MIRA
INFORM REPORT
|
Report Date : |
10.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
LACTOSE INDIA
LIMITED |
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Registered Office : |
Survey No. 6,
Village Poicha (Rania), Savli, Dist. Vadodara – 397 080, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
11.03.1991 |
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Com. Reg. No.: |
04-15186 |
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CIN No.: [Company
Identification No.] |
L15201GJ1991PLC015186 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML01469G |
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Legal Form : |
Public Limited
Liability company. The company’s shares are listed on the Stock Exchange |
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Line of Business : |
Manufacturer
and Trader of Pharmaceutical Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 430000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate
track. Profitability of the company appears to be low. However, trade relations
are reported as fair. Business is active. Payments are reported as to be
slow. The company can be considered for business dealings
with some caution. |
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 : |
Survey No. 6, Village
Poicha (Rania), Savli, Dist. Vadodara – 397 080, |
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Tel. No.: |
91-2667-244308/244225/244729/ 66952701 |
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E-Mail : |
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Website : |
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Corporate
Office : |
211, Laxmi Plaza,
Laxmi Industrial Estate, New Link Road, Andheri (West), Mumbai – 400 053,
Maharashtra, India |
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Tel. No.: |
91-22-66952701-03 |
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Fax No.: |
91-22-66952704 |
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E-Mail : |
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Administrative
Office : |
5th
Floor, |
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Tel. No.: |
91-265-2330825/2840397 |
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Fax No.: |
91-265-2840397 |
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Factory 1 : |
Survey No. 6,
Village Poicha (Rania), Savli, Dist. Vadodara – 397 080, |
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Tel. No.: |
91-2667-244308/244225/244729 |
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E-Mail : |
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Area : |
10121 sq. mtrs. |
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|
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Sales Office : |
10, Shah and Nahar
Industrial Estate, Off. |
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Tel. No.: |
91-22-24921953/24946148/24973953 |
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Fax No.: |
91-22-24939838 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. S M
Maheshwari |
|
Designation : |
Chairman and
Managing Director |
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Name : |
Mr. Atul
Maheshwari |
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Designation : |
Executive
Director |
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Address : |
52/A, Aashit Apartments, Stan Burg Est. Juhu, Mumbai-400049, |
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Date of Birth/Age : |
2nd July, 1965 |
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Date of Appointment : |
11th March, 1991 |
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Name : |
Mr. O P Singhi |
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Designation : |
Director |
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Name : |
Mr. G K Sarda |
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Designation : |
Director |
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Name : |
Mr. Pramod
Kalani |
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Designation : |
Additional
Director |
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 |
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|
1,567,650 |
21.52 |
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|
534,832 |
7.34 |
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|
534,832 |
7.34 |
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|
2,102,482 |
28.86 |
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Total shareholding of Promoter and Promoter Group (A) |
2,102,482 |
28.86 |
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(B) Public Shareholding |
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|
77,920 |
1.07 |
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|
77,920 |
1.07 |
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|
134,988 |
1.85 |
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3,930,872 |
53.96 |
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|
255,817 |
3.51 |
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|
782,921 |
10.75 |
|
|
782,721 |
10.74 |
|
|
200 |
-- |
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|
5,104,598 |
70.07 |
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Total Public shareholding (B) |
5,182,518 |
71.14 |
|
Total (A)+(B) |
7,285,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
7,285,000 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Group CompaniesBUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Trader of Pharmaceutical Products |
