MIRA
INFORM REPORT
|
Report Date : |
18.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
PANCHSHEEL ORGANICS LIMITED |
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Registered Office : |
B-6 & B-7, Sector - C, Industrial Area, Sanwer Road, Indore - 452
006, Madhya Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.08.1989 |
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Com. Reg. No.: |
10-005390 |
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CIN No.: [Company
Identification No.] |
L24232MP1989PLC005390 |
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Legal Form : |
A public limited liability company.
The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer of Bulk Drugs such as Promethazine, Albendazole and
Impiramine. |
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 390000 |
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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. Trade relations are fair. Business is active. Payments
are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office /Factory: |
B-6 & B-7, Sector - C, Industrial Area, Sanwer Road, Indore - 452
006, Madhya Pradesh, India |
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Tel. No.: |
91-731-2421709 / 22432734 |
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Fax No.: |
91-731-2721709 |
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E-Mail : |
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Website : |
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Corporate Office: |
1, Kapadia
Chamber, 1st Cinema Road, Mumbai – 400 020, Maharashtra, India |
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Branch Office
: |
1, Master Chambers, Ground Floor, 1st Cinema Road, Behind
Metro, Mumbai 400 020, Maharashtra, India |
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Tel. No.: |
91-22-22016590/0329/22084282/22055971 |
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Fax No.: |
91-22-22063929 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Mahendra Turakhia |
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Designation : |
Chairman and Managing Director |
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Address : |
166, Ranipura, Indore, Madhya Pradesh |
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Name : |
Mr. Kishore Turakhia |
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Designation : |
Promoter and Non Executive Director |
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Address : |
166, Ranipura, Indore, Madhya Pradesh |
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Name : |
Mr. Rajesh Turakhia |
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Designation : |
Promoter and Non Executive Director |
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Address : |
166, Ranipura, Indore, Madhya Pradesh |
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Name : |
Mr. Chandrakant A. Shah |
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Designation : |
Non-Executive and Independent Director |
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Name : |
Mr. Dilip J. Sangharjka |
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Designation : |
Non-Executive and Independent Director |
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Name : |
Mr. Kiritkumar M. Doshi |
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Designation : |
Non-Executive and Independent Director |
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Name : |
Mr. Ramesh O Shah |
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Designation : |
Non-Executive and Independent Director |
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Name : |
Mr. Radheshyam R Tawani |
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Designation : |
Non-Executive and Independent Director |
KEY EXECUTIVES
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Name : |
M/S A K Jain and Company |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as 31.03.2007):- |
No. of Shares |
Percentage of
Holding |
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Indian |
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Individual’s / Hindu Undivided Family |
981260 |
19.57% |
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Bodies corporate |
598800 |
11.94% |
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Non Institutions |
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Bodies Corporate |
919928 |
18.34% |
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Individual Shareholder holding nominal share capital upto Rs. 0.100
million |
1224282 |
24.41% |
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Individual Shareholder holding nominal share capital in excess of Rs.
