MIRA INFORM REPORT
|
Report Date : |
24.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
GRANULES INDIA LIMITED |
|
|
|
|
Registered
Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad,
Hyderabad – 500 081, Andhra Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation
: |
18.03.1991 |
|
|
|
|
Com. Reg. No.: |
01-012471 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.201.262
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110AP1991PLC012471 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
HYDG00432F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG7369K |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are
Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the manufacturing and selling of Active
Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates
(PFIs) and Finished Dosages (FDs). |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10832000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Profit margin of the company has increased. And financial performance of
the company appears to be fair. Trade relations are fair. Business is active. Payment terms are
reported to be regular. The company can be considered for business dealing 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
They are living in a
world where volatility and uncertainty have become the New Normal. They
saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. They
have taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in existence.
Kodak, the inventor of the digital camera had to wind up its operations, HMV,
the British entertainment retailing company and Borders, once the second
largest bookstore have shut down due to their inability to evolve their
business models with the changing time. Readers’ Digest, Thomson Register are
no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: BBB+
|
|
Rating Explanation |
Moderate credit quality and average credit risk. |
|
Date |
05.09.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
05.09.2013 |
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/ Corporate Office : |
Second Floor, Block III, My Home Hub, Madhapur, Cyberabad,
Hyderabad – 500 081, Andhra Pradesh, India |
|
Tel. No.: |
91-40-66760000 |
|
Fax No.: |
91-40-23115145 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Factory 1 : |
Plot No.15/A/1,
Phase-III, I.D.A. Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India. |
|
|
|
|
Factory 2 : |
Temple Road, Bonthapally, Medak District – 502 313, Andhra Pradesh, India |
|
|
|
|
Factory 3 : |
Plot No.160/A and 161/E, Gagillapur Village, Qutubullapur Mandal, R.R. District – 500043, Andhra Pradesh, India |
|
|
|
|
R&D Centre 1 : |
Formulations Gagillapur, Qutubullapur Mandal, Ranga Reddy District – 500 043, Andhra Pradesh, India |
|
|
|
|
R&D Centre 2 : |
API Plot No.15/A/1, Phase-III, I.D.A. Jeedimetla, Hyderabad – 500 055, Andhra Pradesh, India |
|
|
|
|
R&D Centre 3 : |
API Gat No.258,
Shreeram Building, Lawale Phata, Pirangut, Taluka Mulshi, District Pune – 412
108, Maharashtra, India |
|
|
|
|
Overseas Offices : |
Located at: · Europe · U.S. · Canada ·
· Asia · Middle East · Africa |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Dr. C. Nageswara Rao |
|
Designation : |
Chairman – Non-Executive, Non-Independent |
|
Date of Birth/Age : |
15.08.1926 |
|
Qualification : |
M. S. (Surgery and Urology) |
|
Date of Appointment : |
18.03.1991 |
|
|
|
|
Name : |
Mr. C. Krishna Prasad |
|
Designation : |
Managing Director – Non-Independent |
|
Date of Birth/Age : |
02.10.1954 |
|
Qualification : |
B. Sc. |
|
Date of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr. L.S. Sarma |
|
Designation : |
Director – Non-Executive, Independent |
|
|
|
|
Name : |
Mr. A.P. Kurian |
|
Designation : |
Director – Non-Executive, Independent |
|
|
|
|
Name : |
Mr. C. Parthasarathy |
|
Designation : |
Director – Non-Executive, Independent |
|
Date of Birth/Age : |
07.07.1955 |
|
Qualification : |
B. Sc., LLB, FCA, FCS |
|
Date of Appointment : |
27.05.2009 |
|
|
|
|
Name : |
Dr. Krishna Murthy Ella |
|
Designation : |
Director – Non-Executive, Independent |
|
|
|
|
Name : |
Mr. Arun Rao Akinepally |
|
Designation : |
Director – Non-Executive, Independent |
|
|
|
|
Name : |
Mr. Harsha Chigurupati |
|
Designation : |
Executive Director – Non-Independent |
|
|
|
|
Name : |
Mrs. Uma Chigurupati |
|
