MIRA INFORM REPORT

 

 

Report Date :

28.05.2011

 

IDENTIFICATION DETAILS

 

Name :

SMRUTHI ORGANICS LIMITED

 

 

Registered Office :

165-A Balaji Bhavan, 1st Floor, Railway Lines, Solapur-413001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

11.07.1989

 

 

Com. Reg. No.:

11-052562

 

 

Paid-up Capital :

Rs. 38.154 Millions

 

 

CIN No.:

[Company Identification No.]

L24119PN1989PLC052562

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PNES10689A

 

 

PAN No.:

[Permanent Account No.]

AACCS5562Q

 

 

Legal Form :

A public limited liability company. The company’s shares are listed on Stock Exchanges

 

 

Line of Business :

Manufacturer of Bulk Drugs and Drug Intermediates and Marketing the same in the Domestic as well as International markets since last ten years.

 

 

No. of Employees :

50 (approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (48)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

 

 

 

 

Maximum Credit Limit :

USD 700000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be correct and as per commitments.

 

The company can be considered good for normal business dealings at usual trade 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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

165-A Balaji Bhavan, 1st Floor, Railway Lines, Solapur-413001, Maharashtra, India

Tel. No.:

91-217-2310268 / 2620367 / 2310267

Fax No.:

91-217-2601112 / 2620268 / 2310268

E-Mail :

info@smruthiorganics.com

spr-smruthi2@sancharnet.in

Website :

www.smruthiorganics.com

 

 

Head Office :

108, Shivshakti Apartments, B-Wing, G. D. Ambedkar Road, Mumbai – 400 012, Maharashtra

Tel. No.:

91-22-2412 9211 / 2412 9442

Fax No.:

91-22-2415 5452

E-Mail :

solbby@bom5.vsnl.net.in

 

 

Factory 1 :

Plot No. 273/274, M.I.D.C., Akkalkot Road, Solapur – 413 006, Maharashtra, India

Tel. No.:

91-217-2651264 / 2653016

 

 

Factory 2 :

Plot No. A-27, M.I.D.C. Area, Chincholi, Post Kondi, Taluka Mohol, District Solapur, Maharashtra, INDIA

Tel. No.:

91-217-2257491 /92 / 93 / 94

 

 

DIRECTORS

 

As On 31.03.2010

 

Name :

Mr. E. Purushotham

Designation :

Chairman and Managing Director

Date of Birth/Age :

53 Years

Qualification :

M.Sc (Org. Chem)

Experience :

7Years

 

 

Name :

Mrs. E. Vaishnavi

Designation :

Director

 

 

Name :

Mr. E. Niranjan Rao

Designation :

Director (Operations)

 

 

Name :

Mr. Nagender Yerram

Designation :

Director

 

 

Name :

Mr. P. K. Kumaran

Designation :

Director

 

 

Name :

Mr. R. Ramaswaamy

Designation :

Director

 

 

Name :

Mr. J. H. Ranade

Designation :

Director

 

 

Name :

Mrs. E. Swapnil

Designation :

Director (Business Development)

 

  

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

2,164,650

56.73

Bodies Corporate

82,000

2.15

Any Others (Specify)

240,581

6.31

Directors/Promoters & their Relatives & Friends

240,581

6.31

Sub Total

2,487,231

65.19

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

2,487,231

65.19

(B) Public Shareholding

 

 

(1) Institutions

 

 

(2) Non-Institutions

 

 

Bodies Corporate

172,733

4.53

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

920,459

24.12

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

188,625

4.94

Any Others (Specify)

46,382

1.22

Clearing Members

2,616

0.07

Non Resident Indians

43,766

1.15

Sub Total

1,328,199

34.81

Total Public shareholding (B)

1,328,199

34.81

Total (A)+(B)

3,815,430

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

3,815,430

-

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Bulk Drugs and Drug Intermediates and Marketing the same in the Domestic as well as International markets since last ten years.

