MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
GVK BIOSCIENCES PRIVATE LIMITED |
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Registered Office : |
# 210, My Home Tycoon 6-3-1192, Kundanbagh, Begumpet,
Hyderabad-500016, Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07-12-2000 |
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Com. Reg. No.: |
01-35826 |
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CIN No.: [Company
Identification No.] |
U74999AP2000PTC035826 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00774E |
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PAN No.: [Permanent
Account No.] |
AABCG3208J |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Provide contract research services to base of global pharmaceutical
and biotechnology companies. |
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 1120000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Satisfactory |
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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/ Corporate Office : |
# 210, My Home Tycoon 6-3-1192, Kundanbagh, Begumpet,
Hyderabad-500016, |
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Tel. No.: |
91-40-6661 9990 / 27902663 /
27902664 |
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Fax No.: |
91-40-6662 6885 / 27902665 |
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E-Mail : |
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Branches : |
GVK Biosciences Private Limited |
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Tel. No.: |
1 443 542 5805 |
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Fax No.: |
1 443 542 5801 |
DIRECTORS
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Name : |
Mr. Davinder Singh Brar |
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Designation : |
Chairman |
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Name : |
Mr. G. V. Sanjay Reddy |
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Designation : |
Director |
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Address : |
H No.6-3-1089/A/5, |
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Date of Birth/Age : |
18.11.1964 |
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Date of Appointment : |
07.12.2000 |
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Name : |
Mr. Som Bhupal |
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Designation : |
Director |
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Address : |
H No.6-3-250, Road No.1, Banjara Hills, |
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Date of Birth/Age : |
17.01.1956 |
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Date of Appointment : |
07.12.2000 |
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Name : |
Mr. G. V. Krishna Reddy |
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Designation : |
Director |
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Address : |
H No.6-3-250, Road No.1, Banjara Hills, |
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Date of Birth/Age : |
22.03.1937 |
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Date of Appointment : |
07.06.2002 |
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Name : |
Mr. G. Indira K Reddy |
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Designation : |
Director |
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Address : |
H No.6-3-250, Road No.1, Banjara Hills, |
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Date of Birth/Age : |
17.10.1944 |
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Date of Appointment : |
07.06.2002 |
KEY EXECUTIVES
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Name : |
Mr. G. Rajesh |
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Designation : |
Company Secretary |
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Address : |
206, Arvind Vihar Apartments, Arvind Nagar Colony, Gaganmahal,
Hyderabad-500029, Andhra Pradesh |
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Date of Birth/Age : |
28.11.1974 |
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Date of Appointment : |
01.04.2002 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Bodies Corporate |
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73.66 |
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Directors or their relatives |
|
13.18 |
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Total |
|
100.00 |
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Names of Shareholders |
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Percentage of
Holding |
|
GVK Dvavix Technologies Private Limited |
|
1979600 |
BUSINESS DETAILS
|
Line of Business : |
Provide contract research services to base of global
pharmaceutical and biotechnology companies. It also engaged in Clinical Pharmacology, Medicinal
Chemistry and Research Services. |
GENERAL INFORMATION
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No. of Employees : |
About 500 |
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Bankers : |
v
Kotak Mahindra Bank Limited, 36-38A, Nariman
Bhavan, 227, D, Nariman Point, Mumbai-400021, v
Canara Bank, Industrial Finance Brnach, v
YES Bank Limited v
ICICI Bank Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya & Company Chartered Accountants Contact Person : Mr. Koteswara Rao SSR |
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Address : |
403-404, Golden Green Apartments, Erramanzil Colony, |
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Tel. No. : |
91-40-23370002 / 23370004 |
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Fax No. : |
91-40-23379988 |
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Associates : |
Oroit Travel & Tours Private Limited Taj GVK Hotels & Resorts Limited GVK David Research Technologies Limited Inogent Laboratories Private Limited |
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Holding Company : |
GVK Davix Technologies Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8500000 |
Equity Shares |
Rs.10/- each |
Rs.85.000
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
35.000 |
15.202 |
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2] Share Application Money |
|
25.000 |
0.002 |
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3] Reserves & Surplus |
|
222.003 |
78.198 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
282.003 |
93.402 |
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LOAN FUNDS |
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|
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1] Secured Loans |
|
407.157 |
186.046 |
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2] Unsecured Loans |
|
15.000 |
0.000 |
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TOTAL BORROWING |
|
422.157 |
186.046 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
17.753 |
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TOTAL |
|
704.160 |
297.201 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
421.153 |
224.748 |
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Capital work-in-progress |
|
10.324 |
0.000 |
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INVESTMENT |
|
29.005 |
0.005 |
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DEFERREX TAX ASSETS |
|
17.695 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
