MIRA
INFORM REPORT
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Report Date : |
24.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
HINDUSTAN SYRINGES AND MEDICAL DEVICES LIMITED |
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Registered Office : |
GL -3Ashoka Estate, 24 Barakhamba Road, New Delhi – 110 001 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.08.1957 |
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Com. Reg. No.: |
11-02834 |
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CIN No.: [Company
Identification No.] |
U74899DL1957PLC002834 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELH04179A / DELH03762D |
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PAN No.: [Permanent
Account No.] |
AAACH0007M |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporters of Medical Syringes, Needles and Blades. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 11000000 |
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Status : |
Excellent |
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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 having excellent track. Available
information indicates high financial responsibility of the company. General
financial position is good. Fundamentals are strong and healthy. Payments are
always made as per commitments. The company can be considered
good for any normal business dealings. It can be regarded as a promising business partner in a medium to long
– run. |
LOCATIONS
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Registered Office : |
GL -3Ashoka Estate, 24 Barakhamba Road, New Delhi – 110 001, India |
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Tel. No.: |
91-11-23316528 / 23314785 |
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Fax No.: |
91-11-23313569 |
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E-Mail : |
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Location: |
Owned |
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Business Office
& Works: |
174/25, Sector – 25, Ballabgarh, Faridabad- – 121 004, Haryana, India |
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Tel. No.: |
91-129-2232378 / 2234379 / 2232451 / 2234207/ 4061151 |
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Fax No.: |
91-129-2233242,
4061164 / 2292768 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Narender Nath |
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Designation : |
Chairman and Managing Director |
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Address : |
1215, Sector 14, Faridabad, Haryana, India |
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Date of Birth/Age : |
22 / 10 / 1921 |
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Name : |
Mrs. Indira Rani |
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Designation : |
Director |
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Address : |
1215, Sector 14, Faridabad, Haryana, India |
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Date of Birth/Age : |
19 / 11 / 1931 |
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Name : |
Mr. Rajiv Nath |
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Designation : |
Joint Managing Director |
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Address : |
1344 – Sector 15, Faridabad, Haryana, India |
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Date of Birth/Age : |
19 / 06 / 1962 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporters of Medical Syringes, Needles and Blades. |
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Product Range: |
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Exports : |
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Countries : |
UK, UAE, Sri Lanka, Malaysia, USA, UNICEF, Europe, South East Asia and South America. |
GENERAL
INFORMATION
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Customers : |
· HCA Healthcare · Tenet · Pfizer Cannought Laboratories · State of Florida · Vivra · Local and foreign Governments · World Health Organisation · Greystone · YoungSoft ·
Inc. Cardinal |
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No. of Employees : |
Around 1500 |
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Bankers : |
Ř China Trust Commercial Bank 21 A, Janpath, New Delhi-110 001, India Ř Canara Bank 8 A, Nehru Ground, Faridabad, Haryana-121 004, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S N Dhawan & Company Chartered Accountants |
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Address : |
C-37, Connaught Place, New Delhi-110 001, India |
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Associates/Subsidiaries : |
Ř HMD Healthcare Corporation 800, Village Square Crossing, Suite 322, Palm Beach Gardens, Florida – 33410, USA Tel. No. 561-656-2047 Fax No. 561-799-9799 E-mail : admn@hmd-healthcare.com - It was founded in 1989 in St. Petersburg, Florida, USA - Its major customers includes : > HCA Healthcare > Tenet > Pfizer Cannought Laboratories > State of Florida > Vivra > Local and foreign Governments > World Health Organisation > Greystone > YoungSoft > Inc. Cardinal - Its Chronic Disease Management programs include supplies at competitive managed care prices, outsourcing, answers to public Health Care and Public Health question. Ř HMD Healthcare Limited, UK Ř Niraj Industries (Private) Limited Ř Hindustan Syringes Export (Private) Limited Ř Nath Brothers (Agencies) |
CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3750000 |
Equity Shares |
Rs. 10/-
each |
Rs.37.500
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 |
37.500 |
37.500 |
37.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2165.800 |
1879.200 |
1623.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2203.300 |
1916.700 |
1661.400 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2203.300 |
1916.700 |
1661.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1556.400 |
1383.100 |
1288.900 |
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Capital work-in-progress |
14.300 |
39.600 |
75.400 |
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INVESTMENT |
470.000 |
419.000 |
292.700 |
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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 |
