MIRA
INFORM REPORT
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Report Date : |
27.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZANDU CHEMICALS LIMITED |
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Registered Office : |
70, Gokhale Road (South), Dadar, Mumbai - 400 025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.03.1991 |
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Com. Reg. No.: |
11-60748 |
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CIN No.: [Company
Identification No.] |
U24100MH1991PLC060748 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMZ01048F |
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PAN No.: [Permanent
Account No.] |
AAACZ0293 |
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Legal Form : |
A closely held Public Limited Liability. |
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Line of Business : |
Manufacturer and Exporter of fine
chemical intermediates for pharmaceutical end use. |
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 |
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Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 85000 |
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Status : |
Satisfactory - Improving |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company and has been successful in
wiping – off all its previous losses. Subjects networth has turned positive
and is no more a sick unit. Trade relations are fair. The company expects a
lower turnover during the year 2007-08 as claimed by the management. Payments
are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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LOCATIONS
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Registered Office : |
70, Gokhale Road
(South), Dadar, Mumbai - 400 025, Maharashtra, India. |
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Tel. No.: |
91-22-24307021 /
24305417 / 24307983 / 24313446 / 24371893 / 24328268 / 39800455 / 39800456 /
39800 / 463 / 464 / 444 / 39800 423 / 465 / 2436 4420 / |
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Mobile No.: |
91-9820807082 |
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Fax No.: |
91-22-24375491 /
24328268 / 24366735 |
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E-Mail : |
zanduchem@vsnl.net
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Website : |
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Area : |
Owned (3 Floor Building) |
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Factory : |
Plot No. 3102 / /B, GIDC Estate, Ankleshwar – 393 002, Gujarat, India |
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Tel. No.: |
91-2646-220097 / 220039 |
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Fax No.: |
91-2646- 250329 |
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Area : |
35000 Sq. mtrs |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. D. M. Parikh |
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Designation : |
Directors |
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Name : |
Mr. Jaisinh V. Kanji |
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Designation : |
Director |
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Name : |
Mr. Krishnakant M. Parikh |
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Designation : |
Director |
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Name : |
Mr. Girish G. Parikh |
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Designation : |
Director |
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Name : |
Dr. Ajay K. Parikh |
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Designation : |
Director |
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Name : |
Mr. Girish Parikh |
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Designation : |
Director |
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Name : |
Mr. K Natrajan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S. Lakshminarayanan |
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Designation : |
Company Secretary |
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Address : |
174, Jawahar Nagar, A Wing, Above Punjab National Bank, Road No. 2, Goregaon (West), Mumbai - 400 062, Maharashtra |
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Tel. No. : |
91-22-28724780 |
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Pager No. : : |
9602-146382 |
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Mobile No. : |
91-9869006642 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of fine
chemical intermediates for pharmaceutical end use. |
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Products : |
· Piperazines · Acetophenones · Phenothiazines · Nitriles · Pyridines · Others |
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Exports : |
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Countries : |
Europe, Japan, USA |
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Terms : |
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Selling : |
DA (30-60 Days) |
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Purchasing : |
L/C, Cash, Credit (90 -120 Days) |
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GENERAL
INFORMATION
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Customers : |
Manufacturers and End Users Ř Abbott Laboratories Ř Janssen Pharmaceuticals Ř Monsanto Ř Mitsubishi Chemical Corporation Ř Rhone Poulenc Ř Smith Kline Beecham Ř Scherring Plough |
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No. of Employees : |
200 |
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Bankers : |
Ř Bank of Baroda Prabhadevi Branch, Mumbai - 400 028, Maharashtra Ř Corporation Bank, Fort Branch, Maharashtra, India Ř Gujarat Industrial Investment Limited Chunnibhai Chambers, Ashram Road, Ahmedabad - 380 009, Gujarat |
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Facilities: |
More than Rs. 550.000 millions (from Corporation Bank) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V. Parekh & Associates Chartered Accountants |
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Address : |
37, Hamam Street, 2nd Floor, Fort, Mumbai - 400 001, Maharashtra, India |
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Tel. No.: |
91-22-22650264/22643555/22666219 |
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Fax No.: |
91-22-22654370 |
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E-Mail : |
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Associates/Subsidiaries : |
Ř Zandu Pharmaceuticals Limited A leader in Natural & Herbal Healthcare products. The company was established in the year 1910. It employs around 2500 persons. Ř Zandu Foundation for Health Care Activity : Research in natural products. Ř Leopard Spray Dried Herbal Extracts Ř Nova Ad Palace Media Planning Ř Venus Drugs & Pharmaceuticals Manufacturing Herbal Cosmetics & Toiletries. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7500000 |
Equity Shares |
Rs. 10/- each |
Rs. 75.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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292130 |
Equity Shares |
Rs. 10/- each |
Rs. 2.921 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2.900 |
2.900 |
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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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18.300 |
