MIRA
INFORM REPORT
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Report Date : |
24.11.2008 |
IDENTIFICATION DETAILS
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Name : |
BIOCHEM PHARMACEUTICAL INDUSTRIES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.11.2004 |
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Com. Reg. No.: |
11-149397 |
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CIN No.: [Company
Identification No.] |
U234230MH2004PLC149397 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM19812C |
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PAN No.: [Permanent
Account No.] |
AAACB4383N |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and Marketing of Pharmaceutical Products. |
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 2100000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Financial position of the company is satisfactory. Trade relations are
fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
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Tel. No.: |
91-22-22085534 |
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Fax No.: |
91-22-22082560 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mrs. Mangalaben Jashwantilal Shah |
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Designation : |
Whole –time –Director |
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Address : |
3/8, Avanti Apartment, |
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Date of Birth/Age : |
05.08.1934 |
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Date of Appointment : |
04.11.2004 |
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Name : |
Mr. Mayank Jashwantilal Shah |
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Designation : |
Managing Director |
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Address : |
318, Avanti Apartment, |
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Date of Birth/Age : |
21.01.1965 |
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Date of Appointment : |
04.11.2004 |
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Name : |
Mr. Rajendra Kaniyalal Sanghavi |
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Designation : |
Additional Director |
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Address : |
Sunita Niwas, 78, |
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Date of Birth/Age : |
04.02.1956 |
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Date of Appointment : |
23.06.2008 |
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Name : |
Mr. Suresh Gautamchand Kothari |
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Designation : |
Additional Director |
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Address : |
301, Shree Muktidham CHS Limited, Station Road, Opposite Saraswat
Bank, Kalwa (west), Thane-400605, |
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Date of Birth/Age : |
21.05.1966 |
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Date of Appointment : |
23.06.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.09.2007
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Names of Shareholders |
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No. of Shares |
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Jashwantlal S Shah |
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4500000 |
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Mayank J Shah |
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1500000 |
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Shreyans J Shah |
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712500 |
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Mangalaben J Shah |
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60000 |
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Biotech Pharmaceuticals Private Limited |
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7500 |
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Toyochem Pharma ( |
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7500 |
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Total |
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6787500 |
Equity Share Break up (Percentage
of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Bodies corporate (not mentioned above) |
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0.20 |
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Directors or relatives of directors |
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99.80 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Pharmaceutical Products. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
Union Bank of India Limited, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Anuj B Golecha Chartered Accountant |
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Address : |
404/405, |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
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2000000 |
Preference Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
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Total |
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Rs. 120.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7500000 |
Equity Shares |
Rs. 10/-
each |
Rs. 75.000
Millions |
Of the Above shares:
7500000 Equity Shares were allotted as fully
paid-up to the partner’s of M/S Biochem Pharmaceutical Industries after the
conversion of M/s Biochem Pharmaceutical Industries to Biochem Pharmaceutical
Industries Limited, In Accordance with the terms of part IX of the Companies
Act, 1956
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 |
75.000 |
75.000 |
75.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
345.788 |
190.300 |
32.960 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
420.788 |
265.300 |
107.960 |
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LOAN FUNDS |
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1] Secured Loans |
79.467 |
60.914 |
129.221 |
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2] Unsecured Loans |
229.456 |
78.789 |
133.107 |
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TOTAL BORROWING |
308.923 |
139.703 |
262.328 |
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DEFERRED TAX LIABILITIES |
0.267 |
0.389 |
0.360 |
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TOTAL |
729.978 |
405.392 |
370.648 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
74.108 |
33.491 |
143.146 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
82.217 |
23.897 |
12.232 |
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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 |
294.495
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228.369 |
140.242 |
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Sundry Debtors |
410.115
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266.035 |
181.041 |
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Cash & Bank Balances |
15.393
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12.744 |
5.830 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
164.393
