MIRA
INFORM REPORT
|
Report Date : |
20.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
ELKAY TELELINKS LIMITED |
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Registered Office : |
5/66, K. C. House, Wea Padam Singh Road, Karol Bagh, New Delhi –
110005 |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.09.1986 |
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Com. Reg. No.: |
55-25530 |
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CIN No.: [Company
Identification No.] |
U31101DL1986PLC025530 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE03121G |
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PAN No.: [Permanent
Account No.] |
AAACE0562E |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Telecom Cables |
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 530000 |
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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 experienced 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 : |
5/66, K. C. House, Wea Padam Singh Road, Karol Bagh, New Delhi –
110005, India |
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Tel. No.: |
91-11-25716150 |
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Fax No.: |
91-11-25752073 |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. 141, Sector-24, |
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Tel. No.: |
91-129-5021914, 5021915 |
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Fax No.: |
91-129-2231030 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Hari Ram Gupta |
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Designation : |
Director |
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Address : |
H No. -1178, Sector – 15, |
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Date of Birth/Age : |
04.02.1945 |
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Date of Appointment : |
22.09.1986 |
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Name : |
Mr. Mahender Garg |
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Designation : |
Director |
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Address : |
H No. -1226, Sector – 15, |
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Date of Birth/Age : |
15.09.1958 |
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Date of Appointment : |
24.10.1986 |
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Name : |
Mr. Mukesh Aggarwal |
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Designation : |
Director |
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Address : |
H No. -1/C/4, Sector – 11, |
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Date of Birth/Age : |
03.07.1968 |
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Date of Appointment : |
22.03.1988 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Ramkaran Dass – HUF |
|
10580 |
|
Ram Bilas – HUF |
|
30230 |
|
Praven Kumar |
|
36300 |
|
Anil Kumar |
|
16750 |
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Mahender Garg |
|
14099 |
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Suresh Chand |
|
17710 |
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Pankaj garg |
|
10946 |
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Shashi Aggarwal |
|
41935 |
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Sunita Garg |
|
15600 |
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Lakhmi Chand Garg – HUF |
|
35060 |
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Sadhu Sons India Private Limited |
|
20600 |
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Sadhu Ram Gupta |
|
14135 |
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Sarla Garg |
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8180 |
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Nikita Garg |
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28400 |
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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 |
|
19.25 |
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Directors of relatives of directors |
|
80.75 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Telecom Cables |
GENERAL INFORMATION
|
Bankers : |
Canara Bank 8 A, Nehru
Ground, NIT, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. K. Jain Chartered Accountants |
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Address : |
Sensons, Kothi No. 667, Sector – 28, |
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Associates/Subsidiaries : |
Sadhu Sons India Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500,000 |
Equity Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
454,720 |
Equity Shares |
Rs. 100/- each |
Rs. 45.472
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 |
|
45.472 |
45.472 |
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2] Share Application Money |
|
28.015 |
22.415 |
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3] Reserves & Surplus |
|
60.066 |
54.906 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
133.553 |
122.793 |
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LOAN FUNDS |
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1] Secured Loans |
|
65.760 |
94.983 |
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2] Unsecured Loans |
|
27.801 |
15.633 |
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TOTAL BORROWING |
|
93.561 |
110.616 |
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DEFERRED TAX LIABILITIES |
|
4.160 |
5.132 |
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TOTAL |
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231.274 |
238.541 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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51.192 |
52.092 |
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Capital work-in-progress |
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0.000 |
1.493 |
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INVESTMENT |
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0.000 |
0.000 |
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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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67.680 |
65.093 |
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Sundry Debtors |
|
141.895 |
141.122 |
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Cash & Bank Balances |
|
10.474 |
5.729 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
19.655 |
12.425 |
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Total
Current Assets |
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239.704 |
224.369 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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59.622 |
39.413 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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59.622 |
39.413 |
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Net Current Assets |
|
180.082 |
184.956 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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231.274 |
238.541 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
|
399.216 |
489.400 |
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Other Income |
|
4.175 |
2.969 |
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Total Income |
|
403.391 |
492.369 |
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Profit/(Loss) Before Tax |
|
7.445 |
10.313 |