Designation : |
Executive Director – Non-Independent |
|
|
|
|
Name : |
Mr. K.B. Sankara Rao |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. B. Madhusudan Rao |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. VVS Murthy |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Stefan Lohle |
|
Designation : |
Chief Marketing Officer |
|
|
|
|
Name : |
Ms. Shivangi Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8054753 |
40.02 |
|
|
749127 |
3.72 |
|
|
8803880 |
43.74 |
|
|
|
|
|
|
144177 |
0.72 |
|
|
144177 |
0.72 |
|
Total shareholding of Promoter and Promoter Group (A) |
8948057 |
44.46 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4928 |
0.02 |
|
|
312041 |
1.55 |
|
|
316969 |
1.57 |
|
|
|
|
|
|
462249 |
2.30 |
|
|
|
|
|
|
2733800 |
13.58 |
|
|
1156627 |
5.75 |
|
|
6509452 |
32.34 |
|
|
5990636 |
29.76 |
|
|
457492 |
2.27 |
|
|
61324 |
0.30 |
|
|
10862128 |
53.97 |
|
Total Public shareholding (B) |
11179097 |
55.54 |
|
Total (A)+(B) |
20127154 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
20000 |
0.00 |
|
|
20000 |
0.00 |
|
Total (A)+(B)+(C) |
20147154 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacturing and selling of Active
Pharmaceutical Ingredients (APIs), Pharmaceutical Formulation Intermediates (PFIs)
and Finished Dosages (FDs). |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
APIs |
MT |
NA |
10400.00 |
9934.58 |
|
PFIs |
MT |
NA |
8400.00 |
5469.65 |
|
Formulations (Tablets) |
MT |
NA |
6000.00 |
2000.70 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
· Andhra Bank, Somajiguda Branch, Hyderabad – 500 177, Andhra Pradesh, India · State Bank of India · Standard Chartered Grindlays Bank Limited, Hyderabad – 500 177, Andhra Pradesh , India · Citibank NA, Hyderabad-500 177, Andhra Pradesh , India · State Bank of Hyderabad, Gun Foundry, Hyderabad – 500 177, Andhra Pradesh, India · ING Vysya Bank · IndusInd Bank · Bank of Baroda ·
Union Bank of ·
Export-Import Bank of · State Bank of Travancore |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
Notes: LONG TERM
BORROWINGS All secured term
loans are secured by a pari-passu first charge on fixed assets and a
pari-passu second charge of the current assets of the Company. Of the Indian
rupee loans from banks and foreign currency loans from banks, loans of Rs. Nil as on
31-March-2013 (Rs.46.714 millions as on 31-March-2012) are further guaranteed
by the personal guarantee of the Managing Director. Of the foreign
currency loans from Financial Institutions on account of Rs.1097.400 millions
as on 31-March-2013 (Rs.517.975 millions as on 31-March-2012) is further
guaranteed by the personnel guarantee of the Managing Director. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
International Finance Corporation |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Kumar and Giri Chartered Accountants |
|
Address : |
D.No.1-11-126/D, Opposite Aeroview Towers, Begumpet,
Hyderabad – 500 016, Andhra Pradesh, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Dhanunjaya and Prabhakar Chartered Accountants |
|
Address : |
302, Wings,
8-3-960/6/2, Srinagar Colony, Hyderabad – 500 073, Andhra Pradesh,
India |
|
|
|
|
Wholly Owned Subsidiary Companies : |
·
Granules USA Inc. ·
GIL Life Sciences Private Limited ·
Granules Singapore Pte Limited |
|
|
|
|
Joint Venture: |
·
Granules-Biocause Pharmaceutical Co. Limited ·
Granules Omnichem Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20126154 |
Equity Shares |
Rs.10/- each
|
Rs.201.262
millions |
|
|
|
|
|
Reconciliation of the
number of shares outstanding and the amount of share capital as at March 31,
2013
|
Particulars |
As at 31st
March, 2013 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
Number of shares
at the beginning of the year |
20061654 |
200.617 |
|
Add: Shares
issued on exercise of employee stock options |
64500 |
0.645 |
|
Number of shares
at the end of the year |
20126154 |
201.262 |
Terms/Rights
attached to equity shares:
The Company has only
one class of equity shares having a par value of Rs.10/-. Each holder of equity
shares is entitled to one vote per share. 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.
During the year
end 31-March-2013, the amount of per share dividend recognized as distribution
to equity shareholders was Rs.2.00/-
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.
