MIRA
INFORM REPORT
|
Report Date : |
12.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
MEDCHEM INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
A-6, Banjara Gardens, Road No.12, Banjara Hills, Hyderabad-500034,
Andhra Pradesh |
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|
Country : |
India |
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|
Financials (as
on) : |
31.03.2011 |
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|
Date of
Incorporation : |
13.04.2006 |
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Com. Reg. No.: |
01-049813 |
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Capital
Investment / Paid-up Capital : |
Rs. 25.000 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
U24230AP2006PLC049813 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDM05280C |
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|
|
|
PAN No.: [Permanent Account No.] |
AAECM7360A |
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|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer, Export and Importer of Pharmaceuticals Formulations. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 220000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having moderated track. There
appears a slight dip in the turnover of the company. However, trade relations
are reported as fair. Business is active. Payments are reported to be slow
but correct. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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 : |
A-6, Banjara Gardens, Road No.12, Banjara Hills, Hyderabad-500034,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-66669652 |
|
Fax No.: |
Not Available |
|
E-Mail : |
DIRECTORS
AS ON 30.09.2011
|
Name : |
Mr. Veera Sekhar Tadikonda |
|
Designation : |
Managing Director |
|
Address : |
301, 120, 3rd Vijaya Nagar Colony, Hyderabad-500057, Andhra
Pradesh, India |
|
Date of Birth/Age : |
11.10.1959 |
|
Date of Appointment : |
13.04.2006 |
|
DIN No.: |
01655614 |
Other Directorship:
|
S.No. |
CIN |
Name
of the Company |
Current
designation of the director |
Date
of appointment at current designation |
Original
date of appointment |
Company
Status |
Defaulting
status |
|
1 |
U24230AP2006PLC049813 |
MEDCHEM
INTERNATIONAL LIMITED |
Director |
13-04-06 |
13-04-06 |
Active |
NO |
|
2 |
U24231WB1977PTC031208 |
PHARMA
IMPEX LABORATORIES PVT LTD |
Additional
director |
03-11-09 |
03-11-09 |
Active |
NO |
|
Name : |
Mr. Mohan Krishna Tadikonda |
|
Designation : |
Director |
|
Address : |
301, 241, 3rd Vijaya Nagar Colony, Hyderabad-500057, Andhra
Pradesh, India |
|
Date of Birth/Age : |
06.12.1955 |
|
Date of Appointment : |
13.04.2006 |
|
DIN No.: |
01904453 |
|
|
|
|
Name : |
Mr. Prabhakar Tadikonda |
|
Designation : |
Director |
|
Address : |
208, B-Block, Varun Enclave, Bhavani Nagar, Kapra, Hyderabad-500062,
Andhra Pradesh, India |
|
Date of Birth/Age : |
04.06.1958 |
|
Date of Appointment : |
11.06.2011 |
|
DIN No.: |
03557590 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
|
T. V. Sekhar |
1477000 |
|
T. Mohan Krishan |
355000 |
|
T. Prabhakar |
82500 |
|
T. Ratnakar |
339500 |
|
T. Sobha Rani |
62000 |
|
T. Padaja |
79000 |
|
T. Rukmini |
50000 |
|
V. S. R. Prasad |
27500 |
|
M. Satya Prasad |
27500 |
|
Total |
2500000 |
AS ON 30.09.2011
|
Equity Shares
Break Up |
Percentage |
|
Directors or relatives of Directors |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Export and Importer of Pharmaceuticals Formulations. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Tablets |
Lakhs |
720 |
|
|
Capsules |
Lakhs |
960 |
|
GENERAL INFORMATION
|
Bankers : |
·
UCO Bank, 9th Lane, 1st
Cross Road, Arundelpet, Guntur-522002, Andhra Pradesh, India |
||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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|
Auditors : |
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|
Name : |
Varadachary and Company Chartered Accountant |
|
Address : |
#5-8-354/507, 5th Floor, Raghav Ratna Towers, Chirag Ali
Lane, Abids, Hyderabad-500001, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23201727 |
|
Mobile No.: |
91-9849039420 |
|
E-Mail : |
|
|
Pan No.: |
AABFV3663K |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000 |
Equity Shares |
Rs.10/- each |
Rs. 25.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2500000 |
Equity Shares |
Rs.10/- each |
Rs. 25.000 Millions |
|
|
|
|
|
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 |
25.000 |
25.000 |
0.500 |
|
|
2] Share Application Money |
21.276 |
21.276 |
29.750 |
|
|
3] Reserves & Surplus |
9.966 |
6.323 |
2.990 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
56.242 |
52.599 |
33.240 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
64.801 |
66.220 |
47.245 |
|
|
2] Unsecured Loans |
0.730 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
65.531 |
66.220 |
47.245 |
|
|
DEFERRED TAX LIABILITIES |
1.654 |
0.871 |
0.135 |
|
|
|
|
|
|
|
|
TOTAL |
123.427 |
119.690 |
80.620 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
81.587 |
85.129 |
10.691 |
|
|
Capital work-in-progress |
7.365 |
0.039 |
64.441 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10.525
|
7.476 |
4.983 |
|
|
Sundry Debtors |
19.406
|
22.473 |
6.613 |
|
|
Cash & Bank Balances |
2.355
|
4.338 |
0.021 |
|
|
Other Current Assets |
0.000
|
0.000 |
4.801 |
|
|
Loans & Advances |
14.952
|
9.521 |
5.075 |
|
Total
Current Assets |
47.238
|
43.808 |
21.493 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11.080
|
7.618 |
14.732 |
|
|
Other Current Liabilities |
0.000
|
0.000 |
0.000 |
|
|
Provisions |
1.709
|
1.721 |
1.353 |
|
Total
Current Liabilities |
12.789
|
9.339 |
16.085 |
|
|
Net Current Assets |
34.449
|
34.469 |
5.408 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.026 |
0.053 |
0.080 |
|
|
|
|
|
|
|
|
TOTAL |
123.427 |
119.690 |
80.620 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
46.118 |
50.688 |
42.912 |
|
|
|
