MIRA
INFORM REPORT
|
Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
AXON DRUGS PRIVATE LIMITED |
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Registered Office : |
K-95, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.07.1990 |
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Com. Reg. No.: |
019380 |
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CIN No.: [Company
Identification No.] |
U24117TN1990PTC019380 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA11979C |
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PAN No.: [Permanent
Account No.] |
AAACA3195K |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturer of Paracetamol Tablets, Ibuprofen Tablets, Amoxycillin
Capsules. |
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 13000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track.
Directors are reported as experience and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
K-95, |
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Tel. No.: |
91-44-42171424 / 1425 |
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Fax No.: |
91-44-4350 0673 |
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E-Mail : |
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Website : |
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Representative Office : |
21/26, Truong Son Street, Ward 4, Tan Binh District, Ho Chi Minh City,
SR Vietnam. |
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Tel. No.: |
91-84 8845 6037 |
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Representative Office : |
Rahul Healthcare Pty. Ltd., No. 13A, Street 41, Sangat Tonle Basak, Khan Chomkarmon, Phnom Penh,
Cambodia. |
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Tel. No.: |
91-855 023 224 932 |
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Factory 1 : |
148 / 12B, Chennai - |
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Tel. No.: |
91-44-2681 0930 |
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Fax No.: |
91-44-2681 1286 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. D. Harirajan |
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Designation : |
Managing Director |
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Address : |
20, |
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Date of Birth/Age : |
18.05.1957 |
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Name : |
Mrs. Kala Harirajan |
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Designation : |
Director |
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Address : |
20, |
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Date of Birth/Age : |
25.08.1960 |
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Name : |
Mr. S. Mittalal |
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Designation : |
Director |
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Address : |
5, |
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Date of Birth/Age : |
25.07.1955 |
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Name : |
Dr. A. R. Shantha Mohan |
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Designation : |
Director |
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Address : |
45, |
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Date of Birth/Age : |
29.02.1957 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
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Mr. D. Harirajan |
4000 |
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Mrs. Kala Harirajan |
800 |
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Mr. S. Mittalal |
2750 |
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Dr. A. R. Shantha Mohan |
1900 |
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Mr. D. Surishankar |
200 |
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Mrs. Anuradha Shanthamohan |
700 |
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Mr. T. Rajmohan |
250 |
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Mr. C. D. Damodaram |
100 |
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Mrs. Vatsala Damodaram |
100 |
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Mrs. Durga Vivek |
250 |
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Mr. D. Surishankar (HUF) |
250 |
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Mr. D. HArirajan (HUF) |
350 |
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Mr. S. NAgalingam |
250 |
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Mr. G. Gopinath |
500 |
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Mr. K. Madhuvana Prasad |
150 |
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Mr. S. Vaithyanathan |
100 |
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Equity Share Break Up
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Sr. No |
Category |
Percentage |
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1. |
Directors or Relatives of Directors |
53.60 |
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2. |
Other top fifty (50) Shareholders |
46.40 |
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Total |
100 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Paracetamol Tablets, Ibuprofen Tablets, Amoxycillin
Capsules. |
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GENERAL INFORMATION
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Bankers : |
Indian Overseas Bank Kilpauk Branch, |
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Facilities : |
---- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Sampath And Company Chartered Accountant |
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Address : |
10, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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25000 |
Equity Shares |
Rs.100/- Each |
Rs.2.500
millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000 |
Equity Shares |
Rs.100/-
Each |
Rs.2.500
millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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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2.500 |
2.500 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.821 |
0.741 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
|
3.321 |
3.241 |
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LOAN FUNDS |
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1] Secured Loans |
|
10.245 |
6.435 |
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2] Unsecured Loans |
|
0.299 |
0.822 |
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TOTAL BORROWING |
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10.544 |
7.257 |
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DEFERRED TAX LIABILITIES |
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0.405 |
0.000 |
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TOTAL |
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14.270 |
10.498 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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9.990 |
7.473 |
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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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8.710 |
4.437 |
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Sundry Debtors |
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6.765 |
7.862 |
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Cash & Bank Balances |
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0.063 |
0.028 |
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Other Current Assets |
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2.485 |
3.599 |
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Loans & Advances |
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0.949 |
0.940 |
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Total
Current Assets |
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18.972 |
16.866 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities & Provisions |
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14.692 |
13.841 |
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Total
Current Liabilities |
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14.692 |
13.841 |
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Net Current Assets |
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4.280 |
3.025 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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14.270 |
10.498 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
|
56.077 |
N.A |
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Other Income |
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0.000 |
N.A |
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Total Income |
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56.077 |
N.A |
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Profit/(Loss) Before Tax |
|
0.599 |
N.A |
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Provision for Taxation |
|
0.518 |
N.A |
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Profit/(Loss) After Tax |
|
0.081 |
N.A |
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Total Expenditure |
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55.478 |
N.A. |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.14 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.06 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.06 |
-- |
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Return on Investment (ROI) (PBT/Networth) |
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0.18 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
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7.59 |
6.50 |
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Current Ratio (Current Asset/Current Liability) |
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1.29 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
Form 8
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Name of the company |
AXON DRUGS PRIVATE LIMITED |
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Presented By |
Directors |
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1) Date and description of instrument creating the change |
Agreement of
Hypothecation 18.07.1992 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.0.500 Million |
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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 |
Cash Credit
Against book Debts. Hypothecation of
Book Debts |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Cash Credit
Against book Debts Rate of Interest 21.75 % |
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5) Name and Address and description of the person entitled to the charge. |
M/s Indian
Overseas Bank Kilpauk Branch Chennai – 600 010 |
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6) Date and brief description of instrument modifying the charge |
Letter of Hypothecation
(for Securing machineries / Vehicles / Goods / Book – Debts ) dated 18th
December 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. |
1. with the
sanction of fresh term loan – Machinery of Rs.2.700 millions, the total limit
stands enhanced from Rs. 14.500 millions following are the existing and
enhanced limit
2. The above
enhanced limit of Rs.17.200 millions is secured by way of exclusive charge by
way of hypothecation of stocks, book debts and all other current assets of
the company both present and future and second charge on all fixed assets of
the company both present and future situate at 148 / 12 B, Chennai –
Bangalore highway, Chembarakkam 602103 in Favour of Indian Overseas Bank. 3. All other
terms and conditions remain uncharged. |
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Corporate
identity number (CIN) Foreign company registration number |
U24117TN1990PTC019380 |
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Name of the
