MIRA INFORM REPORT

 

 

Report Date :

18.02.2008

 

IDENTIFICATION DETAILS

 

Name :

SURYA PHARMACEUTICALS LIMITED

 

 

Registered Office :

Plot No. 85, HPSIDC Industrial Area, Baddi-173205, District Solan, Himachal Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

25.03.1992

 

 

Com. Reg. No.:

06-23861

 

 

CIN No.:

[Company Identification No.]

L24232HP2000PLC023861

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PTLS14220D

 

 

PAN No.:

[Permanent Account No.]

AABCS3001K

 

 

Legal Form :

A Public Limited Liability Company. Company’s shares are listed on the stock exchanges.

 

 

Line of Business :

Manufacturing and Marketing of bulk drugs and pharmaceuticals.

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 3632800

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having satisfactory track. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are reported as fair. General financial position is satisfactory. Payments are reported as slow but correct.

 

The company can be considered normal for business dealings at usual trade terms and conditions

 

LOCATIONS

 

Registered Office :

Plot No. 85, HPSIDC Industrial Area, Baddi-173205, District Solan, Himachal Pradesh, India

Tel. No.:

91-172-2779635 (8 Lines) / 91-1795-245350

Fax No.:

91-172-2779639 / 91-1795-245350

E-Mail :

sales@suryapharma.com

rajivg@suryapharma.com

rajansh@suryapharma.com

Website :

http://www.suryapharma.com

Area :

80000 sq. ft.

Location :

Owned

 

 

Corporate Office :

SCO 164-165, Sector 9-C, Madhya Marg, Chandigarh – 160 009, Punjab, Ind

Tel. No.:

91-172-500-5000/1/2/3/4/5

Fax No.:

91-172-507-6000/1/2/3

Email:

sales@suryapharma.com

surya@suryapharma.com

investorcare@suryapharma.com

Websites:

www.suryapharma.com

 

 

Factory  :
  • Plot No.383, Industrial Area, Phase I, Panchkula, Haryana

Tel.: 91-172-2565222 / 5011319

Fax: 91-172-2573130

Area : 14,00,000 sq. ft.

Location : Owned

 

  • Plot No.85, HPSIDC Industrial Area, Baddi - 173205, District Solan, Himachal Pradesh

Tel. No.: 91-1795-245350

Fax: 91-1795-245350

Area : 40,000 sq. ft.

Location : Owned

 

  • Plot No. 87, HPSIDC Industrial Area, Baddi - 173205, District Solan, Himachal Pradesh

Tel.No.: 91-1795-246050

Fax: 91-1795-245350

Area : 80,000 sq. ft.

Location : Owned

 

  • Village Banur, Tehsil Rajpura, District Patiala, Punjab

Tel.No.: 91-1762-507131-32 / 91-172-5005000

Fax: 91-1762-507130 / 91-172-5076000

      Area: 20,000 sq. ft.

      Location : Owned

 

  • Industrial Growth Centre II, Jammu and Kashmir, India

 

DIRECTORS

 

Name :

Mr. Rajeev Goyal

Designation :

Chairman and Managing Director

Age :

41 years

Qualification:

Graduate

Experience:

16 years

Address:

64, Sector 9A, Chandigarh

 

 

Name :

Mrs. Alka Goyal

Designation :

Executive Director

Age :

39 years

Qualification:

Post Graduate

Experience:

16 years

Address:

64, Sector 9A, Chandigarh

 

 

Name :

Mr.Uday Shantaram Karnik

Designation :

Director-Marketing

Age :

60 years

Qualification:

M.Sc.

Experience:

30 years

Address:

Prashant , 34, Swastik Park, Chembur, Mumbai

 

 

Name :

Mr. S. M. Singla

Designation :

Director Finance

Age :

35 years

Qualification:

FCA

Experience:

12 years

Address:

Flat 402, GH 27, Sector 20, Panckula (Haryana)

 

 

Name :

Mr. Deepak Arya

Designation :

Nominee Director of IDBI

 

 

Name :

Mr. S. M. Jain

Designation :

Director

Age :

66 years

Qualification:

FCWA

Experience:

40 years

Address:

475, Sector- 14, Gurgaon

 

 

Name :

Mr. Anil Kumar Arya

Designation :

Director

Age :

54 years

Qualification:

Dip. Ayurveda

Experience:

25 years

Address:

G-7, Model Town-III, Delhi

 

 

Name :

Mr. Abhey Kumar Jain

Designation :

Director

Age :

70 years

Qualification:

M.Sc.(Tech) Pharma

Experience:

45 years

Address:

158, Sector 18 A, Chandigarh.

