MIRA INFORM REPORT
|
Report Date : |
07.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
AARTI DRUGS LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi,
District Thane – 401506, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
28.09.1984 |
|
|
|
|
Com. Reg. No.: |
11-055433 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.121.086
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L37060MH1984PLC055433 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA18926F/ MUMA20113C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA4410D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of Pharmaceuticals and Bulk Drugs. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record. Overall financial condition of the company appears to be decent. Trade relations reported to be fair. Business is active. Payment terms
are reported to be regular and as per commitment. 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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of 4.9
%, Fitch Rating said. The global rating agency expects the economy to pick up
in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long term rating: BBB+ |
|
Rating Explanation |
Have moderate degree of safety and carry moderate credit risk. |
|
Date |
March 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term rating: A2+ |
|
Rating Explanation |
Strong degree of safety and carry low credit risk. |
|
Date |
March 2014 |
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.
INFORMATION DECLINED BY
|
Name : |
Mr. Prasad Khedekar |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-24019025 |
|
Date : |
31.05.2014 |
LOCATIONS
|
Registered Office : |
Plot No. 198, MIDC Tarapur, Taluka Palghar, Village Pamtermbhi, District
Thane – 401506, Maharashtra, India |
|
Tel. No.: |
91-22-24072249 (5 Lines) / 52571698/ 24019025 |
|
Fax No.: |
91-22-24073462/ 24070144 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Mahendra
Industrial Estate, Ground Floor, Plot No. 109-D Road, No. 29, Sion (East),
Mumbai-400 022, Maharashtra, |
|
Tel. No.: |
91-22-24019025
(30 Lines) |
|
Fax No.: |
91-22-24073462 /
24070144 |
|
|
|
|
Factory 1 : |
Plot Nos N-198,
G-60, E-120, K-40, K-41, E-9/3-4 and E-21/22, MIDC Industrial Area, Tarapur,
Village Pamtembhi, Taluka Palghar, Thane – 401506, Maharashtra, India |
|
|
|
|
Factory 2 : |
Plot Nos.
2902/2904, GIDC, Sarigam – 396155, District Valsad, |
|
|
|
|
Research and
Development Centers : |
·
Plot
Nos. N-198 and G-60, MIDC Industrial Area, Tarapur, Village Pamtembhi, Taluka
Palghar, Thane – 401506, ·
Plot
Nos. D-277/278, TTC Industrial Area, Turbhe, Navi Mumbai, |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Chandrakant
V. Gogri |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Rajendra V.
Gogri |
|
Designation : |
Chairman (w.e.f.
16 August, 2012) |
|
|
|
|
Name : |
Mr. Prakash M.
Patil |
|
Designation : |
Managing Director
and Chief Executive Director |
|
Date of Birth/Age : |
16.08.1947 |
|
Qualification : |
B. Chem. |
|
Date of Appointment : |
05.01.1985 |
|
|
|
|
Name : |
Mr. Harshit M.
Savla |
|
Designation : |
Joint Managing
Director |
|
Date of Birth/Age : |
19.11.1962 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
02.01.1987 |
|
|
|
|
Name : |
Mr. Harit P. Shah |
|
Designation : |
Whole Time
Director |
|
Date of Birth/Age : |
12.10.1963 |
|
Qualification : |
B. Com |
|
Date of Appointment : |
15.09.1995 |
|
|
|
|
Name : |
Mr. Uday M. Patil |
|
Designation : |
Whole Time
Director |
|
Date of Birth/Age : |
23.06.1963 |
|
Qualification : |
H.S.C. |
|
Date of Appointment : |
18.10.2000 |
|
|
|
|
Name : |
Rashesh
C. Gogri (w.e.f. 16th August, 2012) |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. Ramdas M. Gandhi |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Bhavesh R. Vora |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Prof. Krishnacharya G. Akamanchi |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Dr. Vilas G. Gaikar |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Sunil M.
