MIRA
INFORM REPORT
|
Report Date : |
02.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN PHARMA DISTRIBUTORS PRIVATE LIMITED |
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Registered
Office : |
No.38, K.H. Circle, Opposite Lalbagh Gate, Hosur Road, Bangalore – 560027,
Karnataka |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
03.12.1992 |
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Com. Reg. No.: |
08-13757 |
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Capital
Investment / Paid-up Capital : |
Rs.15.000 Millions |
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CIN No.: [Company Identification
No.] |
U85110KA1992PTC013757 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
The company engaged in the business of Wholesale Distribution of
Pharma Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
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 280000 |
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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 a well established company having satisfactory track. 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 for normal 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 : |
No.38, K.H. Circle, Opposite Lalbagh Gate, Hosur Road, Bangalore –
560027, Karnataka, India |
|
Tel. No.: |
91-80-41363232/ 3210 |
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Fax No.: |
91-80-41363200 |
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E-Mail : |
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Website : |
DIRECTORS
(AS ON 28.08.2009)
|
Name : |
Mr. Mahendra Bhoomal Chowhan |
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Designation : |
Director |
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Address : |
No.96/7, Unnati, 1st Cross, South End Road, Basavanagudi,
Bangalore – 560004, Karnataka, India |
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Date of Birth/Age : |
19.03.1956 |
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Date of Appointment : |
15.05.1998 |
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DIN No.: |
00092275 |
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Name : |
Mrs. Usha Mahendra Chowhan |
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Designation : |
Director |
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Address : |
No.96/7, Unnati, 1st Cross, South End Road, Basavanagudi,
Bangalore – 560004, Karnataka, India |
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Date of Birth/Age : |
29.12.1962 |
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Date of Appointment : |
17.05.2004 |
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DIN No.: |
00393175 |
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Name : |
Mr. Arvind Kumar Venkat |
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Designation : |
Nominee Director |
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Address : |
Flat No.107, Aparna Chandradeep Apartments, Road No.7, Banjara Hills,
Hyderabad – 500034, Andhra Pradesh, India |
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Date of Birth/Age : |
15.10.1959 |
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Date of Appointment : |
23.10.2008 |
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DIN No.: |
02304618 |
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Name : |
Mr. Premkumar Dakshinamurti Karra |
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Designation : |
Nominee Director |
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Address : |
Horizon Apartment, No.29 (Old no.15), Bawa Road, Abhiramapuram chennai
– 600018, Tamilnadu, India |
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Date of Birth/Age : |
12.01.1952 |
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Date of Appointment : |
03.09.2010 |
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Nominee Company : |
KEIMED Limited |
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DIN No.: |
00803203 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 28.08.2009)
|
Names of Shareholders |
Address |
No. of Shares |
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Mahendra Bhoomal Chowhan |
No.96/7, Unnati,
1st Cross, South End Road, Basavanagudi, Bangalore – 560004,
Karnataka, India |
6070 |
|
Usha Mahendra Chowhan |
No.96/7, Unnati,
1st Cross, South End Road, Basavanagudi, Bangalore – 560004,
Karnataka, India |
11780 |
|
Vinitha Chowhan |
No.96/7, Unnati,
1st Cross, South End Road, Basavanagudi, Bangalore – 560004,
Karnataka, India |
4110 |
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KEIMED Limited |
KEI Chambers,
10-3-316/A, Masab Tank, Hyderabad – 500028, Andhra Pradesh, India |
22857 |
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Total |
44817 |
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(AS ON 30.09.2009)
Equity Shares Break – Up
|
Category |
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Percentage |
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Bodies corporate |
|
51.00 |
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Directors or relatives of directors |
|
49.00 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company engaged in the business of Wholesale Distribution of
Pharma Products. |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· HDFC Bank Limited HDFC Bank House,
Senapati Bapat Marg, Lower Parel (West), Mumbai - 400013, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sundarajan and Harish Chartered Accountants |
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Address : |
No.13/2, 4th Cross, Nagappa Street, Palace Nagar, Bangalore
– 560003, Karnataka, India |
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PAN No.: |
AADFS9027Q |
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Subsidiaries : |
