MIRA
INFORM REPORT
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Report Date : |
24.10.2007 |
IDENTIFICATION DETAILS
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Name : |
GRANULES INDIA LIMITED |
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Registered Office : |
8-2-293/A/A/2, Plot # 227, Road No. 2, Banjara Hills, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
18.03.1991 |
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Com. Reg. No.: |
01-12471 |
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CIN No.: [Company
Identification No.] |
L24110AP1991PLC012471 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00432F |
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PAN No.: [Permanent
Account No.] |
AAACG7369K |
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Legal Form : |
Public Limited Liability company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers and marketers of Bulk Drugs, Granulations and Tablets. |
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 3300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable and having resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
8-2-293/A/A/2, Plot # 227, Road No. 2, Banjara Hills, |
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Tel. No.: |
91-40-23747093 / 23748834 / 23740425 / 23744135 / 23742541 / 23553266 / 23550884 |
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Fax No.: |
91-40-23745478 / 23547894 |
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E-Mail : |
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Website : |
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Factory : |
Plot No. 15A/1,
Phase III, I.D.A. Jeedimetla, |
DIRECTORS
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Name : |
Mr. C Nageswara Rao |
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Designation : |
Chairman |
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Name : |
Mr. C |
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Designation : |
Managing Director |
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Name : |
Mr. N R Ganti |
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Designation : |
Director |
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Name : |
Mr. L |
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Designation : |
Director |
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Name : |
Mr. A P Kurian |
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Designation : |
Director |
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Name : |
Mr. Stephen R
Olsen |
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Designation : |
Nominee Director |
KEY EXECUTIVES
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Name : |
Mr. Sachin Guha |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian |
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Individuals / Hindu |
5718691 |
29.40 |
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Foreign |
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Individuals [Non Resident Individuals / foreign] |
61300 |
0.32 |
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Public Shareholding |
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Institutions |
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Mutual Funds/ UTI |
181221 |
0.93 |
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Financial Institutions / Banks |
2500 |
0.01 |
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Insurance Companies |
6356 |
0.03 |
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Foreign Institutional Investors |
1946407 |
10.0 |
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Non-institutions |
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Bodies Corporate |
855458 |
4.40 |
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Foreign Bodies |
6448845 |
33.16 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
3032975 |
15.59 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
669719 |
3.44 |
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Any Other (specify) |
527122 |
2.71 |
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Total |
19450594 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and marketers of Bulk Drugs, Granulations and Tablets. |
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Products : |
Bulk Drugs |
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Exports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
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APIs |
Metric tones |
3713.280 |
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PFIs |
Metric tones) |
6480.000 |
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Tablets ( in 1000 Nos ) |
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1 72800 |
GENERAL INFORMATION
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Customers : |
v
Roussel Corporation, v
v
v
Welding GmbH & Company, v
Flavine |
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No. of Employees : |
478 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kumar and Giri Chartered Accountants |
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Subsidiaries : |
Granules USA, Inc. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs. 200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
12369400 |
Equity Shares |
Rs.10/- each |
Rs. 123.694
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
30.06.2004 [15 Months] |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
123.700 |
123.266 |
83.100 |
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3] Reserves & Surplus |
702.000 |
629.995 |
225.151 |
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NETWORTH
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825.700 |
753.261 |
308.251 |
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LOAN FUNDS |
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1] Secured Loans |
1164.000 |
884.368 |
624.811 |
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2] Unsecured Loans |
107.500 |
55.926 |
77.517 |
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TOTAL BORROWING
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1271.500 |
940.294 |
702.328 |
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DEFERRED TAX LIABILITIES |
0.000 |
38.928 |
25.751 |
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TOTAL
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2097.200 |
1732.483 |
1036.330 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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1187.300 |
533.177 |
544.754 |
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Capital work-in-progress
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236.900 |
365.717 |
54.679 |
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INVESTMENT
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5.400 |
4.415 |
5.219 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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209.000
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201.510
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158.095 |
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Sundry Debtors
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616.500
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457.251
|
307.179 |
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Cash & Bank Balances
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47.200
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222.157
|
34.162 |
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Other Current Assets
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0.000
|
1.862
|
0.493 |
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Loans & Advances
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122.400
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102.938
|
96.098 |
Total Current Assets
