MIRA
INFORM REPORT
|
Report Date : |
07.06.2007 |
IDENTIFICATION DETAILS
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Name : |
LOHIA STARLINGER LIMITED |
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Registered Office : |
D-3/ A, Panki Industrial Estate, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.10.1981 |
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Com. Reg. No.: |
5446 |
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CIN No.: [Company
Identification No.] |
U29263UP1981PLC005446 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPL00020G / KNPL01083F / KNPL00108D |
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PAN No.: [Permanent
Account No.] |
AAACL2470J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
The company is engaged in manufacturing of spinning machines for
plastic woven fabric and textile industry. |
RATING & COMMENTS
|
MIRAs 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 3140000 |
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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 fair. Business is active. Payments are reported as
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 / Head Office / Factory : |
D - 3/A Panki Industrial Estate, |
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Tel. No.: |
91 512 282001-9 / 2211221 (7 lines ) / 2272001 to 2272009 |
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Fax No.: |
91 512 282012 / 282205 / 2211249 /
2822149/ 3045599 |
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E-Mail : |
sales@lohiagroup.com
, lsl@lw1.vsnl.net.in , lsl@lohiagroup.com |
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Website : |
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Area : |
Owned |
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Location : |
Industrial Area |
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Factory 2 : |
Dercitex Components Manufacturing Company, 446-48/49, Mallwan,
Chaubeypur, District |
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Factory 3 : |
Lohia Packing Machinery, 443-445/A, Mallwan, Chaubeypur, District |
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Factory 4: |
Lohia Packing Machinery, 910/4/3/1, Dok Mardi Amli, Silvassa 396
230, |
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Factory 5 : |
Lohia Machinery Manufacturers, 499-500/A, Amilika, Chaubeypur,
District |
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Factory 6 : |
Lohia Industrial Complex Chaubepur, |
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Tel. No.: |
91-5112-282001 |
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Fax No.: |
91-5112-282205 |
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Branch : |
Located at : ˜
60, Trivenipark Bungalow, Auda Staff Soceity,
Opp. Surdhara Bungalow, Drive-In, Ahmedabad 380 052, Tel No. 91-79-27450943 Fax No.
91-79-27450963 ˜
544, 9th Cross, 7th Main,
Sadhasivnagar, Tel No. 91-80-3340429 Fax No. 91-80-3344795 ˜
F-38, Tel No. 91-22-22184449 Fax No. 91-22-22187578 ˜
B-2/15, Safdarjung Enclave, Tel No. 91-11-26163281 Fax No. 91-11-26195476 |
DIRECTORS
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Name : |
Mr. Raj Kumar Lohia |
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Designation : |
Managing Director |
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Address : |
113/91, Swaroop Nagar, |
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Date of Birth/Age : |
21.08.1954 |
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Qualification : |
B.A. (Economics) |
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Date of Appointment : |
05.10.1981
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Other Directorships : |
Lohia Packaging Machines Limited Lohia Machinery Manufacturers Limited |
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Name : |
Mr. Vinay Sah |
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Designation : |
Whole Time Director |
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Address : |
Flat No. 3, Classic Apartments, 113/4,
Swaroop Nagar, |
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Date of Birth/Age : |
23.05.1955 |
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Date of Appointment : |
01.011997 |
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Name : |
Mr. Anurag Kumar Lohia |
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Designation : |
Whole Time Director |
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Address : |
Saket, 3A/ 88, Azad Nagar, |
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Date of Birth/Age : |
18.085.1969 |
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Date of Appointment : |
27.07.2002 |
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Name : |
Mr. Rajendra Kumar Newatia |
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Designation : |
Director |
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Address : |
7/96, Tilak Nagar, |
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Date of Birth/Age : |
01.01.1945 |
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Date of Appointment : |
01.01.1984 |
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Name : |
Mr. Gopal Chandra Lohia |
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Designation : |
Director |
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Address : |
7/153-B, Swaroop Nagar, |
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Date of Birth/Age : |
05.07.1937 |
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Date of Appointment : |
04.04.1983 |
KEY EXECUTIVES
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Name : |
Mr. Arvind Kumar Bhargava |
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Designation : |
Company Secretary |
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Address : |
107 Bima Vihar, Lakhanpur, |
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Date of Birth/Age : |
23.03.1963 |
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Date of Appointment : |
16.05.1995 |
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Tel. No. : |
91-512-2582698 |
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Email : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
Percentage of
Holding |
|
Foreign Holdings (foreign institutional investors, foreign companies,
foreign financial institutions, non-resident Indian or overseas corporate
bodies or others) |
|
36.65 |
|
Bodies corporate (not mentioned above) |
|
43.19 |
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Directors or relatives of directors |
|
17.35 |