Details of
shareholders holding more than 5% shares in the Company
|
Particulars |
As at 31st
March, 2013 |
|
|
No. of Shares |
% |
|
|
C. Krishna Prasad |
6535663 |
32.47 |
|
Investco Management LLC |
2211200 |
10.99 |
|
Ridgeback Capital Asia Limited |
2072504 |
10.30 |
|
International Finance Corporation |
1715301 |
8.52 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
201.262 |
200.617 |
200.572 |
|
(b) Reserves & Surplus |
2503.668 |
2246.752 |
2020.163 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
3.150 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2708.080 |
2447.369 |
2220.735 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
1407.237 |
880.534 |
378.327 |
|
(b) Deferred tax liabilities (Net) |
250.987 |
230.918 |
199.138 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
Long-term provisions |
21.238 |
15.303 |
11.898 |
|
Total
Non-current Liabilities (3) |
1679.462 |
1126.755 |
589.363 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
767.148 |
614.127 |
477.963 |
|
(b)
Trade payables |
838.475 |
642.269 |
352.467 |
|
(c)
Other current liabilities |
130.257 |
193.628 |
185.805 |
|
(d)
Short-term provisions |
47.093 |
46.632 |
34.966 |
|
Total
Current Liabilities (4) |
1782.973 |
1496.656 |
1051.201 |
|
|
|
|
|
|
TOTAL |
6170.515 |
5070.780 |
3861.299 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2324.008 |
2215.306 |
2041.751 |
|
(ii)
Intangible Assets |
124.338 |
156.233 |
188.128 |
|
(iii)
Capital work-in-progress |
916.026 |
290.752 |
61.364 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
412.960 |
327.960 |
226.025 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
125.276 |
203.488 |
106.759 |
|
(e)
Other Non-current assets |
36.754 |
4.024 |
1.180 |
|
Total
Non-Current Assets |
3939.362 |
3197.763 |
2625.207 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
94.592 |
0.000 |
0.000 |
|
(b)
Inventories |
1084.907 |
885.736 |
601.337 |
|
(c)
Trade receivables |
680.966 |
530.280 |
375.451 |
|
(d)
Cash and cash equivalents |
61.597 |
236.520 |
68.235 |
|
(e)
Short-term loans and advances |
56.479 |
26.394 |
20.339 |
|
(f)
Other current assets |
252.612 |
194.087 |
170.730 |
|
Total
Current Assets |
2231.153 |
1873.017 |
1236.092 |
|
|
|
|
|
|
TOTAL |
6170.515 |
5070.780 |
3861.299 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
6797.970 |
5626.777 |
4056.770 |
|
|
|
Other Income |
17.181 |
12.082 |
7.117 |
|
|
|
TOTAL (A) |
6815.151 |
5638.859 |
4063.887 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
Materials consumed |
4252.584 |
3613.993 |
2527.002 |
|
|
|
Changes in
inventories of finished goods and work-in- progress |
(74.062) |
(59.224) |
(14.284) |
|
|
|
Employee
benefits expense |
504.205 |
379.572 |
283.442 |
|
|
|
Other expenses |
1324.668 |
966.445 |
719.552 |
|
|
|
TOTAL (B) |
6007.395 |
4900.786 |
3515.712 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
807.756 |
738.073 |
548.175 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
164.949 |
154.941 |
109.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
642.807 |
583.132 |
438.365 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
202.089 |
179.760 |
164.382 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX (E-F) (G) |
440.718 |
403.372 |
273.983 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
138.965 |
130.309 |
56.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
301.753 |
273.063 |
217.183 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
993.796 |
787.845 |
616.489 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Provision for Dividend |
40.252 |
40.123 |
30.086 |
|
|
|
Provision for Dividend tax |
6.841 |
6.509 |
4.881 |
|
|
|
Transfer to General Reserve |
22.631 |
20.480 |
10.860 |
|
|
|
|
69.724 |
67.112 |
45.827 |
|
|
BALANCE CARRIED
TO THE B/S |
1225.825 |
993.796 |
787.845 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of goods
calculated on F.O.B. basis |
5457.763 |
4821.839 |
3155.989 |
|
|
TOTAL EARNINGS |
5457.763 |
4821.839 |
3155.989 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2759.834 |
2168.052 |
1749.380 |
|
|
|
Components and
Spare Parts |
12.277 |
9.495 |
5.070 |
|
|
|
Capital Goods |
150.829 |
92.709 |
120.565 |
|
|
TOTAL IMPORTS |
2922.940 |
2270.256 |
1875.015 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
15.02 |
13.61 |
10.83 |
|
|
|
- Diluted |
14.62 |
13.56 |
10.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
2087.100 |
|
Total Expenditure |
|
|
1798.500 |
|
PBIDT (Excl OI) |
|
|
288.600 |
|
Other Income |
|
|
17.000 |
|
Operating Profit |
|
|
305.700 |
|
Interest |
