MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

AMNEAL LIFE SCIENCES PRIVATE LIMITED

 

 

Registered Office :

882/1 – 871, Village Rajoda, Near Hotal Kankavati, Bavla – 382 220, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

31.03.2008

 

 

Com. Reg. No.:

04-053430

 

 

Capital Investment / Paid-up Capital :

Rs. 217.068 millions

 

 

CIN No.:

[Company Identification No.]

U73100GJ2008PTC053430

 

 

PAN No.:

[Permanent Account No.]

AAGCA9685C

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing of Pharmaceutical Bulk Drugs.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 860000

 

 

Status :

Yet to commence commercial activities.

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is held by Amneal Pharmaceuticals LLC USA and Amneal Pharma Investment Holdings (Amneal Group).

 

Even though the company was incorporated in the year 2008, It is yet commence its commercial activities.

 

However, the networth of the company appears to be strong. The company get good support from its holding companies. Business is active. Payments are unknown.

 

In view of experienced promoters, the company can be considered for business dealing 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 – 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

BB (Term Loan) = Fund Based Limits

Rating Explanation

Moderate risk of default.

Date

March 2013

 

 

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 :

882/1 – 871, VL. Rajoda, Near Hotal Kankavati, Bavla – 382 220, Gujarat

Tel. No.:

91-2714-304700

Fax No.:

Not Available

E-Mail :

sandipv@amneal.com

accounts@amnealindia.com

 

 

Research and Development :

Plot No., 15, 16, 17, “PHARMEZ” Special Economic Zone, Sarkhej – Bawla Highway, Matoda, Ta.Sanand, District Ahmedabad, Gujarat, India

 

 

Factory:

Located At :

New York

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Suresh Punambhai Patel

Designation :

Director

Address :

Block No. 54, Shri Somnathnagar C, Housing Society lImited, Behind Sanghvi School, Narangpura Road, Wadaj, Ahmedabad – 380 013, Gujarat, India

Date of Birth/Age :

15.03.1961

Date of Appointment :

31.03.2008

DIN No.:

01856345

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U24231GJ2006PTC048109

AMNEAL PHARMACEUTICALS COMPANY (INDIA) PRIVATE LIMITED

Whole-time director

01/10/2011

07/04/2006

-

Active

NO

2

U73100GJ2008PTC053430

AMNEAL LIFE SCIENCES PRIVATE LIMITED

Director

31/03/2008

31/03/2008

-

Active

NO

3

U24233GJ2008PTC068526

RAKS PHARMA PRIVATE LIMITED

Director

30/09/2011

30/07/2010

-

Active

NO

 

 

Name :

Mr. Kanubhai Punambhai Patel

Designation :

Director

Address :

22 Ramyakunj Society Opposite Galaxy Cinema, N H NO 8 Naroda -  382325, Ahmedabad, Gujarat, India

Date of Birth/Age :

31.08.1942

Date of Appointment :

31.03.2008

DIN No.:

01883090

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U24231GJ2006PTC048109

AMNEAL PHARMACEUTICALS COMPANY (INDIA) PRIVATE LIMITED

Director

17/11/2007

17/11/2007

-

Active

NO

2

U73100GJ2008PTC053430

AMNEAL LIFE SCIENCES PRIVATE LIMITED

Director

31/03/2008

31/03/2008

-

Active

NO

 

 

Name :

Ms. Chintu Patel

Designation :

Director

Address :

115 Northfield Road, Parsippany, New Jersey -  070543167

Date of Birth/Age :

05.10.1971

Date of Appointment :

31.03.2008

DIN No.:

01980171

Other Directorship :

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U24231GJ2006PTC048109

AMNEAL PHARMACEUTICALS COMPANY (INDIA) PRIVATE LIMITED

Director

07/04/2006

07/04/2006

-

Active

NO

2

U73100GJ2008PTC053430

AMNEAL LIFE SCIENCES PRIVATE LIMITED

Director

31/03/2008

31/03/2008

-

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Mr. Pushpa Joshi

Designation :

Secretary

Address :

J – 5, Ground Floor, Shri Nandnagar, Part – 4, Vejalpur, Ahmedabad – 380 051, Gujarat, India

Date of Appointment :

04.09.2012

PAN No.:

AXSPP6822A

 

 

MAJOR SHAREHOLDERS

 

As on 29.09.2012

 

Names of Shareholders

 

No. of Shares

 

 

 

Amneal Pharmaceuticals LLC USA

 

12213753

Amneal pharma Investment Holding, Mauritius

 

9142165

Kanan LLC, NJ

 

350761

Suresh Patel

 

100

 

 

 

TOTAL

 

21706779

 

