MIRA INFORM REPORT
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Report Date : |
06.01.2007 |
IDENTIFICATION DETAILS
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Name : |
CIREX
PHARMACEUTICALS LIMITED |
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Registered Office : |
8-3-166/7/1,
Hetero House, Erragadda, Hyderabad 500018, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21/12/1990 |
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Com. Reg. No.: |
01-12119 |
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CIN No.: [Company Identification No.] |
L24239AP1990PLC012119 |
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TAN No.: [Tax Deduction & Collection Account No.] |
HYDC00689D |
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PAN No.: [Permanent Account No.] |
AAACC9554A |
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Legal Form : |
A
closely held public limited liability company. |
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Line of Business : |
Manufacturer,
Processor, Seller, Buyer, Dealer, Exporter and Importer of all types of
Drugs, Drug Intermediates, Dry Satlers Medical Preparations, Chemical and
Other Connected Materials. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 450000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track.
Directors are reported as experienced, respectable and resourceful
industrialist. Their trade relations are fair. Financials position is good.
Payments are correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
8-3-166/7/1,
Hetero House, Erragadda, Hyderabad 500018, Andhra Pradesh, India |
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Tel. No.: |
91-40-23704923/24/25 |
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Fax No.: |
91-40-23704923/23714250 |
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E-Mail : |
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Website : |
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Factory: |
Gundla Manchnoor Village, Hatnoor Mandal, Medak, Andhra Pradesh, India |
DIRECTORS
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Name : |
Dr. B. Partha Saradhi Reddy |
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Designation : |
Managing
Director |
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Address : |
Plot
No.389, Road No.22/B, Jublihills Chequepost, Madhapoor Road,
Hyderabad-500038, Andhra Pradesh, India |
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Date of Birth/Age : |
06.03.1954 |
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Date of Appointment : |
01.04.2000 |
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Name : |
Mr.
M. Pera Reddy |
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Designation : |
Director |
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Address : |
Flat
No.301, Park View Apartments, Plot No.60, Pragathi Nagar, Yousufguda,
Hyderabad-500045, Andhra Pradesh, India |
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Date of Birth/Age : |
15.07.1962 |
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Date of Appointment : |
05.02.1999 |
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Name : |
Mr.
P. Viswanadha Raju |
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Designation : |
Director
Works |
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Address : |
House
No.57, Aruna Enclave, Tirumalgiri, Secunderabad-500015, Andhra Pradesh, India |
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Date of Birth/Age : |
24.07.1955 |
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Date of Appointment : |
05.02.1999 |
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Name : |
Mr.
K. Ratnakar Reddy |
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Designation : |
Director
– R&D |
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Address : |
Plot
No.102, Sai Spurthi Apartments, Motinagar, Erragadda, Hyderabad-500038,
Andhra Pradesh, India |
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Date of Birth/Age : |
03.08.1956 |
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Date of Appointment : |
01.11.2001 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
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Mr. B. Vamshi Krishna |
41470 |
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Mr. M. Pera Reddy |
4250 |
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Mr. P. Viswanadha Raju |
2050 |
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Mr. M. Madhavi |
500 |
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Mr. J. Srihari Reddy |
6700 |
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Mr. K. Ratnakar Reddy |
1050 |
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Mr. M. Krishna Sindhuri |
14000 |
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Total |
70020 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Processor, Seller, Buyer, Dealer, Exporter and Importer of all types of
Drugs, Drug Intermediates, Dry Satlers Medical Preparations, Chemical and
Other Connected Materials. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Bulk Drugs and Intermediates |
Kg |
70000 |
51687 |
GENERAL INFORMATION
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No. of Employees : |
150 |
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Bankers : |
State Bank of Hyderabad, Industrial Finance Branch, Balanagar, Hyderabad, Andhra Pradesh, India State Bank of Hyderabad, Industrial Estate Branch, Santhnagar, Hyderabad, Andhra Pradesh, India |
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Facilities : |
Secured
Loans :
Rs. (in millions)
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Banking Relations : |
Satisfactory |
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Auditors : |
M. V. Narayana Reddy and Company Chartered Accountant |
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Address: |
504,
Vijaysree Apartments, Ameerpet, Hyderabad-500073, Andhra Pradesh, India |
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Sister Concern : |
Ř
Hetero Drugs Limited Ř
Hetero Labs Private
Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity
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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Issued |
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92230 |
Equity
Shares |
Rs. 100 Each |
Rs. 9.223 millions |
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Subscribed and Paid
Up |
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70020 |
Equity
Shares |
Rs. 100 Each |
Rs. 7.002 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 |
7.113 |
7.113 |
7.113 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
104.306 |
76.084 |
69.061 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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111.419 |
83.197 |
76.174 |
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LOAN FUNDS |
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1] Secured Loans |
116.839 |
135.936 |
45.167 |
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2] Unsecured Loans |
95.223 |
25.223 |
29.923 |
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TOTAL
BORROWING
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212.062 |
161.159 |
75.090 |
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DEFERRED TAX LIABILITIES |
24.415 |
20.704 |
17.125 |
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TOTAL
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347.896 |
265.060 |
168.389 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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203.563 |
173.735 |
133.481 |
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Capital work-in-progress
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0.000 |
0.000 |
0.000 |
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INVESTMENT
