MIRA INFORM REPORT

 

 

 

 

Report Date :

22nd January, 2007

 

IDENTIFICATION DETAILS

 

Name :

POLY MEDICURE LIMITED

 

 

Registered Office :

First Floor, 12, Sant Nagar, East of Kailash, New Delhi - 110 065, India

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

30/03/1995

 

 

Com. Reg. No.:

55-66923

 

 

CIN No.:

[Company Identification No.]

L74899DL1995PLC066923

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RTKP01741F

 

 

Legal Form :

Public limited liability company

 

 

Line of Business :

Manufacturer  of disposable healthcare products

 

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 1114000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track records. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. General financial position is good. Payments are usually correct and as per commitments.

 

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

 

 

LOCATIONS

 

Registered Office :

First Floor, 12, Sant Nagar, East of Kailash, New Delhi - 110 065, India

Tel. No.:

91-11-26481889, 26481893, 26481899, 26481838

Fax No.:

91-11-26481894, 26481839

E-Mail :

polymed@vsnl.com

Website :

http://www.polymedicure.com

 

 

Factory  :

Ø       Unit I – Plot No. 104-105, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India.

      Tel No. : 91-129-2307000/01

      Fax No. : 91-129-2307007/230

 

Ø       Unit II – Plot No. 115, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India.

 

Ø       Unit-lll – Plot No. 113, Sector 59, HUDA Industrial Estate, Ballabhgarh, Faridabad, Haryana, India

 

Ø       Unit-III – Plot No. 116, Sector 59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India.

 

Ø       UnitIV – Plot No. 17, Sector 3, Industrial Estate IIE, Hardwar, Uttaranchal, India

 

 

DIRECTORS

 

Name :

Mr. D. R. Mehta

Designation :

Chairman

 

 

Name :

Mr. Dr. S. R. Mohnot

Designation :

Director

 

 

Name :

Mr. J. K. Baid

Designation :

Director

 

 

Name :

Mr. Y. S. Choudhary

Designation :

Director

 

 

Name :

Mr. P. C. Surana

Designation :

Director

 

 

Name :

Mr. Himanshu Baid

Designation :

Managing Director

Qualification :

Electronics Engineer

Age :

37 years

Experience :

15 years

Date of Appointment :

20.09.1996

Last employment :

Hanuman Tin Factory

 

 

Name :

Mr. Rishi Baid

Designation :

Executive Director

Qualification :

BSME, MSME

Age :

33 years

Experience :

10 years

Date of Appointment :

1.08.1997

Last employment :

Miles Parma INC, USA

 

 

Other Personal :

 

Name :

Mr. Y. P. Bansal

Designation :

Company Secretary

 

 

Name :

Mr. D. K. Gupta

Designation :

Senior Executives – Operations

 

 

Name :

Mr. V. K. Khera, A V P

Designation :

Senior Executives – Works

 

 

Name :

Mr. J. K. Oswal

Designation :

Senior General Manager and Senior Executives – Finance

 

 

Name :

Mr. G. R. Bajaj, A V P

Designation :

Senior Executives – Marketing

 

 

Name :

Mr. P. S. Negi

Designation :

Senior Executives

 

 

 

 

Audit Committee :

 

 

 

Name :

Dr. S R Mohnot

Designation :

Director

 

 

Name :

Mr. Y S Choudhary

Designation :

Director

 

 

Name :

Mr. P C Surana

Designation :

Director

 

 

 

 

Executive Committee:

 

 

Name :

Dr. S R Mohnot

Designation :

Director

 

 

Name :

P C  Surana

Designation :

Director

 

 

Name :

Mr. D R Mehta

Designation :

Director

 

 

Name :

Mr. Himanshu Baid

Designation :

Director

 

 

Name :

Mr. Rishi Baid

Designation :

Director

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Anil Singh

Designation :

Company Secretary

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

1 . Promoters Holding

 

 

--Indian Promoters

2098096

38.854

--Foreign Promoters

--

--

Persons Acting in Concert

431200

7.985

Sub-Total (1)

