MIRA
INFORM REPORT
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Report Date : |
17.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
NATURAL CAPSULES LIMITED |
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Registered Office : |
Shreshta Bhumib. V.K. Iyenkar No.102, No.87, K.R. Road, Bangalore;560004,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.09.1993 |
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Com. Reg. No.: |
014742 |
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CIN No.: [Company
Identification No.] |
L24239KA1993PLC014742 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRN00437D |
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Legal Form : |
Public Limited Liability Company. The Company shares are listed on
stock exchanges |
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Line of Business : |
Manufacturer of Hard Gelatin Capsule shells,Hard Cellulose Shells and
Pharmaceutical Dosages Forms in Capsule dosage Form. |
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 450000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is well-established and reputed company having satisfactory
track. Directors are reported as experience and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
102, “ Shreshta Bhumi No.87. K. R. Road, Bangalore-560 052, Karnataka |
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Tel. No.: |
91-80-2667 1571 / 2667 1573 |
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Fax No.: |
91-80-26671562 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No.7A2, KIADB Industrial area, Attibele, Bangalore- 562107,
Karnataka |
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Factory 2 : |
RS No.84, Perambai Road, Pitchaiveerampet, Pondicherry-10 |
DIRECTORS
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Name : |
Mr. Srirangam Gopalan |
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Designation : |
Chairman |
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Name : |
Mr. Laxminarayan Mundra |
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Designation : |
Whole-time Director |
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Name : |
Mr. Satyanarayan Mundra |
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Designation : |
Whole-time Director |
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Name : |
Mr. C. P. Rangachar |
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Designation : |
Director |
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Name : |
Mr. Dr. C. M. Gurumurthy |
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Designation : |
Director |
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Name : |
Mr. V Subramony |
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Designation : |
Director |
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Name : |
Mr. Sunil L. Mundra |
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Designation : |
Managing Director |
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Name : |
Mr. Sushi Kumar Mundra |
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Designation : |
Director |
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Name : |
Mr. V. Balaji Bhat |
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Designation : |
Director |
MAJOR SHAREHOLDERS
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters holding |
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Indian Promoters |
951950 |
22.23 |
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-Foreign promoters |
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Persons acting in concert |
874161 |
20.41 |
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Mutual funds & UTI |
4700 |
0.11 |
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Flls |
197550 |
4.61 |
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Private corporate bodies |
311421 |
7.27 |
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Indian public |
1789952 |
41.79 |
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NRI/OCBs |
139636 |
3.26 |
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Any other clearing member |
13330 |
0.31 |
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Grand totals |
4282700 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hard Gelatin Capsule shells,Hard Cellulose Shells and Pharmaceutical
Dosages Forms in Capsule dosage Form. |
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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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Capsules |
Nos in lacs |
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31140 |
26986.22 |
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Formulations |
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2700 |
493.54 |
GENERAL
INFORMATION
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No. of Employees : |
About 200 |
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Bankers : |
State Bank of India, Bangalore Commercial Branch, Hudson Circle BANGALORE - 560
001 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gnanoba and Bhat Chartered Accountants |
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Address : |
211. Commerce House, 9/1. Cunningham Road, BANGALORE - 560 052 |
CAPITAL STRUCTURE
As on 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Share |
Rs.10/-each |
Rs.50.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4282700 |
Equity Share |
Rs.10/-each |
Rs.42.827 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 |
42.827 |
42.827 |
42.827 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
89.703 |
70.094 |
51.564 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
132.530 |
112.921 |
94.391 |
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LOAN FUNDS |
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1] Secured Loans |
15.595 |
18.005 |
18.906 |
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2] Unsecured Loans |
11.845 |
11.176 |
12.349 |
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TOTAL BORROWING |
27.440 |
29.181 |
31.255 |
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DEFERRED TAX LIABILITIES |
10.157 |
9.900 |
10.200 |
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TOTAL |
170.127 |
152.002 |
135.846 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
114.523 |
90.248 |
86.895 |
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Capital work-in-progress |
9.346 |
30.665 |
24.162 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
13.661 |
12.720 |
11.881 |
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Sundry Debtors |
62.049 |
44.601 |
28.050 |
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Cash & Bank Balances |
1.620 |
1.558 |
1.201 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
38.603 |
25.039 |
15.012 |
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Total
Current Assets |
115.933 |
83.918 |
56.144 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
0.000 |
0.000 |
0.000 |
