MIRA
INFORM REPORT
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Report Date : |
08.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
PLETHICO
PHARMACEUTICALS LIMITED |
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Registered Office : |
37, Industrial
Estate, Pologround, Indore, Madhya Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1991 |
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Com. Reg. No.: |
6801 |
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Legal Form : |
closely held public limited liability
company |
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Line of Business : |
Manufacturer of ethical medicine, medical
disposables, surgical, ayurveda and herbal formulations. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
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Status : |
Good |
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Payment Behaviour : |
Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed pharmaceutical company, controlled and financed by Patel family. Their trade relations are reported as fair. Financial position of the company is good. Business is active. Payments are reported as correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms. |
LOCATIONS
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Registered Office : |
37, Industrial
Estate, Pologround, Indore, Madhya Pradesh, India |
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Tel. No.: |
91-731-2422881/6 |
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Fax No.: |
91-731-2420398/2421309 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate
Office : |
37/37-A, Industrial Estate, Pologround, Indore-452015, Madhya Pradesh |
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Tel.
No.: |
91-731-2422881/6 |
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Fax
No.: |
91-731-2420938/2421309 |
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E-Mail
: |
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Domestic
Division : |
41, Navkethan Industrial Estate, Mahakali Caves Road, Andheri (East) Mumbai-400093, Maharashtra |
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Tel.
No.: |
91-22-28217957/58/28235184 |
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Fax
No.: |
91-22-28204970/28235185 |
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E-Mail
: |
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Plethico
Exports : |
106, Padma Towers II, 22, Rajendra Place, New Delhi-110008 |
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Tel.
No.: |
91-11-25811701/25810495 |
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Fax
No.: |
91-11-25762410 |
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E-Mail
: |
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Factory
: |
A. B. Road, Mangla, Indore-452001, Madhya Pradesh |
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Tel.
No.: |
91-731-24228816 |
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Location : |
Owned |
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Branch
: |
1st Floor, Crimpage Corporation, Plot No. 57, Street No. 1, Marol, Andheri (East), Mumbai – 400 093 |
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Tel. No.: |
56988301 / 02 |
DIRECTORS
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Name : |
Mr. Bhaskar Bhai Patel |
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Designation : |
Chairman |
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Date of Appointment : |
04.12.1991 |
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Name : |
Mr. Karim Bhai Patel |
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Designation : |
Director |
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Date of Appointment : |
04.12.1991 |
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Name : |
Mr. Chirag Bhai Patel |
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Designation : |
Director |
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Date of Appointment : |
20.09.1994 |
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Name : |
Mr. Nikhil Bhai Patel |
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Designation : |
Director |
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Date of Appointment : |
04.12.1991 |
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Date of Ceasing : |
31.03.1995 |
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Name : |
Mr. Balwant Save |
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Designation : |
Director |
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Date of Appointment : |
04.12.1991 |
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Name : |
Mr. Saurabh Parikh |
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Designation : |
Director |
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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. Bhaskar Bhai Patel |
20,72,000 |
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Mr. Nikhil Bhai Patel |
17,11,000 |
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Mr. Shashikant Bhai Patel |
37,83,000 |
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Ms. Jayshree Patel |
8,500 |
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Mr. Chirag Patel |
8,500 |
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Mr. Bhaskar Patel |
8,500 |
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Ms. Geeta Patel |
8,500 |
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Total
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76,00,000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of ethical medicine, medical
disposables, surgical, ayurveda and herbal formulations. |
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Products : |
Paraguim DS Tablet, Suspen, P-Quin Tablet, Paraquin Injection, Desatex, Caferavial, Rockin Suspension, 2-pen, Zenotic, Ampico, Recofast Suspension, Klassalc Tablet, Ebicort Cream, Metacort Cream, Dermafine Ointment, Nex –300 Tablet, Odaff-200 Tablet, etc. |
GENERAL
INFORMATION
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No. of Employees : |
1100 |
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Bankers : |
Central Bank of India Siyaganj, Indore, Madhya Pradesh Bank of Baroda Siyaganj, Indore, Madhya Pradesh |
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Banking Relations : |
Satisfactory |
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Auditors : |
N. P. Gandhi & Company Chartered Accountants Address : 105, Esplanade, 144, M. G. Road, Fort,
Mumbai, Maharashtra |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/-
each |
Rs. 150.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
7615100 |
Equity Shares |
Rs.10/- each |
Rs. 76.151 millions |
Subscribed and Paid up Capital:
|
No.
