MIRA INFORM REPORT
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Report Date : |
14.04.2011 |
Note : Given address could not be confirmed
IDENTIFICATION DETAILS
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Name : |
COVALENT LABORATORIES PRIVATE LIMITED |
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Registered
Office : |
D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073,
Andhra Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.09.2002 |
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Com. Reg. No.: |
01-39606 |
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CIN No.: [Company Identification
No.] |
U24230AP2002PTC039606 |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business
: |
Manufacturer of Cephalosporins. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
|
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 2000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track
records. Trade relations are reported
as fair. Business is active. Payments are reported to be usually correct and
as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, |
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Tel. No.: |
91-40-23738492/ 93/ 94 |
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Fax No.: |
91-40-23738496 |
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E-Mail : |
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Website : |
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Factory : |
Survey No. 374, |
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Tel. No.: |
91-8455-233853/ 233935 |
DIRECTORS
As on 30.06.2010
|
Name : |
Mr. Madireddy Narayana Reddy |
|
Designation : |
Managing Director |
|
Address : |
Plot No. 986, Road No. 50, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
20.02.1951 |
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Date of Appointment : |
13.09.2002 |
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Name : |
Mr. Madireddty Vijay Kiran |
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Designation : |
Whole Time Director |
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Address : |
Plot No. 986, Road No. 50, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
12.09.1981 |
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Date of Appointment : |
13.09.2002 |
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Name : |
Mr. Nandigala Prasanth |
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Designation : |
Director |
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Address : |
Plot No. 550, Road No. 19, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
14.04.1972 |
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Date of Appointment : |
15.05.2003 |
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Name : |
Mr. Mundla Naryan Reddy |
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Designation : |
Director |
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Address : |
Plot No. 15-A, Road No. 2, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
01.06.1951 |
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Date of Appointment : |
15.05.2003 |
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Name : |
Mr. Lingareddy Venkata Subash |
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Designation : |
Director |
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Address : |
Plot No. 435/a, Road No. 20, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
09.12.1971 |
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Date of Appointment : |
15.05.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2010
|
Names of Shareholders |
|
No. of Shares |
|
Madireddy Narayana Reddy |
|
1886500 |
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Maddireddy Vijay Kiran |
|
323000 |
|
Madireddy Narayana Reddy |
|
142000 |
|
M Varun |
|
43500 |
|
K Prabhakar Reddy |
|
5000 |
|
Mundla Narayana Reddy |
|
180000 |
|
Lakshmi Prasana |
|
180000 |
|
M Sudha |
|
360000 |
|
M Mahavishnu |
|
360000 |
|
Nandigala Prasanth |
|
430000 |
|
Nandigala Hemanth |
|
430000 |
|
L V Suinil |
|
300000 |
|
L Sunitha |
|
300000 |
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P Gargi |
|
90000 |
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L V Subhash |
|
300000 |
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L V Subha Reddy |
|
90000 |
|
|
|
120000 |
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K Harimohan Reddy |
|
77000 |
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K Subhashini Reddy |
|
43000 |
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G Jayaprada |
|
40000 |
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P Ravindra |
|
30000 |
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P Rajini |
|
30000 |
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Ch Ramya |
|
20000 |
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N V Reddy |
|
110000 |
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Teena |
|
110000 |
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Total |
|
6000000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.06.2010
|
Category |
|
Percentage of Holding |
|
Directors or relatives of directors |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cephalosporins. |
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Products : |
·
Cefixime ·
Cefpodoxime Proxetill ·
Cefuroxime Axetil ·
Cefdinir ·
Cefprozil ·
7-AVCA or 7-AVNA ·
7-APCA |
GENERAL INFORMATION
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Bankers : |
State Bank of |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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Name : |
M V Narayana Reddy And Company Chartered Accountant |
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Address : |
8-3-941, Flat No. 504, Vijayasree Apartments, Behind Chermas,
