MIRA
INFORM REPORT
|
Report Date : |
27.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ABL BIOTECHNOLOGIES LIMITED |
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Registered Office : |
55,
Third East Street, Kamarajar Nagar, Thiruvanmiyur, Chennai 600 041, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.03.1992 |
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Com. Reg. No.: |
22340 |
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CIN No.: [Company
Identification No.] |
L52599TN1992PLC022340 |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Subject is engaged in the business of Providing Aquatic Biotechnology
and Trading in Aqua Inputs like Aquariums and Accessories. |
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 500000 |
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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 company having satisfactory track. Trade
relations are fair. General financial position is satisfactory. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
55,
Third East Street, Kamarajar Nagar, Thiruvanmiyur, Chennai 600 041,
Tamilnadu, India |
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Tel. No.: |
91-44-52020501 / 52020502 |
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Fax No.: |
91-44-52020957 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. G. Subramanian |
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Designation : |
Director |
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Name : |
Mr. S. Raveendran |
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Designation : |
Director |
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Name : |
Mr. K. 0. Isaac |
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Designation : |
Chairman and Managing Director |
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Name : |
Ms. Rosemary Isaac |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. S. Ramabadran |
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Designation : |
Chief Financial Officer & Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter's
Holding |
|
|
|
1. Promoters |
|
|
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Indian promoters |
1136400 |
27.72 |
|
Foreign
promoters |
NIL |
NIL |
|
2. Persons
acting in concert |
NIL |
NIL |
|
Sub-total |
1136400 |
27.72 |
|
B. Non-promoters
holding |
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|
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3. Institutional
Investors |
|
|
|
a. Mutual Funds
and UTI |
21800 |
0.53 |
|
b. Banks, financial
institutions, insurance companies ( central / state govt. institutions / non
– government institutions) |
147418 |
3.60 |
|
c. Flls |
15000 |
0.36 |
|
Sub-total |
184218 |
4.49 |
|
4. Private
corporate bodies |
993501 |
24.23 |
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5. Indian public |
1766548 |
43.08 |
|
6. NRIs/OCBs |
13464 |
0.33 |
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7. Any other
(please specify) |
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Independent
Directors, |
NIL |
NIL |
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Clearing
members, |
5869 |
0.14 |
|
Trust |
NIL |
NIL |
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Sub-total |
2779382 |
67.79 |
|
Grand Total |
4100000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of Providing Aquatic Biotechnology
and Trading in Aqua Inputs like Aquariums and Accessories. |
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Products : |
Softgel Capsule v
Beta Carotene v
Lycopene v Lutein |
GENERAL
INFORMATION
|
Customers : |
v
Zydus Cadila Healthcare Limited v
J.B Chemicals & Pharmaceutical Limited v
Intas Pharmaceuticals Limited v
Biochem v
Fourrts India Laboratories Private Limited v
Khandelwal Laboratories Private Limited v
Elder Healthcare Limited v
Indswift Limited v
T.T.K Healthcare Limited v
Wytro Medize |
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No. of Employees : |
150 |
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Bankers : |
State Bank of India Adyar Branch, 5, 1st
Cross Street, Kasturba Nagar, Adyar, Chennai - 600 020 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Pratapkaran Paul & Company Chartered Accountants |
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Address : |
New No. 7, Old No.4, Karpagam Garden, II Main Road, Adyar, Chennai -
600 020 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,00,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
41,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 41.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
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|
|
|
|
1] Share Capital |
41.000 |
41.000 |
41.000 |
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2] Share Application Money |
16.500 |
0.000 |
0.000 |
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3] Reserves & Surplus |
67.611 |
9.368 |
[7.400] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
125.111 |
50.368 |
33.600 |
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LOAN FUNDS |
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|
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1] Secured Loans |
52.934 |
28.750 |
12.400 |
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2] Unsecured Loans |
48.372 |
22.956 |
2.700 |
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TOTAL BORROWING |
101.306 |
51.706 |
15.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
226.417 |
102.074 |
48.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
73.828 |
26.742 |
27.900 |
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Capital work-in-progress |
59.249 |
0.000 |
0.000 |
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INVESTMENT |
13.000 |
13.000 |
24.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
24.751
|
16.310 |
13.600 |
|
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Sundry Debtors |
30.720
|
30.573 |
1.400 |
|
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Cash & Bank Balances |
25.071
|
0.043 |
0.100 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
44.539
|
45.368 |
2.800 |
|
Total
Current Assets |
125.081
|
92.294 |
17.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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|
