MIRA
INFORM REPORT
|
Report Date : |
07.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
SMS PHARMACEUTICALS LIMITED (w.e.f. 12.04.2004) |
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|
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Formerly Known
As : |
SMS PHARMACEUTICALS PRIVATE LIMITED |
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Registered
Office : |
Plot No.19-III, Room No.71, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
14.12.1987 |
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Com. Reg. No.: |
55-008066 |
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Paid-up Capital
: |
Rs. 100.152 Millions |
|
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|
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CIN No.: [Company Identification
No.] |
L24239AP1987PLC008066 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDSO1258F |
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PAN No.: [Permanent Account No.] |
AADCS2221D |
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Legal Form : |
A Public Limited Liability Company. The Company Shares are Listed on
The Stock Exchange. |
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Line of Business
: |
Manufacturer of active pharma ingredients and pharmaceutical
intermediates. |
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No. of Employees : |
570 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 8700000 |
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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 a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular 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 |
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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 |
INFORMATION PARTED BY
|
Name : |
Mr. Rajendra Prasad |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-40-66288888 |
LOCATIONS
|
Registered Office / Corporate Office : |
Plot No.19-111, Room No.71, |
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Tel. No.: |
91-40-66288888 |
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Fax No.: |
91-40-23551402/01 |
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E-Mail : |
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Website : |
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Area : |
10000 Sq. ft. |
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Location : |
Owned |
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Factory 1 : |
IDA Kazipally (Village), Jinnaram Mandal,
Medak (District) – 502319, Andhra Pradesh, India |
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Tel. No.: |
91-8458-277067 |
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Fax No.: |
91-8458-277069 |
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E-mail : |
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Factory 2 : |
Plot No. 24 and 24B, S.V. |
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Tel. No.: |
91-40-65986691 |
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E-Mail : |
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Factory 3 : |
Plot No. D-63,
Phase-1, I.D.A., Jeedimetla, Hyderabad-500 055, |
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Tel. No.: |
91-40-23096380 |
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E-Mail : |
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Factory 4 : |
Plot No. 66/B-D, Phase-1, IDA Jeedimetla, Hydrabad-500 055, |
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Tel. No.: |
91-40-23095151 |
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Fax No.: |
91-40-23735639 |
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E-Mail : |
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Factory 5 : |
Sy. No. 296/7/4, I.D.A., Via Miyapur, |
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Tel. No.: |
91-40-64547975 |
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E-Mail : |
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Factory 6 : |
Plot No. 28, |
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Tel. No.: |
91-8924-236066/77 |
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Fax No.: |
91-8924-236055 |
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E-Mail : |
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Factory 7 : |
Sy. No. 160,
161, 163 to 167, Kandivalasa (Village), Poosapatirega (Mandal), Vijayanagaram
– 535204, Andhra Pradesh, India |
|
Tel. No.: |
91-8922-258051/53/54 |
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Fax No.: |
91-8922-258052 |
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E-Mail : |
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Corporate
