliances with global pharma majors, notably with Bristol – Myers Squibb wherein the company will manufacture and supply APIs as well as formulations of their protease inhibitor Atazanavir and market the same in Sub Sahara, Africa and India.

 

During the year 2005-06, the state-of-art facility for manufacture of solid orals was approved by US FDA. The first module of the API manufacturing facility at Kurkumbh was also completed.  The small volume parenterals facility at Hinjwadi is undergoing validation and this validation process in expected to be completed by June, 2006.  Both these facilities are complaint with the requirements of US FDA.  These facilities would enable the company to offer a truly integrated solution to its business associates.

 

During the year 2005-06, the company took several initiatives to fulfill its corporate social responsibility of fighting against HIV/AIDS. These initiatives were aimed at raising awareness, removing social stigma attached to HIV/AIDS, continuously working towards making the drugs more affordable, and developing drugs for adults as well as pediatric age-group.

 

INCREASE IN SHARE CAPITAL :

 

The company allotted 150000 equity shares of Rs. 10 each, at a premium, on preferential basis, to two Foreign Nationals on 06.04.2005, thereby increasing the Paid up Share Capital base from previous year’s Rs. 117.75 millions to Rs. 119.25 millions in the year under report.

 

Generic Names of Three Principal Products / Services of the company are as under :

 

Item Code No.

Product Description

293390.01

Heterocyclic Compounds [e.g. Carbamazepine]

300490.38

Anti – Histamines, Anti Asthamatics, Bronchospasm Relaxants in Tablets / Injections etc.

300450.02

Iron preparations Ferrous Fumrate/Ferrous Sulphate / Ferric Ammonium Citrate / Ferrous Gluconate haemoglobin, other iron compounds with vitamins in tablets, capsules, syrup, etc.

 

Director’s profile:

 

Profile of Humayun Dhanrajgir – Chairman

 

Mr. Dhanrajgir has a very rich and vast experience in the pharmaceutical industry having held several senior management positions including that of Managing Director of Glaxo India Limited. He is an erstwhile President of the Organization of Pharmaceutical Producers of India (O.P.P.I). He did his graduation in chemical engineering from UK and an Advanced Management Program from Harvard.

 

Profile of Mr. Dilip Shah

 

Mr.Shah has been associated with the pharmaceutical industry since 1967. He is known for his work in strategic planning, acquisitions and mergers, business restructuring, promotion of information technology, and government liaising. Mr. Shah was, until August 1997, the Commercial Director and a Member of the Board of Directors at Pfizer Limited. He set up the Vision Consulting Group at Mumbai to work in the areas of Public Policy, Strategic Planning and Entry Planning. Currently he is the Secretary General of the newly formed Indian Pharmaceutical Alliance. Mr. Shah is an MBA from IIM Ahmedabad.

 

Profile of Mr. Shrikant Bapat

 

An erstwhile officer of the Indian Police Service (IPS), Mr. Bapat is a highly distinguished and decorated Senior Police Officer. He has held several important positions like Joint Director; Intelligence Bureau, Ministry of Home Affairs, Commissioner of Police, Mumbai and has also been a Senior Member of the Maharashtra Public Service Commission for a period of six years.

 

Profile of Mr. Berjis Desai

 

Mr. Desai is a specialist in mergers & acquisitions, derivatives, corporate and financial laws, international business laws, international commercial arbitration and offshore structuring. He is a Partner of the renowned Solicitor firm in Mumbai, J. Sagar Associates.

 

Profile of Dr. Mukund K Gurjar

 

Dr. Gurjar has been closely associated with Drugs and Pharmaceutical Sciences since 1975 and is a distinguished researcher in the country. He has carried out extensive work in the field of new chemical entities (NCEs). He has the distinction of being one of the 43 scientists from India who have been mentioned in the Institute of Scientific Information of Chemists and has more than 500 citations. Dr. Gurjar is currently the Deputy Director at National Chemical Laboratory, Pune. He is a leading Fellow at various National and International Academies. He holds a double Ph.D., from London University, UK and from Nagpur University, India.