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Current Liabilities |
44.237
|
41.608 |
28.600 |
|
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Provisions |
3.314
|
1.735 |
0.800 |
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Total
Current Liabilities |
47.551
|
43.343 |
29.400 |
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Net Current Assets |
77.530
|
48.951 |
[11.500] |
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MISCELLANEOUS EXPENSES |
2.810 |
13.381 |
8.300 |
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TOTAL |
226.417 |
102.074 |
48.700 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
125.402 |
99.515 |
67.800 |
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Other Income |
15.688 |
10.082 |
2.800 |
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Total Income |
141.090 |
109.597 |
70.600 |
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|
|
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Profit/(Loss) Before Tax |
24.558 |
18.046 |
6.400 |
|
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Provision for Taxation |
3.062 |
1.254 |
0.300 |
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Profit/(Loss) After Tax |
21.496 |
16.792 |
6.100 |
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Earnings in Foreign Currency : |
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|
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Total Earnings |
NA |
0.800 |
NA |
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Expenditures : |
|
|
|
|
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Increase/(Decrease) in Finished Goods |
1.019 |
[0.639] |
[6.200] |
|
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Material Cost |
44.610 |
32.286 |
30.800 |
|
|
Direct Expenses |
46.222 |
41.391 |
0.000 |
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Personnel Cost |
7.295 |
6.026 |
0.000 |
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Administrative
Expenses |
8.323 |
7.606 |
0.000 |
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Selling Expenses |
0.575 |
0.420 |
6.800 |
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Miscellaneous
Expenses written off |
0.218 |
0.000 |
1.300 |
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Financial
Charges |
6.193 |
2.810 |
1.500 |
|
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Depreciation |
2.076 |
1.652 |
1.500 |
|
|
Other Expenses |
0.000 |
0.000 |
28.500 |
|
Total Expenditure |
116.531 |
91.552 |
64.200 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
50.100
|
59.700
|
|
Other Income |
|
0.600
|
0.800
|
|
Total Income |
|
50.700
|
60.500
|
|
Total Expenditure |
|
42.700
|
49.400
|
|
Operating Profit |
|
8.000
|
11.100
|
|
Interest |
|
1.400
|
3.300
|
|
Gross Profit |
|
6.600
|
7.800
|
|
Depreciation |
|
0.500
|
0.500
|
|
Tax |
|
0.800
|
0.900
|
|
Reported PAT |
|
5.300
|
6.400
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.26 |
0.80 |
0.42 |
|
Long Term Debt-Equity Ratio |
0.69 |
0.45 |
0.15 |
|
Current Ratio |
1.23 |
1.08 |
0.42 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
2.97 |
2.71 |
1.89 |
|
Inventory |
6.10 |
6.66 |
7.29 |
|
Debtors |
4.09 |
6.22 |
54.24 |
|
Interest Cover Ratio |
4.97 |
7.46 |
5.27 |
|
Operating Profit Margin(%) |
26.24 |
22.61 |
13.86 |
|
Profit Before Interest And Tax
Margin(%) |
24.56 |
21.01 |
11.65 |
|
Cash Profit Margin(%) |
18.82 |
18.49 |
11.21 |
|
Adjusted Net Profit Margin(%) |
17.15 |
16.88 |
9.00 |
|
Return On Capital Employed(%) |
23.88 |
30.62 |
16.77 |
|
Return On Net Worth(%) |
35.48 |
36.76 |
14.88 |
LOCAL AGENCY FURTHER
INFORMATION
OVERVIEW
ABL
Biotechnologies Limited (ABL), a pioneer in harnessing microbial bio diversity
has been focusing on developing technologies having applications in nutraceutical,
cosmeceutical, and pharmaceutical areas. ABL has been working in the areas of
drug discovery and microbial metabolites merging the synergies of biotechnology
and Pharmaceuticals.
OPERATIONS
a) Spectrum Division
Spectrum continues to contribute over 90%
of the Company's revenue and profitability for the year. This Division today
offers over 200 brands to around 100 companies in India. The operations of this
Division continues to function around innovative formulations offered to the
Pharmaceutical Industry. However, during the year the Company had to contend
with serious challenges in competing with products produced from the excise
free zone in Himachal Pradesh and Uttaranchal, whereby, products at almost half
the price were made available to the market. In order to tackle this
competition, Spectrum is in the process of finalising lease of two
manufacturing facilities in Uttranchal so as to pass on the cost advantages of
the Excise Free Zone to the customers.
Also
during the year this division has expanded its product developmental activity
focused at both new formulations as well as new drug delivery models. Spectrum
therefore, proposes to enter the parenteral space so as to complete its product
basket.
b) Invia Health Division
Invia
Health offering 22 brands of the Company to the medical fraternity has been
consolidating and stabilising its operations in Tamil Nadu. It is expected that
during the year 2007-08, this division will expand to cover markets in the
States of Kerala, Karnataka, Andhra Pradesh and Orissa.
c)
R&D Division
The
Company's new research facility was inaugurated by the Secretary, Department of
Science and Technology, Government of India, in January this year. The scope of
this facility has been enhanced to include genomics and drug delivery systems,
apart from drug discovery from microbial metabolites. This division continues
to attract support from the Central Government for a number of projects. The
Company has initiated discussions with pharmaceutical majors in India and
abroad for collaborative work in the areas of drug discovery and development.
d)
Projects Division The Company has decided to establish composite projects for
the production of DHA and Phycocyanin and formulations and proposes to support
this through equity funding from the proposed Rights Issue as well as
additional debt. It is expected that execution of these projects will commence
during the current year.
It is expected
that the Company will improve its performance during the year ahead and offer
improved results to its stock holders.
FIXED ASSETS
v
Freehold Land
v
Revaluation Reserve on Land Building
v
Plant and machinery
v
Electrical Instruments
v
Office Equipment
v
Data process Equipment
v
Furniture and Fittings
v
Vehicles
AS PER WEBSITE
Subject, based
in Chennai, South India, is a publicly held company incorporated in 1992 and a
pioneer in harnessing the biodiversity of the Indian Marine environment. ABL
has been working on identification and commercial extraction of bio-chemicals,
predominantly from microbes, that have far reaching applications as
nutritional, cosmetic, pharmaceutical and industrial intermediates.
Subject's
Research and Development facility located at Vishakapatnam was the only one in
the private sector in India, to be accorded accreditation and recognition by
the Department of Scientific and Industrial Research, Ministry of Science and
Technology, Government of India. The Microbial Metabolites Laboratory at
Chennai works on evaluating new sources of biochemicals from marine organisms.
Subject has
been conducting research on Polysaccharides, Essential Fatty Acids, Natural
Pigments, Tracers and Tags with considerable success. Present focus includes
work on pharmaceuticals like anti-bacterials and anti-virals, enzymes,
bio-molecular materials, bio-monitors and diagnostics, bio-pesticides,
bioremediation and aquaculture
In addition to
in-house competencies, ABL enjoys a symbiotic and collaborative relationship
through joint development programmes with institutions of advanced research in
India, like the National Facility for Marine Cyanobacteria, Bharathidasan
University, Trichy, the National Institute of Oceanography, The Madras
University and the Dr.A.L.M Post Graduate Institute of Medical Sciences,
Madras.
Subject's
efforts are focused at the enormous potential of Indian biodiversity for the
production of new tools to both fight as well as prevent disease. ABL's
initiatives will be towards:
- Sale or licensing of technologies
- Production of Biochemical intermediates
- Aquatic Biotechnology Research
- Formulation of products for the
therapeutics industry
- Contract Research
Associates and Subsidiaries
Samudra Biopharma Private Limited
Samudra
Biopharma Private Limited (SBPL), a company incorporated in India has been
promoted by ABL Biotechnologies Limited, and currently produces Betacarotene,
Lutein, Lycopene and other trace Carotenoids from marine algae.
Samudra Biopharma focuses at the
production of various nutrition supplements through the harnessing of aquatic
organisms. Samudra Biopharma defines its operational niche in the healthcare
segment through a basket of bulk and formulated products aimed at diverse
markets and segments at a global level.
Samudra
Biopharma offers user industry both bulk and formulated products, the latter in
soft gelatine capsules packed in blister strips or PET bottles. Samudra
Biopharma also produces carotenoid fortified products including Jams, Squashes,
Ketchups and Sauces, Cooking Oils, Chocolates, etc.
All these
products are supplied to over 25 large and medium scale corporations all over
India. Samudra Biopharma has a basket of around one hundred formulations at
present catering to various segments ranging from Pediatrics, Pregnancy,
Diabetes, Cardiology, Ophthalmology and Dermpatology. These are marketed to the
pharmaceutical industry in India and is expected to achieve an annual turnover
of three to four Million Dollars in 2005-06.
CellGen Biologicals Private Limited
CellGen has
been promoted as a wholly owned subsidiary of ABL. It seeks to establish
India’s first facility for the production of the essential fatty acid DHA. DHA
has been found to be crucial in neuronal development of children as well as in
management of triglycerides and cholesterols, as a drug delivery module for
chemotherapy in the treatment of cancer as well as an essential therapy for
degenerative neural disorders in Geriatrics.
Partnership Opportunities
Strategic
partnerships are a fundamental part of ABL’s strategy to maximize the impact of
its technology and build long-term value. ABL partners with pharmaceutical and
biotechnology companies to enhance drug discovery by providing considerable
inputs either through licencing of developed technologies or co-developing them
with partners. ABL also partners with platform companies to leverage
complementary technologies. Given the significant value created for its
partners, ABL expects to share in both the financial and intellectual property value
generated through these alliances.
In addition to
pharmaceutical collaborations, ABL welcomes alliances with companies that have
complementary intellectual property, technology or expertise. Such companies
might include those with novel phytopharmaceuticals, intellectual property,
informatics capabilities, compound libraries, synthetic chemistry capabilities,
or biological platform expertise.
Products and
formulations:
ABL has
developed over 150 formulations both in therapeutics as well as in nutrition,
for the pharma industry. Apart from offering various finished products from its
three manufacturing facilities, ABL also welcomes opportunities for strategic
alliances with pharma and marketing companies.
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.39.85 |
|
UK Pound |
1 |
Rs.82.61 |
|
Euro |
1 |
Rs.59.21 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
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. |
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 |
|