|
|
34.100 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
271.600 |
|
Depreciation |
|
|
50.100 |
|
Profit Before Tax |
|
|
221.400 |
|
Tax |
|
|
74.100 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
147.300 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
147.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.43
|
4.84 |
5.34
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.48
|
7.17 |
6.75
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.10
|
9.06 |
7.67
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.16 |
0.12
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.80
|
0.61 |
0.39
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25
|
1.25 |
1.18
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
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 |
Yes |
|
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 |
LITIGATION
DETAILS:
|
ITTA 34 / 2010 |
ITTASR 92 / 2008 |
CASE IS:PENDING |
|
||||||||||||
|
||||||||||||
|
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10389714 |
30/11/2012 |
527,500,000.00 |
DEG - DEUTSCHE
INVESTITIONS- UND ENTWICKLUNGSGESEL |
KAMMERGASSE 22, COLOGNE,
- 50676, GERMANY |
B63236012 |
|
2 |
10389717 |
30/11/2012 |
527,500,000.00 |
INTERNATIONAL
FINANCE CORPORATION |
2121
PENNSYLVANIA AVENUE, N.W., WASHINGTON DC, WA |
B63236624 |
|
3 |
10379712 |
14/09/2012 |
150,000,000.00 |
ANDHRA BANK |
SOMAJIGUDA
BRANCH, #6-3-352/2, ASTRAL HEIGHTS, ROAD NO.1, BANJARA HILLS, HYDERABAD,
ANDHRA PRADESH - |
B59377721 |
|
4 |
10319592 |
22/11/2011 |
49,150,000.00 |
INTERNATIONAL
FINANCE CORPORATION |
2121
PENNSYLVANIA AVENUE, N.W., WASHINGTON DC, 20 |
B26012047 |
|
5 |
10309940 |
22/09/2011 |
75,000,000.00 |
INDUSIND BANK
LIMITED |
2401 GEN THIMMAYA
ROAD, CANTONMENT, PUNE, MAHARASHTRA - 411001, INDIA |
B22441141 |
|
6 |
10224217 |
15/04/2010 |
87,500,000.00 |
BANK OF BARODA |
CORPORATE
FINANCIAL SERVICES HYDERABAD BRANCH, 3-6-262/6, TIRUMALA ESTATES, HIMAYAT NAGAR,
HYDERABAD, ANDHRA PRADESH - 500029, INDIA |
A85176519 |
|
7 |
10082831 |
22/12/2007 |
360,000,000.00 |
INTERNATIONAL
FINANCE CORPORATION |
IFC'S SOUTH ASIA
DEPARTMENT, GATE NO.3, NITI MAG, 50-M, SHANTHIPATH, CHANAKYAPURI,, NEW DELHI,
DELHI - 110021, INDIA |
A30260624 |
|
8 |
90139379 |
15/05/2013 * |
4,674,300,000.00 |
ANDHRA BANK |
SOMAJIGUDA
BRANCH, 6-3-352/2, ASTRAL HEIGHTS, ROAD NO.1, BANJARA HILLS, HYDERABAD,
ANDHRA PRADESH |
B76574565 |
|
9 |
90139352 |
22/12/2007 * |
7,000,000.00 |
ANDHRA BANK |
SOMAJIGUDA
BRANCH, #6-3-352/2, ASTRAL HEIGHTS, ROAD NO.1, BANJARA HILLS, HYDERABAD,
ANDHRA PRADESH |
A30251755 |
* Date of charge modification
|
Unsecured Loan |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred sales tax loan (Deferred sales
tax loan is interest free and payable in 14 yearly installments commencing
from June 2013 onwards.) |
6.473 |
7.524 |
|
Total
|
6.473 |
7.524 |
CORPORATE INFORMATION:
The Company is a
public domiciled in India and incorporated under the Companies Act, 1956. Its
shares are listed on two Stock Exchanges in India. The Company is engaged in
the manufacturing and selling of Active Pharmaceutical Ingredients (APIs),
Pharmaceutical Formulation Intermediates (PFIs) and Finished Dosages (FDs). The
Company caters to both domestic and international markets.
BOARD OF DIRECTORS
Dr. C. Nageswara
Rao – Chairman
Dr. C. Nageswara
Rao is one of the promoters of
Granules India Limited. Dr.
Nageswara Rao has an M.S. in Surgery and Urology and was an active surgeon in
Guntur for five decades. Dr. Nageswara Rao was the Chairman of Andhra Pradesh
Medical Council and a member of the All India Medical Council, a Syndicate
Member of Nagarjuna University and a Director of Hindustan Antibiotic Limited.
Mr. C. Krishna
Prasad – Managing Director
Mr. Prasad is the
Founder of Granules and has more than three decades of experience in the
pharmaceutical industry. In 1984, he set up a paracetamol manufacturing
facility, which has become one of the world’s reputed manufacturers of
paracetamol in the regulated markets. Mr. Prasad pioneered and popularized the
concept of Pharmaceutical Formulations Intermediates (PFIs) as a cost-efficient
product for global formulations manufacturers.
Mr. L.S. Sarma - Director
Mr. L.S.Sarma, is
a retired bank executive. Mr. Sarma was a General Manager at the Industrial
Development Bank of India (IDBI), as well as the Director of ECGC and Dena
Bank. He worked for International Trade Centre, Geneva, ITC (UNCTAD/GATT) as an
Export Credit Consultant. He is on the Board of several companies including
Hexaware Technologies Limited.