33.325 |
18.381 |
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Sundry Debtors |
|
130.665 |
66.962 |
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Cash & Bank Balances |
|
22.093 |
5.236 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
161.062 |
36.001 |
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Total
Current Assets |
|
347.145 |
126.580 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
119.658 |
60.208 |
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Provisions |
|
8.983 |
5.008 |
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Total
Current Liabilities |
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128.641 |
65.216 |
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Net Current Assets |
|
218.504 |
69.364 |
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MISCELLANEOUS EXPENSES |
|
7.479 |
11.084 |
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TOTAL |
|
704.160 |
297.201 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
|
0.285 |
16.018 |
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Income from services |
|
697.902 |
295.492 |
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Other Income |
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31.380 |
295.507 |
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Total Income |
|
729.567 |
607.017 |
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Profit/(Loss) Before Tax |
|
111.822 |
82.280 |
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Provision for Taxation |
|
[31.984] |
20.157 |
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Profit/(Loss) After Tax |
|
143.806 |
62.123 |
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Imports : |
|
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Raw Materials |
|
0.000 |
0.000 |
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Stores & Spares |
|
0.000 |
0.000 |
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Capital Goods |
|
190.194 |
92.954 |
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Others |
|
71.057 |
34.634 |
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Total Imports |
|
261.251 |
127.588 |
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Expenditures : |
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Financial Charges |
|
24.209 |
9.319 |
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Depreciation & Amortization |
|
59.390 |
9.689 |
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Other Expenditure |
|
450.547 |
486.721 |
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Total Expenditure |
|
534.146 |
505.729 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
19.71 |
10.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
15.32 |
13.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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14.55 |
23.41 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.39 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
1.95 |
2.69 |
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Current Ratio (Current Asset/Current Liability) |
|
|
2.69 |
1.94 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
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Name of the company |
GVK
BIOSCIENCES PRIVATE LIMITED |
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Presented By |
MR. G V SANJAY REDDY,
DIRECTOR |
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1) Date and description of instrument creating the change |
Common hypothecation agreement dated 06.09.2004. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan of Rs.205.800 millions with a sub limit of FLC Rs.80.000 millions and FLC (Documentary) Rs.5.000 millions and OCC/ODBD limit of Rs.25.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
For term loan – First charge on fixed assets movable and immovable
existing and proposed to be acquired under loan including EMT of the tow
landed properties proposed to be purchased at Second charge on stocks and receivables. For working capital limits – First charge on stocks and receivable sand second charge on fixed assets present and future. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Term loan repayable in 60 equal monthly installments as detailed in Canara Bank Sanction letter at an interest rate of 7% per annum. Working capital limit with a interest rate of 8% per annum. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Industrial Finance Branch, |
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6) Date and brief description of instrument modifying the charge |
Supplemental common hypothecation agreement dated 15.07.2005. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
(Amount in
millions)
The term loan is to be repaid in 60 monthly installments. The rate of interest for OCC. Term Loan and Additional term loan is 8% per annum. Prime Security : For working capital limits – First charge on stock and book debts. For existing term loan – First charge on fixed assets movable and immovable properties of the company WDV as at 31.03.2005 Rs.243.081 millions. For additional term loan – First charge on proposed fixed assets estimated to cost Rs.403.267 millions. Collateral Security
: For working capital limits – Second charge on fixed assets having WDV Rs.243.081 millions as per PBS dated 31.03.2005. |
Website Details :
The exponential increase in the number of targets has
created vast opportunities and even greater challenges. More drug candidates
must be achieved with shorter times-to-market, making reliable and
cost-effective research support a critical factor for success.
At Subject, they provide contract research services to a
rapidly growing base of global pharmaceutical and biotechnology companies. They
combine Science, Innovation and People to help their clients address their drug
development challenges. New frontiers require new ways of working and they
believe that to deliver the true promise of science, innovation is necessary.
Their customers benefit not just from lower costs and boosted efficiencies, but
also from the infusion of fresh ideas and thinking.
Subject is part of the $500 million GVK conglomerate that
has operations in infrastructure, services, manufacturing and power. They have
a rock-solid foundation and the ability to fund their expansion. This allows
them to easily scale up teams and infrastructure in line with project demands.
At the same time, they are extremely nimble – responding with agility to
changing requirements by anticipating and adding capabilities their clients may
need in the future.
Medicinal Chemistry
Their services meet exacting
client needs for organic / medicinal chemistry and include synthesis of:
• Building Blocks, Scaffolds,
Intermediate compounds, Reference compounds
• Specially designed small
molecules or analogues for Lead Generation and Lead Optimization
• Pharmacophore based focused
libraries generated for a particular target protein
• Compound Libraries
• Lead compounds in grams and
kilos (custom synthesis)
Their streamlined project
management processes allow their clients to leverage the experience and
expertise of their scientists. Their talented teams are versatile enough to
synthesize compounds with established chemistry as well as develop novel
synthetic routes.
Informatics
Their Informatics division
analyzes data to transform biological patterns into knowledge and ultimately,
successful products and services. Their services span Curation, Cheminformatics
and Bioinformatics. Information from more than 125 journals and patents has
been curated into rich databases. This includes chemical activity, biological
activity, toxic information and pharmacological information for a large number
of compounds. Key advantages are:
• Available in searchable formats
such as Oracle, XML,
• A total of over a million
compounds and three million SAR points covering a large number of targets
• Easy querying using a
combination of structure, numeric and textual fields
• Structure, sub-structure and
molecular similarity based query
• Pharmacophore hypothesis,
analogue (3D- QSAR) or structure based drug design (virtual screening) for enhanced potency and selectivity
• Similarity and Diversity
analysis with a focus on chemical library design
Process R&D
They offer services in the areas
of process development, analytical development, quality and IP management.
They also provide process scale up services through their Kilo lab and
manufacturing facilities.
Their accomplished teams have
expertise in synthetic chemistry, characterization, impurity profiling and
documentation. They work in state - of - the - art facilities with cutting edge
equipment and analytical infrastructure.
Biology
Their Biology services complement
their existing services in Informatics and Medicinal Chemistry and complete
their services in Discovery Research. They offer comprehensive pharmacological
profiling, which encompasses services including primary screening, selectivity
and ADME. DMPK, efficacy and safety evaluations in appropriate animal models
are also available. Their offerings include a panel of validated assays and
models for determination of the biological activity of NCEs. They have
established a state of art facility that includes a cell biology lab, a
radioisotope lab and biochemical lab for compound profiling. Their team
comprises of highly skilled and qualified personnel with relevant pharma
industry experience
Clinical Research
They offer integrated or stand
alone full service contract research support for Phase I to IV clinical trials
across broad therapeutic areas.
Their services include:
Clinical Operations
• Protocol & Statistical
Design
• Medical Writing
• Site Feasibility
• Medical Monitoring
• Regulatory Affairs
• Quality Assurance
Data Management
• Project Management
• Case Record Form Design
• Statistical Analysis Plan
• Statistical Analysis and Report
• Data Validation
Knowledge Process Outsourcing
They provide comprehensive
information and knowledge in the field of intellectual property and patenting.
They offer an eclectic mix of IP - trained professionals proficient in
chemical, biotechnological, pharmaceutical and other scientific and engineering
disciplines; rendering their high quality services at a cost-effective value.
Their team is proficient in providing high-end services utilizing Delphion,
MicroPatent, and other patent databases. They have specific expertise handling
structure and sequence searches using STN.
Their services cover the entire framework
required for filing of patents including:
• Patent Search
• Prior art
• State - of - the - art
Infringement
• Validity
• Patent Writing
• Patent Drawing
• Patent Proofreading
• Claim Analysis
• File History Analysis
BA / BE
They offer integrated or stand
alone services in the areas of Clinical, Bioavailability and Bioequivalence
studies. Their services include selection of a suitable study design, protocol
and ICF preparation, interaction with Independent Ethics Committee, selection
and care for subjects, pharmacokinetic and statistical data evaluation,
integrated report preparation and safe archiving of study - related data.
Their state - of - the - art
Bioanalytical laboratory includes four clinics of 30, 34, 40 and 40 beds with
dedicated areas for phlebotomy. With a continuously updated list, they offer
highly selective and sensitive validated methods for assay of drugs,
metabolites and endogenous compounds from biological matrices using HPLC and
LC / MS / MS techniques. A strong SOP driven culture ensures compliance with
all statutory and mandatory requirements.
Best of breed talent
The capabilities and expertise of
their scientists match the most exacting international standards. Their teams
supplement the efforts of their clients, allowing them to restructure and
refocus internal resources and capabilities for maximum strategic benefit.
Stability, scalability and agility
GVK BIO is part of the $500
million GVK conglomerate with operations in infrastructure, services, power
and manufacturing. While they are extremely agile and responsive, their rock
solid foundation allows them to scale up in line with customer requirements.
Client Focus
They take the trouble to
understand unique requirements and working styles so that their clients
maximize benefits from their collaboration. They are committed to transparent
communication that fosters long term partnerships. Their comprehensive
reporting and monitoring systems keep clients in close touch with their
programs.
Complete Confidentiality
Whether it is a service based
partnership or a collaborative research program, sensitivity to client
confidentiality and IP protection permeates all their operations. Their
watertight systems encompass people, processes and policies.
State-of-the-art infrastructure
Their cutting-edge infrastructure
not only supports the high quality of their research, it also serves to
minimize their clients’ overheads and fixed investments. They currently have
nearly 100,000 sq. ft. of laboratory space.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.47 |
|
|
1 |
Rs.80.28 |
|
Euro |
1 |
Rs.54.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/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 |
|