MIRA
INFORM REPORT
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Report Date : |
19.10.2007 |
IDENTIFICATION DETAILS
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Name : |
HEZEN PHARMACEUTICALS LIMITED |
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Registered Office : |
D. No. 19-79/23, Plot No. 23, Balaji Enclave, Uppal, Hyderabad 500039,
Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.07.2004 |
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Com. Reg. No.: |
01-43758 |
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CIN No.: [Company
Identification No.] |
U24239AP2004PTC043758 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH01409C |
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PAN No.: [Permanent
Account No.] |
AABCH6263J |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacture and Exporter of Pharmaceuticals Formulations such as
Tablet, Capsule and Liquid Orals. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 93200 |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a new company and yet to establish its track. Directors are reported as experienced,
respectable and having satisfactory means of their own. Their trade relations are fair. No payment records are known. The company can be considered for small to mediocre business dealings
on safe and secured trade terms and conditions, initially. |
LOCATIONS
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Registered Office: |
D. No. 19-79/23, Plot No. 23, Balaji Enclave, Uppal, Hyderabad 500039,
Andhra Pradesh |
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Mobile No. : |
91-9347329715 |
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Factory : |
Plot No. 41 & 44A, Anrich Industrial Estate, IDA Bollaram, Medak
502325, |
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Tel. No.: |
91-8458-279765 / 66 |
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Mobile No.: |
91-9347329715 |
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Fax No.: |
91-8458-279767 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. K. Veeranna |
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Designation : |
Director |
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Address : |
19-79/23, Plot No. 23, Balaji Enclave, Kalyanpuri colony, Uppal
500039, |
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Name : |
Mr. K. Prasad Reddy |
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Designation : |
Director |
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Name : |
Mr. M. A. Mubeen |
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Designation : |
Director |
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Name : |
Mr. Raghuveerraj Acharya |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Venkat Reddy |
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Designation : |
Managing Director |
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Name : |
Mr. Prasad Reddy |
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Designation : |
Executive Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Equity Share
Breakup |
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Directors or relatives of Directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and Exporter of Pharmaceuticals Formulations such as
Tablet, Capsule and Liquid Orals. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
S. Kasthuri Rengan & Company |
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Address : |
3-6-378/1, street no. 2, Himayatnagar, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 10/- each |
Rs. 2.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 10/- each |
Rs. 2.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.500 |
0.500 |
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2] Share Application Money |
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22.820 |
18.620 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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23.320 |
19.120 |
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LOAN FUNDS |
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1] Secured Loans |
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53.755 |
-- |
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2] Unsecured Loans |
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0.065 |
0.100 |
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TOTAL BORROWING |
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53.820 |
0.100 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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77.140 |
19.220 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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48.083 |
0.709 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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15.254 |
0.000 |
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Cash & Bank Balances |
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4.354 |
2.009 |
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Loans & Advances |
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14.035 |
16.512 |
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Total
Current Assets |
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33.643 |
18.521 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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4.412 |
0.000 |
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Provisions |
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0.174 |
0.010 |
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Total
Current Liabilities |
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4.586 |
0.010 |
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Net Current Assets |
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29.057 |
18.511 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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77.140 |
19.220 |
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PROFIT & LOSS
ACCOUNT
As the company has yet to commence commercial operations,
no profit and loss account has been made.
