MIRA
INFORM REPORT
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Report Date : |
05.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SERUM INSTITUTE OF INDIA LIMITED |
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Registered Office : |
212/2, Hadapsar, Poona Off. Poonawalla Road, Pune – 411028,
Maharashtra . |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.05.1984 |
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Com. Reg. No.: |
032945 |
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CIN No.: [Company
Identification No.] |
U80903PN1984PLC032945 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNES15736A |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Subject is engaged in the business as manufacturing,
buying, selling, importing, exporting and act as distributors, agents and
stockiest in all types of vaccines using the routes of genetic engineering,
animal cell culture, serum or any other methodology / process developed from
time to time. To deal in chemicals and pharmaceutical products plants,
medicines, drugs, acids, other biological products, pharmaceutical
formulations in the form of injections, tablets, capsules, ointments,
suppositories, ophthalmic and liquid oral preparation, cosmetics, veterinary
and dental preparation, food products, essential oils, crude drug family
planning devices and medicaments, mellic anhydrade. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3268234 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old, well-established and reputed company specialised in producing preventive and curative products. Directors are respectable and experienced. Some of them are professionally qualified doctors. Trade relations are reported as fair. Payments are usually correct and as per commitments. The company can be considered for normal business dealing
at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Human Resources : |
212/2, Hadapsar, Poona Off. Poonawalla Road, Pune – 411028,
Maharashtra , India |
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Tel. No.: |
91-20-26993900 |
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Fax No.: |
91-20-26993921 |
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E-Mail : |
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Domestic Marketing Division :
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501,Dalamal Tower, 211,Nariman Point, Mumbai – 400 021, India. |
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Tel. No.: |
91-22-22840370 |
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Fax No.: |
91-22-22044389 |
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E-Mail : |
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Finance Division: |
Sarosh Bhavan, 16-B/1, Dr. Ambedkar Road, Pune – 411 001, India. |
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Tel. No.: |
91-20-26137221 |
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Fax No.: |
91-20-26133228 |
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E-Mail : |
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Administrative Office : |
13/375, Khara Niwas, 2nd Floor, Gurunanak Nagar, Off Shankar Sheth Road, Pune – 411 042, Maharashtra, India |
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Tel. No.: |
91-20-26993900 |
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Fax No.: |
91-20-26993921 |
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E-Mail : |
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Regional Office : |
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Laboratories : |
Located at :- § Pune, Maharashtra, India § Mumbai, Maharashtra, India § Baroda, Gujarat, India § New Delhi, India § Chennai, Tamilnadu, India § Kolkata, West Bengal, India |
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Branches : |
5, Nutan Bharat Society, 2nd Floor, Near Nutan Bharat Club, Alkapuri, Baroda – 390 007, Gujarat, India Tel. 91-265-2322642 Fax. 91-265-2333664 E-mail. baroda@seruministitute.com No. 5, Mahalinga Chetty, 2nd Cross Street , Mahalingapuram, Chennai – 600 034, Tamilnadu, India Tel. 91-44-28262113 Fax. 91-44-28269884 E-mail. chennai@seruminstitute.com Velma House, 2nd Floor, H. No. 3-6-432, Himayat Nagar, Hyderabad – 500 029, Andhra Pradesh, India Tel. 91-40-27639702 Fax. 91-40-27635049 E-mail. hyderabad@seruminstitute.com 45, Jhowthala Road, Kolkata – 700 019, West Bengal, India Tel. 91-33-22402609 Fax. 91-33-22400264 E-mail. kolkatta@seruminstitute.com 1401-1404. Ansal Tower, 38, Nehru Place, New Delhi – 110 019, India Tel. 91-11-26470327 Fax. 91-11-26466972 E-mail. newdelhi@seruminstitute.com M 2/3, Sandhya Darshan Apartments, Adajan Road, Surat – 395 009, Gujarat, India Tel. 91-261-2681601 Fax. 91-261-2686418 E-mail. surat@seruminstitute.com House No. 7-20-13, Sanjevaya Nagar, Kirlampudi Layout, Visakhapatnam – 530 001, Andhra Pradesh, India Tel. 91-891-2775703 Fax. 91-891-2750306 E-mail. vizag@seruminstitute.com
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DIRECTORS
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Name : |
Mr. Zavaray Soli Poonawalla |
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Designation : |
Director |
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Address : |
12, Gidney Park, Salisbury Park, Pune – 411 037, Maharashtra, India |
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Date of Birth/Age : |
04.12.1943 |
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Date of Appointment: |
22.05.1984 |
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Name : |
Mr. Cyrus Soli Poonawalla |
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Designation : |
Managing Director |
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Address : |
11, Gidney Park, Salisbury Park,Swargate, Pune – 411 037, Maharashtra, India |
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Date of Birth/Age : |
11.05.1941 |
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Date of Appointment : |
22.05.1984 |
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Name : |
Mr. Adar Cyrus Poonawalla |
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Designation : |
Director |
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Address : |
11, Gridney Park, Pune – 411 037, Maharashtra, India |
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Date of Birth/Age : |
14.01.1981 |
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Date of Appointment : |
- |
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Name : |
Mr. Behroze Z. Poonawalla |
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Designation : |
Director |
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Address : |
12, Gidney Park, Salisbury Park,Swargate, Pune – 411 037, Maharashtra, India |
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Date of Birth/Age : |
08.12.1946 |
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Date of Appointment : |
01.02.1986 |
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Name : |
Mr. Suresh Sahkaram Jadhav |
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Designation : |
Director |
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Address : |
16, Sadhana Society, Near Akashwani, Pune – 411 028, Maharashtra, India |
