MIRA
INFORM REPORT
|
Report Date : |
29.12.2008 |
IDENTIFICATION DETAILS
|
Name : |
RA CHEM PHARMA LIMITED |
|
|
|
|
Formerly Known As : |
IGOR DYESPEC PRIVATE LIMITED |
|
|
|
|
Registered Office : |
6-3-1239/2, “AMAR”, 4th Floor, Raj |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
08.01.1996 |
|
|
|
|
Com. Reg. No.: |
01- 22816 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L24110AP1996PLC022816 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
HYDI00508E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACI6448M |
|
|
|
|
Legal Form : |
Closely Held Public Limited Liability Company. |
|
|
|
|
Line of Business : |
Manufacturer of Bulk Drugs and Intermediates |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 652000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track records.
Trade relations are fair. Financials position is satisfactory. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
6-3-1239/2, “AMAR”, 4th Floor, Raj |
|
Tel. No.: |
91-40-66668283 / 66668485 |
|
Fax No.: |
91-40-66138677 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
R.S.No. 50/1, Mukteswarapuram Jaggaiahpeta Mandal, Krishna District, |
DIRECTORS
|
Name : |
Mr. J. Rajender Rao |
|
Designation : |
Managing Director |
|
Address : |
Road No. 12, Banjara Hills, |
|
Date of Birth/Age : |
20.11.1967 |
|
Date of Appointment : |
14.03.2003 |
|
|
|
|
Name : |
Mr. R. Sirish Kumar |
|
Designation : |
Director |
|
Address : |
253/3RT, Vijaya Nagar Colony, |
|
Date of Birth/Age : |
08.07.1965 |
|
Date of Appointment : |
14.03.2003 |
|
|
|
|
Name : |
Dr. B. Srinivasa Reddy |
|
Designation : |
Director |
|
Address : |
310, Srinilaya Apartment, Yellareddyguda, |
|
Date of Birth/Age : |
01.07.1966 |
|
Date of Appointment : |
14.03.2003 |
|
|
|
|
Name : |
Mr. Ravi Yerra |
|
Designation : |
Director |
|
Address : |
Flat #02, Jubilee Heavens, 104, Womens Co-operative Housing Society,
Jubilee Hills, |
|
Date of Birth/Age : |
05.03.1961 |
|
Date of Appointment : |
01.10.2005 |
|
|
|
|
Name : |
Mr. Pritam Singh |
|
Designation : |
Director |
|
Address : |
7, Rukminidevi Colony, Phase-II, Opp. AOC Centre, Maredpally, |
|
Date of Appointment : |
01.10.2005 |
|
|
|
|
Name : |
Mr. Ashok Adityan |
|
Designation : |
Director |
|
Address : |
50/1, Kanta Basti, Off Malhotra Marg, Tirumalgherry, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2006
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Laxmi Ra Holding and Investments Private Limited |
|
3399996 |
|
Ontario Inc |
|
1040000 |
|
Mr. Joseph Herman |
|
360000 |
|
Mr. Rajender Rao |
|
1 |
|
Ms. Renuka R. Rao |
|
1 |
|
Ms. Madhavi |
|
1 |
|
Mr. B. Srinivas Reddy |
|
1 |
|
Total |
|
4800000 |
AS ON 31.03.2006
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
29.17 |
|
Bodies corporate |
|
70.83 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Bulk Drugs and Intermediates |
GENERAL INFORMATION
|
No. of Employees : |
150 |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ř
3i Infotech Trusteeship Services Limited 3rd to 6th Floor,
International Infotech Park, Tower No.5, Vashi Railway Station Complex,
Vashi, Navi Mumbai – 400703, Maharashtra, India. Ř
Axis Bank Limited, Begumpet Branch Ř
ICICI Bank Limited, Begumpet Branch |
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Secured loans as
on 31.03.2007
Unsecured loans
as on 31.03.2007
|
|
|
|
||||||||||
|
Banking
Relations : |
Satisfactory |
||||||||||
|
|
|
||||||||||
|
Auditors : |
|
||||||||||
|
Name : |
Chakradhar and Nandan Chartered Accountant |
||||||||||
|
Address : |
201, Srinath Residential Complex, |
||||||||||
|
Tel. No.: |
91-40-66317174 / 66317598 |
||||||||||
|
Email : |
Chakradhar_nandan@yahoo.com |
||||||||||
|
|
|
||||||||||
|
Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2007
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 |
|
5487176 |
Equity Shares |
Rs. 10/- Each |
Rs. 54.871 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
54.872 |
48.000 |
40.000 |
|
|
2] Share Application Money |
0.000 |
10.695 |
6.410 |
|
|
3] Reserves & Surplus |
75.548 |
33.252 |
22.120 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
130.420 |
91.947 |
68.530 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
208.269 |
163.353 |
107.355 |
|
|
2] Unsecured Loans |
5.654 |
0.146 |
0.646 |
|
|
TOTAL BORROWING |
213.923 |
163.499 |
108.001 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.849 |
|
|
|
|
|
|
|
|
TOTAL |
344.343 |
255.446 |
177.380 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
189.396 |
167.123 |
75.887 |
|
|
Capital work-in-progress |
44.191 |
4.155 |
61.127 |
|
|
Research and Development |
5.935 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
39.320 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
4.176 |
