MIRA
INFORM REPORT
|
Report Date : |
25.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
CIREX PHARMACEUTICALS LIMITED |
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Registered
Office : |
7-2-A2, Hetero Corporate, Industrial Estate, Sanathnagar, Hyderabad
500018, Andhra Pradesh, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
21.12.1990 |
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Com. Reg. No.: |
012119 |
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Capital
Investment / Paid-up Capital : |
Rs. 7.113 millions |
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CIN No.: [Company Identification
No.] |
U24239AP1990PLC012119 |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of Bulk Drugs and Drug Intermediates |
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No. of Employees
: |
150 Approximately |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1117812 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. General financial
position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 : |
7-2-A2, Hetero Corporate, Industrial Estate, Sanathnagar, Hyderabad
500018, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23704923 |
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E-Mail : |
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Website : |
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Factory : |
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DIRECTORS
AS ON 26.08.2010
|
Name : |
Dr. B. Partha Saradhi Reddy |
|
Designation : |
Director |
|
Address : |
Plot No.389, Road No.22/B, Jubilee Hills Check Post, |
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Date of
Birth/Age : |
06.03.1954 |
|
Date of
Appointment : |
01.04.2000 |
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|
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Name : |
Mr. P. Viswanadha Raju |
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Designation : |
Director Works |
|
Address : |
House No. 5601, Srila Builders, Hydernagar, Kukatpally, |
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Date of
Birth/Age : |
24.07.1955 |
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Date of
Appointment : |
05.02.1999 |
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Name : |
Mr. K. Ratnakara Reddy |
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Designation : |
Director |
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Address : |
Plot No.102, Sai Spurthi Apartments, Motinagar, Borabanda, |
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Date of
Birth/Age : |
03.08.1966 |
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Date of
Appointment : |
01.11.2001 |
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Name : |
Mr. Vamsi Krishna Bandi |
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Designation : |
Director |
|
Address : |
Plot No.389, Road, No.22 / B, Jubilee Hills Check Post, |
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Date of Birth/Age : |
31.07.1983 |
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Date of Appointment : |
11.09.2008 |
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Name : |
Mr. Male Srinivas Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
02.02.1973 |
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Date of Appointment : |
26.08.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.08.2010
|
Names of Shareholders |
No. of Shares |
|
B. Vamshi Krishna |
41470 |
|
M. Pera Reddy |
4250 |
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P. Viswanadha Raju |
2050 |
|
M. Madhavi |
500 |
|
M Karthikeya Reddy |
6700 |
|
K. Ratnakara Reddy |
1050 |
|
M. Krishna Sindhuri |
14000 |
|
Total |
70020 |
AS ON 26.08.2010
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
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|
Directors or relatives of directors |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Bulk Drugs and Drug Intermediates |
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Products : |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Bulk Drugs and Intermediates |
Qty (Kgs) |
125000 |
76109 |
Note:
Installed capacity are calculated based on
product mix and are as certified by the management an not verified by the
auditors, being technical matter.
GENERAL INFORMATION
|
No. of Employees : |
150 Approximately |
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Bankers : |
· State Bank of Hyderabad Industrial Estate,
Sanathnagar Branch, Sanathnagr, |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M. V. Narayana Reddy and Company Chartered Accountants |
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Address : |
504, Vijayasree Apartments, Behind Chermas Ameerpet, Hyderabad – 500
038, Andhra Pradesh, India |
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Tel. No.: |
91-40-23744448 / 23743975 |
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|
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Associates/Subsidiaries : |
·
Hetero Drugs Limited ·
Hetero Labs Limited ·
Symed Labs Limited ·
Chemipack India Private Limited |
CAPITAL STRUCTURE
AS ON 26.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000 |
Equity Shares |
Rs. 100 each |
Rs. 10.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
92230 |
Equity Shares |
Rs. 100 each |
Rs.9.223 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70020 |
Equity Shares |
Rs. 100 each |
Rs.7.002 millions |
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|
ADD: 22210 Equity Shares |
Rs. 5 each |
Rs. 0.111 million |
|
|
|
|
Rs. 7.113
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 |
7.113 |
7.113 |
7.113 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
272.340 |
248.439 |
193.957 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
279.453 |
255.552 |
201.070 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
272.160 |
201.788 |
254.703 |
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|
2] Unsecured Loans |
91.300 |
91.300 |
95.223 |
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|
TOTAL BORROWING |
363.460 |
293.088 |
349.926 |
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|
DEFERRED TAX LIABILITIES |
41.535 |
38.569 |
33.825 |
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TOTAL |
684.448 |
587.209 |
