MIRA
INFORM REPORT
|
Report Date : |
29.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MERCURY MANUFACTURING COMPANY LIMITED |
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Registered Office : |
D-3, Phase 2, MEPZ - Special Economic Zone, Chennai 600
045, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.11.1992 |
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Com. Reg. No.: |
18-23798 |
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CIN No.: [Company
Identification No.] |
U28112TN1992PLC023798 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM05851G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Quality Flat Pack Metal Furniture for Office and
Industry |
RATING &
COMMENTS
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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 433000 |
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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 satisfactory
track. Directors are reported as
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. Payments
are reported as usually correct and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions. |
LOCATIONS
|
Registered Office/Factory : |
D-3, Phase 2, MEPZ - Special Economic Zone, Chennai 600
045, Tamilnadu, India |
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Tel. No.: |
91-44-22628002 /
22628593 |
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Fax No.: |
91-44-2262 8344 |
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E-Mail : |
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Website : |
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Branch 1 : |
Australia : Strategic Storage Solutions Private Limited
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Tel. No.: |
61-(0)7-3715 6899 |
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Fax No.: |
61-(0)7-3715 6877 |
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E-Mail : |
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Contact Person : |
Mr. Alan Elliot |
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Branch 2 : |
Europe : Steelco UK Limited |
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Tel. No.: |
44-(0)-1536 418341 |
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Fax No.: |
44-(0)-1536 711387 |
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E-Mail : |
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Contact Person : |
Mr. Roy Gunnett |
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Branch 3 : |
North
America ,South America, Central
America and Caribbean: Trumove Designs Inc. |
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Tele Fax No.: |
1-905-338 6776 |
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E-Mail : |
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Contact Person : |
Mr. Jimmy Unwalla |
DIRECTORS
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Name : |
Mr. Shankar Ramohalli Kapanipathi |
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Designation : |
Director |
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Address : |
New No. 16, Old No. 11, First Cross Street, Indira Nagar, Chennai
600020, Tamilnadu, India |
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Date of Birth/Age : |
07.03.1948 |
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Date of Appointment : |
01.01.2006 |
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Name : |
Mr. Kyamas Ardeshir Palia |
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Designation : |
Director |
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Address : |
Patel Wadia Building, 7-C, Wadia Street, Tardeo, Mumbai 400034,
Maharashtra, India |
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Date of Birth/Age : |
22.11.1945 |
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Date of Appointment : |
11.11.1992 |
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Name : |
Mr. Phiroze Dinshaw Lam |
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Designation : |
Director |
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Address : |
21/23, Mistry Park, 77, Bhulabhai Desai Road, Mumbai 400036,
Maharashtra, India |
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Date of Birth/Age : |
06.03.1945 |
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Date of Appointment : |
01.04.1997 |
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Name : |
Mr. Vispi Ratansha Dhala |
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Designation : |
Director |
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Address : |
06/07, Lavkush Apartments, Anand Park, Aundh, Pune 411007,
Maharashtra, India |
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Date of Birth/Age : |
08.09.1945 |
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Date of Appointment : |
19.04.1994 |
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Name : |
Mr. Percy Eruch Fouzdar |
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Designation : |
Director |
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Address : |
B-13, Godrej Baug, Off Napean Sea Road, Mumbai 400026, Maharashtra,
India |
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Date of Birth/Age : |
17.06.1956 |
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Date of Appointment : |
25.11.1994 |
KEY EXECUTIVES
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Name : |
Mr. Laxminarayanan Mani Iyer |
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Designation : |
Secretary |
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Address : |
1R, Coral Enclave, 6A, Rajendra Prasad Road, Nehru Nagar, Chrompet, Chennai
600044, Tamilnadu, India |
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Date of Birth/Age : |
21.06.1962 |
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Date of Appointment : |
11.03.1994 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Steel Seal Equipment Limited |
|
1867500 |
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Godrej [M] SDN. BHD. |
|
311250 |
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Godrej [S] Private Limited |
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311250 |
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Godrej and Boyce Manufacturing Company Limited |
|
1259997 |
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Kyamas Palia |
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1 |
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Percy Fouzdar |
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1 |
