MIRA INFORM REPORT
|
Report Date : |
26th
February, 2007 |
IDENTIFICATION DETAILS
|
Name : |
TRANSCHEM
LIMITED |
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Registered Office : |
103/104, Vardhaman Industrial Complex, Near Hotel Golden Palace, L. B.
S. Marg, Thane (West) - 400 601, Maharashtra, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.11.1976 |
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Com. Reg. No.: |
11-19327 |
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CIN No.: [Company Identification No.] |
L24100MH1976PLC019327 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
MUMT09721F |
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PAN No.: [Permanent Account No.] |
AAACT2645 |
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Legal Form : |
A public
limited liability company. The shares of the company are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturers
and exporters of Active Pharmaceutical Ingredients (APIs) and Drug
Intermediates. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate
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Payment Behaviour : |
Slow
by average 45 days |
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Litigation : |
Clear |
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Comments : |
Subject
is an old company having moderate track of performance and financial status.
Profit margin is very low. Payments are reported as slow by average 45 days. The
company can be considered for small to mediocre business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
103/104, Vardhaman Industrial Complex, Near Hotel Golden Palace, L. B.
S. Marg, Thane (West) - 400 601, Maharashtra, India. |
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Tel. No.: |
91-22-25415252 – 53 / 25412879 – 80 / 25433482
– 25433483 |
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Fax No.: |
91-22-25349370 / 25426442 |
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E-Mail : |
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Website : |
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Factory
1 : |
v
Plot
No. 7, M.I.D.C., Kalyan Badlapur Road, Ambernath, Maharashtra, India v
Gat
No. 379, Village Bebadohol, Taluka Maval, District Pune – 410506,
Maharashtra, India |
DIRECTORS
|
Name : |
Mr. Rajen K. Desai |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. G.
S. Bhat |
|
Designation : |
Executive Director [Pharma] |
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|
Name : |
Mr.
Umesh M. Saraf |
|
Designation : |
Executive Director |
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Name : |
Mr.
Shivanand G. Hegde |
|
Designation : |
Director
|
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|
Name : |
Mr. Hemant Lad |
|
Designation : |
Director
|
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|
Name : |
Ms. Bina Shah |
|
Designation : |
Director
|
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|
Name : |
Mr. Neerav Merchant |
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Designation : |
Director
|
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Name : |
Mr. D.
V. Kulkarni |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
|
|
|
Indian
Promoters |
2217196 |
18.11 |
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Non Promoter’s Holding |
|
|
|
Mutual
Funds and UTI |
26100 |
0.21 |
|
Banks,
Financial Institutions, Insurance Companies |
13730 |
0.11 |
|
FIIS |
18700 |
0.15 |
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|
|
|
|
Others |
|
|
|
Private
Corporate Bodies |
978260 |
7.99 |
|
Indian
Public |
8907044 |
72.77 |
|
NRIs/OCBs |
78970 |
0.65 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and exporters of Active Pharmaceutical Ingredients (APIs) and Drug
