MIRA
INFORM REPORT
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Report Date : |
18.05.2007 |
IDENTIFICATION DETAILS
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Name : |
TATVA CHINTAN PHARMACEUTICAL CHEMICALS PRIVATE LIMITED |
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Registered Office : |
Laxmi Bhavan, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
12.06.1996 |
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Com. Reg. No.: |
04 - 029894 |
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CIN No.: [Company
Identification No.] |
U24232GJ1996PTC029894 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDT00509F |
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PAN No.: [Permanent
Account No.] |
AABCT0623N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Phase Transfer Catalysts, Quaternary Ammonium Compounds,
Quarterly Phosphonium Compounds, Ionic Liquids, Ether Acetates |
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 58000 |
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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. Directors are reported as
experience 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 trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Laxmi Bhavan, |
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Tel. No.: |
91-265-2437093 |
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Fax No.: |
91-265-2424495 |
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E-Mail : |
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Website : |
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Factory : |
Plot No. 502 / 8, 502 /17 and 502/18, GIDC Estate, Ankleshwar – 393
002, |
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Tel. No.: |
91-2646-253593 / 238991 |
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Fax No.: |
91-2646-238992 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Chintan Nitinkumar Shah |
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Designation : |
Director |
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Address : |
11-12, Sudhan Laxmi Jain Society, Subhanpura, |
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Date of Birth/Age : |
29.04.1973 |
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Qualification : |
B.E. (Computers) |
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Date of Appointment : |
12.06.1996 |
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Name : |
Mr. Ajaykumar Mansukhlal Patel |
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Designation : |
Director |
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Address : |
9-645 WadiFalia, Siddhmatani Sheri, |
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Date of Birth/Age : |
27.02.1972 |
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Qualification : |
B.E. (Chemical) |
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Date of Appointment : |
12.06.1996 |
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Name : |
Mr. Shekhar Rasiklal Somani |
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Designation : |
Director |
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Address : |
Mahavir Society, 51 -52, 202 Mahavir Apartment, Zaveri Sadak,
Navasari, |
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Date of Birth/Age : |
11.01.1974 |
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Qualification : |
(B. Pharm) Young Entrepreneurs |
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Date of Appointment : |
12.06.1996 |
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Name : |
Sureshbhai J.
Surti |
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Designation : |
Director |
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Address : |
39 Janak Vatika, |
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Name : |
Jairambhai A.
Dudhatra |
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Designation : |
Director |
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Address : |
100 Gaurav Flats,
Athwa Lines, |
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Name : |
Shabbit Taibibhai |
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Designation : |
Director |
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Address : |
Haribhavan, 2nd Floor, |
KEY EXECUTIVES
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Name : |
M/S J J Gandhi and Company |
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Designation : |
Company Secretary |
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Address : |
231, Pheonix Complex, Besides |
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Mobile No.: |
91-98790 20625 |
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E-Mail : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Mr. Chintan Shah |
214300 |
21.43 % |
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Mr. Ajay Patel |
174300 |
17.43 % |
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Mr. Shekhar Somani |
222700 |
22.27 % |
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Mr. Rasiklal Somani |
45300 |
4.53 % |
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Mr. Dashnaben Shah |
67000 |
6.70 % |
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Ms. Priti Patel |
117000 |
11.70 % |
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Ms. Kajal Somani |
28300 |
2.83 % |
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Ms. Shaital Shah |
42000 |
4.20 % |
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Mrs. Raxaben Patel |
42000 |
4.20 % |
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Mrs. Ranjanben Somani |
24000 |
2.40 % |
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Ms. Sheetal Somani |
2000 |
0.20 % |
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Mr. Samir Somani |
11000 |
1.10 % |
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Chaitan N Shah, HUF |
10000 |
1.00 % |
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Total |
999900 |
100.00
% |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Phase Transfer Catalysts, Quaternary Ammonium Compounds, Quarterly Phosphonium Compounds, Ionic Liquids, Ether
Acetates |
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Products : |
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Exports : |
Subject exports its products and supplies in the domestic market. |
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Imports : |
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Products : |
Raw Materials and Chemicals |
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Countries : |
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Terms : |
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Purchasing : |
DP, L/C and DA (60 days) |
GENERAL INFORMATION
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No. of Employees : |
19 |
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Bankers : |
Bank of |
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Facilities : |
Cash Credit Rs. 26.462 million from Bank of Baroda as per
Hypothecation agreement dated 21.08.2006 |
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Types of Facilities |
Amount (Rs. in Million) |
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Term Loan – I |
1.462 |
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Term Loan – II |
5.000 |
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Cash Credit (Hypothecation of stocks and Book Debts) |
15.000 |
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Inland / Import Letter of Credit (DP/ DA) |
5.000 |
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Total |
26.462 |
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It is secured by way of depositing /
