MIRA INFORM REPORT

 

 

Report Date :

21.05.2013

 

IDENTIFICATION DETAILS

 

Name :

CENTAUR PHARMACEUTICALS PRIVATE LIMITED

 

 

Registered Office :

Centaur House, Shanti Nagar, Vakola, Santacruz (East), Mumbai – 400 055, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

15.10.1980

 

 

Com. Reg. No.:

11-023291

 

 

Capital Investment / Paid-up Capital :

Rs.184.966 millions

 

 

CIN No.:

[Company Identification No.]

U24230MH1980PTC023291

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC10186B

 

 

PAN No.:

[Permanent Account No.]

AAACC0444K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is in the business of manufacturing / contract manufacturing pharmaceutical products and Active Pharmaceutical Ingredients (APIs) and also undertakes Contract Research and Bio-Analytical and Bio-Equivalence studies.

 

 

No. of Employees :

2000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 3572000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a satisfactory track record. There appears continuous dip in the profitability of the company. However, networth appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

BB [Term Loan]

Rating Explanation

Moderate risk of default

Date

06.01.2012

 

 

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 :

Centaur House, Shanti Nagar, Vakola, Santacruz (East), Mumbai – 400055, Maharashtra, India

Tel. No.:

91-22-66499100

Fax No.:

91-22-66499108/ 112

E-Mail :

centalab@bom3.vsnl.net.in

centaur@centaurlab.com

export@cetaurchem.com

pmn@centaurpharma.com

Website :

www.centaurpharma.com

 

 

Factory :

API Division, Plot No.75/76, Chikhloli, M.I.D.C., Ambernath (West), District Thane – 421501, Maharashtra, India

 

 

DIRECTORS

 

AS ON 28.09.2012

 

Name :

Mr. Shivanand Dattatraya Sawant

Designation :

Managing Director

Address :

501, Vasant Vihar Co-Operative Housing Society Limited, TPS III, 10th Road, Santacruz (East), Mumbai – 400 055, Maharashtra, India

Date of Birth/Age :

20.03.1938

Qualification :

B.Sc. DIM LLB

Experience :

53 Years

Date of Appointment :

15.10.1980

DIN No.:

00407965

PAN No.:

AAAPS4838B

 

 

Name :

Dr. Shreekant Dattathray Sawant

Designation :

Managing Director    

Address:

Flat No.11, 6th Floor, Om Sidhivinatyak Apartment, L.T. Dilip Gupte Road, Mahim (West), Mumbai – 400016, Maharashtra, India

Date of Birth/ Age:

31.05.1949

Qualification :

M. Sc. PhD

Experience :

39 Years

Date of Appointment :

14.03.2013

DIN No.:

00745968

PAN No.:

AAHPS2107B

 

 

Name :

Dr. Anil Mahadev Naik

Designation :

Whole Time Director    

Address:

12, Vinayanand Co-Operative Housing Society, Dadabhai Cross Road No.1, Linking Road, Extension, Santacrusz (West), Mumbai – 400054, Maharashtra, India

Date of Birth/Age:

06.09.1960

Qualification :

B. Sc. (Tech), PhD

Experience :

27 Years

Date of Appointment :

01.08.2008

DIN No.:

00405271

PAN No.:

AADPN9273B

 

 

Name :

Mr. Govind Guno Desai

Designation :

Director    

Address:

Kedar Apartment, Bhandar Lane, L.J. Road Mahim, Mumbai – 400 015, Maharashtra, India

Date of Birth/ Age:

14.06.1933

Date of Appointment :

23.10.2008

DIN No.:

00140853

 

 

Name :

Mr. Sajit Kumar

Designation :

Nominee Director

Address:

Flat No.64, A Wing, Iris Park, Prabhat Estate Road, Jogeshwari (West), Mumbai – 400 102, Maharashtra, India 

Date of Birth/ Age:

04.06.1966

Date of Appointment :

21.04.2011

DIN No.:

00108263

 

 

Name :

Mrs. Smita Abhayakumar Phal

Designation :

Whole Time Director

Address:

501, Vasant Vihar Co-Operative Housing Society, Tips III,10th Road, Santacruz (East), Mumbai – 400 055, Maharashtra, India

Date of Birth/ Age:

