MIRA
INFORM REPORT
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Report Date : |
23.08.2007 |
IDENTIFICATION DETAILS
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Name : |
MBM ENGINEERING INFOTECH LIMITED |
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Registered Office : |
50, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.06.2000 |
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Com. Reg. No.: |
18-45244 |
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CIN No.: [Company
Identification No.] |
U722000TN2000PLC045244 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM05014C |
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Legal Form : |
A Closely held
Public Limited Liability Company |
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Line of Business : |
Manufacturer of
Bearing Adapter Sleeves, Lock, Nuts, Lock Washers, Machined Castings, Bearing
Housing, Plummer Blocks and Shafts. |
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 106440 |
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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 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
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Registered Office : |
50, |
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Tel. No.: |
91-44-25341528/
25359773 |
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Fax No.: |
91-44-25342194 |
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E-Mail : |
midha@satyam.net.in / demblaamar@yahoo.co.in / info@mbmengg.com
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Factory 1: |
No. 2/3, G |
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Factory 2: |
No. 71, |
DIRECTORS
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Name : |
Mrs. Archana M. S |
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Designation : |
Director |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Birth/Age : |
13.12.1965 |
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Date of Appointment : |
05.09.2001 |
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Name : |
Mrs. Vandana
Arora |
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Designation : |
Director |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Appointment : |
05.09.2001 |
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Name : |
Mrs. Pavandeep
Midha |
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Designation : |
Director |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Birth/Age : |
07.06.1948 |
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Date of Appointment : |
23.06.2000 |
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Name : |
Mr. Dinkar Kumar
Midha |
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Designation : |
Director and
General Manager (Production) |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Birth/Age : |
26.09.1970 |
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Qualification: |
B Tech, MBA (Chennai) |
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Experience : |
10 Years |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mr. Rakesh Kumar
Midha |
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Designation : |
Director and
General Manager (Marketing) |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Birth/Age : |
20.03.1968 |
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Qualification: |
B Tech. (IIT),
MBA (IIM) |
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Experience : |
12 Years |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mr. V. M. S.
Midha |
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Designation : |
Director |
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Address : |
AH 57, Anna
Nagar, Chennai – 600 040, |
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Date of Birth/Age : |
15.12.1940 |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mr. S. S. Sodhi |
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Designation : |
Director |
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Address : |
27, The Mall,
Sagar Cantt, Sagar, Madhya Pradesh, India |
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Date of Birth/Age : |
10.07.1940 |
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Date of Appointment : |
29.09..2005 |
MAJOR SHAREHOLDERS
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Names of
Shareholders |
No. of Shares |
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Mrs. Pavandeep
Midha |
250125 |
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Mrs. Vandita
Midha |
1437 |
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Mrs. Pooja Midha |
1437 |
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Mrs. Vandana A. |
1437 |
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Mrs. Archana M. |
1438 |
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Midha and Midha
Private Limited |
64125 |
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Mr. V. M. S.
Midha |
162000 |
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Ms. Guncha Midha |
12500 |
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Mr. Rakesh Kumar
Midha |
101438 |
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Mr. Dinkar Kumar
Midha |
101438 |
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Neil Information
Technology Private Limited |
76800 |
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Total: |
774175 |
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 |
82.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Bearing
Adapter Sleeves, Lock, Nuts, Lock Washers, Machined Castings, Bearing
Housing, Plummer Blocks and Shafts. |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
150 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Amarlal and company Chartered Accountants |
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Address : |
10, |
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Mobile No.: |
91-44-25355504/
25341087 |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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774175 |
Equity Shares |
Rs.10/- each |
Rs.7.741
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
7.742 |
7.742 |
4.973 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
18.868 |
10.356 |
1.173 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
26.610 |
18.098 |
6.146 |
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LOAN FUNDS |
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1] Secured Loans |
16.555 |
14.065 |
3.944 |
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2] Unsecured Loans |
6.739 |
0.633 |
6.835 |
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TOTAL BORROWING |
23.294 |
14.698 |
10.779 |
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DEFERRED TAX LIABILITIES |
0.778 |
0.752 |
0.486 |
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TOTAL |
50.682 |
33.548 |
17.411 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
20.486 |
11.702 |
6.374 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
6.366
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5.656 |
3.282 |
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Sundry Debtors |
21.643
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17.502 |
12.810 |
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Cash & Bank Balances |
0.749
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0.659 |
0.168 |
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Other Current Assets |
5.375
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0.453 |
0.432 |
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Loans & Advances |
5.150
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1.108 |
1.286 |
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Total Current Assets |
39.283
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25.378 |
17.978 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
9.104
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3.553 |
6.966 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total Current Liabilities |
9.104
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3.553 |
6.966 |
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Net Current Assets |
30.179
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21.825 |
11.012 |
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MISCELLANEOUS EXPENSES |
