MIRA
INFORM REPORT
IDENTIFICATION DETAILS
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Name : |
GLOCHEM INDUSTRIES LIMITED |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDG00852F |
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PAN No.: [Permanent Account No.] |
AAACG9134E |
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Legal Form : |
A Closely Held
Public Limited Liability Company |
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No. of Employees
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500 (Approximately) |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of active pharma pharma
ingredients. |
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Products : |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
Europe |
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Imports : |
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Products : |
Raw Material |
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Countries : |
China |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS [AS ON 31.03.2011]
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Bulk Drugs, Intermediates and Spent Solvents |
MT |
478 |
726.155 |
NOTES:
- (Industrial Licensing has been abolished in respect of Bulk Drugs
and formulations in terms of Press Note No.4 (1994 series) dated October
25th 1994 issued by the Department of the Industrial Development,
Ministry of Industry, Government of India and Notification No. S.O.137 (E)
dated 1st March 1999 issued by the Department of Industrial
Policy and Promotion, Ministry of Industry, Government of India). Licensed
Capacities for bulk drugs and formulations are not applicable.
- Installed Capacities varies based on product mix and utilization of
manufacturing facilities given the nature of the production.
- Installed capacities are certified by the management and have not
been verified by the Auditors due to technical in nature.
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
500 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins
and Sells Chartered
Accountants |
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Address : |
1-8-384 and 385,
Gowra Grand, 3rd Floor, SP Road, Secunderabad-500003, Andhra
Pradesh, India |
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PAN N Income-tax PAN of auditor or auditor's firm : |
AACFD3771D |
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Associates/Subsidiaries : |
Optimus Generics Limited |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 28.09.2012
NOTE: SHAREHOLDING DETAILS FILE ATTACHED.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
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I.
EQUITY
AND LIABILITIES |
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(1)Shareholders' Funds |
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(a) Share Capital |
36.291 |
36.291 |
34.261 |
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(b) Reserves & Surplus |
476.871 |
460.899 |
403.117 |
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(c) Money received
against share warrants |
0.000 |
0.000 |
0.000 |
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(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total Shareholders’ Funds (1) + (2) |
513.162 |
497.190 |
437.378 |
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(3) Non-Current
Liabilities |
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(a) long-term
borrowings |
52.277 |
38.098 |
24.975 |
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(b) Deferred tax liabilities (Net) |
3.661 |
21.017 |
20.194 |
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(c) Other long term
liabilities |
141.878 |
169.425 |
221.970 |
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(d) long-term
provisions |
3.457 |
6.444 |
3.414 |
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Total Non-current
Liabilities (3) |
201.273 |
234.984 |
270.553 |
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(4) Current Liabilities |
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(a) Short
term borrowings |
221.154 |
142.116 |
45.131 |
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(b) Trade
payables |
215.406 |
200.602 |
86.847 |
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(c) Other
current liabilities |
244.107 |
120.927 |
71.054 |
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(d) Short-term
provisions |
10.353 |
8.018 |
3.916 |
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Total Current
Liabilities (4) |
691.020 |
471.663 |
206.948 |
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TOTAL |
1405.455 |
1203.837 |
914.879 |
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II.
ASSETS |
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(1) Non-current assets |
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(a) Fixed
Assets |
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(i)
Tangible assets |
679.243 |
664.259 |
299.504 |
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(ii)
Intangible Assets |
1.177 |
1.993 |
2.649 |
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(iii)
Capital work-in-progress |
1.641 |
0.031 |
318.316 |
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(iv) Intangible assets under development |
63.554 |
23.789 |
0.000 |
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(b) Non-current
Investments |
0.000 |
0.000 |
0.000 |
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(c) Deferred tax
assets (net) |
0.499 |
0.000 |
0.000 |
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(d) Long-term Loan and Advances |
22.683 |
16.398 |
67.276 |
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(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
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Total Non-Current
Assets |
768.797 |
706.470 |
687.745 |
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(2) Current assets |
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(a)
Current investments |
0.000 |
0.000 |
0.001 |
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(b)
Inventories |
370.792 |
275.224 |
147.556 |
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(c) Trade
receivables |
158.584 |
146.592 |
61.255 |
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(d) Cash
and cash equivalents |
3.049 |
1.139 |
1.770 |
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(e)
Short-term loans and advances |
68.695 |
39.853 |
16.389 |
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(f) Other
current assets |
35.538 |
34.559 |
0.163 |
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Total
Current Assets |
636.658 |
497.367 |
227.134 |
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TOTAL |
1405.455 |
1203.837 |
914.879 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
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SALES |
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Income |
1014.437 |
540.307 |
358.617 |
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Other Income |
NA |
13.767 |
4.156 |
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TOTAL (A) |
NA |
554.074 |
362.773 |