 

 

Products :

Product Description

ITC Code

Diloxanide Furoate

2942.00

Norfloxacin

2942.00

Ciprofloxacin

2942.00

Pefloxacin

2942.00

Metformin HCL

2942.00

Amlodipine

2942.00

Chlorhexidine Base

2942.00

Zidouvdine

2942.00

Carbidopa

2942.00

Enrofloxacin

2942.00

Phthaloyl Amlodipine

2942.00

 

 

PRODUCTION STATUS (As On 31.03.2010)

 

Particulars

 

 

Unit

Installed Capacity

Diloxanide Furoate

 

 

MT

2420

Norfloxacin

 

 

MT

2420

Ciprofloxacin

 

 

MT

2420

Pefloxacin Mesylate

 

 

MT

2420

Metformin Hcl.

 

 

MT

2420

Enrofloxacin

 

 

MT

2420

Zidovudine and Others

 

 

MT

2420

 

 

 

GENERAL INFORMATION

 

No. of Employees :

50 (approximately)

 

 

Bankers :
  • State Bank of India - Industrial Finance Branch, World Trade Centre, Mumbai - 400 005, Maharashtra, India
  • State Bank of India - Station Road Branch, Solapur - 413 001, Maharashtra, India

 

 

Facilities :

SECURED LOANS

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

FCNR Term Loan S. B. I. I. F Branch, Mumbai

35.899

67.965

Working Capital Loan From S. B. I, IFB Mumbai and SBI, Solapur

146.499

218.722

SBI Factors and Commercial Services Private Limited, Mumbai

4.022

29.344

Axis Bank Limited – Card Loan (Mercedes Benz, Indica)

3.151

0.000

Total

189.571

316.031

 

Notes:

Term Loan - Secured by equitable mortgage created on all immovable properties located at Plot No. 273 and 274 MIDC, Akkalkot Road, Solapur 413 006 and Plot No. A-27, MIDC Chincholi, Solapur - 413255, Flat No.5, Rahul Apartment, Solapur and also hypothecation of all movable properties for both present and future.

 

Working Capital - Secured by hypothecation of Inventories, Book Debts and also by equitable mortgage created on all immovable properties as collateral security. Bank - State Bank of India Industrial Finance Branch Mumbai.

 

 

UNSECURED LOANS

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

Deferral Sales Tax Loan availed from SICOM Ltd., Mumbai,Under Package Scheme of Incentive of 1993.

46.948

48.823

Deferral Sales Tax Loan availed from SICOM Ltd., under Package Scheme of Incentive of 1993 under Expansion

35.515

34.263

Other Unsecured Loans - Directors

20.506

20.798

Unsecured Loans - Others

5.000

0.000

Total

107.969

103.884

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Ashok Madgundi and Company

Chartered Accountant

Address :

210/ A/ 1, Sakhar Peth, Near Kanya Prashala, Solapur-413005, Maharashtra, India

Tel. No.:

91-217-626540 / 620403

 

 

Associates/Subsidiaries :
  • Smruthi Chemicals and Intermediates
  • Trade Point 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs.50.000 Millions

5000000

Non-Covertible Cumulative Redeemable Preference Shares

Rs. 10/- each

Rs. 50.000 Millions

 

Total

 

Rs. 100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3815430

Equity Shares

Rs.10/- each

Rs.38.154 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2007

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

38.154

38.154

38.154

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

136.923

90.360

80.411

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

175.077

128.514

118.565

LOAN FUNDS

 

 

 

1] Secured Loans

189.571

316.031

320.283

2] Unsecured Loans

107.969

103.884

99.995

TOTAL BORROWING

297.540

419.915

420.278

DEFERRED TAX LIABILITIES

21.746

21.399

21.099

 

 

 

 

TOTAL

494.363

569.828

559.942

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

280.163

269.801

244.190

Capital work-in-progress

2.432

2.431

2.431

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
315.842
333.955
304.478

 

Sundry Debtors
159.899
129.008
125.909

 

Cash & Bank Balances
23.255
18.012
14.801

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
64.999
41.253
34.983

Total Current Assets
563.995

522.228

480.171

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

306.075
203.554
142.732

 

Other Current Liabilities
0.000
0.000
0.000

 

Provisions
48.663
22.740
25.318

Total Current Liabilities
354.738

226.294
168.050

Net Current Assets
209.257
295.934
312.121

 

 

 

 

MISCELLANEOUS EXPENSES

2.511

1.662

1.200

 

 

 

 

TOTAL

494.363

569.828

559.942

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

 

 

Other Income

 

 

 

 

 

TOTAL                                     (A)

1269.782

745.105

567.439

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

939.938

495.582

346.056

 

