MIRA
INFORM REPORT
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Report Date : |
12.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
J DUNCAN HEALTHCARE PRIVATE LIMITED |
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Registered Office : |
Plot No 65/66/67, Industrial Complex, Village
Atgaon, Shahapur, Thane – 421301, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 [Provisional] |
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Date of Incorporation : |
17.02.2003 |
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Com. Reg. No.: |
139202 |
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CIN No.: [Company
Identification No.] |
U24230MH2003PTC139202 |
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IEC No.: |
0303022523 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEJ04523B |
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PAN No.: [Permanent
Account No.] |
AAABCJ2256M |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Manufacturing marketing and selling
of pharmaceuticals and health care products and services to
customers in domestic and international markets. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
General financial position is good. Directors are reported as experienced,
respectable and having satisfactory means of their own. Trade relations are
fair. Business is active. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
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Name : |
Mr. Alok Kumar |
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Designation : |
Director |
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Contact No.: |
91-9821737941 |
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Date : |
10.06.2008 |
LOCATIONS
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Registered Office / Factory : |
Plot No 65/66/67, Industrial Complex,
Village Atgaon, Shahapur, Thane – 421301, Maharashtra, India |
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Tel. No.: |
95-2527-240296 |
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E-Mail : |
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Website : |
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Area : |
47000 sq. ft. [Owned] |
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Head Office / Administration Office : |
D/53 Vardhman Vatika, Chitalsar,
Manpada, Thane (West), Thane – 400607, Maharashtra, India |
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Tel. No.: |
91-22-25899082 / 25898838 / 8839 |
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Fax No.: |
91-22-25898838 |
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E-Mail : |
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Area : |
Owned |
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Corporate Office : |
324 Corporate Centre, Nirmal Life Style, LBS Marg, Mulund [West],
Mumbai, Maharashtra, India |
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Tel. No.: |
91-22-25901729-31 / 25899082 |
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Mobile No.: |
91-9821737941 |
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Fax No.: |
91-22-25901730 / 31 / 25899082 |
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Area : |
2500 sq. ft. [Owned by sister concern] |
DIRECTORS
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Name : |
Mr. Alok Kumar |
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Designation : |
Director |
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Address : |
104, Light Bridge, Hiranandani Meadows, Pokharan Road No. 2, Thane [West]
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Date of Birth/Age : |
37 Years |
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Qualification : |
M. S. [Eng] |
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Experience : |
13 Years |
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Name : |
Mrs. Hina Kiran |
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Designation : |
Director |
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Address : |
104, Light Bridge, Hiranandani Meadows, Pokharan Road No. 2, Thane [West]
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Date of Birth/Age : |
29 Years |
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Qualification : |
B. Sc. |
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Experience : |
6 Years |
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Name : |
Mr. Satyakam Kashyap |
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Designation : |
Whole Time Director |
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Address : |
Flat No. 15, Nisarg Tapovan, Patlipada, Godhbunder Road, Thane [West] |
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Date of Birth/Age : |
31 Years |
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Qualification : |
B. Com. |
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Experience : |
9 Years |
KEY EXECUTIVE
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Name : |
Mr. Surendra Kumar Gupta |
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Designation : |
Vice – President – Technical |
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Name : |
Mr. Sureshchandra Maheshwari |
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Designation : |
Vice – President – Production |
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Name : |
Mr. Sudhir Kumar Perti |
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Designation : |
Vice President Marketing [Domestic Sales] |
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Name : |
Mr. Vinay Kumar Singh |
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Designation : |
Vice President |
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Name : |
Mr. Vasudecan |
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Designation : |
Vice President – Finance and Commercial |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Hina Kiran |
36400 |
91 % |
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Alok Kumar |
3600 |
9 % |
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Total |
40000 |
100
% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing marketing and selling
of pharmaceuticals and health care products and services to
customers in domestic and international markets. |
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Products : |
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Exports : |
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Products : |
Pharmaceuticals Products |
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Countries : |
Ukraine, Russia and Kazakhstan |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
China and Korea |
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Terms : |
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Selling : |
L/C and Credit [90 - 150 days] |
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Purchasing : |
L/C and Credit [90 days] |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Tablets |
[Nos.] |
158400000 |
Factory has
completed trial runs in March 2008 and validation is in progress. |
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Capsules |
[Nos.] |
75000000 |
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Liquid orals |
[Nos.] |
3000000 |
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Sachets |
[Nos.] |
12000000 |
Notes :
- In Granulation department; there would be two vessels; one of 100
kgs and another of 200 kgs. However, at a time only one vessel could be used.
Therefore, considering average strength [weight] of the tablet to be
manufactured of 250 mg, rated capacity of the two vessels works out to
400000 and 800000 Nos. of tablets [i.e. 100*4 & 150*1000*4
respectively]
- In Compression Department, there would be two machines; one with 22
stations and another with 32 stations. Both machine would have capacity to
compress 1 tablet per second per station. Therefore, rated capacity of
these machines works out to 475200 [22*60*60*8] and 921600 [32*60*60*8]
Nos of tablets per shift.