Dedhia |
|
Designation : |
Independent Directors |
|
|
|
|
Name : |
Mr. Navin C. Shah |
|
Designation : |
Independent Directors |
KEY EXECUTIVES
|
Name : |
Mr. Sunny Pagre |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Adhish P. Patil |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Prasad Khedekar |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6335256 |
52.32 |
|
|
882866 |
7.29 |
|
|
7218122 |
59.61 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7218122 |
59.61 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1732 |
0.01 |
|
|
1732 |
0.01 |
|
|
|
|
|
|
314163 |
2.59 |
|
|
|
|
|
|
2138468 |
17.66 |
|
|
2399562 |
19.82 |
|
|
36503 |
0.30 |
|
|
24028 |
0.20 |
|
|
12475 |
0.10 |
|
|
4888696 |
40.37 |
|
Total Public shareholding (B) |
4890428 |
40.39 |
|
Total (A)+(B) |
12108550 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
12108550 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Selling of Pharmaceuticals and Bulk Drugs. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (As on: 31.03.2013)
|
Particulars |
Unit |
*Licensed |
Installed |
Production |
Captive |
Net Production |
|
|
|
|
|
|
|
|
|
Pharmaceuticals |
Kgs. |
-- |
29,544 |
23,963.90 |
2277.11 |
21,686.79 |
|
|
|
|
|
|
|
|
NOTE: * As license is not required Licensed Capacity
not given.
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Parikh Joshi and
Kothare Chartered Accountants |
|
Address : |
49/2341, M. H. B. Colony, Gandhi Nagar,
Bandra (East), Mumbai – 400051, |
|
|
|
|
Solicitors: |
M.P. Savla and Company, Bharat House, 2nd floor, 104 Mumbai
Samachar Marg, Mumbai – 400 001. |
|
|
|
|
Associates: |
|
|
|
|
|
Enterprise/firms over which controlling individuals have significant
influence. |
|
CAPITAL STRUCTURE
As on 02.08.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200000000 |
Equity Shares |
Re.1/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12108550 |
Equity Shares |
Re.1/- each |
Rs.12.109
Millions |
|
|
|
|
|
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21500000 |
Equity Shares |
Rs.10/- each |
Rs.215.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12108550 |
Equity Shares |
Rs.10/- each |
Rs.121.086
Millions |
|
|
|
|
|
NOTE:
Reconciliation
|
Particulars |
Numbers |
(Rs.
In Millions) |
|
Opening outstanding shares |
12108550 |
121.085 |
|
Closing outstanding shares |
12108550 |
121.085 |
|
Note: There is no movement in shares during
the year |
|
|
Disclosures of shares held by each shareholders more than 5% shares:
|
Name of Shareholders |
As at 31st March, 2013 |
|
|
No. of Share held |
% held |
|
|
Prakash M. Patil |
966464 |
7.98 |
|
Aarti Industries Limited |
651059 |
5.38 |
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 |
121.086 |
121.085 |
121.086 |
|
(b) Reserves & Surplus |
1954.993 |
1643.713 |
1444.078 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2076.079 |
1764.798 |
1565.164 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
807.045 |
669.238 |
743.415 |
|
(b) Deferred tax liabilities (Net) |
275.120 |
244.720 |
222.966 |
|
(c) Other long term
liabilities |
100.331 |
77.100 |
75.684 |
|
(d) long-term
provisions |
28.574 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
1211.070 |
991.058 |
1042.065 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
2149.835 |
2055.704 |
1472.276 |
|
(b) Trade
payables |
1318.933 |
937.857 |
773.629 |
|
(c) Other
current liabilities |
302.406 |
286.561 |
241.625 |
|
(d) Short-term
provisions |
138.865 |
90.216 |
64.127 |
|
Total Current
Liabilities (4) |
3910.039 |
3370.338 |
2551.657 |
|
|
|
|
|
|
TOTAL |
7197.188 |
6126.194 |
5158.886 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
2912.310 |
2735.363 |
2242.096 |
|
(i)
Capital work-in-progress |
125.889 |
29.909 |
103.747 |
|
(ii)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
51.319 |
69.184 |
246.130 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
25.572 |
22.659 |
86.257 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
3115.090 |
2857.115 |
2678.230 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1409.191 |
979.076 |
831.590 |
|
(c) Trade receivables |
2156.748 |
1806.035 |
1258.301 |
|
(d) Cash
and cash equivalents |
28.788 |
49.439 |
35.855 |
|
(e)
Short-term loans and advances |
196.033 |
271.487 |
227.621 |
|
(f) Other
current assets |
291.338 |
163.042 |
127.289 |
|
Total
Current Assets |
4082.098 |
3269.079 |
2480.656 |
|
|
|
|
|
|
TOTAL |
7197.188 |
6126.194 |
