MIRA
INFORM REPORT
|
Report Date : |
27.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
VARITURN ELECTRO PRODUCTS PRIVATE LIMITED |
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Registered Office : |
No. 11 – 150 / 15 and 16, 2nd Floor, Sri Sai Sadan Patwari Enclave,
Gandhinagar Road, Balanagar, Hyderabad – 500 037, Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.06.1988 |
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Com. Reg. No.: |
8791 |
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CIN No.: [Company
Identification No.] |
U31300AP1988PTC008791 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDV01214D |
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PAN No.: [Permanent
Account No.] |
AAACV6710B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers and Exporter of Wire Wound Resistors and Rheostats. |
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 6740 |
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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 records. 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
|
Registered Office : |
No. 11 – 150 / 15 and 16, 2nd Floor, Sri Sai Sadan Patwari Enclave,
Gandhinagar Road, Balanagar, Hyderabad – 500 037, Andhra Pradesh, India |
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Tel. No.: |
91 – 40 - 23074222 |
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Fax No.: |
91 – 40 - 23075930 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Rao Ramakrishna Rao |
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Designation : |
Director |
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Address : |
Mig – 12, Apllc Colony, Kushaiguda, |
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Date of Birth/Age : |
10.03.1944 |
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Date of Appointment : |
24.06.1988 |
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Name : |
Mr. Bantwal Narasimha Bhat |
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Designation : |
Director |
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Address : |
B – 213, Shanti Bagh Apartments, Begumpet, |
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Date of Birth/Age : |
18.12.1946 |
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Date of Appointment : |
02.01.1989 |
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Name : |
Mr. Kosuru Krishnam Raju |
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Designation : |
Director |
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Address : |
Mig 67 B, |
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Date of Birth/Age : |
25.05.1954 |
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Date of Appointment : |
28.12.2000 |
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Name : |
Mrs. Sagi Ramakrishnam Raju |
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Designation : |
Director |
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Address : |
67 – B, |
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Date of Birth/Age : |
15.01.1960 |
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Date of Appointment : |
16.10.2002 |
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Name : |
Mrs. Kosoru Shobha Rani |
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Designation : |
Director |
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Address : |
67 – B, |
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Date of Birth/Age : |
23.07.1968 |
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Date of Appointment : |
26.03.2005 |
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Name : |
Mr. Rao Venkata Ramakrishna Rao |
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Designation : |
Director |
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Address : |
204, Jupally Arcade, Kamala Nagar, |
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Date of Appointment : |
17.10.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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Mr. Rao Ramakrishna Rao |
|
4900 |
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Mrs. Rao Goda Devi |
|
3000 |
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Mrs. RV Hima Bindu |
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10000 |
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Mr. Rao Harivamshi |
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2000 |
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Mr. Bantwal Narasimha Bhat |
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7500 |
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Mrs. Shobha Narasimha Bhat |
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5000 |
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Mrs. J. Jyotsna |
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500 |
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Mr. J. V. R. Harini |
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500 |
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Mr. CUAK Tirupathi Rao |
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500 |
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Mr. Rao Venkata Rao |
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500 |
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Mrs. K V Radha Devi |
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300 |
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Mrs. K. Jyothi Sree |
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300 |
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Mr. RV Malikarjuna Rao |
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2500 |
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Mr. Kosoru Krishnam Raju |
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45000 |
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Mrs. Kosoru Shobha Rani |
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5300 |
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Mr. Sagi Ramakrishnam Raju |
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500 |
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Mr. O. N. Jandal |
|
100 |
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Mr. A. S. N. Murthy |
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100 |
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Mrs. D. Prabhavathi |
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500 |
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Mr. D. Krishnam Raju |
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500 |
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Mrs. Padmavathy |
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500 |
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Total |