 

Manufacturing Expenses

103.756

86.461

84.054

 

 

Administrative Expenses

104.264

77.896

60.343

 

 

Increase or Decrease in Stock

(31.747)

(5.472)

(8.260)

 

 

TOTAL                                     (B)

1116.211

654.467

482.193

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

153.571

90.638

85.246

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

42.770

40.900

34.405

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

110.801

49.738

50.841

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

38.252

31.210

29.876

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

72.549

18.528

20.965

 

 

 

 

 

Less

TAX                                                                  (I)

17.058

3.610

2.077

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

55.491

14.918

18.888

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

68.259

59.802

49.247

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

5.549

1.492

2.010

 

 

Dividend and Tax for the year

8.928

4.464

6.696

 

 

Provision of I.T

0.000

0.505

0.451

 

 

IT Refund

0.000

0.000

(0.824)

 

BALANCE CARRIED TO THE B/S

109.273

68.259

59.802

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

257.394

271.173

259.389

 

TOTAL EARNINGS

257.394

271.173

259.389

 

 

 

 

 

 

Earnings Per Share (Rs.)

14.60

3.92

4.97

 

 

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

1st Quarter

30.09.2010

2nd Quarter

31.12.2010

3rd Quarter

31.03.2011

4th Quarter

Net Sales

390.720

368.110

383.480

424.120

Total Expenditure

338.770

317.620

325.930

377.330

PBIDT (Excl OI)

51.950

50.490

57.550

46.790

Other Income

0.350

0.430

0.900

7.780

Operating Profit

52.300

50.920

58.460

54.570

Interest

8.120

9.890

10.900

11.410

PBDT

44.180

41.030

47.560

43.160

Depreciation

9.730

9.880

9.980

10.230

Profit Before Tax

34.450

31.150

37.580

32.930

Tax

9.600

8.600

9.800

11.110

Profit After Tax

24.850

22.550

27.780

21.820

Net Profit

24.850

22.550

27.780

21.820

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.37

2.00

3.33

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
8.59

2.34

2.89

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.41

0.14

0.18

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
3.73

5.03

4.96

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.59

2.31

2.86

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

History:

 

Smruthi Organics was incorporated in Jul.'89 as a private limited company and was subsequently converted into a public limited company in Feb.'95. It was promoted by E Purushotham and Shankarrao R Myakal. 

 
 The company set up a plant at Solapur, Maharashtra, to manufacture bulk drugs like diloxanide furoate (inst. cap. : 24 tpa) and sulphadiazine (inst. cap. : 36 tpa). It expanded its activities and product range in 1993-94 by manufacturing metronidazole benzoate, tinidazole, paracetamol and norfloxacin.

 
 
 The company exports furoic acid to the UK market. In 1995, it proposed to expnd its product range and set up an additional plant at Chincholi, Maharashtra, for the manufacture of additional bulk drugs like ciprofloxacin and ranitidine HCl. The company issued shares to the public in Dec.'95, to part-finance the project. 

 
 In 1993, the company received the district award as the Best Small Scale Entrepreneur in Solapur in the Year 1993, from the Government of Maharashtra.

 

FINANCIAL RESULTS:  

The Company has posted all-round improvement in sales turnover, production and profitability and has achieved an important mile-stone of crossing Rs. 1000.000 Millions mark in sales turnover for the first time in the history of the company.

 

a) Sales: - The Gross Sales for the year amounted to Rs. 1264.967 millions as against Rs. 743.737 millions for the previous year, showing impressive increase of 70.08 %. The turnover rate per unit quantity was also higher, with 1455 MTs manufactured in 2009-10 as against 1345 MTs in the previous year. This can be attributed to addition of high value products to our product portfolio.

 

b) Exports: Exports for the year ended on 31.03.2010 stood at Rs.257.394 millions as compared to Rs. 271.173 millions for the year ended on 31.03.2009. The Company has registered marginal drop of 5.35% in Exports compared to the previous year.

 

Directors hope that the efforts initiated by the management for improving sales mix and control over expenses shall yield yet better results in terms of sales turnover and consequently profitability.