Research and Development : |
S.No. 186, 189,
190, |
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Tel. No.: |
91-8418-257337/8 |
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Fax No.: |
91-8418-257469 |
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E-mail : |
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In House
Research and Development : |
C-23, Industrial
Estate, Santhnagar, Hyderabad – 500018, Andhra Pradesh, India |
DIRECTORS
As On 31.03.2011
|
Name : |
Mr. Potluri Ramesh Babu |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Plot No.265 Q, Road No.12, Jubilee Hills, Hyderabad-500033, |
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Date of Birth/Age : |
01.10.1958 |
|
Date of Appointment : |
30.08.1990 |
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DIN No : |
00166381 |
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Name : |
Mr. TVVSN Murthy |
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Designation : |
Vice- Chairman and Joint Managing Director |
|
Address : |
Plot No.10-C, “C” Type, Road No.8, Film Nagar, Hyderabad-500033, |
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Date of Birth/Age : |
10.02.1960 |
|
Date of Appointment : |
30.08.1990 |
|
DIN No : |
00465198 |
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|
|
Name : |
Mr. Achanta Pitcheswara Rao |
|
Designation : |
Director |
|
Address : |
A-4, |
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Date of Birth/Age : |
16.08.1941 |
|
Date of Appointment : |
21.11.1994 |
|
DIN No : |
00027847 |
|
|
|
|
Name : |
Dr. Mihir K. Chaudhuri |
|
Designation : |
Director |
|
Address : |
Vice-Chancelor’s Buglow, Tezpur Univesity Campus, Tezpur,
Nappam-784028, |
|
Date of Birth/Age : |
21.07.147 |
|
Date of Appointment : |
18.11.2004 |
|
DIN No : |
00489843 |
|
|
|
|
Name : |
Dr. B. M. Choudary |
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Designation : |
Director |
|
Address : |
312, New Mla and MP Colony Road No.10C, Jubilee Hills,
Hyderabad-500033, |
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Date of Birth/Age : |
10.08.1946 |
|
Date of Appointment : |
29.05.2005 |
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DIN No : |
00463723 |
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|
|
|
Name : |
Mr. K. Subramanyeswara Rao |
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Designation : |
Director |
|
Address : |
7-1-636/26, Model Colony, SR Nagar, Hyderabad-500038, |
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Date of Birth/Age : |
10.08.1942 |
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Date of Appointment : |
29.05.2005 |
|
DIN No : |
00038416 |
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|
|
|
Name : |
Mr. Sarvepalli Srinivas |
|
Designation : |
Nominee Director of Exim Bank (upto 11.05.2011) |
|
Address : |
53-T, 710, MSO Colony, |
|
Date of Birth/Age : |
29.06.1962 |
|
Date of Appointment : |
30.07.2008 |
|
DIN No : |
02292051 |
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|
|
|
Name : |
Dr. Ayman Sahli |
|
Designation : |
Nominee Director of Gulf Pharmaceuticals, UAE |
|
Address : |
Villa D-65, |
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Date of Birth/Age : |
04.05.1963 |
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Date of Appointment : |
30.04.2009 |
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DIN No : |
02680724 |
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|
|
|
Name : |
Mr. K. Umamaheswaram |
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Designation : |
Nominee Director of Exim Bank (w.e.f 12.05.2011) |
KEY EXECUTIVES
|
Name : |
Mr. Pendyala Prabhakar Rao |
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Designation : |
Company Secretary |
|
Address : |
12-2-418/3/16, Visas Nagar Colony, Mehdipatnam, Hyderabad-500028, |
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Date of Birth/Age : |
15.07.1938 |
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Date of Appointment : |
01.10.2009 |
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PAN No : |
ADFPP2007G |
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|
|
|
Name : |
Mr. N. Rajendra Prasad |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 30.06.2011
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4,824,933 |
48.18 |
|
|
586,000 |
5.85 |
|
|
5,410,933 |
54.03 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
5,410,933 |
54.03 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
42,114 |
0.42 |
|
|
70,000 |
0.70 |
|
|
112,114 |
1.12 |
|
|
|
|
|
|
938,186 |
9.37 |
|
|
|
|
|
|
1,299,402 |
12.97 |
|
|
1,311,342 |
13.09 |
|
|
943,226 |
9.42 |
|
|
37,819 |
0.38 |
|
|
900,000 |