5158.886 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8248.414 |
6592.609 |
4964.241 |
|
|
|
Other Income |
9.057 |
30.817 |
0.778 |
|
|
|
TOTAL (A) |
8257.471 |
6623.426 |
4965.019 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4924.374 |
3811.201 |
2730.005 |
|
|
|
Purchase of stock-in-trade |
854.273 |
733.602 |
842.131 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(225.936) |
(9.166) |
(161.820) |
|
|
|
Employee benefit expense |
285.287 |
248.268 |
178.746 |
|
|
|
Other expenses |
1216.131 |
1036.818 |
749.044 |
|
|
|
Exceptional Items |
4..363 |
11.627 |
0.000 |
|
|
|
TOTAL (B) |
7058.492 |
5832.350 |
4338.106 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1198.979 |
791.076 |
626.913 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
280.355 |
226.719 |
134.780 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
918.624 |
564.357 |
492.133 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
259.840 |
242.159 |
177.406 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
658.784 |
322.198 |
314.727 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
206.400 |
97.588 |
90.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
452.384 |
224.610 |
224.727 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1325.300 |
1250.600 |
NA |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Income tax of Earlier Year |
0.000 |
8.600 |
NA |
|
|
|
Transfer to General Reserve |
45.000 |
23.600 |
NA |
|
|
|
Proposed Dividend 40% |
48.400 |
36.300 |
NA |
|
|
|
1st Interim Dividend 30% |
36.300 |
24.200 |
NA |
|
|
|
2nd Interim Dividend 30% |
36.300 |
0.000 |
NA |
|
|
|
Tax on Dividend |
20.100 |
9.800 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
1591.600 |
1325.300 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
2964.030 |
2460.501 |
1832.710 |
|
|
TOTAL EARNINGS |
2964.030 |
2460.501 |
1832.710 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2699.919 |
1793.360 |
1385.643 |
|
|
|
Capital Goods |
15.492 |
4.916 |
18.229 |
|
|
TOTAL IMPORTS |
2715.411 |
1798.276 |
1403.872 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
37.36 |
17.84 |
18.56 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
5.48
|
3.39 |
6.34 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.98
|
4.86 |
6.34 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.22
|
5.32 |
6.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.18 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.42
|
1.54 |
1.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.04
|
0.97 |
0.97 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
121.086 |
121.085 |
121.086 |
|
Reserves & Surplus |
1444.078 |
1643.713 |
1954.993 |
|
Net
worth |
1565.164 |
1764.798 |
2076.079 |
|
|
|
|
|
|
long-term borrowings |
743.415 |
669.238 |
807.045 |
|
Short term borrowings |
1472.276 |
2055.704 |
2149.835 |
|
Total
borrowings |
2215.691 |
2724.942 |
2956.880 |
|
Debt/Equity
ratio |
1.416 |
1.544 |
1.424 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4964.241 |
6592.609 |
8248.414 |
|
|
|
32.802 |
25.116 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
4964.241 |
6592.609 |
8248.414 |
|
Profit |
224.727 |
224.61 |
452.384 |
|
|
4.53% |
3.41% |
5.48% |
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 |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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
CASE DETAILS
BENCH:-BOMBAY
|
Lodging No.:- |
ITXAL/1472/2012 |
Filing Date:- |
10/10/2012 |
Reg. No.:- |
ITXA/1241/2012 |
Reg. Date:- |
25/10/2012 |
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX- 6, |
Respondent:- |
M/S. AARTI DRUGS LIMITED |
|
Petn.Adv.:- |
SURESH KUMAR |
|
District:- |
MUMBAI |
|
Bench:- |
DIVISION |
||||
|
Status:- |
Admitted(Unready) |
Category:- |
TAX APPEALS |
|
Last Date:- |
01/03/2013 |
Stage:- |
FIRST ON BOARD |
|
Last Coram:- |
HON'BLE SHRI JUSTICE J.P. DEVADHAR |
|
HON'BLE SHRI JUSTICE M.S. SANKLECHA |
|
Act :- |
Income Tax Act, 1961 |
Under Section:- |
260A |
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
From Directors |
18.800 |
0.000 |
|
From Other |
113.263 |
0.000 |
|
Short-term
borrowings |
|
|
|
Loans repayable on demand From Banks |
802.866 |
744.505 |
|
From Directors |
0.000 |
28.700 |
|
From Other |
0.000 |
108.794 |
|
Total |
934.929 |
881.999 |
OPERATIONS REVIEW
During the year, the Company has achieved Sales Turnover of Rs.8857.500
Millions (Previous Year: Rs.6991.800 Millions) registering a growth of 26.68%.