2529296

46.839

 

 

 

Non-Promoters Holding

 

 

-- Flls

21034

0.39

Sub-Total (2)

21034

0.39

 

 

 

4. Others

 

 

--Private Corporate Bodies

1769528

32.769

--Indian Public

1050196

19.448

--NRIs/OCBs

21010

0.389

--Any other -Clearing member

8936

0.165

Sub-Total (3)

2849670

52.771

 

 

 

Grand Total

5400000

100.000

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer  of disposable healthcare products

 

 

Products :

Products

ITC Code

Blood Bag

090189032

I V Cannula

090183930

Catheters

090183910

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Medical Disposables

Lacs Nos.

1972

1210

114341325

 

 

 

 

 

GENERAL INFORMATION

 

Bankers :

State Bank of India

 

 

Facilities :

SECURED LOAN

31.03.2006

(Rs. in millions)

Term Loan from Bank

 

Rupee Loan

85.315

Foreign Currency Loan

57.380

Cash / Export Credit Loan

 

From Bank

4.619

Other loans

 

Vehicle Loans

0.968

Total

148.282

 

Notes :

1 Term Loans from Bank are secured by first charge by way of mortgage on all immovable assets and hypothecation of all the movable assets ( both present and future) subject to prior charge in favour of the Company's bankers on specified movable assets for working capital borrowings and guaranteed by three promoter directors of the company.

2 Cash/Export Credit Loans are secured by first charge by way of hypothecation of all current assets(both present and future) and second charge by way of hypothecation of all the fixed assets of the Company, and further secured by guarantee of three promoter directors of the Company.

3 Vehicle Loans are secured by hypothecation/lien of the respective vehicles.

4 Term Loans repayable within one year Rs 26.800 millions ( previous year Rs.23.820 millions)

5 Other Loans repayable within one year Rs. 0.560 millions ( previous year Rs. 1.064 millions)

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

Chaturvedi and Company

Chartered Accountants

 

 

Associates :

Ultra for Medical Products (UMIC), Egypt

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

6000000

 

Equity Shares

Rs. 10 each

Rs. 60.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5400000

Equity Shares

Rs. 10 each

 Rs. 54.000 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

54.000

54.000

53.060

3] Reserves & Surplus

224.573

165.135

114.057
NETWORTH

278.573

219.135

167.117

LOAN FUNDS

 

 

 

1] Secured Loans

148.282

162.846

111.662

2] Unsecured Loans

0.000

0.000

0.000
TOTAL BORROWING

148.282

162.846

111.662

DEFERRED TAX LIABILITIES

20.619

19.628

15.858

DEFERRED PAYMENT CREDIT

8.875

4.099

6.831
 

 

 

 
TOTAL

456.349

405.708

301.468
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

322.017

298.198

221.024
Capital work-in-progress

31.620

7.911

11.386
 

 

 

 
INVESTMENT

22.041

8.746

3.291
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
75.014
80.795

58.046
 
Sundry Debtors
86.089
59.884

62.215
 
Cash & Bank Balances
7.160
10.188

8.703
 
Other Current Assets
4.162
6.752

11.924
 
Loans & Advances
22.307
28.233

12.504
Total Current Assets

194.732
185.852

153.392
Less : CURRENT LIABILITIES & PROVISIONS

 
 

 
 
Current Liabilities
99.329
80.477

76.616
 
Provisions
17.010
14.522

11.009
Total Current Liabilities

116.339
94.999

87.625
Net Current Assets

78.393
90.853

65.767
 

 

 

 
MISCELLANEOUS EXPENSES

2.278

0.000

0.000
 

 

 

 
TOTAL

456.349

405.708

301.468

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004
Sales Turnover [including other income]

705.764

650.831

496.563
 

 

 

 
Profit/(Loss) Before Tax

85.162

76.500

61.824
Provision for Taxation

13.409

15.670

18.492
Profit/(Loss) After Tax

71.753

60.830

43.332
 

 

 

 

