MIRA
INFORM REPORT
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Report Date : |
07.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
ISHITA DRUGS AND INDUSTRIES LIMITED |
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Registered Office : |
Survey No.179/1, Vasna – Iyavataluka Sanand, Ahmedabad – 382210,
Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.02.1992 |
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Com. Reg. No.: |
017054 |
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CIN No.: [Company
Identification No.] |
L24231GJ1992PLC017054 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMI00085B |
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PAN No.: [Permanent
Account No.] |
AAACI3630B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacture of Bulk Actives and Salts, Drug Intermediates,
Fine Chemicals, Food Additives, Specialty/ Performance Chemicals, Pharmaceutical
Formulations, Healthcare Products, Dyes and Dye Intermediates. |
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 160000 |
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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. Its
profitability is improving and the company has been successful in wiping – off
all its previous losses. Trade relations are fair. Payments are reported as
slow but correct. The company can be considered good for small to mediocre business
dealings. |
LOCATIONS
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Registered Office/ Factory : |
Survey No.179/1, Vasna – Iyavataluka Sanand, Ahmedabad – 382210,
Gujarat, India |
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Tel. No.: |
91-2717-284244/ 284246 |
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E-Mail : |
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Website : |
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Corporate Office : |
11, Valmik Complex, Near Parimal Garden, C. G. Road, Ahmedabad – 380006, Gujarat, India |
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Tel. No.: |
91-79-26468353/ 26467886/ 26403214/ 30928120 |
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Fax No.: |
91-79-26404961 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Jagdish Agarwal |
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Designation : |
Chairman Cum Managing Director |
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Name : |
Mr. P. R. Rastogi |
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Designation : |
Director |
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Name : |
Mr. Govind Gupta |
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Designation : |
Director |
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Name : |
Mr. S. K. Agarwal |
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Designation : |
Director |
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Name : |
Mrs. Abha Agarwal |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Bulk Actives and Salts, Drug Intermediates,
Fine Chemicals, Food Additives, Specialty/ Performance Chemicals, Pharmaceutical
Formulations, Healthcare Products, Dyes and Dye Intermediates. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Actual
Production |
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Bulk Drugs |
MT |
80.833 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
Unsecured
Loans As on 31.03.2006 Corporate Loans Guaranteed By Managing Director Rs.0.306 Million |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Premchand and Associates Chartered Accountant |
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Address : |
Ahmedabad, Gujarat, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3500000 |
Equity Shares |
Rs.10/- each |
Rs.35.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2990300 |
Equity Shares |
Rs.10/- each |
Rs.29.903 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 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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29.903 |
29.903 |
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2] Share Application Money |
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0.164 |
0.164 |
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3] Reserves & Surplus |
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1.825 |
1.500 |
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4] (Accumulated Losses) |
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0.000 |
(2.257) |
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NETWORTH |
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31.892 |
29.310 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.306 |
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TOTAL BORROWING |
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0.000 |
0.306 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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31.892 |
29.616 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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12.030 |
11.524 |
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Capital work-in-progress |
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0.637 |
2.493 |
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INVESTMENT |
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1.583 |
1.035 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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4.435
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6.698 |
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Sundry Debtors |
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10.614
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8.448 |
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Cash & Bank Balances |
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5.687
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1.743 |
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Other Current Assets |
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0.000
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0.000 |
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Loans & Advances |
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1.697
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2.550 |
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Total
Current Assets |
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22.433
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19.439 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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4.791
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4.875 |
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Provisions |
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0.000
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0.000 |
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Total
Current Liabilities |
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4.791
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4.875 |
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Net Current Assets |
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17.642
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14.564 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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31.892 |
29.616 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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35.732 |
29.407 |
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Other Income |
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0.454 |
1.031 |
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Total Income |
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36.186 |
30.438 |
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Profit/(Loss) Before Tax |
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2.486 |
1.506 |
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Provision for Taxation |
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0.024 |
0.145 |
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Profit/(Loss) After Tax |
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2.462 |
1.361 |
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Export Value |
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5.878 |
11.265 |
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Expenditures : |