Further, the Company has achieved Export Turnover of Rs.3222.000
Millions as against Rs.2807.100 Millions for the last year, registering a
growth of 14.78%.
Operating Profit before Interest, Depreciation, Amortization and Tax,
has been Rs.1203.400 Millions (Previous Year Rs.802.700 Millions), registering a
growth of 49.92%. Profit After Tax has been Rs.452.400 Millions (Previous Year
Rs.224.600 Millions), registering a growth of 101.42%.
The company had carried out expansion programmes in the year 2010-11 and
2011-12 keeping long term view in the mind, inspite of recessionary conditions
prevailing globally. The company reaped the benefit of utilization of expanded
capacity for the full year which has resulted into increased sales. In
addition, last year one of their location at Sarigam suffered loss of production
for three months due to general environmental clearance issue in the area.
During the year, they successfully operated that plant at higher capacity. Due
to overall higher capacity utilization across the company, the overheads got
spread over increased production which led to reduction in costs and thus
increase in the profitability.
Fire incident occurred on 22.03.2013 at one of the Production block of
the manufacturing unit located at Plot No. N - 198 Tarapur manufacturing MNI,
an intermediate which is further processed to manufacture two APIs. Loss /
damage caused to stock and fixed assets due to fire incident has been covered
under insurance and accounted for appropriately.
The Company could arrange to outsource the said intermediates from outside
and supplies of said APIs were restored to customers within a period of a
month.
MANAGEMENT
DISCUSSION AND ANALYSIS
Pharmaceutical
industry – Global and Indian
The global pharmaceutical market has seen high growth over the past few
years, spurred primarily by the North American market. However, there is a
gradual growth movement towards emerging markets, where availability of
healthcare is expanding and there is an increasing need for treatments
associated with chronic disease more typically found in developed countries
till date. Emerging markets currently represent 16% of the global market (IMS
health), but are expected to contribute 40% of growth by 2014.
The Indian pharmaceutical industry has been an important constituent of
the pharmaceutical sector worldwide with rising use of generics, and the high
cost competitiveness backed by the high quality scientific talent. The Indian
pharmaceutical industry consisting of Bulk Drug Exports, Formulation Exports,
and Domestic Formulations is expected to grow to around US $ 52 billion by the
year 2014-15 at a CAGR of 17.2% from the year 2011-12. The domestic
formulations market is expected to grow with a CAGR of 13.5% from 2008-09 to
reach a size of US $ 17.3 billion by 2014-15. Export formulations are poised to
reach a size of US $ 14.9 billion growing at a CAGR of 20% from 2008-09 to
2014-15. And the most importantly Bulk drugs are projected to be US $ 19.8
billion by 2015 growing at a CAGR of 19.5% from 2008-09 to 2014-15.
