MIRA INFORM REPORT

 

 

 

 

Report Date :

12.02.2013

 

IDENTIFICATION DETAILS

 

Name :

ARCH PHARMALABS LIMITED

 

 

Registered Office :

541/A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai - 400 059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

02.04.1993

 

 

Com. Reg. No.:

11-150891

 

 

Capital Investment / Paid-up Capital :

Rs. 247.840 millions

 

 

CIN No.:

[Company Identification No.]

U24231MH1993PLC150891

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA19603D

 

 

PAN No.:

[Permanent Account No.]

AACCM0306Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing of Pharmaceutical Intermediates.

 

 

No. of Employees :

1500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 27112000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but delayed

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record. The latest financials are not made available with the government department.

 

As per previous year’s record the performance of the company seems to be good.

 

There appears delays in its payment in the domestic market.

 

However, trade relations are reported to be fair. Business is active. Payments are slow and delayed.

 

The company can be considered for business dealings at usual trade terms and condition.

 

Note:

The shares of the subject company are not traded from last 30 days.

 

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, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

 

Rating Agency Name

ICRA

Rating

Long term rating : A

Rating Explanation

Adequate degree of safety and low credit risk.

 

ICRA has withdrawn the A1 rating assigned to the Rs. 2500.000 Millions CP/ short term Debt Programme as the company has fully redeemed the instrument on maturity.

Date

November 2012

 

 

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

 

Registered Office / Corporate Office :

541/A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai - 400 059, Maharashtra, India

Tel. No.:

91-22-28470555 / 33089200 / 33089400 / 40756789

Fax No.:

91-22-28471234 / 1002

E. Mail.:

info@archpharmalabs.com

sudhir.nagar@archpharmalabs.com

Website:

www.archpharmalabs.com

 

 

Head Office :

H Wing, 4th Floor, Tex Centre Chandivali, Andheri (East), Mumbai – 400 072, Maharashtra, India

Tel. No.:

91-22-28560555

 

 

Plant :

1.       Survey No. 323, Gundlamachnur Village, Hathnoora Mandal, District Medak – 502 296, Andhra Pradesh, India

Tel. No.: 91-22-28560555 / 0560

Fax No.: 91-22-28561234 / 1002

E-Mail : archcom@mtnl.net.in 

                    archfin@vsnl.com 

              infor@archpharmalabs.com

Area : 5500 sq. fts

Location : Owned

 

2.       Survey No.280, Mittapally Village, Siddipet – 502 375, Medak, Andhra Pradesh, India

3.       Plot No.T-84, 85 and 86 MIDC Tarapur, Taluka Palghar, District Thane, Maharashtra, India  

4.       Plot No.G-4 and G-5, Kharvai MIDC, Badlapur, District Thane -  421 503, Maharashtra, India

5.       Vitalifa Laboratories, Village Pathreri, Bilaspur Tauru Road, District Gurgoan – 122 001, Haryana, India 

6.       Plot No.G-6, MIDC Taloja, Taloja Industrial Area, Village Navade, Taluka Panvel, District Raigad, Maharashtra, India

7.       Corporate R and D Centre  - I, Plot No.21, MIDC, Chemical Zone , Taloja Industrial Area, Village Navade, Taluka Panvel, District Raigad – 410 208, Maharashtra, India

8.       Corporate R and D Centre - II, Plot No.C-424, TTC Turbhe, MIDC Industrial Area, Navi Mumbai, Maharashtra, India

9.       Plot No.W-45 (C) Anand Nagar, Additional Ambernath District Thane  - 421 506, Maharashtra, India

10.   V-8, MIDC, Taloja, Raigad, Maharashtra, India

 

 

Branch Office 1 :

Sainath, 8-2-120/86/10/2, Muncipal No.389, Road No.14, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh, India

 

 

Branch Office 2 :

Shop No.3, Village Pabhat, Chandigarh Road, Zirakpur District, Ropar, Punjab, India

 

 

DIRECTORS

 

As on 29.09.2010

 

Name :

Mr. Shantilal Dalichand Jain

Designation :

Independent Director

Address :

306, Shivam – A, 28B, Gopi tank Road, Mahim, Mumbai – 400 016, Maharashtra, India

