MIRA
INFORM REPORT
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Report Date : |
17.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
LINCOLN PHARMACEUTICALS LIMITED |
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Registered Office : |
2nd Floor,
Nirav Complex, Opposite Navrang High School, Navrangpura, Ahmedabad – 380014,
Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.01.1995 |
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Com. Reg. No.: |
04-24288 |
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CIN No.: [Company
Identification No.] |
L24230GJ1995PLC024288 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHML00095E |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on
Stock Exchange |
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Line of Business : |
Manufacturer and Exporter of Pharmaceuticals Products |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track. Financial position of the company is satisfactory. Trade relations are
fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Ms. Namita |
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Designation : |
Account Assistant |
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Date : |
08.07.2008 |
LOCATIONS
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Registered Office : |
2nd Floor,
Nirav Complex, Opposite Navrang High School, Navrangpura, Ahmedabad – 380014,
Gujarat, India |
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Tel. No.: |
91-79-27681895 / 7452857/
96 / 7491895 / 7453708 / 27682347 / 27680297 / 27682704 / 27680897 / 27682708 |
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Fax No.: |
91-79-7454644 /
7436735 / 27682644 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory : |
·
Trimul
Estate, Khatraj Taluk Kalol, Gandhinagar – 382 721, Gujarat, India ·
Naroda,
Gujarat, India ·
10/12/13, Unit
2, Trimual Estate, After Vadasagar Village, Khatraj Chokdi, Taluka Kalol,
District Mehsana, Ahmedabad, Gujarat, India Tel.
No. - 91-792-7491895 / 2764-281339
/ 81341 / 81010 / 81340 Email : khatraj@lincolnpharma.com |
DIRECTORS
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Name : |
Mr. Kishor M Shah |
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Designation : |
Chairman |
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Profile : |
Based at Nairobi, he takes care of the sales and distribution network in African countries. He also manages international liaison Joint Ventures and helps in enhancing the global presence and positioning. |
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Name : |
Mr. Rajnikant
Patel |
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Designation : |
Joint Managing
Director |
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Qualification : |
B. Pharma |
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Profile : |
He is the Joint Managing Director and a young entrepreneur in setting up this company. He has 25 years of experience in the pharmaceutical industry and looks after the manufacturing and marketing. |
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Name : |
Mr. Hasmukh I
Patel |
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Designation : |
Whole Time
Director |
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Qualification : |
B.Sc. |
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Profile : |
He is a full time Director, managing the entire gamut of domestic marketing as well as the entire sales distribution system of the company. |
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Name : |
Mr. Ishwarbhai A
Patel |
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Designation : |
Director |
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Name : |
Mr. Maganbhai R
Patel |
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Designation : |
Director |
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Name : |
Mr. Arvind G
Patel |
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Designation : |
Director |
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Name : |
Mr. Mihir V Patel |
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Designation : |
Director |
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Name : |
Mr. Pirabhai
Suthar |
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Designation : |
Director |
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Name : |
Mr. Dhirendra V.