BUSINESS STRATEGY
Domestic Market and Trends:
The Indian bulk drug industry world-wide has grown as a direct offset of
formulation growth. With a growth of 34%
over the past five years, Indian bulk drug exports have grown to reach
US $ 6.8 billion in 2008-09 from US $ 1.6 billion in 2003-04. Aarti Drugs
Limited (ADL) has a strong regulatory framework and cGMP level documentation
which is becoming a standard requirement of most of the big Indian
pharmaceutical companies. High process efficiency and high standard for quality
has created good brand name for ADL in the space of Antibiotic,Antidiabetic,
Antifungal, Antidiarrheal, Anti-inflammatory and Antihypertensive therapeutic
segments. Indian pharmaceutical market is growing fast due to penetration of
health services in rural areas of the country. There is also a shift in demand
from drugs treating hygiene related diseases to drugs treating lifestyle
related diseases in the urban sector.
ADL has capital expenditure plans of constructing new facilities, few of
which will start giving production output in the coming year. These will cater
to ever increasing Antidiabetic segment.
Export Market and Trends:
Growing generic costs and rising cost pressures faced by innovators have
provided a significant opportunity to bulk drug players. In addition, strengths
such as low cost manufacturing, high process chemistry skills, manufacturing
facilities and increasing number of DMF filings have fuelled growth in bulk
drug exports. ADL facilities are cGMP approved with certifications like USFDA,
WHO GMP, TGA and ISO. ADL is constantly growing its presence in regulated
markets by offering series of products from its USFDA, TGA certified plants, as
well as Japanese accredited plants. ADL also has ANVISA certification of
Brazilian authorities and COFEPRIS of Mexican authorities to cater to Latin
American market in three of its major products.
ADL is constantly working to keep its facilities up to the standards of
cGMP as they plan to harness and grow their market share in semi-regulated like
South East Asia and Non American regulated markets.
ADL will continue to cater global pharmaceutical markets through
following channels:
- Contract Manufacturing
- Direct Exports
Increasing its share of direct exports to regulated and non–regulated
markets Continuing R and D on the molecules that will go off patent in near
future
- Indirect Exports
Supplying APIs for domestic formulations for regulated markets
SWOT ANALYSIS
Strengths and opportunities:
Although in general cost of manufacturing is lower in China than in
India, ADL has been able to keep it's costs to minimum possible and
aggressively compete with Chinese competitors. Moreover, global players prefer
Indian manufacturers to Chinese due to documentation and quality issues.
Furthermore, currently ADL has customer audited and FDA approved facilities
which give us an edge over competition throughout the world.
ADL continues to enjoy economies of scale due to its large production
capacities in Anti Diarrhea, Anti Inflammatory, Anti Fungal, and Anti Biotic
segment. Bigger market share will automatically help us to be competitive in
market due to lower overheads and better bargaining power. Since inception, ADL
has been exporting to 97 countries worldwide indicating its strong logistics
and geographic spread of ADL brand.
ADL is operating its two State-of-the Art RandD Centers, at Tarapur,
which are recognized by Department of Science and Industry Research, Government
of India, and at Turbhe, Navi Mumbai. Their scientists are constantly working
for developing technology, non-infringing route of synthesis, scale up and its
transfer to manufacturing location for commercialization. They actively work
not only on bulk drugs in various therapeutic categories but also on speciality
chemicals for non-API related applications. ADL has 29 years of manufacturing
experience and has developed expertise in various reactions for bigger volumes
of production, which is a key strength in API manufacturing industry.
Weaknesses, Risks and concerns:
Variation in crude oil prices would always be area of concerned. ADL has
already installed greener technologies like briquette fired boilers,
economizers etc. to save power and fuel costs. ADL was able to cope up with
these pressures due to strong operational efficiency and increased market share
of its products.
Extreme volatility of exchange rate of rupee against US dollar can have
significant impact on ADL operations because approximately 40% of it's total revenues
consists of exports. However, more than 85% of this exposure is naturally
hedged due to the imports. ADL has a strict FOREX policy of hedging all of its
foreign currency loans thus mitigating the risk of volatility of exchange rate.