[3.500] |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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21.200 |
[0.600] |
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LOAN FUNDS |
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1] Secured Loans |
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56.800 |
51.900 |
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2] Unsecured Loans |
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65.700 |
39.600 |
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TOTAL BORROWING |
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122.500 |
91.500 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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143.700 |
90.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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34.800 |
30.500 |
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Capital work-in-progress |
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45.300 |
0.000 |
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INVESTMENT |
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0.400 |
0.400 |
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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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103.900 |
89.400 |
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Sundry Debtors |
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9.000 |
56.500 |
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Cash & Bank Balances |
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7.200 |
3.800 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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25.500 |
32.200 |
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Total
Current Assets |
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145.600 |
181.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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80.600 |
118.500 |
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Provisions |
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1.800 |
3.400 |
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Total
Current Liabilities |
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82.400 |
121.900 |
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Net Current Assets |
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63.200 |
60.000 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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143.700 |
90.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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451.700 |
255.000 |
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Other Income |
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1.200 |
3.500 |
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Total Income |
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452.900 |
258.500 |
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Profit/(Loss) Before Tax |
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31.200 |
19.000 |
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Provision for Taxation |
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9.400 |
9.000 |
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Profit/(Loss) After Tax |
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21.800 |
10.000 |
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Expenditures : |
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Raw Material Consumed |
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322.900 |
174.100 |
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Excise Duty |
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7.500 |
3.400 |
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Salaries, Wages, Bonus, etc. |
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30.400 |
18.900 |
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Interest |
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6.300 |
9.100 |
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Miscellaneous Expenses |
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4.100 |
2.500 |
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Power & Fuel |
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11.400 |
10.100 |
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Depreciation & Amortization |
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6.200 |
6.600 |
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Other Expenditure |
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29.300 |
15.900 |
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Total Expenditure |
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418.100 |
240.600 |
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KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
10.39 |
0.00 |
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Long
Term Debt-Equity Ratio |
2.25 |
0.00 |
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Current
Ratio |
0.88 |
0.91 |
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TURNOVER
RATIOS |
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Fixed
Assets |
4.13 |
2.44 |
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Inventory |
4.67 |
2.85 |
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Debtors |
13.79 |
4.51 |
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Interest
Cover Ratio |
5.95 |
3.09 |
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Operating
Profit Margin(%) |
9.67 |
13.61 |
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Profit
Before Interest And Tax Margin(%) |
8.30 |
11.02 |
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Cash
Profit Margin(%) |
6.20 |
6.51 |
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Adjusted
Net Profit Margin(%) |
4.83 |
3.92 |
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Return
On Capital Employed(%) |
31.17 |
29.00 |
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Return
On Net Worth(%) |
163.91 |
185.19 |
LOCAL AGENCY
FURTHER INFORMATION
ACTIVITIES:
The
performance of the Company during the year under report has registered an
improvement over the previous year. Sales at Rs. 451.667 millions during the
year 31st March, 2007 registered an increase of 77% as compared to the previous
year.
Profit before Tax stood at As. 31.198 millions an increase of 64% over the
previous year. This increase was mainly on account of better capacity
utilization and shift towards higher value added products taken up during the
year.
All the projects under development since last few years have moved further
towards maturity.
In addition to the existing business, the contract research projects for gm to
kg scale manufacturing for customers based in Canada and Japan have also been
undertaken and these activities are expected to further increase during the
year.
The Company also received acknowledgement of its first US-DMF filed for an
intermediate of anti-cancer NCE compound. Another US-DMF for an intermediate of
controlled substance API is expected to be filed very soon.
BIFR ORDER:
Based on the financial results of 2004-05, the Company was required to
make a reference to the BIFR. The Company approached the BIFR in November
2005.
