MIRA INFORM REPORT

 

 

Report No. :

354589

Report Date :

15.12.2015

 

IDENTIFICATION DETAILS

 

Name :

AZAKEM LABS PRIVATE LIMITED

 

 

Registered Office :

146A, Phase II, IDA, Mallapur, Hyderabad-500076, Telangana

Tel. No.:

91-40-27152703

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

17.11.2005

 

 

Com. Reg. No.:

048093

 

 

Capital Investment / Paid-up Capital :

Rs. 15.170 Million

 

 

CIN No.:

[Company Identification No.]

U24239TG2005PTC048093

 

 

IEC No.:

0905017633

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAFCA4582K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Active Pharmaceutical Ingredient. (Confirmed by Management)

 

 

No. of Employees :

150 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject was incorporated in the year 2005 having satisfactory track.

 

For the FY 15, the company has achieved decent revenue base marked by satisfactory profit margin.

 

The company possesses decent net worth base marked by adequate cash accruals and low borrowings.

 

However, rating is constrained on account of huge decline in its profit margin as compared to previous year and unfavourable gap between trade payables and receivables.

 

Trade relations are fair. Business is active. Payments are slow but correct.

 

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

 

NOTES :

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

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

 

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 31-03-2015.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Harikrishna M.

Designation :

Purchase Department

Contact No.:

91-40-27152703

Date :

15.12.2015

 

 

LOCATIONS

 

Registered Office :

146A, Phase II, IDA, Mallapur, Hyderabad-500076, Telangana, India

Tel. No.:

91-40-27152703

Fax No.:

91-40-27154472

E-Mail :

azakemlabs@gmail.com

azakem2005@gmail.com

Website :

http://www.azakemlabs.com

Location :

Owned

Locality :

Industrial

 

 

Factory :

Plot No. 97 and 98, IDA Kolar, Bidar-585403, Karnataka, India

E-Mail :

info@azakemlabs.com,

Location :

Owned

Locality :

Industrial

 

 

DIRECTORS

 

AS ON 29.09.2014

 

Name :

Mr. Avula Prashant

Designation :

Director

Address :

H No: 7-18/5, Srisai Nagar, Nacharam, Hyderabad-501507, Andhra Pradesh, India

Date of Appointment :

17.11.2005

DIN No.:

00030456

 

 

Name :

Mr. Srinivasulu Chowdary Kavuturu

Designation :

Managing director

Address :

7-2-982, S R T - 727, Sanathnagar, Hyderabad-500018, Andhra Pradesh, India

Date of Appointment :

17.11.2005

DIN No.:

00030543

 

 

KEY EXECUTIVES

 

Name :

Mr. Harikrishna M.

Designation :

Purchase Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

Names of Shareholders

 

No. of Shares

 

Srinivasulu Chowdary Kavuturu

 

704500

Avula Prashant

 

677500

B Ramesh

 

55000

B Satish

 

20000

CH Pavani

 

15000

CH Prakash Rao

 

15000

P Ramakrishna

 

10000

Y Jayapraksh

 

10000

A Srinivas

 

10000

Total

 

1517000

 

 

AS ON 29.09.2014

 

Equity Share Breakup

Percentage of Holding

Category

 

Directors or relatives of directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Active Pharmaceutical Ingredient. (Confirmed by Management)

 

 

Products :

ITC Code No.

 

Product Descriptions

98020000

Manufacturing of Bulk Drugs

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

 

Products :

Finished Goods

Countries :

UK

 

 

Imports :

 

Products :

Raw Material

Countries :

China

 

 

Terms :

 

Selling :

Cash, L/C and Credit

 

 

Purchasing :

Cash, L/C and Credit

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Wholesalers and Retailers

 

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

150 (Approximately)

 

 

Bankers :

Bank Name:

Andhra Bank

Branch:

SME Mallapur, Mallapur, Hyderabad - 500076, Andhra Pradesh, India

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. In Million)

31.03.2014

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Term loan from Andhra Bank

3.000

0.500

 

 

 

SHORT TERM BORROWINGS

 

 

Cash Credit from Andhra Bank

7.981

1.721

 

 

 

Total

10.981

2.221

 

Banking Relations :

--

 

 

Auditors :

 

Name :

M V Narayana Reddy and Company

Chartered Accountants

Address :

Flat No 504, Vijayasree Apartments, Opposite Kammasangam, Ameerpet, Hyderabad-500073, Andhra Pradesh, India

Tel. No.:

91-23743975/ 23744448

Income-tax PAN of auditor or auditor's firm :

AADFM4830F

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Associates/Subsidiaries :

Not Available

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,000,000

Equity Shares

Rs. 10/- each

Rs. 20.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,517,000

Equity Shares

Rs. 10/- each

Rs. 15.170 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2015

31.03.2014

31.03.2013

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

15.170

15.170

15.170

(b) Reserves & Surplus

65.431

58.681

40.651

(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)

80.601

73.851

55.821

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

3.000

0.500

1.500

(b) Deferred tax liabilities (Net)