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Other top fifty (50) shareholders (other than listed above) |
|
0.50 |
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Others |
|
2.31 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacturing of spinning machines for
plastic woven fabric and textile industry. It is engaged in as manufacturers of machinery for HDPE / PP, Woven
Sacks, synthetic, textile, plastic, rayon, tape woven sacks and Textile
Industries. |
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Products : |
Generic Names of the Principal Products of the Company are : Ψ
Machinery for manufacture of woven plastic Fabric Ψ
Machinery for processing of man made yarns Ψ
Machinery parts / components Ψ
Other spares and accessories The product range includes the following : Ψ
Circular weaving machine Ψ
Tape production equipment two-for one twister Ψ
Draw texturising machine |
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Terms : |
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Selling : |
It sells against Cash, L/C or Credit terms |
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Purchasing : |
The company purchases its requirements against Cash, Credit or L/C terms |
GENERAL INFORMATION
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Customers : |
Its major customers includes manufacturers, wholesalers and
retailers. |
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No. of Employees : |
Around 1000 |
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Bankers : |
Ψ
State Bank of Civil Lines, Ψ
State Bank of Ψ
Canara Bank, |
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Facilities : |
The company enjoys mortgage facilities from State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anil Pariek and Garg Chartered Accountants |
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Address : |
33 Anand Bazar, Swaroop Nagar, |
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Tel. No.: |
91-512-2214829 |
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Associates : |
Ψ
Threads India Limited Ψ
Lohia Precision Works Limited Ψ
Lohia Machinery Manufactures Limited Ψ
Lohia Packaging Machines Limited Ψ
Precitex Components Manufacturing Company Ψ
LML Limited Ψ
Hargovind Bajaj Research & Development Centre Ψ
Injecto Plast Private Limited Ψ
Lohia Sales & Services Limited Ψ
Precitex Components Manufacturing Company |
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Subsidiaries : |
˜
Lohia Infotech Private Limited ˜
Lohia Sales and Services Limited ˜
Lohia Packaging Machines Limited |
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Parent Company : |
Ψ
Lohia Group |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
12000000 |
Equity shares |
Rs. 10/- each |
Rs. 120.000
millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5075000 |
Equity
Shares |
Rs.10/-
each |
Rs.
50.750 millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5071450 |
Equity
Shares |
Rs.10/-
each |
Rs.
50.715 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
50.714 |
50.714 |
50.700 |
|
|
2] Reserves & Surplus |
733.648 |
505.827 |
392.100 |
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NETWORTH |
784.362 |
556.541 |
442.800 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
169.959 |
110.639 |
97.200 |
|
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2] Unsecured Loans |
4.368 |
5.864 |
6.800 |
|
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TOTAL BORROWING |
174.327 |
116.503 |
104.000 |
|
|
DEFERRED TAX LIABILITIES |
29.342 |
35.082 |
0.000 |
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|
|
|
|
|
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TOTAL |
988.031 |
708.126 |
546.800 |
|
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
386.353 |
294.747 |
291.200 |
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Capital work-in-progress |
35.430 |
10.198 |
21.800 |
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INVESTMENT |
77.555 |
92.100 |
18.200 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
535.964
|
393.540 |
316.900 |
|
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Sundry Debtors |
118.919
|
96.292 |
77.800 |
|
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Cash & Bank Balances |
61.146
|
16.782 |
15.000 |
|
|
Other Current Assets |
20.001
|
13.327 |
0.000 |
|
|
Loans & Advances |
101.212
|
123.975 |
72.000 |
|
Total
Current Assets |
837.242
|
643.916 |
481.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
323.210
|
313.123 |
255.500 |
|
|
Provisions |
25.339
|
19.712 |
10.600 |
|
Total
Current Liabilities |
348.549
|
332.835 |
266.100 |
|
|
Net Current Assets |
488.693
|
311.081 |
215.600 |
|
|
|
|
|
|
|
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TOTAL |
988.031 |
708.126 |
546.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
2349.376 |
1922.252 |
1331.700 |
|
|
Other Income |
3.745 |
0.000 |
28.500 |
|
|
Stock Adjustments |
0.000 |
0.000 |
(8.500) |
|
|
Total Income |
2353.121 |
1922.252 |
1351.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
369.288 |
185.291 |
113.200 |
|
|
Provision for Taxation |
0.000 |
0.000 |
41.100 |
|
|
Profit/(Loss) After Tax |
369.288 |
185.291 |
72.100 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
36.900 |
|
|
Employee Cost |
0.000 |
0.000 |
121.900 |
|
|
Selling and Administrative Expenses |
0.000 |
0.000 |
119.100 |
|
|
Raw Material Consumed |
1392.926 |
998.413 |
735.200 |
|
|
Excise Duty |
0.000 |
0.000 |
111.800 |
|
|
Consumption of stores and spares parts |
43.066 |
37.504 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
(97.441) |
29.181 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
154.461 |
137.916 |
0.000 |
|
|
Managerial Remuneration |
10.060 |
7.189 |
0.000 |
|
|
Payment to Auditors |
0.474 |
0.554 |
0.000 |
|
|
Interest |
5.333 |
5.981 |
12.600 |
|
|
Insurance Expenses |
63.953 |
103.926 |
0.000 |
|
|
Power & Fuel |
46.875 |
34.294 |
25.400 |
|
|
Depreciation & Amortization |
54.402 |
63.417 |
33.200 |
|
|
Other Expenditure |
309.724 |
318.586 |
42.400 |
|
Total Expenditure |
1983.833 |
1736.961 |
1238.500 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
15.69
|
9.64 |
5.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
15.71
|
9.63 |
8.50 |
|
|
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
27.63
|
17.80 |
13.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.47
|
0.33 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.70
|
1.87 |
1.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.40
|
1.93 |
1.81 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was incorporated on 3rd October, 1981 at
Subject is a part of Lohia Group.
