MIRA
INFORM REPORT
|
Report Date : |
14.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CHEMCAPS LIMITED |
|
|
|
|
Registered Office : |
205 Elite House, 36 Community, Kailash Colony Extn, New Delhi – 110048
|
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
18.06.1980 |
|
|
|
|
Com. Reg. No.: |
091361 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L51397DL1997PLC091361 |
|
|
|
|
IEC No.: |
0588135372 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturing and Exporting Empty Hard Gelatin Capsules, Gelatin Capsules,
Pharmaceutical Capsules and Empty Hard Gelatin Capsules. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Maximum Credit Limit : |
USD 116000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established having moderate track. Its profit margin is
low in 2006-07. Trade relations are fair. Payments are reported as slow but
correct The company can be considered for small to mediocre business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office: |
205 Elite House, 36 Community, Kailash Colony Extn, New Delhi ;110048 |
|
Tel. No.: |
91-11-26447492 / 26432774 |
|
Fax No.: |
91-11-26442889 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office/ Factory : |
C-584, RIICO Industrial Area, Bhiwadi-301019, Distt. Alwar,
Rajasthan, (India) |
|
Tel. No.: |
91-1493-220746 / 221052 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Prem Chand Goel |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Arun Kumar Mital |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. Vinay Mahajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. P. Gungnai |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Ajmani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.N. Sehgal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Avdesh Mittal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Raka Rajnish |
|
Designation : |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Exporting Empty Hard Gelatin Capsules, Gelatin
Capsules, Pharmaceutical Capsules and Empty Hard Gelatin Capsules. |
|
|
|
|
Products : |
· Empty Hard
Gelatin Capsules · Rejeced Capsules
Scrap · Gelatin Capsules · Pharmaceutical
Capsules |
GENERAL
INFORMATION
|
No. of Employees : |
60 |
|
|
|
|
Bankers : |
· State Bank of
India · Oriental Bank of
Commerce |
|
Banking
Relations : |
- |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1345000 |
Equity Shares |
Rs.10/- each |
Rs.13.450 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 |
13.500 |
13.500 |
13.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9.800 |
9.700 |
9.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
23.300 |
23.200 |
22.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11.300 |
7.200 |
1.800 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
11.300 |
7.200 |
1.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34.600 |
30.400 |
24.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13.000 |
14.200 |
11.800 |
|
|
Capital work-in-progress |
2.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11.600
|
8.900
|
5.400 |
|
|
Sundry Debtors |
12.200
|
12.500
|
9.500 |
|
|
Cash & Bank Balances |
0.900
|
0.900
|
1.500 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
6.700
|
6.700
|
8.500 |
|
Total
Current Assets |
31.400
|
29.000
|
24.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11.300
|
10.700
|
10.100 |
|
|
Provisions |
0.700
|
2.100
|
1.900 |
|
Total
Current Liabilities |
12.000
|
12.800
|
12.000 |
|
|
Net Current Assets |
19.400
|
16.200
|
12.900 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34.600 |
30.400 |
24.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
55.700 |
62.200 |
60.800 |
|
|
Other Income |
2.500 |
1.000 |
0.300 |
|
|
Total Income |
58.200 |
63.200 |
61.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
0.300 |
0.600 |
1.400 |
|
|
Provision for Taxation |
0.200 |
0.400 |
0.500 |
|
|
Profit/(Loss) After Tax |
0.100 |
0.200 |
0.900 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
18.400 |
25.400 |
22.700 |
|
|
Excise Duty |
2.600 |
3.9 00 |
5.000 |
|
|
Power & Fuel Cost |
8.400 |
6.800 |
6.900 |
|
|
Other Manufacturing Expenses |
4.000 |
3.700 |
3.300 |
|
|
Employee Cost |
6.600 |
6.300 |
6.600 |
|
|
Selling and Administration Expenses |
16.100 |
16.300 |
14.800 |
|
|
Miscellaneous Expenses |
1.800 |
0.200 |
0.400 |
|
Total Expenditure |
57.900 |
33.300 |
59.700 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.40 |
0.20 |
0.10 |
|
Long Term Debt-Equity Ratio |
0.09 |
0.05 |
0.01 |
|
Current Ratio |
1.54 |
1.72 |
2.05 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.71 |
0.81 |
0.83 |
|
Inventory |
5.43 |
8.70 |
12.28 |
|
Debtors |
4.51 |
5.65 |
6.54 |
|
Interest Cover Ratio |
1.17 |
1.67 |
3.00 |
|
Operating Profit Margin(%) |
6.46 |
4.50 |
5.43 |
|
Profit Before Interest And Tax Margin(%) |
3.77 |
2.41 |
3.45 |
|
Cash Profit Margin(%) |
2.87 |
2.41 |
3.45 |
|
Adjusted Net Profit Margin(%) |
0.18 |
0.32 |
1.48 |
|
Return On Capital Employed(%) |
6.46 |
5.44 |
8.47 |
|
Return On Net Worth(%) |
0.43 |
0.87 |
4.00 |
LOCAL AGENCY
FURTHER INFORMATION
Operations and
Financial Results:
The company manufactured during the year Rs.680.257 Million capsules (previous year Rs.688.215 Millions) resulting in capacity utilization of about Rs.108.492 Millions (previous year 109.76%)
The company apart from its own production continued to out source capsules in the semi-finished from certain other manufacturers approved by it and finish the same under its strict quality control procedures. By this it was able to, not only retain, but also expand its customer base by meeting the increased requirements.