0.017 |
0.021 |
0.025 |
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TOTAL |
50.682 |
33.548 |
17.411 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
73.977 |
42.099 |
30.374 |
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Other Income |
1.407 |
0.000 |
0.726 |
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Total Income |
75.384 |
42.099 |
31.101 |
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Profit/(Loss) Before Tax |
13.276 |
0.978 |
1.463 |
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Income Including deferred tax |
4.767 |
0.367 |
0.297 |
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Profit/(Loss) After Tax |
8.509 |
0.611 |
1.166 |
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Export Value |
0.000 |
0.058 |
0.000 |
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Import Value |
0.000 |
2.779 |
1.739 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
2.931 |
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Selling Expenses |
0.000 |
0.000 |
1.327 |
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Purchases made for re-sale |
24.282 |
15.207 |
0.000 |
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Salaries, Wages, Bonus, etc. |
7.208 |
10.346 |
9.043 |
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Managerial Remuneration |
7.200 |
0.000 |
0.000 |
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Payment to Auditors |
0.020 |
0.025 |
0.000 |
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Interest |
0.041 |
0.079 |
0.105 |
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Insurance Expenses |
0.133 |
0.113 |
0.000 |
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Power & Fuel |
0.954 |
0.755 |
0.000 |
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Depreciation & Amortization |
2.565 |
1.461 |
0.934 |
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Other Expenditure |
19.705 |
13.135 |
6.162 |
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Total Expenditure |
62.108 |
41.121 |
20.502 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
11.28
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1.45 |
3.84 |
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Net Profit Margin (PBT/Sales) |
(%) |
17.94
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2.32 |
4.82 |
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Return on Total
Assets (PBT/Total Assets} |
(%) |
54.51
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2.64 |
6.00 |
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Return on
Investment (ROI) (PBT/Networth) |
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0.73
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0.05 |
0.24 |
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Debt Equity Ratio (Total
Liability/Networth) |
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1.00
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1.01 |
2.88 |
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Current Ratio (Current
Asset/Current Liability) |
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7.14
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7.14 |
2.58 |
LOCAL AGENCY FURTHER INFORMATION
Capital
Expenditure:
Capital Expenditure
incurred during the year amounted to Rs. 6.789 Millions.
The company has
incurred expenditure mainly in priority areas like setting up of plant &
machinery, improving management information systems and for achieving growth in
business with proper support services
Fixed Assets:
Air Conditioner
Car
Computer
Fixtures &
Fitting
Generator
Machinery
Motor Cycle
Xerox Machine
Scooter
Tools and Equipment
Van
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Name of the
company |
MBM
ENGINEERING INFOTECH LIMITED |
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Presented By |
Pavandeep
Midha |
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1) Date and
description of instrument creating the change |
14.05.2003
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2) Amount secured
by the charge/amount owing on the securities of charge |
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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 |
Plant &
Machineries, Goods, Produce, Merchandise, Stock stored or to be stored from
time to time in premises at No. 2/3 GNT Road, Allinjivakkam and No. 71,
Poonamallaee High Road, Maduravoyal, Chennai for the whole limit. |
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4) Gist of the terms
and conditions and extent and operation of the charge. |
Interest – PLR
+2% Minimum Rate –
13.75% Margin – 25% |
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5) Name and
Address and description of the person entitled to the charge. |
Indian Bank,
Mannady Branch, Chennai – 600 001. |
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6) Date and brief description of instrument
modifying the charge |
10.03.2005
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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. |
Overall Credit Limits
have been enhanced from Rs. 5.900 Millions to Rs. 20.986 Millions. The Total
facilities with the Bank are as follows: (Amount in Millions)
Security: OCC – Hypothecation of stocks and book debts of age not more than 90 days. MTNL – 2: Hypothecation of machinery purchased at a
cost of Rs. 3.715 Millions. MTNL – 3: Hypothecation of second hand machinery
already imported at a cost of Rs. 2.868 Millions. MTNL – 4: Hypothecation of New Machinery proposed to
be imported at a total cost of Rs. 3.110 Millions. One
Time Import LC (Capital): Hypothecation
of capital goods to be imported. Additional Securities: Hypothecation of existing
machinery worth Rs. 7.501 Millions and the securities already hypothecated is
extended to cover the enhanced credit facilities. Margin: OCC – : 25%, MTL2: 25%, MTL3: 50% MTL4: 25%, One Time Import LC (Capital): 25%, Performance Guarantee:
25% Repayment: MTNL – 2: in 56 equal monthly instalment of Rs.
0.050 Millions each commencing from February 2005. MTNL – 3: in 60 monthly instalment of Rs. 0.023
Millions with a holiday period of one month. MTNL – 4: in 60 monthly instalment of Rs. 0.039 Millions
with a holiday period of one month. All other terms and conditions remain the same. |
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Corporation identity number or foreign company registrations number of
the company |
U72200TN2000PLC045244 |
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Name of the company |
MBM ENGINEERING INFOTECH LIMITED |
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Address |
50, |
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This Form is for |
Modification of Charge |
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Type of Charges |
Hypothecation |
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Particular of the charge holder
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Indian Bank, Mannady Branch, Email: www.ibmannad@indianbank.co.in |
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Amount Secure by the charge |
Rs.5.900 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Interest – PLR+2% Minimum Rate -19.76% Margin - 25% |
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Description of the property charge whether it is a charge on |
Plant and machinery Stock in Trade Book Debts |
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Modification charge Charge identification number of the charge to be modified |
80007813 |
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Date of instrument modifying the charge |
20.07.2006 |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 41.12 |
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|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.56.03 |
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 |
NO |
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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 |
|
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
|
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 |
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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 |
|
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. |
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 |
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