· Focus Medisales Private Limited CIN No.: U04231KA1999PTC025000 · Srinivasa Medisales Private Limited CIN No.: U33111KA2008PTC045022 |
CAPITAL STRUCTURE
(AS
ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
1500000 |
Equity Share |
Rs.10/- each |
Rs.15.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
1500000 |
Equity Share |
Rs.10/- each |
Rs.15.000 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
15.000 |
4.482 |
4.482 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
55.339 |
39.188 |
29.832 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
70.339 |
43.670 |
34.314 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
128.688 |
106.198 |
66.463 |
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2] Unsecured Loans |
0.000 |
20.000 |
45.000 |
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TOTAL BORROWING |
128.688 |
126.198 |
111.463 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
199.027 |
169.868 |
145.777 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13.503 |
15.696 |
12.058 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
10.000 |
0.200 |
0.200 |
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DEFERREX TAX ASSETS |
1.480 |
0.877 |
0.812 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
93.264
|
75.467 |
63.173 |
|
|
Sundry Debtors |
95.546
|
75.625 |
57.359 |
|
|
Cash & Bank Balances |
0.850
|
5.202 |
0.844 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
13.547
|
28.396 |
28.982 |
|
Total
Current Assets |
203.207
|
184.690 |
150.358 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
15.498
|
21.649 |
6.460 |
|
|
Other Current Liabilities |
2.815
|
3.971 |
7.566 |
|
|
Provisions |
10.850
|
5.975 |
3.625 |
|
Total
Current Liabilities |
29.163
|
31.595 |
17.651 |
|
|
Net Current Assets |
174.044
|
153.095 |
132.707 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
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|
|
|
|
TOTAL |
199.027 |
169.868 |
145.777 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2010 |
|
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TOTAL INCOME |
1256.755 |
1104.258 |
860.117 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
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TOTAL |
1217.078 |
1071.722 |
834.729 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
39.677 |
32.536 |
25.388 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
9.793 |
12.540 |
13.546 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
29.884 |
19.996 |
11.842 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
3.519 |
4.275 |
3.701 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
26.365 |
15.721 |
8.141 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
8.552 |
6.365 |
3.107 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
17.813 |
9.356 |
5.034 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.24 |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2010 |
|
PAT / Total Income |
(%) |
1.42
|
0.85 |
0.59 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.17
|
7.85 |
5.01 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.37
|
0.36 |
0.24 |
|
|
|
|
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.24
|
3.61 |
3.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.97
|
5.85 |
8.52 |
LOCAL AGENCY FURTHER INFORMATION
FORM 8:
|
Corporate
identity number of the company |
U85110KA1992PTC013757 |
|
Name of the
company |
VARDHMAN PHARMA
DISTRIBUTORS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
No.38, K H
Circle, Hosur Road, Bangalore – 560027, Karnataka, India |
|
This form is for |
Creation of charge |
|
Type of charge |
Movable property (not being pledge) Book debts Floating charge |
|
Particular of
charge holder |
HDFC Bank Limited HDFC Bank
Housesenapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra,
India |
|
Nature of
instrument creating charge |
Letter of
Hypothecation of Stocks and Bookdebts Memorandum
relating to Hypothecation of Machinery (both the above
pertain to the same charge) |
|
Date of
instrument Creating the charge |
12.08.2011 |
|
Amount secured by
the charge |
Rs.10.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of
Interests: As may be prescribed
by the bank from time to time Terms of
repayment: CC - running account repayable on demand WCDL - As per
bank sanction terms Margin: CC - 25% on
stocks and book debts (excluding debtors above 90 days) Extent and
Operations of the charge: Exclusive charge
by way of hypothecation on all the stocks, book debts and movable Plant and
Machinery of the company both present and future. Others: CC/WCDL -
Rs.147.500 Millions (existing limit Rs.137.500 Millions and fresh Rs.10.000
Millions now sanctioned) |
|
Particulars of
the property charged |
First exclusive
charge on all the stock in trade both present and future consisting of raw
materials, finished goods, goods in process of manufacturing and other
merchandise, all the present and future book debts, outstanding, monies,
receivable, claims and bills, all the movable plant and machinery present and
future consisting of furniture and fixtures, computers and accessories and
plant and equipments now stored/installed at company premises at No.38, K H
Circle, Hosur Road, Bangalore 560027 or at any other place. |
FIXED ASSETS:
· Computers and Accessories
· Furniture and Fixtures
· Leasehold Improvement
· Plant and Machinery
· Vehicles
· Goodwill
WEBSITE DETAILS:
PROFILE:
Company is a renowned player in the
pharmaceutical distribution field with its operations marked out exclusively
for the south Indian state of Karnataka. Being the flagship of the
multi-dimensional Unnati Group, they have carved a niche in the regional pharmaceutical
distribution scenario. With unmatched Customer Service, Professionalism and
Innovation, which are also their key performance drivers, they have established
a benchmark for service and operations in the regional Pharma Distribution
industry.