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995.100
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985.718
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596.027 |
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Less : CURRENT
LIABILITIES & PROVISIONS
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Current Liabilities
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325.700
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160.248
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159.638 |
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Provisions
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19.000
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17.557
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14.399 |
Total Current Liabilities
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344.700
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177.805
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174.037 |
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Net Current Assets
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650.400
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807.913
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421.990 |
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MISCELLANEOUS EXPENSES
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17.200 |
21.261 |
9.688 |
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TOTAL
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2097.200 |
1732.483 |
1036.330 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
30.06.2004 [15 Months] |
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Sales Turnover |
1815.800 |
1375.900 |
1276.600 |
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Other Income |
5.200 |
8.700 |
17.600 |
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Total Income |
1821.000 |
1384.600 |
1294.200 |
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Profit/(Loss) Before Tax |
113.400 |
82.700 |
85.000 |
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Provision for Taxation |
20.900 |
16.100 |
29.100 |
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Profit/(Loss) After Tax |
92.500 |
66.600 |
55.900 |
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Earnings in Foreign Currency : |
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Total Earnings |
1333.811 |
917.325 |
NA |
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Imports : |
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Total Imports |
NA |
420.178 |
4.934 |
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Expenditures : |
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Raw Materials |
1071.200 |
879.300 |
839.100 |
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Excise Duty |
53.100 |
31.700 |
49.900 |
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Power & Fuel Cost |
57.900 |
38.900 |
45.200 |
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Other Manufacturing Expenses |
57.200 |
48.100 |
43.900 |
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Employee Cost |
76.100 |
59.400 |
67.300 |
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Selling and Administration Expenses |
180.300 |
128.600 |
114.900 |
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Miscellaneous Expenses |
13.500 |
9.500 |
10.300 |
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Interest & Financial Charges |
102.500 |
88.800 |
76.800 |
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Depreciation |
52.100 |
32.200 |
29.300 |
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Stock Adjustments |
43.700 |
[14.600] |
[67.500] |
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Total Expenditure |
1707.600 |
1301.900 |
1209.200 |
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SUMMARISED RESULTS
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PARTICULARS |
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|
30.06.2007 |
|
Type |
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Full
Year |
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Sales Turnover |
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|
1856.900 |
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Other Income |
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|
23.400 |
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Total Income |
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|
1880.300 |
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Total Expenditure |
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|
1542.500 |
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Operating Profit |
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|
337.800 |
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Interest |
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|
120.100 |
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Gross Profit |
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|
217.700 |
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Depreciation |
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|
81.800 |
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Tax |
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|
7.400 |
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Reported PAT |
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|
105.900 |
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Dividend (%) |
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|
0.000 |
KEY RATIOS
|
PARTICULARS |
30.06.2006 [12 Months] |
30.06.2005 [12 Months] |
30.06.2004 [15 Months] |
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Debt-Equity Ratio |
1.40 |
1.56 |
2.01 |
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Long Term Debt-Equity Ratio |
0.73 |
0.76 |
1.14 |
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Current Ratio |
1.22 |
1.25 |
1.14 |
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TURNOVER RATIOS |
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Fixed Assets |
1.71 |
1.99 |
2.15 |
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Inventory |
8.85 |
7.65 |
8.06 |
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Debtors |
3.38 |
3.60 |
4.45 |
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Interest Cover Ratio |
2.11 |
1.93 |
2.11 |
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Operating Profit Margin(%) |
14.76 |
14.80 |
14.97 |
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Profit Before Interest And Tax
Margin(%) |
11.89 |
12.46 |
12.67 |
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Cash Profit Margin(%) |
7.96 |
7.18 |
6.67 |
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Adjusted Net Profit Margin(%) |
5.09 |
4.84 |
4.38 |
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Return On Capital Employed(%) |
11.52 |
12.87 |
16.64 |
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Return On Net Worth(%) |
11.74 |
12.65 |
17.01 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated as a private limited
company in 1991, Granules India (GIL) was converted into a public limited
company in Feb.'93. It commenced its operations in Apr.'91 as a merchant
exporter of bulk drugs like paracetamol, guaifenesin and chloro pheniramine
maleate.
The company exports to the
GIL implemented the
ongoing project taken over from TL to manufacture bulk drugs like folic acid,
salbutamol sulphate, brom pheniramine maleate and direct compression (DC)
blends of paracetamol, through the process of granulation. The unit, an EOU, is
located at
Company has completed
expansion of Guaifenesin capacity from 100 Mts to 240 Mts per annum. Company
had developing new products like Brom Pheniramine Maleate & Chloro
Pheniramine Maleate, & is in process of developing new bulk drug for the
export market. Company is very much hopeful about company's performance due to
expansion of project will be completed in the current year.