DISCUSSION ON
FINANCIAL and OPERATIONAL PERFORMANCE
During the year the Company has achieved topline of Rs.885.75 crores,
achieving a y-o-y growth of
26.68% correspondingly EBIDTA worked out to Rs.120.34 crores as against
Rs.80.27 crores in the previous year recording a growth of 49.92%. Net profit
after tax was Rs.45.24 crores as against Rs.22.46 crores in the previous year
recording growth of 101.42%.
The Company had carried out expansion programmes in the year 2010-11 and
2011-12 keeping long term view in the mind, inspite of recessionary conditions
prevailing globally. The Company reaped the benefit of utilization of expanded
capacity for the full year which has resulted into increased sales. In
addition, last year one of their location at Sarigam suffered loss of
production for three months due to general environmental clearance issue in the
area. During the year, they successfully operated that plant at higher
capacity. Due to overall higher capacity utilization across the Company, the
overheads got spread over increased production which led to reduction in costs
and thus increase in the profitability.
Considering increase in cost of crude petroleum and volatility of rupees
against dollar, Company had taken steps to replace furnace oil fired boilers to
briquette fired boilers in last two years. These steps helped Company to
contain its fuel cost.
Above factors resulted in increase in operating margin of the Company
for the year as indicated last year in their annual report and reap benefits
out of expansion programs as indicated in the last year's discussion on
Financial and Operational performance.
OUTLOOK
The Company R and D programs are currently focused on new products
amongst therapeutic categories such as Antipsychotic, Antitussive, Antifungal,
Antihypertensive, Anticonvulsant, Alcoholism treatment and Anti-inflammatory.
These products would be launched in a time-horizon of 2-4 years depending upon
patents. Company will continue to do RandD on APIs that are off patents and
will work on non-infringing synthesis routes.
ADL has expanded the capacities of its existing products in Anti-Biotic,
Anti-Diabetic, Anti-Fungal, and Anti-Diarrhea segments. This has given an
impetus to sales volumes. ADL is planning to expand the capacity of its
Cardio-protectant, anti-biotic and anti-diabetic and lifestyle related drugs in
future.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10416348 |
05/04/2013 |
400,000,000.00 |
ICICI BANK LIMITED |
LANDMARKRACE
COURCE CIRCLE, ALKAPURI, BARODA, GUJ ARAT - 390015, INDIA |
B72179666 |
|
2 |
10277975 |
27/09/2012 * |
4,029,300,000.00 |
AXIS BANK LIMITED |
2ND FLOOR E, AXIS
HOUSE BOMBAY DYEING MILLS, COMP OUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI,
MAHARASHTRA - 400025, INDIA |
B58466764 |
|
3 |
10138812 |
31/12/2008 |
50,000,000.00 |
UNION BANK OF INDIA |
UNIONBANK BHAVAN,239,
VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
A54784087 |
|
4 |
10123916 |
11/08/2008 |
148,400,000.00 |
UNION BANK OF INDIA |
UNION BANK BHAVAN,
239, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
A46304267 |
|
5 |
10071461 |
19/01/2009 * |
200,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING,
FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA -
400005, INDIA |
A55963920 |
|
6 |
10053436 |
23/04/2007 |
10,000,000.00 |
UNION BANK OF INDIA |
239, VIDHAN
BHAVAN MARG, NARIMAN POINT, MUMBAI, |
A15936784 |
|
7 |
90151151 |
22/12/2003 |
1,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE WORLD
TRADE CENTRE, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA |
- |
|
8 |
90150595 |
22/12/2008 * |
1,313,050,000.00 |
UNION BANK OF INDIA |
UNIONBANK
BHAVAN,239, VIDHAN BHAVAN MARG, NARIMAN |
A54286406 |
|
9 |
90150570 |
19/01/2009 * |
1,428,250,000.00 |
UNION BANK OF INDIA |
UNIONBANK BHAVAN,239,
VIDHAN BHAVAN MARG, NARIMAN |
A57811341 |
|
10 |
90150312 |
20/03/2000 * |
15,000,000.00 |
UNION BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, 239 VIDHAN BHAVAN NARI |
- |
Note: * Date of
charge modification
CONTINGENT
LIABILITIES:
a. In respect of bank guarantees issued and
L/C opened by the Company's bankers Rs. 268.984 Millions (As at 31-March-2012 Rs.225.787 Millions)
b. Demand in respect of additional income tax
disputed in appeal Rs. 48.526 Millions (As
at 31-March 2012 Rs.25.064 Millions).
