MIRA
INFORM REPORT
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Report Date : |
27.12.2008 |
IDENTIFICATION DETAILS
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Name : |
AURO LABORATORIES LIMITED |
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Registered Office : |
K-56, MIDC Tarapur Industrial Area, Thane – 401 506, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.05.1989 |
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Com. Reg. No.: |
51910 |
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CIN No.: [Company
Identification No.] |
L33125MH1989PLC051910 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA06653D / MUMA20224B / MUMA22334E |
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PAN No.: [Permanent
Account No.] |
AAACA3977D |
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Legal Form : |
Public limited
liability company. The company's
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer
of Pharma Bulk Drugs, Active Pharma Ingredients, Bulk Active Ingredients. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 240000 |
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Status : |
Moderate |
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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 having moderate track records.
Company’s profitability is under severe pressure. General financial position
is weak having good amount of accumulated losses. Payments are reported as
slow at times. The company can be considered for small to mediocre business dealings.
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LOCATIONS
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Registered Office/Factory : |
K-56, MIDC Tarapur Industrial Area, Thane – 401 506, |
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Website : |
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Head Office : |
314, T V Industrial Estate, S K Ahire Marg, Worli, Mumbai – 400 030, |
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Tel. No.: |
91-22-66635456 (4 Lines) |
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Fax No.: |
91-22-66635460 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Sharat Deorah |
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Designation : |
Managing Director |
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Name : |
Mr. Siddnartha Deorah |
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Designation : |
Director |
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Name : |
Mr. Murarilal Sharma |
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Designation : |
Director |
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Name : |
Mr. Goverdhandas Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Chandrakant I Gandhi |
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Designation : |
Director |
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Name : |
Mr. Jagdish Prasad Saria |
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Designation : |
Director |
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Audit Committee : |
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Name : |
Mr. Murarilal Sharma |
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Designation : |
Chairman |
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Name : |
Mr. Goverdhandas Aggarwal |
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Designation : |
Member |
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Name : |
Mr. Siddnartha Deorah |
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Designation : |
Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 31.03.2007)
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Category |
No. of Shares |
Percentage of
Holding |
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Promoters |
2466986 |
39.58 |
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Private Bodies Corporate |
146172 |
2.34 |
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Indian Public |
2520768 |
40.45 |
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NRI/OCBs |
1098574 |
17.63 |
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Total |
6232500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Pharma Bulk Drugs, Active Pharma Ingredients, Bulk Active Ingredients. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
47 |
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Bankers : |
Allahabad Bank, Mumbai |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Kothari Jain and Associates Chartered Accountants |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs.10/- each |
Rs.70.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6232500 |
Equity Shares |
Rs.10/- each |
Rs.62.325
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
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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 |
62.325 |
62.325 |
62.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.175 |
5.175 |
(14.000) |
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4] (Accumulated Losses) |
(20.130) |
(20.482) |
0.000 |
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5] Cash Subsidy |
1.500 |
1.500 |
0.000 |
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NETWORTH |
48.870 |
48.518 |
48.300 |
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LOAN FUNDS |
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1] Secured Loans |
11.116 |
7.721 |
1.200 |
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2] Unsecured Loans |
26.033 |
13.256 |
1.600 |
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TOTAL BORROWING |
37.149 |
20.977 |
2.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
86.019 |
69.495 |
51.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
26.233 |
28.331 |
24.800 |
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Capital work-in-progress |
13.750 |
6.476 |
5.400 |
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INVESTMENT |
0.488 |
1.034 |
2.200 |
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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 |
27.952
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21.752 |
9.000 |
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Sundry Debtors |
15.757
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6.571 |
2.100 |
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Cash & Bank Balances |
0.298
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0.244 |
0.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
14.366
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16.199 |
11.600 |
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Total
Current Assets |
58.373
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44.766 |
23.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
12.825
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11.112 |
4.400 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