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98.563 |
29.297 |
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Total
Current Assets |
884.396
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605.711 |
356.410 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
185.213
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190.664 |
132.384 |
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Provisions |
125.861
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67.560 |
10.800 |
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Total
Current Liabilities |
311.074
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258.224 |
143.184 |
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Net Current Assets |
573.322
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347.487 |
213.226 |
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MISCELLANEOUS EXPENSES |
0.331 |
0.517 |
2.044 |
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TOTAL |
729.978 |
4054.392 |
370.648 |
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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 |
1895.521 |
1485.302 |
370.008 |
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Other Income |
9.931 |
19.037 |
2.631 |
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Total Income |
1905.452 |
1504.339 |
372.639 |
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Profit/(Loss) Before Tax |
214.562 |
214.130 |
32.960 |
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Provision for Taxation |
59.075 |
56.789 |
0.000 |
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Profit/(Loss) After Tax |
155.487 |
157.341 |
32.960 |
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Expenditures : |
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Raw Material Consumed |
1345.795 |
1011.330 |
224.112 |
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Increase or decrease in finished goods,
work-in -progress |
0.000 |
0.000 |
11.910 |
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Salaries, Wages, Bonus, etc. |
14.042 |
13.994 |
63.600 |
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Managerial Remuneration |
3.480 |
3.480 |
1.295 |
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Payment to Auditors |
0.200 |
0.060 |
0.024 |
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Interest |
13.566 |
9.507 |
3.194 |
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Insurance Expenses |
0.000 |
0.013 |
0.000 |
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Power and Fuel |
0.000 |
0.000 |
4.102 |
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Depreciation & Amortization |
1.678 |
1.065 |
1.426 |
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Other Expenditure |
312.129 |
250.760 |
30.016 |
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1690.89 |
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327.769 |
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Total Expenditure |
1690.890 |
1290.209 |
339.679 |
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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 |
(%) |
8.16
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10.46 |
8.85 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.32
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14.42 |
8.91 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
135.37
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33.49 |
6.59 |
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Return on Investment (ROI) (PBT/Networth) |
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0.51
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0.81 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.47
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1.49 |
3.76 |
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Current Ratio (Current Asset/Current Liability) |
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2.84
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2.35 |
2.49 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
BIOCHEM PHARMACEUTICAL INDUSTRIES LIMITED |
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Presented By |
Union Bank of India Limited, |
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1) Date and description of instrument creating the change |
Letter of
Hypothecation of Bills (SD-17) Dated 10th January, 2006 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.500 Million |
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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 |
Purchase from or
negotiate a bill or bills of exchange drawn or accepted or endorsed against
goods and / or merchandise or shipping or other documents and / or hold such
or any other bill or bills of exchange and / or document for collection on
the Borrower’s account under lien to the Bank |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of 10.75% p.a. for the CP Limit of Rs. 50.000 Millions Company. |
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5) Name and Address and description of the person entitled to the charge. |
Union Bank of
India, Princess Street Branch, Devkran Mansion, Samdas Gandhi Marg, Prrincess
Street, Mumbai-400002, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
N.A |
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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. |
N.A |
Fixed Assets:
·
Building
·
Land and Building
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Plant and Machinery
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Furniture and Fixtures
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Lift
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Air Conditioner
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Electrical Fittings
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Motor Car
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Scooter
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Tempo Delivery Van
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Computer
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Land and Building Unit
AS PER WEBSITE
OVERVIEW:
Subject is Pharmaceutical manufacturer that
is engaged in the research and development, manufacturing and marketing of pharmaceutical
products.
Subject was established in 1959
to manufacture quality pharmaceutical products in
Subject was the first to introduce Ampicillin in
Subject is the sole licensee of Kyowa Hakko Company
Limited,
The
1. To develop and market therapeutically - correct, clinically - relevant,
efficacious and patient - friendly formulations for the prescription market.
2. To forge a strong relationship with the medical fraternity by
adopting high ethical standards in all transaction
3. To provide its consumers a range of high quality products at affordable
prices.
INFRASTRUCTURE:
THE MARKETING THRUST
Marketing and sales team are the vital communication link between the Company
and the Market. Biochem has always given the priority to the task of creating,
maintaining and expanding its marketing and sales team.