Atmeerpet, Hyderabad-500073, |
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Tel. No.: |
91-40-23743975/ 23744448 |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs.60.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs.60.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
60.000 |
60.000 |
40.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
457.054 |
284.458 |
214.170 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
517.054 |
344.458 |
254.170 |
|
|
LOAN FUNDS |
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|
|
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|
1] Secured Loans |
592.371 |
390.465 |
274.079 |
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2] Unsecured Loans |
34.605 |
34.880 |
59.246 |
|
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TOTAL BORROWING |
626.976 |
425.345 |
333.325 |
|
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DEFERRED TAX LIABILITIES |
49.265 |
16.396 |
16.173 |
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|
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|
|
|
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TOTAL |
1193.295 |
786.199 |
603.668 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
691.737 |
218.606 |
256.883 |
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Capital work-in-progress |
0.000 |
178.609 |
0.000 |
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|
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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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|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
342.151
|
230.146 |
217.188 |
|
|
Sundry Debtors |
638.820
|
474.060 |
354.318 |
|
|
Cash & Bank Balances |
59.278
|
41.759 |
115.661 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
152.123
|
136.223 |
118.084 |
|
Total
Current Assets |
1192.372
|
882.188 |
805.251 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
594.987
|
|
396.173 |
|
|
Other Current Liabilities |
36.295
|
42.691 |
|
|
|
Provisions |
59.572
|
36.392 |
62.293 |
|
Total
Current Liabilities |
690.854
|
493.257 |
458.466 |
|
|
Net Current Assets |
501.518
|
388.931 |
346.785 |
|
|
|
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|
|
|
MISCELLANEOUS EXPENSES |
0.040 |
0.053 |
0.000 |
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|
|
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|
|
|
|
TOTAL |
1193.295 |
786.199 |
603.668 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income (Gross Sales) |
2325.823 |
1937.227 |
1785.115 |
|
|
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Other Income |
NA |
NA |
NA |
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|
|
TOTAL (A) |
NA |
NA |
NA |
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|
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|
Less |
EXPENSES |
|
|
|
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|
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Administrative Expenses |
NA |
NA |
NA |
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Advertising Expenses |
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|
|
TOTAL (B) |
NA |
NA |
NA |
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
366.114 |
203.0827 |
262.810 |
|
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|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
61.596 |
61.662 |
37.368 |
|
|
|
|
|
|
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|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
304.518 |
141.420 |
225.442 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
39.481 |
34.517 |
26.199 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
265.037 |
106.903 |
199.243 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
92.441 |
36.635 |
71.086 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
172.596 |
70.268 |
128.157 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
284.458 |
214.190 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
457.054 |
284.458 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
28.77 |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.07
|
9.71 |
18.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.31 |
0.78 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.55
|
2.67 |
3.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.73
|
1.79 |
1.76 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS AND
BUSINESS PERFORMANCE:
Revenues increased form Rs. 1937.227 Millions in the previous year to Rs.
2325.823 Millions, at a growth rate of above 20%. The company’s export revenues
for the year increased from Rs. 874.400 Millions to Rs. 1006.500 Millions, at a
growth rate of 15.10%. Profit before tax increased form Rs. 106.903 Millions to
Res. 265.037 Millions registering a growth of 148%. The expansion of the
existing facilities, efficient use of resources and marketing strategy
contributed for improved turnover and profitability.
With commencement of commercial operation in the expanded manufacturing
facilities in the month of March 2010, the company is confident of achieving
even better results in the current year.
The company is in the process of achieving manufacturing excellence by improving
efficiency and reducing operating costs while maintaining quality. The company
is focusing on high value, high margin products and to enter into the
regulatory markets.
FUTURE PROSPECTS:
To achieve the goal of growing profitability, the company is in the
process of building up strong and diverse product portfolio. In this direction,
the company is developing the process and systems that will ensure sustainable
growth in the long term. Further, for expanding into key markets and for
improving high quality customer base, the company is striving hard to deliver
the products at a much higher level of quality as compared to its competitors.