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Less |
EXPENSES |
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Cost of materials consumed |
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323.685 |
177.177 |
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Purchases of stock in trade |
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1.697 |
10.883 |
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Employee benefits expense |
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74.141 |
64.640 |
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Manufacturing, administrative and other expense |
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173.402 |
137.970 |
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Changes in inventories of finished goods and work in progress |
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(74.415) |
(23.837) |
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TOTAL (B) |
NA |
498.510 |
366.833 |
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Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
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55.564 |
(4.060) |
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Less |
FINANCIAL
EXPENSES (D) |
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14.272 |
5.666 |
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PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
50.630 |
41.292 |
(9.726) |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
49.090 |
34.651 |
28.801 |
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PROFIT / (LOSS) BEFORE
TAX (E-F) (G) |
1.540 |
6.641 |
(38.527) |
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Less |
TAX (H) |
(17.130) |
0.987 |
1.416 |
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PROFIT / (LOSS) AFTER
TAX (G-H) (I) |
18.670 |
5.654 |
(39.943) |
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PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10.160 |
4.508 |
44.451 |
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BALANCE CARRIED
TO THE B/S |
28.830 |
10.162 |
4.508 |
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EARNINGS IN
FOREIGN CURRENCY |
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FOB Value of Exports |
NA |
175.776 |
181.018 |
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TOTAL EARNINGS |
NA |
175.776 |
181.018 |
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IMPORTS |
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Raw Materials |
NA |
68.027 |
49.548 |
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Capital Goods |
NA |
15.173 |
4.506 |
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TOTAL IMPORTS |
NA |
83.200 |
54.054 |
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Earnings /
(Loss) Per Share (Rs.) |
5.14 |
1.63 |
(11.66) |
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Particulars |
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31.03.2014 |
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Sales Turnover |
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700.000 (Loss due to
fire incurred in one of their factory) |
Expected Sales (2014-2015) : Rs.1200.000 Millions
The above information has been parted by Mr. B M Sarif (Assistant
Managers)
CORPORATE INFORMATION:
Subject was
incorporated on November 20, 1995 and is engaged in the business of
manufacturing and marketing of Active Pharma Ingredients (APIs), drug
intermediates, finished dosage forms (FDF), and contract manufacturing of FDF.
The Company has three manufacturing facilities at Bollaram near
Hyderabad, at Vishakhapatnam and at Jadcherla.
BUSINESS REVIEW:
T Company has
achieved a turnover of Rs.1014.437 Millions for the year ended 31st March
2013 compared to the previous year’s turnover of Rs. 587.404 Millions
representing a growth of 76%.
The Company has
made an EBITDA of Rs. 89 Millions (9 % of Turnover) for the year.
Besides the
manufacturing and marketing of Products developed in the own R N D, the company
has also taken up a new business model of contract manufacturing of APIs and
intermediates for the regulatory (US and Europe) markets for some of the
reputed Indian Companies.
The steps taken by
the management in expanding the product and customer base; and exploring new
business tie ups with new companies have started yielding results in the form
of business and revenues only in the last quarters of the year. The full impact
of these steps and the resultant revenues can be seen in the financial year
2013 - 14.
OUTLOOK:
APIs:
Two of the APIs,
for which the Company has received the EU approval, are going off patented in
Feb/March 2014. Considering the Company’s strength in these two APIs, the
Company expects substantial revenues from these two APIs in 2014-15. Company
continues to increase its market share in its two old APIs namely Amlodipine and
Cetrizine and the Company expects to increase the revenues from these two
products further in the coming years.
Company has
developed a new process for the manufacture of Clopidrel in the in house RND
and will be filing the DMF for Clopidogrel with the new process developed, in
the current year, and with this the Company expects to regain the market share
for this product in the Regulatory Markets.
FINISHED DOSAGE FORMS:
Company has
received the market authorization for its first product Levo-Cetrizine during
the year. Market Authorization/Approvals are expected to be received for some
more products in 2013-14 and 2014-15. Revenues from these products will be
significant in 2014-15.
The site variation
applications filed by few of its customers in UK have been approved during the
year. The Company’s major customer from Ukraine has also received approval for
the site variation application filed by them for several of its products. The
contracts signed with all these customers are expected to generate significant
revenues to the Company from Sept/Oct 2013 and are expected to grow by more
than 20% every year for the next 2/3 years.
Sale of
Formulations Plant at Jadcherla
The Company has
entered into a Business Transfer Agreement (BTA) with Mylan Laboratories
Limited (Mylan) on February 1, 2013 to transfer its formulation plant situated
at Plot no. S 16, S 17A, Green Industrial Park - APIIC, SEZ Jedcherla,
Mahaboobnagar District, AndhraPradesh herein after referred as Jadcherla unit
subject to various approvals. Foreign Investment Promotion Board (India) has
approved the transaction in its meeting held on May 10, 2013, and approvals
from other authorities have also been obtained. As a part of the agreement, the
Company shall transfer the leasehold land, the manufacturing facility, fixed
assets and all the employees of the formulations plant except R and D employees,
Intangible assets i.e., dossiers namely exclusive license for Raloxifene (US)
and non-exclusive license for Raloxifene (Europe) and Levocetirizine (Europe)
to Mylan The total consideration for the transfer is Rs. 850.000 Millions. The
Company has received an amount of Rs 85.000 Millions as an advance from Mylan
before March 31, 2013 and is disclosed as an advance for sale of unit.