Export Value

525.156

49.079

NA

 

 

 

 

Import Value

200.772

211.942

NA
 

 

 

 
Total Expenditure

620.441

581.068

434.667


QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2006

30.09.2006

Type

 

 1st Qtr

 2nd Qtr

 Sales Turnover

 

201.600

201.200

 Other Income

 

0.000

0.200

 Total Income

 

201.600

201.400

 Total Expenditure

 

161.300

162.700

 Operating Profit

 

40.300

38.700

 Interest

 

4.300

5.100

 Gross Profit

 

36.000

33.600

 Depreciation

 

8.900

8.800

 Tax

 

5.900

4.200

 Reported PAT

 

20.900

20.100

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio
0.65

0.74

0.62

Long Term Debt-Equity Ratio
0.60

0.65

0.56

Current Ratio
1.36

1.34

1.40

TURNOVER RATIOS
 

 

 

Fixed Assets
1.65

1.83

1.97

Inventory
9.21

9.37

10.30

Debtors
9.82

10.65

8.21

Interest Cover Ratio
4.77

4.77

5.13

Operating Profit Margin(%)
19.77

18.96

19.22

Profit Before Interest And Tax Margin(%)
15.03

14.88

15.69

Cash Profit Margin(%)
14.75

13.42

12.37

Adjusted Net Profit Margin(%)
10.01

9.35

8.84

Return On Capital Employed(%)
26.31

28.82

32.37

Return On Net Worth(%)
28.85

31.48

29.50

 

 

 

 

STOCK PRICES

 

Face Value

Rs. 10.00

High

Rs. 163.90

Low

Rs. 160.35

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Promoted by Shree J K Baid, Shree Himanshu Baid, Shree B R Mehta, Shree Rishi Baid, Poly Medicure Limited was incorporated on 30th Mar.'95. 
 
 The Company is in the process of setting up of the project for the manufacturing of disposable blood bags, I V cannula, Endotracheal Tubes, cold Therapy pads and common disposables. The company has come out with a public issue of 22,50,000 equity shares in Mar.'96. 
 
 The company has entered into the collaboration with Martech Medical Products and Cold Ice Inc. of USA for technical know how transfer and joint marketing arrangement.  
 
 Company has started commercial production by April' 97 with an installed capacity of Medical Disposables (16500000 Nos ) and Cold/Hot Therapy Packs (500000 Nos). 
 
 During the year 1997-98, the company produced 5.106 millions nos. of Medical Disposables which constitute 42.60% of the installed capacity utilisation. The company exported its products of the value Rs. 5.028 millions. The company has been assessed and registeres as an ISO 9002 company by SGS Yarsley International Certification Service Limited, United Kingdom. 
 
 The export turnover for the financial year 1999-2000, was Rs.60.600 millions as compared to Rs.30.850 millions in the previous year.

 

Operation:

 

During the year under review, Company has been able to achieve net sales of Rs. 704.300 millions as compared to Rs. 637.100 millions for the previous financial year ended 31st March 2005 showing an increase of 10.55%. This has been achieved despite the effect that the selling prices remained under pressure due to stiff global competition and appreciation of Rupee against US doller. Despite pressure on realizations the Company was able to improve the net profit due to higher volumes. The Profit before Tax rose to Rs.85.200 millions as against Rs.76.500 millions recording an increase of 11.37%. The Profit after Tax was Rs.71.800 millions as against Rs. 60.800 millions showing an increase of 18.09%. 

 
The Exports for the year ended 31st March, 2006 amount to Rs. 603.700 millions representing 84.4% of total sales as against Rs.563.500 millions representing 86.3% of the total sales for the year ended 31st March 2005. 

 

Future Outlook:

 

The operations of year 2006-07 are likely to benefit from the enhancement of production capacities. With this increased production capacity, the future outlook of the Company is reasonably positive. However, the profitability is dependent on the competition in the domestic and export market, exchange rate fluctuations and overall economic development globally.