6.705

6.301

4.771

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

9.705

6.801

6.271

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

7.981

1.721

7.186

(b) Trade payables

21.316

15.818

29.161

(c) Other current liabilities

6.262

23.926

13.719

(d) Short-term provisions

2.983

4.860

4.677

Total Current Liabilities (4)

38.542

46.325

54.743

 

 

 

 

TOTAL

128.848

126.977

116.835

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

69.682

69.062

49.331

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

2.518

0.000

12.449

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.604

6.448

0.998

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

72.804

75.510

62.778

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

14.604

6.900

12.430

(c) Trade receivables

8.698

3.125

15.308

(d) Cash and cash equivalents

6.097

5.162

2.741

(e) Short-term loans and advances

1.690

0.100

0.876

(f) Other current assets

24.955

36.180

22.702

Total Current Assets

56.044

51.467

54.057

 

 

 

 

TOTAL

128.848

126.977

116.835

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

 

Revenue from Operations

95.332

103.593

120.657

 

 

Other Income

0.079

0.186

0.883

 

 

TOTAL                                     (A)

95.411

103.779

121.540

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

43.451

34.723

73.517

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(1.371)

6.790

(0.657)

 

 

Employees benefits expense

18.413

17.542

11.913

 

 

Other expenses

16.629

16.145

15.167

 

 

TOTAL                                     (B)

77.122

75.200

99.940

 

 

 

 

 

 

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

18.289

28.579

21.600

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

0.915

0.681

0.765

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

17.374

27.898

20.835

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

7.238

3.477

2.969

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

10.136

24.421

17.866

 

 

 

 

 

Less

TAX                                                                  (H)

3.387

6.390

5.611

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

6.749

18.031

12.255

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of export

2.365

0.335

0.779

 

TOTAL EARNINGS

2.365

0.335

0.779

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

 

8.536

14.726

 

 

Expenses

 

0.423

0.207

 

TOTAL IMPORTS

NA

8.959

14.933

 

 

 

 

 

 

Earnings Per Share (Rs.)

4.45

11.89

8.08

 

Expected Sales (2015-2016): Rs. 160.000 Million

 

The above information has been parted by Mr. Harikrishna M. (Purchase Department)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term Borrowings

1.000

1.000

1.000

 

 

 

 

Cash Generated from Operations

5.535

24.322

NA

 

 

 

 

Net Cash from Operating Activities

2.552

18.114

NA

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2015

31.03.2014

31.03.2013

Net Profit Margin

(PAT / Sales)

(%)

7.08

17.41

10.16

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

19.18

27.59

17.90

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

8.02

19.23

17.12

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.13

0.33

0.32

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.15

0.04

0.17

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.45

1.11

0.99

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

15.170

15.170

15.170

Reserves & Surplus

40.651

58.681

65.431

Money received against share warrants

0.000

0.000

0.000

Share Application money pending allotment

0.000

0.000

0.000

Net worth

55.821

73.851

80.601

 

 

 

 

Long-term borrowings

1.500

0.500

3.000

Short term borrowings

7.186

1.721

7.981

Current Maturities of Long-Term Borrowings

1.000

1.000

1.000

Total borrowings

9.686

3.221

11.981

Debt/Equity ratio

0.174

0.044

0.149

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

120.657

103.593

95.332

 

 

(14.143)

(7.974)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

120.657

103.593

95.332

Profit

12.255

18.031

6.749

 

10.16%

17.41%

7.08%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

Yes

16

No. of employees

Yes

17

Details of sister concerns

No

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

Yes

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

Yes

35

Negative Reporting by Auditors in the Annual Report

No

 

 

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10216261

15/03/2010

1,450,000.00

ANDHRA BANK

SME MALLAPUR, MALLAPUR, HYDERABAD- 500076, ANDHRA PRADESH
, INDIA

A82752965

2

10149717

19/01/2009

6,000,000.00

ANDHRA BANK

SME MALLAPUR, HYDERABAD- 500076, ANDHRA PRADESH,
INDIA

A56191679

3

10149715

15/03/2010 *

10,000,000.00

ANDHRA BANK

SME MALLAPUR, MALLAPUR, HYDERABAD- 500076, ANDHRA PRADESH
, INDIA

A82753955

 

* Date of charge modification

 

 

REVIEW OF OPERATIONS:

 

During the year, the company has clocked Gross Turnover of Rs. 98.343 Million compared to Rs. 111.002 Million in the previous year and earned a Net Profit before Tax of Rs. 10.136 Million during the year as against previous year profit of Rs. 24.421 Million.

 

Decrease in profits is mainly due to lower margins and decrease in turnover during the year.


FIXED ASSETS:

 

Tangible Assets

 

·         Land

·         Buildings

·         Plant and Equipment

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Computer

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records 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. 66.99

UK Pound

1

Rs. 101.78

Euro

1

Rs.  73.47

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

AMR

 

 

Report Prepared by :

IND

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

43

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.