- Normal Achievable Capacity is assumed @ 75 % of rated capacity
- It is assumed that the Company would be able to used Granulation
Vessels 22 days per month; whereas it would be able to operate other
manufacturing departments 25 days per month.
GENERAL
INFORMATION
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Suppliers : |
Building
Machinery and
Equipments
Electrical
Installations
HVAC / AHU and
HPLC
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Customers : |
Wholesalers
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No. of Employees : |
In Office : 6 [Present]; In Factory 34 [Under recruitment] |
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Bankers : |
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Facilities : |
F.B. + N.F.B. : Rs. 58.500 Millions [from State Bank of India] Rs in Millions
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Harivadan K. Shah and Company Chartered Accountants |
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Address : |
308, Paradise Tower, Gokhale Road, Naupada, Thane [West] |
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Tel. No.: |
91-22-25415951 |
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Fax No.: |
91-22-25377143 |
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E-Mail : |
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Associates/Subsidiaries : |
Lok beta
Pharmaceuticals [India] Private Limited Address : 234, Corporate Centre, Nirmal Life Style, Mulund [West],
Mumbai Activities : Manufacturing of Pharmaceuticals Products Banker : State Bank of India EmProCell
Clinical Research Private Limited Address : C-7/1A, TTC Industrial Area, Pawne, Navi Mumbai Activities : Clinical Research and Development of Drugs from stem
cells. Banker : ICICI Bank |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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40000 |
Equity Shares |
Rs. 100/- each |
Rs. 4.000 Millions |
[Of the above Shares, 39000 Equity Shares of Rs. 100/- each are alloted as
fully paid up by way of Bonus Shares, Previous Shares, previous year 39000
Shares]
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 [Provisional] |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.000 |
4.000 |
4.000 |
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2] Equity Share Application Money |
0.043 |
0.043 |
0.043 |
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2] Preference Share Application Money |
19.000 |
0.000 |
0.000 |
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4] Reserves & Surplus |
16.652 |
9.306 |
7.439 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
39.695 |
13.349 |
11.482 |
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LOAN FUNDS |
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1] Secured Loans |
52.919 |
32.158 |
6.670 |
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2] Unsecured Loans |
15.795 |
0.000 |
0.000 |
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TOTAL BORROWING |
68.714 |
32.158 |
6.670 |
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DEFERRED TAX LIABILITIES |
2.475 |
0.000 |
0.033 |
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TOTAL |
110.884 |
45.507 |
18.185 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
102.730 |
4.203 |
3.249 |
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Capital work-in-progress |
0.000 |
26.118 |
0.020 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.064 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.521
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2.994 |
1.149 |
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Sundry Debtors |
43.696
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28.520 |
21.160 |
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Cash & Bank Balances |
13.117
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12.408 |
9.311 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
3.337
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6.988 |
5.481 |
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Total
Current Assets |
60.671
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50.910 |
37.101 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
51.437
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30.141 |
17.917 |
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Provisions |
1.132
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5.719 |
4.360 |
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Total
Current Liabilities |
52.569
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35.860 |
22.277 |
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Net Current Assets |
8.102
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15.050 |
14.824 |
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MISCELLANEOUS EXPENSES |
0.052 |
0.072 |
0.092 |
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TOTAL |
110.884 |
45.507 |
18.185 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 [Provisional] |
31.03.2007 |
31.03.2006 |
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Sales Turnover and Operational Income |
63.753 |
21.541 |
30.496 |
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Profit/(Loss) Before Tax |
11.204 |
3.127 |
5.231 |
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Provision for Taxation |
3.858 |
1.261 |
1.872 |
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Profit/(Loss) After Tax |
7.346 |
1.866 |
3.359 |
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Earnings in Foreign Currency : |
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Export Earnings |
57.215 |
20.215 |
28.993 |
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Imports : |
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Raw Materials |
4.900 |
1.626 |
0.000 |
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Expenditures : |
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Manufacturing and Other Expenses |
31.101 |
10.173 |
14.018 |
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Selling and Distribution Expenses |
11.374 |
2.573 |
8.637 |
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Administrative and General Expenses |
6.252 |
2.711 |
1.540 |
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Employees Remuneration and Benefits |
1.035 |
0.797 |
0.304 |
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Finance Charges |
1.731 |
1.579 |
0.181 |
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Trial Run Expenses |
0.206 |
0.000 |
0.000 |
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Depreciation |
0.830 |
0.560 |
0.560 |
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Preliminary Expenses Written Off |
0.020 |
0.020 |
0.026 |
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Total Expenditure |
52.549 |
18.413 |
25.266 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
11.52
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8.66 |
11.01 |
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Net Profit Margin (PBT/Sales) |
(%) |
17.57
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14.52 |
17.15 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.86
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5.67 |
12.96 |
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Return on Investment (ROI) (PBT/Networth) |
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0.28
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0.23 |
0.46 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.06
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5.10 |
2.52 |
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Current Ratio (Current Asset/Current Liability) |
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1.15
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1.42 |
1.67 |
LOCAL AGENCY
FURTHER INFORMATION
The Registered Office of the company has been shifted from 324 Corporate
Centre, Nirmal Life Style, LBS Marg, Mulund [West], Mumbai, Maharashtra, India
to the present address w.e.f. 19.03.2008
TRADE REFERENCE
Leasanto Laboratories –
Office : 4-5-6, Ohm Sai Karan Palace, Excel Road, Borivali [West]
Tel No. : 91-22-28947801 [Mr. Shrikande]
Experience : Good
Swiss Parenterals Private Limited –
Office : 303-304, Samaan II, Opposite Reliance Petrol Pump, Near Prahaladnagar
Garden, Anandnagar Road, Satelite, Ahmedabad
Tel No.: 91-79-40062697 / 91-9825016246 [Mr. Vikrambhai]
Experience : Excellent
Adore Pharmaceuticals Private Limited –
Office : 56, Khokhani Industrial Estate, Near Sai Baba Temple, Sativali,
Vasai [East]
Tel No. : 95250-2481403 [Mr. Samir Sheth]
Experience : Good
DETAILS OF FIXED
ASSETS [AS ON 31.03.2008]
Land and Buildings : Rs.