c. Demand /Rebate in respect of Excise duty in
case of Ammonium Sulphate of Rs.10.290 Millions (as at 31st March 2012 Rs.10.290 Millions). The hon'ble high Court of Mumbai has decided the appeal in favour of
the Company in February 2010 on the basis of its earlier judgment in a similar
case. however, as per information available with the Company, the Department of
Central Excise has filed an appeal in that precedent case in the Supreme Court,
hence the company has continued to disclose this matter.
d. Liability for duty on raw material imported
under advance licence benefit scheme against which export obligation remained
to be fulfilled Rs.16.398 Millions (As
at 31-March-2012 Rs.5.538 Millions).
e. Estimated amount of contracts remaining to
be executed on capital account and not provided for (net of advances) Rs.
73.139 Millions
(As at 31-March-2012 Rs.41272 Millions)
STATEMENT OF AUDITED FINANCIAL RESULT FOR THE QUARTER AND YEAR ENDED 31ST
MARCH, 2014
(Rs. In Millions)
|
Sr. |
|
Quarter Ended |
Year Ended |
|
|
No |
PARTICULARS |
31.03.2014 |
31.03.2014 |
31.03.2014 |
|
|
|
(Audited) |
(Audited) |
(Audited) |
|
1 |
Income from Operations |
|
|
|
|
|
(a) Gross Sales / Income from Operations |
3038.600 |
2389.500 |
10443.500 |
|
|
Less : Excise Duty & Sales Tax |
220.700 |
171.900 |
744.100 |
|
|
(a) Net Sales / Income from Operations (Net Of Excise Duty & Sales Tax) |
2817.900 |
2217.600 |
9699.400 |
|
|
(b) Other Operating Income |
12.500 |
4.000 |
18.300 |
|
|
Total income from operations (net) |
2830.400 |
2221.500 |
9717.600 |
|
2 |
Expenditure |
|
|
|
|
|
(a) Cost of materials consumed |
1566.700 |
1187.400 |
5708.200 |
|
|
(b) Purchase of stock-in-trade |
175.600 |
180.000 |
860.200 |
|
|
(c) Changes in inventories of finished
goods, work-in-progress and stock-in-trade |
238.300 |
64.400 |
56.900 |
|
|
(d) Employee benefits expense |
86.200 |
80.600 |
324.100 |
|
|
(e) Depreciation and Amortisation Expense |
75.900 |
69.900 |
281.200 |
|
|
(f) Other expenses |
336.600 |
334.700 |
1304.600 |
|
|
Total expenses |
2479.300 |
1917.000 |
8535.100 |
|
3 |
Profit from Operations before Other Income,
finance costs and exceptional items (1-2) |
351.100 |
304.500 |
1182.500 |
|
4 |
Other Income |
0.000 |
0.000 |
0.000 |
|
5 |
Profit from ordinary activities before
finance cost and exceptional items (3+4) |
351.100 |
304.500 |
1182.500 |
|
6 |
Finance costs (interest) |
91.700 |
92.400 |
334.900 |
|
7 |
Profit from ordinary activities after
finance cost but before Exceptional Items (5-6) |
259.500 |
212.100 |
847.600 |
|
8 |
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
g |
Profit from Ordinary Activities before Tax
(7-8) |
259.500 |
212.100 |
847.600 |
|
10 |
Tax Expenses (Includes) |
39.900 |
70.500 |
239.700 |
|
|
Provision for Taxation Current |
63.000 |
61.500 |
230.000 |
|
|
Earlier Years
|
(32.100) |
0.000 |
(25.300) |
|
|
Provision for Deferred Taxation |
9.000 |
9.000 |
35.000 |
|
11 |
Net profit from ordinary Activities after
Tax (9-10) |
219.500 |
141.600 |
608.000 |
|
12 |
Extraordinary item |
0.000 |
0.000 |
9.200 |
|
13 |
Net profit for the year |
219.500 |
141.600 |
617.100 |
|
14. |
Paid-up Equity Share Capital of Rs.10/-
each. |
121.100 |
121.100 |
121.100 |
|
|
Reserves & Surplus (excluding
revaluation reserves) |
-- |
-- |
2388.000 |
|
|
Earning per share (of Rs. 10 /- each) (not
