MIRA
INFORM REPORT
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Report Date : |
13.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SKH METALS LIMITED |
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Formerly Known As : |
MARK AUTO INDUSTRIES LIMITED |
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Registered Office : |
Plot No. 2, Maruti Joint Venture Complex, Gurgaon – 122015, Haryana |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.03.1986 |
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Com. Reg. No.: |
05-23655 |
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CIN No.: [Company
Identification No.] |
U74130HR1986PLC023656 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKM01832F |
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PAN No.: [Permanent
Account No.] |
AABCM1246N |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturers of Pressed Sheet Metal Components, Silencers Mufflers
Exhaust Pipes and Sub-Assemblies. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 940000 |
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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.
The company is progressing well. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long-run. |
LOCATIONS
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Registered Office / Factory : |
Plot No. 2, Maruti Joint Venture Complex, Gurgaon – 122015, |
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Tel. No.: |
91-124-2343134 |
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Mobile No.: |
91-9899237874 |
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Fax No.: |
91-124-2340551 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rajendra P Goyal |
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Designation : |
Chairman |
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Address : |
10 Jayshree Building, |
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Date of Birth/Age : |
01.12.1923 |
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Date of Appointment : |
27.09.1989 |
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Name : |
Mr. Kallol Roy |
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Designation : |
Managing Director |
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Address : |
MM – 12, |
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Date of Birth/Age : |
02.04.1957 |
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Date of Appointment : |
04.01.2000 |
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Name : |
Mr. Rattan Kapur |
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Designation : |
Director |
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Address : |
S – 430, Greater Kailash – II, |
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Date of Birth/Age : |
20.10.1952 |
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Date of Appointment : |
25.10.1986 |
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Name : |
Mr. S. Natarajan |
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Designation : |
Director |
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Address : |
2608 Sector – D, Pocket – 2, Vasant Kunj, |
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Date of Birth/Age : |
27.05.1933 |
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Date of Appointment : |
27.09.1987 |
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Name : |
Mr. Amitav Nandy |
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Designation : |
Director |
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Address : |
C 5/32, Vasant Kunj, |
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Date of Birth/Age : |
30.06.1940 |
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Date of Appointment : |
14.09.1992 |
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Name : |
Mr. R. Dayal |
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Designation : |
Director |
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Address : |
B – 52, Pilot Courts Essel Toe, M |
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Date of Birth/Age : |
05.06.1952 |
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Date of Appointment : |
19.12.2001 |
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Name : |
Mr. Ashok Kapur |
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Designation : |
Director |
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Address : |
B – 5, Chirag Enclave, |
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Date of Birth/Age : |
24.06.1946 |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. Sanjay Mohan Labroo |
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Designation : |
Director |
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Address : |
Khasra – 79/9, 79/10, Near Kishangarh, Behind Sector – D – III, Vasant
Kunj, New Delhi – 110070, India |
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Date of Birth/Age : |
05.10.1961 |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. Hirofumi Nagao |
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Designation : |
Director |
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Address : |
Room No. 307, Hotel Ashok, Chanakyapuri, |
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Date of Birth/Age : |
10.06.1953 |
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Date of Appointment : |
14.05.2005 |
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Name : |
Mr. Jagdish Khattar |
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Designation : |
Director |
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Address : |
N – 128, |
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Date of Birth/Age : |
18.12.1942 |
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Date of Appointment : |
24.05.2005 |
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Name : |
Mr. Aroon Purie |
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Designation : |
Director |
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Address : |
6, Palam Marg, Vasant Vihar, |
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Date of Birth/Age : |
29.12.1944 |
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Date of Appointment : |
02.01.2006 |
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Name : |
Mr. Sunandan Kapur |
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Designation : |
Managing Director |
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Address : |
B – 5, Chirag Enclave, |
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Date of Birth/Age : |
21.08.1974 |
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Date of Appointment : |
01.01.2007 |
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Name : |
Mr. Sudam Maitra |
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Designation : |
Director |
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Address : |
4155, Sector – B, Pocket – 5 & 6, Vasant Kunj, |
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Date of Birth/Age : |
01.06.1955 |
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Date of Appointment : |
14.05.2005 |
KEY EXECUTIVE
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Name : |
Mr. Yogesh Goel |
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Designation : |
Company Secretary |
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Address : |
236 pocket C – 8, Sector – 8, Rohini, |
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Date of Birth/Age : |
09.09.1972 |
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Date of Appointment : |
15.12.1997 |
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Name : |
Mr. Shiv Ram Singh |
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Designation : |
Company Secretary |
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Address : |
Inderpur, Kaithouli, Mainpuri – 209720, |
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Date of Birth/Age : |
02.02.1973 |
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Date of Appointment : |
02.04.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Bodies corporate |