584.821 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
296.365 |
291.741 |
275.466 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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|
INVESTMENT |
0.100 |
0.100 |
0.100 |
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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 |
347.964
|
173.064 |
203.545 |
|
|
Sundry Debtors |
102.347
|
186.215 |
125.061 |
|
|
Cash & Bank Balances |
23.102
|
19.085 |
24.340 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
49.262
|
32.077 |
51.581 |
|
Total
Current Assets |
522.675
|
410.441 |
404.527 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
117.988
|
68.828 |
81.084 |
|
|
Other Current Liabilities |
15.751
|
33.694 |
14.134 |
|
|
Provisions |
0.952
|
12.551 |
0.054 |
|
Total
Current Liabilities |
134.691
|
115.073 |
95.272 |
|
|
Net Current Assets |
387.984
|
295.368 |
309.255 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
684.448 |
587.209 |
584.821 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
918.997 |
748.735 |
655.723 |
|
|
|
Other Income |
5.503 |
6.884 |
1.881 |
|
|
|
TOTAL (A) |
924.500 |
755.619 |
657.604 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
676.188 |
480.642 |
427.499 |
|
|
|
Manufacturing Expenses |
78.905 |
63.288 |
68.888 |
|
|
|
Employees Remuneration |
56.909 |
42.578 |
34.429 |
|
|
|
Administrative Expenses |
15.338 |
22.640 |
14.130 |
|
|
|
TOTAL (B) |
827.340 |
609.148 |
544.946 |
|
|
|
|
|
|
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|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
97.160 |
146.471 |
112.658 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES (D) |
40.924 |
43.427 |
27.194 |
|
|
|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
56.236 |
103.044 |
85.464 |
|
|
|
|
|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
18.049 |
16.907 |
14.772 |
|
|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
38.187 |
86.137 |
70.692 |
|
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|
|
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|
Less |
TAX (H) |
14.286 |
31.655 |
26.914 |
|
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|
PROFIT AFTER TAX
(G-H) (I) |
23.901 |
54.482 |
43.778 |
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4.539 |
4.057 |
5.279 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
25.200 |
54.000 |
45.000 |
|
|
BALANCE CARRIED
TO THE B/S |
3.240 |
4.539 |
4.057 |
|
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|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
341.00 |
778 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.58
|
7.21 |
6.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.15
|
11.50 |
10.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.66
|
12.26 |
10.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.33 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.93
|
1.74 |
2.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.88
|
3.56 |
4.24 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
Registered office of the company has been shifted from 8-3-166/7/1, Hetero House, Erragadda, Hyderabad – 500 018, Andhra Pradesh, India to the present address w.e.f. 31.07.2009
REVIEW
OF PERFORMANCE:
Despite challenging
conditions, the company recorded satisfactory results. Sales and Other Income
for the company stood at Rs. 924.501 millions as against Rs. 755.620 millions
in the previous year.
The company has earned a
net profit of Rs. 23.902 millions after providing for Taxes of Rs. 14.286
millions during the year under review, as against a net profit of Rs. 54.482
millions in the previous year after providing for Taxes of Rs. 31.656 millions.
Due to lower realisation and high input costs, the profits have come down when
compared to 2008-09
The company is well
positioned to improve the performance in 2010-11
FIXED ASSETS:
·
Land
·
Factory Building
·
Plant and Machinery
·
Electrical Equipments
·
Lab Equipments
·
Furniture
·
Office Equipments
·
Computers
·
Vehicles
FORM 8
|
Corporate identity
number of the company |
U24239AP1990PLC012119 |
|
Name of the
company |
CIREX PHARMACEUTICALS LIMITED |
|
Address of the
registered office or of the principal place of business in |
7-2-A2, Hetero Corporate, Industrial Estate, Sanathnagar, Hyderabad
500018, Andhra Pradesh, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
·
Immovable
property ·
Book
debts ·
Movable
property (not being pledge) ·
Floating
charge ·
Others |
|
Particular of
charge holder |
State Bank of Hyderabad Industrial Estate, Sanathnagar Branch, Sanathnagr, Hyderabad – 500 018, Andhra Pradesh, India Email: sanathnagar@sbhyd.co.in |
|
Nature of
instrument creating charge |
Agreement of
Hypothecations of Goods and Assets dated 17th February 2011 Memorandum of
Deposit of Title Deeds dated 10th March, 2011 |
|
Date of
instrument Creating the charge |
17.02.2011 |
|
Amount secured by
the charge |
Rs. 450.000 millions
|
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest As agreed between
the Banker and Company Terms of repayment On Demand Margin For C.C - Raw
Material, Stock in Process, Finished Goods 25% For Packing
Credit 25% For L.C and B.G
5% Extent and operation of the charge First charge on
all Present and Future current assets of the company Extension of
first charge on all Fixed Assets of the company, both present and future. EM of company's
factory land and bldg. |
|
Short particulars
of the property charged (Including location of the property) |
First charge on
all Present and Future Current Assets like Stocks, Raw Materials, Finished
Goods, Stock in Process, and Receivables of the company Extension of
first charge on all Fixed Assets of the company, both preset and future. EM of factory
land and bldg. Gundlamachanoor Village, Hatnoor Mandal, Medak Dist. |
|
Date of
instrument modifying the charge |
21.05.2009 |
|
Particulars of the
present modification |
Limits in Millions
Existing Enhanced CC (Hyp) 180.000 220.000 Letter of
Credit 145.000 190.000 Bank
Guarantee 35.000 40.000 TOTAL 360.000 450.000 |
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.44.94 |
|
|
1 |
Rs.71.89 |
|
Euro |
1 |
Rs.64.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
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 |
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.