MIRA INFORM REPORT

 

 

 

Report Date :

01.10.2008

 

IDENTIFICATION DETAILS

 

Name :

VIVEK PHARMACHEM (INDIA) LIMITED

 

 

Registered Office :

NH – 8, Chimanpura, Amer, Jaipur – 302 004, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

29.01.1990

 

 

Com. Reg. No.:

005283

 

 

CIN No.:

[Company Identification No.]

U24232RJ1990PLC005283

 

 

Legal Form :

A Closely held Public Limited Company.

 

 

Line of Business :

Manufacturer of Pharmaceuticals Formulations.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 426000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having steady business. Trade relations are fair. Payments are reported as slow but correct.

 

However, the company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office/ Factory :

NH – 8, Chimanpura, Amer, Jaipur – 302 004, Rajasthan, India.

Tel. No.:

91-141-2530771-73

Mobile No.:

91-9414060500

Fax No.:

91-141-2530774/ 2603657

E-Mail :

mca@automationjpr.net

Website :

vivek_pharma@sancharnet.com

 

 

DIRECTORS

 

Name :

Mr. Raj Kumar Gupta

Designation :

Director

Address :

C – 136, Dayanand Marg, Tilak Nagar, Jaipur, Rajasthan, India.

Date of Birth/Age :

09.11.1963

Date of Appointment :

23.02.1995

Date of Ceasing :

07.03.2005

 

 

Name :

Mr. Kuldeep Gupta

Designation :

Managing Director

Address :

C – 136, Dayanand Marg, Tilak Nagar, Jaipur, Rajasthan, India.

Date of Birth/Age :

28.11.1936

Date of Appointment :

29.01.1990

 

 

Name :

Mr. Navdeep Gupta

Designation :

Whole Time Director

Address :

C – 136, Dayanand Marg, Tilak Nagar, Jaipur, Rajasthan, India.

Date of Birth/Age :

25.03.1966

Date of Appointment :

29.01.1990

 

 

Name :

Mrs. Savitri Gupta

Designation :

Director

Address :

C – 136, Dayanand Marg, Tilak Nagar, Jaipur, Rajasthan, India.

Date of Appointment :

07.03.2005

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 08.06.2005

 

Names of Shareholders

No. of Shares

Mr. Kuldeep Gupta

478527

Mr. Kuldeep Gupta HUF

91870

Mr. Navdeep Gupta

542527

Mr. Navdeep Gupta HUF

91870

Mr. Raj Kumar Gupta

572703

Mrs. Savitri Gupta

551493

Mrs. Aruna Gupta

324867

Mrs. Neelam Gupta

324666

Ms. Vrinda Gupta

22300

Orchid Medicare Private Limited

134000

Ms. Ayushi Gupta

20510

Pacific Global Limited

88500

Mr. Vinay Gupta

280000

Total

3523833

 

As on 29.09.2007

 

Equity share breakup (percentage of total equity)

Category 

Percentage

Directors or relatives of directors

100.000

Total

100.000

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Pharmaceuticals Formulations.

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

About 120

 

 

Bankers :
  • Bank of Baroda

Bombay House,

M.I. Road, Jaipur – 302 001,

Rajasthan, India.

 

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Jai Prakash Gupta

Chartered Accountants

Address :

C-45, Greater Kailash Colony, Lal Kothi, Tonk Road, Jaipur – 302 015, Rajasthan, India.

 

 

Associates/Subsidiaries :

NIL

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- Each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

3523833

Equity Shares

Rs.10/- Each

Rs.35.238 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

35.238

35.238

2] Share Application Money

 

7.000

7.000

3] Reserves & Surplus

 

42.888

27.862

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

85.126

70.100

LOAN FUNDS

 

 

 

1] Secured Loans

 

104.541

87.174

2] Unsecured Loans

 

40.073

35.790

TOTAL BORROWING

 

144.614

122.964

DEFERRED TAX LIABILITIES

 

12.694

16.718

 

 

 

 

TOTAL

 

242.434

209.782

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

94.103

117.547

Capital work-in-progress

 

83.813

17.113

 

 

 

 

INVESTMENT

 

0.001

0.001

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

20.707

20.906

 

Sundry Debtors
 

85.173

96.910

 

Cash & Bank Balances
 

4.188

0.908

 

Other Current Assets
 

3.329

2.718

 

Loans & Advances
 

9.010

33.696

Total Current Assets
 

122.407

155.138

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

56.556

78.160

 

Provisions
 

1.334

1.857

Total Current Liabilities
 

57.890

80.017

Net Current Assets
 

64.517

75.121

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

242.434

209.782

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2007

31.03.2006

Sales Turnover

 

258.064

208.654

Other Income

 

1.306

12.710

Total Income

 

259.370

221.364

 

 

 

 

Profit/(Loss) Before Tax

 

11.258

12.426

Provision for Taxation

 

5.287

--

Profit/(Loss) After Tax

 

5.971

12.426

 

 

 

 

Expenditures :

 

 

 

 

Raw Material Consumed

 

126.781

110.612

 

Increase/(Decrease) in Finished Goods

 

(4.161)

0.000

 

Salaries, Wages, Bonus, etc.