annualised) |
|
|
|
|
|
Basic & Diluted (Before extra-ordinary
item) |
18.13 |
11.69 |
50.21 |
|
|
Basic & Diluted (After extra-ordinary
item) |
0.00 |
0.00 |
50.97 |
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
-
Number of Shares |
4890428 |
4901063 |
4890428 |
|
|
-
Percentage of Total Shareholding |
40.39 |
40.48 |
40.39 |
|
2 |
Promoters & Promoter Group shareholding a) Pledged/Encumbered |
|
|
|
|
|
- Number
of Shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares( as a % of the total shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares( as a % of the total Share capital of the
company) |
Nil |
Nil |
Nil |
|
|
b) Non-encumbered |
|
|
|
|
|
-
Number of Shares |
7218122 |
7207487 |
7218122 |
|
|
-
Percentage of shares( as a % of the total Shareholding of promoter and
promoter group) |
100 |
100 |
100 |
|
|
- Percentage
of shares( as a % of the total Share capital of the company) |
59.61 |
59.52 |
59.61 |
|
B
INVESTOR COMPLAINTS |
Quarter Ended 31.03.2014 |
|
Pending at the beginning of the quarter |
0 |
|
Received during the quarter |
5 |
|
Disposed of during the quarter |
5 |
|
Remaining unresolved at the end of the
quarter |
0 |
STATEMENT OF ASSETS AND LIABILITIES AS AT 31ST MARCH, 2014
|
SOURCES
OF FUNDS |
31.03.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
121.100 |
|
(b) Reserves & Surplus |
2388.000 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2509.100 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
766.400 |
|
(b) Deferred tax liabilities
(Net) |
310.100 |
|
(c) Other long term
liabilities |
115.100 |
|
(d) long-term provisions |
0.000 |
|
Total
Non-current Liabilities (3) |
1191.600 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
2656.000 |
|
(b) Trade payables |
1501.800 |
|
(c) Other current liabilities |
441.800 |
|
(d) Short-term provisions |
197.100 |
|
Total
Current Liabilities (4) |
4796.700 |
|
|
|
|
TOTAL |
8497.400 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
3808.400 |
|
(b) Non-current Investments |
46.200 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
70.400 |
|
(e) Other Non-current assets |
0.000 |
|
Total
Non-Current Assets |
3925.000 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
0.000 |
|
(b) Inventories |
1267.300 |
|
(c) Trade receivables |
2765.200 |
|
(d) Cash and cash equivalents |
44.000 |
|
(e) Short-term loans and
advances |
222.000 |
|
(f) Other current assets |
273.900 |
|
Total
Current Assets |
4572.400 |
|
|
|
|
TOTAL |
8497.400 |
NOTES:
- The above results, reviewed by the Audit Committee, have been taken on record by the Board of Directors at their meeting held on April 30, 2014.
The Board of Directors have declared a Final Dividend of Rs. 5.50/- per shares on 1,21,08,550 Equity shares of Rs.10/- each fully paid-up for the Financial year 2013-14.
Company is operating as a Single Segment Company, engaged in Pharmaceuticals Business.
Figures for the previous period have been regrouped or rearranged wherever necessary.
FIXED ASSETS
Tangible Assets:
Leasehold Land
Building
Plant and Machinery
Office Equipments
Furniture
Vehicles
Intangible Assets:
- Tradename
- 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.59.20 |
|
|
1 |
Rs.99.52 |
|
Euro |
1 |
Rs.80.83 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
KVT |
+63
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.