MIRA
INFORM REPORT
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Report Date : |
29.9.2007 |
IDENTIFICATION DETAILS
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Name : |
REGENT DRUGS LIMITED |
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Registered Office : |
C-215 Defence Colony, New Delhi-110024 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.04.2002 |
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Com. Reg. No.: |
138679 |
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CIN No.: [Company
Identification No.] |
U74899DL2005PLC138679 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR12387E |
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PAN No.: [Permanent
Account No.] |
AAATR9882R |
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Legal Form : |
A Closely Held
Public Limited Liability Company. |
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Line of Business : |
Manufacturers of
Active Pharmaceutical Ingredients (API’s) and Intermediates |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
USD 643100 |
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Status : |
New Company |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is comparatively
a new Company engaged in manufacturing and marketing of Bulk drugs and
intermediates. As reported,
the Company has been acquired by M/s Tava Pharmaceutical Industries Limited, Currently the
Company does not have any track record of performance. During initial year of
its operations, it has incurred some losses. Payments are reported as slow.
However, the Company may be considered for small business dealings initially,
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
M -34 Saket New |
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E-Mail : |
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Head Office : |
13th
Milestone, |
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Tel. No.: |
91-129-2258945 to
2258945 |
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Fax No.: |
91-129-2274362 |
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E-Mail : |
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Website: |
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Location : |
Industrial |
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Corporate Office : |
C-215 Defence Colony, New Delhi-110024 |
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Factory: |
Plot No. A-2, A-2,
A-2/1,A-2/2, UPSIDC Industrial Area, Gujraula-244235, District J p Nagar,
Uttar Pradesh |
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Tel. No.: |
91-5924-252590 to
252593 |
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Fax No.: |
91-59245252314 |
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Area : |
26.5 hectors |
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Location : |
Industrial |
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Administrative
Office : |
8, Bahadur Shah
Zafar Marg, |
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Tel. No.: |
91-11-23316791 /
23716811 /23716663 |
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Fax No.: |
91-11-51509449 /
23350993 |
DIRECTORS
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Name : |
Mr. Vijay Kumar
Batra |
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Designation : |
Managing Director |
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Address : |
161, Dayanand
Vihar, Vikas Marg Extension, |
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Date of
Birth/Age : |
13th
March, 1947 |
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Qualification
: |
B. Tech |
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Experience : |
36 Years |
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Date of
Appointment : |
26th
April, 2002 |
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Previous
Employment: |
President and
Wholetime Director in J K Ph Drugs and Pharmachem Limited |
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Name : |
Dr. |
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Designation : |
Director |
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Address : |
54, |
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Date of
Birth/Age : |
4th
August, 1941 |
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Date of Appointment
: |
1st
August, 2003 |
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Name : |
Mr. David Kadmon |
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Designation : |
Director |
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Address : |
Post Box No.
1307, |
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Date of
Birth/Age : |
31st
July, 1950 |
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Date of
Appointment : |
01st
August, 2003 |
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Name : |
Mr. Sanjay Khatau
Asher |
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Designation : |
Director |
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Address : |
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Date of
Birth/Age : |
26th
November, 1963 |
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Date of
Appointment : |
1st
August, 2003 |
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Name : |
Mr. Rajesh
Kumar Goel |
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Designation : |
Company Secretary
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Address : |
House No. 1362,
Sector –37, |
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Date of
Birth/Age : |
23rd
December, 1968 |
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Date of
Appointment : |
10th
September, 2003 |
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Name : |
Mr. Erez Israeli |
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Designation : |
Director |
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Address : |
Tamar 19, Rannana
– 75321, |
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Date of
Birth/Age : |
21.03.1967 |
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Date of
Appointment : |
29.12.2005 |
KEY EXECUTIVES
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Name : |
Mr. Purushottam Das Aggarwal |
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Designation : |
Secretary |
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Address : |
19/702, East End Apartment, Mayur Vihar Phase – 1, |
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Date of Birth/Age : |
03.01.1967 |
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Date of Appointment : |
23.06.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
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Teva
Pharmaceuticals Finance Asher Khatau
Sanjay [2nd Holder] |
1 |
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Teva
Pharmaceuticals Finance Ramchandran
Madhvi [2nd Holder] |
1 |
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Teva Pharmaceuticals
Finance Chowdhury
Malashree [2nd Holder] |
1 |
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Teva
Pharmaceuticals Finance Mehta Shraddha [2nd
Holder] |
1 |
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Teva
Pharmaceuticals Finance Pardi Wala Armi N
[2nd Holder] |
1 |
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Teva
Pharmaceuticals Finance Asher Prashant [2nd
Holder] |
1 |
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Teva
Pharmaceuticals Finance |
20685244 |
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Total |
20685250 |
Equity Share Break – up (Percentage of Total Equity)
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Sr.