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Provisions |
69.675 |
52.829 |
31.355 |
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Total
Current Liabilities |
69.675 |
52.829 |
31.355 |
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Net Current Assets |
46.258 |
31.089 |
24.789 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
170.127 |
152.002 |
135.846 |
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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 |
178.262 |
157.210 |
126.016 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
178.262 |
157.210 |
126.016 |
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Profit/(Loss) Before Tax |
36.009 |
35.784 |
25.302 |
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Provision for Taxation |
11.390 |
11.788 |
10.692 |
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Profit/(Loss) After Tax |
24.619 |
23.996 |
14.610 |
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Earnings in Foreign Currency : |
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Other Earnings |
19.335 |
17.023 |
6.674 |
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Total Earnings |
19.335 |
17.023 |
6.674 |
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Imports : |
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Others |
1.471 |
0.135 |
0.000 |
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Total Imports |
1.471 |
0.135 |
0.000 |
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Expenditures : |
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Administrative Expenses |
41.049 |
33.353 |
28.056 |
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Raw Material Consumed |
74.539 |
63.673 |
51.563 |
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Power and Fuel |
0.000 |
0.000 |
0.000 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Employee Cost |
13.679 |
11.770 |
10.574 |
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Miscellaneous Expenses |
0.000 |
0.000 |
0.000 |
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Financial cost |
1.920 |
1.965 |
2.441 |
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R and D Expenses W/off |
0.004 |
0.040 |
0.000 |
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Depreciation & Amortization |
10.007 |
8.364 |
7.836 |
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Increase or decrease in stocks |
0.549 |
1.971 |
0.000 |
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Prior Period Expenses |
0.506 |
0.287 |
0.000 |
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Total Expenditure |
142.253 |
121.423 |
100.470 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
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Sales
Turnover |
49.800 |
48.200 |
48.600 |
55.300 |
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Other
Income |
0.000 |
0.000 |
0.200 |
0.200 |
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Total
Income |
49.800 |
48.200 |
48.800 |
55.500 |
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Total
Expenditure |
36.300 |
35.400 |
35.600 |
39.300 |
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Operating
Profit |
13.500 |
12.800 |
13.200 |
16.200 |
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Interest |
0.500 |
0.400 |
0.400 |
[0.100] |
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Gross
Profit |
13.000 |
12.400 |
12.800 |
16.300 |
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Depreciation |
2.700 |
2.700 |
4.200 |
1.700 |
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Tax |
3.800 |
3.200 |
1.700 |
6.000 |
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Reported
PAT |
6.500 |
6.300 |
5.600 |
7.800 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
0.23 |
0.29 |
0.43 |
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Long Term Debt-Equity Ratio |
0.20 |
0.28 |
0.38 |
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Current Ratio |
1.33 |
1.31 |
1.17 |
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TURNOVER RATIOS |
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Fixed Assets |
1.05 |
1.07 |
0.87 |
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Inventory |
13.42 |
12.68 |
13.44 |
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Debtors |
3.32 |
4.30 |
4.34 |
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Interest Cover Ratio |
19.95 |
18.90 |
11.54 |
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Operating Profit Margin(%) |
27.03 |
29.62 |
29.86 |
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Profit Before Interest And Tax Margin(%) |
21.39 |
24.23 |
23.30 |
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Cash Profit Margin(%) |
19.53 |
20.77 |
18.84 |
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Adjusted Net Profit Margin(%) |
13.88 |
15.38 |
12.28 |
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Return On Capital Employed(%) |
25.10 |
28.24 |
24.99 |
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Return On Net Worth(%) |
20.05 |
23.15 |
18.85 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE AND
PROSPECTS:
During the year the company's turnover has increased by 13% and
company has earned a net profit (before tax) of Rs.36.009 Millions as against
the corresponding net profit of Rs.35.785 Millions in the previous year. Due to
unfavourable market conditions and reduction in margins and increase in
depreciation, profit has not increased in proportion to sales. The available
profit has enabled the company to plough back an amount of Rs. 12.900
Millions for funding the ongoing
expansion at Pondicherry. The exports of the company has increased by 26%
during the year under consideration. Due to addition of capacity by
commissioning of the balance machineries, the directors are hopeful of further
improving the performance in both domestic and export markets, during the
current year.
EXPANSION:
During
the year 2004-05 company had acquired 5 capsules making machines to be
installed at Pondicherry. Out of these 5 machines, 4 machines have already
become operational and the last machine will be operational during the June,
2007. With completion of this expansion program,the total installed capacity of
HGCS will be 3.6 billion capsules per annum.
1. INDUSTRY
STRUCTURE AND DEVELOPMENTS:
During
the year pharmaceutical Industry's average growth was around 12%. The domestic
Pharma industry is going through change in demand pattern. However the
formulation exports sales have grown more than the domestic sales. The pharma
industry's focus on export of finished formulation has increased the demand for
TSE Risk free capsules which are used for products marketed in regulated
countries. Company has filed its DMF (Drug Master File) with USFDA to meet this
requirement. During the year the company's net sales went up by 13%. This was
achieved by commissioning of additional lines of capsule machines installed out
of the 5 lines acquired in 2004-05. However, the reduced margins have resulted
in 3% increase in profit after tax.