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Shankar Ramohalli Kapanipathi |
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1 |
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Total |
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3750000 |
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Equity Share
Break-up |
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Percentage of
Holding |
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Foreign Holdings |
|
66.40 |
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Bodies Corporate |
|
33.60 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Quality Flat Pack Metal Furniture for Office and
Industry |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Indian Bank MEPZ Branch, MEPZ
Special Economic Zone, Administrative Building, Tambaram, Chennai 600 045 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kalyaniwalla and Mistry Chartered Accountants |
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Address : |
Kalpataru Heritage, 127, Mahatma Gandhi Road, Mumbai 400001,
Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14000000 |
Equity Shares |
Rs. 10/- each |
Rs. 140.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3750000 |
Equity Shares |
Rs. 10/-
each |
Rs. 37.500
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 |
37.500 |
37.500 |
37.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
70.803 |
60.666 |
55.227 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
108.303 |
98.166 |
92.727 |
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LOAN FUNDS |
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1] Secured Loans |
22.756 |
18.899 |
15.084 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
22.756 |
18.899 |
15.084 |
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DEFERRED TAX LIABILITIES |
6.735 |
6.344 |
6.750 |
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TOTAL |
137.794 |
123.409 |
114.561 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
46.281 |
38.813 |
34.042 |
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Capital work-in-progress |
0.000 |
10.871 |
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 |
42.428
|
36.385 |
37.682 |
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Sundry Debtors |
48.740
|
56.094 |
43.386 |
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Cash & Bank Balances |
4.832
|
4.344 |
0.609 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
11.370
|
13.582 |
8.540 |
|
Total
Current Assets |
107.370
|
110.405 |
90.217 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
10.553
|
26.207 |
6.300 |
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Provisions |
5.304
|
10.473 |
3.398 |
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Total
Current Liabilities |
15.857
|
36.680 |
9.698 |
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Net Current Assets |
91.513
|
73.725 |
80.519 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
137.794 |
123.409 |
114.561 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
245.058 |
243.804 |
171.079 |
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Other Income |
4.853 |
4.916 |
3.105 |
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Total Income |
249.911 |
248.720 |
174.184 |
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Profit/(Loss) Before Tax |
34.247 |
21.481 |
22.269 |
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Provision for Taxation |
-- |
-- |
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Profit/(Loss) After Tax |
34.247 |
21.481 |
13.515 |
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Earnings in Foreign Currency : |
240.068 |
239.380 |
169.028 |
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Total Imports |
--- |
--- |
42.371 |
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Expenditures : |
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Raw Material Consumed |
137.836 |
155.204 |
97.737 |
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Operating and other Expenses |
0.000 |
0.000 |
49.095 |
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Net Loss on Sale/Disposal of Fixed Assets |
0.000 |
0.000 |
0.010 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spare parts |
4.874 |
4.072 |
0.000 |
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|
Increase/(Decrease) in Finished Goods |
0.868 |
[1.323] |
[0.660] |
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|
Salaries, Wages, Bonus, etc. |
16.660 |
16.615 |
0.000 |
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Managerial Remuneration |
2.711 |
0.416 |
0.000 |
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Payment to Auditors |
0.127 |
0.136 |
0.000 |
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Interest |
1.796 |
1.035 |
0.979 |
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Insurance Expenses |
0.200 |
0.121 |
0.000 |
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Power & Fuel |
15.564 |
13.285 |
0.000 |
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Depreciation & Amortization |
6.627 |
5.451 |
4.754 |
|
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Other Expenditure |
28.400 |
32.226 |
0.000 |
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Total Expenditure |
215.663 |
227.238 |
151.915 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
13.70
|
8.63 |
7.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
13.97
|
8.81 |
13.01 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
22.28
|
14.39 |
17.92 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.21 |
0.24 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.35
|
0.56 |
0.26 |
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Current Ratio (Current Asset/Current Liability) |
|
6.77
|
3.00 |
9.30 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ø
Buildings
Ø
Plant and Machinery
Ø
Computers
Ø
Office Equipments
Ø
Furniture and Fixtures
Ø
Vehicles
CONTINGENT LIABILITIES NOT PROVIDED FOR :
Ø Disputed Property Taxes : Rs. 1.599 Millions [as at 31.03.2004 : Rs. 1.353]
Ø Disputed Income Tax Liability : Rs. 0.848 Millions [as at 31.03.2004 : Rs.
0.848]
Ø Claims against the Company
Under the
Industrial Disputes Act, 1947 : Amount
Indeterminable
Ø Customs duties exempted on import of
Material to be
consumed/accounted : Rs. 12.607 Millions [as at 31.03.2004:
Rs. 30.025 Millions]
Form 8
Bankers Charges
Report as per Registry
|
Name of the company |
MERCURY
MANUFACTURING COMPANY LIMITED |
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Presented By |
Mr.