 

 

Name :

Mr. Harish Dalmia

Designation :

Director

 

 

Name :

Mr. S. C. Popli

Designation :

Director

 

 

Name :

Mr. Kamal Kant Upadhyay

Designation :

Nominee (IDBI)

 

 

Name :

Mr. Abhishek Arya

Designation :

Additional Director

 

KEY EXECUTIVES

 

Name :

Mr. Rajansh Thukral

Designation :

Company Secretary and Compliance Officer

Address :

Surya Pharmaceutical Limited, SCO 164-165, Sector 9-D, Madhya Marg, Chandigarh – 160 009, Punjab

 

 

Name :

Mr. Sanjiv Sachdev

Designation :

President

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of bulk drugs and pharmaceuticals.

 

 

Products with  ITC Code :
  • Ampicillin Trihydrate - 294110-02              
  • Amxycillin Trihydrate  - 294110-03            
  • Cloxacillin Sodium - 294110-04                
  • Cephalexin Monohydrate - 294190-02       
  • Cefadroxil Monohydrate - 294200-02         

 

 

Products Range :
  • Ampicillin Trihydrate I.P. / B.P. / U.S.P./EP/JP
  • Ampicillin Anhydrous I.P. / B.P. / U.S.P. /EP/JP
  • Amoxycillin Trihydrate I.P. / B.P. / U.S.P./EP/JP
  • Cloxacillin Sodium I.P. / B.P. / U.S.P../EP/JP
  • Dicloxacillin Sodium E.P. / B.P. / U.S.P. /EP/JP
  • Flucloxacillin Sodium E.P. / B.P/ USP../EP/JP
  • Cephalexin Monohydrate I.P. / B.P. / U.S.P.
  • Cefadroxil Monohydrate I.P. / B.P. / U.S.P.
  • Cephradine B.P. / U.S.P.
  • Ceftriaxone Sodium B.P. / U.S.P.
  • Cefazolin Sodium B.P. / U.S.P.
  • Cefotaxime Sodium B.P. / U.S.P.
  • Loratadine
  • Clarithromycin U.S.P.
  • Roxithromycin B.P.
  • Erythromycin Stearate I.P. / B.P. / U.S.P.
  • Erythromycin Estolate I.P. / B.P. / U.S.P.
  • 6-Amino Penicillanic Acid
  • 7-Amino Desacetoxy Cephalosporanic Acid
  • D (-) Parahydroxy Phenyl Glycine Dane Salt (K. Methyl)
  • CMIC Chloride
  • Ciprofloxacin Hydrochlo Ride I.P / B.P. / U.S.P.
  • Enrofoxacin
  • Fexofenadine Hydrochloride
  • Indinavir Sulphate
  • Lamivudine
  • Sultamicillin Tosylate
  • Sulbactam Sodium (Oral)
  • Antibacterial

 

 

Exports :

 

Products :
  • Cefachlor
  • Cefixime
  • Cefadroxil
  • Cephalexin
  • Cefdinir
  • Cefprozil Loratadine
  • Fexofenadine
  • Desloratadine
  • Ampicillin, Amoxycillin
  • Flucloxacillin
  • Di Cloxacillin
  • Cloxacillin

Countries :
  • Africa
  • Asia
  • Europe
  • South America
  • Hong Kong
  • Singapore
  • Switzerland

 

 

Imports :

 

Products :
  • Chemicals
  • Solvents

Countries :
  • China
  • Italy
  • Singapore
  • Denmark
  • Hong Kong
  • Germany

 

 

Terms :

 

Selling :

Credit (90 days)

 

 

Purchasing :

L/C

 

 

PRODUCTION STATUS

 

Particulars

Production

Sales

Unit

Installed Capacity

Actual Production

Percentage

 

 

 

 

 

 

 

Bulk Drugs

746.820

(781.47)

747.110

(774.40)

Tons

963.000

746.820

77.55

Formulations

145.122

(127.704)

149.631

(124.539)

Million Nos.