Mr. A.P. Kurian - Director
Mr. Kurian served
as the Chairman of the Association of Mutual Funds in India. Mr. Kurian has a
rich career in the financial services area spread over four decades. During
1975-1993, Mr. Kurian was with Unit Trust of India and held several positions
including Director-Investments, Director- Planning and Development and as an
Executive Trustee. Since 1998, he has been the Executive Chairman of
Association of Mutual Funds in India. He is on the Board of National Stock
Exchange, Executive Committee of NSDL and several other committees associated
with mutual funds and capital market.
Mr. C.
Parthasarathy - Director
Mr. C.
Parthasarathy is one of the founders of Karvy. As the Chairman of Karvy, he has
been responsible for building Karvy as one of India’s truly integrated financial
services organisations. He oversees the group’s operations and is responsible
for the vision, business direction and technology value addition to the overall
business. Karvy employees over 10,500 personnel and has a network encompassing
583 offices in 391 cities/towns spread across the country, providing a complete
range of services. He is the fellow member of the Institute of Chartered
Accountants of India and the Institute of Company Secretaries of India.
Dr. Krishna Murthy
Ella - Director
Dr. Krishna Murthy
Ella founded and established Bharat Biotech International Limited in 1996 along
with his wife Ms. Suchitra Ella. The Company today, is on the forefront of
Indian Biotechnology engaged in R&D, manufacturing and marketing of
vaccines and bio-therapeutics. Dr. Ella was awarded his doctorate from the
University of Wisconsin- Madison in Molecular Biology. He received the National
Research Service Award from the National Institute of Health, Bethesda,
Maryland and became a part of the Research faculty at the Medical University of
South Carolina at Charleston.
Mr. Arun Rao
Akinepally - Director
Mr. Akinepally
Arun Rao is the Executive Director of Akin Laboratories Private Limited, a
formulation manufacturing Company. Mr. Arun Rao is on the Board of ESPI
Industries and Chemicals Private Limited, a leading manufacturer of antacids in
India. Mr. Arun Rao is a member of the Central Executive Council of the Indian
Pharmaceutical Association. He was the Vice President and currently, a member
of the Executive Committee of the Indian Pharmaceutical Association (Andhra
Pradesh Branch). He is also a member of Executive Committee of Organisation of
Pharmaceutical Manufacturers, Hyderabad.
Mr. Harsha
Chigurupati - Executive Director
Mr. Chigurupati
has been with Granules since 2005 and served as CMO from 2006-2010. As CMO, Mr.
Chigurupati was instrumental in commercialising the Company’s Finished Dosage
Division and also changed the Company’s focus to marquee customers in the
regulated markets. As the Executive Director, Mr. Chigurupati is responsible
for the standalone operations of Granules India including the P&L. Mr.
Chigurupati has a Bachelor of Science in Business Management from Boston
University.
Mrs. Uma
Chigurupati – Executive Director
Mrs. Chigurupati is
Director of KRSMA Estates Private Limited, one of India’s premier boutique
wineries. Under her tenure, she has established a vineyard in Karnataka and has
been overseeing the ongoing operations at the site. In addition, Mrs.
Chigurupati is the Chairman of the Hyderabad 10K Foundation, which promotes
health awareness campaigns in Andhra Pradesh through multiple initiatives
including hosting several races in Hyderabad including the Hyderabad Heritage
Marathon. Mrs. Chigurupati has a post-graduate degree in soil microbiology from
Nagarjuna University.
Mr. K.B. Sankara
Rao – Additional Director
Mr. K. B. Sankar
Rao is post graduate from Andhra University and has rich experience of about 33
years in various domains. Mr. K. B. Sankar Rao was associated with various
reputed organisation like Warner Hindustan, Cipla Limited and Dr. Reddy’s
Laboratories Limited. He has varied experience in the field of production,
quality, formulations, R&D, supply chain, development and launch of API and
finished dosages for global markets and business strategy. Mr. Kolli is also
Managing Director of Raje Retail Private Limited, a pharmacy retail chain under
the brand name- “My Health Pharmacy” in Hyderabad.
REVIEW OF
OPERATIONS
During the year,
there were many challenges in the macro-environment including a weak global
economy. In spite of adverse conditions, the Company posted good results. The
net sales of the Company in FY13 stood at Rs.6797.970 millions compared to the
net sales of Rs.5626.777 millions in FY12, registering a growth of 20.8% in the
current financial year. The EBITDA stood at Rs.807.756 millions in FY13
compared to Rs.738.072 millions in FY12, registering a growth of 9.4%. The
profit after tax for FY13 stood at Rs.301.753 millions compared to Rs.273.063
millions in FY12, registering a growth of 10.5% in the current financial year.
The Company continued to strengthen its position in the market and aims to
increase productivity gains, volume growth and profit margins.