 

7.119

1.005

 

Consumption of stores and spare parts

 

41.420

0.000

 

Managerial Remuneration

 

0.000

0.360

 

Payment to Auditors

 

0.039

0.062

 

Insurance Expenses

 

0.307

0.000

 

Power & Fuel

 

3.933

0.000

 

Depreciation & Amortization

 

23.611

15.219

 

Other Expenditure

 

49.063

81.680

Total Expenditure

 

248.112

208.938

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2007

31.03.2006

PAT / Total Income

(%)
 

2.30

5.61

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

4.36

5.96

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

3.75

4.29

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.13

0.18

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

2.38

2.90

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.11

1.94

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Name of the company

VIVEK PHARMACHEM (INDIA) LIMITED

Presented By

Mr. Raj Kumar Gupta, Director

1) Date and description of instrument creating the change

Dated 11.12.2004

  • Hypothecation Agreement
  • General Form of Guarantee
  • Supplemental Memorandum of Entry dated 11.12.2004

2) Amount secured by the charge/amount owing on the securities of charge

Rs.22.500 Millions

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

  • Hypothecation of plant and machinery and other fixed assets related to Wind Mill at Sheel Ki Doongri, Harshnath Hill, District Sikar.

 

  • Corporate Guarantee given by M/s Sunrise Shelters Private Limited to securing the overall limit of the company.

 

  • Equitable Mortgage extended on land along with construction and structures thereon situated at Plot No. 16, 17, 18 and 19 at Nathmal Ji Ka Katla, Agra Road, Jaipur, each plot standing in the name of M/s Sunrise Shelters Private Limited.

 

  • Equitable Mortgage extended on factory land along with construction and structures thereon situated at Village Chimanpura, Amer, Jaipur standing in the name of company. 

4) Gist of the terms and conditions and extent and operation of the charge.

Interest: Interest on Term Loan @2.00% below BPLR i.e. 8.50% p.a. with monthly rests subject to change by Bank/ RBI from time to time.

 

Repayment: in 96 monthly installment of Rs.0.235 Million of which last is Rs.0.175 Million with interest commencing from six month after date of disbursement.

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda

M.I. Road,

Jaipur

6) Date  and brief description of instrument modifying the charge

NA

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.

NA

 

This form is for

Modification of charge

Charge identification number of the modified 

80042862

Corporate identity number of the company

U24232RJ1990PLC005283

Name of the company

VIVEK PHARMACHEM (INDIA) LIMITED

Address of the registered office or of the principal place of  business in India of the company

NH – 8, Chimanpura, Amer, Jaipur – 302 004, Rajasthan, India.

Type of charge

Immovable Property

Movable Property

Particular of charge holder

Bank of Baroda

Bombay House,

M.I. Road, Jaipur – 302 001,

Rajasthan, India.

E-Mail: miroad@bankofbaroda.com

Nature of description of the instrument creating or modifying the charge

  • Supplemental Composite Agreement of Hypothecation of Goods, Book debts, Moveable Machinery and Vehicles.
  • Corporate Guarantee executed by Sunrise Shelters Private Limited dated 16.04.2008
  • Supplementary Memorandum of Entry of Sunrise Shelters Private Limited dated 16.04.2008
  •  Supplementary Memorandum of Entry dated 16.04.2008

Date of instrument Creating the charge

16.04.2008

Amount secured by the charge

Rs.174.200 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest: Rate of interest has been revised as under;

  • On working capital limits @1.50% over BPLR i.e. 14.25% with monthly rests.
  • On term loans 0.75% over BPLR i.e. 13.50% p.a. with monthly rests.

 

Terms of Repayment:

  • C/C Limits Payable on demand
  • Term Loan of Rs.22.500 Millions is repayable in quarterly installment of Rs.0.703 Million commencing from 31.03.2010 and ending on 31.03.2017.

 

Margin:

  • On Plant and Machinery @25%
  • On Building @30%

 

Extent and Operation of the charge: This charge will be treated as modification charge of original charge created on 16.04.2008.

Short particulars of the property charged
  • Hypothecation on Immovable Assets of the company.
  • Equitable Mortgage extended on Land and Building situated at NH-8, Chimanpura and at Village Tenkasi, Tamilnadu.
  • Equitable Mortgage extended on property situated at Plot No. 16 to 19 at Nathmal Ji Ka Katla, Agra Road, Jaipur.
  • Equitable Mortgage extended on property situated at EPIP, Kartholi, Bari Brahmana, Jammu in the name of the company.

Date of latest modification prior to the present modification

18.03.2006

Particulars of the present modification 

  • Extension of Mortgage to secure credits limits/ Term Loan of Rs.174.200 Millions (from Rs.173.705 Millions) by deposit of title deed/ documents on 16.04.2008 in respect of company’s Immovable Properties situated at  NH-8, Chimanpura.
  • Equitable Mortgage extended on property of Sunrise Shelters Private Limited  situated at Plot No. 16 to 19 at Nathmal Ji Ka Katla, Agra Road, Jaipur.
  • Hypothecation of Goods/ Book debts/ Moveable Machinery (present/ future) of the company’s unit at Chimanpura and Jammu (J and K).

 

 

HISTORY:

 

They are establish pharmaceutical manufacturer from last twenty-five years. Their all products are well accepted throughout the country. They are working for Ranbaxy Laboratories Limited, Karnataka Antibiotic and Pharmaceuticals Limited, Cadila Pharmaceuticals Limited, Zydus-Cadila, Wockhart Limited, Intas Pharma Limited, Dr.Reddys Lab. Limited, Aristro Pharma Limited, and Pacific Global Limited.


To achieve global standards and international requirements they have established a new manufacturing facility situated at NH-8, Chimanpura, Amer, Jaipur on state-of-art technology and equipment to manufacture tablets, capsules, dry and liquid Injectable, dry and oral liquid and powders in a self contained dedicated unit as per the international regulatory requirements just two year back. Their plant has been certified for WHO-GMP and ISO-9001:2000 certifications.


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 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.46.94

UK Pound

1

Rs.85.57

Euro

1

Rs.67.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--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

 

 

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions