MIRA
INFORM REPORT
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Report Date : |
14.06.2008 |
IDENTIFICATION
DETAILS
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Correct Name : |
CAPSUGEL HEALTHCARE LIMITED |
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Formerly Known As : |
BHARTI HEALTH CARE LIMITED |
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Registered Office : |
21, Joniawas, Dharuhera, Rewari 122100, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.12.1982 |
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Com. Reg. No.: |
020151 |
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CIN No.: [Company
Identification No.] |
L85110HR1982PLC020151 |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturer of Hard Gelantine Capsule Shells. |
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 112000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
As the subject is a part of Pfizer, available information indicates
high financial responsibility of the company and its management. Trade relations are fair. Payments
are usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office /Manufacturing Plant/Sales
Offices : |
21, Joniawas, Dharuhera, Rewari 122100, Haryana, India |
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Tel. No.: |
91-1274-267092, 93,97,99 |
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Fax No.: |
91-1274-267168 |
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E-mail: |
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Website : |
DIRECTORS
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Name : |
Mr. Charles Robert Danjaut |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Guido Driesen |
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Designation : |
Chairman |
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Name : |
Mr. Rana Bhattacharjee |
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Designation : |
Managing Director |
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Name : |
Mr. Douglas Milanes J |
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Designation : |
Director |
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Name : |
Mr. Vanchai Santimanochai |
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Designation : |
Director |
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Name : |
Ms. Siriporn Sridech . |
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Designation : |
Director |
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Name : |
Mr. K.G. Ananthakrishnan |
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Designation : |
Director |
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Name : |
Mr. Jean Francois Thedenat |
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Designation : |
Director |
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Name : |
Mr. William Stevenson McCall |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Pinkey Kataria Hooda |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hard Gelantine Capsule Shells |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Empty Hard Gelatine Capsules |
No. in Thousand |
6000000 |
4800000 |
4608221 |
GENERAL INFORMATION
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No. of Employees : |
500 |
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Bankers : |
IDBI
Limited |
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Facilities : |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
J.C. Bhalla and Company Chartered Accountant |
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Associates/Subsidiaries : |
¡
Bharti Teletech Limited ¡
Goa Telecommunications and Systems Limited ¡
Bharti Telesoft Private Limited ¡
Lilly Projects Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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120000000 |
Equity shares |
Rs.10/- each |
Rs.1200.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9285348 |
Equity Shares |
Rs.10/- each |
Rs. 92.853
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
92.900 |
92.853 |
92.853 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
[70.500] |
(9.903) |
67.396 |
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NETWORTH |
22.400 |
82.950 |
160.249 |
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LOAN FUNDS |
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1] Secured Loans |
88.800 |
119.515 |
161.123 |
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2] Unsecured Loans |
405.500 |
104.544 |
25.952 |
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TOTAL BORROWING |
494.300 |
224.059 |
187.075 |
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DEFERRED TAX LIABILITIES |
0.000 |
59.439 |
18.708 |
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TOTAL |
516.700 |
366.448 |
366.032 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
261.100 |
276.500 |
288.548 |
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Capital work-in-progress |
254.500 |
44.252 |
1.635 |
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INVESTMENT |
0.000 |
0.000 |
2.304 |
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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 |
37.000 |
52.281 |
40.854 |
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Sundry Debtors |
28.900 |
53.960 |
65.176 |
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Cash & Bank Balances |
2.000 |
3.588 |
6.324 |
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Loans & Advances |
26.100 |
11.765 |
26.181 |
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Total
Current Assets |
94.000 |
121.594 |
138.535 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
86.800 |
71.211 |
60.732 |
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Provisions |
6.400 |
5.148 |
5.178 |
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Total
Current Liabilities |
93.200 |
76.359 |
65.910 |
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Net Current Assets |
0.800 |
45.235 |
72.625 |
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MISCELLANEOUS EXPENSES |
0.300 |
0.461 |
0.920 |
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TOTAL |
516.700 |
366.448 |
366.032 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
219.000 |
283.928 |
297.839 |
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Other Income |
8.500 |
25.313 |
20.019 |
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Total Income |
227.500 |
309.241 |
317.858 |
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Profit/(Loss) Before Tax |
[118.500] |
(34.826) |
24.474 |
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Provision for Taxation |
[57.900] |
(111.830) |
12.038 |
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Profit/(Loss) After Tax |
[60.600] |
(77.004) |
(12.436) |
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Earnings in Foreign Currency : |
NA |
99.654 |
216.065 |
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Imports : |
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Raw Materials |
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4.040 |
6.394 |
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Stores & Spares |
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0.342 |
1.531 |
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Capital Goods |
NA |
5.834 |
1.433 |
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Traveling |
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1.027 |
1.169 |
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Commission on sale |
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4.308 |
6.677 |
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Interest |
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1.637 |
1.364 |
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Others |
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0.551 |
0.000 |
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Total Imports |
NA |
17.739 |
18.568 |
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Expenditures : |
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Excise Duty |
17.800 |
0.000 |
0.000 |
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Raw Materials |
66.400 |
0.000 |
0.000 |
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Power and Fuel |
69.300 |
0.000 |
0.000 |
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Other Manufacturing Expenses |
27.500 |
0.000 |
0.000 |
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Employee Cost |
55.900 |
0.000 |
0.000 |
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Selling and Administration |
43.300 |
0.000 |
0.000 |
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Miscellaneous Expenses |
7.900 |
0.000 |
0.000 |
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Interest and Financial Charges |
21.900 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
81.932 |
65.180 |
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Administrative Expenses |
0.000 |
23.518 |
17.788 |
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Raw Material Consumed |
0.000 |
88.306 |
84.783 |
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Personnel Expenses |
0.000 |
58.894 |
51.089 |
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Depreciation |
29.700 |
0.000 |
0.000 |
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Sales and Marketing Expenses |
0.000 |
27.299 |
33.463 |
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Stock Adjustment |
6.300 |
0.000 |
0.000 |
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Total Expenditure |
346.000 |
279.949 |
252.303 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
6.81 |
1.69 |
1.26 |
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Long Term Debt-Equity Ratio |
1.25 |
0.90 |
0.95 |
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Current Ratio |
0.27 |
0.67 |
1.09 |
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Fixed Assets |
0.41 |
0.59 |
0.65 |
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Inventory |
4.90 |
6.65 |
8.23 |
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Debtors |
5.29 |
5.20 |
5.27 |
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Interest Cover Ratio |
-4.41 |
0.38 |
2.23 |
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Operating Profit Margin (%) |
-30.55 |
9.65 |
20.44 |
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Profit Before Interest And Tax Margin (%) |
-44.11 |
2.32 |
13.80 |
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Cash Profit Margin (%) |
-14.11 |
-18.79 |
10.52 |
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Adjusted Net Profit Margin (%) |
-27.67 |
-26.11 |
3.87 |
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Return On Capital Employed (%) |
0.00 |
0.00 |
12.62 |
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Return On Net Worth(%) |
0.00 |
0.00 |
7.84 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Previously known as United Pharma International, Bharti Healthcare was set up in 1982 to manufacture empty hard gelatine capsules at Dharuhera, Haryana. In 1987, the company's erstwhile promoter, the United group, transferred its stake to the Mittal group, leading to the name change. Due to industrial sickness resulting from demand-supply imbalances and the exchange fluctuation which led to heavy losses, the company was referred to the BIFR on 6 Jan.'90.
The rehabilitation programme initiated by the BIFR was successful and the
company was declared no longer sick on 19 Jul.'94; and soon became a
profit-making pharmaceutical company. Its production capacity is 1350 mln
capsules and its major clients for hard gelatine capsules include Wockhardt,
Glaxo, Cipla, Okasa, etc.
The company entered into a strategic alliance with Stryker Corporation, US, a
Fortune 500 company renowned for its medical equipment. Bharti Healthcare will
market, distribute and support a range of sophisticated arthroscopic and
endoscopic medical equipment, amongst a host of other devices.