Lakshminarayanan - Company Secretary |
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1) Date and description of instrument creating the change |
13.09.2004 unattested agreement of hypothecation of movable properties
for working capital finance. |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 30.000
Millions comprising of Export Bills
purchase limit upto Rs. 20.000 Millions plus import Letter of Credit facility
upto Rs. 10.000 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 |
Entire Inventory
viz. Raw materials, Finished Goods,
Work in process, existing Plant and Machinery with WDV of Rs. 25.278 Millions
as on 31.03.2003 in the factory premises at D-3, MEPZ-SEZ, Chennai 600045 and
book debts of the Company. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
The Foreign Bills
purchase/Negotiation [DA/DP] 180 days, limit of Rs. 20.000 Millions in
Foreign Currency is at interest of LIBOR + 0.75% + 1.5% and with bank margin
of 10% on documentary bills accompanied by Bill of Lading. Import L/C
facility of Rs. 10.000 Millions is on a bank margin of 10% of L/C value. |
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5) Name and Address and description of the person entitled to the
charge. |
Indian Bank MEPZ Branch, MEPZ
Special Economic Zone Administrative Building, Tambaram, Chennai 600 045 |
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6) Date and brief description
of instrument modifying the charge |
12.01.2006 Ø
Agreement of
hypothecation of movables for value Rs. 60.000 Millions [including Plant and
Machinery with a book value of Rs. 19.159 Millions as on 31.03.2005] Ø
Agreement
for bills purchased for value Rs. 40.000 Millions Ø
Demand
Promissory Note for value Rs. 30.000 Millions Ø
Agreement of
irrevocable letter of credit for value Rs. 20.000 Millions plus Rs. 9.000
Millions Ø
Agreement
for hypothecation of goods received under LC for value Rs. 20.000 Millions
plus Rs. 9.000 Millions |
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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 charge on
moveable assets stands modified to cover the enhanced working capital credit
as under : [Rs.
In Millions]
|
AS PER WEBSITE DETAILS:
PROFILE:
Subject was incorporated in 1992 with the sole purpose of servicing export markets world wide with an innovative range of flat pack steel office products.
PRODUCTS:
The Mercury CKD Concept
Products are designed around the CKD (completely knocked down) or flat pack kit concept. This involves manufacturing the sheet metal panels to a very high level of accuracy, making judicious use of snap fit joints and riveting, to arrive at panels which go together easily and quickly in a fool proof manner. The panels, when packed as a kit , intermesh together to form a flat and very compact package.
The compact CKD packet enables Mercury to stuff a larger number of products per shipping container. This translates into very low unit freight cost, for shipping around the globe to their worldwide dealer network. This enables the product (as well as the dealer) to retain a competitive edge in the market place.
The use of corner gussets in all their CKD products ensures that the carcase retains its exceptionally high rigidity when assembled. Mercury CKD products surpass the rigidity of most other welded products. This is exemplified by the products exceeding ANSI/BIFMA and BS specifications. The use of quality componentry (suspensions and hardware) custom made to their exacting specifications ensures life long trouble free service.
Flexible manufacturing
The manufacturing process and man machine interfaces are designed to be extremely flexible.
This allows Mercury to adapt to each customer's requirements, in terms of product modifications, new product introductions, and very low turn around times for production and delivery.
Finish
All products are powder coated, using a state-of-the-art pretreatment and coating process, for a flawless finish.
LISTING OF DEALERS WORLDWIDE
|
AUSTRALIA |
Perth - Western Australia Adelaide - South Australia Melbourne - Victoria Sydney - New South Wales Brisbane - Queensland Launceston
- Tasmania |
|
CANADA |
Toronto -
Ontario |
|
FIJI |
Suva |
|
KENYA |
Nairobi |
|
KUWAIT |
Kuwait City |
|
MEXICO |
Mexico City |
|
SAUDI
ARABIA |
Riyadh Jeddah Dammam |
|
UAE |
Dubai |
|
UGANDA |
Kampala |
|
UK |
Rothwell -
Northamptonshire |
|
USA |
New York City - New York San Juan - Puerto Rico |
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. 39.44 |
|
UK Pound |
1 |
Rs. 78.73 |
|
Euro |
1 |
Rs. 57.69 |
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 |
|