12.825
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11.112 |
4.400 |
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Net Current Assets |
45.548
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33.654 |
18.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
86.019 |
69.495 |
51.100 |
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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 |
51.484 |
44.977 |
27.300 |
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Other Income |
0.501 |
0.559 |
1.600 |
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Total Income |
51.985 |
45.536 |
28.900 |
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Profit/(Loss) Before Tax |
0.401 |
0.316 |
(1.600) |
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Provision for Taxation |
0.049 |
0.082 |
0.000 |
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Profit/(Loss) After Tax |
0.352 |
0.234 |
(1.600) |
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Earnings in Foreign Currency : |
5.807 |
9.247 |
NA |
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Imports : |
9.242 |
9.406 |
NA |
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Expenditures : |
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Purchases for Trading |
0.778 |
0.847 |
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Manufacturing Expenses |
10.364 |
7.616 |
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Expenditure on Employees |
4.799 |
4.215 |
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Raw Material Consumed |
33.225 |
38.572 |
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Administrative Expenses |
3.396 |
3.794 |
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Selling and Distribution Expenses |
1.189 |
1.068 |
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Increase/(Decrease) in Finished Goods |
(5.302) |
(13.306) |
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Interest |
1.107 |
0.451 |
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Depreciation & Amortization |
2.028 |
1.963 |
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Total Expenditure |
51.584 |
45.200 |
30.500 |
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SUMMARISED RESULTS
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PARTICULARS |
31.03.2008 |
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Type |
Full
Year |
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Sales
Turnover |
61.200 |
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Other
Income |
0.000 |
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Total
Income |
61.200 |
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Total
Expenditure |
56.800 |
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Operating
Profit |
4.400 |
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Interest |
1.500 |
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Gross
Profit |
2.900 |
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Depreciation |
2.500 |
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Tax |
0.000 |
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Reported
PAT |
0.400 |
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Dividend
(%) |
0.000 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2008 |
30.09.2008 |
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Type |
1st
Quarter |
2nd
Quarter |
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Sales
Turnover |
17.900 |
29.200 |
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Other
Income |
0.000 |
0.600 |
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Total
Income |
17.900 |
29.800 |
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Total
Expenditure |
19.800 |
32.100 |
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Operating
Profit |
(1.900) |
(2.300) |
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Interest |
0.700 |
1.000 |
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Gross
Profit |
(2.600) |
(3.300) |
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Depreciation |
0.600 |
0.600 |
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Tax |
0.000 |
0.000 |
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Reported
PAT |
(3.200) |
(3.900) |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.68
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0.51 |
(5.54) |
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Net Profit Margin (PBT/Sales) |
(%) |
0.78
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0.70 |
(5.86) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.47
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0.43 |
(3.34) |
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Return on Investment (ROI) (PBT/Networth) |
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0.01
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0.01 |
(0.03) |
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Debt Equity Ratio (Total Liability/Networth) |
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1.02
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0.66 |
0.15 |
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Current Ratio (Current Asset/Current Liability) |
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4.55
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4.03 |
5.25 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Company performed well during the year. The Total Income at Rs.51.985
millions was up by about 14% over the previous year. The profitability of the
company has also increased and the profit after tax was Rs.0.352 millions as
against loss of Rs.0.234 millions during the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
BUSINESS OVERVIEW
The main business of the Company is manufacturing and sale of Chemicals, Dyes,
Dyes Intermediates used in Industrial and Domestic purposes.
OPPORTUNITIES, THREATS, RISKS, CONCERNS
AND OUTLOOK
The year experienced a global slow down in economic growth, which had its
impact in
The general outlook with respect to this Industry in
EXPORTS
The main thrust of the Company is on export which constitute around 64% of
total sales of the Company.
The Company is fast consolidating its resources to build a market presence in
the international arena. The results are reflected in an exponential growth
rate in the last two years as also continuing in the current year.
PERFORMANCE OF THE COMPANY
The challenges described above did restrict the sales growth to a modest rate,
however, the Company managed to achieve a substantial growth in Net Profit.
During the current financial year the Company is working towards further
improvement in its profitability.
FINANCIAL
PERFORMANCE
The highlights of the financial performance of the Company for the year are as
under:
·
The Net Profit was Rs.0.352 millions as against
Rs.0.234 during the previous year.