2.106 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
76.328
|
45.723 |
24.169 |
|
|
Sundry Debtors |
74.764
|
76.511 |
48.699 |
|
|
Cash & Bank Balances |
4.599
|
20.930 |
9.606 |
|
|
Other Current Assets |
50.603
|
27.019 |
0.000 |
|
|
Loans & Advances |
0.000
|
0.000 |
18.920 |
|
Total
Current Assets |
206.294
|
170.183 |
101.394 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
142.822
|
85.628 |
61.028 |
|
|
Provisions |
2.302
|
2.700 |
0.000 |
|
Total
Current Liabilities |
145.124
|
88.328 |
61.028 |
|
|
Net Current Assets |
61.170
|
81.855 |
40.366 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.155 |
0.207 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
344.343 |
255.446 |
177.380 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
264.961 |
277.057 |
153.417 |
|
|
Other Income |
4.456 |
7.670 |
1.658 |
|
|
Total Income |
269.417 |
284.727 |
155.075 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
5.131 |
15.235 |
19.907 |
|
|
Provision for Taxation |
(1.100) |
1.061 |
1.298 |
|
|
Profit/(Loss) After Tax |
6.231 |
14.174 |
18.609 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
175.121 |
134.832 |
NA |
|
Total Earnings |
175.121 |
134.832 |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
39.428 |
32.249 |
NA |
|
Total Imports |
39.428 |
32.249 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
140.255 |
113.585 |
16.973 |
|
|
Purchases made for re-sale |
0.000 |
101.249 |
86.850 |
|
|
Increase/(Decrease) in Finished Goods |
(26.802) |
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
13.964 |
10.573 |
7.330 |
|
|
Managerial Remuneration |
2.040 |
4.100 |
2.000 |
|
|
Payment to Auditors |
0.175 |
0.150 |
0.000 |
|
|
Interest |
13.918 |
9.510 |
3.061 |
|
|
Insurance Expenses |
1.749 |
2.088 |
1.233 |
|
|
Power & Fuel |
11.777 |
7.662 |
6.297 |
|
|
Depreciation & Amortization |
9.441 |
6.594 |
3.353 |
|
|
Other Expenditure |
97.769 |
13.981 |
8.071 |
|
Total Expenditure |
264.286 |
269.492 |
135.168 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.31
|
4.97 |
12 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.90
|
5.49 |
12.97 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.04
|
4.43 |
8.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.16 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.75
|
2.73 |
2.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.92 |
1.66 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS
Ř
Ř Plant And Machinery
Ř Computer
Ř Furniture And Fixture
Ř Motor Vehicles
|
This form is for |
Creation of
charge |
||||||||
|
Corporate
identity number of the company |
L24110AP1996PLC022816 |
||||||||
|
Name of the
company |
RA CHEM PHARMA LIMITED |
||||||||
|
Address of the
registered office or of the principal place of business in |
6-3-1239/2, “AMAR”, 4th Floor, Raj |
||||||||
|
Type of charge |
Movable property (not being pledge) Others |
||||||||
|
Particular of
charge holder |
|
||||||||
|
Nature of description
of the instrument creating or modifying the charge |
Deed of hypothecation dated :- 18.06.2008 |
||||||||
|
Date of
instrument Creating the charge |
18.06.2008 |
||||||||
|
Amount secured by
the charge |
Rs. 70.000
Millions |
||||||||
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of interest Cash credit
-13.25% P.A Export packing
credit -13.25% p.a Foreign bill
purchased (FBD)-13.25% p.a Terms of repayment As per credit
arrangement letter Margin As per credit
arrangement letter Extent and operation of the charge Paripassu first
charge on entire movable fixed assets. First charge on
paripassu basis on entire assets of present and future. |
||||||||
|
Short particulars
of the property charged |
Paripassu first
charge on entire movable fixed assets. First charge on
paripassu basis on entire assets of present and future. |
Amalgamation
The trading operations within the group were undertaken
by a separate company named RA Interchem Private Limited. To add synergy to
operations of RA Chempharma Limited and to save
on overheads ans related costs, a proposal to merge RA Interchem Private
Limited with the company was moved and pursuant to the sanction of scheme of
amalgamation dated 4th August 2006 by the Honable High Court of
Andhra Pradesh the merger was approved and the process completed. The company
enhanced its authorized capital from Rs. 40.000 millions to 50.000 millions and
subsequently to Rs. 60.000 millions. The shareholders of RA Interchem Private
Limited were allotted share in the ratio of 2 fully paid up equity shares of
Rs. 10/- each in lieu of each fully paid up share of Rs. 10/- ach held by them.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.89 |
|
|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.67.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|