 

MANAGEMENT DISCUSSION AND ANALYSIS

Business of the Company:

The company is engaged in the manufacturing of Active Pharmaceutical Ingredients (API) fine and speciality chemicals etc. through synthetic organic chemical technology. The company has adopted a two pronged strategy to advance as a significant player in the pharmaceutical industry:

 

1. Marketing of company products in regulated markets

 

2. Marketing of company services in contract manufacturing space

With the receipt of USFDA and EMEA approvals in 2007, company has taken an aggressive stand on expanding business in regulated markets. The company currently owns 4 drug master files (DMF) for the products VIZ, Amlodipine Besilate, Carbidopa, Metformin Hydrochloride and Norfloxacin. We are also registered as site of manufacture for 4 other drug master files owned by our contract manufacturing clients. The company is exploring forward integration opportunities through marketing of Metformin HCl granules.

 

Future outlook:

The company's investment in the regulated markets is bearing fruits now and would continue to contribute strongly over the next few years. The company sees growth being driven by contract manufacturing business in the midterm. New products are being added to the contract manufacturing pipeline by existing as well as new customers. Commercial supply of an additional contract manufacturing product will start in FY 2010-11. With addition of 2 new products to the pipeline this year, the contract manufacturing project base has expanded to a total of 7. Smruthi is now uniquely positioned in the contract manufacturing space with a constant stream of products reaching commercial scale every year.

 

The company is expanding its regulated markets product portfolio by filing 3 DMFs in both EU and USA. The focus this year for the company is to expand its customer base by adding new customers. In addition, the company is taking substantial initiatives to market its existing products in newer untapped markets of Europe and Latin America. We expect these additions to bring substantial growth in volumes of our products in the coming years.

 

 

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31.03.2011

(Rs. In Millions)

 

 

Quarter

Current Accounting

Sr.

Particulars

ended

Year ended

No.

 

on

on

 

 

31.03.2011

31.03.2011

 

 

(Audited)

(Audited)

 

GROSS SALES

432.718

1622.928

1

a) Net Sales / Income from Operations

424.118

1566.430

 

b) Other operating  income

0.00

0.00

 

TOTAL  INCOME (a+b)

424.118

1566.430

2

Expenditure

 

 

 

a)  (Increse)/decrease in-Stock in trade and work in progress

43.131

32.900

 

b)  Consumption of Raw Material

270.998

1128.953

 

c) Purchase of Traded Goods

 

 

 

d) Employees cost

22.204

70.412

 

e)  Depreciation

10.226

39.817

 

f)  Other expenditure

41.000

127.377

 

TOTAL EXPENDITURE (a+b+c+d+e+f)

387.559

1399.459

3

Profit from Operations before Other Income,Interest & Exceptional Items               (1-2)

36.559

166.971

4

Other Income

7.779

9.461

5

Profit before Interest & Exceptional Items         ( 3+4 )

44.338

176.432

6

Interest

11.410

40.313

7

Profit after Interest but before exceptional Items ( 5-6 )

32.928

136.119

8

Exceptional items

0.00

0.00

9

Profit from ordinary activities before tax (7+8)

32.928

136.119

10

Less : Expenses (net) related to prior periods

0.00

0.00

11

Profit before tax

32.928

136.119

12

Tax expense

 

 

 

Current Income Tax

6.059

32.659

 

Defered Tax Liability

5.051

6.451

13

Net Profit from ordinary activities after tax

21.817

97.008

14

Extra ordinary items                                      (net of tax expenses )

0.00

0.00

15

Net Profit for the period

21.817

97.008

16

Paid-up equity share capital                  ( Face value of Rs.10/- each )

38.154

38.154

17

Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year

0.00

226.089

18

Basic EPS (Face value                 Rs.10/- per share )

5.72

25.43

 

Diluted EPS (Face value               Rs. 10/- per share )

5.72

25.43

19

Public Shareholding

 

 

 

 Number of Shares

1328199

1328199

 

 Percentage of Shareholding

34.81%

34.81%

20

Promoters and promoter group

 

 

 

Shareholding

 

 

 

a) Pledged/Encumbered

 

 

 

-Number of Shares

Nil

Nil

 

-Percentage of shares (as a% of the total shareholding of promoter and promoter group)

 

 

 

-Percentage of shares (as a % of the total share capital of the company)

 

 

 

b) Non-encumbered

 

 

 

-Number of Shares

2487231

2487231

 

-Percentage of shares (as a% of the total shareholding of promoter and promoter group)

