MIRA INFORM REPORT

 

 

 

Report Date :

21.07.2008

 

IDENTIFICATION DETAILS

 

Name :

K A MALLE PHARMACEUTICALS LIMITED

 

 

Registered Office :

2, Krishna Dham, L. S. Raheja Marg, Raheja Township, Malad (East), Mumbai – 400 097, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

11.05.1982

 

 

Com. Reg. No.:

11-27110

 

 

CIN No.:

[Company Identification No.]

U70101MH1982PLC027110

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK04102A

 

 

Legal Form :

A closely held public limited liability company

 

 

Line of Business :

Manufacturer of Pharmaceutical Bulk, Drug Intermediates and Specialty Chemicals.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 220000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company meeting its normal commitments timeously. Trade relations are fair. Business is active. General financial position is good.

 

The company can be considered good for normal business dealings.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Vitthal Chauhan

Designation :

Export Manager

Date :

16.07.2008

 

 

LOCATIONS

 

Registered Office :

2, Krishna Dham, L. S. Raheja Marg, Raheja Township, Malad (East), Mumbai – 400 097, Maharashtra, India

Tel. No.:

91-22-28730154 / 5556

E-Mail :

kamalie@vsnl.com

Website :

www.kamalie.com

Area :

1000 Sq. ft.

Location :

Rented

 

 

Head Office :

1504, Maker Chambers V, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-22872426 / 2872424 / 2835226 / 2826786

Fax No.:

91-22-22852765

 

 

Factory  :

6005, GIDC Estate, Ankleshwar – 393 002, District Bharuch, Gujarat, India

Tel. No.:

91-2646 – 24114 / 22808 (R) 50781

Fax No.:

91-2646-38475

Mobile No:

91-9824135885

 

 

DIRECTORS

 

Name :

Mr. Farokh Messman

Designation :

Managing Director

Address :

21/C, Meherzin 109, Wood House Road, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

16.12.1944

Date of Appointment :

11.05.1982

Date of Ceasing :

08.02.2008

 

 

Name :

Mrs. Kamal Messman

Designation :

Whole Time Director

Address :

21/C, Meherzin 109, Wood House Road, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

19.11.1948

Date of Appointment :

11.05.1982

Date of Ceasing :

08.02.2008

 

 

Name :

Mr. Perin Pagdiwalla

Designation :

Director

Address :

Cusrow Baug, Sahid Bhagatsingh Road, Colaba, Mumbai – 400 005, Maharashtra, India

Date of Birth/Age :

18.09.1944

Date of Appointment :

10.12.2002

 

 

Name :

Mr. Radheshyam Bhomvat

Designation :

Director

Date of Birth/Age :

65 Years

 

 

Name :

Mr. Pramodh Poddar

Designation :

Director

Date of Birth/Age :

45 Years

 

 

Name :

Mrs. Shano Poddar

Designation :

Director

Date of Birth/Age :

35 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 30.09.2005)

Names of Shareholders

No. of Shares

Farokh Messman

164632

Kamal Messman

76968

Tina Messman

95200

Kainaz Messman

95200

Farokh Messman

240000

Farokh Messman and Kamal Messman

400000

Farokh Messman, Kamal Messman and Kainaz Messman

60000

Sunil Zaveri

52980

Divya Zaveri

13500

Sunil Zaveri and Divya Zaveri

16817

Divya Zaveri and Sunil Zaveri

16817

 

 

Total

1232114

 

No. of Preference Shareholders

 

Names of Shareholders

No. of Shares

Kirit Merchant

85000

Sucheta Merchant

65000

Bhavik Merchant

50000

Usha Setia

40000

Rejendra Setia

40000

Shailesh Shukla

4000

Kamini Shukla

5000

Sumantrail Shukla

11000

 

 

Total

300000

 

Equity shares Breakup (percentage of total equity)

(As on 07.08.2007)

Category

Percentage

Foreign holdings (Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident indian(s) or Overseas corporate bodies or Others

8.00

Directors or relative of directors

92.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Pharmaceutical Bulk, Drug Intermediates and Specialty Chemicals.