The Company set up a 100%
marketing subsidiary in US to enhance its exposure in the large pharmaceutical
market in the world. The Gagillapur plant commences its commercial production
of Line II(installed capacity 3200 MT) which was commenced its July,2003 and
the remaining 4000 MTPA is expected to go on stream in the first half of
2003-04. The total project cost is Rs.300 millions.
Fixed Assets :
- Land
- Buildings
- Plant & Machinery
- Lab equipment
- Material Handling equipment
- Electrical Installations
- Office equipment
- Furniture & Fixtures
- Computers
- Vehiclesw
Subject has presence
in over 27 countries
The company’s facilities
have been inspected and certified by :
v
Australian
TGA (Therapeutic Goods Administration)
v
German
Health Authority
v
Certificate
of Suitability (European Department for the Quality of Medicines,
v
USFDA
(General GMP)
Changes in Share Capital
During the financial year 2005-06, 42,820 equity shares were issued and
allotted to the employees and independent directors consequent to the exercise
of the stock options issued by the Company resulting in the paid-up equity
share capital of the Company increasing from Rs.123.265 Millions to Rs.123.694
Millions. In accordance with the resolution passed by the shareholders at the
14th Annual General Meeting held on 5 December 2005, the Committee of the Board
allotted 13,55,000 warrants at Rs.102.50 per warrant convertible into equity
shares of Rs.10/- each to Mr. C. Krishna Prasad, Managing Director of the
company. On the said warrants, 10% of the value i.e., Rs.13.888 Millions - was
received towards application money. As on 30 June 2006, the entire 13,55,000
warrants were outstanding.
Funding
The Company had started the implementation of the Tablet Project and
completed the API Project during the year under review. The Company funded
these projects partly through GAR issue, which was completed in the previous
year and mobilised loans for these projects during the year under review. The
total amount of loans mobilised during the year under review is Rs.362.600
Millions. The Company continued to service repayments and interest obligations
to banks and financial institutions from the funds generated from
operations.
Directors
Pursuant to Article 51 of the Articles of Association of the company, Shri. A.
P. Kurian, Director, retires by rotation during the forthcoming Annual General
Meeting and, being eligible, offers himself for re-appointment as
Director.
A brief resume of Shri. A. P. Kurian, the nature of his expertise in specific
functional areas and the names of companies in which he holds directorships and
memberships/Chairmanships of Committees of the Board, as stipulated under
Clause 49 of the Listing Agreement with the stock exchanges, have been provided
in the section on Corporate Governance in this Annual Report.
Corporate Governance Report and Management discussion and analysis statement
A report on Corporate Governance is attached to this report as also a
Management Discussion and Analysis statement.
Directors' Responsibility Statement
Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956
('Act') and based on the representations received from the operating
management, the Directors hereby confirm that:
i. the applicable accounting standards issued by the Institute of Chartered Accountants
of India have been followed;
ii. appropriate accounting policies have been applied consistently. Judgement
and estimates that are reasonable and prudent have been made so as to give a
true and fair view of the state of affairs of the Company as at the end of the
financial year and of the profits of the Company for the year.
iii. proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of the Company and for preventing and j detecting
fraud and other irregularities.
iv. the annual accounts have been prepared on a going concern basis.
Subsidiary Company
GRANULES USA INC.
Granules USA Inc., a wholly owned subsidiary company, operates for the
marketing requirements of the Company in
MANAGEMENT DISCUSSION AND ANALYSIS
Industry overview
Over-the-Counter (OTC) drug
An OTC drug is a product marketed for use by the consumer without the
intervention of a healthcare professional to obtain it. This makes it is a
non-prescription drug.
OTC drug marketed under monographs
The OTC monograph represents regulatory standards for the marketing of
non-prescription drugs not covered by new drug applications (NOAs) and
abbreviated new drug applications (ANDAs). These standards provide the
marketing conditions for some OTC drugs including the active ingredients,
labeling, and other general requirements. If the standards of the applicable
monograph are met, pre-clearance by the FDA is not required for marketing of
such OTC products.