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Products : |
Pharmaceutical
Products - Lactose Powder |
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Imports from : |
Europe and |
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Terms : |
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Purchasing : |
against L/C terms |
PRODUCTION
STATUS (As on 31.03.2009)
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
|
|
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Lactose |
|
MT |
|
937.675 |
|
Machine |
|
RY |
1500 MT |
-- |
|
Nergy Sachets |
|
Nos. |
|
-- |
|
Strength Plus Sachet |
|
Nos. |
|
-- |
|
Fabric |
|
Mtrs. |
|
1138420 |
GENERAL INFORMATION
|
No. of Employees : |
About 120 |
|
|
|
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Bankers : |
v
State Bank of Industrial Finance Branch, Shivsagar Estate, Worli (South), Mumbai – 400 018 v
State Bank of R. v Oriental Bank of Commerce Prabhadevi Branch, Aman Chambers, 1st Floor, Veer Savarkar Marg, Opp New Passport Office, Prabhadevi, Mumbai – 400 025, |
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Banking
Relations : |
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Auditors : |
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Name : |
K. M. Tulsian and
Associates Chartered
Accountants |
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Address : |
201, 204 Rajeshri
Accord, |
CAPITAL STRUCTURE
As on 29.09.2010
Authorised Capital : Rs.100.000 millions
Issued, Subscribed & Paid-up Capital :Rs.72.850
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 |
69.400 |
66.100 |
55.200 |
|
|
2] Share Application Money |
37.300 |
32.400 |
32.000 |
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|
3] Reserves & Surplus |
0.300 |
0.700 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
107.000 |
99.200 |
87.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
61.500 |
66.800 |
77.900 |
|
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2] Unsecured Loans |
4.100 |
8.300 |
11.400 |
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TOTAL BORROWING |
65.600 |
75.100 |
89.300 |
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DEFERRED TAX LIABILITIES |
12.700 |
10.700 |
09.800 |
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|
|
|
|
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TOTAL |
185.300 |
185.000 |
186.300 |
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APPLICATION OF FUNDS |
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|
|
|
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FIXED ASSETS [Net Block] |
137.200 |
127.600 |
131.200 |
|
|
Capital work-in-progress |
0.000 |
3.600 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.000 |
3.200 |
2.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.500 |
0.300 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13.500
|
17.400
|
22.500 |
|
|
Sundry Debtors |
45.400
|
27.700
|
40.600 |
|
|
Cash & Bank Balances |
3.500
|
3.800
|
2.800 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
63.200
|
67.200
|
45.100 |
|
Total
Current Assets |
125.600 |
116.100 |
111.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
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|
|
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Other Current Liabilities |
79.000
|
62.400
|
55.300 |
|
|
Provisions |
1.500
|
3.600
|
3.100 |
|
Total
Current Liabilities |
80.500
|
66.000
|
58.400 |
|
|
Net Current Assets |
45.100
|
50.100
|
52.600 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
TOTAL |
185.300 |
185.000 |
186.300 |
|
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
228.800 |
205.300 |
268.300 |
|
|
|
Other Income |
11.000 |
1.400 |
5.000 |
|
|
|
TOTAL (A) |
239.800 |
206.700 |
273.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials |
132.800 |
111.000 |
189.500 |
|
|
|
Power & Fuel |
19.900 |
19.500 |
12.500 |
|
|
|
Employee Cost |
14.700 |
18.600 |
12.300 |
|
|
|
Other Manufacturing Expenses |
21.100 |
9.300 |
9.300 |
|
|
|
Selling and Administrative Expenses |
22.700 |
21.000 |
24.100 |
|
|
|
Miscellaneous Expenses |
1.500 |
2.300 |
2.500 |
|
|
|
Increase/(Decrease) in Finished Goods |
(6.200) |
(1.200) |
0.100 |
|
|
|
TOTAL (B) |
206.500 |
180.500 |
250.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
33.300 |
26.200 |
23.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9.400 |
10.400 |
9.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
23.900 |
15.800 |
13.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.500 |
13.800 |
9.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
9.400 |
2.000 |
4.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4.400 |
1.600 |
3.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5.000 |
0.400 |
0.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
25.900 |
25.500 |
24.900 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
30.900 |
25.900 |
25.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.200 |
0.600 |
1.100 |
|
QUARTERLY RESULTS
(UNAUDITED)
(Rs. In Millions)
|
PARTICULARS |
30.09.2010 |
31.12.2010 |
31.03.2011 |
30.06.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
56.060 |
84.360 |
79.970 |
90.750 |
|
Total Expenditure |
47.720 |
75.050 |
76.320 |
80.750 |
|
PBIDT (Excl OI) |
8.340 |
9.310 |
3.650 |
10.000 |
|
Other Income |
0.310 |
0.120 |
0.180 |
0.140 |
|
Operating Profit |
8.650 |
9.430 |
3.830 |
10.140 |
|
Interest |
2.140 |
2.120 |
2.260 |