42.038 Millions
Plant and machinery : Rs. 59.664
Millions
Furniture and Fixture : Rs.
0.942 Million
Other Assets : Rs.
2.048 Millions
Total Rs. 104.692 Millions
FINANCIAL ANALYSIS
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Last Available financial statement |
31.03.2008 [Provisional] |
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Recent summary financials |
Sales : Rs. 61.247 Millions Profit before tax Rs. 11.204 Millions
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Advance Taxes Paid |
Nil – Tax shield on a/c of depreciation MAT would be paid before due
date of filing return |
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Change in borrowings |
[+] Rs. 23.760 [Bank] [+] Rs. 15.796 [Others] |
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Debtors Position [At last month end April specify amount > 90 days] |
Export Receivable : Rs. 43.696 Millions |
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Creditors Position [At last month end April specify all suppliers not paid for more than
90 days] |
Creditors for Capital goods : Rs. 20.100 Millions Others Trade Creditors : Rs. 32.469 Millions |
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Stock Position [at last month end] |
Rs. 0.521 Million |
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Whether the critical ratios conforms to the bench mark stipulation |
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OTHER BUSINESS
INTERESTS OF THE PROMOTERS
Promoters – Share of Lok beta Pharmaceuticals [India] Private Limited
and EmProCell Clinical Research Private Limited
INTRODUCTION
J Duncan Healthcare Private Limited [JDPL], a group-company of Lok-Beta
Group, is a private limited company incorporated in the state of Maharashtra in
the month of February 2003.
Lok-Beta Group [LBG] commenced its business operations in India in the
year 2002, with promoting a joint venture company in the name and style of Lok
beta Pharmaceuticals [India] Private Limited with equity participation of the
then NRI and Indian technocrat Mr. Alok Kumar and a UK based company known as
Eurostate Corporation Limited.
Since its establishment in 2002, LBG has been engaged in the business of
outsourcing and marketing of various formulated pharmaceutical products. Its
entire turnover, throughout the period since establishment, has been from
exports. Its exports are mainly in Ukraine, Russia, Kazakhstan, Turkmenistan
and other CIS countries. Of late, LBG has started exporting the pharmaceutical
products to Philippines, Myanmar, Nigeria, Malaysia, Kenya, Belarus, Thailand,
Tobago, Honduras, Zambia and Hong Kong.
JDPL has been promoted by Mr. Alok Kumar along with his wife Mrs. Hina
Kiran. The entire share capital of JDPL is held by Mr. Alok Kumar and his
family members.
REASONS FOR
PROMOTING LBG AND JDPL
Mr. Alok Kumar, on returning to India and after studying the
pharmaceutical industry of India, visualized that there are good potentials in
outsourcing the pharmaceutical products from India. He observed that the cost
of producing the pharmaceutical products is far cheaper in India as compared to
those of European Countries and the quality of products manufactured in India
is by no means inferior to the quality of products manufactured elsewhere. Thus
though there is no compromise in any of the quality parameters in the medicines
produced in India, there is a substantial cost benefits in manufacturing
medicines in India. It is precisely to take the benefits of cost differentials
and location advantages; Mr. Alok Kumar has promoted LBG and JDPL
It is heartening to note that the operational performance and result of
LBG during the period commencing from its incorporation till date, indicates
that the purpose for which LBG has been incorporated are being achieved.
PROMOTERS OF JDPL
AND THEIR SHAREHOLDINGS
Mr. Alok Kumar, one of the promoters and currently the director of the
company, is a son of class I officer of Government, of India. From 1989, he was
based in Ukraine till he returned in India in 2002 for permanent settlement. He
has completed his Master’s Degree in Production Engineering in Ukraine itself.
After completion of his studies in the year 1995, he has been into
pharmaceutical business in Ukraine and other neighboring countries. He
possesses vast experience of outsourcing pharmaceutical generic products and
its marketing. Right from the year of his completion of studies in the year
1995, he has set up own warehouses and distribution outlets in Ukraine and
other neighboring counties.
Another director, Mrs. Hina Kiran is a science graduate and has
undergone certain coerces in computer applications. She looks after some of the
administrative and commercial aspects of the company.
