MIRA INFORM REPORT

 

 

Report Date :

18.04.2007

 

IDENTIFICATION DETAILS

 

Name :

W.H. BRADY AND COMPANY LIMITED

 

 

Registered Office :

Brady House, 12/14, Veer Nariman Road, Fort, Mumbai-400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

02.06.1913

 

 

Com. Reg. No.:

11-367

 

 

CIN No.:

[Company Identification No.]

L17110MH1913PLC000367

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELW00001B

 

 

Legal Form :

Public Limited Liability Company. The Company’s shares are listed on Stock Exchanges.

 

 

Line of Business :

Manufacturers and Exporters of Material Handling Equipments, Chains, Conveyor Belts and Sprockets.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 280000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced 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

 

Registered Office :

Brady House, 12/14, Veer Nariman Road, Fort, Mumbai-400001, Maharashtra, India

Tel. No.:

91-22-22048361

Fax No.:

91-22-22041855

E-Mail :

bradymumbai@eth.net

Website :

http://www.bradyindia.com

 

 

Head Office :

14/15 F, Connaught Place, New Delhi, India

Tel. No.:

91-11-23310212/ 23314934

Fax No.:

91-11-23327231

 

 

DIRECTORS

 

Name :

Mr. Pavan G Morarka

Designation :

Chairman and Managing Director

 

 

Name :

Mr. Kaushik D Shah

Designation :

Director

 

 

Name :

Mr. Pinaki Misra

Designation :

Director

 

 

Name :

Mr. Prakash Mehta

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. K K Krishnan

Designation :

Chief Executive Officer

 

 

Name :

Mr. Ganesh R Iyer

Designation :

Chief Operating Officer

 

 

Name :

Mr. M K Shah

Designation :

Company Secretary

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of Material Handling Equipments, Chains, Conveyor Belts and Sprockets.

 

 

Products :

v      Traded Goods

v      Gross Service Income

v      Material Handling Equipments

v      Chains

v      Conveyor Belts

v      Sprockets Material Handling Equipments

v      Electric Wire Rope

v      Chain Hoist EOT and Hot Cranes

v      JIB Cranes

v      Pallet Trucks/ Stackers

v      Customised Solutions for Material Handling Requirements

 

 

Product Description

ITC Code

Pulley Blocks

8425.0000

 

 

GENERAL INFORMATION

 

No. of Employees :

Around 200

 

 

Bankers :

v      Bank of Baroda, Mumbai

v      ABN Amro Bank N.V., Mumbai

v      UTI Bank Limited, Mumbai

 

 

Facilities :

SECURED LOANS:

 

Particulars

Amount (Rs. In millions)

TERM LOAN:

From Banks:

 

Secured as First Charge by Equitable mortgage by deposit of Title deeds of the Company's property at Mumbai, and further secured by personal guarantee of the Company's Managing Director, Mr. Pavan G. Morarkaf Limit sanctioned Rs.46 millions) (Previous year Rs. 40 millions) Repayable over a period of 42 'months in equated monthly installments commencing from 4th May,2004,covering the principal amount and interest as stipulated

19.765

Repayable over a period of 24 months in equated monthly installments commencing from Oct.' 05 ,covering the principal amount and interest as stipulated

4.348

CASH CREDIT

 

(Secured by hypothecation of all the stocks, book

debts and movable machinery) (The above Cash Credit along with the other facilities of inland/foreign letter of credit and Guarantees aggregating to Rs. 21 millions (Previous year Rs.21 millions) are further secured by way of deposit of title deeds in respect of ownership premises at Ahmedabad, residual charge of the company's property at Mumbai and pledge of part of shares held as Investments / Fixed Deposit of Rs.1 millions (Previous year Rs.1 millions) and the personal guarantee of Company's Managing Director, Mr. Pavan  G. Morarka)

8.638

OTHERS

 

Secured by Hypothecation of Vehicles

1.992

Total

34.743

 

 

UNSECURED LOANS:

 

Particulars

Amount (Rs. In millions)

From a Private Limited Company in which a Director is Director

0.300

DEPOSITS FROM:

 

Tenants

19.553

Dealers

0.540

Total

20.393

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

C L Dalal & Company

Chartered Accountants

 

 

Associates/Subsidiaries :

v      Bready Services Private Limited

v      Brady Telesoft Private Limited

v      Brady Satlink Limited

v      Brady Futures Private Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

5000000

Equity Shares

Rs.10/- each

Rs.50.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1700000

Equity Shares

Rs.10/- each

Rs.17.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

17.000

17.000

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

53.578

46.745

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

70.578

63.745

LOAN FUNDS

 

 

 

1] Secured Loans

 

34.743

35.867

2] Unsecured Loans

 

20.393

24.877

TOTAL BORROWING

 

55.136

60.744

DEFERRED TAX LIABILITIES

 

0.205

0.409

 

 

 

 

TOTAL

 

125.919

124.898

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

78.009

82.864

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

4.483

4.483

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

3.842

4.301

 

Sundry Debtors
 

36.774

36.153

 

Cash & Bank Balances
 

3.165

3.499

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

12.816

11.264

Total Current Assets
 

56.597

55.217

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities

13.170

17.666

 

Provisions
 

 

 

Total Current Liabilities
 

13.170

17.666

Net Current Assets
 

43.427

37.551

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

125.919

124.898

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

46.797

38.184

Other Income

 

40.626

35.803

Total Income

 

87.423

73.987

 

 

 

 

Profit/(Loss) Before Tax

 

14.979

12.761

Provision for Taxation

 

2.707

2.105

Profit/(Loss) After Tax

 

12.272

10.656

 

 

 

 

Total Imports

 

2.483

1.844

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

 

17.055

14.394

 

Raw Material Consumed

 

40.444

33.570

 

Salaries, Wages, Bonus, etc.