30.08.1968

Date of Appointment :

22.06.2011

DIN No.:

02887382

PAN No.:

AAHPS4836R

 

KEY EXECUTIVES

 

Name :

Mr. Pritam Maruti Khawale

Designation :

Secretary

Address :

14/18, Mukand Iron Staff, Association Co-Operative Housing Society, Gavanpada, Mulund (East), Mumbai – 400 081, Maharashtra, India

Date of Birth/Age :

14.04.1979

Date of Appointment :

18.08.2009

PAN No.:

AMIPK2014J

 

 

Name :

Mr. Ajay K. Handa

Designation :

President

Date of Birth/Age :

55 Years

Qualification :

B. Sc., PGDBM

Experience :

34 Years

Date of Appointment :

01.06.1989

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

 

 

AS ON 28.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Venture Capital

 

23.00

Directors or relatives of directors

 

68.80

Other top fifty shareholders

 

8.20

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is in the business of manufacturing / contract manufacturing pharmaceutical products and Active Pharmaceutical Ingredients (APIs) and also undertakes Contract Research and Bio-Analytical and Bio-Equivalence studies.

 

 

Products :

Product Description

 

Item Code (ITC Code No.)

Sinarest Tab (85+15)20X10

30049069

Bulk Drugs

294200.00

Ocupol-D Drops

300420.01

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

LICENSED AND INSTALLED CAPACITIES:

 

Particulars

 

Unit of measure

Quantity

Formulations

 

 

Tablets and Capsules

 No in millions

1685

Liquid

Kilo liters

2000

Injectables

Kilo liters

30

Ointments and Medicinal Tooth Paste

Tonnes

200

Bulk Drugs

Kilos

50000

 

Notes:

A. In terms of Press Note No.4 (1994 series) dated October 25, 1994 issued by the Department of Industrial Development, Ministry of Industry, Government of India and Notification No. S.O. 137(E) dated 1 March 1999 issued by the Department of Industrial Policy and Promotion, Ministry of Industry, Government of India, industrial licensing has been abolished in respect of bulk drugs and formulations.

B. The installed capacity is as certified by the Management and not verified by the Auditors, this being a technical matter.

C. The capacity mentioned above is annual capacity based on maximum utilization of plant and machinery based on existing product mix. Installed capacity may vary due to change in product mix.

 

PRODUCTION: 

 

Particulars

 

Unit of measure

Quantity

Tablets and Capsules

 No in million

700.05

Liquid

Kiloliters

1586.23

Powder

Tonnes

0.13

Ointment and Medicinal Tooth Paste

Tonnes

34.54

Bulk Drugs

Kilos

22674.93

 

 

GENERAL INFORMATION

 

No. of Employees :

2000 (Approximately)

 

 

Bankers :

·         State Bank of India, Industrial Finance Branch, Snehal Chambers, Teli Galli, Andheri (East), Mumbai – 400 069, Maharashtra, India

·         Axis Bank Limited, Fort Branch, Universal Insurance Building, Sir P.M. Road, Mumbai – 400 001, Maharashtra, India

·         State Bank of India, IFB, Natraj Building, 102, 1st Floor, 194, Sir M.V. Road, Western Express Highway, Andheri (East), Mumbai – 400 069, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Rupee term loans from banks

76.900

206.600

Rupee term loans from others

9.400

0.000

SHORT-TERM BORROWINGS

 

 

Loans repayable on demand from banks

380.500

373.100

 

 

 

Total

466.800

579.700

 

 

 

Banking Relations :

--

 

 

Finance Institutes:

Electronica Finance Limited, 128/A, Plot No.3,Kailashchandra Apartments, Paud Road, Kothrud, Pune – 411 038, Maharashtra, India

Auditors :

 

Name :

B.S.R. and Associates

Chartered Accountants

Address :

Lodha Excelus, 5th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai – 400 011, Maharashtra, India

PAN No.:

AAIFB7355D

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs.10/- each

Rs.200.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

18496560

Equity Shares

Rs.10/- each

Rs.184.966 Millions

 

 

 

 

 

a) Rights, preferences and restrictions attached to the shares:-

 

The Company has one class of equity share having a par value of Rs 10/- per share. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholdings.

