MIRA
INFORM REPORT
|
Report Date : |
01.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MADRAS SUSPENSION LIMITED |
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Registered Office : |
Ankottaivadipilli, Madurai 625
218, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.01.1987 |
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Com. Reg. No.: |
013902 |
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CIN No.: [Company
Identification No.] |
U27209TN1987PLC013902 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIM00039E |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of constant thickness leaf Springs and Metal Fasteners |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Poor |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Unknown |
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Comments : |
Ways and Means position of the company is difficult. The Company has
accumulated losses. Payments are slow and delayed The company can be considered for any business dealings on safe and secured
trade terms and conditions, only. |
LOCATIONS
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Registered Office : |
Ankottaivadipilli, Madurai 625
218, Tamil Nadu, India |
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Tel. No.: |
91-4543-254146 |
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Mobile: |
91-9443050228/ 9443168551 |
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E-Mail : |
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Website : |
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Office : |
No. 3, 3rd Cross Street, DSP Nagar, Bye Pass Road, Madurai
– 625 010, Tamil Nadu, India |
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Tel. No.: |
91-452-2380756/ 7, 2380228 |
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Fax No.: |
91-452-2380556 |
DIRECTORS
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Name : |
Mr. Ligi George |
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Designation : |
Managing Director |
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Date of Birth/Age : |
17.02.1957 |
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Date of Appointment : |
05.01.1987 |
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Name : |
Mr. P J Alexander |
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Designation : |
Director |
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Date of Birth/Age : |
31.08.1937 |
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Date of Appointment : |
23.09.2003 |
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Name : |
Mr. S Sundarrajan |
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Designation : |
Director |
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Name : |
Mr. K V Ramana Rao |
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Designation : |
Director |
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Name : |
Mr. M Selvarathinam |
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Designation : |
Vice President |
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Name : |
Mr. Isac John |
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Designation : |
Director |
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Date of Appointment : |
29.09.2005 |
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Name : |
Mr. T Krishnan |
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Designation : |
Secretary |
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Date of Birth/Age : |
15.06.1928 |
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Date of Appointment : |
26.04.1995 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Ligi George |
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3059450 |
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Mrs. Annie George |
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106247 |
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Mrs. Mariamma George |
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60529 |
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Ms. Vibila Mariam George |
|
63773 |
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Mr. George Cherian |
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40462 |
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Mr. Thomas P Cherian |
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10000 |
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Mr. Alice Cherian |
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10000 |
|
Sundaram Finance Services Limited |
|
182000 |
|
UIE Food snack Private Limited |
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45450 |
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Mr. P J Alexander |
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5000 |
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Mr. Issac John |
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5000 |
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Mr. S S Sornomorthy |
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5000 |
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Mr. G Santhana Mariammal |
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2500 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of constant thickness leaf Springs and Metal Fasteners |
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Products : |
Leaf Springs and Air Suspension System |
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Exports : |
Through Ashok Leyland and Other Agencies |
GENERAL
INFORMATION
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Customers : |
v Ashok Leyland
Limited v Defence Vehicle
Factory v Tata Motors v Caterpillar
India Limited v PL Haulwel
Trailers |
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No. of Employees : |
50 |
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Financial Institutions : |
Sundaram Finance Services 21, Patullos
Road, Chennai – 600 002, India |
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Banking
Relations : |
- |
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Auditors : |
P Saravanan Chartered Accountants |
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Address : |
A-5, Vass Complex, 64, Pillayarkoil Street, Goripalayam, Madurai 625
002, Tamil Nadu, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3619900 |
Equity Shares |
Rs. 10/-
each |
Rs. 36.199 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
36.199 |
36.199 |
36.199 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
10.045 |
10.323 |
10.601 |
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4] (Accumulated Losses) |