EXPANSIONS
During FY12, the
Company commenced work on an expansion at its Gagillapur facility. The
expansion involved a capacity expansion in the PFI and Finished Dosage
facilities. The expansion mainly focused on efficient design and output in
terms of material transfer and automation.
Upon completion of
the PFI module, the Company faced initial scale up issues. The problems were
addressed by the technical team along with outside consultants. The Finished
Dosage (FD) facility was expanded from an existing capacity of 6 billion doses
to 18 billion doses. Both expansions were done in an existing facility and did
not require further regulatory approvals and will be used for manufacturing
products for the regulated markets after completion of trials and necessary
approvals from relevant customers.
In addition,
during FY13, the Company completed an upgrade of its existing warehouse and
also commenced construction of a new warehouse at its Gagillapur facility. The
existing Finished Goods and Raw Material Warehouses were modified with a mobile
racking system which has increased capacity. The construction of a new
warehouse commenced in FY13 at Gagillapur; construction is expected to be
completed in FY14.
SUBSIDIARY
COMPANIES
Granules USA Inc
Granules USA Inc, a
wholly-owned subsidiary Company, operates for the marketing requirements of the
Company in the U.S market. The Share Capital of the Company as on March 31,
2013 is Rs.11.631 millions. During FY13, the Company achieved a turnover of
Rs.751.000 millions and the profit after tax is Rs.27.096 millions.
GIL Lifesciences Private Limited
The Company is yet
to commence its operations. As on March 31, 2013 the Authorised Share Capital
of the Company is Rs.35.000 millions divided into 3500000 equity shares of Rs.10/-
each and the Paid Up Share Capital of the Company is Rs.29.462 millions divided
into 2946176 equity shares of Rs.10 each.
Granules Singapore Pte Limited
The Company has
not commenced any activity so far. The Share Capital of the Company as on March
31, 2013 is Rs.0.500 million.
JOINT VENTURE
COMPANIES
Granules-Biocause Pharmaceutical Co. Limited
The Share Capital
of the Company as on March 31, 2013 is Rs.181.903 millions. During the FY13,
the Company achieved a turnover of Rs.1024.463 millions.
Granules OmniChem Private Limited
The Share Capital
of the Company as on March 31, 2013 is Rs.187.550 millions. The Company has not
yet commenced its commercial activity during the period hence there was no
income during FY13. However the Company incurred a loss of Rs.3.694 millions.
Granules OmniChem Private Limited is a 50:50 joint venture that will
manufacture pharmaceutical intermediates and APIs in a greenfield facility in
Visakhapatnam (AP) and mainly focus on high-value, low-volume APIs for the
regulated markets. The Company will initially cater to Ajinomoto OmniChem’s
(one of the joint venture partners and shareholders) existing customers and
will focus on oncology, cardiovascular and central nervous system (CNS)
products. Granules India Limited will also purchase APIs from the joint venture
Company and will offer finished dosages.
The joint venture
Company is setting up 100% export oriented unit at Jawaharlal Nehru Pharma City
(JNPC), Parwada Mandal, Visakhapatnam (AP) under the APIC special economic zone
to manufacture active pharmaceutical ingredients. The construction of the unit
(including manufacturing block, administration block, warehouse and utility
electric substation block) and various installations are ongoing and expected
to finish construction in mid- 2013. The trial and commercial production is
expected to commence by December 2013. The Company plans to obtain all
necessary regulatory approvals from the U.S. Food and Drug Administration
(“FDA”) or relevant European regulatory authorities by March 31, 2016 and all
Good Manufacturing Practice (“GMP”) standards in relation to the unit by March
31, 2015.
MANAGEMENT DISCUSSION AND ANALYSIS
The Pharmaceutical
Market
Global: Global medical spending is estimated to be around
$1,200 billion in 2016, a growth rate of 3%-6% over the next few years.
Developed markets are expected to experience their lowest annual growth this
year, at less than 1% or $3 billion, and then rebound to $18-20 billion in
annual growth in the 2014-16 period.
The market for
branded medicines is likely to experience 0%-3% annual growth through 2016 to
$615-$645 billion, up from $596 billion in 2011. In the major developed
markets, branded medicine growth could be severely constrained at only $10 billion
over the five-year period due to patent expiries, increased costcontainment
actions by payers and modest spending on newly launched products. Global
generic spending is expected to increase from $242 billion in 2011 to $400-430
billion by 2016, fueled by volume growth in pharmerging markets and the ongoing
transition to generics in developed nations. The impact of patent expiries will
be felt largely in the US whereas in Europe, limited savings from expiring
patents are prompting policy shifts to encourage greater use of generics and
lower reimbursement for these products.