Date of Birth/Age :

03.07.1961

Qualification :

Practicing physician and has completed his MBBS from Grant Medical College, Mumbai,  MD in General Medicine form Grant Medical College, Mumbai

Experience :

More than 20 years of experience in the field of medicine

Date of Appointment :

24.01.2011

DIN No.:

00053142

 

 

Name :

Mr. Ramakant Madhav Nayak

Designation :

Independent Director

Address :

A – 11, Anand Dham, Road No. 9, Prabhat Colony, Near Hotel Yatri, Santacruz (East), Mumbai – 400 055, Maharashtra, India

Date of Birth/Age :

30.06.1945

Qualification :

Bachelor’s degree in Science from Karnataka University and Bachelor’s Degree in Law from University of Mumbai

Experience :

More than 40 years of experience in the commercial banking sector

Date of Appointment :

24.01.2011

DIN No.:

00129854

 

 

Name :

Mr. Ajit Annu Kamath

Designation :

Chairman and Managing Director

Address :

404, I la Apartments, Sector 4, R. O. P. 7, Chrkop, Kandivli (West), Mumbai - 400 067, Maharashtra, India

Date of Birth/Age :

12.12.1969

Qualification :

Commerce Graduate

Experience :

More than 12 years of experience in the pharmaceutical industry

Date of Appointment :

01.11.2008

DIN No.:

00032799

 

 

Name :

Mr. Manoj Tejraj Jain

Designation :

Deputy Managing Director and Chief Financial Officer

Address :

Flat No. 4-A, Shefali, Mahim Makarand Society, 114, SVS Marg, Mahim, Mumbai – 400016, Maharashtra, India

Date of Birth/Age :

20.03.1970

Qualification :

Bachelors Degree in Commerce

Experience :

More than 12 years of experience in the pharmaceutical industry

Date of Appointment :

01.11.2008

DIN No.:

00034727

 

 

Name :

Mr. Mallikarjuna Reddy Tirumalareddy

Designation :

Executive Vice-Chairman

Address :

B-13, Madhura Nagar, S.R. Nagar P.O., Hyderabad – 500 038, Andhra Pradesh, India

Date of Birth/Age :

15.04.1960

Qualification :

M.A.

Experience :

Over 17 years experience in the pharmaceutical industry

Date of Appointment :

01.10.2008

DIN No.:

00298545

 

 

Name :

Mr. Rajendra Kumar Padmanabhan Kaimal

Designation :

Executive Director

Address :

Flat No. 1202, Sector R-3, C Wing, Orchid Enclave, Nahar’s Amrit Shakti, Chandivali, Andheri (East), Mumbai – 400 072, Maharashtra, India

Date of Birth/Age :

23.06.1973

Qualification :

Bachelors Degree in Commerce from the University of Mumbai. He has completed his Masters in Management Studies from Narsee Monjee Institute of Management Studies, Mumbai and is a Cost Accountant from the Institute of Cost and Works Accountants of India.

Experience :

over 11 years of experience in the pharmaceutical industry

Date of Appointment :

01.11.2008

DIN No.:

00032839

 

 

Name :

Ms. Rajadhyaksha Vandana Makarand

Designation :

Nominee Director

Address :

301, 3rd Floor, Laxmi Gopal Hatiskar Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India

Date of Birth/Age :

09.10.1971

Qualification :

Metallurgical Engineer from Indian Institute of Technology, Mumbai Management Degree in Business Administration from the University of Pune.

Experience :

Over 12 years of experience in the manufacturing, consulting and financial services sectors

Date of Appointment :

19.07.2007

DIN No.:

00164120

 

 

KEY EXECUTIVES

 

 

Name :

Mr. Vikas B. Kedia

Designation :

Company Secretary and DGM Finance

Address :

Flat No. 201, C-Wing, Krishna Building, Vasant Sagar Complex, Thakur Village, Kandivali (East), Mumbai – 400 101, Maharashtra, India

Date of Birth/Age :

08.07.1976

Date of Appointment :

26.12.2003

PAN No. :

AMZPK9885E

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 16.10.2012

 

Names of Allottees

 

No. of Shares

 

 

AMR Investments Private Limited, India

3061224

 