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90000 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
|
94.00 |
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Others |
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6.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporter of Wire Wound Resistors and Rheostats. |
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Products : |
v
Electronic Wire Wound Resistors v
Electronic Push Button Switches v
Electronic Fuse Holders |
GENERAL INFORMATION
|
Customers : |
1. ABB
Limited, Mumbai, |
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Bankers : |
Ø
State Bank of Kushaiguda Branch, ECIL Post, E-Mail: kushaiguda@sbhyd.com
Ø
Central Bank of Ø
Standard Chartered Bank Ø
ICICI Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
GMK Associates Chartered Accountants |
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Address : |
607, R R Towers, |
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Tel No.: |
91-40-23201357 / 30621357 |
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E-Mail: |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90000 |
Equity Shares |
Rs. 10.00 each |
Rs. 0.900 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90000 |
Equity Shares |
Rs. 10.00 each |
Rs. 0.900 million |
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 |
|
0.900 |
0.900 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
0.785 |
0.285 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
1.685 |
1.185 |
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LOAN FUNDS |
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1] Secured Loans |
|
6.009 |
1.717 |
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2] Unsecured Loans |
|
3.477 |
3.633 |
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TOTAL BORROWING |
|
9.486 |
5.350 |
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DEFERRED TAX LIABILITIES |
|
0.163 |
0.169 |
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TOTAL |
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11.333 |
6.705 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
6.231 |
2.545 |
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Capital work-in-progress |
|
0.000 |
1.499 |
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INVESTMENT |
|
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 |
|
3.481 |
3.500 |
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Sundry Debtors |
|
8.677 |
3.436 |
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Cash & Bank Balances |
|
0.035 |
0.096 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
0.565 |
0.576 |
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Total
Current Assets |
|
12.758 |
7.608 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
7.657 |
4.945 |
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Provisions |
|
0.000 |
0.000 |
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Total
Current Liabilities |
|
7.657 |
4.945 |
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Net Current Assets |
|
5.102 |
2.660 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
11.333 |
6.705 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
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Total Income |
|
27.698 |
15.052 |
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Profit/(Loss) Before Tax |
|
0.753 |
0.332 |
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Provision for Taxation |
|
0.253 |
0.123 |
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Profit/(Loss) After Tax |
|
0.500 |
0.209 |
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Earnings in Foreign Currency : |
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Total Earnings |
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0.874 |
0.762 |
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Imports : |
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Total Imports |
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4.534 |
1.100 |
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Expenditures : |
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Financial Charges |
|
0.643 |
0.231 |
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Depreciation & Amortization |
|
0.973 |
0.410 |
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Other Expenditure |
|
23.713 |
13.438 |
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Total Expenditure |
|
25.329 |
14.079 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
|
1.80 |
1.38 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
2.71 |
2.20 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
3.96 |
3.26 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.44 |
0.28 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
10.17 |
8.68 |
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Current Ratio (Current Asset/Current Liability) |
|
|
1.66 |
1.53 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
VARITURN ELECTRO PRODUCTS PRIVATE LIMITED |
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Presented By |
Mr. K. Krishnam
Raju Managing Director |
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1) Date and description of instrument creating the change |
1.
Agreement
of Hypothecation of Goods, machineries, Book Debts and other assets dated
14.06.1990 2.
Agreement
of Overdraft against supply bills dated 16.06.1990 |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 |
Raw materials, work
in Process, finished Goods, stores and spares both present and future, book
debts, monies and receivables, claims, bills, contracts, segments,
securities, investments, right charge on bills, goods, securities, documents
and monies, demand due. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin: 25%,
Repayable on demand. |
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5) Name and Address and description of the person entitled to the charge. |
State bank of Kushaiguda
Branch, Kushaiguda, |
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6) Date and brief description of instrument modifying the charge |
1.
Agreement
of Hypothecation and Guarantee (Hypothecation of Goods, Machineries, Bad
Debts and Other Assets. 2.
Articles
of Agreement for Medium Term Loan against pledge of Movable machineries dated
24.06.2005 |
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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. |
Limits has been enhanced
from Rs. 0.700 million to Rs. 5.250 millions. The revised limits are as
under:
First charge on
stocks of raw materials, stocks in process, finished goods, consumables, book
debts, receivables and other current assets of the Company both present and
future. First charge on Fixed assets of the Company both present and future. Term Loan is repayable in 60 EMI of Rs.
