MIRA
INFORM REPORT
|
Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
DINESH REMEDIES LIMITED |
|
|
|
|
Registered Office : |
Shri Dinesh Mills Premises, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
09.02.2005 |
|
|
|
|
Com. Reg. No.: |
045447 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U24230GJ2005PLC045447 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BRDD01134A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. Company’s shares are listed on
Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers of Hard Gelatin Capsules shells. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 600000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and established company having moderate track records.
Company’s profitability is under severe pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Shri Dinesh Mills Premises, |
|
E-Mail : |
|
|
Tel. No.: |
91 – 265 – 2330060
To 2330065 |
|
Fax No.: |
91 – 265 – 2336195 |
DIRECTORS
|
Name : |
Mr. Upendrabhai M Patel |
|
Designation : |
Chairman And Managing Director |
|
Date of Birth/Age : |
76 years |
|
Qualification : |
B.Sc. (Hons.), Mumbai;
MBA ( |
|
Experience : |
52 years |
|
|
|
|
Name : |
Mr. Bharatbhai U Patel |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
50 years |
|
Qualification : |
B. Text., MBA ( |
|
Experience : |
30 years |
|
Date of Appointment : |
12.05.1973 |
|
|
|
|
Name : |
Mr. R C Patel |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Manish C. Patel |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Hasmukhbhai Patel |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Sanjeev Shah |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Chirag Shukla |
|
Designation : |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Hard Gelatin Capsules shells. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS
|
Products |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Empty Hard Gelatin Capsule |
|
Nos. |
1750.000
Millions |
140.978 Millions |
Note: Company has filed memorandum of manufacture
for 1750.000 Millions Nos. of capsules with SIA, Ministry of Commerce and
Industry, Government of India
GENERAL INFORMATION
|
Bankers : |
Ř
Bank of Ř
Central Bank of Ř
Indian Overseas Bank |
||||||
|
|
|
||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Dalal and Shah Chartered Accountants |
|
Address : |
Mumbai, |
|
Tel. No.: |
91-79-26576161 |
|
Fax No.: |
91-79-26576262 |
|
|
|
|
Holding Company: |
Shri. Dinesh Mills Limited |
|
|
|
|
Associates/Subsidiaries : |
Ř Dinesh Platechem Limited Address: Line of Business : Electroplating Chemicals Ř Dinesh Petrochemicals Limited Ř Dinesh Machines Limited Ř Dinesh Draka Optical Fibre Limited Ř McGean Rohco Dinesh Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 150.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
150.000 |
91.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
150.000 |
91.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
55.500 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
55.500 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
205.500 |
91.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
162.427 |
6.094 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
12.797 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
8.546 |
0.000 |
|
|
Sundry Debtors |
|
0.918 |
0.000 |
|
|
Cash & Bank Balances |
|
17.862 |
36.078 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
14.176 |
1.586 |
|
Total
Current Assets |
|
41.501 |
37.665 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
11.097 |
2.067 |
|
|
Provisions |
|
0.163 |
0.316 |
|
Total
Current Liabilities |
|
11.259 |
2.383 |
|
|
Net Current Assets |
|
30.241 |
35.282 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
12.832 |
2.299 |
|
|
|
|
|
|
|
|
TOTAL |
|
205.500 |
91.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
1.258 |
1.179 |
|
|
Other Income |
|
1.169 |
0.000 |
|
|
Increase / (Decrease) in stocks |
|
5.441 |
0.000 |
|
|
Total Income |
|
7.869 |
1.179 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
(10.638) |
(1.668) |
|
|
Provision for Taxation |
|
0..085 |
0.440 |
|
|
Profit/(Loss) After Tax |
|
(10.723) |
(2.108) |
|
|
|
|
|
|
|
|
Import Value |
|
52.155 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Materials |
|
3.339 |
0.000 |
|
|
Manufacturing Expenses |
|
5.197 |
0.041 |
|
|
Employees’ Emoluments |
|
5.471 |
1.173 |
|
|
Interest |
|
0.652 |
0.000 |
|
|
Selling and other expenses |
|
4.218 |
4.763 |
|
|
Depreciation |
|
2.809 |
0.014 |
|
|
Pre-operative expenses |
|
3.179 |
3.143 |
|
Total Expenditure |
|
24.865 |
9.134 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
(136.27) |
(178.80) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
(845.63) |
(141.48) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(5.22) |
(3.81) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.07) |
(0.02) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.45 |
0.03 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
3.69 |
15.81 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Buildings
Tubewell
Plant and
Machinery
Electrical
Installations
Furniture
Dead Stock
Vehicles
Present Status of the Company
During the year under review, the Company has
started manufacturing of Hard Gelatin capsule shells I P w.e.f. 21.11.2006
after obtaining all statutory permissions, Registrations and licenses with
installation of two capsule manufacturing machines at the total project cost of
Rs. 257.500 millions. As the Hard Gelatin capsule shells, I P being
manufactured are to be approved by customers during the year 2006-07 and
therefore, the company could sell Hard Gelatin capsule shells, I P only
amounting to Rs. 1.500 millions.
The Company has recently imported further two
capsule manufacturing machines which are under installation.
Barring unforeseen circumstances, members of
the Board of Directors of the company are hopeful to stabilize the quality
production of hard Gelatin capsule shells I P during the year 2007-08 with four
capsule manufacturing machines.
Future Outlook
The Pharma Sector is growing and they have
planned to cater initially Domestic MNC within a year. They are also planning
to export the Capsules after getting USFDA approval, WHOGMP and DMF
Registration so as to get better rates and price realization.
Contingent Liability not provided for: (As on 31.03.2006)
Guarantees given by the company’s Bankers –
Rs. 1.517 Millions
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.44 |
|
|
1 |
Rs. 82.01 |
|
Euro |
1 |
Rs. 56.20 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
|
28 |
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 |
|