8.99 |
|
|
372 |
- |
|
|
5,035 |
0.05 |
|
|
4,492,156 |
44.85 |
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Total Public shareholding (B) |
4,604,270 |
45.97 |
|
Total (A)+(B) |
10,015,203 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
10,015,203 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of active pharma ingredients and pharmaceutical
intermediates. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
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Unit |
Actual
Production |
|
Bulk Drugs |
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MT |
1047 |
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Intermediates and Others |
|
|
MT |
1901 |
GENERAL INFORMATION
|
Customers (As On 31.03.2010) : |
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No. of Employees : |
570 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Rambabu and Company Chartered Accountant |
|
Address : |
31, Pancom Chambers, Rajbhavani Road, Hyderabad-500082, Andhra
Pradesh, India |
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Tel No : |
91-40-23311587 |
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Fax No : |
91-40-23397182 |
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Email : |
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Name : |
P. Murali and Company Chartered Accountant |
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Address : |
6-3-655/2/3, Somajiguda, Hyderabad-500 082, Andhra
Pradesh, India |
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Tel No : |
91-40-23326666 |
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Fax No : |
91-40-23392474 |
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Email : |
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|
|
|
Associates : |
·
Webcity Softech Private
Limited ·
Potluri Builders
Private Limited ·
Potluri Real Estate
Private Limited ·
Hima Farms Private
Limited. ·
Ogene Systems (I)
Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10015203 |
Equity Shares |
Rs. 10/- each |
Rs. 100.152
millions |
|
|
|
|
|
Notes:
(Out of the above
28,50,000 shares of Rs.10/- each were alloted as fully paid up Bonus Shares and
29,35,978 Shares were alloted for consideration other than cash)
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
100.152 |
100.152 |
100.152 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2099.300 |
2033.851 |
2021.576 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2199.452 |
2134.003 |
2121.728 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1798.129 |
1559.528 |
1298.809 |
|
|
2] Unsecured Loans |
73.060 |
73.644 |
73.644 |
|
|
TOTAL BORROWING |
1871.189 |
1633.172 |
1372.453 |
|
|
DEFERRED TAX LIABILITIES |
169.501 |
169.501 |
169.501 |
|
|
|
|
|
|
|
|
TOTAL |
4240.142 |
3936.676 |
3663.682 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2060.136 |
2167.830 |
872.423 |
|
|
Capital work-in-progress |
585.618 |
369.791 |
1204.396 |
|
|
|
|
|
|
|
|
INVESTMENT |
5.165 |
5.165 |
5.165 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1144.212
|
757.704
|
719.264 |
|
|
Sundry Debtors |
417.176
|
483.161
|
491.259 |
|
|
Cash & Bank Balances |
59.789
|
52.489
|
203.744 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
358.729
|
363.726
|
296.389 |
|
Total
Current Assets |
1979.906
|
1657.080
|
1710.656 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
448.169 |
391.809 |
283.716 |
|
|
Other Current Liabilities |
4.026
|
7.561
|
3.143 |
|
|
Provisions |
38.459
|
16.679
|
33.234 |
|
Total
Current Liabilities |
490.654
|
416.049
|
320.093 |
|
|
Net Current Assets |
1489.251
|
1241.031
|
1390.563 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
99.972 |
152.859 |
191.135 |
|
|
|
|
|
|
|
|
TOTAL |
4240.142 |
3936.676 |
3663.682 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2242.743 |
2197.551 |
2447.867 |
|
|
|
Other Income |
36.010 |
24.361 |
4.052 |
|
|
|
TOTAL (A) |
2278.753 |
2221.912 |
2451.919 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
1622.443 |
1552.745 |
1812.797 |
|
|
|
Manufacturing Expenses |
243.536 |
190.293 |
146.720 |
|
|
|
Personal Expenses |
131.540 |
99.279 |
101.763 |
|
|
|
Selling Expenses |
65.363 |
63.409 |
57.767 |
|
|
|
Misc. Expenditure Written Off |
73.856 |
76.050 |
75.630 |
|
|
|
Administrative and Other Expenses |
44.450 |
43.032 |
59.839 |
|
|
|
Increase/(Decrease) in Stocks |
(309.851) |
(50.938) |
(40.749) |
|
|
|
TOTAL (B) |
1871.337 |
1973.870 |
2213.767 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
407.416 |
248.042 |
238.152 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
176.150 |
135.585 |
95.904 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
231.266 |
112.457 |