180.000

145.122

80.62

 

 

GENERAL INFORMATION

 

Customers :
  • End Users
  • Wholesalers

 

 

No. of Employees :

690

 

 

Bankers :
  • Punjab National Bank

Sector 16-D, Chandigarh - 160 016, Punjab

Credit Limit: Rs.124.500 millions

 

  • State Bank of India

Sector 17-B, Chandigarh, Punjab

Credit limit: Rs. 64.500 millions

 

  • Canara Bank

Sector 17-C, Chandigarh – 160 017

Tel No. 91-161-2701699

Credit Limit: Rs.43.000 millions

 

·         ICICI Bank

9-C, Chandigarh

Credit limit: Rs.89.000 millions

 

·         Federal Bank

Sector 8, Chandigarh

      Credit limit: Rs.100.000 millions

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Bansal Mittal and Company

Chartered Accountants

Address :

SCO 2935-36, 1st Floor,

Sector 22-C, Chandigarh – 160 022

Tel. No.:

91-172-2707065

 

 

Associates/Subsidiaries :
  • Surya Medicare Limited

       Dera Bessi, Punjab.

 

  • Surya Narrow Fabrics

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

26000000

Equity Share

Rs.10/- each

Rs.260.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

14468300

Equity Share

Rs.10/- each

Rs.144.683 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

144.700

110.800

106.800

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1237.600

797.400

560.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1382.300

908.200

667.200

LOAN FUNDS

 

 

 

1] Secured Loans

1328.200

914.600

639.200

2] Unsecured Loans

627.400

563.600

35.400

TOTAL BORROWING

1955.600

1478.200

674.600

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

3337.900

2386.400

1341.800

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

801.000

619.000

508.300

Capital work-in-progress

624.700

312.500

0.000

 

 

 

 

INVESTMENT

1.800

2.000

6.800

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1335.300
806.700

603.600

 

Sundry Debtors
736.900
503.200

441.000

 

Cash & Bank Balances
79.100
439.400

61.800

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
349.800
238.000

196.600

Total Current Assets
2501.100
1987.300

1303.000

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Current Liabilities
539.000
543.300

490.400

 

Provisions
58.200
0.000

0.000

Total Current Liabilities
597.200
543.300

490.400

Net Current Assets
1903.900
1444.000

812.600

 

 

 

 

MISCELLANEOUS EXPENSES

6.500

8.900

14.100

 

 

 

 

TOTAL

3337.900

2386.400

1341.800

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

3043.000

2577.000

1812.200

Other Income

14.500

4.800

2.400

Stock Adjustments

424.500

105.000

167.700

Total Income

3482.000

2686.800

1982.300

 

 

 

 

Profit/(Loss) Before Tax

302.700

270.600

129.400

Provision for Taxation

65.800

57.700

45.500

Profit/(Loss) After Tax

236.900

212.900

83.900

 

 

 

 

Expenditures :

 

 

 

 

Selling and Administration Expenses

82.000

74.700

61.100

 

Raw Material

2500.500

1819.400

1396.700

 

Excise Duty

209.000

191.700

122.400

 

Employee Cost

63.400

27.800

24.900

 

Interest and Financial Charges

31.300

139.600

117.000

 

Power & Fuel

42.800

52.600

40.300

 

Depreciation

163.300

63.800

55.700

 

Miscellaneous Expenses

7.600

6.700

6.500

 

Other Manufacturing Expenses

79.400

39.900

28.300

Total Expenditure

3179.300

2416.200

1852.900

 

 

SUMMARISED RESULTS

 

 

PARTICULARS

30.06.2007

1st Quarter

30.09.2007

2nd Quarter

31.12.2007

3rd Quarter

Type

 

 

 

Sales Turnover

1036.200

1180.800

1189.100

Other Income

0.000

0.000

1.600

Total Income

1036.200

1180.800

1190.700

Total Expenditure

853.000

970.700

965.300

Operating Profit

183.200

210.100

225.400

Interest

40.500

45.000

54.600

Gross Profit

142.700

165.100

170.800

Depreciation

22.000

24.600

30.000

Tax

18.800

22.600

21.100

Reported PAT

101.900

117.900

119.700

 

 

KEY RATIOS

 

