MIRA
INFORM REPORT
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Report Date : |
14.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
MARUTHI
ELECTRODES PRIVATE LIMITED |
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Registered Office : |
# 135,
5th Floor, Maruthi Tower, Airport Road, Kodihalli, Bangalore –
560008, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.07.1983 |
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Com. Reg. No.: |
08-5415 |
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CIN No.: [Company
Identification No.] |
U33112KA1983PTC005415 |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers
of Welding Electrodes. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
50000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track.
Directors are reported as experience and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
# 135,
5th Floor, Maruthi Tower, Airport Road, Kodihalli, Bangalore –
560008, Karnataka, India |
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Tel. No.: |
91-80-25275848 |
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Fax No.: |
91-80-25266289
/ 25097615 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. G.
Jayaram Reddy |
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Designation : |
Managing
Director |
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Name : |
Mr. G.
J. Raja |
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Designation : |
Director
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BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Welding Electrodes. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
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Welding Electrodes |
Tons |
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4000 |
GENERAL
INFORMATION
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No. of Employees : |
About
50 |
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Bankers : |
Canara
Bank No.
19/7, Maruthi Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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Banking Relations : |
Satisfactory
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Auditors : |
K.
Sudhakar Chartered
Accountants #
12,13, 1st Floor, Reddy Building, J C Road, Bangalore – 560002,
Karnataka, India |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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40,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 0.400 Millions |
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16,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1.600 Millions |
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Total |
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Rs. 2.000
Millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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40,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 0.400 Millions |
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16,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1.600 Millions |
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Total |
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Rs. 2.000
Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.000 |
2.000 |
2.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
10.857 |
9.678 |
9.058 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12.857 |
11.678 |
11.058 |
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LOAN FUNDS |
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1] Secured Loans |
16.336 |
12.594 |
7.821 |
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2] Unsecured Loans |
3.826 |
6.322 |
0.000 |
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TOTAL BORROWING |
20.162 |
18.916 |
7.821 |
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DEFERRED TAX LIABILITIES |
0.854 |
0.944 |
0.862 |
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TOTAL |
33.873 |
31.538 |
19.741 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13.831 |
8.493 |
9.294 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
5.774
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9.607 |
8.223 |
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Sundry Debtors |
22.512
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23.449 |
14.149 |
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Cash & Bank Balances |
0.227
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1.653 |
0.186 |
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Other Current Assets |
5.154
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5.312 |
4.136 |
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Total Current Assets |
33.667
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40.021 |
26.694 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
12.327
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16.663 |
15.975 |
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Provisions |
1.298
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0.313 |
0.272 |
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Total Current Liabilities |
13.625
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16.976 |
16.247 |
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Net Current Assets |
20.042
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23.045 |
10.447 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
33.873 |
31.538 |
19.741 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
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31.03.2004 |
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Sales Turnover [including other income] |
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70.718 |
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Profit/(Loss)
Before Tax |
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0.888 |
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Provision
for Taxation |
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0.303 |
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Profit/(Loss)
After Tax |
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0.585 |
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Total
Expenditure |
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69.830 |
KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
NA
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NA |
0.83 |
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Net
Profit Margin (PBT/Sales) |
(%) |
NA
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NA |
1.26 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
NA
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NA |
2.47 |
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Return
on Investment (ROI) (PBT/Networth) |
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NA
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NA |
0.08 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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2.63
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3.07 |
2.18 |
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Current
Ratio (Current
Asset/Current Liability) |
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2.47
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2.36 |
1.64 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Office Equipments
- Plant and Machinery
- Electrical Installation
- Laboratory Equipments
- Generator
- Furniture
- Vehicles
- Computer
- Pollution Control Equipments
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Name of the company |
MARUTHI ELECTRODES PRIVATE LIMITED |
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Presented By |
MARUTHI ELECTRODES PRIVATE LIMITED and
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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1) Date and description of instrument creating the change |
12.07.1996
Regd. On 30.07.1996 Agreement
of cash Credit Agreement
for CDB/SDB/LCDB Advance Agreement
for ILC Counter
Indemnity Agreement
re : Collateral Security All
the above pertain to the same charge. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
6.600 Millions [OCC
Rs. 3.000 Millions : BE Rs. 1.5 Millions; CDB.SDB Rs. 0.5 Millions, ILC/FLC
Rs. 0.6 Millions Bank guarantee Rs. 1.000 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 |
Hypothecation
of whole of present and future stock of raw material, finished goods, work in
progress and in transit, book debts, outstanding of cheques belonging to the
company; Collateral security leasehold rights of the factory land and
buildings. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest
@ 18.75 % p.a. Repayable
on demand |
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5) Name and Address and description of the person entitled to the charge. |
Canara
Bank No.
19/7, Maruthi Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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6) Date and brief description of instrument modifying the charge |
06.01.2006
Supplemental
common hypothecation agreement |
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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. |
By the
above, the amount secured by charge in respect of movables comprising stocks,
book debts, plant, machineries, stores, spares both present and future shall
cover the present modified limits of Rs. 23.000 Millions described hereunder
:
The
credit limits are additionally secured by machineries comprising 2 Sets of
CNC CO2 Wire drawling and Copper Coating Plant. All
other terms and conditions remain unchanged.
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Name of the company |
MARUTHI ELECTRODES PRIVATE LIMITED |
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Presented By |
MARUTHI ELECTRODES PRIVATE LIMITED and
Canara Bank No. 19/7, Maruthi
Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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1) Date and description of instrument creating the change |
12.07.1996
Regd. On 30.07.1996 Agreement
of cash Credit Agreement
for CDB/SDB/LCDB Advance Agreement
for ILC Counter
Indemnity Agreement
re : Collateral Security All
the above pertain to the same charge. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
6.600 Millions [OCC
Rs. 3.000 Millions : BE Rs. 1.5 Millions; CDB.SDB Rs. 0.5 Millions, ILC/FLC
Rs. 0.6 Millions Bank guarantee Rs. 1.000 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 |
Hypothecation
of whole of present and future stock of raw material, finished goods, work in
progress and in transit, book debts, outstanding of cheques belonging to the
company; Collateral security leasehold rights of the factory land and
buildings. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest
@ 18.75 % p.a. Repayable
on demand |
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5) Name and Address and description of the person entitled to the charge. |
Canara
Bank No.
19/7, Maruthi Mansion, Cunningham Road, Bangalore – 560052, Karnataka, India |
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6) Date and brief description of instrument modifying the charge |
05.01.2006 No
instrument – Letter re : Extension of Equitable Mortgage |
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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. |
By the
above, the extent of charge in respect of the immovable property comprising
land together with building and other structures [existing and to be
constructed] situate at Sy. No. 71, bearing Plot No. 12, Doddanekundi Ii
Industrial Area, Bangalore, bounded on the North by Plot No 11, South by Plot
No. 13, East by Road, West by Private Land measuring 2 acres, stands
increased from Rs. 18.500 Millions to Rs. 23.000 Millions |
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
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Indian Rupees |
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US
Dollar |
1 |
Rs.44.16 |
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UK
Pound |
1 |
Rs.86.00 |
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Euro |
1 |
Rs.57.56 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed
to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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