(170.527) |
(161.489) |
(155.837) |
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NETWORTH |
(124.283) |
(114.967) |
(109.037) |
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LOAN FUNDS |
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1] Secured Loans |
158.229 |
158.333 |
159.706 |
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2] Unsecured Loans |
8.126 |
2.018 |
0.631 |
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TOTAL BORROWING |
166.355 |
160.351 |
160.337 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
42.072 |
45.384 |
51.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
24.403 |
25.401 |
25.099 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.027 |
0.027 |
0.027 |
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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 |
7.392
|
8.553 |
0.000 |
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Sundry Debtors |
19.932
|
22.135 |
0.000 |
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Cash & Bank Balances |
1.119
|
1.003 |
0.000 |
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Other Current Assets |
0.000
|
0.000 |
37.997 |
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Loans & Advances |
7.283
|
7.914 |
7.669 |
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Total
Current Assets |
35.726
|
39.605 |
45.666 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
18.716
|
17.867 |
19.305 |
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Provisions |
0.000
|
2.414 |
0.819 |
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Total
Current Liabilities |
18.716
|
20.281 |
20.124 |
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Net Current Assets |
17.010
|
19.324 |
25.542 |
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MISCELLANEOUS EXPENSES |
0.632 |
0.632 |
0.632 |
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TOTAL |
42.072 |
45.384 |
51.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
24.850 |
111.444 |
241.568 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
24.850 |
111.444 |
241.568 |
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Profit/(Loss) Before Tax |
(9.038) |
(5.652) |
0.310 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
(9.038) |
(5.652) |
0.310 |
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Expenditures : |
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Raw Material Consumed |
15.597 |
73.664 |
160.937 |
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Consumption of stores and spares parts |
1.832 |
7.892 |
17.857 |
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Salaries, Wages, Bonus, etc. |
3.894 |
4.376 |
3.015 |
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Payment to Auditors |
0.013 |
0.013 |
0.013 |
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Interest |
0.000 |
0.000 |
3.222 |
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Insurance Expenses |
0.041 |
0.042 |
0.018 |
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Power & Fuel |
1.106 |
1.525 |
0.000 |
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Depreciation & Amortization |
0.734 |
0.714 |
1.622 |
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Other Expenditure |
10.671 |
28.870 |
54.884 |
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Total Expenditure |
33.888 |
117.096 |
241.568 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
(36.37)
|
(5.07) |
0.12 |
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Net Profit Margin (PBT/Sales) |
(%) |
(36.37)
|
(5.07) |
0.12 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(15.03)
|
(8.69) |
0.43 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.07
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0.04 |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.48
|
1.57 |
1.65 |
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Current Ratio (Current Asset/Current Liability) |
|
1.90
|
1.95 |
2.26 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
Bankers Charges
Report as per Registry
|
Name of the company |
MADRAS
SUSPENSION LIMITED |
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Presented By |
Mr. Ligi George Managing Director |
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1) Date and description of instrument creating the change |
Letter Dated September
21,2000, executed by the company for the deposit of the title deeds with an
interest to create an equitable mortgage on the property owned by M/s Madras
Suspension Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 32.376
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 |
Land belonging to
the company situated at Padhapuram, Tirunelveli District and more fully
described in letter dated 21.09.2000 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
v
Bills
discounting facility of Rs. 18.07 Millions carrying an effective rate of 21%
p.a. v
Inter corporate
deposit facility of Rs. 13.10 Millions carrying an interest at the rate of
23% p.a. v
Hire
purchase facility of Rs. 1.20 Millions carrying finance charges @17.55% flat
p.a. |
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5) Name and Address and description of the person entitled to the charge. |
Regd. Office: Sundaram Finance
Services Limited 21, Patullos
Road, Chennai – 600 002, India Administrative
Office: Sundaram Finance
Services Limited Desabandhu Plaza,
47, Whites Road, Chennai – 600 014, India |
Website Details
Attached:
Profile:
Subject was incorporated in 1987 in Madurai, Tamilnadu, India.
Manufacturing
Automotive Laminated Leaf Springs & Air Suspension System for:
v Light Commercial Vehicle
v Heavy Duty passenger Vehicle
v Heavy Duty Goods Vehicle
v Trailers (upto 40MT Capacity)
Key Developments of the Company:
v Branded as UIE SPRINGS
v Became a Public Limited Company in 1995
v ISO 9001:2000 Certified
Supplier to Original
Equipment Manufacturers in India to:
v Ashok Leyland Limited
v Caterpillar India Limited
v Defence Vehicle Factory
v PL Haulwel Trailers
v Tata Motors (product under development)
Registered contract supplier for ASRTU (Association of Road Transport Undertaking, New Delhi) and supplying to State Transport undertakings (STU’S) in following states of India
v Tamil Nadu (All TNSTU’S)
v Karnataka (KSRTC & BMTC)
v Andhra Pradesh (APSRTC)
v Gujarat (GSRTC & AMTS)
Also supplying to:
v Defence Depots
v Trailer Manufacturers
v Fleet Operators
They are also involved in Exports through ASHOK LEYLAND and other agencies
Quality Policy:
Customer satisfaction by collective involvement of all
Employees and Suppliers, upholding ethics and establishing sustained growth
through QUALITY ASSURANCE.