 

Profile of Dr. Jitendra V. Singh

 

Dr. Singh is the Saul P. Steinberg Professor of Management at The Wharton School, University of Pennsylvania. He was the Vice Dean, International Academic Affairs at Wharton for three years. He holds a doctorate in Organization Theory and Behaviour and a Master of Arts in Sociology from Stanford University. Dr. Singh has been on the Board at Infosys Technologies Limited and Global Vision Inc., Florida, and has been an Advisor to prestigious companies such as Eurindia Limited, London and Global Vision Inc., Florida. His focus is on strategic and organizational change, building world-class capabilities, corporate governance, strategic and organizational challenges of high growth, and he has an abiding interest in high technology firms. Dr. Singh is an alumnus of IIM, Ahmedabad.

 

Profile of Mr. Satish Mehta, Managing Director

 

Mr. Mehta has a wealth of experience in the pharmaceutical industry since 1975. He is on the Executive Committee of the Maharashtra Chamber of Commerce, Industries & Agriculture (MCCIA), Pune; a member of National AIDS Committee and also a member of State level committee of Foods and Drugs. Mr. Mehta is the prime mover for various strategic alliances, and growth plans at Emcure. One of the promoters of Emcure, Mr. Mehta is the Managing Director of the Company. He is a Post Graduate in Chemistry and an MBA from IIM Ahmedabad.

 

Profile of Mr. Arun Kumar Khanna, Director - Operations

 

Mr. Khanna has vast experience in the pharmaceutical industry since 1973. He is a member of the Spurious Drugs committee of Ministry of Health, representing the pharmaceutical industry. Mr. Khanna is the Director-Operations of the Company. He spearheads the marketing function of the Company and is responsible for both domestic as well as international marketing. He has made a significant contribution in developing Emcure into a strongly market driven company. He is a Graduate of Science and holds a Post Graduate qualification in Economics.

 

Profile of Mr. Mahesh Shah, Director - Technical

 

Mr. Shah has a rich technical experience in the pharmaceutical industry since 1976. He has been associated with Emcure since its inception and is in charge of the manufacturing operations at Emcure. Mr. Shah is a Post-Graduate in Science.

 

News:

 

Month/Year

News

February 2005

President of Iceland formally inaugurates Hinjwadi facility. 

Emcure signs MOU with Actavis Group hf, a leading European generic major for strategic partnership.

 

The President of Iceland, His Excellency, Dr. Σlafur Ragnar Grνmsson formally inaugurated the state-of-the-art manufacturing facility for solid dosage forms at Hinjwadi, Pune on Monday, 7th February 2005. A MOU was signed by Mr. Robert Wessman, President & CEO, Actavis and Mr. Satish Mehta, Managing Director, Emcure, between Actavis Group hf, Iceland and Emcure. Actavis Group hf, is a Euro 600 million generics company with a strong presence in Europe and the US markets. The MOU covers a broad range of collaborative areas including development of Abbreviated New Drug Applications (ANDAs) and Marketing Authorisations (MAs) as well as manufacturing of formulations for the regulated markets. 

 

This strategic partnership between the 2 organisations will play a major role in Emcure’s foray into the regulated markets.

January 2005

UK MHRA Approval For Emcure’s Hinjwadi Facility

 

The UK MHRA has audited and approved Emcure’s Hinjwadi facility and registered its products.

 

Emcure’s world-class manufacturing facility at Hinjwadi, Pune is designed to cater to the requirements of the regulated markets.

 

With this UK MHRA approval, Emcure is geared up to commence exports to Europe. This state of the art export oriented unit has a built up area of 200,000 square feet and is geared to produce up to 10 billion tablets per annum.

September 2004

SAP R/3 Enterprise ver 4.7  goes live across the organisation

 

Emcure is in the process of streamlining data flow between sales & distribution and material resource planning apart from developing easy access to real time information on production and inventory. With SAP 4.7 Enterprise version, Emcure has emerged as an integrated pharma major which is on the cutting edge of information technology. This is a step towards meeting US FDA compliance hence will also fecilitate the foray of Emcure into international markets..

May 2004

Hinjwadi facility audited by MCC, South Africa

 

The state-of-the-art solid dosages facility of Emcure at Hinjewadi undergoes audit by MCC, South Africa. QA teams from two major MNCs also approve the facility. This is an additional step in the direction of Emcure developing into a link in the global value chain for the pharma majors.