No. |
Category |
Percentage |
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1 |
Foreign holdings (Foreign institutional
investor(s), Foreign companie(s), Foreign Financial institution(s), Non – resident
Indian(s) or Overseas corporate bodies or Others |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Active Pharmaceutical Ingredients (API’s) and Intermediates |
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Products : |
·
Advanced Intermediates of Anti bacterial Drugs ·
CNS and Anti Hypertensive Drugs ·
Anti Inflammatory Drugs ·
Anti Cholesterol Drugs ·
Anti Coagulant Drug |
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Terms : |
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Selling : |
Cash, L/C
and Credit |
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Purchasing : |
Cash, L/C and
Credit |
PRODUCTION STATUS as on
31.12.2004:
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Bulk Drugs and
Intermediates |
MT |
41.6 |
18.39 |
GENERAL INFORMATION
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Customers : |
Wholesalers and
Manufacturers |
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No. of Employees : |
4 |
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Bankers: |
Not Divulged |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered
Accountants |
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Address : |
P-1, Aditya Vihar, Saidulajab, Opposite D Block, Saket, Mehrauli
Badarpur Road, New Delhi -110 030, Delhi, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21000000 |
Equity shares |
Rs.10/- each |
Rs. 210.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20685250 |
Equity shares |
Rs. 10/-
each |
Rs. 206.852
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 [15 months] |
31.12.2004 |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
206.853 |
206.853 |
206.853 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
[46.078] |
(130.251) |
(17.275) |
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NETWORTH |
160.775 |
76.602 |
189.578 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.822 |
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2] Unsecured Loans |
928.148 |
288.746 |
185.245 |
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TOTAL BORROWING |
928.148 |
288.746 |
186.067 |
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DEFERRED TAX LIABILITIES |
26.166 |
8.745 |
2.921 |
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DEFERRED PAYMENT LIABILITIES |
3.014 |
3.757 |
0.000 |
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TOTAL |
1118.093 |
377.850 |
378.566 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
563.610 |
278.573 |
178.944 |
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Capital work-in-progress |
94.592 |
11.325 |
10.487 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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INTANGIBLE ASSETS |
0.000 |
0.000 |
110.867 |
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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 |
365.966 |
86.613
|
70.039
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Sundry Debtors |
145.058 |
63.723
|
18.340
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Cash & Bank Balances |
270.658 |
94.824
|
89.322
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Other Current Assets |
30.233 |
11.336
|
14.049
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Loans & Advances |
17.113 |
8.047
|
13.363
|
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Total
Current Assets |
829.028 |
264.543 |
205.113
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
353.146 |
174.098
|
122.940
|
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Provisions |
15.981 |
2.493
|
3.905 |
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Total
Current Liabilities |
369.127 |
176.591 |
126.845
|
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Net Current Assets |
459.901 |
87.952 |
78.268 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1118.103 |
377.850 |
378.566 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 [15 Months] |
31.12.2004 |
31.12.2003 |
|
|
Sales Turnover |
1313.135 |
598.461 |
156.405 |
|
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Other Income |
28.301 |
15.322 |
0.000 |
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Total Income |
1341.436 |
613.783 |
156.405 |
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Profit/(Loss) Before Tax |
116.274 |
0.911 |
(14.354) |
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Provision for Taxation |
32.101 |
16.324 |
2.921 |
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Profit/(Loss) After Tax |
84.173 |
[15.413] |
(17.275) |
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Expenditures : |
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Raw Material Consumed |
885.345 |
366.164 |
NA |
|
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Consumption of stores and spares parts |
39.013 |
19.613 |
NA |
|
|
Increase/(Decrease) in Finished Goods |
[114.432] |
15.200 |
NA |
|
|
Salaries, Wages, Bonus, etc. |
102.470 |
52.448 |
NA |
|
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Managerial Remuneration |
8.064 |
5.785 |
NA |
|
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Payment to Auditors |