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Provision for Taxation |
|
2.284 |
4.370 |
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Profit/(Loss) After Tax |
|
5.161 |
5.943 |
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Expenditures : |
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Raw Material Consumed |
|
327.478 |
406.417 |
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Consumption of stores and spares parts |
|
3.611 |
2.911 |
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Salaries, Wages, Bonus, etc. |
|
13.521 |
10.909 |
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Payment to Auditors |
|
0.062 |
0.066 |
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Interest |
|
11.268 |
12.292 |
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Insurance Expenses |
|
0.739 |
0.780 |
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Power & Fuel |
|
8.889 |
10.135 |
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Depreciation & Amortization |
|
6.397 |
7.069 |
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Other Expenditure |
|
23.981 |
31.477 |
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Total Expenditure |
|
395.946 |
482.056 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.28 |
1.21 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.86 |
2.11 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.56 |
3.76 |
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Return on Investment (ROI) (PBT/Networth) |
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0.06 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.15 |
1.22 |
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Current Ratio (Current Asset/Current Liability) |
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4.02 |
5.69 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
ELKAY TELELINKS
LIMITED |
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Presented By |
ELKAY TELELINKS
LIMITED |
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1) Date and description of instrument creating the change |
Letter evidencing
deposit of title deeds dated 05.08.2003 alongwith schedule A & B and
Guarantee Agreement dated 05.08.2003 registered on 28.08.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.70.000
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 |
Landed properties
of the company situated at Khusra No. 20/4, 6/1, 7, 9, 8, 3 measuring 22
Kanals and Marlas and Khasra No. 1/4/2, 39, 140 measuring 19 kamas 1 marla
situated at Ranhera Sector 24/25 Road, Industiral Area, Faridabad including
all building thereon and all machineries therein Corporate guarantee given by
the company in favour of Canara Bank, 8 A, Nehru Group, NIT, Faridabad |
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4) Gist of the terms and conditions and extent and operation of the charge. |
First charge on
items described above by way of equitable mortgage and the company stands as
one of the guarantee for securing various limits granted to SPL, overseas by
Canara Bank, 8 A, Nehru Group, NIT,
Faridabad |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, 8 A, Nehru Group, NIT, |
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6) Date and brief description of instrument modifying the charge |
Guarantee
agreement dated 02.03.2005 |
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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
corporate guarantee of the company stands enhanced from Rs. 70.000 Millions
to Rs. 76.000 Millions to secure various limits granted to SPL Overseas by
Canara Bank, 8 A, Nehru Group, NIT,
Faridabad Other terms and
conditions remain the same. |
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Corporate
identity number of the company |
U31101DL1986PLC025530 |
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Name of the
company |
ELKAY TELELINKS LIMITED |
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Address of the
registered office or of the principal place of business in |
5/66, K. C. House, Wea Padam Singh Road, Karol Bagh, New Delhi –
110005 |
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This form is for |
Creation of charge |
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Type of charge |
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Particular of
charge holder |
Canara Bank 8 A, Nehru
Ground, NIT, |
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Nature of
instrument creating charge |
Letter evidencing
deposit of title deeds dated 12.04.2006. supplemental common hypothecation
agreement dated 12.04.2006 |
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Date of
instrument Creating the charge |
12.04.2006 |
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Amount secured by
the charge |
Rs. 30.000
Millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
First charge on
assets to secure FLC limit of Rs. 30.000 Millions. Interest /
commission to be charged as per the norms of the bank. |
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Description of
the property charged indicating whether it is a charged on |
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Profile
Incepted in the year 1986 with the manufacture of Telecom Cables, Subject is the top ten Indian cable
manufactures producing PIJF Telecom
cables, Control cables & Instrumentation cables, dry core telecom Switch
Board cables, single core Energy cables, multi-core copper Power cables, Fire
Survival cables, Thermocouple Extension/Compensation cables, self supporting
Aerial cables, Coaxial cables and PCM
cables.
Subject is known for continuous innovation & development of new designs in
line with the updated global standards/designs. The wide acceptance, quality,
product mix & service enabled Elkay
cables to have been used and being used by all the prestigious Telecom,
Railway, Refinery, Petrochemical, Offshore oil & gas and Power sector
Projects.
Subject has strong export performance in South East Asia and
Salient Features
Minimum dependence
on sub vendors-all intermediate material processing facilities are in-house,
reducing the dependency on sub vendors which ensure timely deliveries and
dependable quality.
Minimum dependence
on sub vendors-all intermediate material processing facilities are in-house,
reducing the dependency on sub vendors which ensure timely deliveries and
dependable quality.
Supported by a
strong R & D wing, Elkay has designed & developed many highly specialised
Cables to national & international standards.
All manufacturing
facilities are ISO 9001:2000 Certified.
Cordial and
congenial working environment having absolute freedom for staff and workmen.
Supported by a strong Research & Development wing, ELKAY has
designed & developed many highly specialized cables to national &
international standards and is an exclusive.
Licenses and
accreditation
Subject has Licence Under IS
1554 & IS 694. And ISO9002 Accreditations from Underwriters Labs, Chicago-Usa for Unit 1 & British Standards Institution for
unit 2.
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.40.33 |
|
|
1 |
Rs.82.63 |
|
Euro |
1 |
Rs.55.65 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
6 |
|
--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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 |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
48 |
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 |
|