Hypothecation of Land and Building situated at GIDC Plot No. 502/8, Plot No. 502/17,
and Plot No. 502/18 situated at Ankleshwar, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s Pathak Anjaria and Company Chartered Accountants (Mr. Premal J Pathak, Partner, M. No. 42634) |
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Address : |
2nd Floor, Leela Sadan, opposite Lakdi Pool, Dandia Bazar,
Vadodara – 390 001, |
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Associates/Subsidiaries : |
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Name : |
Tatva Chintan Laboratories |
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Address : |
502/17, GIDC, Ankleshwar – 393 002, |
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Date of
Incorporation : |
1992 |
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Line of Business
: |
Manufacturers
Sodium Citrate, Potassium Citrate, Sodium Acid, Citrate, Methyl Parabens, Propyl
Paruben, Sodium Methyl Paraben, Sodium Propyl Paraben, etc. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10.00/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
999900 |
Equity Shares |
Rs. 10.00/-
each |
Rs. 9.999
million |
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 |
|
9.999 |
4.011 |
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2] Reserves & Surplus |
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4.480 |
5.615 |
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NETWORTH |
|
14.479 |
9.626 |
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LOAN FUNDS |
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1] Secured Loans |
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16.101 |
13.360 |
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2] Unsecured Loans |
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5.838 |
6.444 |
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TOTAL BORROWING |
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21.939 |
19.804 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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36.418 |
29.430 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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17.512 |
15.909 |
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Capital work-in-progress |
|
0.834 |
0.325 |
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INVESTMENT |
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0.000 |
0.255 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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10.015 |
10.679 |
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Sundry Debtors |
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20.474 |
11.512 |
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Cash & Bank Balances |
|
2.099 |
2.091 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
2.598 |
1.949 |
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Total
Current Assets |
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35.186 |
26.231 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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16.936 |
13.076 |
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Provisions |
|
0.236 |
0.237 |
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Total
Current Liabilities |
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17.172 |
13.313 |
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Net Current Assets |
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18.014 |
12.918 |
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MISCELLANEOUS EXPENSES |
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0.058 |
0.023 |
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TOTAL |
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36.418 |
29.430 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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80.506 |
74.959 |
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Other Income |
|
7.569 |
10.269 |
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Total Income |
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88.075 |
85.228 |
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Profit/(Loss) Before Tax |
|
4.725 |
3.796 |
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Provision for Taxation |
|
1.017 |
1.390 |
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Profit/(Loss) After Tax |
|
3.708 |
2.406 |
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Expenditures : |
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Cost of Goods Sold |
|
0.000 |
0.000 |
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Manufacturing Expenses |
|
0.000 |
0.000 |
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Administrative Expenses |
|
0.000 |
0.000 |
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Raw Material Consumed |
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0.000 |
0.000 |
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Purchases made for re-sale |
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0.000 |
0.000 |
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Consumption of stores and spares parts |
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0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
|
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
|
0.000 |
0.000 |
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Managerial Remuneration |
|
0.000 |
0.000 |
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Payment to Auditors |
|
0.000 |
0.000 |
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Interest |
|
0.000 |
0.000 |
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Insurance Expenses |
|
0.000 |
0.000 |
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Power & Fuel |
|
0.000 |
0.000 |
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Depreciation & Amortization |
|
0.000 |
0.000 |
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Other Expenditure |
|
81.006 |
79.658 |
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Total Expenditure |
|
81.006 |
79.658 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
4.21 |
2.82 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
5.87 |
5.06 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
6.92 |
5.63 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
25.61 |
24.99 |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
1.52 |
2.06 |
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Current Ratio (Current Asset/Current Liability) |
|
|
2.05 |
1.97 |
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Quick Ratio |
|
|
1.47 |
1.17 |
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Current Liabilities / Networth |
|
|
1.19 |
1.38 |
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Fixed Asset/ Networth |
|
|
1.21 |
1.65 |
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Average Collection days |
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|
92.83 |
56.06 |
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Account Receivables Turnover |
|
|
3.93 |
6.51 |
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Inventory Turnover |
|
|
8.04 |
7.02 |
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Asset Turnover |
|
|
4.60 |
4.71 |
LOCAL AGENCY FURTHER INFORMATION
INDUSTRY
Compared with several
core industries, the pharmaceutical industry had developed over the last three
decades a robust growth face and also the lowest cost of medicines in the
world. During the first half of 1998-99, the sales of pharmaceutical sector
have increased by 18.8 percent. The profit after tax of major companies has
increased by 57 percent.