493.900
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372.200 |
316.100 |
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Sundry Debtors |
71.000
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31.200 |
20.300 |
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Cash & Bank Balances |
46.100
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60.400 |
39.700 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
111.300
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108.600 |
89.500 |
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Total
Current Assets |
722.300
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572.400 |
465.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
532.300
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469.400 |
436.300 |
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Provisions |
27.400
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28.000 |
25.100 |
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Total
Current Liabilities |
559.700
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497.400 |
461.400 |
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Net Current Assets |
162.600
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75.000 |
4.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.200 |
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TOTAL |
2203.300 |
1916.700 |
1661.400 |
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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 |
2914.500 |
2565.400 |
2285.600 |
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Other Income |
65.100 |
26.100 |
24.700 |
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Total Income |
2979.600 |
2591.500 |
2310.300 |
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Profit/(Loss) Before Tax |
487.000 |
450.800 |
426.700 |
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Provision for Taxation |
156.800 |
173.300 |
130.800 |
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Profit/(Loss) After Tax |
330.200 |
277.500 |
295.900 |
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Export Value |
416.562 |
359.265 |
NA |
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Expenditures : |
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Manufacturing Expenses |
540.500 |
489.300 |
418.500 |
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Raw Material Consumed |
837.700 |
667.400 |
586.100 |
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Increase/(Decrease) in Finished Goods |
[79.100] |
[49.200] |
[31.100] |
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Salaries, Wages, Bonus, etc. |
380.900 |
327.100 |
281.000 |
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Interest |
5.500 |
4.700 |
11.700 |
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Power & Fuel |
266.600 |
215.800 |
168.400 |
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Depreciation & Amortization |
674.500 |
613.200 |
573.600 |
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Other Expenditure |
519.000 |
474.800 |
464.600 |
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Total Expenditure |
2492.600 |
2140.700 |
1883.600 |
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KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.00 |
0.00 |
0.04 |
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Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.04 |
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Current
Ratio |
1.22 |
1.15 |
1.17 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.18 |
1.12 |
1.19 |
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Inventory |
6.73 |
6.89 |
7.38 |
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Debtors |
57.04 |
82.22 |
103.89 |
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Interest
Cover Ratio |
89.55 |
96.91 |
37.47 |
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Operating
Profit Margin(%) |
23.33 |
24.09 |
25.61 |
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Profit
Before Interest And Tax Margin(%) |
16.90 |
17.76 |
19.18 |
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Cash
Profit Margin(%) |
17.76 |
17.15 |
19.37 |
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Adjusted
Net Profit Margin(%) |
11.33 |
10.82 |
12.95 |
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Return
On Capital Employed(%) |
23.91 |
23.76 |
27.74 |
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Return
On Net Worth(%) |
16.03 |
14.48 |
19.41 |
LOCAL AGENCY
FURTHER INFORMATION
Turnover includes sales of trading items of Rs. 22.500
millions (Previous year Rs. 5.407 millions).
The Company exports increased to Rs. 461.254 millions from Rs. 397.621 millions
in previous year, recording a growth of 16%.
The company continue to maintain its leadership position as the country's
largest manufacturer of Disposable Syringes and Needles.
Profits:
The profit before tax is amounting to Rs. 487.117 millions as compared to
Rs.450.856 millions during the previous year which is higher by 8% . Profit
after tax during the year has earned Rs. 330.223 millions (Previous year Rs.
277.498 millions).
Subsidiary:
During the year M/s HMD Healthcare Limited. U.K. has provided its
authorised representative services to the company and associate companies. M/s
HMD Healthcare (USA) Inc. is a subsidiary of HMD Healthcare Limited, UK. In
accordance of Section 212 of the companies act, 1956, the statement of accounts
are annexed.
The company is in
trade terms with:
Ř Medical Institute, New Delhi, India
Ř Safdarjang Hospital, New Delhi, India
Ř Wilingdon Hospital, New Delhi, India
OTHER DETAILS:-
The company’s products are marketed through an established countrywide distribution network of 38 consignee agents and more than 1500 dealers to ensure ready availability even in remote areas and effective customer services support.
The company has achieved uniform quality with the help of the most economical mass-production technology harnessed through a dedicated production team in a harmonious industrial atmosphere as per requirement of ISO 9001 (EN 29001), EN 46001 and the European M.D.D. products carry CE Mark.