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.50 |
0.005 |
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Current Ratio (Current Asset/Current Liability) |
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7.33 |
1852.1 |
LOCAL AGENCY FURTHER INFORMATION
Review of
Operations
Company is in the process of implementing the project for Manufacture of
Pharma Formulations and Company has availed Term Loan from State Bank of
Form 8
Bankers Charges
Report as per Registry
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Name of the company |
HEZEN
PHARMACEUTICALS LIMITED |
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Presented By |
SHRI. K. PRASAD REDDY,
DIRECTOR |
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1) Date and description of instrument creating the change |
1. Composite hypothecation
agreement (Term Loan) dated 01.07.2005 2. Composite hypothecation
agreement (working capital) dated 01.07.2005 3. Confirmation of Deposit of title deeds dated 01.07.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
1. Term loan Rs. 25.000 Millions 2. SOD Rs. 10.000 Millions
--------------------------- Total Rs. 35.000 Millions
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of entire
existing and proposed plant and machinery of the company. Hypothecation of
entire stocks consisting of Raw material, work in process and finished goods
and receivables of the company. Un registered
equitable mortgage of Factory land situated at Sy. No. 84, Plot No. 44B
admeasuring Ac. 0.51 cents or 2455.58 sy.yards at Anrich Industrial Estate,
Bollaram Village and Grampanchayat Jinnaram Mendal, Medak District. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
operates as charge to secure the repayment and discharge by the company to
Syndicate Bank for its Credit Limits of Rs. 35.000 Millions together with
interest, further interest liquidated damages, costs, charges, expenses. The security
created under the said Deed of Hypothecation is to be a continuing security. |
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5) Name and Address and description of the person entitled to the charge. |
Syndicate Bank J.S.N. Colony
Branch Habsiguda, |
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6) Date and brief description of instrument modifying the charge |
Letter of
handling over title deeds of
properties dated 06.07.2005. Confirmation of
Deposit of title deeds dated 06.07.2005. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Un registered
equitable mortgage of factory land and building admeasuring Ac. 0.50 cents or
2420 sq. yards or 2023.40 sq. mts. In plot no. 44A, and Ac 0.50 cents or 2420
sq. yards or 2023.40 sq. mts. In plot no. 41, total admeasuring 4840 sq.
yards or 4046 sq. mts. Alongwith Plinth area of RCC 26000 sq. fts. And 6000
sq. fts. of ACC in situated at Survey No. 81, 84 Anrich Industrial Estate, Term Loan Rs. 25.000 Millions SOD (working
capital) Rs. 10.000 Millions ------------------------------ Total Rs. 35.000
Millions
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AS PER WEBSITE DETAILS :
Subject as been floated in view to manufacture drugs in wide scale and
then initiated the acquisition of PCP Pharmaceuticals Pvt. Ltd. Hyderabad and
Apple laboratories limited,
Subject, all from the beginning has emphasized on being "committed to
quality" and has also updated the acquired unit apple laboratories limited
to the existing WHO GMP standards, whereas the company has already got the WHO
GMP certification.
The Directors of P.C.P.Pharmaceuticals pvt. Ltd. and the second generation
entrepreneurs of the company have floated the company with a vision of
providing valuable services to the existing giants in Indian Pharmaceutical
market and also having a focus to develop their brands earlier promoted in the
former company, as well as to have a facility to export their products in the
near future.
The Company will be manufacturing Anti Retroviral and Onco care products in
near future. Presently the company is involved in manufacturing activities of
Liquid Orals and Elixirs, solid dosage forms and neutraceutical supplements
Subject has been incorporated in 2004 as a Private Limited Company and
registered under the Companies Act. Later in 2005 has changed its constitution
as limited company and is engaged in manufacturing Pharmaceutical formulations
and has been identified by several Multinational as one of their associate
facility for making Quality and licensed products.
It has been bestowed with various awards from the State and Central Govt. of
India, and is also certified by the WHO GMP body as a quality oriented
pharmaceutical facility. The Company is also under surveillance audit of ISO
9001 2000 by the assessing corporate.
The Quality management systems include preparation of Documents and
implementation of the same. Make procedures and instructions. Details are
described in the quality system procedure. QSP.
Company Vision/Mission:
Subject has Conquer a significant share in the nutritional market of the country,
to provide relation oriented service to the doctors and patients and to launch
innovative products to serve definite needs of the people of the country. Also
to give quality and service, on the contrary earn respect and money.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 39.47 |
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1 |
Rs. 80.59 |
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Euro |
1 |
Rs. 56.18 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
1 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
-- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
- |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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22 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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