Year

31.03.2007

 31.03.2006

31.03.2005

Debt-Equity Ratio

1.50

1.37

0.96

Long Term Debt-Equity Ratio

0.66

0.58

0.30

Current Ratio

1.46

1.44

1.36

TURNOVER RATIOS

Fixed Assets

2.86

3.04

2.57

Inventory

2.84

3.65

3.47

Debtors

4.91

5.46

4.76

Interest Cover Ratio

2.85

2.94

2.11

Operating Profit Margin(%)

17.92

18.39

16.67

Profit Before Interest And Tax Margin(%)

15.31

15.92

13.60

Cash Profit Margin(%)

10.39

10.74

7.70

Adjusted Net Profit Margin(%)

7.79

8.26

4.63

Return On Capital Employed(%)

16.33

22.14

20.63

Return On Net Worth(%)

20.69

27.03

13.58

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

 

Punjab National Bank, State Bank of India, The Federal Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered Bank, Industrial Development Bank of India Limited and all other Banks and Financial Institutions have directly or indirectly supported the Company for meeting short term or Long Term and Working Capital financial needs of the Company's expanding operations. 

 

HISTORY

 

Subject is a Chandigarh-based pharmaceutical company with four manufacturing facilities spread across three states of Himachal Pradesh, Haryana and Punjab. The company produces semi synthetic penicillin based products, first generation cephalosporins, anti histamines, drug intermediaries and formulations.


The Company can be considered predominantly a bulk drug or Active Pharmaceutical Ingredient (API) manufacturer, as formulations constituted less than 4% of revenues in FY 2002-03, while the balance was contributed by API, intermediaries and others. Subject is relatively a very small player in the current context. Nevertheless, it has found a space in both domestic and overseas market. In the domestic market, it has opted to become preferred supplier of APIs to domestic pharma majors. In the overseas market, it has been focussing on Far East, Middle East and South Asia. Overall it plans to focus equally on domestic and export market.

 
The company has offered 3.000 Millions equity shares of Rs.10 each at a premium of Rs.35 each, aggregating Rs.135 millions. The issue proceeds will be utilised, predominantly to augment working capital requirements at Rs.104.700 millions Plant and machinery for R and D amounting to Rs.23.300 millions and for preliminary and public issue expenses of Rs.7.000 millions.

 

 Rajeev Goal, who is currently the company's Managing Director, has promoted the company. The core promoters hold 36.41% stake in the company, which will come down to 25.98% post issue. The promoters friends and associates hold 63.58% stake in the company, which will come down to 45.34% post issue.

 

Over the past three yeas, the company's plant has been operating around 60% capacity utilisation, due to paucity of working capital. Of the proposed issue proceeds of Rs135.000 millions (including premium), nearly 78% amounting to Rs.104.8 millions is towards augmenting working capital. On successful completion of the issue, the company is hopeful of scaling up the capacity utilisation of bulk drugs, intermediates as well as formulations to 85% in 2003-04, 90% in 2004-05 and to 95% in 2005-06.

 
 The company is presently fetching significant revenues from products like Ampicillin, Amoxicillin, which have very low margins, but have significant growth potential in terms of volume. While the company will optimally capitalise on the growth potential and scale up volumes to improve capacity utilisation and profitability, it has also planned to move up the value chain.

   
 The company's strategy to move up the value chain is multifold. It plans to (a) Increasing the share of higher margin compounds like Cephalexin, Cefadroxyl, Loratadine, Dicloxacillin etc (b) develop new molecules in other therapeutic areas like anti-ulcerants, anti-diabetes (c) Progressively shift to third generation penicillin based cephalosporins like cefixime, cefuroxime, cefdinir, cefporgyl etc, which are already ready for commercial launch (d) Increase the share of regulated markets in the export revenues.

 
 
Currently, the company is focussed on manufacture of tablets and capsules for Pencilling G based products, wherein it has strong presence in API segment. Given the current relatively low level of activity, the company is supplying the formulations on loan license basis to Indswift. This ensures that the company does not end up spending huge amounts on promotion, distribution etc, which may not be justified for current volumes. Further, the company plans to expand its formulation business through tie-ups with few other major pharma companies.