In 1999-2000 the company introduced new sizes `EL-0' and `4' along with
rectified printing facility which would help the company towards exploring new
markets in USA, Europe and South East Asian Countries.
OPERATIONS:
During the year, the total income decreased by 28 % from Rs.317.06 million in
2005-06 to Rs. 227.500 million in 2006-07. The Company has registered a loss of
Rs. 66.890 million in 2006-07 in comparison to a profit of Rs. 29.290 million
before deducting finance charges and depreciation.
During the year, the company has registered net loss of Rs.60.570 million in
comparison to a loss of Rs. 77 million in 2005-06.
FUTURE OUTLOOK:
In view of change in the management, the company expects to
sell significant quantity of Capsules along with focus towards higher standards
in productivity, Product quality, Cost Reduction and Customer service.
PREFERENTIAL
ALLOTMENT OF EQUITY SHARES TO PFIZER PHARMACEUTICAL INDIA PRIVATE LIMITED
The Company has in the past availed Unsecured Loans from Pfizer Pharmaceutical
India Private Limited, the promoter and majority stakeholder of the Company to
meet its capital expenditure and other requirements. In order to bring long
term funds and to reduce the interest cost, it is proposed to convert such
amount of Unsecured Loan as it is outstanding on the date of holding of the
Annual General Meeting of the Company, but not exceeding Rs. 626.000 Millions into
Equity Shares and in this regard create, offer, issue and allot upto 62.600
Millions Equity Shares of Rs. 10/- each at par aggregating to Rs. . 626.000
Millions to Pfizer Pharmaceutical India Private Limited on preferential
allotment basis.
It is proposed to offer, issue and allot 29.521 Millions
Equity shares of Rs.10/- each for cash at par aggregating to Rs. 295.211
Millions to Pfizer Pharmaceutical India Private Limited, the promoter and
majority stakeholder of the Company, on preferential allotment basis, in one or
more branches, to fund the expansion program of the Company and to meet its
working capital requirements
Fixed Assets:
¡
Land
¡
Building
¡
Plant and Machinery
¡
Furniture and Fixture
¡
Electrical Installations
¡
Office Equipments
¡
Computer
¡
Scooter and Motor Cycle
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Laboratory Equipment
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A.C. Plant
¡
Car
As required by Accounting Standard - AS 18 "Related Parties
Disclosure" issued by the Institute of Chartered Accountants of India,
following are the names and nature of related parties :
a) Holding Company (From 7th December ,2005)
- Pfizer Pharmaceutical India Private
Limited
b) Controlling Enterprise (Till 6th December ,2005)
- Bharti Overseas Trading Company
c) Subsidiary Company
- Gel Caps Inc. USA
d) Related Parties where transactions have taken place during the year:
AS PER WEBSITE
DETAILS:
Company has emerged as a global leader creating innovative dosage forms for the pharmaceutical and dietary supplements industries. Companies look to their leadership to help them formulate new products, enhance existing product lines, bring new products to market faster, and ensure their clinical trials are conducted without bias.
Broad Range of Products & Services
With a diverse product line, including hard gelatin, soft gel, non-animal, and fish gelatin capsules, they are at the forefront of bringing to market the highest quality polymers, each designed and tailored for specific applications. Combined with their innovative R&D machines, like the CFS 1200 liquid filling and sealing machine and their Xcelodose® Precision Powder Micro-filling System, customers count on Company support from formulation to final production.
Committed to Quality and Education
To ensure their customers receive the very best quality products and services, they employ the principles of Six-Sigma throughout their entire organization. And their vast technical reference library, containing independent studies and articles, as well as articles written by their own scientists, is viewed as an invaluable recourse by their customers. As an active industry supporter, Company also gives presentations about dosage forms to pharmaceutical students at universities.
Initially part of the Parke-Davis Company, A Company is now a division of Pfizer Inc., a Fortune 100 global pharmaceutical company, and has numerous global locations to support customers on every major continent.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.87 |
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UK Pound |
1 |
Rs.83.41 |
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Euro |
1 |
Rs.66.11 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
4 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
48 |
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 |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
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/normal. |
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 |
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<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 |
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