OTC drugs marketed after approval of ANDAs (Prescription to OTC switch)
Prescription to OTC switch refers to over-the-counter marketing of a product
that was once a prescription drug for the same indication, strength, dose,
duration of use, dosage form, population, and route of administration. Such OTC
products require ANDA approvals before marketed for tie use of consumers.
OTC drugs marketed after approval of NDAs
All OTC drugs apart from OTC monographs require a pre-clearance from the USFDA
before it is marketed to the consumers. The clearance is given on the basis of
new drug applications filed with the above regulatory authority with relevant
and exhaustive details on the safety and effectiveness of the drug.
The OTC industry scenario
- The top 10 manufacturers account for more than 55% of
total sales in 2005.
- In 2005, Johnson & Johnson, Wyeth, Pfizer and Bayer were the leading
companies.
- With the announced acquisition of Pfizer's OTC unit by Johnson & Johnson,
the top 10 companies will be even larger and more powerful in the years to
come.
- Some of the therapeutic areas where the OTC drugs play a significant role are
allergic rhinitis, analgesics, asthma/respiratory conditions, benign prostatic
hypertrophy, gastroesophageal reflux disease, glaucoma, hypertension, nicotine
addiction and osteoporosis.
- Drug stores are the primary outlets where OTC drugs are sold.
- Alternative outlets like warehouse clubs, dollar stores and online retailers
continue to gain in prominence.
The OTC pharmaceuticals market in the
The
The OTC pharmaceuticals market in the
In the
The OTC pharmaceuticals market in developing countries
Populous Asia Pacific markets such as Indonesia, China and India, are expected
to show rapid growth due to increasing populations, evolution of their middle
class, improving economic conditions, increased health awareness, demand for
smoking cessation aids and stress relief products as well as the need to reduce
the cost of public healthcare provision for ageing populations.
Growth drivers in the OTC industry
Growth in this segment is expected to come from several factors, for
instance:
Ageing populations: Problems associated with ageing, including arthritis and
osteoporosis, are driving the demand for products such as analgesics, digestive
remedies and dietary supplements in the developed economies of North America,
Japan, Western Europe and also in the emerging markets, such as Eastern Europe
and Asian markets including China, Indonesia, India and the Philippines.
Self-medication: Health awareness is expected to underpin the continuing
consumer trend towards self-medication, as preventative medicine is deemed the
more economic and convenient option over the increasingly high costs associated
with visits to healthcare professionals.
Prescription to OTC switches: Prescription-to-OTC switches are expected
to regain momentum both in the
Retail outlets: Through a relaxation of regulations, a greater variety of
retail outlets are being permitted to sell OTC products like warehouse clubs,
dollar stores, online retailers and direct sales through non-pharmacy channels
in order to improve access to the general public.
Smoking restrictions; Restriction on tobacco advertising and smoking in
public places is expected to increase the number of consumers electing to give
up the habit, consequently driving the growth of smoking cessation aids.
Charging lifestyles: Increasingly hectic and stressful modern lifestyles
will provide the backdrop for dynamic sales of stress relief, calming and
sleeping products.
Higher disposable incomes: Increased disposable incomes among middle-aged
consumers are also expected to lead to a greater emphasis on lifestyle OTC
products, resulting in a sales growth in products such as hair loss treatment
and smoking cessation aids, health drinks etc.
Granules
Granules
Demand constraints in the OTC space
While increasing segmentation, such as the development of products targeted at
niche consumer groups - children, men, women, or the elderly - is expected to
add value to the global market, particularly in the most mature markets, the
rise in popularity of competing products such as reimbursable prescription (Rx)
medicines and homeopathic remedies is expected to inhibit OTC growth.
Euromonitor reports that increasingly health-conscious and prosperous consumers
are seeking more efficacious or holistic remedies through prescription drugs or
homeopathic products.
However, if the Government were to take certain actions, such as limiting the
availability of free prescriptions, market growth could alter significantly.
OTC industry: Outlook
The most likely forecast for sales of the non-prescription drugs industry is an
average 2.4% growth per year to reach USD 18.6 billion in 2010. Future
Rx-to-OTC switches, new product introductions, the ageing of the population,
high levels of advertising support and a focus on core brands by large
companies will drive growth. The year 2006 looks set to see the launch of
products with greater potential in the OTC market with the advent of
Sanofi-Aventis' Acomplia for the treatment of obesity and smoking
cessation.