 

Total

3061224

 

As on 29.09.2010

 

Names of Allottees

 

No. of Shares

 

 

AMR Investments Private Limited, India

875000

Arch Pharmachem Limited, India

125000

Arch Impex Private Limited, India

250000

Dataline Investments Limited, Mauritius

1000000

Mitsui and Company Limited, Japan

1300000

 

 

Total

3550000

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 29.09.2010

 

Category

Percentage

Nationalised/ Other Banks

0.02

Venture Capital

48.51

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

2.74

Bodies corporate

30.16

Directors or relatives of Directors

11.44

Other top fifty shareholders

4.75

Others

2.38

Total

100.00

 

 

BUSINESS DETAILS

 

 

Line of Business :

Manufacturing of Pharmaceutical Intermediates.

 

 

Products :

Item Code No.

Product Description

29159000

CMIC - Chloride

29159000

DICMIC - Chloride

29159000

FCMIC - Chloride

 

 

GENERAL INFORMATION

 

 

No. of Employees :

1500 (Approximately)

 

 

Bankers :

·         IDBI Bank Limited, IDBI Tower WTC Complex, Cuffee Parade, Mumbai – 400 005, Maharashtra, India

·         Bank of Maharashtra, Industrial Finance Branch, 1, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400 001, Maharashtra, India

·         Axis Trustee Services Limited, Axis House, 2nd Floor, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India

  • Punjab National Bank, Maker Towers, ‘E’, Ground Floor, Cuffe Parade, Mumbai-400 005, Maharashtra, India
  • UCO Bank, Flagship Corporate Branch, 1st Floor, Mafatlal Centre, Nariman Point, Mumbai – 400 021, Maharashtra, India

·         Development Credit Bank Limited, 301, Trade Plaza, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India

 

 

Facilities :

Secured Loan

 

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Debentures secured

 

 

Non-convertible debentures secured

100.000

200.000

Rupee term loans secured

 

 

Rupee term loans banks secured

9744.029

7951.114

Other debt secured

708.760

818.703

Interest accrued due secured loans

 

 

Interest accrued due other debt secured

0.000

31.528

 

 

 

Total

10552.789

9001.345

 

Notes:

 

1.       Debentures – Non Convertible debentures referred in (a) of Schedule 3 are secured by subservient charge on the movable assets of the company and personnel guarantee of the Company’s Promoter Directors, Debentures are redeemable at par with the earliest redemption date being 28.02.2012.

 

2.       Loan and Advances from Banks as referred to in Schedule 3 of the Secured loan which comprise of term loan, working capital, packing credit and other financial instruments, of which the Term loan of Rs. 5962.539 Millions secured by first pari - passu charge on the fixed assets, second pari – passu charge on the current and personal guarantee of the company’s promoter director. Working capital and other financial instruments of Rs. 3781.490 Millions are secured by first pari passu charge on the current assets and second pari passu charge of the fixed assets and personnel guarantee of the company’s promoter directors.

 

3.       Includes Other Loan and Advances - Other Loan and Advances include hire purchase and are secured by hypothecation of specific vehicle (asset) financed by the respective bank. As regards the borrowing from Institutions which are secured by first pari – passu charge on the fixed assets, second pari – passu charge on the current and personnel guarantee of the company’s promoter director except Rs. 645.797 Millions (previous year Rs.676.065 Millions) which is secured by residual charge on the entire fixed assets and current assets of the company.

 

4.       Includes Interest accrued and Due

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

Nayak and Rane

Chartered Accountants

Address:

501, Siddhivinayak Annexe, C – Wing, S.J. Marg, Lower Parel, Mumbai – 400 013, Maharashtra, India

PAN No.:

AAHPR2232G

 

 

Name 2 :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400 021, Maharashtra, India

PAN No.:

AAAFC0662N

 

 

Subsidiaries :

Arch Life Sciences Limited

U24239AP2003PLC042232

 

Arch Fine Chemicals Limited

U24110AP1993PLC015533

 

Avon Organics Limited

L24110AP1993PLC016112

 

Arch Pharmalabs USA Inc.