·
The Company spent Rs.0.028 million on Capital
Expenditure during the year. Capital Work in Progress pending capitalization
stands at Rs.13.751 millions as against Rs.6.476 millions as at March 31,
2006
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The Secured Loan as at March 31, 2007 was Rs.11.116
millions as against Rs.7.721 millions as at March 31, 2006.
FIXED ASSETS
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Plant and Machinery
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Pipe Fittings
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Laboratory Equipments
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Electrical Equipments
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Tools and Equipments
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Fire Fighting Equipments
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Air Conditioners
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Furniture and Fixtures
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Computers
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Motor Car
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Scooter
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Road A/c
WEB DETAILS
Subject is a manufacturer of Active Pharmaceutical Ingredients (API's), Intermediates
and Generic Formulations. Subject was
founded and incorporated in 1992 at Mumbai, with a manufacturing facility
located at Tarapur, 120 Km from Mumbai. Since inception they have
focused on providing quality pharmaceuticals while maintaining high
manufacturing standards.
The primary focus has been on Anti-Diabetic
Drugs, which is estimated to be one of the fastest growing therapeutic
segments. Currently, they manufacture Metformin Hydrochloride and Glibenclamide
and are on the anvil of introducing others within this segment. Additionally,
they also undertake Toll/Custom Manufacturing for API's and Intermediates on
contract basis. The manufacturing facility operates are per cGMP norms and has
an installed capacity in excess of 500 Tonnes per annum.
Subject has made its presence felt in international markets with a bulk
of the production being exported to South East Asia,
They believe in rigorous implementation the Quality Management Systems,
which ensure the manufacturing of quality products with due environmental
concerns. This has enabled us to successfully achieve ISO 9001:2000 and WHO -
cGMP certifications. They have received CERTIFICATE OF SUITABILITY (COS) from the European Directorate of
Quality Medicine (EDQM) in September 2006 vide Certificate No.R0-CEP 2005-123-
Rev 00.
Brief History
Since inception, they have built a solid foundation and achieved steady
growth over the years. They believe this world help them propel to further
heights in the future.
Milestones
1992
- Subject started its operations with
Sodium Citrate and Potassium Iodide.
- They then developed specific expertise
in the antibacterial drug, Trimethoprim
1996
- They went for backward integration and
started producing 3,4,5 Trimethoxy Benzaldehyde, the basic raw material
for Trimethoprim
- IPO of shares in 1996, currently listed
on the Bombay Stock Exchange (BSE)
2004
- Achieved ISO 9001:2000 Certification
2006
- Achieved CERTIFICATE OF
SUITABILITY(COS) from the European Directorate of Quality Medicine (EDQM)
2007
- Received DMF No 19910 from the FDA for
Metformin Hydrochloride.
Manufacturing
The manufacturing facility is located at
Tarapur, 120 Km from Mumbai in the state of Maharashtra, on the western coast
of
Facilities
The entire facility operates as per Current Good Manufacturing Practice(cGMP) norms and has all the
necessary infrastructure and services of a modern and multipurpose
pharmaceutical plant. The versatility of the facility allows the possibility
for a wide range of reaction capabilities. Each plant is adequately supported
by dedicated powder processing sections.
The Quality Assurance Department ensures product quality and the
compliance of all regulatory requirements. It is supported by an efficient
Quality Control Laboratory following Good
Laboratory Practices(GLP) and having all requisite equipments. The
warehouse, engineering and maintenance departments provide the support
functions.
Safety precautions are taken at every stage of production to ensure
smooth handling and processing of chemicals. Environmental concerns are duly
addressed and all effluents and hazardous wastes are transferred to the Common Effluent Treatment Plant(CETP)
or the Mumbai Waste Management
Limited(MWML) for treatment and disposal.
The dedicated team of professionals ensures the implementation of all
systems and procedures on an uninterrupted basis.
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] 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
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Indian Rupees |
|
US Dollar |
1 |
Rs.47.89 |
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|
1 |
Rs.70.84 |
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Euro |
1 |
Rs.67.37 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
4 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
2 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
27 |
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 |
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