0.100 million |
1011130 |
20.16% |
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NRI (Repat and Noon Repat) |
280000 |
5.58% |
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Total
|
5015400 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Bulk Drugs such as Promethazine, Albendazole and
Impiramine. |
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Products : |
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Exports to : |
Far East, South East Asia, Japan and Latin America |
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Imports from : |
Germany and other European Countries |
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Terms : |
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Purchasing : |
L/C terms |
PRODUCTION STATUS (as on 31.03.2007):-
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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Bulk Drugs |
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KG |
36900 |
84784 |
GENERAL
INFORMATION
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No. of Employees : |
60 |
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Financial
Institutions: |
v M. P. Financial
Corporation v
Bajaj Auto Finance Limited |
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Bankers : |
State Bank of India, SME Branch, Pologround, Indore, Madhya Pradesh,
India |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
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Name 1: |
Jodh Joshi & Company Chartered Accountants |
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Address 1 : |
48, Sunder Mahal, 3rd Floor, 141, Marine Drive, Mumbai -
400 020 |
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Name 2 : |
P B Mehta and Associates Chartered Accountants |
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Proprietor: |
Mr. Parag B Mehta |
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Qualification: |
B.Com, F.C.A |
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Address: |
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Baroda Office: |
214, Pujer Complex, Near Ganga Jamuna Hospital, Subhanpur, Baroda –
390 023, Gujarat, India |
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Mumbai Office: |
12, Sushma Building, Linking Road Extension, Santacruz (West), Mumbai
– 400 054, Maharashtra, India |
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Tel No.: |
91-22-26614820 |
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Associates/Subsidiaries : |
v Ramkrishna
Pharma Limited v Buniyad
Chemicals Limited v
Master Securities Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5015400 |
Equity Shares |
Rs. 10/- each |
Rs.50.154
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.154 |
50.154 |
50.154 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
46.802 |
40.631 |
34.320 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
96.956 |
90.785 |
84.474 |
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LOAN FUNDS |
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1] Secured Loans |
28.241 |
19.068 |
17.124 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
28.241 |
19.068 |
17.124 |
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DEFERRED TAX LIABILITIES |
11.153 |
8.711 |
9.389 |
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TOTAL |
136.350 |
118.564 |
110.987 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
62.863 |
44.249 |
40.203 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.006 |
0.006 |
1.057 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
52.292
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Sundry Debtors |
0.000
|
0.000 |
44.732
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Cash & Bank Balances |
0.000
|
0.000 |
1.240
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Other Current Assets |
158.162
|
132.194 |
3.187
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Loans & Advances |
0.000
|
0.000 |
9.992
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Total
Current Assets |
158.162
|
132.194 |
111.443 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
84.681
|
57.885 |
39.862
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Provisions |
0.000
|
0.000 |
1.975
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Total
Current Liabilities |
84.681
|
57.885 |
41.837 |
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Net Current Assets |
73.481
|
74.309 |
69.606 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.121 |
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TOTAL |
136.350 |
118.564 |
110.987 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
192.983 |
153.215 |
184.123 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
192.983 |
153.215 |
184.123 |
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Profit/(Loss) Before Tax |
10.582 |
7.110 |
7.042 |
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Provision for Taxation |
3.954 |
1.218 |
1.836 |
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Profit/(Loss) After Tax |
6.628 |
5.892 |
5.206 |
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Export Value |
6.842 |
NA |
10.078 |
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Import Value |
93.835 |
80.306 |
87.083 |
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Expenditures : |
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Administrative Expenses |
14.932 |
13.587 |
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Increase/(Decrease) in Finished Goods |
[4.368] |
0.864 |
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Operating Expenditure |
167.340 |
126.931 |
177.081 |
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Finance Charges |
2.431 |
2.683 |
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Depreciation & Amortization |
2.064 |
1.917 |
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Other Expenditure |
0.000 |
0.120 |
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Total Expenditure |
182.399 |
146.102 |
177.081 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
50.800 |
50.700 |
42.400 |
|
Other Income |
0.100 |
0.700 |
0.200 |
|
Total Income |
50.900 |
51.400 |
42.600 |
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Total Expenditure |
46.200 |
45.000 |
37.000 |
|
Operating Profit |
4.700 |
6.000 |
5.600 |
|
Interest |
0.900 |
0.800 |
1.100 |
|
Gross Profit |
3.800 |
5.200 |
4.500 |
|
Depreciation |
0.800 |
0.500 |
0.600 |
|
Tax |
0.000 |
0.500 |
0.000 |
|
Reported PAT |
3.000 |
4.200 |
3.900 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.25 |
0.21 |
0.18 |
|
Long Term Debt-Equity Ratio |
0.10 |
0.07 |
0.03 |
|
Current Ratio |
1.51 |
1.70 |
1.69 |
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TURNOVER RATIOS |
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Fixed Assets |
2.66 |
2.52 |
3.32 |
|
Inventory |
2.90 |
2.69 |
3.54 |
|
Debtors |
3.13 |
3.00 |
4.52 |
|
Interest Cover Ratio |
5.42 |
3.63 |
5.44 |
|
Operating Profit Margin(%) |
7.82 |
7.64 |
5.81 |
|
Profit Before Interest And Tax
Margin(%) |
6.74 |
6.40 |
4.76 |
|
Cash Profit Margin(%) |
4.51 |
5.09 |
3.89 |
|
Adjusted Net Profit Margin(%) |
3.42 |
3.85 |
2.85 |
|
Return On Capital Employed(%) |
11.06 |
9.27 |
9.00 |
|
Return On Net Worth(%) |
7.03 |
6.73 |
6.35 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated
as a private limited company in 1989 Panchsheel Organics (POL) was later
converted into a public limited company in 1992. The Indore-based company is
promoted by Mahendra Turakhia and Kishore Turakhia.