Shah |
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Designation : |
Director |
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Name : |
Mr. Mahendra G. Patel |
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Designation : |
Director |
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Qualification : |
B.A, LLB |
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Profile : |
He is a Chairman and Managing Director of the company, he has a varied experience with chemicals, steel, finance etc.. He handles corporate planning strategies, policies, corporate finance etc. |
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Name : |
Mr. Arvind G. Patel |
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Designation : |
Director |
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Qualification : |
B.E. |
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Profile : |
He is also looking after the export business of the company |
KEY EXECUTIVES
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Name : |
Mr. A K Patel |
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Designation : |
Company Secretary |
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KEY MEMBERS :- |
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Name : |
Mr. K P Sompura |
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Designation : |
Finance |
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E-Mail : |
sompurakp@lincolnpharma.com |
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Name : |
Mr. Shivpuri |
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Designation : |
Marketing |
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E-Mail : |
mkt@lincolnpharma.com |
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Name : |
Dr. Sanjay Agrawal |
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Designation : |
Medical Services |
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E-Mail : |
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Name : |
Mr. Anand Patel |
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Designation : |
Purchase |
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E-Mail : |
anandpatel@lincolnpharma.com |
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Name : |
Mr. A. C Shah |
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Designation : |
Quality Control |
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E-Mail : |
arunshah@lincolnpharma.com |
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Name : |
Mr. Mahesh Patel |
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Designation : |
Plant
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E-Mail : |
mmpatel@lincolnpharma.com |
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Name : |
Mr. Dhaval Gandhi |
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Designation : |
I
T |
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E-Mail : |
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Name : |
Mr. Antony Periera |
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Designation : |
H
R D |
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E-Mail : |
antonyperiera@lincolnpharma.com |
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Name : |
Mr. Vijay Javiya |
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Designation : |
Export |
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E-Mail : |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Pharmaceuticals Products |
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Exports : |
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Countries : |
Nilgiri, Dhaka, Tanzania |
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Imports : |
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Countries : |
China, Indonesia |
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Terms : |
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Selling : |
L/C, Credit (30 days) |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Customers : |
Wholesalers, Stockists |
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No. of Employees : |
900 (800 in Office and 100 in Factory) |
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Bankers : |
·
State Bank
of Saurashtra , IFB ·
State Bank
of Saurashtra, Navrangpura, Ahmedabad, Gujarat , India |
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Facilities : |
From State Bank of
Saurashtra, IFB W C, Cash Credit and
Term Loan - Rs. 34.500 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rajendra N Shah and Company Chartered Accountants |
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Associates/Subsidiaries : |
·
Lincoln
Parenterals Private Limited -
Manufacturer
of Parenterals ·
Gujarat
Distributors -
Selling and
Distributing Pharmaceutical Products. ·
Down Town
Finance Private Limited - Financial Activities ·
Down Town
Travels -
Tours and
Travels Business ·
Shelavi
Paper Mills -
Manufacturer
of Paper ·
Shubh
Developers - Real Estate Business. |
CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7610800 |
Equity Shares |
Rs. 10/- each |
Rs.76.108
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
76.108 |
76.108 |
60.008 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
209.663 |
190.277 |
135.303 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
285.771 |
266.385 |
195.311 |
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LOAN FUNDS |
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1] Secured Loans |
89.539 |
84.841 |
61.924 |
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2] Unsecured Loans |
45.163 |
46.746 |
35.137 |
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TOTAL BORROWING |
134.702 |
131.587 |
97.061 |
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DEFERRED TAX LIABILITIES |
14.921 |
14.968 |
17.828 |
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TOTAL |
435.394 |
412.940 |
310.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
85.840 |
82.364 |
83.398 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.020 |
0.020 |
0.020 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
125.022
|
106.684 |
80.449 |
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Sundry Debtors |
190.346
|
180.158 |
160.184 |
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Cash & Bank Balances |
20.540
|
15.708 |