The present paid up capital of the company [JDPL] is Rs. 4.000 Millions
comprising of 40000 equity shares of Rs. 100/- each fully paid up. Out of the said
paid up capital, 91 % of the paid up capital [i.e. 36400 equity shares of Rs.
100/- each fully paid up] is held by Mrs. Hina Kiran and balance 9 % of he paid
up capital [i.e. 3600 equity shares of Rs. 100/- each fully paid up] is held by
Mr. Alok Kumar.
The present paid up capital of LBPL is Rs. 0.907 million comprising of
90070 equity shares of Rs. 10/- each fully paid up. Out of the said paid up
capital, 60 % of the paid up capital [i.e. 54042 equity shares fo Rs. 10/- each
fully paid up] is held by Mr. Alok Kumar and his family and balance 40 % of the
paid up capita [i.e. 36028 equity shares of Rs. 10/- each fully paid up] is
held by Euro State Corporation Limited, UK
OPERATING
PERFORMANCE OF LBG AND JDPL
The operating performance of LBG and JDPL has been very successful as
could be appreciated from the following data :
Rs
in Millions
|
Accounting Year |
Turnover [Rs.] |
Pre Tax Profit
[Rs.] |
Post Tax Profit
[Rs.] |
% of Export
Sales to Total Sales |
|
2002-2003 |
50.867 |
3.321 |
2.759 |
100.00 % |
|
2003-2004 |
126.439 |
12.665 |
9.423 |
100.00 % |
|
2004-2005 |
126.930 |
14.925 |
9.205 |
100.00 % |
|
2005-2006 |
197.982 |
22.450 |
14.134 |
100.00 % |
|
2006-2007 |
286.131 |
34.062 |
21.205 |
96.50 % |
JDPL
Rs
in Millions
|
Accounting Year |
Turnover [Rs.] |
Pre Tax Profit
[Rs.] |
Post Tax Profit
[Rs.] |
% of Export
Sales to Total Sales |
|
2002-2003 |
NA |
NA |
NA |
NA |
|
2003-2004 |
35.777 |
5.620 |
4.061 |
100.00 % |
|
2004-2005 |
30.163 |
6.266 |
3.759 |
100.00 % |
|
2005-2006 |
30.496 |
5.231 |
3.519 |
100.00 % |
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2006-2007 |
21.541 |
3.127 |
1.867 |
100.00 % |
BRIEF PROFILE OF
LBG
As mentioned above, the group is engaged in the business of outsourcing and
marketing of pharmaceutical products and is a 100 % exports. The company has
tied up for outsourcing pharmaceuticals products, with some of the progressive
manufacturers of tablets and injections viz. Leasanto Laboratories, Palghar,
Swiss Parentarals Private Limited, Ahmedabad, Adore Pharmaceuticals Private
Limited, Vasai, Zaren Pharmaceuticals private Limited, Vasai and Klitch Drugs
Private Limtied, New Bombay.
In order to market the pharmaceutical products in the overseas market, it
is the prerequisite that the said products must be registered with the
respective Government authorities. This process of product registration dies
not only entail the heavy expenditure but it is also a time consuming process
and it demands tricky business senses. The LBG is pleased to report that it has
so far got registered 73 products in Ukraine, Russia, Kazakhstan and Moldova
and has so far spent around Rs. 37.500 Millions on product registration
charges. Further, 39 new products are under registration in Philippines,
Trinidad, Myanmar, Nigeria, Malaysia, Kenya, Belarus and Kazakhstan involving
total expenditure of around Rs. 30.000 Millions.
Further keeping in mind the fact that the working of the group has been
stabilised, the marketing has been established and that the financials have
been proved, the Group has opened and is successfully operating a non trading
office in Moscow, Russia for more than last three years.
Further, since Group’s total export turnover, during the period
01.04.2002 to 31.03.2005, has exceed Rs. 150.000 Millions, in terms of DGFT
Notification No 20/2002-07 dated 13.02.2002, LBPL has been conferred with
status of “Export House” with effect from 01.04.2005.
Over a period of time, the Group has built up a strong organization
structure which is supported by the professional having rich experience in
their respective fields.
The Group has also promoted a company in the name of EmProCell Clinical
Research Private Limited for carrying out research activities in the area of
stem cell i.e. development of formulation / cells out of cells / blood
abstracted from embryo and other sources. For the purpose, EmProCell is in the
process of setting up a research laboratory at Navi Mumbai involving total
capital outlay of around Rs. 55.000 Millions which is being financed entirely
out of foreign direct investments.
SETTING UP AN EOU
UNIT AND FINANCIAL ARRANGEMENT THEREOF
In order to meet the captive requirements of the Group demanding very
high quality of the finished products, strict adherence to the delivery
schedules of the overseas buyers and supply of finished products at the
competitive price in the international market, the Group decided to set up its
own 100 % Export oriented Manufacturing Unit. Accordingly, JDPL is in the process
of setting up the world class, state of art Manufacturing Unit. Accordingly,
JDPL is in the process of setting up the world class, state of art
Manufacturing Unit at village – Atgoan, Taluka – Shahapur, District – Thane for
manufacturing tablets, capsules, liquid orals and sachets.