March 2004

Emcure Hinjawadi declared EOU

 

Emcure has obtained an EOU status for the new unit at Hinjewadi.This is a key achivement for Emcure's global supply outlook. The Hinjewadi manufacturing facility spread over 200,000 square feet of space, dedicated to solid dosages This facility has been created to global standards with a installed capacity of 5 billion tablets and capsules which can be scaled up as required. The facility is part of Emcure's strategic plan to form a part of the global outsourcing of manufacturing and is in the process of audits from major regulatory agencies of UK and USA. and other regulated markets

 

The ultra-modern Hinjewadi manufacturing facility is among the best in the industry with great care taken on all aspects to ensure delivery of high quality products. It augments our previous manufacturing facilities that are dedicated to the domestic and neighbouring markets.

December 2003

Emcure bags order for ARVs

 

The increased focus on Anti Retroviral drugs at Emcure to battle the global AIDS menace received a fillip with an initial order from the African continent. This order is seen as the precursor to much more business that would ensue in this area of battling AIDS in which Emcure has taken the initiative both in India as well as the global market.

September 2003

Emcure launches Atpure - Chirally pure Atenolol (S-Atenolol)

 

With the runaway success of S-Amlodipine (chiral Amlodipine) in India and its proven benefits, Emcure followed up with the launch of Atpure. Atpure is the result of continued extensive Research and Development by the Emcure team and is based on the chiral purification of Atenolol - a beta-blocker.

 

Emcure as created a niche for itself in the area of chiral molecules and has several other chirally pure forms of several drugs in the research pipeline at various stages.

 

Vintor (Erythropoietin) reaches second most prescribed brand position


Vintor (Recombinant Human Erythropoietin) sales continued to grow strongly in the nephrology segment leading to Vintor claiming the 2nd position in the segment. The strong brand presence created by Emcure for Vintor has steadily built this brand within a short span of 2 years into a major brand in the biotechnology basket of Emcure.

 

Name of the company

EMCURE PHARMACEUTICALS LIMITED

Presented By

Mr. Shirish Dabir, Company Secretary

1) Date and description of instrument creating the change

A. Bank of Maharashtra

Agreement for Hypothecation of goods, stocks, movables, plant and machineries and book debts and memorandum of record of equitable mortgage both dated 27.11.1997. This constitutes a single charge

 

B. Corporation Bank :

Agreement of hypothecation dated 01.02.2000 [of erstwhile Lasor Laboratories Limited before amalgamation]

2) Amount secured by the charge/amount owing on the securities of charge

A. Bank of Maharashtra :

 

Cash Credit

Rs. 72.000 millions

Bank Guarantee

Rs. 0.500 million

Letter of Credit

Rs. 5.000 millions

Total

Rs. 77.500 millions

 

B. Corporation Bank :

 

Cash Credit facility Inland / Import LC [DP / DA]

Rs. 50.000 millions

Cum Bank Guarantee

Rs. 5.000 millions

Total

Rs. 55.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

A. Bank of Maharashtra :

 

Hypothecation of movables, plants, machineries, goods, stocks, materials, items, inventories, raw materials, semi finished goods, finished goods, stock-in-trade, goods in process, movables in transit, all of the movable assets and properties, the goodwill and all receivables, book debts and all the rights, titles or interest therein. An equitable mortgage of land and building

 

B. Corporation Bank :

 

Hypothecation of raw materials, stock-in-process, semi finished goods and finished goods, stores, spares, receivables, book debts, plant and machinery, equipments, furniture, computers, jigs and fixtures and all other movable fixed assets of the company

4) Gist of the terms and conditions and extent and operation of the charge.

A. Bank of Maharashtra :

Rate of Interest ;

PLR + 1% + tax

 

B. Corporation Bank

 

Interest @ PLR + 1.5% i.e. 13.50% p.a.