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Date of Birth/Age : |
24.01.1950 |
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Date of Appointment : |
12.10.1992 |
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Name : |
Mr. Villoo Cyrus Poonawalla |
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Designation : |
Director |
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Address : |
11, Gridney Park, Pune – 411 037, Maharashtra, India |
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Date of Birth/Age : |
30.09.1943 |
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Date of Appointment : |
01.02.1986 |
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Name : |
Mr. Subhash Vinayak Kapre |
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Designation : |
Director |
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Address : |
Golden Blossom, Flat No. 7, 8 & 9, 3rd Floor Kanchan Galli, Off Law College Road, Pune, Mahrashtra |
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Date of Birth/Age : |
28.11.1947 |
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Date of Appointment : |
12.10.1992 |
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Name : |
Mr. Satish Ramchandra Mundra |
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Designation : |
Director |
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Address : |
401, Clover Court, Opp Guruprasad Society, Pune – 411 001, Maharashtra, India |
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Date of Birth/Age : |
04.06.1943 |
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Date of Appointment : |
27.09.1988 |
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Name : |
Mr. Manohar Ramchandra Borkar |
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Designation : |
Director |
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Address : |
Sheetal Apartments, Flat No. 3, 850 BMCC Road, Pune – 411 004, Maharashtra, India |
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Date of Birth/Age : |
13.07.1938 |
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Date of Appointment : |
12.10.1992 |
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Name : |
Mr. Balchandra Kashinath Khare |
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Designation : |
Director |
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Address : |
17/18, Shiv Sagar, 19, Worli Sea Face, Mumbai – 400 025, Maharashtra, India |
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Date of Birth/Age : |
13.09.1927 |
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Date of Appointment : |
27.08.1993 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 26.08.2004 :
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Names of Shareholders |
No. of Shares |
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Mr. Cyprus Soli Poonawalla |
50,535 |
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Mr. Zavaray Soli Poonawalla |
24725 |
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Poonnawalla Investments & Industries Private Limited |
403250 |
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Mr. Adyar Cyprus Poonawalla |
9,893 |
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Fortune International Private Limited |
4 |
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Corprint Investments Private Limited |
4 |
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Adurjee & Bros Private Limited |
4 |
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Cyrus Soli Poonawalla and Villoo Cyrus Poonawalla |
100 |
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Cyrus Soli Poonawalia and Adar Cyrus Poonawalla |
6000 |
LIST OF ALLOTTEES
As on 23.08.2006
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Names of allottee in full |
No. of Shares
allotted (Equity) |
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Mr. A.C Poonawalla Jointly With Dr. C S Poonawalla |
21333 |
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Mr. A.C Poonawalla |
1200 |
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Dr. C S Poonawalla |
70595 |
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Mrs. V.C Poonawalla |
827 |
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Mr. Z.S Poonawalla Jointly With Mr. Yohan Poonawalla |
4945 |
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M/s Fortune International Private Limited |
1 |
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M/s Adurjee and Bros. Private Limited |
1 |
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M/s Corpint Investment Private Limited |
1 |
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Total : |
98903 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the business as manufacturing,
buying, selling, importing, exporting and act as distributors, agents and
stockiest in all types of vaccines using the routes of genetic engineering,
animal cell culture, serum or any other methodology / process developed from
time to time. To deal in chemicals and pharmaceutical products plants,
medicines, drugs, acids, other biological products, pharmaceutical
formulations in the form of injections, tablets, capsules, ointments,
suppositories, ophthalmic and liquid oral preparation, cosmetics, veterinary
and dental preparation, food products, essential oils, crude drug family
planning devices and medicaments, mellic anhydrade |
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Products : |
Item Code No. Product Description 300220.19 Human Vaccine 300220.08 Preventive Product 300220.11 Preventive Products
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Exports : |
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Products : |
Some |
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Countries : |
US, Europe, Nigeria. |
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Imports : |
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Products : |
Raw Material |
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Countries : |
Germany, Brazil |
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Terms : |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Particulars – I. DTA UNIT |
Unit |
Installed Capacity 1999-2000 |
Actual Production |
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Preventive Products |
Million Doses |
562.50 |
439.52 |
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Curative Products |
Million Doses |
17.50 |
1.10 |
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Particulars – II. EQU UNIT |
Unit |
Licensed capacity |
Installed Capacity 1999-2000 |
Actual Production |
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Preventive Products Curative Products |
Million Doses |
300.00 |
140.00 |
12.91 |
GENERAL
INFORMATION
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No. of Employees : |
600 |
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Bankers : |
Ř Bank of Baroda Ř Corporation Bank Ř The Hongkong & Shanghai Banking Corporation Ltd Ř The Shamrao Vithal Co-op Bank Ltd. Ř Bank of India, 8-A, Dr. Coyaji Road, Pune - 411 001, Maharashtra, India Ř Union Bank of India, 284, M. G. Road, Pune - 411 001, Maharashtra, India Ř American Express Bank Limited, Oriental Building, 36, Dr. D. N. Road, Mumbai - 400 001, Maharashtra, India (All the bank loans have been fully satisfied in the month of June 2002) |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Patki and Soman Chartered Accountant |
