MIRA
INFORM REPORT
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Report Date : |
11.06.2007 |
IDENTIFICATION DETAILS
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Name : |
WADCO PACKAGING PRIVATE LIMITED |
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Registered Office : |
8, Candy House, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.10.1975 |
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Com. Reg. No.: |
11-18598 |
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CIN No.: [Company
Identification No.] |
U29120MH1975PTC018598 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMW02135A |
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PAN No.: [Permanent
Account No.] |
AAACW0338A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and sale of Corrugated Boxes, Boards and Rolls. |
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 178000 |
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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
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Registered Office : |
8, Candy House, |
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Tel. No.: |
91 - 22 - 202 2346/2106 |
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Fax No.: |
91 - 22 - 202 2111 |
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E-Mail : |
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Administrative Office : |
1103, Akash Deep, |
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Factory 1 : |
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Area : |
Owned |
DIRECTORS
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Name : |
Mr. Pankaj Wadhwa |
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Designation : |
Managing Director |
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Address : |
15, Sea Gilmpse, |
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Date of Birth/Age : |
13.04.1963 |
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Qualification : |
M.B.A. ( |
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Experience : |
11 years |
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Date of Appointment : |
27.09.1990 |
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Name : |
Mrs. Rama Wadhwa |
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Designation : |
Director |
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Address : |
15, Sea Gilmpse, |
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Date of Birth/Age : |
25.10.1933 |
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Date of Appointment : |
05.08.2004 |
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Name : |
Mr. |
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Designation : |
Director |
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Address : |
31, |
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Date of Birth/Age : |
24.11.1939 |
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Date of Appointment : |
15.10.1975 |
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Name : |
Mr. Vivek Wadhwa |
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Designation : |
Executive Director |
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Address : |
31, |
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Date of Birth/Age : |
23.03.1970 |
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Date of Appointment : |
05.04.2000 |
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Name : |
Mr. Inder Sain Wadhwa |
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Designation : |
Director |
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Name : |
Mr. Surinder Makkar |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2005
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Names of Shareholders |
No. of Shares |
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Mr. |
150 |
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Mr. Pankaj Wadhwa |
1287 |
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Mr. Krishan L Wadhwa |
525 |
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Mrs. Rama Wadhwa |
330 |
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Mrs. Kusum Wadhwa and Mrs. Krishan L Wadhwa |
6350 |
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Mr. |
16500 |
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Mrs. Rama Wadhwa |
1200 |
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Mr. Jaideep Wadhwa and Mr. Kailash C Wadhwa |
16275 |
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Total |
42617 |
As on 31.03.2006
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Names of Shareholders |
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Percentage of
Holding |
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Directors or their relatives |
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90.50 |
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Other top 50 shareholders |
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9.50 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and sale of Corrugated Boxes, Boards and Rolls. |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
150 |
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Bankers : |
Oriental Bank of Commerce, Jash Chambers, Ground Floor, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ashok Kumar Mehra & Company Chartered Accountants |
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Address : |
G1/G2, Saujanya, 16th Floor, Khar (West), Mumbai-400052, |
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Associates/Subsidiaries : |
Wadco Tools Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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180000 |
Equity Shares |
Rs.100/-
each |
Rs.18.000
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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18.000 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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29.225 |
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4] (Accumulated Losses) |
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(2.478) |
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NETWORTH |
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44.747 |
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LOAN FUNDS |
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1] Secured Loans |
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32.689 |
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2] Unsecured Loans |
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27.953 |
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TOTAL BORROWING |
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60.642 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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105.389 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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56.546 |
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Capital work-in-progress |
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16.186 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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3.762 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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19.506 |
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Sundry Debtors |
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18.755 |
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Cash & Bank Balances |
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0.464 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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7.595 |