 

Regal Pharma PTE Limited

 

 

Enterprises over which Key Managerial Personnel are able to exercises significant influence :

·         Arch Impex Private Limited

·         Arch Pharmachem Limited

·         AMR Investments Private Limited

·         Sainath Investments Private Limited

 

 

CAPITAL STRUCTURE

 

AFTER 30.09.2011

 

Authorized Capital: Rs. 400.000 Millions

 

Issued, Subscribed & Paid-up Capital: Rs. 278.452 Millions

 

 

AS ON 31.03.2011

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

40000000

Equity Shares

Rs.10/- each

Rs.400.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

24784000

Equity Shares

Rs.10/- each

Rs.247.840 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

247.840

212.340

212.300

2] Share Application Money

0.000

300.000

0.000

3] Reserves & Surplus

6530.279

4158.145

3649.400

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6778.119

4670.485

3861.700

LOAN FUNDS

 

 

 

1] Secured Loans

10552.789

9001.345

6730.200

2] Unsecured Loans

1953.912

2259.514

1818.700

TOTAL BORROWING

12506.701

11260.859

8548.900

DEFERRED TAX LIABILITIES

521.041

425.104

291.800

 

 

 

 

TOTAL

19805.861

16356.448

12702.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6489.766

5770.743

4608.900

Capital work-in-progress

1776.925

674.161

1172.200

 

 

 

 

INVESTMENT

492.435

492.435

717.900

DEFERRED TAX ASSETS

0.000

0.000

0.0000
Foreign Currency Monetary Item Translation Difference Account

0.000

0.672

5.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4497.449

3743.398

3109.400

 

Sundry Debtors
5348.858

4771.513

3112.700

 

Cash & Bank Balances
603.599

501.349

408.300

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
4100.101

2889.176

1682.200

Total Current Assets
14550.007

11905.436

8312.600

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
1399.942

821.739

1089.600

 

Other Current Liabilities
1990.273

1646.908

1010.900

 

Provisions
113.057

18.352

13.700

Total Current Liabilities
3503.272

2486.999

2114.200

Net Current Assets
11046.735

9418.437

6198.400

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

19805.861

16356.448

12702.400

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

12779.003

10233.723

7133.300

 

 

Other Income

88.000

64.474

20.700

 

 

TOTAL                                     (A)

12867.003

10298.197

7154.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption Materials Changes Inventories

7734.596

6481.425

 

 

 

Manufacturing service costs

774.254

520.379

5771.800

 

 

Employee related expenses

683.626

534.957

 

 

 

Administrative, selling and other expenses

92.080

72.969

 

 

 

Research and development expenses

257.559

202.658

 

 

 

TOTAL                                     (B)

9542.115

7812.388

5771.800

 

 

 

 

 

Less

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

3324.888

2485.809

1382.200

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1542.442

1312.429

596.400

 

 

 

 

 

 

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

1782.446

1173.380

785.800

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

600.406

458.659

240.100

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1182.040

714.721

545.700

 

 

 

 

 

Less

TAX                                                                  (H)

348.610

205.916

178.000

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

833.430

508.805

367.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1683.482

1138.581

855.400

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Debenture Redemption Reserve Account

(85.320)

(36.096)

84.500

 

BALANCE CARRIED TO THE B/S

2602.232

1683.482

1138.600

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

4915.525

3474.213

1666.600

 

 

Other Earnings

772.719

484.847

78.000

 

TOTAL EARNINGS

5688.244

3959.060

1744.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3471.313

2228.227

1469.100

 

 

Capital Goods

50.618

5.329

63.900

 

TOTAL IMPORTS

3521.931

2233.556

1533.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

36.20

23.96

17.31

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
6.48

4.94

5.14

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
9.25

6.98

7.65

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
5.62

4.04

4.22

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.17

0.15

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
1.84

2.41

2.21

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
4.15

4.79

3.93

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----

22]

Litigations that the firm / promoter involved in

----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----

26]

Buyer visit details

----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

Note: The Registered office of the company has been shifted from H Wing, 4th Floor, Tex Centre, Narayan Properties, Chandivali, Off Saki Vihar Road, Andheri (East), Mumbai – 400 072, Maharashtra, India to the present address w.e.f. 03.01.2012.