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Materials and Inventory Adjustments |
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21.717 |
17.329 |
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Personnel Cost |
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2.276 |
2.349 |
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Manufacturing Expenses |
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7.021 |
6.817 |
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Financial Charge |
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0.291 |
0.243 |
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Depreciation & Amortization |
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2.395 |
2.194 |
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Other Expenditure |
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0.000 |
0.000 |
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Total Expenditure |
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33.700 |
28.932 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
31.12.2007 3rd Quarter |
31.03.2008 4th Quarter |
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Sales Turnover |
12.900 |
9.100 |
8.800 |
9.700 |
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Other Income |
0.100 |
0.200 |
0.100 |
0.00 |
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Total Income |
13.000 |
9.300 |
8.900 |
9.700 |
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Total Expenditure |
12.100 |
7.800 |
7.400 |
7.800 |
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Operating Profile |
0.900 |
1.500 |
1.500 |
1.900 |
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Interests |
0.000 |
0.000 |
0.100 |
0.00 |
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Gross Profit |
0.900 |
1.500 |
1.400 |
1.900 |
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Depreciation |
0.600 |
0.600 |
0.600 |
0.600 |
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Tax |
0.000 |
0.000 |
0.000 |
0.000 |
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Reported PAT |
0.300 |
0.900 |
0.800 |
1.300 |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
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0.00 |
0.01
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Long Term Debt-Equity Shares |
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0.00 |
0.01
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Current Ratio |
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4.35 |
4.05
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TURNOVER RATIOS |
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Fixed Assets |
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1.27 |
1.09
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Inventory |
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6.49 |
6.32
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Debtors |
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3.74 |
4.59
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Interests Cover Ratio |
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9.33 |
7.00
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Operating Profit Margin (%) |
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14.57 |
12.24
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Profit Before Interests and Tax Margin (%) |
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7.84 |
4.76
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Cash Profit Margin (%) |
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13.73 |
11.22
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Adjusted Net Profit Margin (%) |
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7.00 |
3.74
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Return On Capital Employed (%) |
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8.78 |
4.38
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Return On Net Worth (%) |
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7.87 |
3.48
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LOCAL AGENCY
FURTHER INFORMATION
Business
Operations:
The company has maintained a steady growth in the year. The management also
continued its focus on exports and the company was able to maintain the export
levels of the past year during the year.
The total income of the company increased to Rs.36.186 Millions (PY
Rs.30.438 Millions) the company has stared some trading operations mainly to
cater to requirement of existing overseas and domestic customers.
The company was able to obtain better realizations for its major
products, which led to an increase in the margins of the company. Consequently,
the gross margins of the company improved to 14.29% (PY 12.95%).
There also has been a healthy increased in the net profit of the company
to Rs.2.463 Millions (PY Rs.1.361 Millions). This is despite an increased in
the total depreciation (From Rs.2.194 Millions in the PY to Rs.2.393 Millions),
due to capitalization of various expenditure incurred to upgrade the
manufacturing facilities.
They are happy to report that during the year the company has been able
to completely wipe out the carry forward losses.
They are also pleased to inform that Subject is now a registered
trademark of the company.
Future Outlook:
The management has decided to implement an expansion project at the
plant, which is already underway. The company has tied up with a bank for providing
the necessary funds by way of working capital/ term loans. On completion of the
project, the company would have enhanced capacity available for manufacturing
of newer products.
The company intends to continue its focus on export markets. To this
end, the company intends to file DMFs/ registered its major products in various
countries. The company made a beginning by registered one of its products in
Kazakhstan. The management to file at least 2 DMFs in the current year. This
step would open bigger export opportunity for the company’s products.
Fixed Assets:
- Factory Land
- Plant and Machinery
- Laboratory Equipment
- Cylinders
- Effluent Treatment Plant
- Factory Building
- Office Building
- Furniture and Fixture
- Office Equipment
- Computers
- Vehicles
Website Details:
Profile:
The
Group...
Subject is the flagship company of the 'Ishita' Group, which
is a respected member of the Indian Business community for more than 3 decades.
The Group's interests encompass manufacture of a large number of Bulk Actives
and their salts, Drug Intermediates, Fine Chemicals, Food additives, Specialty/
Performance Chemicals, Pharmaceutical formulations, healthcare products, dyes
and dye intermediates, distribution of financial products and other businesses.
The Ishita Group derives its key strengths from its strong ethical practices
and moral values in business commitments.
The
Company...
Subject is a public limited company, listed on the local
stock exchanges (BSE and ASE) in India. Incorporated in 1992, the company has
earned a reputation as a "high quality manufacturer" in a very short
time.
Subject is engaged in the manufacture of various Active
Pharma Ingredients (bulk actives and their salts), bulk drug intermediates,
excipients and fine chemicals. It has a state-of-art manufacturing facility, in
terms of chemical synthesis, quality control and environmental safety.
The
People…
Subject is headed by Mr.
Jagdish Agrawal, Managing Director, who is a M.S (Chemical Technology)
from University of Florida, USA. He has more than 30 years experience in the
chemical and pharmaceutical industry and is widely acknowledged as an expert in
his field. He has earlier been associated with very successful ventures in the
reactive dye industry and in the bulk drug industry.
The Head of Operations is Mr. Kiran Rindani, M. Tech (Chemical Technology) from U.D.C.T.,
Mumbai University, and Mumbai. He has about 25 years of experience and has
worked with Lupin Laboratories, Unimark etc. before joining this company.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.43.21 |
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UK Pound |
1 |
Rs.85.72 |
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Euro |
1 |
Rs.67.92 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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38 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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