  
 The company has been funding its expansion projects predominantly through debt, augmented by internal accruals. As a result, its interest and finance costs as a percentage of year-end debt were very high at 22% in 2001-02, 17.3% in 2002-03 and 19.0% in the six months ended Sept'03. Given the low interest regime prevailing in the country and the availability of the funds from the current IPO, its interest costs can come down significantly, thereby powering the bottomline.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS: 

 
Statements in the Management's Discussion and Analysis Report which seek to describe the Company's objectives, projections, estimates, expectations or predictions may be considered to be "forward-looking statements" and are stated as required by applicable laws and regulations. Actual results may differ materially from those expressed or implied. Many factors including global and domestic demand-supply conditions, prices, raw-materials availability, technological changes, changes in Government regulations, tax laws and other statutes may affect the actual results, which could be different from what the Directors' envisage in terms of future performance and outlook. Market data and product analysis contained in this Report has been obtained from internal Company reports and industry publications, but their accuracy and completeness are not guaranteed and their reliability cannot be assured. 

 

 
The Subject sector worldwide is expected to grow by 8 to 10% in 2007. India is the fourth largest producer in the world accounting for almost 10% of global drug production by volume and increasingly focusing on indigenous R&D. However, at US$ 9.4 per capita spending is amongst the lowest in the world. The pharmaceutical expenditure was an estimated 1.5% of GDP in the last year. Indian market size is expected to grow significantly by the year 2010. Thus, there exists a huge market potential.

 

Main therapeutic categorizes are likely to remain the highest earners in next five years. Indian generic exporters have a great potential ahead in the emerging world markets. Thus Indian pharmaceutical market has enormous potential for growth. In line with the market scenario, the company is targeting at all product segments including therapeutic segment to exploit the available business opportunities. 

 
In view of the current trend, both volume and value are expected to grow at a significant rate in the coming years- The share of the Indian Pharma Industry in the Global market is expected to be well over USD 15.2 billion by 2010. In the recent past, the local companies have shown much faster growth than their global counterparts in the country. The fragmented market has moved towards consolidation, especially in the light of the new Patent Act. Not only this, the multinational companies, which earlier preferred to manufacture Bulk Drugs at their own manufacturing facilities, but with the changing business environment the world over, such companies is now concentrating more on their core. Competencies and now prefer to out source their Bulk Drug requirements. Today, the pharmaceutical industry in India meets around 70% of the countries demand for Bulk Drugs, Drug Intermediates, Pharmaceutical Formulations and the like. There are about 250 large units and about 8000 small scale units which form the core of the pharmaceutical industry in India to produce complete range of pharmaceutical products. This industry has become totally self-reliant, technologically strong and low on cost. Thus the track record of development, particularly in the area of improved cost-beneficial chemical syntheses for various drug molecules is encouraging. 

 

 
The Company was incorporated in the year 1992 to set up a pharmaceutical unit and initially a project to manufacture 3 MT per month of semi Synthetic Penicillin i.e. Ampicillin, Amoxycillin and Cloxacillin was conceived and commissioned in a record period of 4 months. Enthused by tremendous response from the buyers, the Company expanded its capacity to 15 M.T. p.m. and also went for backward integration to manufacture the key intermediate i.e. 6APA from the basic raw material i.e. Penicillin G. The Company was able to gain the position in domestic as well as international market and expanded its production capacities by phased expansion programmed .and acquisition. The Company has, as on date, three units, which can manufacture APIs of 963 TPA and intermediates 800 TPA and the fourth unit which can manufacture 264.000 Millions numbers of formulation capsules and 120.000 Millions numbers of tablets. The fifth unit is being set up at Jammu. 

 
The Company is also focusing on Research and Development activities to optimise cost, increase process yield, inventing better process and waste recovery methods. The R and D team specialises in Alkylation, Bromination, Cyanation, lodirxition, Diazotization, Friedal - Crafts, Acylation, Substitution Reaction, Mannich Reaction, Condensation, Grignard Reaction, Cyclization, Esterfication, Hydrolysis, Hetrocyclic Synthesis, Typical oxidation etc.

 

In the coming times, the Company plans to enter into high value, bulk Cephalosporin (oral and sterile at its Banur Unit), therapeutic products.