[Exclusive of Interest Tax], at present subject to revision from time to time

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Dapodi, Pune – 411012

 

Corporation Bank

Industrial Finance Branch, 14, Pune Mumbai Road, Wakdewadi, Pune – 411003

6) Date  and brief description of instrument modifying the charge

No instrument is created, but a certificate of closure of Loan accounts has been received from Corporation Bank bearing Ref. No. IFB/OR/635/04-05, dated August 16, 2004

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Corporation Bank

Original charge was created on 1st February, 2000 by way of hypothecation, to secure credit facility of Rs. 55 millions was also secured by equitable mortgage of land & building as collateral security on 29.03.2000 for the same amount.  This charge was further enhanced to Rs. 110 millions on 11th February, 2003, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets

 

Further as per the Memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company have been mortgaged as an additional security to the security provided earlier.

 

Further it is stated that the property exclusively charged to Corporation Bank vide the memorandum of deposit of title deeds dated 29.03.2000 was released in lieu of above mentioned security.

 

Now, vide no objection certificate received from Corporation Bank, on repayment of all the outstanding dues by the company of the said Bank and on surrendering the limits sanctioned by the bank to the company, the bank has agreed to vacate its charge over the property of the company to the extent of the limits sanctioned by it, to the tune of Rs. 110 millions created vide the working capital cartel agreement, further secured additionally by memorandum of record of equitable mortgage.

 

Thus the total amount secured by the charge stands reduced from Rs. 437.500 millions to Rs. 327.500 millions as under :

 

 

Rs. In Millions

Bank of Maharashtra

220.000

Citi Bank N. A.

67.500

BNP Paribas

40.000

TOTAL

327.500

 

All other terms and conditions of the working capital cartel agreement, joint deed of hypothecation and agreement for term loan all dated 11.02.2003, in respect of the above mentioned 3 Banks viz. Bank of Maharashtra, Citi Bank N. A., BNP Paribas, remain unchanged.

 

Name of the company

EMCURE PHARMACEUTICALS LIMITED

Presented By

Mr. Avinash Medhekar, Director [Finance]

1) Date and description of instrument creating the change

A. Bank of Maharashtra

Agreement for Hypothecation of goods, stocks, movables, plant and machineries and book debts and memorandum of record of equitable mortgage both dated 27.11.1997. This constitutes a single charge

 

B. Corporation Bank :

Agreement of hypothecation dated 01.02.2000 [of erstwhile Lasor Laboratories Limited before amalgamation]

2) Amount secured by the charge/amount owing on the securities of charge

A. Bank of Maharashtra :

 

Cash Credit

Rs. 72.000 millions

Bank Guarantee

Rs. 0.500 million

Letter of Credit

Rs. 5.000 millions

Total

Rs. 77.500 millions

 

B. Corporation Bank :

 

Cash Credit facility Inland / Import LC [DP / DA]

Rs. 50.000 millions

Cum Bank Guarantee

Rs. 5.000 millions

Total

Rs. 55.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

A. Bank of Maharashtra :

 

Hypothecation of movables, plants, machineries, goods, stocks, materials, items, inventories, raw materials, semi finished goods, finished goods, stock-in-trade, goods in process, movables in transit, all of the movable assets and properties, the goodwill and all receivables, book debts and all the rights, titles or interest therein. An equitable mortgage of land and building

 

B. Corporation Bank :

 

Hypothecation of raw materials, stock-in-process, semi finished goods and finished goods, stores, spares, receivables, book debts, plant and machinery, equipments, furniture, computers, jigs and fixtures and all other movable fixed assets of the company

4) Gist of the terms and conditions and extent and operation of the charge.

A. Bank of Maharashtra :

Rate of Interest ;

PLR + 1% + tax

 

B. Corporation Bank

 

Interest @ PLR + 1.5% i.e. 13.50% p.a.

[Exclusive of Interest Tax], at present subject to revision from time to time

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Dapodi, Pune – 411012

 

Corporation Bank

Industrial Finance Branch, 14, Pune Mumbai Road, Wakdewadi, Pune – 411003

6) Date  and brief description of instrument modifying the charge

Memorandum of Record of Equitable Mortgage dated 12.06.2003

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

BANK OF MAHARASHTRA

 

Original charge to secure various credit facilities of Rs. 77.500 millions secured by hypothecation and equitable mortgage on land at Bhosari was enhanced to Rs. 145.500 millions on 29.01.1999, is now reduced to Rs. 220 millions, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of Second Schedule of the Joint Deed of Hypothecation dated 11th February, 2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement.  Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company referred to in Part A of second schedule of the said memorandum have been provided as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003.