0.050 million each commencing from August 2005. Rate of Interest is 11.50%
p.a. monthly rests. The total limits of Rs. 5.250 millions together with
interest, penal interest and all other charges payable by the company to the
Bank as per the agreement dated 24.06.2005 |
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Corporate
identity number (CIN) Foreign company registration number |
U31300AP1988PTC008791 |
|
Name of the
Company |
VARITURN ELECTRO PRODUCTS PRIVATE LIMITED |
|
Address |
No. 11 – 150 / 15 and 16, 2nd Floor, Sri Sai Sadan Patwari
Enclave, Gandhinagar Road, Balanagar, Hyderabad – 500 037, Andhra Pradesh,
India |
|
This form is for |
Modification of
charge |
|
Type of Charge |
Hypothecation |
|
Particulars of the
charge holder |
State Bank of Kushaiguda Branch, ECIL Post, E-Mail: kushaiguda@sbhyd.com
|
|
Amount secured by
the charge |
Rs. 8.250
millions |
|
Brief of the
principal terms and conditions |
Margin 25% on
stocks, 50 % on book debts, ROI: 12% p.a. subject to change from time to time
as per the directives of the bank.
First charge by way of hypothecation of stocks, book debts and other
current assets and first charge on fixed assets of the company both present
and future. |
|
Description of
the property charged indicating |
It is a charge
on: v
Stock
in trade v
Plant
and Machinery v
Book
Debts v
Furniture
and Fixtures |
|
Particulars of
the property charged |
First charge by
way of hypothecation of Current assets of stocks, book debts and other
current assets of the company and first charge on fixed assets of the company
both present and future. |
|
Brief description
of the instrument modifying the charge under section |
Agreement of
Hypothecation and Guarantee |
|
Date of
Instrument |
02.08.2006 |
|
Particular of the
present modification |
CC
(hypothecation) limit has been enhanced from Rs. 3.000 millions to Rs. 6.000 millions.
The Term Loan of Rs. 2.250 millions remain same (registered on 27.07.2005 /
vide doc. No. 80) First charge on Current assets and Fixed Assets of the
Company. |
Website details attached:
Profile
Subject established in 1990
and specializes in manufacturing and supply of a wide range of Wire Wound
Resistors and Power Rheostats for industrial, defence, energy metering,
instrumentation, power electronics traction electronics, elevators and allied
engineering applications.
Subject has its
manufacturing facility in a built-up area of 8000 Sq.fts. with an operating
capacity of 50 Millions per annum. Subject
is equipped with comprehensive manufacturing facilities and 100% test setup to
conduct "Qualification Approval" and 'Lot Acceptance' as per relevant
National and International standards.
Find out why today's leading OEMs seeking design flexibility and manufacturing
superiority turn to us for answers. Subject
welcomes the challenge to fill your need by utilizing our design capabilities
and our design engineers will provide you with that one of a kind resistor in
quantities.
Whether standard, custom, or totally
designed and manufactured to your specifications, the resistors will be in your
hands when you need them. Innovative stocking programs allow us to deliver
times. Subject looks forward to
build a quality business relationship with you and your company.
As a market leader in
Wire Wound Resistors
Ø
Silicon Coated
Ø
Ceramic Encased
Ø Flame Proof
Ø Aluminium Housed
Ø High Wattage
High Power Resistors
Ø Load Banks
Ø Dynamic Braking
Ø Neutral Earthing Resistors
Ø Motor Starting Resistors
Power Rheostats
Application
Subject Wire Wound
Resistors find application in Consumer Electronics, Power Sector,
Telecommunications, Instrumentation, Defence Applications, Railways, Elevator
& Crane Industry.
Management
Subject lead by Mr. K. K. Raju,
Managing Director, who was a technocrat with over several decades of experience
in the field of electronics and telecommunications.
Under his able
leadership, a team of people with special talents, expertise, vision, drive and
commitment, have created and nurtured an outstanding talent in the company
specialized in planning, product design and development, production, quality
assurance, testing & analysis, techno counseling and customer relationship.
Products
|
VPA Series |
VPP Series |
|
VPA-F Series |
VSM Series |
|
VPR Series |
VPR (V) Series |
|
VPR (L) Series |
VPF Series |
|
VPC Series |
VCS Series |
|
VPS Series |
VSH Series |
|
VHS Series |
VHF Series |
|
VEA Series |
VBM Series |
|
VBM(L) Series |
VBS Series |
|
VEM Series |
VCT Series |
|
VSS Series |
VVW Series |
|
VEW Series |
VTC Series |
|
VRTSeries |
VRC Series |
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. 40.27 |
|
|
1 |
Rs. 82.53 |
|
Euro |
1 |
Rs. 55.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|