Initially, the total capital cost of the project was estimated at Rs.
60.000 Millions to be financed by way of term loan from State Bank of India of
Rs. 40.000 Millions ant JDPL’s contribution of Rs. 20.000 Millions. Based on
discussions with the foreign buyers and on gathering certain vital information
on the opportunities available in the pharmaceutical sector in the
international market, JDPL made certain changes, while the project was under
execution, in some of the components of the project. The important changes
being :
Increasing the construction area of the factory building from the then
originally proposed area of 31473 sq. ft. to the revised area of 47209 sq.ft. ;
Installing the fully automatic machines in the production area as
against semi – automatic machines originally proposed to be installed.
As a result of the above changes, the project cost is estimated in
increase from Rs. 60.000 Million to Rs. 105.000 Million. While JDPL was
considering the above changes, the execution of the project was in full swing.
As a result, in order to telescope the time and also with an intent to complete
the project at the earliest possible time, JDPL decided to execute the revised
project by financing, for the time being, the increased cost out of its own’s
funds. The project is now nearing the completion and it is estimated that by
end of January 2008, JDPL would be ready to commence the production. JDPL has
so far incurred Rs. 76.000 Millions on the project which has been financed by
way of term loan of Stat Bank of India of Rs. 39.700 Millions and JDPL’s
contribution of Rs. 36.300 millions. The asset wise break up of the original
cost of the project, revised cost of the project, cost incurred up to 31st
December, 2007.
As a part of reorganizing the funding pattern of capital cost of the
project, JDPL desires to fund the incremental cost of the project either by way
of funding the entire capital cost by a sole lender by taking over the existing
facilities from existing bankers and providing incremental term loan facilities
to JDPL or providing incremental term loan facility to JDPL, retaining the
share of existing bankers.
BIO – DATA OF KEY
EXECUTIVES OF THE GROUP
Mr. Surendra Kumar Gupta, Vice – President – Technical, is looking after
the activity of setting up of the manufacturing facility [EOU] at village
Atgoan, On EOU becoming operational, he would be looking after all the
manufacturing operations at the said EOU as Head of Profit Centre. Mr. Gupta
has qualified as M. Pharm with distinction in 1982 from Benaras Hindu
University. He has held various positions [staring from production Supervisor
to Director Technical] in manufacturing divisions of various organizations. He
has work experience of more then 25 years. His latest assignment was with
Lesanto Laboratories Limited as Chief Executive Officer.
Mr. Sureshchandra Maheshwari, Vice – President – Production, is looking after
the Loan and License production operations of the Group. Mr. Maheshwari has
qualified as B. Pharm in 1968 from B.I.T.S., Pilani, Mr. Maheshwari has rich
experience on production floors of various pharmaceutical units spanning over
more than four decades. His latest assignment was with Amstrin Pharma Private
Limited as Vice president Operations where he has served for more than 10
years.
Mr. Sudhir Kumar Perti, Vice President Marketing [Domestic Sales], is
responsible for newly started domestic – sales activities of the Group. Mr.
Perti is B. Sc. From Lucknow University and through out his carrier, he has
served in marketing divisions of pharmaceuticals units of varying sizes. He has
to his credit, the experience of more than 28 years. His latest assignment was
Lupin Laboratories as head of marketing – domestic prescription sales.
Mr. Vinay Kumar Singh has qualified as B. Pharm in 1989 from L. N.
Mithala University, Bihar. He is responsible for development of and catering to
export markets in Eastern and Western African countries, Latin America, South –
East Asia and Middle East countries. He has served for more than 15 years in
international marketing divisions of various pharmaceutical companies. His
latest assignment was with Galpha Laboratories Limited as Assistant Export
Manager.
Mr. Vasudecan, Vice President – Finance and Commercial, is responsible
for all finance and commercial matters of the Group. He has qualified as B. Com
[Hons.] in 1978 from Bombay University. He has total work experience of more
than 39 years and his assignment was with Neogen Chemical Limited as General
Manager Commercial where he has served for more than 10 years.
Mr. Satuakam Kashyap, a Whole Time Director of Loak Beta Pharmaceutical
[India] Private Limited, is looking after all the HRD, Excise and Custom
matters of the group. He has joined Board of Directors of Lok – Beta
Pharmaceutical [India] Private Limited in early stage of its incorporation. He
is B. Com. From Delhi University.
ASSUMPTION UNDERLYING
WORKING OF PROJECTED FINANCIAL STATEMENTS OF J. DUNCAN HEALTHCARE PRIVATE
LIMITED
General
The company is in the process of setting up of an export oriented
industrial undertaking for manufacturing tablets, capsules, liquid orals and
sachets. The said EOU unit, as mentioned elsewhere in this report, is expected
to commence commercial production from 1-5-2008. Accordingly, for the years
2008-09 and onwards, the operational activities of the company and divided into
two parts viz, EOU activities and Non-EOU activities. Under EOU activities, the
sale of tablets, capsules, liquid oral and sachets manufactured at EOU factory
is grouped whereas in Non-EOU activities, sales of injection, tablets and
capsules manufactured on loan and license basis is grouped. With in EOU
activities, two market segments are considered viz. export by the company [i.e.
direct export] and supply by the company to sister concerns for exports by then
[i.e. deemed exports].