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Total
Current Assets |
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46.320 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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15.382 |
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Provisions |
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2.043 |
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Total
Current Liabilities |
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17.425 |
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Net Current Assets |
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28.895 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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105.389 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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163.472 |
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Other Income |
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0.000 |
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Total Income |
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163.472 |
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Profit for the Year |
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2.040 |
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Expenditures : |
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Interest |
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4.168 |
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Insurance Expenses |
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Power & Fuel |
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Depreciation & Amortization |
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4.207 |
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Other Expenditure |
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153.057 |
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Total Expenditure |
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161.432 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
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PAT / Total Income |
(%) |
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1.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.66 |
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Return on Investment (ROI) (PBT/Networth) |
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0.05 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.74 |
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Current Ratio (Current Asset/Current Liability) |
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2.66 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
WADCO
PACKAGING PRIVATE LIMITED |
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Presented By |
Oriental Bank of Commerce, |
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1) Date and description of instrument creating the change |
No instrument – Creation of equitable mortgage of Company’s immovable property on 07.01.2000. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.53.400 millions covering the following facilities granted by the bank to the company
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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 |
Mortgage of company’s immovable property at Plot No.B/24, Ranjangaon Industrial Area, Pune together with all buildings super structure. Plant and machinery constructed and or to eb constructed, installed and or to be installed and all accretions thereto to secure the repayment of all liabilities/ advances already made or which may hereafter be made by the bank in respect of the aforesaid credit facilities and interest, costs and other charges payable in terms of loan agreement executed buy the company in favour of the bank from time to time. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The rate of interest, commission and other charges for availing of the above facilities shall be as provided in the relevant agreements executed by the company in favour of the Bank from time to time upro an overall credit limit of Rs.53.400 millions sanctioned by the bank to the company. |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Jash Chambers Ground Floor Fort, Mumbai-400001 |
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6) Date and brief description of instrument modifying the charge |
No instrument memorandum for extension of equitable mortgage dated 01.01.2002 on the company’s immovable properties at Pune and by way of second modification of the enhancement in the overall credit limit sanctioned by the bank to the company from Rs.45.200 millions to Rs.47.200 millions. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
By the aforesaid modification the bank at the request of the company has granted an additional adhoc UBD limit of Rs.2.000 millions thereby enhancing the overall credit limit made available by the bank to the company from Rs.45.200 millions to Rs.47.200 millions on the following basis taking into consideration the additional adhoc UBD Limit as under :
*Sub limit – Book debts- Rs.7.000 millions The rate of interest, commission and other charges for availing of the above facilities shall be as provided in the relevant agreement executed by the company in favour of the bank from time to time. Security : By the extension of mortgage the company has extended the security cover on the company’s immovable property situated at Plot No.B-24, Ranjangaon Industrial Area, Pune together with all buildings, super structure, plant and machinery constructed and or to be constructed, installed and or to be installed and all accretions thereto to secure the repayment of all liabilities/ advances already made or which may hereafter be made by the bank in respect of the aforesaid credit facilities amounting to Rs.47.200 millions and interest, costs and other charges payable in terms of loan agreement executed buy the company in favour of the bank from time to time. Save and except above, the terms and conditions stipulated in the original equitable mortgage created by the company on 07.01.2000 for Rs.53.400 millions on the aforesaid immovable property as modified by first modification by extension of mortgage on 12.04.2001 fir the revised reduced limit of Rs.45.200 millions sanctioned by the Bank to the company shall remain the same. |
HISTORY
The Company was incorporated on
BUSINESS
The company is in manufacture and sale of Corrugated Boxes, Boards and
Rolls.
The company consumes raw materials viz. Kraft Paper, Adhesives - Powder, Wax, Stitching
Wire and Others.
The company's Long Term Fund and Working Capital requirements are met by
Oriental Bank of Commerce.
The company's fixed assets of important value include :
Freehold land, building, electrical fitting, bore well, plant & machinery,
fort lift, office equipment, computer & accessories, vehicles and furniture
& fixtures.
Website Details :
Subject is one of the largest manufacturers of
Corrugated Fibre Cartons. They have state of the art manufacturing facilities
and are well known for maintaining their quality standards.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.98 |
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1 |
Rs.80.98 |
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Euro |
1 |
Rs.54.99 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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49 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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