 

b) Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

 

9029212 Equity shares of Rs.10 each were issued as fully paid-up to the shareholders of erstwhile Centaur Chemicals Private Limited (pursuant to the Scheme of Amalgamation of Centaur Chemicals Private Limited with the Company).

 

9029212 Equity shares of Rs.10 each were issued as fully paid-up to the shareholders of erstwhile Centaur Drug House Private Limited and Centaur Laboratories Private Limited (pursuant to the Scheme of Amalgamation of Centaur Drug House Private Limited and Centaur Laboratories Private Limited with the Company).


 

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

184.966

184.966

184.966

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

708.000

664.900

604.083

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

892.966

849.866

789.049

LOAN FUNDS

 

 

 

1] Secured Loans

466.800

579.700

668.201

2] Unsecured Loans

82.100

77.600

45.908

TOTAL BORROWING

548.900

657.300

714.109

DEFERRED TAX LIABILITIES

47.700

0.000

10.383

 

 

 

 

TOTAL

1489.566

1507.166

1513.541

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 
 

 

FIXED ASSETS [Net Block]

1335.500

1345.100

1117.224

Capital work-in-progress

44.400

14.700

153.540

 

 

 

 

INVESTMENT

0.100

0.100

0.068

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

371.300
313.300
253.055

 

Sundry Debtors

385.500
329.800
287.298

 

Cash & Bank Balances

23.700
32.000
127.106

 

Other Current Assets

4.766
7.666
0.000

 

Loans & Advances

153.300
119.700
79.637

Total Current Assets

938.566
802.466

747.096

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

339.300
282.400

386.214

 

Other Current Liabilities

407.800
322.000

79.185

 

Provisions

81.900
50.800
38.988

Total Current Liabilities

829.000
655.200

504.387

Net Current Assets

109.566
147.266
242.709

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1489.566

1507.166

1513.541

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

 

 

 

 

 

GROSS SALES

NA

1967.232

1708.216

 

 

 

 

 

Less

TOTAL EXPENSES

NA

NA

NA

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

NA

188.284

164.351

 

 

 

 

 

Less

INTEREST                                                       

NA

73.175

65.689

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

NA

115.109

98.662

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

NA

63.869

57.578

 

 

 

 

 

 

PROFIT BEFORE TAX               

NA

51.240

41.084

 

 

 

 

 

Less

TAX                                                     

NA

(9.583)

(75.964)

 

 

 

 

 

 

PROFIT AFTER TAX

43.100

60.823

117.048

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

67.061

(49.987)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

127.884

67.061

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of Exports

607.000

596.067

447.958

 

 

Product Development Charges

8.600

23.736

9.121

 

TOTAL EARNINGS

615.600

619.803

457.079

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

NA

NA

35.976

 

 

Capital Goods

NA

NA

10.014

 

TOTAL IMPORTS

NA

NA

45.990

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.33

3.29

6.33

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

Return on Total Assets

(PBT/Total Assets}

(%)

NA
2.39
2.20

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

NA
0.06
0.05

 

 

 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 

0.61
0.77
0.91

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

1.13
1.22
1.48

 

 

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 two 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

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]

PAN of Proprietor/Partner/Director, if available

Yes

32]

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

Yes

33]

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

No

34]

External Agency Rating, if available

Yes

 

 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Other external commercial borrowings

34.800

29.800

Loans and advances from directors

18.700

17.700

Loans and advances from others

28.300

28.300

SHORT-TERM BORROWINGS

 

 

Loans and advances from others

0.300

1.800

 

 

 

Total

82.100

77.600

 

BACKGROUND AND PRINCIPAL ACTIVITIES

 

The Company was incorporated on 15th October 1980 as a Private Limited Company under the Companies Act, 1956 (‘the Act’). Thereafter, by virtue of provisions of Section 43A of the Act, it became deemed Public Limited Company with effect from 1 July 1996 and after elimination of the aforesaid provision vide the Companies (Amendment) Act, 2000, the Company again, regained its previous status of Private Limited Company.

 

To attain integration and cost effectiveness, Centaur Drug House Private Limited (CDHPL) and Centaur Laboratories Private Limited (CLPL) were merged with the Company in the year 2006-07 and Centaur Chemicals Private Limited (CCPL) was merged with the Company in the year 2007-08.

