MIRA INFORM REPORT
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Report Date : |
05.01.2007 |
IDENTIFICATION DETAILS
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Name : |
SERVALL
ENGINEERING WORKS PRIVATE LIMITED |
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Registered Office : |
10-Z,
Bharathi Nagar, 7th Cross, Sai Baba Colony, Coimbatore, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.08.1989 |
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Com. Reg. No.: |
18-02498 |
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CIN No.: [Company Identification No.] |
U52110TZ1989PTC2498 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CMBS05563F |
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PAN No.: [Permanent Account No.] |
AAECS2949H |
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Legal Form : |
Closely
held public limited company |
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Line of Business : |
Manufacture and sale of paper making machinery and
it’s spares and accessories |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 500000 |
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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, respectable and resourceful
industrialist. Their trade relations are fair. General financial position is
good. Payments are correct and as per commitments. The
company can be considered good for any normal business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Head
office : |
10-Z, Bharathi Nagar, 7th
Cross, Sai Baba Colony, Coimbatore, Tamilnadu, India |
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Tel. No.: |
91-422-2431284/
5384613 to 5384616 |
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Fax No.: |
91-422-2430077 |
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E-Mail : |
sermdsof@md3.vsnl.net.in,natarajan@servall.co.in, ho@servall.co.in |
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Website : |
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Area : |
5250
Sq. ft |
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Location : |
Owned
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Factory 1 : |
Mettupalayam
Road, Kramadai-641104, Coimbatore District, Tamilnadu,
India |
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Tel. No.: |
91-4254-272005
/ 275229 / 275361 |
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Fax No.: |
91-4254-4254-272844 |
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E-mail: |
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Area: |
75000
Sq. ft |
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Location : |
Owned
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Branch : |
Group
office at Chennai |
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Overseas Representatives
: |
Europe Mr. Michael Meycke Singapore & Malaysia Chemco Private Limited Phone:
0065 6748 5077 Contact person: Mr. Quek Wan, Director. Email: quek_wan@chemco.com.sg Phillipines M/s. GHV Enterprises Contact Person: Mr. Ramon S. De Vera Email: ramaondevera4@pacific.net.ph Indonesia PT Pacific Tirtapersada Contact Person: Mr. Giarta Chaspuri, Technical Director Email: ptptsbyi@rad.net.id |
DIRECTORS
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Name : |
Mr.
R Ramaswamy |
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Designation : |
Chairman
and Director |
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Address : |
247
B, Alagesan Road, Sai Baba Colony, Coimbatore-641011, Tamilnadu |
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Date of Birth/Age : |
12.03.1939 |
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Date of Appointment : |
11.05.1999 |
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Name : |
Mr.
Y Shivaram Prasad |
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Designation : |
Full
Time Executive Director |
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Address : |
22,
West Club Road, Race Course, Coimbatore-641018, Tamilnadu |
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Date of Birth/Age : |
11.11.1964 |
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Qualification : |
B.E.
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Experience : |
15
years |
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Date of Appointment : |
07.08.1989 |
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Other Directorships : |
Servalakshmi
Paper and Boards Private Limited Danalakshmi
Paper Mills Private Limited Techno
Spin Private Limited |
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Name : |
Mrs.
Shobana S Prasad |
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Designation : |
Director |
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Address : |
22,
West Club Road, Race Course, Coimbatore-641018, Tamilnadu |
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Date of Birth/Age : |
18.06.1966 |
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Date of Appointment : |
07.08.1989 |
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Name : |
Mrs.
Nirupa Sriramulu |
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Designation : |
Director |
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Address : |
247
B, Alagesan Road, Sai Baba Colony, Coimbatore-641011, Tamilnadu |
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Date of Birth/Age : |
23.03.1969 |
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Date of Appointment : |
07.08.1989 |
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Name : |
Mr.
V S Pattabiraman |
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Designation : |
Director |
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Name : |
Mr.
D. Muthusamy |
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Designation : |
Director |
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Address : |
Danalakshmi
Paper Mills Private Limited, Vilampattai, Nilkottai-624219, Tamilnadu |
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Date of Birth/Age : |
11.09.1949 |
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Date of Appointment : |
09.09.2000 |
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Name : |
Mr.
Balakrishnan Sriramulu |
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Designation : |
Director |
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Address : |
KG
House, 126, Arts College Road, Coimbatore-641018, Tamilnadu |
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Date of Birth/Age : |
27.04.1967 |
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Date of Appointment : |
11.05.1999 |
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Name : |
Mr.