The global pharmaceutical industry and its charging environment
The
In addition to USA being the largest consumer of drugs, it also leads the
global pharmaceutical R&D, accounting for 36% of global research as well as
global drug development, accounting for 45% of major drugs developed between
1975 and 1994.
In recent times, the global pharmaceutical industry has been witnessing a
striking change in its business environment. A host of generic drugs have
entered the market after the expiry of their respective product patents. This
has resulted in increasing competition and declining drug prices in the whole
industry, further aggravated by a governmental pressure on price reduction.
Thus, margins of most pharmaceutical companies have eroded rapidly in the last
few years.
Besieged by the ever-increasing cost pressures, shorter product life cycles and
numerous regulatory challenges in the West, the industry is increasingly
shifting/outsourcing its manufacturing and Research and Development (R&D)
activities to other low cost developing nations especially
Operational review
API Division
The API facilities of the Company are located at Jeedimetla and Bonthapally.
Its single plant at Jeedimetla has a capacity of manufacturing about 1,000 tons
of APIs annually while its two plants located at Bonthapally together have an
annual capacity of manufacturing 12,000 tons of APIs. The plant at Jeedimetla
primarily manufactures APIs like Guaifenesin and Metformin etc., while the
Bonthapally plants manufacture Paracetamol / Acetamenophen.
Performance during the year
During the year ended June 2006, the API division of the Company recorded a
revenue of Rs.52 cr and manufactured over 5,000 tons of API. The percentage
contribution of the division towards the overall revenues of the Company was
30%.
Outlook
Armed with large-scale facilities for APIs, PFIs and Finished Dosages, all
capable of going through any regulatory requirement, Granules is all set to
emerge as a world leader in pharmaceutical outsourcing and strengthen its
presence the value chain across the foreseeable future.
AS PER WEBSITE
Subject is a fully integrated pharmaceutical formulations manufacturer.
Offering one-stop solutions to pharmaceutical companies. From the manufacture
of several strategic APIs to multiple PFIs to finished dosages of tablets and
capsules. Facilitating global pharmaceutical companies to offer affordable
medicines to their consumers
At Granules, it is not just important to be profitable for the moment, but to be on a sustainable basis. This sustainability is no longer an economic requirement, but an environmental one as well.
In view of this, the company has embarked on a number of environment-management initiatives like the following:
The implementation of 'Environmental Best Practices' at the company's Gagillapur plant (recognised by CII).
Delegation of eco-friendlyDelegation of eco-friendly measures to employee levels.
The use of sophisticated equipment to collect the dust generated during process activities and material transfer.
Conversion of the entire plant into a non-smoking area.
Activities
The company's robust environment management comprises the following:
Wastewater analyses on effluent samples.
A frequent test and monitor of the ground water, soil, ambient air, stacks and noise levels.
Over the years, the company expects to strengthen its environment standards: a common effluent treatment plant will be reinforced by a cleaner technology to minimise liquid effluent, gaseous emission and solid waste.
Liquid effluents
They are separated into high TDS-high COD effluents and low TDS-low COD effluents
High TDS-high COD effluents are collected separately at generation plants. Following primary treatment, they are evaporated; the residue is sent to the Hyderabad Waste Management Project for safe disposal.
Low COD effluents are collected in a common sump. Following homogenisation and pH adjustments, they are discarded to the CETP for onward treatment and disposal.
Hazardous solid waste management
Hazardous solids from various production stages and effluent collection tanks are sent to the Hyderabad Waste Management Project for safe disposal.
Gaseous emissions
Gaseous emissions are scrubbed, cleaned and made harmless with suitable chemical reagents before they are released.
Green belt development
The planting of a green belt around the plant has helped
neutralise pollution. They plan to construct a green building comprising
natural light, natural cooling through roof garden on the terrace, use of
environment-friendly fly ash cement and solar energy
Promoter
The Managing Director, Mr. Krishna Prasad, is the chief promoter of Granules, bringing
with him rich experience of over two decades in setting up and the management
of pharmaceutical (bulk drugs) manufacturing units.
In 1984-85, he set up a small-scale unit for manufacturing
of Acetaminophen/ Paracetamol that went on to become one of the largest Indian
manufacturers of Acetaminophen/paracetamol and was an exporter to the
Mr. Prasad had anticipated, way back in late 80's that major
global pharmaceutical companies would outsource their manufacturing activities
to countries like India with inherent cost advantages coupled with regulatory
compliance skills and a vast pool of trained manpower.