Thereafter, the financials of the Company improved considerably. Consequently,
the Company made an application for withdrawal from the BIFR, which was heard
in October 2006 with positive results. Since the net worth of the Company had
become positive, as per SICA, the reference made to the BIFR was not
maintainable and accordingly the order was passed by the BIFR.
CHANGE IN SHAREHOLDING OF THE
COMPANY:
The Company has become the subsidiary of The Zandu Pharmaceutical Works
Ltd. (ZPWL) with effect from 1st November 2006, with the further acquisition of
44.20% of the equity share capital of the Company by ZPWL. As a result, the
total holding of ZPWL in the Company, after this acquisition, has become 93.84%
of the paid up share capital of the Company.
EXPANSION AND NEW FACILITY:
The Quality Management System requirements of end users from regulated
markets are getting more and more stringent. This is raising the bar on good
manufacturing practices being followed, both at the documentation level and at
facility level. For the product line chosen by the Company, it is absolutely
essential to comply with such updated requirements to continue and sustain the
ongoing business.
To tackle this aspect, the Company has embarked upon expansion in the new
facility which would be cGMP compliance and which would also be found
acceptable to manufacture API level compounds.
To support the expanded manufacturing capacity, the Quality Control Laboratory
is also being expanded with additional instrumentation facility.
EXPORTS:
The Company has exported goods worth Rs.365.587 millions during the
financial period ended on 31st March, 2007. This has been made possible through
continued focus on quality up-gradation. The Company is examining various
options to enhance the shareholders value, which allows attractive returns by
efficient utilization of resources.
It is in trade
terms with:
Ř Alkalies Metals
Limited
Ř Ankleshwar Ammonia
Supply Company
Ř Arora Matthery
Limited
Ř Galaxy Laboratores
Private Limited
Ř Luna Chemicals
Limited
Ř Navin Fluorine
Industries
Ř Nivedita Chemicals
Private Limited
Ř Prabhat Chemicals
Company
Ř Prabhat Chemi Dyes
Industries
Ř Sabari Chemicals
Private Limited
Ř Speciality
Molecules Private Limited
Ř STS Chemicals
Limited
Ř Trnaspek Indusries
Limited
Ř Vasudha Chemicals
Private Limited
Ř Nagase and Company
, Japan
Ř Jonshan and
Jonshan , Europe
Ř Sigfrde Limited,
Taiwan
The company’s
fixed assets of important value include
·
Leasehold Land,
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Air conditioner,
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Building,
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Computers,
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Laboratory Equipment,
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Plant and Machinery,
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Research Equipments,
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Utilities,
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Electrical Installation,
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Furniture and Fixture And
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Office Equipment,
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Vehicles, Etc.
WEBSITE DETAILS:
The ZANDU group - established in
India since 1910 - is a pioneer in the field of Ayurvedic medicines, herbal and
natural product formulations.
Subject is a part of ZANDU group, established in 1991.
This company specialises in the manufacture of advanced fine chemical
intermediates mainly for pharmaceutical end use.
Developing and offering penultimate stage
intermediates or intermediates critical for the DMF - on commercial scale -
remains the main strength of this company, backed by a strong R and D team and
Analytical support with Quality Systems as per the latest guidelines.
Custom synthesis, Long term contractual manufacturing
under secrecy, Exclusive manufacturing under CDA, Contract Research work on
milligram to kilo scale are the activities undertaken by them regularly for
their customers spread worldwide. The company head quarters are in Mumbai where
the R and D Center is also located. The manufacturing location is in the
Industrial heart of Ankleshwar city in Gujarat, 300 k.m. North of Mumbai, well
connected by Road, Rail and Air enabling swift cargo movement to the nearest
major sea/airport being Mumbai.