 

 

Products :

Bulk Drugs

 

·         Mebendazole

·         Albendazole

·         Ricobendazole

 

 

Exports :

 

Countries :

80% in Europe

 

 

Imports :

 

Countries :

·         Europe

·         China

 

 

Terms :

 

Selling :

L/C, Cash, Credit (30 days / 60 days / 90 days)

 

 

Purchasing :

L/C, Cash, Credit (30 days / 60 days / 90 days)

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

475 (In Office 25 and In Factory 450)

 

 

Bankers :

Union Bank of India, Nariman Point

 

 

 

Banking Relations :

Satisfactory

 

 

Financial Institution :

Gujarat Industrial Investment Corporation Limited

Chinibhai Chambers, Ahram road, Ahmedabad – 380 009.

 

 

Auditors :

 

Name :

·         Charturvedi and Partners

Chartered Accountants

Address : 81, Mittal Chambers, 228, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

·         Shanker Shetty

Chartered Accountants

 

 

Associates/Subsidiaries :

Rahul Pharma

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1500000

Equity Shares

Rs.10/- each

Rs.15.000 millions

500000

Preference Shares

Rs.10/- each

Rs.5.000 millions

 

 

 

 

 

Total

 

Rs.20.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1232114

Equity Shares

Rs.10/- each

Rs.12.321 millions

300000

Preference Shares

Rs.10/- each

Rs.3.000 millions

 

 

 

 

 

Total

 

Rs.15.321 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

15.321

15.321

15.321

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

28.876

26.853

22.476

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

44.197

42.174

37.797

LOAN FUNDS

 

 

 

1] Secured Loans

26.200

32.935

16.571

2] Unsecured Loans

25.115

19.978

21.651

TOTAL BORROWING

51.315

52.913

38.222

DEFERRED TAX LIABILITIES

5.680

5.893

0.000

 

 

 

 

TOTAL

101.192

100.980

76.019

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

37.520

38.187

34.628

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.015

0.015

0.015

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
17.351

17.956

26.063

 

Sundry Debtors
40.635

37.950

27.442

 

Cash & Bank Balances
41.554

38.815

34.217

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
14.639

8.577

7.332

Total Current Assets
114.179

103.298

95.054

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
41.534

32.473

49.579

 

Provisions
8.988

8.047

4.099

Total Current Liabilities
50.522

40.520

53.678

Net Current Assets
63.657

62.778

41.376

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

101.192

100.980

76.019

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

183.870

175.629

152.392

Other Income

2.680

6.843

1.316

Total Income

186.550

182.472

153.798

 

 

 

 

Profit/(Loss) Before Tax

9.555

10.011

5.411

Provision for Taxation

3.731

3.246

4.077

Profit/(Loss) After Tax

5.824

6.765

1.334

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

109.888

102.005

97.391

 

Purchases made for re-sale

6.407

4.729

1.938

 

Consumption of stores and spares parts

3.723

4.110

0.000

 

Increase/(Decrease) in Finished Goods

0.890

7.555

0.000

 

Salaries, Wages, Bonus, etc.

12.562

12.134

11.496

 

Managerial Remuneration

0.016

0.016

0.000

 

Payment to Auditors

0.073

0.057

0.000

 

Interest

4.284

3.312

1.847

 

Insurance Expenses

0.319

0.280

0.229

 

Power & Fuel

9.318

9.108

0.000

 

Depreciation & Amortization

3.471

3.319

0.000

 

Other Expenditure

26.044

25.836

35.486

Total Expenditure

176.995

172.461

148.387

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
3.12

3.71

0.87

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
5.20

5.70

3.55

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
6.30

7.08

4.17

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.22

0.24

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.30

2.22

2.43

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.26

2.55

1.77

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The Register address of the company has been shifted from 1504, Maker Chamber V, Nariman Point, Mumbai – 400 021, Maharashtra, India to the present address with the effect from 08.02.2008.