WEBSITE DETAILS:-
Subject was founded in 1957 and is a closely held company. Its
Primary markets are India, USA, Europe, Middle East and secondary markets-S.E.Asia,
South America. The company has seven plants in different locations in S.Asia
more than 2000 employees. Its Major products are Single use Syringes, Single
use Needles, I.V.Cannulas, Surgical Blades, Scalpels, Scalpvein Sets, Glass
Syringes, Blood Collection Set, and Nonreusable(AD)Syringes.
All the products are marketed through an established national and international
distribution network of more than 4000 dealers to ensure ready availability
even in remote areas, and effective customer service support. The company
marketing philosophy is to manufacture products of International standard and
attempt to offer them for the benefit of patients and doctors at prices that
any other local manufacturer will find difficult to meet, without compromising
on quality, to ensure market leadership.
Subject manufacturing philosophy is to achieve uniform quality with the help of
the most economical mass-production technology, harnessed through a dedicated
production team, in a harmonious industrial atmosphere as per requirement of
ISO 9001, ISO 13485 and the European M.D.D. Products carry CE Mark. The
corporate philosophy of preventive maintenance of human relations ensures that
there is no need for any labour union to exist.
The company group turnover is over 2500
millions and average compound growth rate for last 10 years is over 25% per
annum.
The company has state of the art world class manufacturing facilities to
manufacture a wide range of medical single use including syringes, needles,
cannulas, blades and others. It is one of the first few companies in Asia to
get CE certification along with ISO 9001 certification and ISO 13485
certification. The plants have also been inspected by the U.S.FDA. These
certifications have enabled the company's products to be accepted in highly
quality conscious American and European markets enabling it to compete on the basis of value addition and
not price.
At Ballabgarh, subject has a fully integrated plant for single use
syringes and needles. The total installed capacity of the plant, which has been
set up with a capital investment of over 20 million US$, has recently been
enhanced to production capacity of 2 billion units per annum of disposables,
ensuring global economies of scale. Besides this plant, subject has highly
automated plants located in Ballabgarh and Faridabad, with dedicated 'lines'
for manufacture of entire range of the company products. The plants also have
state-of-art design and engineering facilities for developing new products;
I.V.Cannulas, Nonreusable(AD) Syringes and Insulin Syringes.
Exports
Currently exports form
20% of the total sales turnover of the company .The products that are being
exported include Single use Syringes and Needles, Surgical blades, Scalpels, I.V.
Cannulas and Scalp Vein sets, for Surgical Blades/I.V.Cannulas/Scalp Vein Sets,
subject is exporting over 50% of its production. Out of the total exports of
subject , 50% is to USA and Western Europe. The company plans to increase exports to 30% by the year 2007.
As part of its export strategy, subject has set up a 100% subsidiary, HMD Healthcare Limited.,
in the United Kingdom and HMD
Healthcare (USA) Inc. in US. The company is also working on establishing
a distribution chain to sell the company branded products across Western
Europe.
Market Share and Distribution
In the Indian Single use Syringes market, which is nearly 1.5 Billion
units p.a., subject enjoys over 65% market share. Imports constitute 10% of
this market . In the Single use needle market , subject has a 70% market share,
followed by imported brands with a 25% market share. The size of the Single use
needles market is 2.5 billion units per annum. DISPOVAN is the dominant brand
in Indian market and has been able to maintain and increase its market share in
face of stiff competition from major multinationals and domestic challengers.
In the Indian market, subject has an established distribution network of
more than 4000 dealers for nearly all its products. This network ensures ready
availability of the company products even in most remote corners of the
country.
In overseas market the company has over 120 distributors in nearly 60
countries.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.42.97 |
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UK Pound |
1 |
Rs.84.72 |
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Euro |
1 |
Rs.66.99 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
9 |
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PAID-UP CAPITAL |
1~10 |
9 |
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OPERATING SCALE |
1~10 |
9 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
10 |
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--PROFITABILIRY |
1~10 |
8 |
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--LIQUIDITY |
1~10 |
9 |
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--LEVERAGE |
1~10 |
9 |
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--RESERVES |
1~10 |
9 |
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--CREDIT LINES |
1~10 |
9 |
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--MARGINS |
-5~5 |
--- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
YES |
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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 |
|
81 |
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 |
|
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 |
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