PRODUCT LIST:-
C = Commercial stage, P
= Pilot stage, L = Lab stage
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N-Phenylpiperazine |
92-54-6 |
C |
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N-Benzylpiperazine |
2759-28-6 |
C |
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N-(3-Chlorophenyl)-piperazine HCl |
65369-76-8 |
C |
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N-Benzhydrylpiperazine |
841-77-0 |
C |
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N-(1,4-Benzodioxan-2-carbonyl)- |
70918-00-2 |
C |
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N-(2-Furoyl)-piperazine |
40172-95-0 |
C |
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N-(Tetrahydro-2-furoyl)-piperazine |
63074-07-7 |
P |
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N-(4-Methoxyphenyl)-piperazine |
38212-30-5 |
C |
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N-(4-Methoxyphenyl)-N'-(4-nitrophenyl)-piperazine |
74852-61-2 |
C |
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N-(4-Methoxyphenyl)-N'-(4-aminophenyl)-piperazine |
74852-62-3 |
C |
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N-[3-(Trifluoromethyl)-phenyl]- |
16015-69-3 |
P |
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N-Acetylpiperazine |
13889-98-0 |
P |
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N-Formylpiperazine |
7755-92-2 |
P |
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N-(2,3-Dichlorophenyl)-piperazine |
119532-26-2 |
L |
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1-Methyl-3-phenylpiperazine |
5271-27-2 |
L |
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N-(3-Chlorophenyl)-N'-(3-chloropropyl)-piperazine
HCl |
52605-52-4 |
L |
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N-(2-Methoxyphenyl)-piperazine |
35386-24-4 |
L |
|
N-Isopropyl-4-(4-hydroxyphenyl)- |
67914-97-0 |
P |
C = Commercial stage, P
= Pilot stage, L = Lab stage
|
3'-Aminoacetophenone |
99-03-6 |
C |
|
3'-Hydroxyacetophenone |
121-71-1 |
C |
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3'-Chloroacetophenone |
99-02-5 |
P |
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3'-Acetoxyacetophenone |
52600-91-6 |
C |
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3'-Nitroacetophenone |
121-89-1 |
C |
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3'-Acetamidoacetophenone |
7463-31-2 |
C |
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4'-Hydroxy-3'-nitroacetophenone |
6322-56-1 |
C |
C = Commercial stage, P =
Pilot stage, L = Lab stage
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2-Chlorophenothiazine |
92-39-7 |
C |
|
2-(Trifluoromethyl)-phenothiazine |
92-30-8 |
C |
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2-Methoxyphenothiazine |
1771-18-2 |
C |
|
2-Acetylphenothiazine |
6631-94-3 |
C |
|
2-Cyanophenothiazine |
38642-74-9 |
P |
|
2-Propionylphenothiazine |
92-33-1 |
L |
C = Commercial stage, P =
Pilot stage, L = Lab stage
|
Chloroacetonitrile |
107-14-2 |
C |
|
Dichloroacetonitrile |
3018-12-0 |
C |
|
Trichloroacetonitrile |
545-06-2 |
C |
|
4-Aminobenzonitrile |
873-74-5 |
L |
C = Commercial stage, P =
Pilot stage, L = Lab stage
|
2-Amino-5-nitropyridine |
4214-76-0 |
P |
|
2-Chloro-5-nitropyridine |
4548-45-2 |
P |
|
2,5-Dichloropyridine |
16110-09-1 |
P |
|
3-Hydroxypyridine |
109-00-2 |
P |
C = Commercial stage, P =
Pilot stage, L = Lab stage
|
Bis-(2-Chloroethyl)-amine HCl |
821-48-7 |
C |
|
-(2-pyridyl)-benzyl cyanide |
5005-36-7 |
C |
|
-(2-pyridyl)-phenylacetamide |
7251-52-7 |
C |
|
-Phenyl-a-(2-piperidyl)-acetamide |
19395-39-2 |
C |
|
5-Chloro-4-amino-2,1,3-(benzothiadiazole) |
30536-19-7 |
C |
|
N-Hydroxyphthalimide |
524-38-9 |
P |
|
4-Amino-2-chloro-6,7-dimethoxyquinazoline |
23680-84-4 |
C |
|
N-Benzyl-4-piperidone |
3612-20-2 |
P |
|
3-Chloropropylamine HCl |
6276-54-6 |
P |
|
Benzhydrol |
91-01-0 |
C |
|
2-Bromo-4'-benzyloxy-3'-nitroacetophenone |
43229-01-2 |
C |
|
3,5-Diiodosalicylic acid |
133-91-5 |
L |
|
4-Nitro-3-(trifluoromethyl)-aniline |
393-11-3 |
C |
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2-Methyl-4,6-bis-(trichloromethyl)-S-triazine |
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CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.97 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.62.60 |
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 |
YES |
|
--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 |
|