The company has also been sanctioned Term Loan of Rs. 200 millions from Bank of Maharashtra, secured by hypothecation of all movable fixed assets as stated in Part B of second schedule of the joint deed of hypothecation dated 11.02.2003 and the rate of interest as mentioned in Term Loan Agreement dated 11.02.2003.

Whereas the property of the company referred to in Part B of second schedule of the said memorandum have been provided as an additional security to the term loan of Rs. 200 millions over and above the security which was provided earlier vide the joint deed of hypothecation dated 11.02.2003.

Further it is stated that the property exclusively charged to Bank of Maharashtra mortgage dated 29.01.1999 is hereby through this modification released in lieu of above mentioned security.

 

B. Corporation Bank

 

Original charge created on 01.02.2000 by way of hypothecation to secure credit facility of Rs. 55 million, was also secured by equitable mortgage of land & building as collateral security on 29.03.2000, is now enhanced to Rs. 110 millions, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of second schedule of the Joint Deed of Hypothecation dated 11.02.2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement.

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company mentioned in Part A of the second schedule have been mortgaged as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003.

Further it is stated that the property exclusively charged to Corporation Bank vide the memorandum of deposit of title deeds dated 29.03.2000 is hereby through this modification released in lieu of above mentioned security.

 

C. Citi Bank N.A.

The company has been sanctioned Cash Credit facility / Export Pre Shipment and Post shipment finance / usance or Sight letter of credit / financial or performance guarantee of Rs. 67.500 millions from Citi Bank N. A. secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of second schedule of the Joint Deed of Hypothecation dated on 11.02.2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company mentioned in Part A of the second schedule have been mortgaged as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003

 

D. BNP Paribas :

The company has been sanctioned 1. Cash Credit /WCDL Rs. 40 millions 2. Export Credit Rs. 40 millions Preshipment / Postshipment [1+2 not to exceed Rs. 40 millions in aggregate] from BNP Paribas, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of second schedule of the joint deed of hypothecation dated on 11.02.2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement.

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company mentioned in Part A of the second schedule have been mortgaged as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003

 

5. The security of movable and immovable assets of the company will be given to each bank on pari-passu basis in proportion to their respective limits.  These limits are stated in the first schedule of the working capital cartel agreement.

 

6. Now, the total amount secured by the charge is Rs. 437.500 millions

 

The security for movable assets have been provided vide joint deed of hypothecation dated 11.02.2003 excluding that of Hinjewadi which is exclusively hypothecated with the Bank of Maharashtra for the purpose of term loan of Rs. 200 millions

 

The security for immovable assets have been provided vide the memorandum of record of equitable mortgage dated 12.06.2003 excludign that of Hinjewadi which is exclusively mortgaged with the Bank of Maharashtra for the purpose of term loan fo Rs. 200 millions

 

Rs. 437.500 millions is secured to all the four bankers on pari passu basis to the extent of individual sanctioned limits thereby modifying all earlier charges created with the erstwhile companies before amalgamation.

 

Vide this document Bank of Maharashtra and Corporation Bank have released the respective properties as stated in modification clause

 

Name of the company

EMCURE PHARMACEUTICALS LIMITED

Presented By

Mr. Shirish Dabir, Company Secretary

1) Date and description of instrument creating the change

A. Bank of Maharashtra

Agreement for Hypothecation of goods, stocks, movables, plant and machineries and book debts and memorandum of record of equitable mortgage both dated 27.11.1997. This constitutes a single charge

 

B. Corporation Bank :

Agreement of hypothecation dated 01.02.2000 [of erstwhile Lasor Laboratories Limited before amalgamation]

2) Amount secured by the charge/amount owing on the securities of charge

A. Bank of Maharashtra :

 

Cash Credit

Rs. 72.000 millions

Bank Guarantee

Rs. 0.500 million

Letter of Credit

Rs. 5.000 millions

Total

Rs. 77.500 millions

 

B. Corporation Bank :

 

Cash Credit facility Inland / Import LC [DP / DA]

Rs. 50.000 millions

Cum Bank Guarantee

Rs. 5.000 millions

Total

Rs. 55.000 millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

A. Bank of Maharashtra :

 