Trial Runs and
Commencement of Commercial Production
The Export Oriented Industrial Undertaking [EOU] would be setup by the
end of January 2008 and the trial run and the validation process would be
completed by the end of April 2008. Accordingly, EOU would be ready to commence
production 1-5-2008.
As the process of obtaining WHO GMP certification involves compliance of
various regulatory requirements entailing about six months period from the day
the factory would be ready to commence commercial production, it is assumed
that it would be able to commence carrying out third parties job on loan and
license basis only from 1.11.2008.
Capacity
Utilisation
Throughout the period under appraisal, the EOU unit would operate during
one shift only and would utilize its installed capacity of the said single
shift as follows :
|
YEAR |
Percentage of
Capacity Utilization |
|
2008-09 |
50 % |
|
2009-10 |
60 % |
|
2010-11 |
65 % |
|
2011-12 |
70 % |
|
2012-13 |
75 % |
|
2013-14 |
80 % |
Sales – Domestic
and Export
The company and its sister concerns have been, since 2002, in the
business of export of pharmaceutical products. During 2006-07, group’s export
turnover of pharmaceutical products worked out to Rs. 276.100 Millions and
during 2007-08, the same is expected to be Rs. 350.000 Millions. The group /
Company’s marketing department is backed by senior marketing executives having
rich experience in international marketing of pharmaceutical products. Based on
the negotiations carried out with the various overseas buyers of different
countries and abased on feed back obtained from then, the company has worked
out product wise country wise sales estimates during 2008-09. The said sales
estimates are assumed to be sales for 2008-09. Sales for the years 2009-10 and
onwards are assumed on the basis of sales estimates of 2008-09 with sales
growth of following percentages.
|
YEAR |
% growth in
sales |
|
2009-10 |
20 % |
|
2010-11 |
20 % |
|
2011-12 |
10 % |
|
2012-13 |
10 % |
|
2013-14 |
10 % |
After deducting production during the relevant year for direct export
and deemed export from the total production available at the relevant capacity
utilization, the balance quality of production is assumed on job work basis for
third parties.
Selling rates for direct exports are assumed at either the current
actual rates fetched by the company or the price quoted / agreed in principle
with the overseas buyers. Selling rates for deemed exports are assumed at
factory cost of production plus 15 % to 30 % depending upon the price realised
by the sister concern. The selling rates for job work are assumed keeping in
view the pricing norms prescribed by National Pharmaceuticals Pricing
Authority. All the selling rates are kept constant throughout the period under
appraisal.
PROFIT
AND LOSS ACCOUNT FOR THE YEARS
Rs
in Millions
|
PARTICULARS |
Projected |
||||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
2013-14 |
|
|
A REVENUE |
|
|
|
|
|
|
|
|
SALES |
|
|
|
|
|
|
|
|
I Tablets |
66.246 |
81.285 |
94.262 |
101.036 |
101.239 |
114.584 |
|
|
|
|
|
|
|
|
|
|
|
II Capsules |
31.145 |
38.781 |
4.963 |
48.195 |
51.426 |
54.658 |
|
|
|
|
|
|
|
|
|
|
|
III Liquid Orals |
7.204 |
8.837 |
10.282 |
11.018 |
9.068 |
12.491 |
|
|
|
|
|
|
|
|
|
|
|
IV Sachets |
3.287 |
4.328 |
4.989 |
5.350 |
5.710 |
6.071 |
|
|
|
|
|
|
|
|
|
|
|
V Injections |
51.422 |
61.706 |
71.991 |
77.133 |
82.275 |
87.417 |
|
|
|
|
|
|
|
|
|
|
|
I Total Sales [I to v ] |
159.304 |
194.937 |
226.487 |
242.731 |
249.719 |
275.221 |
|
|
|
|
|
|
|
|
|
|
|
II Add : Closing Stock of WIP |
1.800 |
2.164 |
2.550 |
2.900 |
3.200 |
3.200 |
|
|
III Add : Closing Stock of FG |
4.300 |
5.160 |
6.150 |
6.900 |
7.600 |
7.600 |
|
|
IV Sub Total [Ii + III] |
6.100 |
7.324 |
8.700 |
9.800 |
10.800 |
10.800 |
|
|
V Less : Opening Stock of WIP |
1.100 |
1.800 |
2.164 |
2.550 |
2.900 |
3.200 |
|
|
VI Less : Opening Stock of FG |
2.600 |
4.300 |
5.160 |
6.150 |
6.900 |
7.600 |
|
|
VII Sub Total [V + VI] |
3.700 |
6.100 |
7.324 |
8.700 |
9.800 |
10.800 |
|
|
VIII Total Revenue [I+IV-VII] |
161.704 |
196.161 |
227.863 |
243.831 |
250.719 |
275.221 |
|
|
|
|
|
|
|
|
|
|
|
B EXPENSES |
|
|
|
|
|
|
|
|
Raw Materials & Packing Materials |
|
|
|
|
|
|
|
|
I Consumed |
