MIRA
INFORM REPORT
|
Report Date : |
27.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SRI KRISHNA DRUGS LIMITED |
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Registered Office : |
C-4, Industrial Area, Uppal, Hyderabad-500039, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.02.1985 |
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Com. Reg. No.: |
01-5315 |
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CIN No.: [Company
Identification No.] |
L24110AP1985PLC005315 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS00020G |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer, Importer, Exporter, Purchaser, Seller and Dealer of all
kinds of chemicals inorganic, organic all kinds of drugs. |
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 510000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. It continues to incur
losses. Payments are reported as slow but correct. The company can be considered normal for small to mediocre business at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
C-4, Industrial Area, Uppal, Hyderabad-500039, Andhra Pradesh, India |
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Tel. No.: |
91-40-27201101 / 02 / 03, 27204471 / 72 |
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Fax No.: |
91-40-27204470 / 27205432 |
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E-Mail : |
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Factory : |
Survey No. 57, Gokuldaham Kalan, Raikunta Building, Shamshabad Mandal
Ranga Reddy District-509218, Andhra Pradesh, India |
DIRECTORS
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Name : |
Mr. A. Gangadhar Rao |
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Designation : |
Chairman |
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Address : |
6-3-249/1, Road No. 1, Banjara Hills, Hyderabad – 500034 |
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Date of Appointment : |
27.08.1999 |
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Name : |
Dr. V. V. Subba Reddy |
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Designation : |
Managing Director |
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Address : |
3-33-39, Dhanalakshmi Colony, Mahendra, Hills Secunderabad |
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Date of Birth/Age : |
26.09.1942 |
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Date of Appointment : |
18.02.1985 |
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Name : |
Mr. C. Gopala Krishan Murthy |
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Designation : |
Director |
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Address : |
7-B, Sanjeeva Reddy Nagar, Hyderabad |
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Date of Appointment : |
06.05.1989 |
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Name : |
Mr. V. V. Krishna Reddy |
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Designation : |
Director |
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Address : |
3-33-39, Dhanalakshmi Colony, Mahendra, Hills Secunderabad |
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Date of Birth/Age : |
31.08.1966 |
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Date of Appointment : |
04.06.1998 |
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Name : |
Smt. V Satyavathi |
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Designation : |
Director |
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Address : |
3-33-39, Dhanalakshmi Colony, Mahendra, Hills Secunderabad |
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Date of Birth/Age : |
18.03.1945 |
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Date of Appointment : |
18.02.1985 |
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Name : |
Mr. Y. V. S. S. Murty |
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Designation : |
Director |
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Address : |
Flat No. 2, Prembagh Apartments, 3-4-490/A, Barkatpur, Hyderabad –
500027 |
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Date of Appointment : |
29.07.2002 |
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Name : |
Mr. R. R. R. Raju |
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Designation : |
Director |
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Address : |
Flat No. 202, kamalgiri Tower, S – 56 Madhuranagar 3, Hyderaad –
500038 |
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Date of Birth/Age : |
12.05.1939 |
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Date of Appointment : |
29.07.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 29.09.2005
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Names of Shareholders |
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No. of Shares |
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V V Subba Reddy – HUF |
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687190 |
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Sripad Securities Private Limited |
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357900 |
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V V Subba Reddy |
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14500 |
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V Satyavathi |
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649919 |
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V V Krishna Reddy |
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609375 |
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R Sunitha Reddy |
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238648 |
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Siva Kumari |
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10500 |
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R Sunitha Reddy |
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22500 |
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Subashree Investments Private Limited |
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72600 |
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V V Murlinath Reddy |
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11300 |
AS ON 29.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
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14.40 |
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Directors or relatives of directors |
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75.64 |
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Other top fifty shareholders |
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4.00 |
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Other |
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5.96 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Importer, Exporter, Purchaser, Seller and Dealer of all
kinds of chemicals inorganic, organic all kinds of drugs. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
About 120 |
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Bankers : |
Canara Bank, Overseas Branch, Damayanti, Chambers, Adarshnagar,
Hyderabad, Andhra Pradesh, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
L. B. Reddy and Company Chartered Accountants |
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Address : |
310, Emerald Apartments, H No. 6-3-713, Amruta Hills, Punjagutta,
Hyderabad-500082, Andhra Pradesh, India |
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Associates/Subsidiaries : |
CIN No.:
U72200AP2000PTC034518 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity shares |
Rs. 10/- each |
Rs. 60.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
3500000 |
Equity shares |
Rs. 10/- each |
Rs. 35.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
35.000 |
35.000 |
35.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
93.318 |
126.682 |
138.168 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
128.318 |
161.682 |
173.168 |
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LOAN FUNDS |
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1] Secured Loans |
142.911 |
163.596 |
119.897 |
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2] Unsecured Loans |
45.915 |
18.352 |
5.867 |
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TOTAL BORROWING |
188.826 |
181.948 |
125.764 |
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DEFERRED TAX LIABILITIES |
0.000 |
7.933 |
10.858 |
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TOTAL |
317.144 |
351.563 |
309.790 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
128.928 |
129.055 |
71.952 |
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Capital work-in-progress |
0.000 |
14.819 |
16.447 |
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INVESTMENT |
28.773 |
28.773 |
28.481 |
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DEFERREX TAX ASSETS |
0.470 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
76.556
|
77.369 |
45.814 |
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Sundry Debtors |
68.959
|
77.138 |
59.622 |
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Cash & Bank Balances |
10.220
|
2.221 |
1.519 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
52.825
|
44.739 |
127.373 |
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Total
Current Assets |
208.560
|
201.467 |
234.328 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
75.251
|
57.784 |
32.666 |
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Provisions |
7.779
|
9.358 |
8.752 |
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Total
Current Liabilities |
83.030
|
67.142 |
41.418 |
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Net Current Assets |
125.530
|
134.325 |
192.910 |
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MISCELLANEOUS EXPENSES |
33.443 |
44.591 |
0.000 |
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TOTAL |
317.144 |
351.563 |
309.790 |
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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 |
276.005 |
297.307 |
163.168 |
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Other Income |
16.531 |
23.847 |
7.839 |
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Total Income |
292.536 |
321.154 |
171.007 |
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Profit/(Loss) Before Tax |
[34.419] |
[6.218] |
7.115 |
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Provision for Taxation |
[29.269] |
[7.495] |
2.024 |
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Profit/(Loss) After Tax |
[5.150] |
1.277 |
5.091 |
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Expenditures : |
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Raw Material Consumed |
150.206 |
162.450 |
94.800 |
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Increase/(Decrease) in Finished Goods |
2.328 |
6.479 |
[5.491] |
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Salaries, Wages, Bonus, etc. |
33.373 |
28.536 |
12.853 |
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Managerial Remuneration |
2.414 |
2.703 |
2.414 |
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Payment to Auditors |
0.084 |
0.056 |
0.033 |
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Interest |
15.596 |
15.366 |
6.294 |
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Insurance Expenses |
2.475 |
2.340 |
1.751 |
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Power & Fuel |
28.121 |
23.203 |
15.367 |
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Depreciation & Amortization |
18.595 |
16.587 |
9.430 |
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Other Expenditure |
73.762 |
69.653 |
26.441 |
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Total Expenditure |
326.954 |
327.373 |
163.892 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
[1.76]
|
0.40 |
2.98 |
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Net Profit Margin (PBT/Sales) |
(%) |
[12.47]
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[2.09] |
4.36 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[10.20]
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[1.88] |
2.32 |
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Return on Investment (ROI) (PBT/Networth) |
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[0.27]
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[0.04] |
0.04 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.12
|
1.54 |
0.97 |
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Current Ratio (Current Asset/Current Liability) |
|
2.51
|
3.00 |
5.66 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
Subject is engaged in as Manufacturer, Importer, Exporter, Purchaser,
Seller and Dealer of all kinds of chemicals inorganic, organic all kinds of
drugs including Vitamin and Malarial, Anti Bacterials, Anti Fungals, Anti
Leprotics, Anti Asthmatics, Anti Spasmodics, Anti Amoebics, Anti Pyretics, Anti
Cancer, Anti Tubercular, Anti Gout, Anaesthetics, Diuretics, Tranquillisers and
Haematinics along with pharmaceutical Formulations based on the aforesaid drugs
either in the form of Powder, Tablets, Capsules, Injectables, Liquid or
Otherwise.
Bankers Charges
Report as per Registry
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Name of the company |
SRI KRISHNA
DRUGS LIMITED |
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Presented By |
Dr. V. V. Subba
Reddy, Managing Director |
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1) Date and description of instrument creating the change |
8th July 1996 Hypothecation of agreement for packing credit Hypothecation of agreement for cash credit |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 9.000
Millions as sublimit under OCC Rs. 10 Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Stock of Raw
Materials, Work In Progress, Finished Goods, Stores and Spares and such other
goods belonging to the borrower. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 21 %
p.a. or as stipulated by RBI / Canara Bank from time to time |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank Overseas Branch,
Hyderabad |
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6) Date and brief description of instrument modifying the charge |
Agreement of
Collateral security dated 11.10.2004 Sanction letter
dated 11.10.2004 issued by Canara Bank to Ensolvia Limited enhancing the
overdraft facility from Rs. 1.600 Millions to Rs. 4.750 Millions |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Collateral
security to Ensolvia Infotech Limited also extended to the enhanced overdraft
facility form Rs. 1.600 Millions to Rs. 4.750 Millions on the existing terms
and conditions thereby enhancing the overall limits of the company from Rs.
128.118 Millions to Rs. 131.268 Millions Additional
security : Plant and Machinery valued at Rs. 64.600 Millions held at Raikunta
Village excluding vehicles as at 31.03.2004 |
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This form is for |
Modification of
charge |
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Charge
identification number of the modified
|
90135593 |
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Corporate
identity number of the company |
L24110AP1985PLC005315 |
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Name of the
company |
SRI KRISHNA DRUGS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
C-4, Industrial Area, Uppal, Hyderabad-500039, Andhra Pradesh |
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Type of charge |
Immovable
Property Book Debts Movable Property |
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Particular of
charge holder |
Canara Bank, Overseas Branch, Damayanti, Chambers, Adarshnagar,
Hyderabad - 500063, Andhra Pradesh, India |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
common hypothecation agreement Link letter of
enhancement of credit facilities |
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Date of
instrument Creating the charge |
26.07.2007 |
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Amount secured by
the charge |
Rs. 17.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 10 % Extent and
Operation of the charge Discount of
Export Bills |
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Short particulars
of the property charged |
First charge on
the stocks and book debts of the company Charge on fixed
assets of the company Collateral
security on land and building and plant and machinery at St. No. 57, Raikunta
Village, Samshabad Mandal, Medak [Dist], Andhra Pradesh and at IDA Bollaram
Village, Jinnaram Mandal, Medam, A.P. Collateral
security of Plot No. 18.464 sq. mts. TS/RS No. 64 Serilingampally Village,
Ranagareddy Dist. |
|
Particulars of
the present modification |
Overall credit
facilities is enhanced from 216.500 Millions to 234.000 millions |
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.40.14 |
|
UK Pound |
1 |
Rs.80.41 |
|
Euro |
1 |
Rs.62.59 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
41 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|