Hypothecation of movables, plants, machineries, goods, stocks, materials, items, inventories, raw materials, semi finished goods, finished goods, stock-in-trade, goods in process, movables in transit, all of the movable assets and properties, the goodwill and all receivables, book debts and all the rights, titles or interest therein. An equitable mortgage of land and building

 

B. Corporation Bank :

 

Hypothecation of raw materials, stock-in-process, semi finished goods and finished goods, stores, spares, receivables, book debts, plant and machinery, equipments, furniture, computers, jigs and fixtures and all other movable fixed assets of the company

4) Gist of the terms and conditions and extent and operation of the charge.

A. Bank of Maharashtra :

Rate of Interest ;

PLR + 1% + tax

 

B. Corporation Bank

 

Interest @ PLR + 1.5% i.e. 13.50% p.a.

[Exclusive of Interest Tax], at present subject to revision from time to time

5) Name and Address and description of the person entitled to the charge.

Bank of Maharashtra

Dapodi, Pune – 411012

 

Corporation Bank

Industrial Finance Branch, 14, Pune Mumbai Road, Wakdewadi, Pune – 411003

6) Date  and brief description of instrument modifying the charge

First supplemental working capital agreement in favour of participating Bank of reconstituted multiple banking finance arrangement dated 23.03.2005

 

First supplemental deed of modification cum further charge of hypothecation [of current assets & movable plant, machineries & other fixed assets] dated 23.03.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

BANK OF MAHARASHTRA

 

Original charge to secure various credit facilities of Rs. 77.500 millions secured by hypothecation and equitable mortgage on land at Bhosari was enhanced to Rs. 145.500 millions on 29.01.1999, was further enhanced to Rs. 247.500 millions by creation of equitable mortgage also on additional land at Bhosari and Pimpri on 29.10.1999, was then reduced to Rs. 220 millions, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of Second Schedule of the Joint Deed of Hypothecation dated 11.02.2003 and the rate of interest and commission were mentioned in second schedule of the working capital cartel agreement.

 

The company has also been sanctioned Term Loan of Rs. 200 millions from Bank of Maharashtra, secured by hypothecation of all movable fixed assets as stated in Part B of second schedule of the joint deed of hypothecation dated 11.02.2003 and the rate of interest as mentioned in Term Loan Agreement dated 11.02.2003.

 

Further it is stated that the property exclusively charged to Bank of Maharashtra mortgage dated 29.01.1999 is hereby through this modification released in lieu of above mentioned security.

 

B. Corporation Bank

 

Original charge created on 01.02.2000 by way of hypothecation to secure credit facility of Rs. 55 million, was also secured by equitable mortgage of land & building as collateral security on 29.03.2000, is now enhanced to Rs. 110 millions, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets.

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company had been mortgaged as an additional security to the security provided earlier.

Further it is stated that the property exclusively charged to Corporation Bank vide the memorandum of deposit of title deeds dated 29.03.2000 is hereby through this modification released in lieu of above mentioned security.

 

Vide no objection certificate received from Corporation Bank, on repayment of all the outstanding dues by the company of the said bank and on surrendering the limits sanctioned by the bank to the company, the bank has agreed to vacate its charge over the property of the company, to the extent of the limits sanctioned by it, to the tune of Rs. 110 millions, created vide the working capital cartel agreement, joint deed of hypothecation and term loan agreement, further secured additionally by memorandum of record of equitable mortgage, for which no instrument was created, but a certificate of closure of loan accounts has been received from Corporation Bank bearing Ref. No. IFB/OR/635/04-05, dated August 16, 2004.

 

Thus the total amount secured by the charge stands reduced from Rs. 437.500 millions to Rs. 327.500 millions as under :

 

 

Rs. In Millions

Bank of Maharashtra

220.000

Citi Bank N. A.

67.500

BNP Paribas

40.000

TOTAL

327.500

 

All other terms and conditions of the working capital cartel agreement, joint deed of hypothecation and agreement for term loan all dated 11.02.2003, in respect of the above mentioned 3 Banks viz. Bank of Maharashtra, Citi Bank N. A., BNP Paribas, remain unchanged.