Among the policy
front, the Patents Bill 1998 was passed by the Rajya Sabha in the winter
session, 1998. The Patents Bill 1998 has the provision to grant exclusive
marketing tights to drug and agro-chemical products
The NPPA (National
Pharmaceutical Pricing Authority), the body for drugs have revised the prices
of 17 formulations; among the prices of 9 formulations have been increased.
The Indian
pharmaceutical market worth Rs.100 billions is growing at 14 percent.
Major share of
Indian drug market is dominated by 260 companies, both domestic and multi
nationals.
Website details attached:
Subject is a globally
recognized, integrated pharmaceutical company with core competencies in the
development and manufacture of Active Pharmaceutical Ingredients (APIs),Phase
Transfer Catalysts (PTC), Quaternary Ammonium Compounds (QUATS), Quaternary
Phosphonium Compounds, Pyridinium Salts and Glymes.
"Their Strength lies in what they
value: Customers, innovation, integrity, people and performance. Our mission is
to put Customers at the heart of everything we do, and this is achieved through
customer focus, personal and organizational Leadership and process
excellence."
COMPANY PHILOSOPHY:
They
believe their first responsibility is to the customers who use their products
and services. In meeting their needs everything we do must be of high quality
They must constantly strive to reduce their costs in order to maintain
reasonable prices. Customer orders must be serviced promptly and accurately.
Their suppliers and distributors must have an opportunity to make a fair
profit.
They are responsible to their employees, the men and women who
work with them throughout the world. Everyone must be considered as an
individual. They must respect their dignity and recognize their merit. They
must have a sense of security in their jobs. Compensation must be fair and
adequate, and working conditions clean, orderly and safe. They must be mindful
of ways to help their employees fulfill heir family responsibilities. Employees
must fee! Free to make suggestions and complaints, there must be equal
opportunity for employment, development and advancement for those qualified.
They must provide competent management, and their actions must be just and
ethical.
They are responsible to the communities in which they live
and work and to the world community as well. They must be good citizens -
support good works and charities and bear their fair share of taxes. They must
encourage civil improvements and better health and education. They must
maintain in good order the property they are privileged to use, protecting the
environment and natural resources.
CHEMICAL INVENTOR
In order to become a “CHEMICAL
INVENTOR” that expands operations on a global scale, subject has pursued the
unlimited potential of chemistry and continued to raise challenges since its
inception.
Concern is characterized by a flexible and advanced production system and fast,
reliable deliveries. There is a strong emphasis on quality assurance to meet
customers' demands for products of a uniform quality.
subject is working on research and development based on their superior
knowledge and advanced technical capabilities adapted to diverse market needs.
Further they are creating new values in chemistry with drive and passion, in
consideration of the global environment.
Research and Development:
Subject is committed to doing world
class research that develops innovative products. A focused effort
in defined Areas and a lasting interest in new technology are key features of
our efforts.
Subject is a technology driven company.
All the technologies for the products, being produced
currently, have been developed in-house. The technologies are not only
cost effective, but also give quality products, consistently
with higher purity. Subject has been investing aggressively in its R&D
activities.
Apart from developing the new
technologies, the R&D efforts are also aimed at continuously upgrading
the existing manufacturing techniques to improve the process, yield and
quality.
The pilot plant is equipped with glass
assemblies, stainless steel (SS) reactors, centrifuges, filters, vacuum
dryers, vacuum distillation unit, high pressure SS 316 autoclave etc. There are
facilities to carry out reactions ranging from sub zero temperature to high
temperature reactions.