Jorg Pesch, Dusseldorf |
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Designation : |
Nominee
of M/S. Jagenberg Papiertechnik GMBH |
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Name : |
Mr.
Wilhelm Horman Seder Austria
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Designation : |
Nominee
of M/S. May Melnhof Karton GMBH |
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Name : |
Dr.
Andreas Blaschke Austria |
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Designation : |
Nominee
of M/S. Mayr Melnhof Karton GMBH |
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Name : |
Mr.
V M Ketkar |
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Designation : |
Nominee
of Industrial Credit and Investment Corporation of India Limited |
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Name : |
Mr.
B R Shah |
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Designation : |
Nominee
of Indus Venture Management Limited Mauritius
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MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
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Jagenberg Papier Technikm
GMBH, Germany |
351829 |
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Y Shivaram Prasad |
46517 |
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R Ramaswamy Industries |
482961 |
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Nirupa Sriramaulu |
100 |
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Shobana S Prasad |
568256 |
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Shobana S Prasad for Master
Sriman Ram Prasad Y. Shivaramprasad |
87796 |
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Mr. R. Jeevanlatha |
250440 |
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R. Ramaswamy HUF |
758451 |
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Mr. B. Sriramalu |
100 |
BUSINESS DETAILS
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Line of Business : |
Import,
Export and Manufacture and sale of
paper making machinery and it’s spares and accessories |
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Products : |
Components
and Spares |
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Exports to : |
Germany,
Holland, Sweden, Indonesia, Italy, Malaysia and Turkey |
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Imports from : |
Germany
or Sweden (50%), Singapore or Japan or UK or Canada (50%) |
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Terms : |
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Selling : |
L/C
+ Documents through Bank |
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Local : |
Contract
+ Credit Upto 15 days |
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Purchasing : |
L/C
+ Suppliers’ Credit Upto 60 Days |
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Local : |
Contract + Credit : 30 / 45 days |
PRODUCTION STATUS
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Particulars |
Unit |
Actual Production |
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Paper Machinery / Parts |
Qty |
205 |
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sets |
41 |
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Pulp Mill Equipments |
Nos |
9 |
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Finished House Equipments |
Nos |
15 |
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Others |
Nos |
166 |
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Erection Receipts |
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Drying Cylinders |
Nos |
113 |
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Graded C. I. Castings |
Kgs. |
62544.08 |
GENERAL INFORMATION
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Suppliers : |
·
Siemens Limited,
Coimbatore/Siemens, Germany ·
Festo Controls
Limited, Coimbatore ·
Shanthi Gears Limited,
Coimbatore |
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Customers : |
·
Tamilnadu
Newsprint Limited -
Trichy District,
Tamilnadu, India ·
Sri Venkatesa Paper
and Boards Limited -
Udumalpet, Tamilnadu,
India ·
Shreyans Paper Mills
Limited ·
- Punjab, India |
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No. of Employees : |
250
Totally (Group about 1400 including subject) |
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Banker 1 : |
Indian
Overseas Bank |
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Branch Address: |
Ramalinga
Nagar, Coimbatore-641011, Tamilnadu, India |
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Banker 2 : |
State
Bank of India |
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Branch Address: |
Ganapathy,
Coimbatore-641012, Tamilnadu, India |
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Banker 3 : |
State
Bank of India |
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Branch Address: |
Commercial
Branch, 1443 Trichy Road, Coimbatore-641018, Tamilnadu,
India |
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Facilities : |
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Auditors : |
T
Nagarajan & Company Chartered
Accountants |
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Address: |
Uppilipalayam,
Coimbatore- 641015, Tamilnadu, India |
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Associates/ Group
Companies : |
·
Servall Engineering
Industries lIMITED ·
Servall Engineering
Foundry Private Limited ·
Dhanlakshmi Paper
Mills Limited ·
Technospin Private
Limited ·
Servalakshmi Paper and
Boards Private Limited ·
* Monarch Machine
Tools Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
shares |
10/- |
Rs. 30.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2546450 |
Equity
shares |
10/- |
Rs. 25.464 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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25.465 |
25.465 |
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2] Share Application Money |
|
3.295 |
3.295 |
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3] Reserves & Surplus |
|
105.367 |
98.064 |
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NETWORTH
|
|
134.127 |
126.824 |
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LOAN FUNDS |
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1] Secured Loans |
|
68.656 |
88.570 |
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2] Unsecured Loans |
|
4.275 |
4.275 |
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TOTAL
BORROWING
|
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72.931 |
92.845 |
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DEFERRED TAX LIABILITIES |
|
19.812 |
17.053 |
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TOTAL
|
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226.870 |
236.722 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
|
117.084 |
113.542 |
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Capital work-in-progress
|
|
0.489 |
9.556 |
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INVESTMENT