of Shares |
Type |
Value |
Amount |
|
7600000 |
Equity Share |
Rs. 10/- each |
Rs. 76.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2003 |
31.03.2002 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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76.000 |
76.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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973.346 |
841.389 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1049.346 |
917.389 |
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LOAN FUNDS |
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1] Secured Loans |
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535.288 |
580.947 |
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2] Unsecured Loans |
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1.801 |
10.016 |
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TOTAL BORROWING |
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537.089 |
590.963 |
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DEFERRED TAX LIABILITIES |
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15.060 |
0.000 |
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TOTAL |
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1601.495 |
1508.352 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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791.574 |
715.769 |
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Capital work-in-progress |
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116.646 |
0.000 |
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INVESTMENT |
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54.325 |
55.025 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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198.170 |
211.841 |
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Sundry Debtors |
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655.729 |
485.250 |
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Cash & Bank Balances |
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18.704 |
64.830 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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262.436 |
192.311 |
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Total Current Assets |
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1135.039 |
954.232 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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473.759 |
213.792 |
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Provisions |
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22.330 |
2.900 |
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Total Current Liabilities |
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496.089 |
216.692 |
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Net Current Assets |
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638.950 |
737.540 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.018 |
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TOTAL |
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1601.495 |
1508.352 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
|
31.03.2003 |
31.03.2002 |
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Sales Turnover [including other income] |
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1486.842 |
1272.093 |
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Profit/(Loss)
Before Tax |
|
169.348 |
163.805 |
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Provision
for Taxation |
|
0.000 |
1.600 |
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Profit/(Loss)
After Tax |
|
169.348 |
162.205 |
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Total
Expenditure |
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1317.494 |
1108.288 |
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
30.09.2006 |
30.09.2005 |
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Net Sales |
3284.194 |
2241.170 |
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Other
Income |
12.900 |
3.630 |
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Total Income |
3297.094 |
2244.800 |
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Expenditure Increase/
Decrease in Stock in Trade Consumption
of raw materials Staff
Cost Other
Expenditure |
(21.208) 1849.656 127.727 346.815 |
8.820 1181.780 103.190 277.200 |
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Total Expenditure |
2302.990 |
1570.990 |
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Profit
before depreciation, interest and Tax |
994.104 |
673.810 |
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Interest
(Net) |
54.325 |
29.190 |
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Depreciation |
57.502 |
49.610 |
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Profit/(Loss)
Before Tax |
882.277 |
595.010 |
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Provision
for Taxation |
21.995 |
33.710 |
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Net Profit/(Loss) |
860.282 |
561.300 |
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Net profit after attributable to
Parent Company |
860.282 |
561.300 |
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Paid up
equity share capital |
340.667 |
76.000 |
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Reserves
excluding Revaluation Reserves |
4097.306 |
2547.430 |
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Basic
and Dilluted EPS |
2.693 |
7.386 |
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Total
of Non-Promoter Shareholding: Number
of equity shares Percentage
of shareholding |
4426667 12.99% |
0.000 N.A. |
KEY
RATIOS
|
PARTICULARS |
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31.03.2003 |
31.03.2002 |
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PAT / Total Income |
(%) |
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11.39 |
12.75 |
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Net Profit
Margin (PBT/Sales) |
(%) |
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11.39 |
12.89 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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8.79 |
9.81 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.16 |
0.65 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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0.98 |
0.88 |
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Current
Ratio (Current
Asset/Current Liability) |
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2.29 |
4.40 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 4th December 1991 at Indore in Madhya Pradesh having Company Registration Number 10-6801.
Plethico Group of Companies was incorporated in the year 1963 at Indore in Madhya Pradesh. Initially it started its operations under the name of Plazma Laboratories Marketing Generic Drugs, this later resulted in the formation of Ethic Drugs and Chemicals Manufacturing Company in the year 1968, whose strategy was to launch new antibioti and molecules as generics.
Subject started marketing of branded generics after a lot of innovation and selection. Minicycline (a brand of Doxycycline) was launched for the first time in India followed by Timizol (a combination antibacterial) both of which were well accepted by the Indian medical fraternity.
BUSINESS
Subject is engaged in manufacturing of Ethical Medicine, Medical Disposables, Surgical, Ayurveda and Herbal Formulations.
Generic Names of the Principal Products / Services of the company are :
Doxycycline Formulations
Ethambutol Formulations
Ciprofloxacin Tablets
During the year 2001 exports were Rs. 263.2 millions against Rs. 100.3 millions in the previous year.
Company plans to set up an export oriented unit at KASEZ (Kondla)
Infrastructure
Subject has consolidated system in place to aid smooth and rhythmic manufacturing which adheres to WHO GMP and MCC standards. Using the latest automated machinery, the company’s units are capable of high capacity manufacturing under the most cost effective conditions.
It has a highly sophisticated and advanced unit started for the manufacture of liquid orals and injectables is on the verge of completion the equipment selection which has been done on the basis of WHO GMP, UKMCA and USFDA standards. The injectable facility has integrated washing, sterilising, filling and sealing lines in separate controlled rooms while the liquid oral facility is based on the latest vertical gravity technology.
It has the strategic tie-ups with other manufacturing units for the manufacture of Parenterals, Disposables, Surgical Sutures and diagnostics, all adhere to internationally accepted quality guidelines.
Marketing
Subject has strong sales force over 800 personnel and operations spread across the country. It offer a wide range of therapeutic segments namely, antimalaria, antitubercular, antidiarrhoel, cardiovascular, cough and cold, anti-infective, muscle relaxants and analgesics, dermatology, vitamins and herbals.
It has ranked No. 1 in the anti-malarial segment in India for the product named REZ-Q, brand of Quinine.
In the year 1996, a division was started to establish the company’s presence in pharmaceutical formulations and surgical disposables around the globe.
Subject is not only supplying products to the company’s representatives in various countries but also to various governmental and relief organisations like NMS, STIP, World Health Organisation and the United Nations. Its presence in various countries is extended with the help of strategic alliance with 22 local companies and 3 joint ventures (Marketing).
It is one of the largest suppliers for surgical disposables and formulations to National Medical Stores, Uganda, The official procurement department of the ministry of health, Uganda.
Subject has marketing and distribution networking in other African countries like South Africa, Sudan, Ivory Coast, Ethiopia, Kenya, Tanzania, Rwanda and Ghana. It once established will help the company to create substantial presence in the African continent.
The dietary supplement/food supplement market in USA has shown an increasing trend. The research statistics have shown that the market has been growing by over 17% on an average every year. It is promoted under the brand name of “Indian Herbal Remedies”. It is also conducting business in Guyana and West Indies but this area is still is infant stage.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.30 |
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UK
Pound |
1 |
Rs.85.83 |
|
Euro |
1 |
Rs.57.92 |
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 |
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