 

Besides, the company has also made significant progress for' entering into regulated markets. The installed capacities, capacity utilization, for each product in the year under review are as under:  


During the financial year 2006-07, they have outsourced some of the intermediates like Dane Salt and they have utilised the capacity for the manufacture of Bulk Drugs. 

 

 

 
The total income for the year ended 31.03.2007 was Rs.2848.495 Millions as compared to Rs.2390.155 Millions for the year ended 31.03.2006. The increase in turnover is around 19.17% mainly attributable to shift from volume to value. 

 
The total expenditure for the year ended 31.03.2007 also increased by 19.21% compared to the expenditure during the previous year. 

 
Interest cost of the Company as a percentage of sales was 4.84% during the year under review whereas it was 5.83% during the year 2005-06. The Company had contracted most of the present term loans during the period 1998-2002 when the interest rates were significantly higher. The Interest Cost has escalated as Company has redefined its product mix and is now more and more in value products which have long processing cycle and high entry barriers due to their complex chemistry. The Company has already got some of the high cost loans swapped with low cost loans and thereby the cost of financing has been brought down to some extent. 

 
The Net Profit for the year ended March, 2007 stands at Rs.236.897 Millions after providing for provision of taxation both for current year, deferred tax as well as previous year taxes against Rs.212.910 Millions during the previous year recording a net increase of 11.27%. 

 
The Company has converted 33,90,000 Zero Coupon Convertible Share Warrants into fully paid Equity Shares. The Company issued 12,000 Foreign Currency Convertible Bonds of USD 1,000 each convertible into fully paid Equity Shares within three years from the date of issue. The last date shall be 28.09.2008. The Equity Shares to be issued upon conversion of Foreign Currency convertible Bonds shall rank pari-passu in all respects with the existing shares issued by the Company. All the Equity Shares have been listed on NSE and BSE and have been issued in dematerialized form and are tradable through Stock Exchanges only in dematerialized form. The Equity Shares offer good liquidity. 

 

 
In India the per capita expenditure on pharmaceuticals is very less which is about USD 9.4, the lowest in the world which is now looking for correction over the coming few years. Thus within the Industry the business outlook is very encouraging and consequently the Company continues to have the Potential to achieve rapid growth in sales and profits and enhanced International Presence. The wholly integrated production line of the Company from intermediates to final products of different kinds including formulations with fairly large capacities may become USP in the Future.

 

Established operations with four state of the art manufacturing units with excellent infrastructure. The Company possesses time tested Technologies and Products. 

 
 As per the latest report on pharmaceuticals Industry, there is immense Potential for the Company to become major player in Antibiotic drugs Industry in Indian Markets having fairly large capacities. Anti-Histamine/Cephalosporin drugs have rapidly growing markets. The size of Indian Pharma market itself is set to grow many times which will open a wide spectrum /opportunities for existing players. 

 

 

OTHER INFORMATION:

 

Amalgamation

 

Pursuant to the Scheme of Amalgamation of the Sam Biotech Limited with the company, as approved by the shareholders and sanctioned by the Hon'ble Punjab and Haryana High Court on 26.07.2001 and by the Hon'ble Himachal Pradesh High Court on 14.08.2001, the assets and liabilities of Sam Biotech Limited stand transferred to and vested in the company with retrospective effect from 1st April, 2000 being the effective date. 

 

The amount standing to the credit of capital suspense accounts represents shares of Subject  to be allotted to the original subscribers of Sam Biotech Limited after transfer date.

 

The company maintained the pace of sustained growth, reported to increase in turnover by 30% and the profits increased by 5%.

 

The year 2002 was momentous for the company’s operations.  A number of landmarks achievements during the year had laid the foundation for future growth.  Some of these accomplishments include:

 

 

 

 

TRADE REFERENCE:-

 

Kiran Mansion, 4834/24, Ansari Road,

Darya Ganj, New Delhi – 110 002

 

Hal Complex, Pimpri, Pune – 411 018, Maharashtra 

Tel No. 91-20-7425342

Contact Person :  Mr. M. L. Sharma

 

      Tel No. 91-11-23354061

      Contact Person :  Mr. P. K.Khanna

Harsha Bhawan, II Floor, 'E' Block, Connaught Place, New Delhi - 110 001

 

 

 

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.39.66

UK Pound

1

Rs.78.16

Euro

1

Rs.58.09

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

72

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions