MIRA
INFORM REPORT
|
Report Date : |
27.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
PRECISION VALVE [INDIA] PRIVATE LIMITED |
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Registered Office : |
228, Pragati Industrial Estate, N M Joshi Marg, Lower Parel [East], Mumbai
400011, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.12.1987 |
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Com. Reg. No.: |
11-45610 |
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CIN No.: [Company
Identification No.] |
U29100MH1987PTC045610 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP16485A |
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PAN No.: [Permanent
Account No.] |
AAACP6588P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing and Marketing of Aerosal Valves |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 130000 |
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Status : |
Good |
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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 fine track
records. Directors are reported as
experienced and respectable businessman.
Trade relations are fair.
Fundamentals are strong. Payments
are reported as usually correct and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office/Factory : |
228, Pragati Industrial Estate, N M Joshi Marg, Lower Parel [East],
Mumbai 400011, Maharashtra, India |
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Tel. No.: |
91-22-23097732 / 3003232 |
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Fax No.: |
91-22-23070618 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Bhogilal L. Patel |
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Designation : |
Director |
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Address : |
63, Apurva Apartment, 5, Nepeansea Road, Mumbai 400036, Maharashtra,
India |
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Date of Birth/Age : |
06.10.1943 |
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Date of Appointment : |
16.12.1987 |
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Name : |
Mr. Rajendra Ambalal Shah |
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Designation : |
Director |
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Address : |
Panorama, 2nd floor, 203, Walkeshwar Road, Mumbai 400006,
Maharashtra, India |
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Date of Birth/Age : |
07.07.1931 |
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Date of Appointment : |
16.12.1987 |
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Name : |
Mr. Dipak J. Shukla |
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Designation : |
Director |
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Address : |
11, Khatau Apartment, 243, Walkehwar Road, Mumbai 400006, Maharashtra,
India |
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Date of Birth/Age : |
17.04.1939 |
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Name : |
Mr. David Boddy |
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Designation : |
Director |
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Address : |
700, Nepperhan Avenue, Yonkers, New York 10703 |
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Date of Birth/Age : |
09.09.1939 |
KEY EXECUTIVES
|
Name : |
D. J. Vyas and Associates |
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Designation : |
Company Secretaries |
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Address : |
121, Sagar Shopping Centre, 76, Jai Prakash Road, Andheri (West),
Mumbai 400058, Maharashtra, India |
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Tel. No. : |
91-22-26773303 |
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Fax No. : |
91-22-26773304 |
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E-mail : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Precision Valve Corporation |
|
12750 |
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Bhogilal Patel |
|
7740 |
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Purushottam Patel |
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1 |
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Laljibhai Patel |
|
1 |
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Laxmi Patel |
|
1500 |
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Yogesh Patel |
|
500 |
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Bhogilal Patel HUF |
|
1000 |
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Beauty Queen Cosmetics Private Limited |
|
500 |
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Asian Aerosol Private Limited |
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1000 |
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B. L. Patel as Partner of Aerospace |
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1 |
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B. L. Patel as Partner of Aerosal De Asia |
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1 |
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Aero Industries |
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1 |
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B. L. Patel as Partner of Asian Container |
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1 |
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Asian Container Kantilal Sheth |
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1 |
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Ami Patel |
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1 |
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Jyoti Patel |
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1 |
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L C. Patel HUF |
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1 |
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Total
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25000 |
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Equity Share Break-up |
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Percentage of
Holding |
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Foreign Holdings |
|
51.00 |
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Bodies Corporate |
|
6.00 |
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Directors or relatives of the Directors |
|
43.00 |
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Total
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|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Aerosal Valves |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
1’ Valve |
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Nos. |
36288000 |
25670 |
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20mm Valve |
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Nos. |
8640000 |
NIL |
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Pumps |
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Nos. |
5000000 |
NIL |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Ř State Bank of India, Vapi, Gujarat |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. J. C. Bhatt Chartered Accountants |
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Address : |
Surya Mahal, 3rd floor, 5, Burjoji Bharucha Marg, Fort,
Mumbai 400023, Maharashtra, India |
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Associates/Subsidiaries : |
Ř Chic Cosmetics Private Limited Ř Asian Aerosa Private Limited Ř Prime Agencies Private Limited |
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Parent Company : |
Ř Precision Valve Corporation, USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 100/- each |
Rs. 5.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000 |
Equity Shares |
Rs. 100/- each |
Rs. 2.500
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
2.500 |
2.500 |
2.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
30.951 |
30.702 |
25.470 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
33.451 |
33.202 |
27.970 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.036 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.036 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
33.451 |
33.202 |
28.006 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.204 |
3.608 |
4.612 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.100 |
0.100 |
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DEFERREX TAX ASSETS |
0.241 |
0.217 |
0.355 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
7.598 |
18.529 |
23.158 |
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Sundry Debtors |
12.174 |
3.008 |
19.377 |
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Cash & Bank Balances |
0.655 |
8.667 |
1.326 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
50.094 |
46.423 |
34.021 |
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Total
Current Assets |
70.521 |
76.627 |
77.882 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
5.965 |
11.693 |
22.057 |
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Provisions |
35.650 |
35.657 |
32.886 |
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Total
Current Liabilities |
41.615 |
47.350 |
54.943 |
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Net Current Assets |
28.906 |
29.277 |
22.939 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
33.451 |
33.202 |
28.006 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
20.866 |
64.239 |
95.046 |
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Other Income |
0.000 |
0.000 |
0.251 |
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Total Income |
20.866 |
64.239 |
95.297 |
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Profit/(Loss) Before Tax |
0.265 |
9.061 |
21.302 |
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Provision for Taxation |
-- |
-- |
8.979 |
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Profit/(Loss) After Tax |
0.265 |
9.061 |
12.323 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
61.191 |
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Employees cost |
0.000 |
0.000 |
3.870 |
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Operating and other Expenses |
0.000 |
0.000 |
7.796 |
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Finance Charges |
0.000 |
0.000 |
0.407 |
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Depreciation |
0.576 |
0.578 |
0.730 |
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Interest |
0.073 |
0.138 |
0.000 |
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Other Expenditure |
19.952 |
54.462 |
0.000 |
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Total Expenditure |
20.601 |
55.178 |
73.994 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.27
|
14.10 |
12.93 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.27
|
14.10 |
22.41 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.37
|
11.82 |
25.82 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.27 |
0.76 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.24
|
1.42 |
1.96 |
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Current Ratio (Current Asset/Current Liability) |
|
1.69
|
1.61 |
1.41 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges Report
as per Registry
|
Name of the company |
PRECISION VALVE
[INDIA] PRIVATE LIMITED |
|
Presented By |
State Bank of
India, Vapi Industrial Township, Vapi |
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1) Date and description of instrument creating the change |
General Agreement dated 06.12.1989 for the grant of small industrial
advances and hypothecation of movables. Book debts and other assets. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.800
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 |
Goods documents
of titles thereto, Book debts, outstanding moneys, receivable claim, bills,
invoices and documents and any such and or other movables. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest
@ 15.5% p.a. with quarterly rest. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
India Vapi Industrial,
Vapi 396 195 |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
Fixed Assets
Ř Freehold land
Ř Buildings
Ř Plant & machinery
Ř Tools, moulds and dyes
Ř Electrical installation
Ř Furniture and fixtures
Ř Office equipments
Ř Motor car and computer.
Notes:
The Company entered into Technical
Collaboration Agreements (TCA0 dated 27.10.1987 with Precision Valve
Corporation, USA for manufacture of Aerosol Valves and Pumps. In terms of agreement which was initially
for five years and was extended from time to time, the Company is required to
pay Royalty as a compensation for the rights granted under the Agreement. The Agreement and further extensions upto
07.05.2000 were approved by the Government of India. Ministry of Industry
and/or Reserve bank of India [RBI] which has been relied upon by the Auditors
as the necessary approvals were not available for their verification. The Company’s application dated 07.03.2002
for the extension of TCA for a further period of five years from 08.05.2000 to
07.05.2005 is pending approval from SBI.
No provision has been made in the accounts for Royalty for the years
ended 31.03.2002, 31.03.2003 and 31.03.2004 which is estimated at Rs.0.901
Millions, Rs.0.921 Millions and Rs.1.066 Millions respectively.
Further the provision for the estimated
liability for Royalty for the three years ended 31.03.2001 aggregating Rs.2.106
Millions accounted in the earlier year is outstanding as at the year ended,
which is payable and would be paid after completing the necessary formalities.
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.39.39 |
|
UK Pound |
1 |
Rs.78.02 |
|
Euro |
1 |
Rs.56.77 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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 |
|