The company is recognized as a reliable source by major overseas
customers and contine to use this as a leverage point to grow its business and
profitability.
INFRASTRUCTURE
Manufacturing
Facilities:
The expansion project was completed and the results of expansion will be
visible in the current year. The total Installed capacity was also
significantly increased.
During the year, the company has spent an amount of Rs. 333.229 Millions
on Capital expenditure towards the expansion project for enhancing the
production facilities. They have set up new production Block (Block III) as
well as utility facilities for manufacturing the existing products to meet the
demand from regulatory markets. This Block III has been commissioned and
commenced commercial operations effective from 1.03.2010.
The company has also acquired 8 acres of land in
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U24230AP2002PTC039606 |
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|
Name of the
company |
COVALENT LABORATORIES PRIVATE LIMITED |
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|
Address of the
registered office or of the principal place of business in |
D No. 8-3-677/18, S.K.D. Nagar, Yellareddyguda, Hyderabad-500073, |
||||||
|
This form is for |
Modification of
charge |
||||||
|
Charge
identification number of the charge to be modified |
90126847 |
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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 |
1) Memorandum of Deposit for creative of
further charge fro term loan overall limit where the initial charge is created
by way of mortgage by deposit of title deeds. 2) Supplemental Agreement of loan fro
increase in the overall limit. 3) Supplemental Agreement of hypothecation of
goods and assets for increase in the overall limit. 4) Supplemental Deed of Guarantee for increase
in overall limit. |
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Date of
instrument Creating the charge |
28.06.2010 |
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|
Amount secured by
the charge |
Rs.2008.300
Millions |
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|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
Terms of
Repayment As per Sanction
Letter Margin Cash Credit Raw Material: Domestic 25% Imported 25% SIP 25% FG 25% Receivables (Cover
Period 90 Days) 25% EPC Stocks 10% LC 10% BG 10% Extent and
Operation of the charge Primary: Charge on Stocks,
receivables and other current assets of the company. Collateral: 1. Extension of
charge on the fixed assets of the company both present and future. Others Limits enhanced
form Rs. 1318.300 Millions to Rs. 2008.300 Millions |
||||||
|
Short particulars
of the property charged |
Primary: Charge on Stocks,
receivables and other current assets of the company. Collateral: 1. Extension of charge
on the fixed assets of the company both present and future. |
||||||
|
Date of
instrument modifying the charge |
11.05.2009 |
||||||
|
Particulars of
the present modification |
Limits Enhanced
from Rs. 1318.300 Millions to Rs. 2008.300 Millions |
Fixed Assets:
·
Land
·
Building
·
Plant and Machinery
·
Lab Equipments
·
Electrical Installation
·
Office Equipments
·
Furniture and Fixture
·
Vehicles
·
Computer
·
Factory Equipments
AS PER WEBSITE
CORPORATE PROFILE:
Covalent Laboratories Private Limited, an ISO 9001:2000 accredited pharmaceutical
company and WHO GMP certified for all its products, is specialized in the
manufacturing of Cephalosporins.
It has a wide range of products and is fast expanding to meet the present and
future market demands for the high value, low volume drugs. Covalent
Laboratories manufactures the Active Pharmaceutical Ingredient (API) in bulk
quantities for both domestic and international markets. All the drugs
manufactured meets USP/BP/JP standards.
Covalent Laboratories, which is professionally managed and has well
equipped Quality Assurance and Quality Control Lab, focuses on higher
production standards for superior quality products that surpass the
international standards. Covalent Laboratories aims at reducing the production
cost to give the best price to its customers through its aggressive process
development lab.
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] 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.44.48 |
|
|
1 |
Rs.72.36 |
|
Euro |
1 |
Rs.64.42 |
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 |
NO |
|
--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 |
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 |
|
- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.