Intermediates. |
|
|
|
|
Products : |
Frusemide,
Fendendazole and Albendazoie anthelmintics
v
Albendazole
USP/EP/BP v
Clorsulon
USP v
Fenbendazole
EP/BP VET v
Oxfendazole
BP VET /EP v
Mebemdazole
USP /BP/EP v
Mebendazolepolymorp
‘B’ & ‘C’ v
Ricobendazole v
Ricobendazole
Hydrochlordi v
Flubendazole
EP v
Oxibendazole v
Triclabendazole v
Oxyclozanide
BP VET Other Api’s
v
Ramipril v
Cyromazine v
Bendroflumethiazide
USP v
Diminazene
Diaceturate v
Frusemide
USP/EP/BP v
Toldimfos
Sodium v
5-Amino
Salicylic Acid USP v
Quinapyramine
Salts/ Prosalt The
company’s future products are: v Closantel v
Lamotrigine v
Diclazuril v
Risperidone v
Quinapril v
Sertraline v
Citalopram v
Olanazapine v
Paroxetine |
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|
|
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Exports to : |
USA,
Canada, Mexico |
GENERAL INFORMATION
|
No. of Employees : |
250 |
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|
|
|
Bankers : |
v
Bharat
Overseas Bank Limited, Habeeb Towers, 758, Anna Salai, Chennai - 600 002,
Tamil Nadu, India v
Canara
Bank, Warden House, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra,
India v
Oriental
Bank of Commerce |
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Banking Relations : |
Unknown
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Auditors : |
L. T.
Jadhav & Company Chartered
Accountants |
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|
|
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Associates/Subsidiaries : |
v
P
I Drugs and Pharmaceuticals Limited v
Prema
Health Care Limited v
Elixir
Chemicals Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
12240000 |
Equity Shares |
Rs.10/- each |
Rs. 122.400 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 |
122.400 |
122.400 |
122.400 |
|
|
2] Reserves & Surplus |
328.700 |
322.600 |
274.700 |
|
|
NETWORTH |
451.100 |
445.000 |
397.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
16.600 |
166.200 |
|
|
2] Unsecured Loans |
12.500 |
32.400 |
0.000 |
|
|
TOTAL BORROWING |
12.500 |
49.000 |
166.200 |
|
|
|
|
|
|
|
|
TOTAL |
463.600 |
494.000 |
563.300 |
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|
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|
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APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
331.200 |
351.500 |
361.600 |
|
|
Capital
work-in-progress |
2.600 |
0.000 |
0.500 |
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|
|
|
|
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INVESTMENT |
26.300 |
25.700 |
25.700 |
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|
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|
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
113.400
|
95.300 |
93.400 |
|
|
Sundry
Debtors |
93.300
|
81.400 |
62.400 |
|
|
Cash
& Bank Balances |
50.600
|
64.300 |
65.500 |
|
|
Loans
& Advances |
42.200
|
23.100 |
76.500 |
|
Total Current
Assets |
299.500
|
264.100 |
297.800 |
|
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
189.100
|
143.200 |
122.300 |
|
|
Provisions |
6.900
|
4.100 |
0.000 |
|
Total Current
Liabilities |
196.000
|
147.300 |
122.300 |
|
|
Net Current Assets |
103.500
|
116.800 |
175.500 |
|
|
|
|
|
|
|
|
TOTAL |
463.600 |
494.000 |
563.300 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales
Turnover [including other income] |
612.600 |
558.500 |
441.600 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
4.700 |
50.600 |
9.400 |
|
Provision for Taxation |
(1.800) |
2.300 |
(1.300) |
|
Profit/(Loss) After Tax |
6.500 |
48.300 |
10.700 |
|
|
|
|
|
|
Total Expenditure |
610.500 |
554.900 |
439.400 |
QUARTERLY
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
182.600 |
172.500 |
185.900 |
|
Other Income |
2.200 |
4.400 |
1.900 |
|
Total Income |
184.800 |
176.900 |
187.800 |
|
Total Expenditure |
175.700 |
164.600 |
179.300 |
|
Operating Profit |
9.100 |
12.300 |
8.500 |
|
Interest |
0.000 |
0.000 |
0.500 |
|
Gross Profit |
9.100 |
12.300 |
0.800 |
|
Depreciation |
7.100 |
6.000 |
5.500 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
2.000 |
6.300 |
2.500 |
200606
Quarter 1 --:
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs. (1.899) million
Consumption of Raw Materials Rs. 115.447 million Staff Cost Rs. 4.789 million
Processing Charges Rs. 32.496 million Other Expenditure Rs. 24.869 million.
200612 Quarter 3 --: Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs (16.243) million Consumption of Raw
Materials Rs 125.155 million Staff Cost Rs 5.856 million Processing Charges Rs
38.238 million Other Expenditure Rs 26.357 million.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.07 |
0.26 |
0.43 |
|
Long
Term Debt Equity Ratio |
0.07 |
0.24 |
0.39 |
|
Current
Ratio |
1.64 |
1.97 |
2.11 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.09 |
0.91 |
0.80 |
|
Inventory
|
5.76 |
5.27 |
4.55 |
|
Debtors |
6.89 |
6.91 |
5.82 |
|
Interest
Cover Ratio |
2.31 |
8.67 |
4.48 |
|
Operating
Profit Margin (%) |
5.55 |
16.26 |
8.69 |
|
Profit
Before Interest and Tax Margin (%) |
1.38 |
11.51 |
2.83 |
|
Cash
Profit Margin (%) |
5.25 |
14.47 |
8.37 |
|
Adjusted
Net Profit Margin (%) |
1.08 |
9.72 |
2.50 |
|
Return
on Capital Employed (%) |
1.75 |
10.94 |
2.19 |
|
Return on Net Worth (%) |
1.47 |
11.63 |
2.77 |
STOCK PRICES
|
Face
Value |
Rs.10.00 |
|
High |
Rs.19.45 |
|
Low |
Rs.19.45 |
LOCAL AGENCY FURTHER INFORMATION
History
Transchem
Limited (TL) was incorporated as a private limited company on 18.11.1976 and
converted into a public limited company on 13.04.1992 The company is promoted by
Chemitex Corporation in association with Rajen Desai, who is the chairman of
the company.
TL came out with a public issue of 1.422 Millions zero-interest FCDs of
Rs.120.00 at par aggregating Rs.170.700 Millions in October 1993, to meet part
of the capital cost, and to finance the margin money for working capital, etc,
at a project cost of Rs.270.000 Millions. The company manufactures bulk drugs
in Maharashtra. The company's main products are frusemide, fenbendazole and
albendazoie. TL has signed an MoU with Dalsem Reciap Agro Industries, Holland,
for their mushroom project -- a 100% EOU -- with buy-back arrangement for a
period of 5 years, extendable for another 5 years. The company exports to the
US, Canada, Mexico, etc.
The company is diversifying into mushroom cultivation. Transchem Limited (TL)
is also in the process of finalising collaboration with FTC, Holland, for
technological transfer in growing asparagus, strawberries and
raspberries.
During the year 1999-2000, the mushroom division did well and the sale of
Diminazine Aceturate indicate that the company is emerging as a front runner in
the product. The company has finalised and commercialised process for
Cloursulon and Toldium Phos Sodium.
The company has got a contract during the year 2000-01,from an international
firm to supply Triclabendazole.
BUSINESS
Subject
acts as manufacturers and exporters of Active Pharmaceutical Ingredients (APIs)
and Drug Intermediates.
Subject is
specialised in development of high quality of Anthelmintics particularly
Benzimidazoles.
As Per
Website Details
About
Us
v Transchem limited is a
professionally managed, public limited company.
v The API manufacturing operations
were started in 1993.
v Reputed as quality conscious
manufacturer and exporter of specialized high quality API's and pharmaceutical
intermediates.
v Four state of the art GMP
approved facilities at multiple locations in India.
v Largest producer of widest range
of Anthelmintic API's (Anti-Parasitic) in the world, manufactured under one
roof in WHO GMP accredited facility.
v Also offers specialized range of
human use API's.
v Focus on Anti-Hypertensive and
Anti-Diabetic range of products.
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.44.31 |
|
UK
Pound |
1 |
Rs.86.96 |
|
Euro |
1 |
Rs.58.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
29 |
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 |
|
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