 

Expansion Programme

 

The Company has successfully completed the Expansion Project of Blood Bags during the last quarter of Financial Year 2005-06. The expansion project for enhancement of the capacity of I.V. Cannula and for the plant for manufacturing of Needles is progressing well and is likely to be completed by third and forth quarters respectively in the current Financial Year. 
 
The Company has also initiated action for implementation of a new project at Hardwar (Uttaranchal) for the manufacturing of various Medical Disposables. The project will be implemented in two phases and the first phase of the project is likely to be completed by December 2006.

 

Acquisition of US Company

 

The Company is in the process of acquiring 75% stake in a US- based Company in related field against which the Company has already made an investment of USD 300,000. This will give the Company increased access to the US market, as the US Company possesses two FDA approvals and eight Patents in the Safety Medical Devices.

 

Fixed Assets :

Ø       Freehold Land

Ø       Building

Ø       Plant & Machinery

Ø       Furniture & Fixture

Ø       Office Equipment

Ø       Vehicles

Ø       Capital Work in Progress

Building

(Including capital advances Rs. NIL, previous year Rs. 3119 thousand)

Plant and Machinery

(Including capital advances Rs. 5129 thousand, previous year Rs. 1719 thousand)

 

 

AS PER WBSITE

 

Company history and profile

 

POLYMED was conceived and established by a group of making the benefit of modern healthcare available to the mankind at affordable price. This  unique philosophy has been the driving force behind he company since its inception in 1995. Today it has grown into one of the most dynamically versatile manufacturers of disposable healthcare products in the region with over 40 different products.

 

Modern production facilities and processes

 

POLYMED manufactures its products using state of the art technology in ultra modern factories covering over 100000 square feet of manufacturing floor space with about 10,000  square feet of clean rooms of class 100,000 to class 100. A tool room with modern facilities & CNC machine supports the production processes. A high degree of automation and an effective process control help in complying with GMP requirements.

 

 

 Highly trained and experienced personnel

 

POLYMED's main strength is its fully committed, well trained and technically competent personnel. A highly qualified, experienced and motivated management provides guidance and support to the team of over 500 people employed in different activities to factory operations are round to clock.

 

Quality  assurance

 

POLYMED's quality assurance system encompasses a comprehensive and exhaustive series of visual, physical, chemical and biological & microbiological tests and inspection at different stages in the production cycle. Beginning with constant surveillance of raw materials of raw materials and ist suppliers; intensive in-process control of all manufactured components & sub-assemblies to the final inspection & testing of the finished products. The systems are well documented and the adherences to quality norms meticulous. POLYMED  has successfully implemented a quality management system and has been accredited by SGS Yarsley International Certification Services, United Kingdom with ISO 9001:2000, ISO-13488:1996 and CE mark for some of its products. For rest of the products, the company has been accredited CE mark by DNV, Norway thus making the entire product range match up to International Quality Standards.

 

Innovation and continues improvement

 

To keep pace with the ever changing requirements of the market, POLYMED has a fully staffed and highly equipped R & D section to design and develop new and innovative products. Using the latest CAD / CAM technology, the new product development in fast and improvements, based on market response and customer feedback, are made with ease. Assuring world class products at affordable prices is the hall mark of POLYMED.

 

Infusion Therapy Product

 

Ø       I.V. Cannulae 1001-1005, 1007,1018-19-22

Ø       Three Way Stop Cock –1006

Ø       Three Way Stop Cock Hp-1020

Ø       Stop cock with Ext. Tube- 1008A, 1008 B

Ø       I.V. Infusion Sets- 1009,1013,1014,1017

Ø       Flow Regulator – 1011

Ø       Obturator – 1015

Ø       Extension Tube (High Pressure)- 1012 H

Ø       Extension Tube (Low Pressure) – 1012 L

Ø       Polyvol Burette Set – 1016

 

 

           


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.44.23

UK Pound

1

Rs.87.56

Euro

1

Rs.57.61

 

 

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

YES

--LISTED

YES/NO

YES

--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

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

 

 

 

 

 

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