 

The Company is in the business of manufacturing / contract manufacturing pharmaceutical products and Active Pharmaceutical Ingredients (APIs). The Company also undertakes Contract Research and Bio-Analytical and Bio-Equivalence studies.

 

INDUSTRY OVERVIEW AND OPERATIONS OF THE COMPANY

 

Global and Indian pharmaceutical market environment and the Company’s strategic position In 2011, the Global Pharmaceutical Market (GPM) grew at 4% to touch sales of $880 billion (IMS). The GPM growth has steadily declined from double-digits in the 1990s to high single digits in the new millennium to low single digits post 2010. The factors that decelerate growth are the increasing generic acceptance, drug patent expiries and decreased new drug approvals; while the factors that accelerate growth are new drugs for unmet needs, higher life expectancy, growing health awareness and growing penetration in emerging markets. The Indian Pharmaceutical Market (IPM) accounts for only 1.5% of the GPM with sales of $13 billion but grew at 17% in 2012 (MAT AWACS-Mar12), and is slated to touch $25 billion by 2020 with a CAGR of 13%. In the IPM 85% sales accrue through pharmacies, 9% through hospitals and 6% through doctor purchases. The growth accelerators include chronic therapies due to lifestyle diseases, price and demographic changes, growing rural penetration, improving healthcare infrastructure, medical tourism destination and global patent expiries; while the growth decelerators are largely regulatory measures. An emerging trend is the growing interest of the global pharmaceutical firms to acquire outright, or buy a strategic stake in large Indian pharmaceutical firms as well as privately held SME, by offering attractive valuations. The Company is among India’s few, fully integrated pharmaceutical players with proficiencies across the pharmaceutical value chain- Formulations, API (Active Pharmaceutical Ingredients) and CRAM (Contract Research and Manufacturing). Within the IPM the Company was ranked 43rd in the prescription audit (CMARC) and 51st (IMS) in the wholesale audit. The Company has consistently outgrown in the IPM over the past five years. The Company is a leader in 6 therapy areas across respiratory and ophthalmology segments with robust support from key specialties like paediatricians, ophthalmologists, ENT surgeons and physicians. Sinarest, their flagship brand continues to sustain its leadership amid intense national, international, regional and OTC competition. The WHO - GMP approved facilities at Goa exclusively manufacture for the domestic and non-regulated markets. The global API market in 2011 was $50 billion with China accounting for $20 billion. India ranks second with $8 billion sales of which $6.5 billion are exports and $1.5 billion is for domestic consumption. The Company is a leader in the psychotropic API segment having pioneered the introduction of 28 API in India. The API facility in Ambernath is USFDA and AFSSAPS approved with proficiencies ranging from conceptualization to commercialization of API and a clientele of big pharmaceutical, generic majors and Indian multinational firms. The Global Clinical Research market will touch $33 billion in 2015. The Indian Clinical Research Organization (CRO) market in 2011 was $485 million with 12% growth, slated to cross $1.0 billion in 2016. India is emerging as a major CRO destination due to a large, easy-to-access, treatment-naive population; higher cost arbitrage of up 30-50% over US and an improved regulatory environment. The Indian CRO market has over 150 players including global CRO majors who dominate, Indian CROs, MNC pharmaceutical companies and Indian pharmaceutical companies. The focus is on global Phase II and III trials with a small share of local trials. Oncology, Cardiology, Dermatology, Neurology and Respiratory are the key therapeutic areas in clinical research. The CRO division of the Company, Lifesan, is approved by CDSCO India, MCC South Africa, BfArM Germany and BPFK Malaysia. Lifesan has established strategic partnerships with international niche players across various therapeutic categories and has successfully achieved regulatory milestones in key drugs. The CRO business is pivotal to leverage the Company’s state of the art infrastructure and harness synergies across the pharmaceutical value chain. In 2011 the Global Contract Manufacturing Industry was valued at $70 billion growing at 11%, while the Indian Contract Manufacturing Industry grew at a CAGR of 33% to inch close to $4.0 billion in 2012. India offers a highly skilled scientific pool, API and regulatory competencies and world class infrastructure, at a fraction of the cost in the regulated markets, which makes it an attractive destination for big pharmaceutical and the generic majors to outsource manufacturing. India had 169 USFDA approved plants in 2012. The Company’s formulations facility in Pune is approved by the USFDA, UK MHRA, TGA and WHO, which has placed the Company in a strategic position to exploit contract manufacturing opportunities across regulated markets. They further wish to inform you that distinguished panel of juries of Organisation of Pharmaceutical Products of India have selected the Company as the winner of the OPPI Best Vendor Award’ 2012 in Contract Manufacturing Category. With their presence being established across key verticals in the pharmaceutical spectrum, the Company is at an inflection point to achieve their vision of emerging as a ‘global pharmaceutical player’.