100.00%

100.00%

 

-Percentage of shares (as a % of the total share capital of the company)

65.19%

65.19%

 

 

Disclosure of assets and liabilities as per clause 41(I) (ea) of the listing agreement

for the f year ended 31.03 2011

(Rs. In Millions)

Year Ended

Year Ended

 

31.03.2011

 

Audited

 

 

Sources of Funds

 

a) Capital

38.200

b) Reserves and Surplus

226.000

c)Loan Funds

314.500

d)Deferred Tax Liability

28.200

 

 

TOTAL. (a to d)

606.900

 

 

Application of Funds

 

a)Fixed Assets

321.700

b) Investments

1.000

c)Current Assets, Loans and Advances

 

i)Inventories

3103.00

ii) Sundry Debtors

238.200

iii) Cash and Bank Balances

17.000

iv) Loans and Advances

91.800

d)Less : Current Liabilities and Provisions

 

i) Liabilities

298.100

ii) Provisions and Other Liabilities

75.900

 

 

e)Net Current Assets (c-d)

283.400

 

 

f)Miscellaneous Expenditure

0.800

(to the extent not written off/adjusted)

 

Deferred Revenue Expenditure

 

TOTAL (a+b+e+f)

606.900

 

Notes:                         

  1. The Company operates in one segment only namely - " Bulk Drugs and Drug Intermediates".
  2. The Company has made provision of Income-Tax as per the Income-Tax Act for the Quarter after considering EOU Benefits.                                  
  3. The above results have been reviewed by Statutory Auditor and the Audit Committee and have been taken on record at the meeting of the Board of Directors held on 28.04.2011.
  4. Previous period's figures have been regrouped / rearranged wherever necessary.     
  5. Investor complaints as on 31.03.2011 - Nil; complaints received during the quarter- Nil;       

 

Fixed Assets:

 

  • Factory Land
  • Agricultural Land
  • Building
  • Ownership Flats
  • Plant and Machinery
  • Electrical Installation/ Equipments
  • Vehicles
  • Office Equipments
  • Computer
  • Furniture and Fixture
  • Laboratory Equipments
  • Other Factory Equipments

 

AS PER WEBSITE

 

Profile:

 

The core competency is multi-step organic synthesis and large scale manufacturing of organic molecules. The focus has always been API for the regulated markets. They have been part of successful contract manufacturing and custom synthesis agreements with leading European, American and Japanese customers. They are currently expanding the R and D to become a one-stop solution provider from concept to execution for all API including, but not restricted to, the following:

 

  1. Process Development
  2. Process Optimization
  3. Process Validation
  4. Analytical Methods Validation
  5. Regulatory Support and DMF Registrations
  6. Commercial Manufacturing

 

 

The constant endeavor to improve operations and systems has contributed to the growth. The quality systems and facilities are approved by USFDA, EU – GMP and ISO 9001:2000.

They encourage operational transparency with customers, which complements to confidence building for stronger relationships. Customer satisfaction is the highest priority and they constantly strive on optimizing delivery times of all the services

 

Business Development

 

Contract Research and Manufacturing Services (CRAMS):


Smruthi can manage a potential molecule's entire development life cycle up to commercialization through rigorous planning and proper execution. Smruthi can independently or in conjunction with the customer develop optimized synthesis process, perform scale-up and process validations, compile DMF and provide the customer with regulatory support for finished formulation dossier registration. The engagement can be either on an FTE or deliverables basis. They respect absolute confidentiality in such sensitive relationships enhancing smooth exchange of information.

 

Contract Research:


Although a subset of the CRAMS model, contract research for synthesis process development has been very rewarding engagement for Smruthi and the customers. Just like the CRAMS model, it could be on FTE or deliverables basis.

 

Contract Manufacturing:


Again as a subset of the CRAMS model, Smruthi's strength in large volume manufacturing has enabled us to become a strong player in the contract manufacturing space. Smruthi's low cost manufacturing capability, marketing authorizations in regulated markets and strong regulatory support, make us an ideal partner for the contract manufacturing requirement.

 

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 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.45.21

UK Pound

1

Rs.74.30

Euro

1

Rs.64.40

 

 

 

SCORE & RATING EXPLANATIONS

 

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--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

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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

-

 

 

 

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.