The scale-up studies to develop
commercially feasible processes are done in pilot plants by a team of
experienced scientists and chemists.
Their strength lies in what they value: customers,
Innovation, integrity, people and performance. Their mission is to put
customers at the heart of everything we do, and this Is achieved through
customer focus, personal and organizational leadership and process excellence.
Manufacturing Facilities:
An organization' capabilities and intent are
strongly reflected in the product it manufactures. In other words, the
manufacturing competencies and facilities echo truly, the R&D extent
and the ability to implement it for the best of the market it targets.
Subject manufacturing strengths have established
it as a producer of world class Speciality chemicals, Phase Transfer Catalysts and
performance chemicals.
Their state-of-the-art environmentally-friendly manufacturing
facility gives them the edge to compete globally.
REACTION CAPABILITIES:
|
Acetylation |
» Chlorosulfonation |
» Ethoxylation |
» Methylation |
|
» Amination |
» Condensation |
» Friedel Craft |
» Nitration |
|
» Ammonolysis |
» Cyclization |
» Hydrogenation |
» Oxidation |
|
» Benzoylation |
» Diazotization |
» Hydrolysis |
» Quaternization |
|
» Bromination |
» Esterification |
» Hydroxylation |
» Reduction |
|
» Chlorination |
» Etherification |
» Isomerization |
» Sulphonation |
Products:
Phase Transfer Catalysts
- QUATERNARY AMMONIUM COMPOUNDS
- QUATERNARY PHOSPHONIUM COMPOUNDS
- PYRIDINIUM SALTS
- METHYLATING AGENTS
- BROMINATING AGENTS
Glymes “Glycol Diethers”
Glymes, also known as glycol diethers, are some
the most powerful solvents available today for an incredibly wide variety of
industrial processes and products. Glymes are saturated polyethers with no
functional groups, hence they are aprotic compounds that are relatively inert
chemically. These features account for their excellent solvent properties.
Ionic Liquids:
Ionic liquids are excellent substitutes for
traditional organic solvents in many typical organic reactions, often producing
higher selectivities as well as higher yields, and enhancing the reaction rate.
Additionally, they can serve as catalyst immobilization for the easy recycling
of homogeneous catalysts without need for special functionalization, and have
been successfully employed as electrolytes in electrochemistry.
"Tailor-made" solvents (optimization of the ionic liquid's
characteristics) can be achieved through a broad choice of anion and cation
combinations.
Ester Acetates
Bulk API’s
Quality Systems
An integrated management system (embracing
Environment, Health, Safety and Quality) adapted to the needs of the division
is an important requirement for competitive processes. The norms 9001 (Quality
Management Systems) and 14001 (Environmental Management Systems) of the
International Standards Organization (ISO) provide the framework for this
system as well as the international principles Sustainable Development and
Responsible Care.
The products are produced in safe equipment and processes,
whereas the consumption of raw materials and energy is based on minimal
depletion of resources.
Quality Control Laboratory
As a worldwide exporter of specialty chemicals, phase transfer
catalysts and performance chemicals, subject has a long history of applying
quality assurance and good manufacturing practices in the development,
production and quality control process They have set up a stringent quality
control system for raw materials, packing materials, in process as well as
final products.
Their QC laboratory is well equipped with the latest analytical instruments.
Quality up-gradation of our products is the main focus of their QC department,
resulting into achieving products of highest international standards.
Quality Assurance:
- Comprehensive and integrated quality assurance system is in place
as per ICH guidelines
- The QA department is instrumental in
·
Preparation of protocols and monitoring
qualifications
·
Strict process control
·
Process validations
·
Stability studies
·
Impurity Profiles
·
Training and Development
- ISO-9001 2000 CERTIFICATE
Our company is ISO-9001 2000 accredited by BVQi - EDMF's are under preparation for all the products
- We are applying for "Certificate of Suitability"
for Cetrimide and Chlorhexidine Gluconate 20%
- A WHO GMP certification is under implementation. This is
expected to enhance our presence in regulated markets
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.40.64 |
|
|
1 |
Rs.80.17 |
|
Euro |
1 |
Rs.54.74 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 |
|