2.070 |
|
Exceptional Items |
0.000 |
0.000 |
1.230 |
0.000 |
|
PBDT |
6.510 |
7.310 |
2.800 |
8.070 |
|
Depreciation |
3.950 |
4.050 |
4.110 |
4.060 |
|
Profit Before Tax |
2.560 |
3.260 |
(1.320) |
4.010 |
|
Tax |
0.400 |
1.000 |
(2.200) |
1.230 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
2.160 |
2.260 |
0.870 |
2.780 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2.160 |
2.260 |
0.870 |
2.780 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.09
|
0.19
|
0.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.11
|
0.97
|
1.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.58
|
0.82
|
1.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.02
|
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.37
|
1.42
|
1.69 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.56
|
1.76
|
1.90 |
LOCAL AGENCY FURTHER INFORMATION
Company
History:
Subject
is an India-based company. The company is engaged in the manufacturing and
trading of pharmaceutical products. They offer edible and pharmaceutical grade lactose,
which is used as an ingredient in pharmaceutical products, as well as in the
dairy, food, confectionery, and beverage industries. The company also
manufactures dairy whitener, dairy calcium, whey powder, casein, caseinate,
butter, and ghee. Further, they engage in the contract manufacture of
pharmaceutical products. The company is having their manufacturing facilities
located at Vadodara in
REVIEW OF OPERATIONS: During the year, the company achieved sales Rs.257.493 millions, (Previous Year Rs. 218.020 millions) showing a growth of 18.10 % compared to the previous year. The Company has earned a profit after tax of Rs.4.952 millions, compared to last year's profit of Rs.0.455 millions. The Company has achieved EPS of Rs.0.71 against 0.07 in the previous year. A detailed analysis of the performance for the year has been included in the Management Discussion and Analysis, which forms part of the Annual Report. The Company has also installed and commissioned Agro waste fired boiler and has applied for availing of Carbon Credits against the use of Agro waste instead of Fossil fuel.
MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure and Development: The Indian economy has been witnessing a phenomenal growth since the last decade. The country is still holding its ground in the midst of the current global financial crisis. The world Economy is beginning to recover from one of the worst economic downturns in decades. It is estimated that by 2015, the Indian Pharmaceutical Industry will rank amongst the top 10 in the world. A healthy competitive structure and international approved facilities have served to encourage the growth of pharmaceutical industry. Opportunities and Threats: The Company has started manufacturing of Liquid Formulations. Existing products have been moved on to the International market arena and the Company has received an excellent response to its product line. Though the slow down in foreign countries remains a worry Outlook: The Company has decided to focus on products and markets of higher profitability only. The change in marketing strategy and exposure in the world market will enable us to become a global force to reckon with. They have started exporting new products to Canada AS
PER WEBSITE DETAILS
PROFILE
Subject forces home one strong promise "Only the best is
good enough for their customers and good enough to carry their name"
Products that leave the company's manufacturing facility in Vadodara,
Subject plant in Vadodara, Gujarat was commissioned by Alfa
Laval, Pune (which is a subsidiary of Alfa Laval of
With its unparalled infrastructure of requisite equipment
and dedicated work force, Lactose (
This state of art manufacturing
facilities for the manufacture of pharmaceutical formulations is in compliance
with all international standards. The plant is approved under WHO-CGMP
guidelines and also holds TUV certificate as an ISO 9001: 2000 company. The
manufacturing facilities include wet granulation, Fluid bed drying, and
compaction, blending and coating facilities with the latest technology
equipments. The manufacturing facilities are well supported by its total
in-house Quality Control set-up with latest Testing equipments and an up to
date Microbiology Testing Laboratory. The Facility is supported by an equally
competent and FDA approved Manufacturing professionals.
The company is forcefully led by a balanced combination of technical and industrial experts. Mr. S. S. Toshniwal - Chairman, brings in a wealth of industrial experience having diversified in businesses of varying natures ie trading, export and manufacturing. Over 30 years of unmatched experience in a global market have added to his experience.
Mr. S. M. Maheshwari - Managing Director, is the company's forefront in
operations and brings his experience of over 35 years with pharmaceutical
giants like Hoechst Marion Roussel, Abbott Labs, American Cyanamid and Warner
Lambert. His vast experience in the manufacturing, quality assurance and
operational competencies in real time management is quite unmatched.
Mr. Atul Maheshwari - Executive Director, with his MBA in marketing
faculty from the
The executive team is well backed by a work force of devoted and skilled professionals.
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.46.38 |
|
|
1 |
Rs.74.00 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
26 |
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.