12.795 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
129.732
|
135.586 |
65.163 |
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Total
Current Assets |
465.640
|
438.136 |
318.591 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
77.400 |
82.874 |
77.103 |
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Provisions |
38.706 |
24.706 |
14.706 |
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Total
Current Liabilities |
116.106
|
107.580 |
91.809 |
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Net Current Assets |
349.534
|
330.556 |
226.782 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
435.394 |
412.940 |
310.200 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
633.939 |
564.769 |
379.057 |
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Other Income |
0.000 |
4.544 |
0.000 |
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Total Income |
633.939 |
569.313 |
379.057 |
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Profit/(Loss) Before Tax |
44.022 |
33.081 |
20.618 |
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Provision for Taxation |
13.546 |
8.567 |
5.324 |
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Profit/(Loss) After Tax |
30.476 |
24.514 |
15.294 |
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Expenditures : |
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Manufacturing Expenses |
30.405 |
24.809 |
24.064 |
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Administrative Expenses |
123.985 |
101.878 |
21.261 |
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Raw Material Consumed |
202.653 |
214.267 |
216.795 |
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Purchases made for re-sale |
175.260 |
154.804 |
66.419 |
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Increase/(Decrease) in Finished Goods |
[20.662] |
[26.484] |
[8.940] |
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Personnel Expenses |
55.802 |
38.752 |
22.170 |
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Financial Charges |
12.575 |
10.581 |
6.249 |
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Central Excise duty |
4.320 |
12.432 |
5.464 |
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Depreciation & Amortization |
5.579 |
5.193 |
4.959 |
|
Total Expenditure |
589.917 |
536.232 |
358.439 |
|
SUMMARISED RESULTS
|
Year |
|
|
31.03.2008 |
|
Type
|
|
|
Full
Year |
|
Sales Turnover |
|
|
871.200 |
|
Other Income |
|
|
10.100 |
|
Total Income |
|
|
881.300 |
|
Total Expenditure |
|
|
793.200 |
|
Operating Profit |
|
|
88.100 |
|
Interest |
|
|
13.600 |
|
Gross Profit |
|
|
74.500 |
|
Depreciation |
|
|
6.000 |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
68.500 |
|
Dividend (%) |
|
|
0.000 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.48 |
0.50 |
0.48 |
|
Long Term Debt-Equity Ratio |
0.14 |
0.15 |
0.15 |
|
Current Ratio |
2.04 |
1.93 |
1.74 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
5.18 |
4.85 |
3.36 |
|
Inventory |
5.47 |
6.04 |
5.00 |
|
Debtors |
3.42 |
3.32 |
2.51 |
|
Interest Cover Ratio |
4.49 |
4.12 |
4.32 |
|
Operating Profit Margin(%) |
9.81 |
8.66 |
8.39 |
|
Profit Before Interest And Tax Margin(%) |
8.93 |
7.74 |
7.07 |
|
Cash Profit Margin(%) |
5.69 |
5.26 |
5.35 |
|
Adjusted Net Profit Margin(%) |
4.81 |
4.34 |
4.04 |
|
Return On Capital Employed(%) |
13.83 |
12.66 |
9.55 |
|
Return On Net Worth(%) |
11.05 |
10.61 |
8.07 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was promoted by Mahendra G Patel, Rajnikant G Patel
and Hasmukhbhai I Patel, as a partnership firm in Jan 1979 to manufacture
pharmaceutical formulations was converted into a public limited company in Jan.
'95. All the assets and business of the erstwhile partnership was transferred
to the company.
The company was carrying on its business by getting its products manufactured
on loan licence basis from 1979 to 1982. It then set up its own manufacturing
facilities at Naroda, Gujarat for manufacturing tablets, capsules, liquid and
powder syrups and, ointments. It is also getting its products manufactured on
loan licence basis from other manufacturers to meet the demand of small volume
parenterals.
The company has set up a modern formulation manufacturing plant at Khatraj
(Mehsana district), Gujarat, to manufacture small volume parenterals like dry
powder injectables, liquid vial, liquid ampoules and eye drops and expand its
production capacities of the existing products. It is also in the process of
establishing a fully equipped laboratory to undertake in-house testing of its
products for better quality control and R and D. It came out with a public
issue in Feb.'96 to part-finance its project.
In 2000-01 the company has been granted ISO 9002 certificate and WHO
registration.
INDUSTRY
The pharmaceutical
industry is knowledge driven industry and is heavily dependent on Research and
Development for new products and growth. However, basic research (discovering
new molecules) is a time consuming and expensive process and is thus, dominated
by large global multinationals.
In the global
pharmaceutical market, western markets are the largest and fastest growing due
to introduction of newer molecules at high prices. A well-established
reimbursement and insurance system implies that per capita drug expenditure is
abnormally high in Western Countries as compared to the developing nations.
The Indian
pharmaceutical industry is highly fragmented, but has grown rapidly due to the
friendly patent regime and low cost manufacturing structure. Intense
competition, high volumes and low prices characterize the Indian domestic
market. Exports have been rising at around 30% CAGR over last five years.
The Drug Pricing
Control Order (DPCO) has severely restricted profitability and hence
innovation. However, the government has been relaxing controls in a slow but
progressive manner. The span of control of DPCO has come down from 90% in 1980s
to 50% in 1995 and is likely to be further reduced as per the latest proposed
changes.
In the domestic
market, old and mature categories like anti- infectives, vitamins, analgesics
are degrowing or stagnating while new lifestyle categories like cardiovascular,
CNS, anti diabetic are growing at double-digit rates. The growth of a company
in the domestic market is thus critically dependent on its therapeutic
presence.