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0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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114.987 |
72.082 |
60.445 |
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Sundry Debtors
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314.441 |
42.533 |
42.282 |
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Cash & Bank Balances
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5.456 |
8.413 |
3.172 |
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Other Current Assets
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0.000 |
0.000 |
0.000 |
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Loans & Advances
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28.728 |
14.515 |
7.955 |
Total Current Assets
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463.612 |
137.543 |
113.854 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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319.103 |
46.218 |
77.759 |
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Provisions
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0.176 |
0.000 |
1.187 |
Total Current Liabilities
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319.279 |
46.218 |
78.946 |
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Net Current
Assets
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144.333 |
91.325 |
34.908 |
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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347.896 |
265.060 |
168.390 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
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653.028 |
292.665 |
239.144 |
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Profit/(Loss) Before Tax
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39.317 |
10.053 |
18.425 |
Provision for Taxation
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0.000 |
0.000 |
6.466 |
Profit/(Loss) After Tax
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39.317 |
10.053 |
11.959 |
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Import Value
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NA |
NA |
35.534 |
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Total Expenditure
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613.711 |
282.612 |
220.719 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
6.02
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3.43 |
5.00 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.02
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3.43 |
7.69 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.89
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3.23 |
7.45 |
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Return on Investment (ROI) (PBT/Networth) |
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0.35
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0.12 |
0.24 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.77
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2.49 |
2.05 |
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Current Ratio (Current Asset/Current Liability) |
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1.45
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2.97 |
1.44 |
LOCAL AGENCY FURTHER INFORMATION
The
company’s fixed assets include Land, Factory Buildings, Plant and Machinery,
Electrical Equipment, Lab Equipment, ETP Machinery, Furniture, Office
Equipment, Vehicles, Computers and Capital WIP.
Web details are attached herewith:-
"A Company with a difference"- that sums up the description of Hetero.
Hetero speaks of growth hitherto unheard of. It is today a name that symbolizes
hard work, experience and success.
A relatively young company in the Indian Pharmaceutical Industry
making rapid strides both nationally and internationally.
Pragmatism combined with tremendous motivation to achieve the best have been
drivers of Hetero’s success.
Involved in the manufacture of active pharmaceutical ingredients
and finished dosage forms, Hetero is one of the very few companies which have
been able to carve a niche in the market given the present scenario where it
requires intellectual strength, core competencies and the right vision for the
future.
Hetero has come a long way since its incorporation in the year
1993 to be recognized as a strong player in the field of pharmaceuticals, as a
result of its combined strength in research, manufacture and marketing.
Established in the year 1993, with the motto to be the best in the API Manufacture, Hetero today embodies the vision of a top notch player in developing and commercializing products catering to a variety of therapeutic categories, integrating into a leading finished dosage manufacturer.
True
to the Statement, "Where the Future Started Yesterday", with a
foresight on the current trends in the Pharmaceutical Market, Hetero has grown
from strength to strength, combining its Research Strengths, Manufacturing
Capabilities, and Human Resources and well established quality management
system.
With
full-fledged marketing capabilities, the company has been able to market its
products in over 80 countries in Asia, Middle-east, Eastern Europe and Latin
America. With it's compliance to the most stringent regulatory requirements,
Hetero has today gained foothold to market several of its APIs in the United
States, Canada and Europe.
With
all six manufacturing facilities being supported by excellent infrastructure
and compliance to the GMP requirements, Hetero has crossed numerous milestones
in a comparatively small period since its inception.
Hetero’s
emphasis has always been on Research and Development. The emphasis was to
ensure that the processes being adopted for the products are cost effective,
safe to handle and with optimum advantage in terms of yield and quality.
Having laid solid foundation towards the end Hetero’s R&D approach has also
taken cognizance of the present scenario where stringent patent regime is under
implementation. Hetero’s team of scientists has been and are involved in
developing non-infringing processes for its products. With its ability to
explore high and achieve the best, Hetero has been able to file patents for
several of its processes.
From an organization, which was concentrating on developing processes for API’s
Hetero, has now a full-fledged R&D Facility for formulation development.
Hetero research capabilities have been proven with its ability to carry out a
wide range of reactions, which are difficult to carry out.
Given it's research capabilities Hetero has today has initiated contract
research. Towards the end, the company has already evolved its strategies and
is into discussions with renowned companies for carrying out the Contract
Research. Custom synthesis is one area where the company has been concentrating
on and has initiating work on several projects.
In addition to the above, the Company is now on the threshold of commencing
basic research activities to develop and screening new chemical entities for
different therapeutic categories.
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.44.30 |
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UK
Pound |
1 |
Rs.85.83 |
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Euro |
1 |
Rs.57.92 |
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 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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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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 |
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<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |
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NR |
In
view of the lack of information, we have no basis upon which to recommend
credit dealings |
No Rating |
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