Quality Objectives:
v On time delivery to Customers
v Minimizing Customer Complaints and Rejection
v Reducing in the House Rejection
Products:
Subject Manufactures constant thickness leaf Springs ( Laminated Leaf Springs) for automotive vehicles. A wide range of Leaf Springs finds application in
v Light duty and medium duty commercial vehicles.
v Heavy duty and very heavy duty vehicles.
v Trailers and defence vehicles.
Subject is Supplying
Springs for:
v Ashok Leyland Ltd - Multi Axle Vehicle, Passenger vehicle with Weveller Suspensions Bus, Goods Truck, Stallian LRV 4x4 Vehicle (for Defence), Tender Fire Fighting Vehicle (for Defence), Hippo& Beaver Vehicles
v Defence Vehicle Factory - Stallian 4x4 Vehicle
v Caterpiller (India) Ltd (Formerly HINDUSTAN MOTORS LTD) - Heavy Duty 25 & 35 MT Dumper (Import Substitute)
v Defence Depot - Scania Truck (Russian)
v Trailer Manufacturers - Upto 40 MT capacity Trailors
v Tata Motors Ltd - Passenger Vehicle, Goods Truck
v State Transport Undertakings - Spring Leaves & Assemblies for Ashok Leyland & Tata Motors Vehicles.
Infrastructure:
Subject Plant has a production capacity of 18000 MT per annum. MSL Factory has 11 acres of landscape with 200 Employees located in Madurai.
The Plant is Equipped with:
v Machines for shearing and forging operations
v Automated pneumatic Eye & Wrap round forming Machine
v Walking Beam Hardening Furnace (Indirect Heat)
v Drum type cambering machine with 8 stations for hardening
v Conveyorised Tempering Furnace
v Short Peening Machine
v Scraging Machine
v Conveyorised paint Booth
The Company has Skilled Employees at all levels
Quality Assurance
Testing facilities
incorporated
v Laboratory for chemical Analysis
v Hardness Testing Machines
v Spring Load Testing Machine
v Spring Endurence Testing Machine
Operating Standards
are well defined and Quality is Assured
v On materials, by means of analysis like Micro Structure etc.
v On Production, by means of periodical and random inspection in all processes.
v On the final Product, by means of employing systematic check with check list etc.
They are having well Qualified and Skilled work force in Quality Assurance.
Research and
Development:
Having the engineering and testing facility, the Research and Development team at MSL uses complete 3D CAD solution for design, thermal analysis program, Finite Element Analysis and quality planning with customer focus to develop, refine and deliver the best Suspension System for vehicles from Buses to trucks to trailers.
MSL accepts incoming material after vigorous quality checks. Close Tolerances and their state of the art quality check points in the manufacturing process confirm their commitment towards customer delight.
At MSL, Total Quality Management encompasses everything they do. They stick to delivery commitments and implement engineering changes rapidly.
v MSL have excellent infrastructure to design and develop leaf springs as per customer requirements, for product ranges from vehicles of 3 Tonnes to 40 Tonnes capacity.
v MSL have been developing the springs for Ashok Leyland Ltd., for their new generation vehicles introduced both for the Medium & Heavy Duty.
v MSL have developed various springs for Defence Vehicles and Trailers against manufacturer’s requirements.
v MSL have developed the Heavy Duty Spring for 35 Ton Dumper, being manufactured by Caterpiller (India) Ltd.
v MSL have developed Wevelite Suspension Springs for Tata Motors. This new system improves passenger comfort and cost effective compared to Air Suspension System.
MSL is planning to
DIVERSIFY ITS ACTIVITIES in the following areas :
v Wevelite Suspension System for:
a) TATA 1616 LPO, 1510 LPO, 1510 CNG Buses
b) Light Passengers Vehicles
v Air Suspension Systems for Medium Duty Passenger Vehicles
v Parabolic type of Springs
v Accessories like Stabilizer bar, Torsion bar etc.
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. 39.67 |
|
UK Pound |
1 |
Rs. 81.78 |
|
Euro |
1 |
Rs. 58.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
10 |
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. |
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 |
|