Granules
Mr. Prasad, as the CEO and the Marketing chief at Granules,
pioneered and popularized the concept of Pharmaceutical Formulations
Intermediates (PFIs) as a cost efficient and extremely convenient product for
the global formulations manufacturers. These PFIs are pre-processed blends of
single or multiple APIs, ready to be compressed into tablets or filled into
capsules. They represent an intermediate stage between APIs and formulations
and their manufacture is referred to as granulation.
Board of Directors
Dr. C. Nageswara Rao
Chairman, Medical practitioner
Dr. C.
Nageswara Rao, Chairman, is a leading medical practitioner. He is the Chairman of
the AP Medical Council, he has been a member of the All India Medical Council
and was also on the Board of Hindustan Antibiotics Limited.
Mr. C. Krishna Prasad
Managing Director
Granules
Mr. N.R.Ganti
Director, Management Consultant
Mr.
N.R.Ganti, is a management consultant with over 30 years of experience in
banking and management. He is an MBA specialising in strategy and finance. He
is a member of the team responsible for the company's long-term goals and
objectives.
Mr. L.S.Sarma
Director, Financial Expert
Mr.
L.S Sarma is an ex senior banker at IDBI. He has vast experience in financial
matters and has also served on the board of Dena Bank. He is currently on the
boards of other reputed companies.
Mr. A.P Kurian
Director, Investment Banker
Mr. AP
Kurian is an eminent investment banker and is currently the Chairman of the
Association of Mutual Funds of India. He also serves on the boards of a few
well-known companies.
Mr. Stephen R Olsen
Nominee Director, ISP Investco LLC
Mr.
Olsen has been Senior Vice President of Sales (America), Global Marketing and
Research & Development of International Specialty Products Inc. (“ISP”),
which is the indirect parent company of ISP Investco LLC, and certain of its
subsidiaries, including ISP Chemco LLC (“Chemco”), which is the holding company
for ISP’s operating subsidiaries, since January 2006 and has been a director of
Chemco since June 2005. He was previously Senior Vice President North America
Sales and Marketing of ISP and Chemco and some of its subsidiaries from
September 2004 until January 2006.
News
Matchland Pty Limited and G I L signing an Outsourcing
Agreement (05.03.2007)
Monday,
March 05, 2007
Matchland
Pty Limited, (trading as New Products Development) and Granules India Limited
are pleased to announce the signing of an Outsourcing Agreement where New
Products Development agrees to outsource its finished dosage manufacturing
requirement to Granules India for the Australian market.
Initially
five products have been identified for manufacturing and this list is expected
to grow as the relationship progresses. The agreement is in the nature of the
partnership where New Products Development will compensate Granules for all the
costs incurred in connection with the manufacture of the product and provide a
transparent profit margin. This would be New Products Development’s first
Outsourcing Agreement with any Indian Company and complements Granules strategy
of expansion into lesser explored markets like Australia and New Zealand.
Commenting on the deal, Mr.C.Krishna Prasad, Managing Director said, they are
planning to use their TGA approved pilot manufacturing capabilities to
kickstart the manufacturing as soon as possible.
About
New Products Development
Established
in 1988, New Products Development has grown to become a major provider in the
pharmaceutical contract manufacturing industry, and is licensed by the
Therapeutic Goods Administration (TGA) to manufacture non-sterile therapeutic
goods for human use. New Products Development is an independent contract
manufacturer with the capacity and capability to manufacture and pack
unscheduled medicinal products in tablet, capsule and powder dosage form.
About
Granules India Limited,
(BSE:
532482, NSE: GRANULES, Reuters: GRAN.BO)
Granules
India Limited is a fully integrated pharmaceutical formulations manufacturer
with the world’s largest ‘granulation’ capacity. The company manufactures
several strategic Active Pharmaceutical Ingredients (APIs) and multiple
Pharmaceutical Formulation Intermediates (PFIs), which are distributed in 35
countries. It is foraying into manufacturing of tablets with a capacity of 6
billion tablets per annum. This facility will strengthen its presence in the
pharma outsourcing space as it will have capabilities of offering a wide range
of products beginning from APIs to finished dosages (coated/uncoated).
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.39.57 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.56.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--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 |
YES |
|
--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. |
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 |
|