84.552 |
99.806 |
116.389 |
124.328 |
132.443 |
139.658 |
|
|
II Factory Salaries and Wages |
4.444 |
6.336 |
6.970 |
7.603 |
8.237 |
8.870 |
|
|
III Electricity Charges |
1.080 |
1.188 |
1.296 |
1.404 |
1.512 |
1.620 |
|
|
IV Fuel for Boiler & generator |
1.440 |
1.584 |
1.728 |
1.872 |
2.016 |
2.160 |
|
|
V Laboratory Chemicals and Consumable Stores |
0.360 |
0.396 |
0.432 |
0.468 |
0.504 |
0.540 |
|
|
Repairs and Maintenance |
0.360 |
0.396 |
0.432 |
0.468 |
0.504 |
0.540 |
|
|
Other factory Expenses |
0.300 |
0.330 |
0.360 |
0.390 |
0.420 |
0.450 |
|
|
Product Registration and product Development Expenses |
5.000 |
8.000 |
9.600 |
10.400 |
11.200 |
6.000 |
|
|
Other Expenses |
2.693 |
3.232 |
3.769 |
4.774 |
4.308 |
4.579 |
|
|
X Total Cost of Production [I to IX] |
100.229 |
121.268 |
140.976 |
151.707 |
161.144 |
164.417 |
|
|
|
|
|
|
|
|
|
|
|
XI Commission and Brokerage |
20.009 |
24.200 |
28.186 |
30.202 |
30.368 |
34.236 |
|
|
XII freight and Forwarding Charges |
3.110 |
3.732 |
4.354 |
4.665 |
4.745 |
5.287 |
|
|
XIII Salaries – Non factory |
1.800 |
1.980 |
2.160 |
2.340 |
2.520 |
2.700 |
|
|
XIV Other Selling, Distribution and Administration Expenses |
2.700 |
2.970 |
3.240 |
3.510 |
3.780 |
4.050 |
|
|
XV Total Selling, Distribution and Administration Expenses [I to IV] |
27.619 |
32.882 |
37.940 |
40.718 |
41.413 |
46.273 |
|
|
|
|
|
|
|
|
|
|
|
XVI Total Expenses |
127.848 |
154.149 |
178.916 |
192.424 |
202.557 |
210.690 |
|
|
|
|
|
|
|
|
|
|
|
XVII Profit Before Interest, Depreciation and Income Tax |
33.856 |
42.011 |
48.946 |
51.407 |
48.162 |
64.531 |
|
|
|
|
|
|
|
|
|
|
|
XVIII Interest on term loan Interest on working capital |
8.509 |
6.689 |
4.916 |
3.155 |
1.396 |
0.074 |
|
|
|
|
|
|
|
|
|
|
|
XIX Facilities |
2.862 |
3.377 |
3.929 |
4.259 |
4.442 |
4.899 |
|
|
|
|
|
|
|
|
|
|
|
XX Total Interest |
11.371 |
10.066 |
8.845 |
7.414 |
5.838 |
4.973 |
|
|
|
|
|
|
|
|
|
|
|
XXI Depreciation |
12.668 |
11.301 |
10.074 |
9.253 |
8.200 |
7.294 |
|
|
|
|
|
|
|
|
|
|
|
XXII Profit Before Tax |
9.817 |
20.644 |
30.027 |
34.740 |
34.124 |
52.264 |
|
|
|
|
|
|
|
|
|
|
|
XXIII Provision for Tax |
1.192 |
6.816 |
10.055 |
11.792 |
11.587 |
17.762 |
|
|
|
|
|
|
|
|
|
|
|
XXIV Profit After Tax |
8.625 |
13.828 |
19.972 |
22.948 |
22.536 |
34.502 |
|
|
|
|
|
|
|
|
|
|
|
XXV Opening Credit balance of Profit and Loss A/c |
19.147 |
27.772 |
41.600 |
61.571 |
84.519 |
107.055 |
|
|
|
|
|
|
|
|
|
|
|
XXVI Closing Credit balance of Profit and Loss A/c |
27.772 |
41.600 |
61.571 |
84.519 |
107.055 |
141.557 |
|
BALANCE SHEET AS AT
THE END OF
Rs. In Millions
|
PARTICULARS |
Projected |
|||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
2013-14 |
|
CAPITAL AND
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital |
4.000 |
4.000 |
4.000 |
4.000 |
4.000 |
4.000 |
|
|
|
|
|
|
|
|
|
Share Application Money |
0.043 |
0.043 |
0.043 |
0.043 |
0.043 |
0.043 |
|
|
|
|
|
|
|
|
|
Reserves and Surplus |
27.772 |
41.600 |
61.571 |
84.519 |
107.055 |
141.557 |
|
|
|
|
|
|
|
|
|
Secured Loans : |
|
|
|
|
|
|
|
Term Loans |
58.837 |
45.182 |
31.603 |
18.067 |
4.531 |
0.000 |
|
Working Capital Loans |
26.021 |
30.704 |
35.721 |
38.719 |
40.383 |
44.539 |
|
|
|
|
|
|
|
|
|
Unsecured Loans : |
84.858 |
75.886 |
67.324 |
56.786 |
44.914 |
44.539 |
|
|
|
|
|
|
|
|
|
From Promoters |
3.500 |
3.500 |
3.500 |
3.500 |
3.500 |
3.500 |
|
|
|
|
|
|
|
|
|
From Group Companies [Security Deposit] |
20.000 |
20.000 |
20.000 |
20.000 |
20.000 |
20.000 |
|
|
|
|
|
|
|
|
|
Trade Creditors |
25.662 |
31.246 |
36.353 |
38.980 |
40.570 |
43.461 |
|
Provision for Income Tax |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
165.835 |
176.275 |
192.792 |
207.829 |
220.082 |
257.100 |
|
Total Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Assets |
|
|
|
|
|
|
|
Gross Block |
109.929 |
110.929 |
111.929 |
112.929 |
113.929 |
114.929 |
|
Depreciation to Date |
16.331 |
27.633 |
37.707 |
46.960 |
55.160 |
62.454 |
|
Net Block |
93.598 |
83.296 |
74.222 |
65.969 |
58.769 |
52.475 |
|
Capital Work in progress |
NIL |
NIL |
NIL |
NIL |
NIL |
NIL |
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Stock in trade |
17.219 |
20.400 |
23.899 |
26.041 |
28.105 |
29.057 |
|
Sundry Debtors |