The U.S. share of
global spending is expected to decline from 41% in 2006 to 31% in 2016, while
the share of spending from the top five European countries is expected to decline
from 19% to 13%. Meanwhile, 17 high growth emerging markets are likely to
contribute 30% of the total spending by 2016 as compared to 14% in 2006.
Granules’ Product
Overview
Granules focuses
on pharmaceutical products with high API and/or finished dosage volume
requirements. In many high-volume pharmaceutical products, there are dozens of
suppliers leading to oversupply. While there are large surpluses, high quality
material for the regulated markets is in short supply and can only be serviced
by a handful of suppliers.
Customers in the
regulated markets and an increasingly growing number of customers in the
semi-regulated markets require high-quality supplies. These customers value
supply-based security and quality over pricing. Customers generally work
closely with their suppliers’ regulatory and quality control departments; once
they select a supplier, the customer usually stays with the supplier for years
and only periodically reviews alternatives.
Due to increased
accountability and consumer pressure, countries in the semi-regulated markets
are implementing tighter controls and demanding increased stringent quality
parameters.
Analgesics market
The analgesics
market, which focuses on pain relief, is one of the largest segments of the
healthcare industry with sales worth approximately $31 billion. The market is
growing at a 2.7% CAG R. Going ahead, growth will be driven by an ageing
population suffering chronic ailments and lifestyle diseases arising out of
sedentary jobs.
Granules is among
the leading producers of Paracetamol and Ibuprofen; the Company also competes
in the Naproxen market. Paracetamol accounts for 58% of the analgesic market by
volume and is widely used all over the world. Ibuprofen is the fastest growing
product in the sector and is expected to surpass Aspirin, which is not growing
as fast as it used to be. There are no analgesic products expected to replace
the current leaders.
Paracetamol
Paracetamol, also
known as acetaminophen, is used to reduce body pains, headaches and lower
fevers. The Paracetamol market continues to grow but there are signs of
consolidation within the industry and increasing challenges for Chinese
Paracetamol manufacturers. While many of these manufacturers targeted the
emerging markets, which offer lower margins, manufacturers were able to gain
market share and grow profits. However, many of the advantages that Chinese
manufacturers had including an undervalued Chinese currency, low employment
costs and favourable interest rates are diminishing which has added pressures.
In order to combat inflation, the Chinese government has let the RMB
appreciate. During FY13, the RMB appreciated 1.5% which is slightly lower than
the 3.0% appreciation in FY12. Due to the appreciation, the cost advantage from
Chinese manufacturers has been greatly diminished which has added pressure for
many manufacturers. In addition, labour and energy costs in China have
increased by double-digits, which are adding further pressure for companies.
Also, there is an increasing focus on quality from companies in the emerging
markets which is resulting in extra costs for many Chinese manufacturers since
they must adjust their processes to adhere to more stringent standards. Due to
these pressures, several Chinese manufacturers have shut down while others have
sold their facilities to larger players. Due to the diminishing value
proposition from Chinese manufacturers, many customers in the emerging markets
are qualifying Indian manufacturers which has resulted in higher capacity
utilization in FY13.
Ibuprofen
Ibuprofen is
primarily used for arthritis relief and fever reduction. The drug is popular in
North America and Western Europe, which account for nearly 60% of global sales.
Ibuprofen is a more complex analgesic to manufacture compared to Paracetamol
which is why there are not as many suppliers. There are six primary
manufacturers in the Ibuprofen market, which is growing in the mid-to-high
single digits. The drug is becoming more popular due to an ageing population
that wants to maintain their lifestyle. The Ibuprofen market, which faced
pricing pressures in FY11 due to new capacity, has rebounded. Due to strong
demand, pricing has increased in FY13 and appears to have stabilised.
Anti-Diabetic
Market
The anti-diabetic
market is extremely lucrative due to the growing number of people
with diabetes. The number of people with diabetes is expected to
grow from 246 million in 2008 to 380 million by 2025. The emerging markets
are expected to be a major source of new diabetes cases as they adapt
Western lifestyles. There are multiple classes of drugs to treat diabetes
which range from cheap, first-line therapy to expensive, advanced
therapies
Ř Biguanides: The most popular drug in this category is
Metformin, which lowers glucose levels. This is often used as the first
response for Type II diabetes
Ř DPP-4 Inhibitors: This is the latest generation of diabetes
drugs and over the next decade, several products will be released
Diabetic cases are
spread evenly throughout the world and there is a large opportunity for cost
effective medication
Metformin
Metformin, a
prescription drug, is the first biguanide oral anti-diabetic agent to be
approved by the U.S. FDA after phenformin (phenethylbiguanide) was banned in
the U.S. in 1977. Due to its relatively low cost and higheffectiveness,
metformin is often used as a first-line therapy for patients with type-II
diabetes
Annual production
capacity for metformin is approximately 65,000 tonnes. Due the rising number of
diabetic patients in the world, demand for Metformin is increasing and multiple
suppliers are increasing capacity in order to meet global demand. The market is
growing in the mid-teens and is expected to maintain the growth rate for the
foreseeable future.