 

 

UNSECURED LOAN:

   

Unsecured Loan

 

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Debentures unsecured

 

 

Non-convertible debentures unsecured

0.000

100.000

Rupee term loans unsecured

 

 

Rupee term loans others unsecured

1.047

1.047

Working capital loans unsecured

 

 

Working capital loans banks unsecured

1899.492

2101.511

Deferred sales tax loan unsecured

53.373

56.956

 

 

 

Total

1953.912

2259.514

 

Note:

 

From Others (Rs.1.046 Millions payable within one year)

 

 

CONTINGENT LIABILITY

 

Contingent Liability not provided for, in respect of: -

                                                                                                                                           (Rs. in millions)

Particulars

31.03.2011

31.03.2010

- Guarantees given by banks

9.875

9.875

- Letter of Credits

1297.533

285.600

- Liability in respect of bills discounted

409.539

291.511

- Claim against the Company/disputed liabilities not acknowledged as debts

2.110

2.110

- Guarantees given for loan taken by Subsidiaries.

1045.000

1045.000

 

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U24231MH1993PLC150891

Name of the company

ARCH PHARMALABS LIMITED

Address of the registered office or of the principal place of  business in India of the company

541/A, Arch House, Marol Maroshi Road, Marol, Andheri (East), Mumbai – 400 059, Maharashtra, India

e-mail: info@archpharmalabs.com

This form is for

Modification of charge

Charge identification number of the modified 

10143830

Type of charge

Book Debts

Movable Property

Particular of charge holder

IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

e-mail: j.chatterjee@idbi.co.in

Nature of description of the instrument creating or modifying the charge

Supplemental Deed of Hypothecation dated 9.10.2012 executed by the company in favour of IDBI Bank Limited (IDBI) to secure the enhanced Working Capital Facility upto Rs. 1500.000 millions (enhanced from Rs. 1000.000 millions to Rs. 1500.000 millions) by way of hypothecation on whole of the movable properties of the company including all stocks, book debts and receivables together with movable plant & machinery, etc. and other movable fixed assets both present and future

Date of instrument Creating the charge

09.10.2012

Amount secured by the charge

Rs. 1500.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

As per Supplemental Facility Agreement dated October 9, 2012 executed by the company in favour of IDBI as amended from time to time.

 

Terms of Repayment

As per Supplemental Facility Agreement dated October 9, 2012 executed by the company in favour of IDBI as amended from time to time.

 

Margin

As per Supplemental Facility Agreement dated October 9, 2012 executed by the company in favour of IDBI as amended from time to time.

 

Extent and Operation of the charge

The charge operates as security inter alia on

 

1. 1st pari passu charge basis on company's entire current assets both present and future

 

2. 2nd pari passu charge basis on company's movable Plant & Machinery and other movable fixed assets, both present and future, to secure the enhanced Working Capital Facility up to Rs. 1500.000 millions together with all costs, expenses and other monies whatever stipulated in the SFA dated October 9, 2012 as amended from time to time.

Short particulars of the property charged

Entire current assets of the company both present and future, Movable fixed assets including plant & machinery both present and future

Date of latest modification prior to the present modification

08.11.2011

Particulars of the present modification 

IDBI Bank has increased working capital facilities from Rs. 1000.000 Millions to Rs 1500.000 Millions in terms of Supplemental Facility Agreement dated October 9, 2012, which is secured by way of first pari passu charge on current asset and second pari passu charge on movable fixed asset of the company by way of hypothecation dated October 9, 2012.

 

PRESS RELEASE

 

Arch partners with Codexis to win the Presidential Green Chemistry Challenge Award


On June 18, 2012 Codexis, Inc. announced it has been awarded the annual Presidential Green Chemistry Challenge Award from the U.S. Environmental Protection Agency (EPA) for the development of an efficient biocatalytic process to manufacture simvastatin, a leading drug for treating high cholesterol. This marks the third time in seven years that Codexis has been honored with this award; Codexis was a recipient in 2006 and 2010.

The process was scaled up at Codexis' longstanding collaborator, Arch Pharmalabs Ltd., in Mumbai, India. Arch Pharmalabs manufactures a number of products for Codexis, including the 2006 Presidential Green Chemistry Challenge Award-winning process for atorvastatin, the active ingredient in Pfizer's Lipitor®.