47.191 |
57.101 |
66.500 |
71.259 |
72.932 |
80.776 |
|
Cash and Bank Balance – Normal |
1.500 |
1.700 |
1.900 |
2.100 |
2.300 |
2.500 |
|
Cash and Bank Balance – Extra |
3.231 |
10.302 |
22.407 |
38.196 |
53.312 |
87.228 |
|
Loans and Advances |
3.000 |
3.400 |
3.800 |
4.200 |
4.600 |
5.000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Tax Assets |
0.064 |
0.064 |
0.064 |
0.064 |
0.064 |
0.064 |
|
|
|
|
|
|
|
|
|
Miscellaneous expenditure [to the extent no w/o] |
0.032 |
0.012 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Total Assets |
165.835 |
176.275 |
192.792 |
207.829 |
220.082 |
257.100 |
FIXED ASSETS
- Land
- Factory
Building
- Computers
- Furniture and
Fixture
- Motor Car
- Electrical
Installations
- Office
Equipments
- Office
Premises
- Plant and
Machinery
AS PER WEBSITE
Profile
Subject is a
marketing-led pharmaceuticals & health care company where growth
has been rapid and achieved periodically. The Company has grown to its present
size with equity funding of only Rs. 5 million having commenced its activity in
2003.
The Directors believe that this growth has been driven principally by the
Company's marketing skills, customer focus, product ranges and developments,
financial controls and extensive training. J.Duncan aims to service a much
broader segment of the pharmaceuticals & health care markets. It sells
ethical (prescription) pharmaceuticals, non-prescription medicines, vitamins,
minerals and supplements and a wide range of other pharmaceuticals health care
products. To service its customers' needs from the highly regulated to the
consumer driven markets, J.Duncan operates with different divisions.
J.Duncan chooses to market products which match its rigorous marketing and
financial return criteria. Product licenses and brands, where appropriate, are
acquired or, increasingly, developed internally. The Directors consider that
opportunities exist to develop product line extensions and new chemical
entities which meet the Company's investment criteria.
Company has commenced their new manufacturing plant with
ultra modern facilities of oral doses form in Thane district & is very
close to Mumbai. Company is planning to get national international
Certifications in near future.
History
The Company has commenced its activity in 2003 with a range of
pharmaceuticals & health care products. There have been subsequent plans of
developing new product for different markets.
Between 2003 and 2004, the Company raised equity finance of Rs. 10 million from
director-investors. The Company became profitable in the first year of their
operation.
Since 2003, the Company started to export pharmaceuticals & Health care
products to over 5 countries, and started the development of its own ultra
modern Pharmaceutical products in 2004.
Pharmaceutical products
The provision of prescription medicines is supported by a
marketing and sales department, a medical and regulatory department, a recently
established research and development facility and an operations department
which manages the outsourcing of manufacturing.
The majority of the products marketed are for the treatment or prevention of
chronic or recurrent illnesses. J.Duncan does not concentrate on any particular
therapeutic area. However, it currently markets products which address
indications in three of the largest chronic disease areas: cardiovascular
diseases, central nervous system disorders and musculoskeletal conditions
latest cephalosporin and antibiotics. The Company currently markets a portfolio
of more than 100 pharmaceutical products based on different active compounds
all of which are sold under the Company's brands.
The Directors believe that growth has been and will continue to be achieved
through the Company's marketing-led approach and its ability to offer a wide
range of products. The Directors' intention is therefore to maintain future
growth through the pursuit of strategies relating to:
- Product
research and development;
- Marketing
and sales.
- New
Markets.
- Ultra
modern new manufacturing facility
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.42.89 |
|
UK Pound |
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.66.45 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|