 

Trade References :

 

·         Sun Pharma

·         Johnson and Johnson

·         Cipla

 

Form No. 8

 

Name of the company

K A MALLE PHARMACEUTICALS LIMITED

Presented By

Chief Adviser (Legal) GIIC Limited

3rd Floor, Natraj Chambers, Ashram Road, Ahmedabad – 380 009

1) Date and description of instrument creating the change

Deed of Principal Hypothecation dated 19th May, 1987. and made between K A Malie Pharmaceuticals Limited (therein and hereinafter called ‘The Company’) of the one part and Gujarat Industrial Investment Corporation Limited (therein and hereinafter called ‘GIIC’) pf the other part.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.6.500 millions

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

The whole of the movable properties of the company including the Company’s moveable plant and machinery, machinery spares, tools, accessories, furniture, fittings, fixtures, equipments, electrical installations erection vehicles and other moveable same and except book debts and current assets of the company’ and situate at Plot No. 6005, Ankleshwar Industrial Area, Ankleshwar, Dist. Bharuch in the State of Gujarat.

4) Gist of the terms and conditions and extent and operation of the charge.

The consideration of GIIC having agreed to lend and advance to the company the said loan of Rs.6.500 millions it was agreed inter alia as follows

 

  1. Agreement by the Company to reapy to GIDC the said loan of Rs.6.500 millions within a period of 8 years by 12 equal half yearly instalments of Rs.0.542 million each, such payments to be made on the 15th day of June or the 15th day of December immediately following after the expiry of 12 months from the date of disbursement of the first instalment of loan disbursed for the time being irrespective of the amount of the loan disbursed with interest at the rate not exceeding 4% per annum over the Bank rate, subject to a minimum of 14 per annum, with quarterly rests. Pending industrial Development Bank of India (IDBI) Refinance interest shall be charged at the rate of 16% per annum. In the event of non-availability of IDBI refinance interest shall be charged at the rate of 6% per annum over the Bank Rate minimum rate of Interest being 16% per annum.

 

  1. As security for due repayment to GIIC of all principal moneys, interest and all other moneys to GIIC the whole of the moveable properties of company including the Company’s Moveable plant and machinery, machinery spares, tools, accessories, furnitures, fittings, fixtures, equipments, electrical installation, erections, vehicles and other moveable (save except book debts ) and Current assets both present and future at Plot No. 6005 Ankeleshwar Industrial Area, Ankleshwar Dist. Bharuch, in the State of Gujarat short particulars whereof are given in the Annexure hereto.

 

  1. GIIC entitled to determine the amount to be advanced out of the loan of allow outstandings.

 

  1. Certain convenant on behalf of the company. Power of GIIC to inspect and value the goods and acceleration of debts in certain events, specified therein power of entry, insure, superintend and / or take charge of and / or to seize, recover, receive, appoint receiver and / or take possession of all or any of the said goods sell by public auction or private contract the said Goods in such manner as GIIC should think fit, etc.

 

  1. The Company to keep the said goods in good and marketable condition and insured as therein provided.

 

  1. The Company to maintain a margin of 32% on assets.

5) Name and Address and description of the person entitled to the charge.

Gujarat Industrial Investment Corporation Limited, Chinibhai Chambers, Ahram road, Ahmedabad – 380 009. An Industrial Investment Corporation established for the State of Gujarat.

6) Date  and brief description of instrument modifying the charge

Nil

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.

NIl

 

Web Details :

 

Subject is a manufacturer of Bulk Drugs, Drug Intermediates and Specialty Chemicals. Started in 1987 by a team of accomplished engineers, scientists and financial experts, the company has built a reputation for excellence not only for its product quality, but also for meeting customer expectations.

 

Subject has developed its capability in taking products from mere ideas through pilot plant to full scale production on a scale of hundreds of tons per annum. Subject has built reputation for quality of its products and services, which are supplied to several multinational chemical  and pharmaceutical companies.

 

The in-house Research and Development is constantly working on process up gradation, new products and cleaner technologies

 

Subject offers custom synthesis and contract manufacturing service under secrecy and exclusive arrangements.

 

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.42.78

UK Pound

1

Rs.85.51

Euro

1

Rs.67.90

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

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