BUSINESS OPERATIONS
Granules has a
presence across the pharmaceutical manufacturing value chain. The Company’s
operations are spread across four facilities – three in India and one in China.
ACTIVE
PHARMACEUTICAL INGREDIENTS (API)
The Company’s API
vertical continued to report double-digit growth despite the markets for most
of these products reporting single-digit growth. Granules entered this segment
in 1984 through the manufacture of Paracetamol APIs and expanded into other
products like Ibuprofen and Metformin. Over the decades, the Company emerged
among premier global API manufacturers due to a combination of scale, quality,
compliance and reliability.
The Company has
three API facilities; two located in India and a third in China. Due to a delay
in the Gagillapur expansion, the Company marketed a larger quantity of APIs in
FY13 but anticipates that its APIs will be progressively consumed largely for
captive consumption in the future. The API vertical will continue to be
critical to the Company’s success since it will continue to represent the
starting point of the Company’s PFI and FD verticals.
FY13 Highlights,
Ř API revenues
increased 40% from Rs.1810.000 millions in FY12 to Rs.2520.000 millions.
Ř Several
initiatives to increase API capacity were implemented, a number of these
finishing in late Q4FY12. The additional capacity was utilised in FY13.
Ř The delay in the
Gagillapur Formulation expansion resulted in an increase API sales; APIs will
be used more for captive consumption in FY14.
PHARMACEUTICAL
FORMULATION INTERMEDIATES (PFI)
Granules pioneered
the concept of commercialising PFIs, saving customers the need to manufacture
their own PFIs and leaving them free to focus on finished dosage manufacture
and marketing. Granules entered this business segment in the early-90s
following an insight that most APIs were not suitable for compression in their
crystalline or amorphous forms because they lacked the necessary binding,
lubricating and disintegrating properties. This made it necessary for APIs to
be granulated first to enhance functionality. Manufacturers would be able to
granulate but not able to derive operational efficiencies if they focused on
dozens of products or if they only produced the product for only a few days at
a time. This pulled down the overall return from their investments especially
because PFI manufacture accounts for 80% of the total cost of a finished
dosage.
The Company,
through its PFI facilities at Gagillapur and Jeedimetla, is a leader in manufacturing
PFIs and has the world’s largest capacity. The manufacturing facility uses
high-shear and fluid-bed granulation processes with a 6 ton batch size, the
largest in the industry.
FY13 Highlights
Ř Revenue increased
10% from Rs.1970.000 millions in FY12 to Rs.2160.000 millions.
Ř The Company
commercialized its Gagillapur facility expansion in March 2013; customer
validations commenced in March 2013 and are expected to be completed in FY14.
FINISHED DOSAGES
(FD)
At Granules, the
manufacture of finished dosages represents the apex of the value chain. The
Company entered this business in FY09 with an installed capacity of six billion
tablets. The business accounts for 31% of the Company’s revenues.
Granules’ finished
dosage facility in Gagillapur comprises automated processes, robust
infrastructure and superior quality systems that efficiently produce finished
dosages. Granules offers multiple finished dosage forms comprising tablets,
caplets and press fit capsules in bulk, blister packs and bottles. The Company
is the only Indian pharmaceutical player to manufacture press-fit (rapid
release tablets) dosages and among the few in India to manufacture bi-layered
tablets.
FY13 Highlights
Ř Revenue increased
14% from Rs.1850.000 millions in FY12 to Rs.2130.000 millions.
Ř The Company
commercialised the expansion of its Gagillapur facility, which substantially
increased capacity from March 2013 onwards. Customer validations started in
March 2013 and are expected to finish in FY14.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs. in Millions) |
31.03.2012 (Rs. in Millions) |
|
a) Claims against the company not acknowledgment as debt |
|
|
|
Income Tax |
123.038 |
167.021 |
|
Excise |
20.555 |
20.555 |
|
Service Tax |
8.937 |
8.937 |
|
Customs |
4.347 |
4.347 |
|
b) Bank Guarantee and LC |
201.483 |
386.736 |
|
d) Bills discounted with banks |
1271.087 |
1146.961 |
|
Total |
1629.447 |
1734.557 |
FIXED ASSETS:
Tangible Assets
·
Land
·
Buildings
·
Plant and Machinery
·
Computers
·
Office Equipment
·
R&D Equipment
·
Furniture and Fixtures
·
Vehicles
Intangible Assets
·
Technical Knowhow
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.62.52 |
|
|
1 |
Rs.100.25 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report Prepared by
: |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
51 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.