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

Corporate identity number of the company

U24230MH1980PTC023291

Name of the company

CENTAUR PHARMACEUTICALS PRIVATE LIMITED

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

Centaur House, Shanti Nagar, Vakola, Santacruz (East), Mumbai – 400 055, Maharashtra, India

E-Mail: centaur@centaurlab.com

This form is for

Modification of charge

Charge identification number of the modified 

10291402

Type of charge

Book Debts

Movable Property (not being pledge)

Others (Plant and machinery, Current Assets, Stocks.)

Particular of charge holder

State Bank of India, IFB, Natraj Building, 102, 1st Floor, 194, Sir M.V. Road, Western Express Highway, Andheri (East), Mumbai – 400 069, Maharashtra, India

E-Mail: aniketshejwal@sbi.co.in

Nature of description of the instrument creating or modifying the charge

1. First Supplemental working capital consortium agreement for increase in the overall limit.

2. First Supplemental Joint deed of hypothecation for increase in the overall limit.

3. First Supplemental inter se agreement among.

 

All of the above agreements dated March 26, 2013 and constitute single charge.

Date of instrument Creating the charge

26.03.2013

Amount secured by the charge

Rs.623.000 millions

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

Rate of Interest:

For SBI DCC at 3.50% above BR i.e. 13.20% pa against app card rate of 4.50% above BR i.e. 14.20% Mon rests SLOC at 3.50% above BR i.e. 13.20% pa against app card rate of 5.50% above BR i.e. 15.20% Mon rests.

 

Terms of Repayment:

Repayable on demand for banks.

 

Margin:

For SBI - RM (Domestic and imported) including pack material - 25%, SIP - 40%, FG - 33.33%, Book Debts (Existing 60 days) - 40%, LC - 25%, BG - 25%.

 

Extent and Operation of the charge:

Security to cover principal amount together with interest, costs, charges and expenses etc.

 

Others:

SBI - Rs.523.000 millions, Canara Bank - Rs.100.000 millions, Total - Rs.623.000 millions. 

 

All terms and conditions as per the State Bank of India and Canara Bank Sanctioned letter and loan agreement.

Short particulars of the property charged

All and singular borrower's current assets of the borrower's namely, stock of raw materials, stock in process, semi finished and finished goods, stores and spares (consumable stores and spares) bills receivables and book debts and all other movables and movable fixed assets of the borrower both present and future excluding such movables as may be permitted by the said banks from time to time but including documents of title to goods and other assets such as outstanding moneys receivables including receivables by way of cash assistance and/or cash including under the cash incentive scheme or any other scheme claims including claims by way of refund of customs/excise duties under the draw drawback credit scheme or any other scheme bills invoices documents contracts engagements securities investments and right both present and future of borrower being and lying in the borrowers premises or godown of of or rented and whether lying loose or in cases or otherwise used in the business or the borrower at the said site or in transit or lying anywhere now belonging to or that may at any time during the continuance of the said facilities and this security belong to the borrower or that may be held by any party of the order or disposition of the borrower Plant and machinery (List attached) on first pari passu basis with consortium members viz. A bank and B bank.

Date of latest modification prior to the present modification

03.05.2011

Particulars of the present modification 

Now by this and present modification, the overall amount of charge be increased from existing of Rs.473.000 millions to Rs.623.000 millions

 

Fixed assets:

 

·         Land Freehold

·         Land Leasehold

·         Factory Building

·         Office Building/Guest House

·         Furniture and Fixtures

·         Vehicles

·         Plant and Machinery

 

 

 


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.55.04

UK Pound

1

Rs.83.61

Euro

1

Rs.70.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

42

 

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.