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Address : |
639, Sadashiv Peth, Kumthekar Road, Pune – 411 030, Maharashtra. |
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Associates/Subsidiaries : |
[Manufacturers of pharmaceutical products] SUBSIDIARIES
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity shares |
Rs. 100 each |
Rs. 500.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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593420 |
Equity shares |
Rs. 100 each |
Rs. 59.342
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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59.342 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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6477.126 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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6536.468 |
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LOAN FUNDS |
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1] Secured Loans |
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347.325 |
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2] Unsecured Loans |
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1499.548 |
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TOTAL BORROWING |
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1846.873 |
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DEFERRED TAX LIABILITIES |
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30.191 |
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TOTAL |
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8413.532 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1896.310 |
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Capital work-in-progress |
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2407.930 |
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INVESTMENT |
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1632.408 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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1309.392 |
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Sundry Debtors |
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2291.052 |
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Cash & Bank Balances |
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891.439 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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393.186 |
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Total
Current Assets |
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4885.069 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1944.382 |
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Provisions |
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463.803 |
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Total
Current Liabilities |
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2408.185 |
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Net Current Assets |
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2476.884 |
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MISCELLANEOUS EXPENSES |
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|
0.000 |
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TOTAL |
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8413.532 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
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|
31.03.2007 |
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Sales Turnover |
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8546.649 |
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Other Income |
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988.961 |
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Total Income |
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9535.610 |
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Profit/(Loss) Before Tax |
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3788.363 |
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Provision for Taxation |
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|
268.195 |
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Profit/(Loss) After Tax |
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3520.168 |
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Expenditures : |
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Raw Material Consumed |
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2160.987 |
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Salaries, Wages, Bonus, etc. |
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|
701.739 |
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Managerial Remuneration |
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|
339.576 |
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Payment to Auditors |
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|
2.225 |
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Interest |
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|
142.880 |
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Insurance Expenses |
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|
57.188 |
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Power & Fuel |
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|
204.836 |
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Depreciation & Amortization |
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|
256.896 |
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Other Expenditure |
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|
1880.920 |
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Total Expenditure |
|
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5747.247 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2007 |
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PAT / Total Income |
(%) |
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36.92 |
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Net Profit Margin (PBT/Sales) |
(%) |
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44.33 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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77.54 |
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Return on Investment (ROI) (PBT/Networth) |
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0.58 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.37 |
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Current Ratio (Current Asset/Current Liability) |
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|
2.028 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
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Presented By |
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1) Date and description of instrument creating the change |
30.04.1996 Deed
of Hypothecation executed by company in favour of export- Import bank
of India, (EXIM Bank). A certified copy of the said deed of Hypothecation is
enclosed . |
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2) Amount secured by the charge/amount owing on the securities of charge |
EXIM Bank Indian rupee term loan not exceeding Rs.