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52.76 |
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Directors of relatives of directors |
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46.77 |
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Other top fifty shareholders |
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0.47 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Pressed Sheet Metal Components, Silencers Mufflers
Exhaust Pipes and Sub-Assemblies. |
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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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Components / Exhaust Systems / Sub Assemblies |
Nos. |
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2051000 |
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Tubes |
M. T. |
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|
7500 |
GENERAL INFORMATION
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Suppliers : |
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Bankers : |
Mizuho Corporate Bank Limited 4th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New
Delhi – 110001, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Oberoi Sood and Associates Chartered Accountants |
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Address : |
606, Vishal Bhavan, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
5,430,000 |
Equity Shares |
Rs. 10/- each |
Rs. 54.300
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 |
54.300 |
54.300 |
54.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
182.106 |
152.430 |
137.941 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
236.406 |
206.730 |
192.241 |
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LOAN FUNDS |
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1] Secured Loans |
423.659 |
295.062 |
195.126 |
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2] Unsecured Loans |
30.433 |
43.336 |
55.582 |
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TOTAL BORROWING |
454.092 |
338.398 |
250.708 |
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DEFERRED TAX LIABILITIES |
54.637 |
45.107 |
43.438 |
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TOTAL |
745.135 |
590.235 |
486.387 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
475.745 |
366.108 |
347.748 |
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Capital work-in-progress |
118.507 |
72.007 |
0.796 |
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INVESTMENT |
19.148 |
19.147 |
29.742 |
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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 |
128.680
|
137.256 |
101.127 |
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Sundry Debtors |
177.583
|
183.344 |
140.435 |
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Cash & Bank Balances |
1.570
|
17.178 |
23.660 |
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Other Current Assets |
0.028
|
0.115 |
0.185 |
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Loans & Advances |
76.322
|
45.329 |
39.496 |
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Total
Current Assets |
384.183
|
383.222 |
304.903 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
247.794
|
239.221 |
194.886 |
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Provisions |
7.907
|
13.844 |
6.230 |
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Total
Current Liabilities |
255.701
|
253.065 |
201.116 |
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Net Current Assets |
128.482
|
130.157 |
103.787 |
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MISCELLANEOUS EXPENSES |
3.253 |
2.816 |
4.314 |
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TOTAL |
745.135 |
590.235 |
486.387 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1457.488 |
1415.229 |
1147.742 |
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Other Income |
63.728 |
62.350 |
52.361 |
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Total Income |
1521.216 |
1477.579 |
1200.103 |
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Profit/(Loss) Before Tax |
44.180 |
42.034 |
31.756 |
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Provision for Taxation |
14.504 |
20.104 |
16.490 |
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Profit/(Loss) After Tax |
29.676 |
21.930 |
15.266 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
NA |
37.513 |
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Other Earnings |
NA |
NA |
0.000 |
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Total Earnings |
NA |
NA |
37.513 |
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Imports : |
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Raw Materials |
NA |
NA |
179.806 |
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B. O. C. |
NA |
NA |
7.145 |
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Stores & Spares |
NA |
NA |
0.310 |
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Others |
NA |
NA |
8.146 |
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Total Imports |
NA |
NA |
195.407 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
796.611 |
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Personal Expenses |
0.000 |
0.000 |
113.794 |
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Raw Material Consumed |
1136.809 |
1056.210 |
0.000 |
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Purchases made for re-sale |
8.988 |
8.366 |
0.000 |
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Increase/(Decrease) in Finished Goods |
3.384 |
[2.227] |
0.000 |
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Salaries, Wages, Bonus, etc. |
122.803 |
113.870 |
0.000 |
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Managerial Remuneration |
2.778 |
3.198 |
0.000 |
|
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Payment to Auditors |
0.300 |
0.300 |
0.000 |
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Interest |
19.213 |
12.766 |
27.022 |
|
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Insurance Expenses |
2.286 |
1.973 |
0.000 |
|
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Power & Fuel |
31.799 |
27.837 |
0.000 |
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Depreciation & Amortization |
52.924 |
76.912 |
78.068 |
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Miscellaneous Expenses |
0.000 |
0.000 |
4.809 |
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Other Expenditure |
95.752 |
136.340 |
148.044 |
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Total Expenditure |
1477.036 |
1435.545 |
1168.348 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.95
|
1.48 |
1.27 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.03
|
2.97 |
2.77 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.14
|
5.61 |
4.87 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.20 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.00
|
2.86 |
2.35 |
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Current Ratio (Current Asset/Current Liability) |
|
1.50
|
1.51 |
1.52 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land Lease Hold
- Land Free Hold
- Building
- Plant and Machinery
- Furniture and Fixture
- Office Equipments
- Vehicles
- Computers
Contingent Liabilities [As on 31.03.2004]
- Guarantees issued by Bank on behalf of
the company Rs. 15.887 Millions
- Letters of Credit issued by Bank /
Financial Institutions of behalf of the company Rs. 8.397 Millions
- Future payments of rentals on account
of movable assets taken on lease Rs. 54.940 Millions
- The Directors, Town and Country
Planning Government of Haryana has claimed External Development Charges
amounting to Rs. 7.193 Millions plus penal interest thereon, relating to
company’s property situated at Village Begumpur Khatola, 39th
Milestone, Delhi Jaipur Highway Gurgaon. The company has filed a special
leave petition with the Hon’ble Supreme Court in which leave has been
granted and the company was directed to deposit 25 % of the demand within
four weeks as per Hon’ble Supreme Court order dated 24.03.2003 and the
same has been paid.