The company is involved in manufacturing bulk Drugs and drug
intermediates. It came out with a public issue of 1907300 equity shares of Rs.
10 each for cash at par aggregating to Rs. 19.100 Millions in February 1996, to
expand the manufacturing capacities of bulk drugs. The company is expanding into
the manufacture of albendazole, nalidixic acid, carbamezepine, denatonium
benzoate, chloropromazine HCL and Tri Flu O Perazine HCL.
Performance
During the year under review the Company achieved a turnover and
operating income of Rs. 192.981 millions Compared to Rs. 153.216 millions in
the previous fiscal year 2005-2006, registering an increase of 25.95%. Gross
Profit before interest, depreciation and taxes in 2006-2007 was substantially
higher at Rs. 15.079 millions compared to Rs.11.712 millions in the previous
fiscal.
After providing for interest of Rs.2.432 millions (Rs.2.684 millions previous
fiscal) and depreciation of Rs. 2.064 millions (Rs. 1.918 millions previous
fiscal), the profit before tax of the Company was Rs. 10.583 millions as against
the previous year's profit before tax of Rs.7.110 millions. Net profit after
tax stood at Rs.6.172 millions, as against Rs.5.892 millions in the previous
fiscal, registering an increase of 4.75%.
During the year under review, the Company Scaled new heights in revenue and
profitability.
Operations
and Future Prospects:
The turnover of the company for the year under review showed
a higher growth of 25.95% over the corresponding previous year. The overall
business prospects of the Company are encouraging despite reduction in parity
at certain levels of operations.
They have introduced formulations i.e. Tablets, Capsules, Syrups, Ointment in
the local and export market. They expect a big boom in sales of formulations in
the future
Other Information:
Contingent Liabilities not provided for:-
Bank Guarantee to
custom authorities Rs. 0.355 million. For the same above the Company has
deposited F.D.R. of full amount.
The Company has
received advance licenses for duty free imports against exports made or to be
made, from Joint Controller of Exports and Imports. The Company has treated
these as stock, as the imports there against will be made in future. However,
no authoritative Guidance Note from the Institute of Chartered Accountants of
India is available on this item except the opinion of the Expert Advisory
Committee.
FIXED ASSETES:
· Land
· Factory Building
· Plant and machinery
· Laboratory Testing Equipments
· Electric Installation
· Furniture and fixtures
· Office Equipments
· Vehicles
· Computer
· Pollution control equipments
WEBSITE DETAILS:
Corporate Profile
Subject is a part of the Pharmaceutical Division of the
Turakhia Brothers Group. Turakhia
Brothers was founded in 1975 in the city of Mumbai, India. The Turakhia Group,
who are the promoters, are engaged in the import-export trade of Pharmaceutical
raw materials since the past 25 years.
Technology
Skilled people, modern equipment and broad experience
contribute to the strength of the company. Skilled production teams assure
flexibility, efficiency and consistent standard in drugs manufacturing.
The R and D
division of the company backed with experienced, highly qualified teams provide sophisticated innovative
solutions. Skilled production teams assure flexibility, efficiency and consistent
standard in chemical manufacturing.
Subject has free capacity in its five production sites in all over
India. This capacity is would be used by interested companies for development
and custom synthesis on strictly confidential terms.
Corporate Mission
The company's Motto is to manufacture and market basic drugs meeting the highest international standards and customer's satisfaction is the ultimate goal. With the kind of multipurpose plant, a good strength of qualified and experienced staff and the well-equipped quality control laboratory they possess.
Exports
The company exports
bulk actives to over 60 countries mainly in Europe, South East Asia, Japan and
Latin America.
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 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.39.96 |
|
UK Pound |
1 |
Rs.78.66 |
|
Euro |
1 |
Rs.63.31 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
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|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|