MIRA
INFORM REPORT
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Report Date : |
04.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
MARUTHI
ELECTRODES PRIVATE LIMITED |
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Registered Office : |
# 135, 5th
Floor, Maruthi Tower, Airport Road, Kodihalli, Bangalore – 560008, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.07.1983 |
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Com. Reg. No.: |
08-5415 |
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CIN No.: [Company
Identification No.] |
U33112KA1983PTC005415 |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturers of
Welding Electrodes. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 50000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having satisfactory track. Directors are
reported as experience and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are usually correct and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
# 135, 5th
Floor, Maruthi Tower, Airport Road, Kodihalli, Bangalore – 560008, Karnataka,
India |
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Tel. No.: |
91-80-25275848 |
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Fax No.: |
91-80-25266289 /
25097615 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. G. Jayaram
Reddy |
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Designation : |
Managing Director
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Name : |
Mr. G. J. Raja |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Welding Electrodes. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed
Capacity |
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Welding Electrodes |
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Tons |
4000 |
GENERAL
INFORMATION
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No. of Employees : |
About 50 |
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Bankers : |
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. Sudhakar Chartered Accountants |
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Address : |
# 12,13, 1st
Floor, Reddy Building, J C Road, Bangalore – 560002, Karnataka, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.400 Millions |
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16,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.600 Millions |
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Total |
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Rs. 2.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.400 Millions |
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16,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1.600 Millions |
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Total |
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Rs. 2.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2.000 |
2.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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10.857 |
9.678 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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12.857 |
11.678 |
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LOAN FUNDS |
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1] Secured Loans |
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16.336 |
12.594 |
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2] Unsecured Loans |
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3.826 |
6.322 |
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TOTAL BORROWING |
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20.162 |
18.916 |
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DEFERRED TAX LIABILITIES |
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0.854 |
0.944 |
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TOTAL |
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33.873 |
31.538 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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13.831 |
8.493 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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5.775 |
9.607 |
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Sundry Debtors |
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22.512 |
23.448 |
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Cash & Bank Balances |
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0.227 |
1.653 |
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Other Current Assets |
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5.153 |
5.312 |
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Loans & Advances |
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0.000 |
0.000 |
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Total
Current Assets |
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33.667 |
40.020 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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12.327 |
16.663 |
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Provisions |
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1.298 |
0.312 |
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Total
Current Liabilities |
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13.625 |
16.975 |
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Net Current Assets |
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20.042 |
23.045 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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33.873 |
31.538 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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80.794 |
98.282 |
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Total Income |
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80.794 |
98.282 |
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Profit/(Loss) After Tax |
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2.395 |
1.021 |
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Expenditures : |
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Interest |
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1.213 |
0.617 |
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Depreciation & Amortization |
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5.303 |
1.945 |
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Other Expenditure |
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71.882 |
94.698 |
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Total Expenditure |
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78.398 |
97.260 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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2.96 |
1.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.05 |
0.12 |
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Current Ratio (Current Asset/Current Liability) |
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2.47 |
2.35 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Office Equipments
- Plant and Machinery
- Electrical Installation
- Laboratory Equipments
- Generator
- Furniture
- Vehicles
- Computer
- Pollution Control Equipments
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Name of the company |
MARUTHI ELECTRODES PRIVATE LIMITED |
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Presented By |
MARUTHI ELECTRODES PRIVATE LIMITED and
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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1) Date and description of instrument creating the change |
12.07.1996 Regd.
On 30.07.1996 Agreement of cash
Credit Agreement for
CDB/SDB/LCDB Advance Agreement for ILC Counter Indemnity Agreement re :
Collateral Security All the above
pertain to the same charge. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 6.600
Millions [OCC Rs. 3.000
Millions : BE Rs. 1.5 Millions; CDB.SDB Rs. 0.5 Millions, ILC/FLC Rs. 0.6
Millions Bank guarantee Rs. 1.000 Millions] |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
whole of present and future stock of raw material, finished goods, work in
progress and in transit, book debts, outstanding of cheques belonging to the
company; Collateral security leasehold rights of the factory land and
buildings. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 18.75
% p.a. Repayable on
demand |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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6) Date and brief description of instrument modifying the charge |
06.01.2006 Supplemental
common hypothecation agreement |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
By the above, the
amount secured by charge in respect of movables comprising stocks, book
debts, plant, machineries, stores, spares both present and future shall cover
the present modified limits of Rs. 23.000 Millions described hereunder :
The credit limits
are additionally secured by machineries comprising 2 Sets of CNC CO2 Wire
drawling and Copper Coating Plant. All other terms
and conditions remain unchanged. |
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Name of the company |
MARUTHI ELECTRODES PRIVATE LIMITED |
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Presented By |
MARUTHI ELECTRODES PRIVATE LIMITED and
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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1) Date and description of instrument creating the change |
12.07.1996 Regd.
On 30.07.1996 Agreement of cash
Credit Agreement for
CDB/SDB/LCDB Advance Agreement for ILC Counter Indemnity Agreement re :
Collateral Security All the above
pertain to the same charge. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 6.600
Millions [OCC Rs. 3.000
Millions : BE Rs. 1.5 Millions; CDB.SDB Rs. 0.5 Millions, ILC/FLC Rs. 0.6
Millions Bank guarantee Rs. 1.000 Millions] |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
whole of present and future stock of raw material, finished goods, work in
progress and in transit, book debts, outstanding of cheques belonging to the
company; Collateral security leasehold rights of the factory land and
buildings. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest @ 18.75
% p.a. Repayable on
demand |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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6) Date and brief description of instrument modifying the charge |
05.01.2006 No instrument –
Letter re : Extension of Equitable Mortgage |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
By the above, the
extent of charge in respect of the immovable property comprising land
together with building and other structures [existing and to be constructed]
situate at Sy. No. 71, bearing Plot No. 12, Doddanekundi Ii Industrial Area,
Bangalore, bounded on the North by Plot No 11, South by Plot No. 13, East by
Road, West by Private Land measuring 2 acres, stands increased from Rs.
18.500 Millions to Rs. 23.000 Millions |
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 records 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.13 |
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UK Pound |
1 |
Rs.85.36 |
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Euro |
1 |
Rs.57.64 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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