Subsequent to the
end of the financial year, on August 13, 2013, the Company has signed
conveyance deed and the transfer of the plant has been completed. Upon
execution of conveyance deed, Gross book value of fixed assets amounting to Rs
405.900 Millions and all employees except Research and development employees
were transferred to Mylan and the Company received the balance consideration
amount.
Investment in
Optimus Generics Limited A Joint Venture
(JV) formed for the Formulations manufacturing
The Company has
set up a 51% subsidiary, Optimus Generics Limited (the Company), to carry on
the business of manufacturing oral dosageforms (tablets/capsules/sachets) for
generic products and also engage in research and development activities. The
total project cost of setting up a new facility is estimated to be about Rs 800.000
Millions. The project implementation has started in July, 2013 and may end by
December, 2014.
Commercial
production is expected to commence by 2 nd half of 2015 after receiving all
regulatory approvals.
Continuity of
Formulations business and the liquidity to the Company For the short to medium
term, till the new facility under the JV is ready, Glochem Industries Limited.
has an arrangement with Mylan Laboratories Limited. to manufacture at the sold FDF
The sold FDF division contributed to the revenues from the last financial year
only, and the economics of the Formulations Business will be continued at
Glochem till the new plant at the JV is operational as per the terms of the JV.
After the new plant is operational, the expected revenues from the JV will see
a significant jump, and the share in the JV economics will more than offset the
loss from discontinuing FDF business at Glochem.
Hence, the sale of
the FDF plant plus the manufacturing arrangement with Mylan, and the new JV for
a new FDF facility, will together ensure that the company has immediate
liquidity to pursue its R and D plans, plus secure continuity of the FDF
business.
Fire accident at
API Plant located at Vishakhapatnam
A fire accident
occurred at the Company’s API facility situated at Vishakhapatnam on May 30,
2013. The fire accident at Vizag unit has resulted in substantial loss of stock
and damaged 2 out of the 5 production blocks.
The estimated loss
from the accident is about Rs. 340.000 Millions of which loss on account of
inventories is estimated to be Rs. 270.000 Millions and loss of plant and
machinery and buildings is estimated to be Rs. 70.000 Millions. There is no
major loss of customers / orders for the Company because of fire.
Loss on fixed
assets and inventories are adequately covered and do not expect any material
deductibles. The Company has lodged a claim with the insurance company and
requested for an on account payment. The Claim has been admitted by the Insurer
(Oriental Insurance Company). The estimates of loss will be revised for changes
in valuation of stocks and once the actual purchase orders for various
equipments (being replaced) are finalised, a final claim will be lodged along
with other documents required by the insurer.
Resumption of
Operations at the Company’s Vizag Facility
The construction
work has begun at the Vizag plant and the Company expects to begin
manufacturing in two of the blocks by the end of September, 2013 and gradually
the entire plant will become operational by November. As such, it is a
short-term break in operating capacity and therefore the financial statement of
the company has been prepared under going concern basis.
Capital work in
Progress and Intangible assets (Dossier Development Expenses) Capital
Work-in-Progress and Intangible assets under development amount to Rs. 63.600 Millions
The Company has commercialized one dossier (Nortrypoyline HCL EU) and the
product sales were made to NRIM Limited amounting to Rs. 0.470 Millions. As per
the accounting policy of the company, the dossier on commercialization is being
amortized over the period of 5 years. The total cost incurred on this dossier
development is Rs.0.100 Million.
RATING & COMMENTS
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MIRA’s Rating : |
B (33) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
LOCATIONS
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Registered/ Corporate Office : |
G.V. Chambers, 7-2-C8 and C8/2, IDA Santnagar,
Hyderabad-500018, Andhra Pradesh, India |
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Tel. No.: |
91-40-23713041 / 42 / 43 / 23816951/39219900 |
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Fax No.: |
91-40-23711483/23813850 |
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E-Mail : |
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Website: |
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Factory 1 : |
174/176, I.D.A.,
Bollaram, Medak-502325 District, Andhra Pradesh, India |
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Tel No.: |
91-8458-279003/
280021 91-8452-302944 |
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Fax No.: |
91-8458-279058 |
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E Mail: |
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Factory 2 : |
Survey No. 36, 37 and 46, Plot No. 77, |
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Tel No.: |
91-892-4247132 91-891-3016504 |
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Fax No.: |
91-892-4247269 |
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E Mail: |
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Factory 3 : |
Plot No.S16 and
S17, Green Industrial Park, Polapally, Jedcheria, Mahaboob Nagar District –
509302, Andhra Pradesh, India |
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Tel No.: |
91-8542-304654 |
NOTE:
Registered office of the company has been shifted from 120 Bhanu Enclave, Sundar Nagar, Hyderabad – 500038, Andhra Pradesh, India to the present address w.e.f 03.06.2006
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.