The Group has currently interests in machine building for plastic and
textile industry, synthetic sewing yarn manufacture and engineering plastic
injection moulding, The group now has ambitious plans to diversify its
operations in other areas of business in the near future.
Subject is engaged in manufacturing of machinery for the flexible
packaging and synthetic textile industry.
In the area of flexible packaging, the company manufactures complete
range of woven sack machinery and in the area of textiles, machinery for the
processing of synthetic filaments.
It has state of the art manufacturing facilities in its various
divisions to manufacture plastic processing as well as textile machinery.
Customers satisfaction by delivering quality products has been the
corner stone of Lohia Group. The group, therefore, believes in manufacturing of
all critical and precision components in-house and to this end, the production
facilities of the group companies are equipped with high precision machine
tools and manned by team of well qualified and experienced engineers and
technicians.
The company has CAD /
In addition to the state-of-the art manufacturing facilities to
manufacture woven sack machinery, the group has well equipped Research and
Development Division recognised by the Department of Science and Technology of
the Government of India. This centre is manned by highly qualified personnel,
with the main objective of continuous product development and providing value
added service to customers.
The company has state of the art manufacturing facilities in its various
divisions to manufacture plastic processing as well as textile machinery. The
company also has a well equipped R and D division recognised by the department
of science and technology of the Government of India.
The companys Panki Unit manufactures complete range of weaving machines
and cheese winders.
Subject manufactures complete range of Tape Stretching Line, Waste
Recycling Machine. These are manufactured in a wide range of extrusion
capacities viz.,100kg/hr, 150kg/hr, 350kg/hr and 600kg/hr etc.
The companys major overseas selling agents are located at
Some of its major overseas selling agents are :
˜
Mahmoud M E1 Guindi,
˜
Ailayth Company for Trading Agencies,
˜
Vision
˜
˜
˜
Lohia Starlinger Limited has state of the art manufacturing
facilities in its various divisions to manufacture plastic processing as well
as textile machinery. The company also has a well equipped R&D division
recognised by the department of science and technology of the Government of
India.
Panki Unit: Manufactures complete range of weaving machines and cheese
winders:
Chaubepur Unit: Manufactures complete range of Tape Stretching Line of extrusion capacities viz. 100kg/hr, 150kg/hr, 250kg/hr, 350kg/hr, 450kg/hr, 600kg/hr. and 900 kg/hr. etc.
It is engaged in as manufacturers of machinery for HDPE / PP, Woven Sacks, synthetic, textile, plastic, rayon, tape woven sacks and Textile Industries.
Form 8
|
Corporation identity number or foreign company registrations number of the company |
U29263UP1981PLC005446 |
|
Name of the company |
LOHIA STARLINGER LIMITED |
|
Address |
D - 3/A Panki Industrial Estate, |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Immovable property, book debts, movable property (not being pledge) |
|
Particular of the charge holder |
State Bank of Overseas Branch, 15/54 B Virendra Smriti
Complex, Civil Lines, |
|
Nature or description of the instrument creating charge |
Supplemental agreement of hypothecation of goods and assets. |
|
Date of the instrument creating charge |
03.04.2007 |
|
Amount Secure by the charge |
Rs. 340.000 millions |
|
Brief of the principal terms and conditions and extent and operation of the charge |
Rate of Interest :
Interest @ 1.75% below SBAR (if loan availed in rupee)
Terms of Repayment :
Margin : Not applicable Extent and operation of the charge : 1. Term Loan: first charge on the fixed assets proposed to be acquired out of Term Loan and Equitable Mortgage (EM) on immovable properties viz. D-2/1, D-2/2 and F-4 situated at Panki Industrial Estate and 418. 419 and 453 situated at Chaubepur and on specified Fixed Assets EM of land and building at 499-A and B and 500-A and B at Chaubepur and second charge over entire current assets of the company Others : 2. SLC and FBP L/C: first charge over entire current asserts of the company and second charge on fixed assets proposed to be charged to Bank for Term Loan. |
|
Particulars of the Property charged |
As per letter of SBI bearing no. OBK/COMM/07-08/14 dated 23.04.2007 |
|
Particular of present modification |
As per letter of SBI bearing no. OBK/COMM/07-08/14 dated 23.04.2007. The limits have been increased from Rs. 189.500 millions to Rs. 340.000 millions as under: Term loan Rs. 270.000 millions Foreign bill negotiation limit Rs. 50.000 millions Standby line of credit Rs. 20.000 millions |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 Intl
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 companys 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.40.63 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.54.89 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
This score serves as a reference to assess SCs 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 |
|