142.248 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
126.429 |
83.648 |
62.791 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
104.837 |
28.809 |
79.457 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
20.910 |
4.855 |
16.472 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
83.927 |
23.954 |
62.985 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
197.531 |
195.255 |
165.705 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.000 |
10.000 |
10.000 |
|
|
|
Proposed Dividend |
15.023 |
10.015 |
20.030 |
|
|
|
Dividend Distribution Tax |
2.437 |
1.663 |
3.404 |
|
|
BALANCE CARRIED
TO THE B/S |
253.998 |
197.531 |
195.256 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1045.021 |
1102.219 |
851.421 |
|
|
TOTAL EARNINGS |
1045.021 |
1102.219 |
851.421 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
409.445 |
342.844 |
396.984 |
|
|
|
Capital Goods |
8.127 |
32.109 |
15.033 |
|
|
TOTAL IMPORTS |
417.572 |
374.953 |
412.017 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
8.38 |
2.39 |
6.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2011 (1st
Quarter) |
|
Net Sales |
|
|
|
492.010 |
|
Total Expenditure |
|
|
|
412.490 |
|
PBIDT (Excl OI) |
|
|
|
79.520 |
|
Other Income |
|
|
|
14.520 |
|
Operating Profit |
|
|
|
94.040 |
|
Interest |
|
|
|
48.390 |
|
PBDT |
|
|
|
45.650 |
|
Depreciation |
|
|
|
32.130 |
|
Profit Before Tax |
|
|
|
13.520 |
|
Tax |
|
|
|
2.800 |
|
Profit After Tax |
|
|
|
10.720 |
|
Net Profit |
|
|
|
10.720 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.68
|
1.08
|
2.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.67
|
1.31
|
3.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.59
|
0.75
|
3.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.01
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.07
|
1.04
|
0.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.04
|
3.98
|
5.34 |
LOCAL AGENCY FURTHER INFORMATION
Note: Registered Office
of the company has been shifted from 417, Nilgiri, Aditya Enclave, Ameerpet,
Hyderabad-500038,
Operational
Performance:
During the year 2010-11 the
company has produced 2948 MT. of APIs and their intermediates as against 2442
MT. during the corresponding year. The net sales of the company has reached to
Rs.2242.700 millions as against Rs.2197.600 millions during the previous year.
The company has earned net profit of Rs.83.900 millions as against Rs.24.000
millions during the year 2009-10.
MANAGEMENT
DISCUSSION AND ANALYSIS
Economic
overview
As per
advance estimates, Gross Domestic Product at constant prices was 8.6% in
2010-11 representing an increase from the revised growth of 8% during 2009-10.
But according to the Advance Estimates of Central Statistics Office (CSO),
though growth appears to have been maintained, high inflation, high interest
rates, lower government expenditure, raise in global crude oil prices will
raise the subsidy burden of the government and reduce the government's ability
to invest in growth.
However,
India continues to do much better and remains most attractive investment
destinations across the globe. As per World Investment Report (WIR) 2010 India
will be the second most attractive location for FDI for 2011-12.
Industry
Structure and Development
India's
pharmaceutical industry is now the 3rd largest in the world in terms of volume
and ranks 14th in terms of value. The Indian pharmaceutical industry is growing
about 8% to 9% annually and is estimated to be worth USD 4.5 billion. India's
pharmaceutical market size has nearly doubled since 2005 and considered to be
one of the fastest growing global markets. India produces approximately 60,000
generic brands and 500 different APIs across 60 therapeutic segments.
Indian
Pharmaceutical market is expected to establish itself among the world's leading
10 markets by 2015. Due to the low cost of research and development in India,
its market share is estimated to be USD 2.5 billion by 2012
The
Indian Pharmaceutical market is expected to reach US Dollar 20 billion by 2015
growing at a compound annual growth rate (CAGR) of 11.7% during 2005-15 and
establish its presence among the world's leading 10 markets.
The
prospects of the generic business worldwide is supported by more and more
expected patent expiries in developed markets (estimated at ~$235 billion in
the period from 2010 to 2015) and growing generic penetration to control
healthcare costs. While the United States remains the largest generic market in
the world with a fairly high generic penetration, the growth potential in some
of the smaller developed markets remains higher. Cost-effectiveness and
superior quality remains the key drivers for success in the generics business.