- Excise Authorities have raised a demand
of Rs. 0.698 Millions on account of CENVAT credit taken by the company on
capital goods supplied by Maruti Udyog Limited on free of cost basis
imported under EPCG Scheme. Against above demand appeal has been failed
before Joint Commissioner, order is awaited.
- Demand from Income Tax Department for
various amounting to Rs. 4.492 millions.
Bankers Charges
Report as per Registry
|
Name of the company |
MARK AUTO
INDUSTRIES LIMITED |
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Presented By |
SHRI YOGESH GOEL, Company Secretary |
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1) Date and description of instrument creating the change |
30.07.2005 Deed
of Hypothecation executed by the company in favour of Maruti Udyog
Limited |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 16.381
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 |
Tools and Dies
for following components Penal Fuel Tank
Lower Panel Fuel Tank
Upper Draw Tool for Panel
Upper Esteem Euro – III Panel Checker for
Panel Fuel Tank Upper Esteem Euro – III, Panel Checker for
Fuel Tank Lower Panel Checker for
Fuel Tank Upper |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The lender shall
have the first charge on the tools and dies so hypothecated. The borrower
shall keep the hypothecated tools and dies properly and fully insured against
all normal risks including and not limited to loss by burglary or theft,
malicious damage, loss by riots and civil commotion etc, and shall keep the
insurance policy alive until the entire advance is adjusted. The borrower
shall keep the hypothecated tools and dies in good conditions and it would be
used only for the manufacture of components required to be supplied to
lender. The borrower
shall keep tools and dies intact and not part with its possession. Lease
exchange or sell to any other party. The hypothecation
will cease to be effective after the borrower has repaid the entire amount
together with interest and other charges towards the credit sale of the tools
and dies by way of adjustment against the supplies and / or otherwise. |
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5) Name and Address and description of the person entitled to the charge. |
Maruti Udyog
Limited 11th Floor,
Jeevan Prakash, 25-K G Marg |
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6) Date and brief description of instrument modifying the charge |
-- |
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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. |
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This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U74130HR1986PLC023656 |
|
Name of the
company |
SKH METALS LIMITED |
|
Address of the
registered office or of the principal place of business in |
Plot No. 2, Maruti Joint Venture Complex, Gurgaon – 122015, Haryana |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
Mizuho Corporate Bank Limited 4th Floor, East Tower, Sood Tower, 25, Barakhamba Road, New
Delhi – 110001, India |
|
Nature of description
of the instrument creating or modifying the charge |
LS-1 [Agreement of Loan for Term Loan Limits for secured advance] LS – 2 [Agreement of Hypothecation of Plant and Machinery] |
|
Date of
instrument Creating the charge |
21.02.2007 |
|
Amount secured by
the charge |
Rs. 200.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest MIBOR Linked
interest shall be charged on the outstanding in the account opened in respect
of aforesaid facility at such rates as may be determined by the bank from
time to time at the bank’s sole discretion on the basis of any internal
credit rating accorded to the borrower or otherwise provided that the rates
shall be subject to changes in the prime Lending rates of the Bank and
changes in interest rates prescribed by RBI from time to time. Terms of
repayment Tenor of the loan
is 5 years including 6 months moratorium. Loan will be paid in 18 equal
quarterly installments starting from the end of the nine month from the date
of first drawdown. Margin The company shall
keep the plant and machinery in goods conditions. Extent and
operation of the charge The charge shall
operate as security for the repayment in installments of Rs. 200.000 Millions
and all other monies at any time payable by the borrower to the bank under or
in respect of aforesaid credit facilities granted or to be granted to the
borrower. Others This is second
pari passu charge on current and future plant and machinery created in favour
of Bank. |
|
Short particulars
of the property charged |
All present and
future plant and machinery of the borrower including documents of title to
the plant and machinery and present plant and machinery listed in schedule hereunto
and all future machinery belonging to or in possession of or under control of
the borrower wherever lying stored and kept in possession of borrower or bank
or any third party whether in India or elsewhere throughout the world. |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.47 |
|
|
1 |
Rs.80.08 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
64 |
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/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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|