Customer
Base
At Company, they offer distribution
service to more than 4000 retailers across Karnataka, which is an ever-growing
phenomenon. Also covered under this umbrella are reputed semi/corporate
hospitals, organized retail chain and Govt. institutions. They offer the best
of services to their customers at all times and their tech-savvy approach
equips them to service the rising customer base with ease and efficiency.
Futuristic Outlook and Role of IT
The management team of Company has
always looked ahead of its times. This revolutionary outlook made the company
envisage the role of technology in pharmaceutical distribution at times when
the idea was unheard of. Mahendra Chowhan and his team looked at the
disorganized pharmaceutical distribution industry which had a chaotic
operational network. In order to adopt the use of Information Technology to
smoothen the company’s day–to-day operations, Company entered into a Joint
Venture with Nationwide Pharma-assist distributors in 1996. This JV has the distinction
of being the first of its kind in the history of Indian pharmaceutical
distribution. Operations were computerized and all transactions were
compulsorily made through the IT route. Efficient use of Information Technology
has revolutionized the entire working style at Company with all activities from
product procuring to final distribution being computerized, using the latest
software “PHARM ASSIST”, developed by one of the leading Software company,
C-Square Info Solutions Private Limited Bangalore, who has in-depth knowledge
in Pharma distribution. The same package was developed exclusively for VPDPL
and later being used widely in India.
As a part of the company’s initiative to adopt the latest technology, Vardhman regularly invests in software up gradation. The company switched from a DOS-based system to customized software based on Microsoft Windows. The streamlined operations at Company has not only impressed the distribution industry, but also major financial institutions who are more than eager to offer financing options. Over the years, Company has become a trend-setter in the pharma distribution industry.
HISTORY:
Company traces its past to the enterprising and futuristic outlook of one of its founders, Mahendra Chowhan whose hands-on experience and foresight has brought the company to its current established status.
Over the last 2 decades they have
been improving their operations, bringing in professionalism to imbibe system
controls, updating their business and obtaining reports everyday to know where
they stand.
The
Beginning
Having migrated from Rajasthan,
Mahendra Chowhan joined a Pharmaceutical distribution firm managed by his
relative. His twelve years in this firm provided him a rich experience and
above all a personal rapport with the numerous retailers he dealt with in the
course of his assignment.
Eventually with an ambition to own a
personal business, Mahendra Chowhan and his elder brother Jayanthilal Chowhan
established subject in July 1988. The firm had a small beginning with an
initial investment of two lakhs and an employee base of five staff members.
The Present
Hard work and dedication has ensured
that the company stands tall with Rs.500 million in annual turnover and a
140-member strong employee base. The dedication and commitment of the employees
has converted the enterprise from an individual-run to a corporation. The
entire team works as a family, a regular training session to upgrade the skills
and maximizing the potential in a better environment perks up the motive of an
employees, the attrition rate is very negligible.
Application of technology in all its operations has made company a path- breaker in the industry. It has revolutionized the manner in which the entire pharmaceutical distribution is done and has brought sophistication to its operations.
In a short span company has gained market attention and is now recognized as Best and No.1 distributor amongst their peers in the industry.
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.51.65 |
|
|
1 |
Rs.81.06 |
|
Euro |
1 |
Rs.69.51 |
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 |
YES |
|
--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.