1.359 |
1.245 |
NA |
|
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Interest |
22.008 |
5.341 |
NA |
|
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Insurance Expenses |
4.383 |
1.241 |
NA |
|
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Power & Fuel |
76.931 |
41.933 |
NA |
|
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Depreciation & Amortization |
54.529 |
37.317 |
NA |
|
|
Other Expenditure |
145.492 |
66.585 |
NA |
|
Total Expenditure |
1225.162 |
612.872 |
158.275 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.12.2004 |
31.12.2003 |
|
PAT / Total Income |
(%) |
6.41
|
(2.51) |
(11.05) |
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|
Net Profit Margin (PBT/Sales) |
(%) |
8.85
|
0.16 |
(9.23) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.81
|
0.13 |
(2.75) |
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Return on Investment (ROI) (PBT/Networth) |
|
0.72
|
0.00 |
(0.07) |
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|
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|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
8.06
|
2.25 |
1.51 |
|
|
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|
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|
Current Ratio (Current Asset/Current Liability) |
|
2.24
|
1.50 |
1.62 |
LOCAL AGENCY FURTHER INFORMATION
The company was
originally incorporated in Kolkata having company registration No. 21-94558 and
the registered office was transferred to Delhi w.e.f. 13/07/2005
Subject import raw
materials and chemicals, spares
Subject reportedly
exports medicines and sells locally
About Tava
With its manpower strength of over 14,000 employees Teva
Pharmaceuticals Industries Limited is a global healthcare group, with
headquarters located in
Specializing in API’s and finished form of
pharmaceuticals, Teva is among the largest generic pharmaceutical companies in
the world.
Teva has manufacturing bases for API’s and
pharmaceuticals spread out in various parts of the world with its units in
With its main focus of business in US and
Europe, Teva has spread its wings in Far east and
Not only this, Teva is a leader in innovative
drug for Multiple Sclerosis.
With an aim to stay ahead always Teva is
focusing in the field of neurological and auto immune diseases.
Vision (Teva)
Teva
is a global Israel-based pharmaceutical company. Its vision is to become one of
the world’s leading pharmaceutical companies, by being the undisputed leader in
the global generics industry and by developing a global franchise in selected
innovative products originating from Israeli science.
Teva
differentiates itself by balancing its portfolio with generic and innovative
activities, by the strategic depth of its vertical integration, by combining
local customer responsiveness with a “global edge” and by successfully managing
profitable growth and complexity.
Teva’s success lies in the
leadership of its management, the skills and devotion of its people, the
quality of its offerings and its focus on customers and patients.
Director :
V.K. Batra, Managing Director
B.Tech (Chemical Engg.)
from IIT,
Dr. Vinod Kansal,
Head of R and D
PhD (Chemistry), heading the R and D Centre
since 2004, having a rich experience of about 24 years in the field of research
and development at different research institutes in India and abroad, followed
by varied and vast experience of process development of APIs at the research centres of reputed companies in India.
PhD (Chemistry), heading the factory
activities since 1996, having experience of about 31 years in quality
assurance, R and D and manufacturing activities in reputed companies in
Manufacturing Infrastructure :
RDL’s infrastructure comprises of six well-laid
manufacturing units for intermediates and APIs. Three new units meeting all the
requirements of cGMP have been built during the last one and a half years.
Spread over an area of 26.5 hectare, the location has substantial scope for
future expansions.
With the commitment to excellence and
quality, the manufacturing units are supported by integrated utilities and well
equipped quality control laboratories. All units and the entire infrastructure
are well equipped with desirable safety systems.
The manufacturing units at RDL are managed by
the dedicated and committed team of professionals in the fields of science,
technology and engineering, who are undoubtedly transforming vision of RDL into
reality.
Press
Clippings
Source: The Hindu
dated December 29, 2005
Teva inaugurates R
and D facility in Noida- Plans tie-ups with
The world’s largest
generic company, Teva Pharmaceutical Industries Limited, is stepping up its
presence in
Besides setting up
a new research and development (R and D) center here, it is also planning to
enter into partnerships with Indian firms
for biotechnology and conducting clinical research.
Speaking to
newspersons after the inauguration of the R and D center in greater Noida, Mr.
Aharon Yaari, President and CEO, Active Pharmaceutical Ingredient (API),
Division – Teva Group, said, “India plays an important part in their
development programmers and they are
looking at collaborations with Indian companies in clinical programme and
cutting edge scientific areas like biotechnology”.
