MIRA
INFORM REPORT
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Report Date : |
20.07.2007 |
IDENTIFICATION DETAILS
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Name : |
CORVINE CHEMICALS AND PHARMACEUTICALS LIMITED |
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Registered Office : |
Plot No.135-E, Kolhar Industrial Area, Bidar-588401, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.06.1992 |
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Com. Reg. No.: |
08 - 13271 |
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CIN No.: [Company
Identification No.] |
U02423KA1992PLC013271 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is engaged in Production of Industrial Chemicals. |
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 : |
USD 690000 |
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Status : |
Satisfactory |
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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 records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No.135-E, Kolhar Industrial Area, Bidar-588401, |
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Tel. No.: |
91-8482-232297
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Fax No.: |
91-8482-232204 |
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E-Mail : |
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Administrative Office : |
301, Arien, 6-3-873/1,
Panjagutta, Hyderabad-500082, Andhra Pradesh |
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Tel. No.: |
91-40-3320469 |
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Fax No.: |
91-40-3320246 |
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Corporate Office : |
Plot No.735, Venkateshwara Hills, Road No.3, Banjara Hills,
Hyderabad-500034, |
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Tel. No.: |
91-40-23354928/ 23354972 |
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Fax No.: |
91-40-23354929 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. M. Mahipal Reddy |
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Designation : |
Managing Director |
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Address : |
Plot # 63, MLA and MPs Colony, Road # 10C, Jubilee Hills,
Hyderabad-500033, Andhra Pradesh |
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Date of Birth/Age : |
07.07.1958 |
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Date of Appointment : |
21.11.1994 |
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Name : |
Mr. B G Manohar |
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Designation : |
Director |
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Address : |
H No.21, |
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Date of Birth/Age : |
10.04.1940 |
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Date of Appointment : |
14.10.1999 |
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Name : |
Mr. C H Raji Reddy |
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Designation : |
Managing Director |
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Address : |
Plot # 63, MLA and MPs Colony, Road # 10C, Jubilee Hills,
Hyderabad-500033, Andhra Pradesh |
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Date of Birth/Age : |
06.06.1943 |
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Date of Appointment : |
14.10.1999 |
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Name : |
Ms. K Shashikala |
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Designation : |
Director |
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Name : |
Dr. Susarala Subramaniyam |
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Designation : |
Director |
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Address : |
# 22-647/155A, Central Excise Colony, New Nallakunta, Hyderabad-500013,
Andhra Pradesh |
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Date of Birth/Age : |
05.09.1945 |
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Date of Appointment : |
16.08.2006 |
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Name : |
Mr. Baddam R Reddy |
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Designation : |
Director |
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Address : |
Plot No.880, Vivekanada Nagar, Bagh-Ameeri, Kukatpally, Hyderabad-500072,
Andhra Pradesh |
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Date of Birth/Age : |
13.02.1947 |
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Date of Appointment : |
16.08.2006 |
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Name : |
Mr. Rajendra N Wadekar |
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Designation : |
Director |
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Address : |
Dev-Chhaya 3-4-252/1, Kachiguda, Hyderabad-500027, Andhra Pradesh |
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Date of Birth/Age : |
07.08.1962 |
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Date of Appointment : |
16.08.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Mahipal Reddy |
435000 |
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Ms. Shobha Rani |
15000 |
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Ms. Lalitha |
15000 |
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Ms. Manjula |
15000 |
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Mr. Srinivas |
60000 |
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Mr. Jaipal Reddy |
7500 |
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Ms. Annapurna |
60000 |
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Ms. Rama Devi |
60000 |
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Mr. G Manohar |
225000 |
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Ms. C H Laxmi |
90000 |
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Mr. CH Bhanu Prasad |
90000 |
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Mr. Raji Reddy |
150000 |
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Ms. Lalitha |
60000 |
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Ms. Kalpna Reddy |
7500 |
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Mr. Subhash |
60000 |
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Category |
Percentage of
Holding |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in Production of Industrial Chemicals. |
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Products : |
Fine
Chemicals Drug
Intermediates Fluoroquinolic
Acid Drugs Ciprofloxacin
Hcl |
GENERAL INFORMATION
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Customers : |
For Export
Market American Pacific
Corporation, Los vegas, USA For Domestic
Market Astrix
Laboratories Limited |
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Bankers : |
v
State Bank of v
Canara Bank v
State Bank of v
Andhra Bank, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G Rama Mohan & Company Chartered Accountants |
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Address : |
7/A, 1st Floor, Vengalarao Nagar, Hyderabad-500038, Andhra
Pradesh |
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Associates/Subsidiaries : |
Prabhava Organics Pvt Limited
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1350000 |
Equity Shares |
Rs.10.00 each |
Rs.13.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1350000 |
Equity Shares |
Rs.10.00
each |
Rs.13.500
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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13.500 |
13.500 |
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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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160.904 |
145.645 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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174.404 |
159.145 |
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LOAN FUNDS |
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1] Secured Loans |
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68.420 |
52.939 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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68.420 |
52.939 |
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DEFERRED TAX LIABILITIES |
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2.469 |
1.145 |
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TOTAL |
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245.293 |
213.230 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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27.444 |
24.063 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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128.556 |
10.306 |
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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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19.039 |
14.033 |
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Sundry Debtors |
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35.990 |
9.233 |
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Cash & Bank Balances |
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0.165 |
0.887 |
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Other Current Assets |