Miscellaneous Income |
2.303 |
5.154 |
3.106 |
|
|
|
TOTAL (A) |
48.421 |
55.842 |
46.018 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
19.764 |
34.074 |
26.698 |
|
|
|
Manufacturing Expenses |
4.611 |
4.095 |
4.782 |
|
|
|
Payments and Benefits to Employees |
2.547 |
2.172 |
3.598 |
|
|
|
Administrative Expenses |
3.086 |
2.960 |
5.011 |
|
|
|
TOTAL (B) |
30.008 |
43.301 |
40.089 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
18.413 |
12.541 |
5.929 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
9.199 |
5.596 |
1.850 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
9.214 |
6.945 |
4.079 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4.718 |
2.449 |
0.303 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4.496 |
4.496 |
3.776 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.852 |
1.163 |
1.345 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3.644 |
3.333 |
2.431 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6.323 |
2.990 |
0.559 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
9.967 |
6.323 |
2.990 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Raw Materials |
2.535 |
NA |
NA |
|
|
|
Capital Goods |
2.303 |
NA |
NA |
|
|
TOTAL EARNINGS |
4.838 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.46 |
1.33 |
0.97 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.53
|
5.97 |
5.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.75
|
8.87 |
8.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.49
|
3.49 |
11.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.09 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.42
|
1.45 |
1.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.69
|
4.69 |
1.34 |
LOCAL AGENCY FURTHER INFORMATION
OPERATING RESULTS:
Their Company has
achieved a turnover of Rs. 46.118 millions (export sales) during the current
financial year, with a short fall by 9 %in the turnover, mainly due to changes
in contract manufacturing locations, administrative delays in receiving
manufacturing licenses, and administrative delays in renewal-cum-enhancement of
credit limits from the bankers. However the net profit of their company has
increased during the current year when compared to previous year.
Their company's
manufacturing has stabilized and the turnover (export sales) of own
manufacturing has increased from Rs. 1.613 millions in Financial Year 2009-10
to Rs. 20.449 millions during the current year due to shifting of the complete
manufacturing of non-antibiotic formulations (tablets and capsules) from contract
manufacturing locations to their own unit. The shifting of the manufacturing to
their own unit has resulted in reducing delays in export shipments, increased
customer satisfaction, increase in frequency of orders, reduction in inventory
levels and the reduction in inventory holding costs, savings on job work
charges and testing charges.
Their company has
completed up-gradation of the Plant and machinery and Laboratory Equipment as
per the World Health Organization's Good Manufacturing Standards and has
applied for applied to the Drug Control Administration, Hyderabad, Andhra
Pradesh for certification as per WHO-GMP standards.
Their company has
started R and D trials of Tenofovir Disoproxil Fumarate tablets and its fixed
dose combinations under License from Gilead Sciences, Inc., USA, during the
current financial year, and the products would be ready for commercial launch
immediately on receiving WHO-GMP Certification.
FORM 8
|
Corporate
identity number of the company |
U24230AP2006PLC049813 |
|
Name of the
company |
MEDCHEM
INTERNATIONAL LIMITED |
|
Address of the
registered office or of the principal place of business in |
A-6, Banjara Gardens, Road No.12, Banjara Hills, Hyderabad-500034, Andhra Pradesh, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable
property Book debts Movable property
(not being pledge) |
|
Particular of
charge holder |
UCO Bank, 9th Lane, 1st Cross Road, Arundelpet,
Guntur-522002, Andhra Pradesh, India |
|
Date of
instrument Creating the charge |
26.04.2011 |
|
Amount secured by
the charge |
Rs. 73.170
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest RPC - Base Rate
9.50% + 1.25% i.e., 10.75% per annum with monthly rests. Term Loans - Base
Rate 9.50% + 4.75% i.e., 14.25% per annum with monthly rests. Terms of repayment Cash Credit
repayable on demand. Margin RPC: Stock -
10.00% Domestic
Receivables - 40.00% ILC/FLC/BG -
10.00% Extent and operation of the charge Charge operates
full on securities. |
|
Short particulars
of the property charged (Including location of the property) |
Hypothecation of
stocks such as pharma raw materials, packing material, semi finished goods
and finished goods of all varieties and in all forms lying in the borrowers
godowns, factory and at processing houses of others and in warehouses, stock
in transit and other current assets of the Company both present and future Hypothecation of
both Export Receivables and Domestic Receivables. Hypothecation of
Plant and Machinery installed and to be installed including Generators, Boil
Rooms, Lab equipment, utilities and all accessories, fittings etc and the
factory buildings, partitions, Air Distribution system for Term Loans. Extension of
Equitable Mortgage of Industrial Land admeasuring Ac. 4.25 guntas situated at
S. No: 591, 592, 593 of Dundigal Village and Panchayat, Quthbullapur Mandal,
Ranga Reddy District together with all Structures and Super Structures constructed
and to be constructed there on. |
|
Charge
identification number of the charge to be modified |
10015947 |
|
Particulars of
the present modification |
Overall Limits
enhanced to Rs. 73.170 millions |
FIXED ASSETS
·
Land
·
Factory Building
·
Computers
·
Electrical Equipment
·
Plant and Machinery
·
Lab Equipments
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 51.82 |
|
|
1 |
Rs. 79.42 |
|
Euro |
1 |
Rs. 65.90 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.