Outlook
Future
out-look for the Indian pharmaceutical industry seems to be extremely positive.
A number of global acquisitions by the Indian Pharmaceutical companies,
particularly in the U.S. and Europe is accelerating Indian players to make
their market at the international level.
As per
the estimates of the Ministry of Commerce, Government of India $6.31 billion
will be invested in the Indian Pharmaceutical Industry. It is predicted that
patented drugs will capture 10% share of the total Indian pharmaceutical
industry by 2015 with a market size of $ 2 Billion.
Segment-wise
or product-wise performance
The
Company's business activity is a single primary business segment of "Bulk
Drugs". In veiw of higher capital investment, bulk drug manufacturers
typically generate lower return on capital employed as compared to formulation
companies owing to thin margins and high competition. Bulk drug business being
completely driven by scale of operations, most Indian companies barring a few
large ones are relatively small companies, which results in high product
concentration and pricing related vulnerabilities.
Discussion
on financial performance with respect to operational performance
The
Company's revenue for 2010-11 Rs. 2278.700 millions (Previous year Rs.2221.900
millions. Profit after tax (PAT) for 2010-11 was Rs.83.900 millions (Previous
year Rs.23.900 millions).
Performance
and operations review
During
the year SMS achieved a Gross Revenue of Rs.2527.200 millions as against
Rs. 2412.000 millions during the previous year which consists of export
turnover of 55% and 57% respectively. The earnings before interest,
depreciation and tax (EBIDT) amounted to Rs. 407.400 millions as against
Rs.248.000 millions during the last year with an increase of 64%.
The
company has earned other income of Rs.36.000 millions as against Rs.24.000
millions during the previous year.
The
company continuous to work towards optimizing the capacitities of its
manufacturing facilities and also adding additional capacities aimed at the
business opportunities available to it in its domain capability in line with
its strategy to work with innovators laying complimentary role and a
non-compete model with its generic customers.
The
company completed validation batches for few APIs in this and have planned few
more APIs in coming years at the new manufacturing facilities at Kadiivalasa
and Parawada facilities. Also the formulation activity at dedicated oncology
facility has been initiated this year and they are planning to launch
formulations in the coming year. Once approvals are received for these new
launches, significant revenue growth is anticipated.
FORM 8
|
Corporate
identity number of the company |
L24239AP1987PLC008066 |
|
Name of the
company |
SMS
PHARMACEUTICALS LIMITED |
|
Address of the registered
office or of the principal place of
business in |
Plot No.19-111, Room No.71, |
|
This form is for |
Modification of charge |
|
Type of charge |
Immovable property Book debts |
|
Particular of
charge holder |
Axis Bank Limited, 5-2-183/184, 875 (Old), Credit Management Centre,
III rd Floor, |
|
Nature of
instrument creating charge |
Link
document for earmarking of limit and interchangeability. |
|
Date of
instrument Creating the charge |
12.11.2010 |
|
Amount secured by
the charge |
Rs.400.000 millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest No
change in previous terms and conditions. Terms of
repayment 19
Quarterly installments of Rs.20.000 millions each starting from 31st December
2010. Margin No
change in previous terms and conditions. Extent and
operation of the charge No
change in previous terms and conditions. |
|
Short particulars
of the property charged (Including location of the property) |
No
change in previous terms and conditions. |
|
Charge identification
number of the charge to be modified |
10146028 |
|
Particulars of
the present modification |
Conversion
of existing Foreign Currency Term Loan to Rupee Term Loan No
change in previous terms and conditions. |
FIXED ASSETS
- Land
- Building – Factory, Non Factory
- Plant and Machinery
- Electrical Installation
- Pollution Control Equipment
- Data Processing Equipment
- Furniture and Fixtures
- Vehicles
- Office Equipment
- Other Assets
- Improvements on Leased Premises
- Intangible Assets
- Land Scaping
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.46.13 |
|
|
1 |
Rs.74.18 |
|
Euro |
1 |
Rs.64.88 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
59 |
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.