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80.484 |
189.144 |
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Loans & Advances |
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6.498 |
8.875 |
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Total
Current Assets |
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142.176 |
222.171 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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43.587 |
40.246 |
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Provisions |
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9.402 |
3.202 |
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Total
Current Liabilities |
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52.989 |
43.448 |
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Net Current Assets |
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89.186 |
178.723 |
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MISCELLANEOUS EXPENSES |
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0.106 |
0.138 |
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TOTAL |
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245.293 |
213.230 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover
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201.224 |
100.856 |
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Other Income
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15.012 |
3.135 |
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Total Income
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216.236 |
103.988 |
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CHANGE IN STOCK
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10.090 |
(7.698) |
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Profit/ (Loss) Before Tax
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36.960 |
9.714 |
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Provision for Taxation
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12.645 |
3.646 |
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Profit/ (Loss) After Tax
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24.315 |
6.068 |
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Import Value
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34.470 |
69.311 |
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Expenditures:
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Total Expenses
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176.340 |
83.441 |
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Financial Charges
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6.326 |
2.617 |
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Depreciation
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6.700 |
0.518 |
Total Expenditure
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189.366 |
86.576 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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11.24 |
5.84 |
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Net Profit Margin (PBT/Sales) |
(%) |
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18.37 |
9.63 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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21.79 |
3.95 |
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Return on Investment (ROI) (PBT/Networth) |
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0.21 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.70 |
0.60 |
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Current Ratio (Current Asset/Current Liability) |
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2.68 |
5.11 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Corporation identity number or foreign company registrations number of the company |
U02423KA1992PLC013271 |
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Name of the company |
CORVINE CHEMICALS AND PHARMACEUTICALS
LIMITED |
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Address |
Plot No.135-E, Kolhar Industrial Area, Bidar, |
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This Form is for |
Modification of charge |
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Type of Charges |
Immovable property Book debts Movable property |
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Particular of the charge holder |
State Bank of |
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Nature or description of the instrument creating charge |
Supplemental agreement of loan for increase in the overall limit (From
No.C1-A) Supplemental agreement of hypothecation of goods and assets for
increase in the overall limit (Form C-2-A) Letter regarding the grant of individual limits within the overall
limit (Form C-5) Agreement to mortgage Sanction letter Copy of resolutions |
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Date of the instrument creating charge |
28.11.2006 |
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Amount Secure by the charge |
Rs.95.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest : Rate of interest on cash credit (Hypothecation) at 1% below BPLR –
Presently 10.5% p.a. Rate of interest on cash credit (PC/PCFC)- As per RBI directives.
Presently 8.25% Commission of letter of credit – As per Bank/FEDAI rates Commission on bank guarantee – As per Bank’s standard rates. Terms of repayment The working capital limits is repayable on demand Margin Margin on raw materials, stock in process, finished goods, stores and
spares at 25% and on book debts/receivables (cover period 120 days) at 40% Extent and operation of the charge The charge operates as a first charge on the entire current assets of
the company both present and future and the proposed land and building s of
the company. |
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Modification charge Charge identification number of the charge to be modified |
80017792 |
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Particulars of the Property charged |
Primary: First charge on entire current assets by way of hypothecation
of stocks of raw materials, stocks in process, finished goods, stores ad
spares and book debts. Collateral : First charge on the entire fixed assets for the company
both present and future Land and building situated at Plot No.135E, Kolhar Industrial Area,
Bidar, and Karnataka measuring 7890 Sq.mtrs. proposed to be acquired by the
company. |
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Particulars of present modification |
Existing limits of Rs.65.100 millions enhanced to Rs.95.000 millions.
The enhanced limit consisting Of Cash credit (Hypothecation)/ Cash credit (PC/PCFC)/ FUBD/ FUBP limit
of Rs.50.000 millions Letter of credit limit of Rs.40.000 millions and Bank guarantee limit of Rs.5.000 millions and secured by entire
current assets and fixed assets of the company both present and future and
the land and building proposed to be acquired in the name of the company. |
Website Details:
Profile
The company was incorporated on 22nd June 1992. The present promoters
took over the company in November1994 and commenced commercial production in
July 1995 the promoters of the company are technocrat entrepreneurs with sound
technical & marketing.
Board of Directors
M. Mahipal Reddy, Date of Birth
07.07.1958 (48 years) is the Managing Director. He has specialized in Marketing
& Finance in his MBA course and is a B.E in Electronics & Communication
Engineering. He has been actively associated with the chemical industry since
1988 and has been instrumental in identifying the markets in
Ch. Raji Reddy, Date Of Birth
06.06.1943 Managing Director (Tech) is a B.Tech in Chemical Engineering. He
worked in Indian Drugs & Pharmaceuticals Limited (IDPL) for 17 years in
various departments like production, pilot plant, design etc.
The manufacturing facilities of Corvine Chemicals & Pharmaceuticals Limited
have been designed by him and he has been instrumental in the development of
new products for the company viz, Sodium Azide, Tetrazoles, Trityl Chloride
etc. Mr. Ch. Raji Reddy manages all the operations in the plant like
production, maintenance, R&D, safety etc.
B. G. Manohar, Date Of Birth 10.04.1940
Executive Director is a B.Sc, B.Tech in Chemical Engineering. He worked in IDPL
for 13 years. He has vast experience in production, design, procurement etc.
Mr. B. G. Manohar manages the procurement, sales and Logistics.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.39 |
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1 |
Rs.82.93 |
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Euro |
1 |
Rs.55.75 |
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 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
YES |
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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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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
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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 |
|
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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