|
|
16.056 |
16.056 |
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DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
|
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90.305 |
123.806 |
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Sundry Debtors
|
|
25.601 |
48.288 |
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Cash & Bank Balances
|
|
5.778 |
6.567 |
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Other Current Assets
|
|
0.000 |
0.000 |
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Loans & Advances
|
|
35.202 |
37.965 |
Total Current Assets
|
|
156.886
|
216.626 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
|
74.693 |
122.339 |
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Provisions
|
|
1.307 |
0.407 |
Total Current Liabilities
|
|
76.000
|
122.746 |
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Net Current
Assets
|
|
80.886
|
93.880 |
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MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
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Deferred Revenue Expenditure
|
|
12.355 |
3.688 |
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TOTAL
|
|
226.870 |
236.722 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
|
NA
|
NA |
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Net Profit Margin
(PBT/Sales) |
(%) |
|
NA
|
NA |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
|
NA
|
NA |
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Return on Investment (ROI)
(PBT/Networth) |
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NA
|
NA |
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Debt Equity Ratio
(Total Liability/Networth) |
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|
1.11
|
1.70 |
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Current Ratio
(Current Asset/Current
Liability) |
|
|
2.06
|
1.76 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for creation or modification of
charges
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Name of the company |
SERVALL
ENGINEERING WORKS PRIVATE LIMITED |
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Presented By |
SERVALL
ENGINEERING WORKS PRIVATE LIMITED |
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1) Date and description of
instrument creating the change |
Letter
of hypothecation dated 10.04.2000 executed by Servall Engineering Works
Limited (now known as Servall Engineering Works Private Limited) (therein and
hereinafter referred to as the borrower) in favour of Indian Overseas Bank,
(therein and hereinafter referred to as IOB) |
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2) Amount secured by the
charge/amount owing on the securities of charge |
Working capital facility of Rs.66.000 millions as
follows :
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3) Short particular of the
property charged. If the property acquired is subject to charge, date of the
acquired of the property should be given |
Hypothecation
of raw materials, work in progress, finished goods, spares and receivables. Documents
of title to goods/ hypothecation of stocks, accepted hundies. First
charge on the block assets, other than the assets having exclusive charge on
pari passu basi with SBI. |
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4) Gist of the terms and
conditions and extent and operation of the charge. |
The company should not avail any finance from other
financial institutions/banks/finance companies without prior approval of
existing banks. Company should undertake in writing to maintain
minimum current ratio 1.33:1 at all times. Company should undertake not to make fresh
investments/loan to its associate companies without approval from the bank. |
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5) Name and Address and
description of the person entitled to the charge. |
Indian Overseas Bank Ramalinya Nagar Branch, Saibaba Colony Coimbatore-641011 |
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6) Date and brief description of instrument
modifying the charge |
Joint
deed of hypothecation dated 01.03.2004 |
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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. |
Now
the total facility of Rs.118 millions were further modified by executing a
joint deed of hypothecation dated 01.03.2004 with Indian Overseas Bank (IOB)
and State Bank of India na d the security for the above limits are as follows
: For
the working capital facility of Rs.94.5 millions- first charge on the entire
current assets of the company on pari passu basis with SBI For
the term loan facility of Rs.4.5 millions and Rs.19 millions exclusive first
charge on the assets acquired/ to the acquired out of the term loan and a
first charge on other block assets of the company on pari passu basis with
SBI. |
|
Corporation
identity number or foreign company registrations number of the company |
U52110TZ1989PTC2498 |
|
Name
of the company |
SERVALL
ENGINEERING WORKS PRIVATE LIMITED |
|
Address |
10-Z,
Bharathi Nagar, 7th Cross, Sai Baba Colony, Coimbatore, Tamilnadu |
|
This
Form is for |
Modification
of charge |
|
Type
of Charges |
Immovable
Property Book
debts Movabke
property |
|
Particular
of the charge holder |
Indian
Overseas Bank Ramalinya
Nagar Branch, Saibaba
Colony Coimbatore-641011 |
|
Nature
or description of the instrument creating charge |
Charge
created on 08.05.2000 against Hypothecation Deed dated 10.04.2000 for Rs.66
millions has been modified on various dates. Present charge takes the total
charge to Rs.171.5 millions from Rs.126.5 millions for the additional term
loan of Rs.45 millions sanctioned by IOB and concerned documents executed on
09.09.2006 |
|
Date
of the instrument creating charge |
09.09.2006 |
|
Amount
Secure by the charge |
Rs.171.500
millions |
|
Brief
of the principal terms and conditions and extent and operation of the charge |
Rate
of Interest : 11.00% Terms
of Repayment : Repayable in 60 monthly installments of Rs.7.500 millions each
commencing from 01.10.2007 Margin
: 25% Extent
and Operation of charge : Total
charge on both fixed and current assets of the company increased from
Rs.126.5 millions to Rs.171.5 millions |
|
Modification
charge Charge
identification number of the charge to be modified |
90001061 |
|
Particulars
of the Property charged |
Land,
Building, Machinery and Current asssets in Billichi Village in Coimbatore
district referred to in letter of confirmation dated 09.09.2006 |
|
Particulars
of present modification |
Total
facilities increased from Rs.126.5 millions to Rs.171.5 millions by term loan
no.4 for Rs.45.0 millions, all other limits remaining the same. |
Operation
Total
Sales during the year was reasonably good. Net Sales during the year under
consideration was Rs. 245.400 millions against Rs. 285.200 millions during the
previous year. export turnover was Rs. 61.279 millions. Net Profit was Rs.