 

6.575

4.870

 

Interest

 

2.907

3.470

 

Depreciation & Amortization

 

2.842

2.948

 

Other Expenditure

 

2.621

1.973

Total Expenditure

 

72.444

61.226

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2006

(1st Qtr.)

30.09.2006

(2nd Qtr.)

31.12.2006

(3rd Qtr.)

 Sales Turnover

 13.100

 20.000

 20.800

 Other Income

 10.000

 10.600

 11.600

 Total Expenditure

 18.300

 23.100

 25.300

 Operating Profit

 4.800

 7.500

 7.100

 Interest

 0.700

 0.600

 0.700

 Gross Profit

 4.100

 6.900

 6.400

 Depreciation

 0.600

 0.800

 0.600

 Tax

 0.600

 1.300

 1.600

 Reported PAT

 3.000

 4.800

 3.500

 

200606 Quarter 1

 

Notes

 

Expenditure Includes Cost of Sales Rs 10.985 million Staff Cost Rs 1.949 million Other Expenditure Rs 5.431 million Tax Includes Provision for Current Tax Rs 0.397 million Deferred Tax Rs (0.160) million Fringe Benefit Tax Rs 0.215 million Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above Unaudited Results is subject to Limited Review by the Statutory Auditors of the Company and taken on record by the Board of Directors at their meeting held on July 22, 2006. 2. Segment Reporting as defined in Accounting Standard - 17 is considered not applicable.

 

200609 Quarter 2

 

Notes:

 

1. The above Unaudited Results which is subject to limited review by the Statutory Auditors, were taken on record by the Board of Directors at the meeting held on 03.11.2006. 2. Segment reporting as defined in Accounting Standard-17 is considered not applicable. 3. Information on investor complaints for the quarter-(Nos): Opening Balance-Nil, received-Nil & Closing Balance-Nil.

 

200612 Quarter 3

 

Notes

 

Expenditure Includes Cost of sales Rs 17.238 million Staff Cost Rs 1.633 million Other expenditure Rs 6.518 million Tax Includes Provision for Current Tax Rs 1.521 million Deferred Tax Rs 0.655 million Fringe Benefit Tax Rs 0.143 million Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above Results based on limited review by the Statutory Auditors, were taken on record by the Board of Directors at the meeting held on February 07, 2007. 2. Segment Reporting as defined in Accounting Standard - 17 is considered not applicable.

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Debt-Equity Ratio

 

0.96

1.25

Long Term Debt-Equity Ratio

 

0.87

1.13

Current Ratio

 

2.43

2.05

TURNOVER RATIOS

 

 

 

Fixed Assets

 

0.37

0.30

Inventory

 

11.56

8.78

Debtors

 

1.28

1.02

Interest Cover Ratio

 

6.17

4.63

Operating Profit Margin(%)

 

44.23

50.26

Profit Before Interest And Tax Margin(%)

 

38.25

42.41

Cash Profit Margin(%)

 

32.26

35.60

Adjusted Net Profit Margin(%)

 

26.28

27.75

Return On Capital Employed(%)

 

15.11

13.91

Return On Net Worth(%)

 

20.31

20.50

 

STOCK PRICES

 

Face Value

Rs.10.00/-

High

Rs.(0.01)

Low

Rs.(0.01)

 

 

LOCAL AGENCY FURTHER INFORMATION

 

WORKING RESULTS:

 

The restructured marketing activities of the Company along with emphasis on operational efficiency have begun to bear fruit which are reflected in the current year's results. The sales turnover of the Company has increased to Rs.46.797 millions from Rs.38.184 millions, an increase of 22% over the previous year and the profit before tax has increased to Rs.14.979 millions against Rs.12.761 millions in the previous year, an increase of 1 7%.

 

FUTURE OUTLOOK:

 

The Pending Order position as at 31.03.2006 is healthy and all their normal business lines continue to grow as per expectations.

 

In pursuit of their objectives to look for new business opportunities, the Company is in advanced stage of negotiations in the Hallmarking and Aviation Support Services Business.

 

The efforts put into these business opportunities are expected to yield good returns in the coming years.

 

Company’s fixed assets include Buildings on Leasehold Land, Ownership Office Premises, Furniture and Fittings, Electrical Installations, Air Conditioning Machines, Office Equipments, Vehicles, Tools and Equipments and Computer Installations.

 

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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.41.99

UK Pound

1

Rs.84.22

Euro

1

Rs.57.22

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

9

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--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

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

49

 

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

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

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

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

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