The Sales during the year were Rs759.4750 Million capsules (previous year Rs834.2910 Million) for Rs.54.483 Millions (previous year Rs.59.459 Millions). During the year Company exported goods worth Rs.23.094 Millions (previous year Rs.23.337 Millions) on F.O.B. basis.
The profit (after interest but before depreciation) of the Company for the year
is Rs.1.741 Millions (previous year Rs.1.943 Millions) and profit after tax is
Rs.0.051 Millions (previous year Rs.0.233 Millions) without accounting for
prior period adjustment.
The company has adequate internal control systems for monitoring
production, sales and financial matters.
As per Web Site:
Their Works
Their plant involves a substantial capital outlay and is one of the most modern and sophisticated plant today in the country. Spread over an area of 10,000 Sq. mts., the plant has a build up area of approximately 2,400 Sq. mts. (total construction RCC) with adequate greenery in the open areas prevented dust etc. All the critical manufacturing areas are fully air conditioned with precise temperature and humidity controls.
The plant produces capsules of sizes "0", "1", "2" & "3" presently, and is shortly introducing size "4".
Established in the year 1987 by a group of professionals, The Company has emerged as one of the leading manufacturer of Empty Hard Gelatine Capsules.
The company has one of the most modern and sophisticated plants today in the
country with an installed capacity of 627 million capsules per annum. This is
being now doubled.
After decade and a half of its existence the company has managed to create a
visible presence in the world market by serving the needs of the international
pharmaceutical industries. Highly qualified personnel, cutting edge technology
and stringent quality standards has helped the company put in place systems and
programs that ensures its customers of unmatched quality / high standard
products. The company has a tight focus on egulatory compliance and is ISO
9001:2000 certified.
Technology:
a) For the first time in India, they have installed the Six Pin Bars system capsule making machines which are the latest in this field. The machines have been imported from M/s Cherry Burrel Corporation, U.S.A., who were the undisputed world leaders in this field.
b) The plant air conditioning has been done by M/s Voltas Limited so as to
maintain the desired air conditioning parameters.
c) Theirs is perhaps the only plant using sophisticated electronic process
control instruments imported from M/s Landis & Gyr, Switzerland to maintain
the precise temperature and humidity conditions to within 1 unit of the set
point.
d) All supporting equipment has been obtained from the most reputed
manufacturers in India, example Flakt India Limited, Kirlosker International
Combustion (India) Limited, Bhuveneshwari & Co., and Gansons Ltd. and all
contact parts are made of Stainless Steel 316L category.
e) Automatic viscosity controllers and PID Temperature
Controllers have been incorporated at various places so as to guarantee a
constant viscosity and temperature at all stages during the manufacturing
process.
f) Automatic pre sorting devices have been incorporated for the first time to
ensure good quality off the machines.
g) They have imported 156 AMK III automatic printing machine, imported from M/s
Markem, U.S.A. to give the best quality linear prints. They also have facility
for all types of circular printing.
Their entire manufacturing process is automatic and each batch controlled for
quality at every step of the manufacturing process, to ensure the uniformity of
the product and the absolute meeting of the standards.
State of the art technology has been imported including equipments from world
leaders like Cherry Burrell Corporation USA, Markem USA, Landis & Gyr,
Switzerland, and others to standardise the process parameters and keep them in
strict control. Automatic viscosity controllers, PID temperature controllers
etc. have been put in place to ensure constant viscosity and temperature at all
stages during manufacturing. Automatic Pre-sorting devices ensure that majority
of defective capsules are removed online so that their capsules have the
ability to run smoothly on all types and speeds of filling machines.
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.42.87 |
|
UK Pound |
1 |
Rs.83.41 |
|
Euro |
1 |
Rs.66.11 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
35 |
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/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 |
|
<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 |
|