4.130 millions
Finance
The
company has availed term loan to the extent of Rs. 4.500 million from Indian
Overseas Bank and Open Cash Credit facilities were enhanced from Rs. 27.000
millions to Rs. 36.000 millions by Indian Overseas Bank. Enhancement of Working
Capital limit from Rs. 18.000 millions by State Bank of India is under Consideration.
-
Exports (30%) Part of production
Has
Absorbed Technology From:-
·
Jagenberg Papiertechnik
GMBH, Germany
·
Mayr Melnhof Karton
GMBH, Austria
-
Subject generally does
not provide information
Fixed Assets :
Goodwill
Land
Buildings
Plant
And Machinery
Furniture
And Fittings
Electrical
Fitting
Vehicles
Temporary
Wooden Structures
Office
Appliances
As per the Website:
Corporate Profile
Subject
has been a major partner in the paper and pulp industry worldwide, answering
its need for high-performance, futuristic machinery. Subject can pride itself
on achieving a unique status of a “complete manufacturer”. It has successfully
executed complete paper machinery upto 250 TPD capacity. This electrifying
growth has been spurred by the inherent quest for excellence in Quality, Design
and Engineering. At Subject, the quest for excellence is never-ending, driving
the company to innovate, upgrade and develop.
Quality Policy
Subject’s
Quality Policy states, “Total customer satisfaction through customer specific,
reliable products and timely services”. Subject believes in “value-added
quality”, going beyond the ordinary boundaries of quality to offer the customer
something more substantial. Be it top-level management or shop floor personnel,
raw material sourcing or packaging, the need to make quality processes an
intrinsic part of the organization is appreciated and practiced by each member
of the Subject family.
Each
section at Subject has drawn up its own quality policy and objectives based
upon the company’s 3C formula: Continuous Improvement, Customer Satisfaction
and Compliance with legal requirements. Regular reviews of the performance by
management are conducted to evaluate achievements.
Subject offers you Total Solutions: Total Project management and turnkey solutions, right
from Concept and Design to Engineering, Erection, Execution and Commissioning.
We also specialise in dismantling and custom rebuilding of existing paper
plants and machinery.
PRODUCTS
Subject
manufactures the entire range of stock preparation system for treatment of
waste paper, starting from density pulper upto Fine Screening and cleaning
equipment. Under an agreement with M/s. Cellwood Machinery AB, Sweden, Subject
also manufactures components for Krima Hot Dispersing Systems and Disc Filters.
Complete
Range of Equipments from Pulper to Finishing House
State
of the art technology and equipment for processing different raw materials and
for end-products like
o
Newsprint
o
Writing & Printing
Grades
o
Brown / Kraft
Varieties
o
Folding Box Boards
History:
-
April 4, 1989, Under the name of “SERWELL REIHANSAL PRIVATE LIMITED”
-
Name Changed to “SERVALL ENGINEERING WORKS PRIVATE LIMITED’’ from 19th
March
1998
-
Took Over the engineering division of Servall Engineering Industries Limited,
Pursuant to
approval date: 13.11.1998, from High Court
of Chennai
- The Word “Private” Deleted from 26th
March 1999
-Reconverted
to Private Limited During 2001-2002.
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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
|
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/normal. |
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 |