BUSINESS
Subject is engaged
in manufacturing of all the major dosage forms like tablets, capsules,
injectables, syrups, ointments, etc.
Subject is
manufacturing and marketing throughout India and also exporting products to various
countries.
Subject provides
more than 200 formulations. The product
range includes almost all therapeutic
segments like Paediatrics, Gynaecology, Psychiatric, Anti T.B., Antibiotics, Appetite,
Stimulant, Antidepressant, Anti Ulcer, Analgesic, Cough and Cold, etc.
recognition of in-house r and d unit
The Department of
Scientific and Industrial Research, Ministry of Science and Technology,
Government of India, has issued recognition of In-house R and D unit for the
Khatraj unit of the company.
Subject has
obtained registration for about 100 of its pharmaceutical formulations in more
than 10 African countries and also other countries like Kenya, Uganda, Nigeria,
Germany, Sri Lanka, UK, Tanzania, Zimbabwe, etc.
Subject has a Pharmaceutical
Formulation Manufacturing Unit having its own manufacturing facilities. The company’s plants are designed as per
WHO-GMP norms and strictly following GMP Parameters.
TRADE REFERENCES:-
·
Sword and
Shield, Ahmedabad – 380 014, Gujarat, India
·
Devi Pharma,
Ahmedabad – 380 014, Gujarat, India
WEBSITE DETAILS :-
Company Profile :
The company is a Public Limited Company with a large shareholder base
including members of the medical fraternity. It has its own manufacturing
facilities, covering all the major dosage forms, like Tablets, Capsules,
Injectables, Syrups, Ointments, etc. Its present manufacturing activities are
located near Ahmedabad. The plant spreads across 30,000 sq. mtrs. There are
three different buildings for Tablets, Capsules and Injectables and also a
separate building for Quality Control. An ultramodern laboratory with state of
the art equipments ensures in-house quality assurance of each of the products.
The products are designed for all therapeutic segments with a special emphasis
on Gynecological and Orthopedic specialties.
Manufacturing facilities at the company are in accordance with WHO-GMP
standards. Also, subject is accredited with GMP and ISO 9002 certification.
Certification
·
WHO GMP (LPL)
·
WHO GMP (LPPL)
·
R and D unit
·
ISO-9002
·
EXPORT HOUSE
Group
of Companies
Lincoln
Parenterals Private Limited.
The company manufactures parenterals and also undertaking contract
manufacturing for other companies including Subject.
Karnavati Distributors
Private Limited.
The company is distributing goods to all India distributors; also
involved in marketing efforts on behalf of Company.
Down Town Travels
The firm is engaged in tours and travels business. They are organizing
conducted tours for Gujarat and other parts of India and they have arrangement
of sophisticated vehicles for traveling 3 persons to 50 persons. They have more
than 50 vehicles for their travel purpose. Provides efficient and cost
effective services.
Shelavi
Paper Mills
This company has a paper manufacturing unit where very good quality
craft papers and all range of papers are manufactured.
Location of the
Plant
The Plant is situated 20 kms away from the
Ahmedabad railway station and from the Ahmedabad Airport. The distance between
the Corporate Office and the Plant is approximately 20 kms.
International
Indian Pharmaceutical Industry is growing fast as far as export market
is concerned, during last five years, there is a tremendous growth in the
pharmaceutical industry. Subject has made successful achievement in overseas
network for its formulations.
Subject has obtained drug registration for about 100 of its pharmaceuticals
formulations in more than 10 African as well as in other countries too.
·
Kenya
·
Tanzania
·
Zimbabwe
·
R.D. Congo
(Zaire)
·
Uganda
·
Nigeria
·
Sri Lanka
·
United Kingdom
·
Zambia
·
Republic of
Yemen
·
Ghana
·
Ethiopia
·
Mauritius
·
Thailand
International Products
Their future planning is to expand business in following areas. They
invite the interested parties from following countries who can represent their
company and can explore business.
· Carribean Islands
· Central America
· Latin America
Their plant facilities is certified by WHO GMP authorities as well as by
ISO 9002. They manufacture neutral label products for International Pharma
Marketing companies.
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. 43.17 |
|
UK Pound |
1 |
Rs. 86.46 |
|
Euro |
1 |
Rs. 68.68 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|