15.000 millions. ii] Foreign
currency term loan not exceeding USD 1000000.00 (USD one million only)
approx. equivalent Rs. 35.000 millions Total amount
secured Rs. 50.000 millions (Rupees five crores only) Together with
interest commitment charge liquidated damages, costs, expenses and all other
monies payable by the company EXIM Banking terms of loan agreement dated
29.04.1996 and deed of Hypothecation dated 30.04.1996 entered into between
the company and the EXIM Bank |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Short particular of moveable properties : The whole of moveable properties of the Borrower
comprising all plant, machinery, equipment and other assets acquired by the company under the Production
Equipment Finance Scheme of EXIM Bank, together with all spares, tools and
accessories whether installed or not and whether now lying loose or in cases
or which are now lying or stored in or about the borrower’s factories, premises
and godowns or wherever else the same may be or be held by any party to the
order or disposition of the borrower or in the course of transit or on high
seas or on order, or delivery, howsoever and whosesoever in the possession of
the borrower either by way of substitution or addition. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
(a) Facilities
Covered: Facility Amount (million) 1. Rupee term Loan
Rs. 15.000 millions 2.0 Foreign Currency Term Loan not Exceeding USD 1000000.00 Approx Equivalent to Rs, 35.000 millions
Total Rs. 50.000
millions (b) the charge operates as security for the due repayment of the
Borrower to EXIM bank of its loan together with interest, liquidated
damages,commitment charges,cost, charges, expenses and all other monies
payable by the company to EXIM Bank in terms of the said Agreement. (c) The security created under the said deed of Hypothecation shall be
continuing security. |
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5) Name and Address and description of the person entitled to the charge. |
Export – Import
Bank of India Center one – 21st
Floor World Trade Center, Cuffe Parade, Bombay-400 005. |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
Website Details :
Subject has established it’s self as the world’s largest producer of
Measles and DTP group of vaccines. It is estimated that two out of every three
children immunized in the world is vaccinated by a vaccine manufactured by
Serum Institute, in fact, our range of products have been used in 140 countries
across the globe.
Subject was founded in 1966 with
the aim of manufacturing life- saving immuno- biologicals , which were in
shortage in the country and imported at high prices. Thereafter, several life- saving biologicals were manufactured
at prices affordable to the common man and in abundance, with the result that
the country was made self- sufficient for Tetanus Anti- toxin and Anti – snake
Venom Serum, Followed by DTP (Diphtheria, Tetanus and Pertussis ) group of
Vaccines and then later on MMR (Measles, Mumps and Rubella) group of vaccines.
The Philanthropic Philosophy of the company still not only exists but
has been proliferated to bring down the prices of newer vaccines such as
hepatitis – B Vaccine, Rabies vaccine, Combination Vaccine etc. so that not
only Indian’s, but the entire under- privileged form birth onwards.
Subject have recently set up Serum Bio Pharma Park, Indian’s first biotech Special Economic Zone (SEZ).
The park is adjoining serum institute’s existing manufacturing unit and is a sector- specific SEZ meant for
biotechnology and pharmaceutical products. The SEZ will allow Serum Institute
of India to avail various tax benefits such as income tax, import duty on
capital goods etc. this as encouraged a lot of foreign companies to partner
with Serum Institute of India to avail and share these benefits.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.21 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.67.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
79 |
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 |
|