THE SALES TEAM
Subject has a strong sales team comprising 350 professionally trained Medical
Representatives spread all over
THE DISTRIBUTION NETWORK
Effective reach and distribution is a necessity to any marketing operation.
Biochem products are distributed to Retail Chemists through a network of
Distributors and Stockiest.
THE PEOPLE
The success of any Company lies in its people. Biochem has a well - knit team
of highly, motivated loyal and dedicated professionals in the marketing and
other functional areas. All provided with an environment conducive to
creativity and self - development.
THE PLANT
Biochem's manufacturing facilities at
R and D Department looks after development of new formulations and
improving current formulation process. Strict Quality Control is maintained
from in - process to completion of process by highly qualified technical staff.
A large warehouse with climate control takes and care storage of the products.
The plant has been conceived and built keeping in mind the broad
outlines and principles of MCA
A.
POTENTIAL PRODUCTION FACILITY
1. Washing : All containers and closures are washed under aseptic
controlled environment. Total Area maintained under class 10,000 with terminal
Hepa filters of 0.3 microns to avoid any foreign particles and fibres entering
this area. Special gowning procedure is laid down for workmen entering this
area. Vials are washed by hot distilled water by fully automatic machine
wherein no human contact is required.
Continous circulation loop system for DM and distilled water and pendants are
provided for supplying water and other utilities to various departments
including manufacturing
2. Sterilization : Rubber plugs are washed and processed in a
special bung processor which is a totally closed chamber, starting from
distilled water wash up to steam sterilization and vacuum drying by PLC
controlled cycle (fully automatic). Special steam filters of 0.3 microns are
provided to ensure quality of steam entering the chamber for sterilization. Dry
Heat sterilizer is also provided with Hepa filter module to ensure sterile air
entering the process chamber along with PLC pre set cycle for sterilization and
depyrogenation.
3. Manufacturing : The manufacturing areas are totally segregated
with independent air handling systems to maintain the desired room conditions.
Terminal Hepa filters are provided in all areas including the sterile
corridors. Differential pressure gradients are maintained for each and every
room with continuous monitoring. High speed, fully automatic machines are
installed to avoid any manual operations from filling to labeling stage online.
Human contact is completely avoided in the manufacturing operations until it
leaves the sterile areas. Constant in-process quality control measures like
weight variation for powders, bulk solution assay and volume variation for
liquids are carried out at regular intervals Quality assurance department
ensures full compliance to cGMP at all stages.
ORAL PRODUCTION FACILITY
1. Totally separate facilities for BetaLactum, Anti-cancer and General
Antibiotics/antibacterial are provided. Independent air handling systems with
terminal 3 micron filters are provided. High speed, fully automatic machines are
installed for capsulation as well as tableting avoiding human contact to the
product. Constant in process quality control checks are carried out at regular
intervals. Quality Assurance department ensures compliance to cGMP at all
stages.
2. Packing : Totally separate packing lines are provided for
each category of products. On line checking and final pack weighing by precise
Electronic Scales are carried out to detect and avoid any shortages. Line
clearance is ensured by QA before every change over of batch and on product to
avoid mix up.
C. QUALITY ASSURANCE AND CONTROL
A separate quality assurance department has been set up to constantly supervise
each and every production stage and to ensure cGMP compliance as well as
in-house standard operating procedures. The quality control department has been
equipped with all latest instrument like HPLC, Gas Chromatography,
Spectrophotometer, Humidity chambers etc., for complete in-house quality
control. All Reference Standards are provided from the respective Pharmacopeial
Conventions like USP, BP, IP etc., to ensure strict compliance during analysis.
Calibration and Validation of all instruments are carried out at regular
intervals to ensure reproductively of the results obtained.
D. STORAGE Every raw material as well as finished product is
stored under controlled temperature conditions as required and stipulated for
the product. Special air-conditioned warehouses have been created for the same.
Cold storage rooms are also provided for products requiring low temperature
storage conditions. Computerized inventory management ensures precise and
updated information at any point of time.
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.50.09 |
|
|
1 |
Rs.74.90 |
|
Euro |
1 |
Rs.63.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
|