Initially, studies
could be conducted on drugs for the central nervous system (CNS) and later
other therapeutic segments could be added.
“They would also
look at collaborating with
Here the company is
operating through its wholly owned subsidiary, Regent Drugs Limited that it
acquired in 2003
The
The center would
start with 60 scientists that would go up to 125 in three to four years. Teva
has close to half –a dozen R and D
centers globally and the facility in
Beside, the company
has a manufacturing facility at Gajrola in Uttar Pradesh for APIs that caters
to Teva’s global requirements.
This was inherited through the Regent
acquistion with an investment of over $ 10 million.
“About 10 molecules for various therapeutic segments
including infections diseases, antidepressants and CNS products worth $ 20
million- $ 30 million are sourced by the parent company
From regent. Another three new molecules will be added
next year”. Said Mr. V K Batra, Managing Director
He further added
that the strategy for entering the formulation business has not yet been
finalized.
On acquisitions in
Some
months ago the market was abuzz with talks of Teva scouting for a generic
company in
Early this year it
announced a $7.4 billion purchase of the US-based Ivaxz Corporation helping it
regain the No 1 global slot, bypassing rival Novartis.
Source: Business
World
World and US No 1
generics players, the $3.8 billion Teva, has its subsidiary in
Quality Control
Quality Policy
·
RDL earnestly
believes that QUALITY is not an event, a decision or a programme
with starting and finishing dates. It is an ongoing world class performance,
integrating excellence into manufacturing, planning, research and development
and marketing, in their inter-relationship with their internal and external
customers, suppliers and among theirselves.
Quality Assurance
RDL
believes that Quality is of prime importance to make a mark in global markets. Therefore,
a well-laid quality system is in place. From defining stringent inspection to
testing procedures of raw materials, their in-process quality control lab works
round the clock.
At every stage of their manufacturing processes, their quality system ensures
proper monitoring and controlling. In fact quality is not a departmental
obligation; it is significant to each and every aspect of the organisation.
With
stringent cGMP standards that are implemented at every stage of manufacturing,
their quality control laboratory is well equipped with most sophisticated
instruments.
Safety and Fire Protection
Management
Safety Policy
·
To conduct
activities in such a way as to ensure full safety of infrastructure, health and
safety of its employees and other persons working in the factory as well as
general public residing in the town outside the factory.
Standard
safety procedures are available for desired safety practices. With the full
implementation of safety practices and proper monitoring, regular safety awareness
programmes are organised to
make their safety policy more effective.
Entire
plant is supported by efficient fire hydrant system with substantial reserved
water storage capacity. To ensure full safety there is adequate provision of
fire extinguishers and water sprinklers at fire prone locations.
Fire
protection management is an effort to ensure the excellent level of safety of RDL’s employees and the general public inside and outside
the premises.
Environmental Management Systems
Environmental
To continuously
improve policies, programs and behaviours concerning
the environment and health bearing in mind the technical and scientific
development, needs of consumers and expectations of society and taking existing
legislation as a starting point.
Not only this, they organize training programmes for employees to encourage responsibility
towards immediate physical environment.
By this, they prevent the emission of waste material and they keep soil,
under-soil or underground water pollution free.
Environmental
management system infrastructure
·
For biodegradable
treatment: Well designed effluent treatment plant with primary and secondary
treatment facilities for the industrial effluent and the domestic biodegradable
effluent.
·
For non-biodegradable treatment: Large solar evaporation ponds for
non-biodegradable streams of effluent.
·
With well-designed emission systems from boilers and stand by power
generators
·
Proper scrubbing systems in different units to contain obnoxious vapors
emitting from some reactions
To maintain the ecological balance they ensure
continuous plantation of trees every year
Teva
Pharmaceuticals Finance
The subject
acquired the Bulk Drugs business (API undertaking) of J K Drugs and
Pharmaceuticals Limited pursuant to a Scheme of Arrangement filed in the
Honourable High Court, Kolkata under Sections 391-394 of the Companies Act,
1956 and Ordered on 10th March, 2003.
In August 2003
the subject was acquired by Teva Pharmaceuticals Industries Limited,
Fixed
assets:
·
· Buildings
· Plant and machinery
· Office equipment
· Furniture and Fittings
· Vehicles
· Leasehold improvements.
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 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.39.73 |
|
|
1 |
Rs.81.37 |
|
Euro |
1 |
Rs.56.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
31 |
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 |
|