MIRA
INFORM REPORT
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Report Date : |
21.08.2007 |
IDENTIFICATION DETAILS
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Name : |
MJN AXLES PRIVATE LIMITED |
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Registered Office : |
A-2 / 194, Janak Puri, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.05.1996 |
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Com. Reg. No.: |
55-079362 |
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CIN No.: [Company
Identification No.] |
U34300DL1996PTC079362 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM08573F |
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PAN No.: [Permanent
Account No.] |
AAACM8679A |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufacturers of Axles and Auto Parts. |
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 16144 |
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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 : |
A-2 / 194, Janak Puri, |
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Tel. No.: |
91-11-25624291 / 28116230 / 5590071 |
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Fax No.: |
91-11-25624291 / 28116510 |
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E-Mail : |
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Factory : |
GI 572, Industrial Area,
Bhiwadi, Phase – II, District Alwar – 301 001, |
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Tel. No.: |
91-1493-224547 |
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91-9811105075 |
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Fax No.: |
91-1493-224547 |
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Website: |
DIRECTORS
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Name : |
Mr. Yash Pal Mahajan |
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Designation : |
Director |
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Address : |
A-2 / 194, Janakpuri, |
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Date of Birth/Age : |
01.02.1945 |
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Date of Appointment : |
03.06.1997 |
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Name : |
Mr. Sanjay Mahajan |
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Designation : |
Whole Time - Director |
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Address : |
A-2 / 194, Janakpuri, |
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Date of Birth/Age : |
19.01.1972 |
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Date of Appointment : |
31.05.1996 |
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Name : |
Ms. Neelam Mahajan |
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Designation : |
Director |
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Address : |
A – 2 /194, Janakpuri, |
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Date of Birth/Age : |
04.09.1954 |
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Date of Appointment : |
31.05.1996 |
KEY EXECUTIVES
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Name : |
Mr. Vikas Kumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Sanjay Mahajan |
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37510 |
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Mrs. Neelam Mahajan |
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106810 |
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Mr. Yash Pal Mahajan |
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500 |
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PRV Sales Corporation |
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100 |
Equity share Break – up (Percentage of total equity):
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Sr.No |
Category |
Percentage |
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1 |
Directors or relatives of Directors |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Axles and Auto Parts. |
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Products : |
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Exports : |
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Countries : |
Singapore, Malaysia, Indonesia, South Africa, USA, Canada, Australia,
Saudi Arabia, Bangladesh, Sudan |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
50 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. R K Mahajan and Associates Chartered Accountants |
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Address : |
205 and 316, Aditya Commercial Complex,19 Nangai Raya, New Delhi–110
046 |
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Memberships : |
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Associates/Subsidiaries : |
B-779,RIICO Industrial Area, Phase II,Bhiwadi,District Alwar-301001, Rajasthan Tel No.: 91-1493-224547 / 512834
B-779,RIICO Industrial Area, Phase II,Bhiwadi,District Alwar-301001, Rajasthan Tel No.: 91-1493-224547 / 512834 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity Shares |
Rs.10/- each |
Rs.2.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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144920 |
Equity Shares |
Rs.10/- each |
Rs.1.449
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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1.449 |
1.448 |
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2] Share Application Money |
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3] Reserves & Surplus |
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2.587 |
2.345 |
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4] (Accumulated Losses) |
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NETWORTH |
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4.036 |
3.793 |
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LOAN FUNDS |
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1] Secured Loans |
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10.245 |
9.473 |
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2] Unsecured Loans |
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1.395 |
1.295 |
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TOTAL BORROWING |
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11.640 |
10.768 |
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DEFERRED TAX LIABILITIES |
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0.417 |
0.511 |
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TOTAL |
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16.093 |
15.072 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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5.002 |
5.619 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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10.624 |
7.901 |
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Sundry Debtors |
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8.427 |
6.872 |
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Cash & Bank Balances |
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1.225 |
0.862 |
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Loans & Advances |
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3.303 |
2.178 |
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Total
Current Assets |
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23.579 |
17.813 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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12.272 |
8.038 |
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Provisions |
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0.216 |
0.324 |
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Total
Current Liabilities |
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12.488 |
8.362 |
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Net Current Assets |
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11.091 |
9.451 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.002 |
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TOTAL |
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16.093 |
15.072 |
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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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20.294 |
22.791 |
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Other Income |
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0.248 |
0.764 |
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Total Income |
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20.542 |
23.555 |
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Profit/(Loss) Before Tax |
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0.365 |
1.200 |
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Provision for Taxation |
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0.123 |
0.439 |
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Profit/(Loss) After Tax |
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0.242 |
0.761 |
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FOB Value |
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11.885 |
11.864 |
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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1.17 |
3.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.79 |
5.26 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.27 |
5.12 |
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Return on Investment (ROI) (PBT/Networth) |
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0.09 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
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5.97 |
5.04 |
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Current Ratio (Current Asset/Current Liability) |
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1.88 |
2.13 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the
company |
MJN AXLES PRIVATE LIMITED |
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Presented By |
BANK OF |
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1) Date and
description of instrument creating the change |
19.10.2000 –
Registered on 20.11.2000 Agreement |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs.3.300 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 all
movable property including in particular stocks of raw materials for making
rear axles, finished, semi – finished stocks and stock in transit, whether
now lying or at any time hereafter during the continuance of this security
lying or being in or about the borrower’s premises and godown or wherever
else the same may be. |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
The above is hypothecated to secure the
following credit facilities granted by the bank to the company
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5) Name and
Address and description of the person entitled to the charge. |
Bank of |
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6) Date and brief description of instrument modifying
the charge |
22.09.2005 Supplemental Agreement of Hypothecation of stocks. Previously
modified on 14.05.2002 for change in terms and conditions and modification
registered on 17.06.2002 |
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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. |
The amount of
charge over tangible movable property of the borrower such as stocks, etc. as
mentioned in column no.3 above, stands enhanced from Rs.3.300 millions to Rs.
10.595 millions to secure the following credit facilities granted by the bank
to the company:-
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WEBSITES DETAIL :
Subject is one of
Today, the company caters to the needs of all its
distinguished customers both in domestic as well as overseas. Its motive is to
manufacture products as per the requirements of the customers. The company is
renowned as one of the leading manufacturer and exporter of better grade Axle
Shafts. Its product range is very vast probably, one of the largest
available in
Its integrated manufacturing set up includes sophisticated in-house facilities, from initial raw material stage to finished products. There are two horizontal upset forging machines with capacity ranging from 3 inch to 5 inch. Apart from this, they have excellent facility for cold and drop forging with induction heating to provide uniform heat, that ensure proper gain flow structure, smooth finish and close machinery tolerance.
Most reliable CNC turning centres and battery lathes form an integral part of their manufacturing facilities. Grob ZRME9, Churchill rigid hobbers and WMW spline cutting machines are installed which can deliver highest level of quality and quantity required in Splined components. Induction hardening unit, medium frequency with CNC controls are installed in their manufacturing unit. Annealing, carburising, tempering, multi drill machines of various makes and sizes, cylindrical grinders, magnaflux crack detectors, hydraulic press are also installed in their unit.
For excellent products the company has earned the golden opinion of its clients from around the world.
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 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.40.86 |
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1 |
Rs.81.62 |
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Euro |
1 |
Rs.55.38 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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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 |
YES |
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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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45 |
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. |
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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