"We are running six biocatalytic processes developed by Codexis and have shown that they are reliably scalable and comparable to chemical processes, while offering significant advantages in terms of product purity, reduced waste, and reduced energy consumption," said Dr. Ganesh Pai, Director of Research and Development, Arch Pharmalabs Limited


Simvastatin is the most prescribed statin in the U.S., with 94.1 million prescriptions in 2010 according to IMS Health. Traditionally, synthesis of simvastatin has required an inefficient, multistep chemical process that involves significant quantities of hazardous reagents.


About Presidential Green Chemistry Challenge Awards Program


The Presidential Green Chemistry Challenge Awards are presented annually by the Environmental Protection Agency to recognize new technologies that help prevent pollution by reducing or eliminating hazardous waste in industrial production. It provides recognition of outstanding chemical technologies that incorporate the principles of green chemistry into chemical design, manufacture, and use, and that have been or can be utilized by industry in achieving their pollution prevention goals. The award was launched in 1995 in partnership with the chemical industry, the American Chemical Society, the National Academies and other stakeholders.

 

Japanese Mitsui Buys 5% In Arch Pharmalabs For Rs 650.000 Millions

 

Japanese firm Mitsui and Company Limited has bought 5% stake in Indian active pharmaceutical ingredient (API) manufacturer, Arch Pharmalabs Limited for around Rs.65 Cr. The investment values Arch Pharmalabs at Rs.13000.000 millions.


Mitsui’s investment will be in fresh equity issued by the company.


Mitsui will present business opportunity for Arch Pharma by establishing a liaison between drug inventors in Japan and Arch. Arch Pharma can then make the active ingredients developed by these companies or intermediaries that can be used to hold the drug to make tables or capsules.

 

Mitsui intends to strengthen the contract manufacturing organization business platform. Further this investment indicates Mitsui's recognition of India as having a huge potential for manufacturing pharmaceutical chemical intermediates and APIs and the growing market demand in the Asia Pacific region.

 

Arch Pharmalabs Limited manufactures and supplies various generic APIs and pharmaceutical intermediates to multinational pharmaceutical companies in the US, Europe and the Middle East, for drugs indicated for hypertension, hyperlipidemia, antibiotics and cancer amongst others.


Arch Pharma is also looking at an initial public offer (IPO) early next year as a route for some of its existing private equity investors to partly cash out. Prior to the stake sale, ICICI Ventures, Swisstec Ventures (venture capital arm of the Swiss Federal Government) and IL&FS collectively owned 58% in the company.

ICICI Ventures has invested Rs.1600.000 millions in the company in several stages since 2003.

 

Mitsui and Company buys 27% stake in Arch Pharmalabs, parent Company of Avon Organics

 

Thu, Jan 17, 2013

 

Avon Organics has informed that a strategic Investment has been made in Arch Pharmalabs Limited by M/s Mitsui and Company Limited Japan through a secondary market transaction, whereby Mitsui and Company have purchase 27.29% Equity Capital of Arch from Private Equity Investors in Arch.

 

Avon Organics Limited has informed BSE about the follows: Arch Pharmalabs Limited ("Arch") presently hold 63.60% Equity Capital of Avon Organics Limited thereby Making it a Subsidiary Company of Arch Pharmalabs Limited. The Company has informed that a strategic Investment has been made in Arch Pharmalabs Limited by M/s Mitsui and Company Limited Japan through a secondary market transaction, whereby Mitsui and Company have purchase 27.29% Equity Capital of Arch from Private Equity Investors in Arch. The referred transaction has been completed on January 16, 2013. Subsequent to which Mitsui and Company's shareholding in Arch Pharmalabs Limited has increased from 4.67% to 31.96% There is no change envisaged/contemplated in the control and management of Arch Pharmalabs Limited and/or at Avon Organics Limited, pursuant to above stated strategic investment by Mistui and Company Limited in Arch.

 

 

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 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.53.68

UK Pound

1

Rs.84.85

Euro

1

Rs.71.87

 

 

INFORMATION DETAILS

 

Report Prepared by :

NID

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--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

 

43

 

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.