2. OPPORTUNITIES AND THREATS:
Capsules
a) Opportunities:
1. Good export market for Gelatin capsules in South East and far East
Asian, African and Latin America countries.
2. Expansion of the existing markets for Vege capsules within the
country.
b) Threats:
1. Expansion of capacities by other major players.
2. Conversion of Gelatin capsules products into other dosage forms.
3. Shifting of Formulation manufacturing units from different parts of
the country to northern excise free zones, may increase the transportation
costs.
Formulation:
a) Opportunities:
1. Job work for exporters and other MNC companies
2. Formulation exports by the company.
b) Threats:
1. New GMP requirements may warrant modernization of their existing
plant.
2. Shifting of job work opportunities to northern excise free
zones.
3. RISKS AND CONCERNS :
Risk of competition and exchange fluctuations may have an
adverse impact on the projections.
4. OUTLOOK :
Based on the company's performance up to the date of this report,
orders on hand and expanded capacity established at Pondicherry, company is
hopeful of achieving a turnover of around Rs. 200.000 Millions in the current
year. Inspite of the constraints due to slump in demand and pressure on margin,
company hopes to maintain profitability by added capacity and focus on export
and sale of Veg caps.
5. DISCUSSION OF FINANCIAL
PERFORMANCE:
During the year the company had discharged all its institutional
repayment liabilities on time. Over and above this, the company has ploughed
back Rs.12.900 Millions for Capital Investment at Pondicherry for second
expansion of capsule manufacturing capacities. Inspite of increase in rate of
interest by around 3%, outflow on interest has marginally come down.
Fixed Assets:
- Free hold land
- Building
- Plant and Machinery including Electrical Installatiions
- Computer
- Furniture and Fixture
- Office Equipments
- Motor Vehicles
- Technical know-how-fees
- Land
Company Profile
The companyLimited is a Public Limited Company established in the year 1993 at Bangalore and in the year 2003 at Pondicherry. The companyLimited is a well-equipped modern manufacturing plant to manufacture Hard Gelatin Capsule shells, Hard Cellulose Capsule shells and Pharmaceutical Dosage Forms in Capsule Dosage Form.
The Company meets the statutory requirements as laid down by the authorities in respect to cGMP and cGLP practices. Since its inception, The companyhas ensured to provide turnkey solutions to all its customers. NCL has evolved and strengthened its endeavors by constantly innovating through its excellent products. With a mission to enable “Technology Assisted Business Transformation”, NCL ensure to deliver the best products with a technological edge.
The main objective of the company is to manufacture and market Hard Gelatin Capsule shells and Hard Cellulose Capsule Shells (both printed and unprinted). These capsules are sold in domestic and also exported to several countries. The logical integration of NCL hard shell manufacturing to formulation was initiated in the year 1998
The company is also engaged in formulating the pharmaceutical dosage forms in Capsule dosage form, both Pharma and Neutraceutical Products. The company is fully committed to upgrade its facilities on a continuous basis to meet the requirements of National and International Standards, cGMP and cGLP practices. Natural Capsule has been serving the pharmaceutical industry over a decade, comprising of two units – one at Bangalore and other at Pondicherry.
The Pharmaceutical and Dietary supplement industries count on The companyto supply hard two-piece Gelatin and Cellulose capsules. With manufacturing sites at Bangalore and Pondicherry, they are serving customers on quick service no matter where they are located. For the past 12 years, with the greatest respect to the Customers, The companyhas dedicated itself to the production of the highest quality capsules.
Their Focus – World
Class Manufacturing
WHO-GMP Certifications; Automated statistically-controlled operations; ISO 9001 compliance; Disciplined
Quality Assurance monitoring; Clean room policies and procedures; Trained and Competent professionals and technicians, trained sales and customer service – THE COMPANYhas put in place systems and programs that ensures Customers needs. Their capsule products are known throughout the Industry for their ability of mahinability.
Their Goal – Meeting
Customer Needs
The companyprovides Total Customer Satisfaction – by describing what and how they do best. It is not only the sales and technical staff focus on addressing and resolving customer needs, but also their manufacturing personnel and formulation personnel often interact directly with customers on product and process improvement programs. At Natural Capsules, they have an added advantage of having formulation unit which will continuously provide feedback on improving quality and mahinability of hard two-piece capsules.
They also use formal customer satisfaction measurement programs that provide routine opportunities for their customers to tell us what they like or, more importantly, what they don’t like about dealing with NATURAL CAPSULES.
CMT REPORT
(Corruption, Money Laundering and 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.42.90 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.65.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/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 |
|