MIRA
INFORM REPORT
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Report Date : |
20.11.2008 |
IDENTIFICATION DETAILS
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Name : |
VENKATARAMA CHEMICALS LIMITED |
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Registered Office : |
36/A, Vengal Rao Nagar, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.12.1981 |
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Com. Reg. No.: |
01-3322 |
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CIN No.: [Company
Identification No.] |
U24110AP1981PLC003322 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDV01088D / HYDV01094C |
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PAN No.: [Permanent
Account No.] |
AAACV6830A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Chlorheniramine Maleate, Brompheniramine Maleate and Mepyramine |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 260000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 40 days |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. The company
has some accumulated losses. It’s payments are reported as slow but correct. It can be considered for small to mediocre business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
36/A, Vengal Rao Nagar, |
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Tel. No.: |
91-40-23801486 / 23700915 / 23814863 |
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Fax No.: |
91-40-23700731 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Factory : |
Survey No. 50, |
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Area : |
Owned – 4.37 acres |
DIRECTORS
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Name : |
Mr. V S N Murthy |
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Designation : |
Managing Director |
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Address : |
36/A, Vengal Rao Nagar, |
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Date of Birth : |
23.03.1936 |
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Date of Appointment : |
15.12.1981 |
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Name : |
Mr. V Ramakrishna Rao |
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Designation : |
Director |
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Address : |
Yeditha, East Godavari District, |
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Date of Birth : |
06.10.1930 |
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Date of Appointment : |
15.12.1981 |
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Name : |
Mr. M |
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Designation : |
Director |
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Address : |
Plot No. 9, Srinivas Colony, |
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Date of Birth : |
06.01.1931 |
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Date of Appointment : |
15.12.1981 |
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Name : |
Mr. M Mani Bhupathy |
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Designation : |
Director (Technical ) |
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Address : |
Flat No. 303, |
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Date of Birth : |
15.09.1941 |
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Date of Appointment : |
23.11.1984 |
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Name : |
Mr. U. Amarnath |
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Designation : |
Director |
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Address : |
36/A, Vengal Rao Nagar, |
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Date of Birth : |
17.04.1963 |
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Date of Appointment : |
28.08.1995 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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V. Surayanarayana Murthy |
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50132 |
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M. M. Bhupathy |
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10000 |
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B. Meenakshi |
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2000 |
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V. Ramakrishna Rao |
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17000 |
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T. Ram Murthy |
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56554 |
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T. Laksmi |
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38566 |
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V. Styanarayana |
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11108 |
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V. Manikyamba |
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19600 |
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T. Laskmi |
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5400 |
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B. Ramakrishna Chowdary |
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33840 |
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V. Lakshmi |
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6400 |
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U Amarnath |
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24960 |
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U. Sitamaha Lakshmi |
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19600 |
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A. Madhuri |
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23340 |
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B. Gayatridevi |
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6100 |
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M. Satyavenkatnarayana |
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400 |
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N. Suryanarayan |
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400 |
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N. Lakshmi |
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400 |
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TOTAL |
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325800 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Chlorheniramine Maleate, Brompheniramine Maleate and Mepyramine |
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Products : |
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Exports : |
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Countries : |
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GENERAL INFORMATION
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No. of Employees : |
About 40 |
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Bankers : |
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Facilities : |
Secured Loans
Note: - cash credit from the banks are secured by a charge on all the inventories and book debts. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B N & Company Chartered Accountants |
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Address : |
8-2-120/112/A/14, Road No. 9. Jubilee Hills, |
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Associates/Subsidiaries : |
Harika Drug Private Limited 36/A, Vengal Rao Nagar, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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325800 |
Equity Shares |
Rs. 10/- each |
Rs. 3.258 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 |
3.258 |
3.258 |
3.258 |
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2] Share Application Money |
0.000 |
62.338 |
0.000 |
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3] Reserves & Surplus |
62.338 |
3.132 |
62.338 |
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4] (Accumulated Losses) |
[1.784] |
0.000 |
[1.314] |
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NETWORTH |
63.812 |
68.728 |
64.282 |
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LOAN FUNDS |
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1] Secured Loans |
9.305 |
0.000 |
2.874 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
9.305 |
0.000 |
2.874 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
73.117 |
68.728 |
67.156 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6.200 |
3.974 |
4.371 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
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9.810 |
6.716 |
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Sundry Debtors |
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11.108 |
12.655 |
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Cash & Bank Balances |
76.751
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0.051 |
0.021 |
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Other Current Assets |
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11.964 |
30.977 |
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Loans & Advances |
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38.779 |
22.188 |
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Total
Current Assets |
76.751
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71.712 |
72.557 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
9.834
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9.519 |
9.772 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
9.834
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9.519 |
9.772 |
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Net Current Assets |
66.917
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62.193 |
62.785 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Profit and Loss account |
0.000 |
2.561 |
0.000 |
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TOTAL |
73.117 |
68.728 |
67.156 |
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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 |
35.801 |
37.585 |
40.355 |
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Other Income |
18.908 |
49.237 |
12.909 |
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Total Income |
54.709 |
86.822 |
53.264 |
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Profit/(Loss) Before Tax |
53.933 |
86.160 |
[1.531] |
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Provision for Taxation |
0.777 |
0.662 |
-- |
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Profit/(Loss) After Tax |
53.156 |
85.498 |
[1.531] |
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Earnings in Foreign Currency : |
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Export Value |
0.213 |
0.206 |
21.972 |
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Expenditures : |
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Increase/(Decrease) in Finished Goods |
[1.063] |
[1.131] |
0.000 |
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Salaries, Wages, Bonus, etc. |
5.897 |
4.682 |
0.000 |
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Payment to Auditors |
0.015 |
0.015 |
0.000 |
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Interest |
0.120 |
0.185 |
0.154 |
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Insurance Expenses |
2.282 |
1.054 |
0.000 |
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Power & Fuel |
2.168 |
2.532 |
0.000 |
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Depreciation & Amortization |
0.698 |
0.578 |
0.630 |
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Other Expenditure |
43.814 |
78.245 |
54.051 |
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Total Expenditure |
53.931 |
86.160 |
54.835 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
97.16
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98.48 |
[2.87] |
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Net Profit Margin (PBT/Sales) |
(%) |
150.65
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229.24 |
[3.79] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
65.02
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113.84 |
[1.99] |
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Return on Investment (ROI) (PBT/Networth) |
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0.85
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1.37 |
[0.02] |
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Debt Equity Ratio (Total Liability/Networth) |
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0.30
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0.20 |
0.20 |
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Current Ratio (Current Asset/Current Liability) |
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7.80
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7.53 |
7.42 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
VENKATARAMA
CHEMICALS LIMITED |
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Presented
By |
Mr. V. S. N.
Murthy, Managing Director |
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1) Date and description of instrument creating the change |
27.04.1993 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Short Term Loan
Rs. 8.900 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 |
Current assets :
of the company in the form of
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4) Gist of the terms and conditions and extent and operation of the charge. |
1st
charge on current assets and 2nd
charge on fixed assets of the company |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Balkampet |
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6) Date and brief description of instrument modifying the charge |
10.09.1993
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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. |
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Corporate
identity number of the company |
U24110AP1981PLC003322 |
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Name of the
company |
VENKATARAMA CHEMICALS LIMITED |
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Address of the registered
office or of the principal place of
business in |
36/A, Vengal Rao Nagar, |
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This form is for |
Creation of Charge |
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Type of charge |
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Particular of
charge holder |
State Bank of |
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Nature of
instrument creating charge |
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Date of
instrument Creating the charge |
10.08.2006 |
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Amount secured by
the charge |
Rs. 8.400 Millions
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Brief of the
principal terms an conditions and extent and operation of the charge |
Limits – CC Rs.
3.400 Millions LC : Rs. 4.000 Millions and BG : Rs. 1.000 Millions ROI : 1.50 %
above SBAR with a minimum of 12.25 % p.a. Margin : Raw Materials,
Semi finished goods, finished goods and components / consumables / spares –
25 % Domestics
Receivables – 40 % Letter of credit
– 25 % and Bank Guarantee : 25 % |
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Description of
the property charged indicating whether it is a charged on |
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Particulars of
the property charged |
Hypothecation of
Stocks and Receivables Equitable mortgage
on Survey No. 50, Kardanoor Village, Patishanapoor, Panchayat Sangareddy
Taluq and Medak District to an Extent of AC 4.37 Guntas |
The company is engaged in manufacture of Bulk Drug and Intermediates.
Subject is a Small Scale Industries Unit.
Fixed Assets
- Land and
Building
- Lab Equipment
- Furniture and
Fixture
- Fire Fitting
Equipment
- Motor Car
- Motor Cycle
- Fax Machine
- Xerox
Machine
- Air
Conditioner
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.49.74 |
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|
1 |
Rs.74.37 |
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Euro |
1 |
Rs.62.78 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
2 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
3 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
28 |
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 |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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