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

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

99.99

Directors or relatives of Directors

0.01

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Pharmaceutical Bulk Drugs.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Bank of Baroda, Shapath – III, Ground Floor, near GNFC Info Tower, Badakdev, Ahmedabad – 380 054, Gujarat, India

 

 

Facilities :

Secured Loan

As on

31.03.2012

(Rs. in

Millions)

As on

31.03.2011

(Rs. in

Millions)

Term Loans

621.594

0.000

Total

621.594

0.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Apaji Amin and Company

Chartered Accountants

Address :

304 Akansha Building, Opposite Vadilal House, Navrangpura, Ahmedabad, Gujarat, India

PAN No.:

AMDPS6538G

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorized Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs. 10/- each

Rs. 250.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

 

No. of Shares

Type

Value

Amount

 

 

 

 

21706779

Equity Shares

Rs. 10/- each

Rs. 217.068 millions

 

 

 

 

 

 

 


FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

217.068

125.646

100.445

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

217.068

125.646

100.445

LOAN FUNDS

 

 

 

1] Secured Loans

621.594

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

621.594

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

838.662

125.646

100.445

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

92.919

92.235

1.561

Capital work-in-progress

130.888

9.518

0.000

 

 

 

 

INVESTMENT

350.044

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

0.000

0.000

0.000

 

Cash & Bank Balances

242.188

23.457

2.022

 

Other Current Assets

0.557

0.000

0.000

 

Loans & Advances

33.293

0.686

95.610

Total Current Assets

276.038

24.143

97.632

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

0.000

0.000

0.101

 

Other Current Liabilities

10.812

0.231

0.001

 

Provisions

0.415

0.019

0.000

Total Current Liabilities

11.227

0.250

0.102

Net Current Assets

264.811

23.893

97.530

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

1.354

 

 

 

 

TOTAL

838.662

125.646

100.445

 


KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.91

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

24.58

96.57

957.17

 

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

No

12]

Profitability for last three years

No

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

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

Yes

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

 

 

BANKERS CHARGES REPORT AS PER REGISTRY:

 

Corporate identity number of the company

U73100GJ2008PTC053430

Name of the company

AMNEAL LIFE SCIENCES PRIVATE LIMITED

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

882/1-871, VIL. Rajoda, Near Hotel Kankavati, Bavla – 382220, Gujarat, India

e-mail: sandipv@amneal.com

This form is for

Creation of charge

Type of charge

  • Immovable Property
  • Book Debts
  • Movable Property
  • Plant and Machinery

Particular of charge holder

Bank of Baroda, Shapath – III, Ground Floor, near GNFC Info Tower, Badakdev, Ahmedabad – 380 054, Gujarat, India

e-mail: sghahm@bankofbaroda.com

Nature of description of the instrument creating or modifying the charge

Indenture of Mortgage

Date of instrument Creating the charge

07.02.2012

Amount secured by the charge

Rs. 1200.000 millions

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

Rate of Interest

LIBOR+470 B.P.S P.A

 

Terms of Repayment

First two quarterly installments commencing from 31st December 2013 of 0.85 million USD each. Next 20 quarterly installments of 1.12 million USD each commencing from 30th June 2014. 23rd installment 1.41 million USD on 30th June 2019. Last installment of 1.49 million USD on 30th September 2019.

 

Margin

6 Months LIBOR+470 B.P.S P.A

 

Extent and Operation of the charge

First Charge Over The Said Property

Short particulars of the property charged

The whole of the movable properties of the Borrower including its movable plant and machinery, machinery spares, tools and accessories and other movables both present and future whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Borrower's movable fixed assets situated at Plot No.15, 16 and 17, Zydus Pharmaceutical SEZ at Sarkhej Bavla NH No.8-A, Nr. Village Matoda, Taluka Sanand, District Ahmedabad in the State of Gujarat or wherever else the same may be  or  be held  by  any party to the order or disposition  of  the Borrower  or in the course of transit or on high seas  or on  order or delivery, howsoever and wheresoever in  the possession   of  the  Company  and  either  by  way   of substitution or addition.

All those pieces and parcels of leasehold land bearing

(A)   Plot No. 15 totally admeasuring 12559.85 sq meters

(B)   Plot No. 16 totally admeasuring 10222.46 sq meters

(C)   Plot No. 17 totally admeasuring 10158.69 sq meters

Are mortgaged in favour of bank of Baroda, s.g highway branch, Ahmedabad as prescribed in the indenture of mortgage.

Current assets i.e hypothecation of stocks(RM, SIP, Spares, FG, WIP), book debts and bills receivables etc.


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 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.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

INFORMATION DETAILS

 

Report Prepared by :

RAJ

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

--DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

27

 

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.