 

C. Citi Bank N.A.

The company has been sanctioned Cash Credit facility / Export Pre Shipment and Post shipment finance / usance or Sight letter of credit / financial or performance guarantee of Rs. 67.500 millions from Citi Bank N. A. secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of second schedule of the Joint Deed of Hypothecation dated on 11.02.2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement.

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company mentioned in Part A of the second schedule have been mortgaged as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003

 

D. BNP Paribas :

The company has been sanctioned 1. Cash Credit /WCDL Rs. 40 millions 2. Export Credit Rs. 40 millions Preshipment / Postshipment [1+2 not to exceed Rs. 40 millions in aggregate] from BNP Paribas, secured by hypothecation of stocks in trade and book debts and also collaterally secured by hypothecation of all movable fixed assets as stated in Part A of second schedule of the joint deed of hypothecation dated on 11.02.2003 and the rate of interest and commission are mentioned in second schedule of the working capital cartel agreement.

Further as per the memorandum of record of equitable mortgage dated 12.06.2003 the properties of the company mentioned in Part A of the second schedule have been mortgaged as an additional security to the security provided earlier vide the joint deed of hypothecation dated 11.02.2003

 

5. The security of movable and immovable assets of the company will be given to each bank on pari-passu basis in proportion to their respective limits.  These limits are stated in the first schedule of the working capital cartel agreement.

 

E. ICICI Bank UK Limited :

The company has been sanctioned by the Bank, Term Loan by way of external commercial borrowing of USD 7.00 million for new projects and / or expansion of othe units, against the security of, first pari passu charge along with ICICI Bank Limited, India, of mortgage of land and building and hypothecation of movable fixed assets situated at F- II Block, Kurkumbh factory and R & D centre at Hinjewadi factory and further pari passu charge along with working capital and other term lenders of the company, on the common fixed assets of the company [other than exclusive charge of Bank of Maharashtra for their term lending for Hinjewadi factory and fixed assets free from all encumbrances] as specified in the present agreements dated 23.03.2005.

 

F. ICICI Bank Limited, India :

The company has been sanctioned by the bank, term loans of Rs. 150 millions [with a sublimit of L/C of Rs. 50millions] for new projects and / or expansion of other units, againt the security of first pari passu charge along with ICICI Bank UK Limited, of mortgage of land and building and hypothecation of movable fixed assets situated at F – II Block, Kurkumbh factory and R & D centre at Hinjewadi factory and further pari passu charge along with working capital and other term lenders of the company, on the common fixed assets of the company as specified in the present agreements dated 23.03.2005.

 

G. HDFC Bank Limited :

The company has been sanctioned by the Bank, limit of Rs. 100 millions for working capital requirements against the security of first pari passu charge on the current assets of the company along with other working capital lenders and first pari passu charge on the common fixed assets of the company [other than those fixed assets which have been exclusively charged to respective term lenders for term loan limits].

 

By present agreements dated 23.03.2005 the first supplemental working capital agreement & first supplemental deed of modification cum further charge of hypothecation, for securities provided thereunder, the present working capital limits of Rs. 327.500 millions have been revised by the addition of HDFC Bank Limited in the working capital cartel arrangement.  The increased working capital limits [funded and non funded], are as under:-

 

Name of Banks

Present [Rs. In Millions]

Revised Limit [Rs. In Millions]

Bank of Maharashtra

220.000

260.000

BNP Paribas

40.000

80.000

Citibank N.A.

67.500

100.000

HDFC Bank Limited

--

100.000

Total Limits

327.500

540.000

 

Similarly, additional term loans from BNP Paribas, ICICI Bank UK Limited and ICICI Bank Limited, India are being availed by the company in addition to the present term loan of Rs. 200 millions from Bank of Maharashtra. The new Term loan limits are as under :

 

Name of Banks

Present [Rs. In Millions]

Revised Limit [Rs. In Millions]

Bank of Maharashtra [continuation of Term

Loan]

200.000

200.000

BNP Paribas

--

50.000

ICICI Bank UK Limited

--

300.000

ICICI Bank Limited, India

--

150.000

Total Limit

200.000

700.000

 

 

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.40.37

UK Pound

1

Rs.81.97

Euro

1

Rs.55.73

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

--

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions