MIRA INFORM REPORT

 

 

Report Date :

19.12.2007

 

IDENTIFICATION DETAILS

 

Name :

VIJAYSRI CHEMICALS

 

 

Registered Office :

Plot No. 39/GA, Vijayasri Enclave, Vikaspuri, Hyderabad-500 038, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1996

 

 

Legal Form :

Partnership concern with an unlimited liability of the partners.

 

 

Line of Business :

Manufacturer, Exporter and Importer of Chemicals, Pharmaceutical Ingredients, Formulations, Basic Drugs and Drug Intermediates.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 8000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established concern having satisfactory track. Partners are experienced, respectable and resourceful businessmen. Their track records are fair. Payments are usually correct and as per commitments. Nothing advance reported.

 

 

The concern can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

Plot No. 39/GA, Vijayasri Enclave, Vikaspuri, Hyderabad-500 038, Andhra Pradesh.

Tel. No.:

91-40-23811839 / 23801837 / 66344044

Fax No.:

91-40-23812064

E-Mail :

svjr@vijayasri.org

Website :

http://www.vijayasri.org

Area :

Approx 2550 Sq. ft

Location :

Owned

 

 

Factory  :

Plot No. 42, S.V. Co-Op. Industrial Estate, Phase-I, IDA Jeedimetla, Hyderabad-500 055, Andhra Pradesh, India

Tel. No.:

91-40-23702328 / 23093350 / 23095775 / 23703464

Fax No.:

91-40-23815305 / 23093350

Area :

Approx 1 Acre

Location :

Owned

 

PARTNERS

 

Name :

Mr. S.V.J. Raju

Designation :

Partner

Date of Birth/Age :

46 years

Qualification :

Graduate

Experience :

25 years

 

 

Name :

Mr. K.V. Ramarao

Designation :

Partner

Date of Birth/Age :

48 years

Qualification :

Graduate

Experience :

25 years

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Chemicals, Pharmaceutical Ingredients, Formulations, Basic Drugs and Drug Intermediates.

 

 

Exports :

 

Products :

All Products

Countries :
  • Europe
  • USA

 

 

Imports :

 

Products :

Raw Material

Countries :

China

 

 

Terms :

 

Selling :

L/C (Open), Credit (60 – 90 days)

 

 

Purchasing :

Credit (60 – 90 days), (Open credit policy for exports)

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • Bulk Manufacturers

 

 

No. of Employees :

150

 

 

Bankers :

State Bank of Hyderabad, Shapur Nagar Branch

 

 

Facilities :

C/C Rs.25.000 Millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Ganesh and Associates

Chartered Accountant

Address :

Hyderabad

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs.2.000 Millions

Borrowed :

-

Total :

Rs.2.000 Millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

31.03.2007

31.03.2006

Sales Turnover

 

350.000

200.000

 

Expected Sales (2007-08): Rs.500.000 Millions

 

LOCAL AGENCY FURTHER INFORMATION

 

As Per Web Details:

 

Subject is engaged in Custom Synthesis and manufacturing of high quality, complex intermediates for the growing Pharmaceutical Industry. Established in the Year 1996, it has been catering to the requirements of the Indian Pharma Industry, and has built up a reputation that translates into, "Vijayasri is a synonym for commitment".

 

Since inception, subject has close association with Indian pharma majors as their trusted supplier of a wide range of highest quality products and services.

 

With more than 200 employees and over 30 highly motivated scientists, subject conducts research and manufactures a wide range of products at its cGMP compliant facilities. The focus on Quality, Safety, Environment and Occupational Health is pronounced, and all the facilities have conformed to the stringent audits of their customers.

 

Facility:

 

Subject has three chemical plants strategically located at Jeedimetla & Bollaram (20 kms. from Hyderabad) Industrial Areas. They also procured 6.5 acres land in Pharma City at Parwada (near Visakhapatnam, Andhra Pradesh, developed jointly by A. P. Government and Ramky Environmental engineers) to develop API’s and intermediates manufacturing facility.

 

Their strength in manufacturing is due to their constant effort to update processes, implement safety measures and focus on consistency in product quality. Many of their fine chemicals plants are built and operate as per cGMP norms.

 

 

Their efforts to ensure consistency in product quality and operating efficiencies are now augmented with the ISO 9001:2000 Quality Systems being implemented at all their manufacturing units. In addition, Safety in the plants is a prime concern, and their aim to make their plants is accident free.

 

Custom Research and Manufacturing:

 

Subject is one stop shop for pharmaceutical companies, offering services right from the early stage development phase to commercial production, which include product development, process development and technology scale-up with in house research and integrated engineering capabilities. The Concern offers seamless scale up from grams to metric tonne quantities.

 

Their commitment to research based innovation for the convenience of the end customer ensures that they maintain confidentiality across all their projects. Subject’s business unit develops and manufactures fine chemicals and advance intermediates (AIs), which are the molecular building blocks for active substances for pharmaceuticals.

 

Core Competencies:

 

Their focus on research and development has led to strong competencies in key areas of operation as given below:

 

 

Eye on Quality:

 

Subject plants are designed to facilitate world-class manufacture of quality products. Having bench marked their products as per international quality standards and supplementing them with strong ISO systems; they are now creating their own standards.

 

Subject is dedicated to achieving highest quality products to delight customers through well-documented quality management systems.

 

The Supplies of intermediates to all customers are supported with required isolation/synthesis of impurities and characterization of impurities at its sophisticated analytical laboratories.

 

They assure quality of their products by regularly inspecting the facilities, systems and procedures to meet the current GMP norms. The employees are trained periodically on GMP requirements.

 

Research and Development:

 

Research & Development and application studies are the backbone of the Company's considerable local and selective global presence in this industry. Most of the Specialty chemicals and Drug intermediates have been developed in the in-house laboratories of the company in the last eight years. They have well equipped laboratories and pilot plant facilities for the synthesis of organic compounds and instrumental facilities for complete analysis of products and their structures.

 

The laboratory is spread over an area of 1500 sq.ft. More than thirty highly skilled scientists and engineers are engaged in research on product development and commercialization, all with the view to servicing the end user.

 

Their research objectives are:

 

 

 

Their Research & Development focuses on technical support to the customer's needs of challenging and key industry segments such as Pharmaceuticals.

 

 

Trade References:

 

 

 

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.39.57

UK Pound

1

Rs.78.93

Euro

1

Rs.56.85

 

 

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

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--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.

 

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