Company |
AXON DRUGS PRIVATE LIMITED |
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Address |
242, |
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This form is for |
Modification of
Charge |
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Type of Charge |
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Particulars of
the charge holder |
Indian Overseas Bank Kilpauk Branch, Email ID: klpakbr@chemsco.iobnet.co.in |
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Nature of
Description of the Instrument(s) Creating or modifying the charge |
Letter hypothecation (for securing machineries / Vehicles/ Goods /
Book – Debts ) Dated 09.11.2006 (Form
110E) |
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Amount secured by
the charge |
Rs.16.114
Millions |
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Brief of the
principal terms and conditions |
a. Rate of
Interest For Cash
Credit 11.5 % For Packing
Credit 8.5 % For Term Loan
Machinery 11.5 % For Term
Loan 11.5 % b.Terms of
Repayment Renewable Every
Year c.Margin Book Debts = 50 % Term Loan
Machinery = 25 % Term Loan = 25 % d. Extent and
Operation of the Charge Secured by way of
hypothecation of stocks, book debts and all other current assets of the
company both present and future and first charge on all fixed assets of the
company both present and future and property situated at, item No. 1) Survey
No. 148 / 12AA, - Patta No. 429 Measuring 3.427 Grounds, Chennai Bangalore
Highway, Chembarambakkam – 602103. Item No. 2) Survey No. 148 / 12 B, - Patta
No. 852 measuring 5.286 Grounds, Chennai, |
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Description of
the property charged indicating |
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Short Particular
of the Property Charged |
Secured by way of
hypothecation of stocks, book debts and all other current assets of the
company both present and future and first charge on all fixed assets of the
company both present and future and property situated at, item No. 1) Survey
No. 148 / 12AA, - Patta No. 429 Measuring 3.427 Grounds, Chennai Bangalore
Highway, Chembarambakkam – 602103. Item No. 2) Survey No. 148 / 12 B, - Patta
No. 852 measuring 5.286 Grounds, Chennai, |
|
Particular of the
present modification |
Old limit New
Limit (all in millions ) Cash Credit 2.000 2.000 P.C. 3.000 3.000 DBPF 7.000 7.000 LCF 1.500 1.500 T.L. I
Machinery 2.700 0.800 T.L. II F.A. 0.000 0.700 Total 17.200 16..100 |
Web Details Attached :
Axon Drugs is a thriving pharmaceutical company headquartered at Chennai, the
southern Metropolitan city which has fast developed into a primary business
destination in
Axon started off with supply of medicines to Government Institutions in the
form of tenders. Gradually, with this expertise Axon ventured into higher
avenues.
Axon is a Central Government certified EXPORT HOUSE,
which is a tribute to its export credentials. It has been exporting products to
overseas markets since 1995 and has set an indelible impression upon a sizeable
number of nations.
Axon has its vision set upon penetrating and setting a footprint in countries
spread across all continents. Its primary aim is to be a profitable,
self-sustaining organization regarded for its values and respected for its
integrity.
Infrastructure
Axon
has a full-fledged manufacturing facility located at an industrially vibrant
area on the
The company follows cGMP guidelines and has been awarded the Good
Manufacturing Practices (GMP) certificate as per WHO standards.
The product range includes tablets, capsules (betalactum & non-betalactum)
and dry syrups. The products are neatly shipped in a variety of packages which
include jars, strips, blister packs, Alu-Alu packs, bottles and sachets.
The installed production capacity on a single shift basis, is as below:
Tablets - 60,000,000 per month
Capsules - 15,000,000 per month
Dry Syrups
(Sachets) - 200,000 per month
Dry Syrups
(Bottles) - 100,000 per month
Management
Axon is run by a set of professionals with a
passion to achieve . Ethically manufactured products and ethical practices are
the backbone of the organization. These basic beliefs lead to the establishment
of a hierarchically flat organization with an open culture. Axon’s business
environment is rather amicable and the energy flowing through is electrifying.
Mr. D. Harirajan - Managing Director
Armed
with two decades of experience in the pharmaceutical industry, he single
handedly setup Axon Drugs in 1992. As the Chief Executive of Axon, he holds
responsibility for all operations and steers the company towards its future
goals. Being a relentless administrator, his obsession is towards absolute
perfection.
Dr. A. R. Shantha Mohan – Director
A Consultant Surgeon attached to a leading
private hospital in Chennai, he plays a proactive role in the development of
the company’s products. His professional expertise and experience hold the
organization in good stead especially with regard to real-life performance of
drugs.
Mr. S. Mittalal – Director
A qualified Marketing Professional, he hails
from a leading business family with over 25 years in trading of pharmaceutical
products in the country. He guides the company in all its distribution
operations.
Mr. Vikram .H - Vice President, Marketing
The latest addition to Axon's stable is this
young Marketing Professional. He adds a significant edge to Axon's operations by
enabling the company to bring about a paradigm shift from being a generic drug
manufacturer to a branded formulation company. His desire is to elevate Axon
into the higher league by firmly establishing its brands as those instantly
recognised and embraced by the global medical fraternity.
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.39.87 |
|
|
1 |
Rs.80.11 |
|
Euro |
1 |
Rs.56.19 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--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 |
|