MIRA
INFORM REPORT
|
Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MANGAL PRECISION PRODUCTS PRIVATE LIMITED |
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Registered Office : |
Renigunta – |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.11.1990 |
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Com. Reg. No.: |
011932 |
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CIN No.: [Company
Identification No.] |
U29309AP1990PTC011932 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDM01837D |
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PAN No.: [Permanent
Account No.] |
AABCM4979N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of High Tensile Fasteners. |
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 520000 |
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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 : |
Renigunta – |
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Tel. No.: |
91-877-2285561 |
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Fax No.: |
91-877-2285660 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Galla N Ramchandra |
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Designation : |
Chairman |
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Address : |
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Date of Birth/Age : |
01.06.1938 |
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Date of Appointment : |
17.01.2004 |
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Name : |
Mrs. Galla Kumari Amara |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
20.09.1943 |
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Date of Appointment : |
21.09.2004 |
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Name : |
Mr. Galla Jayadev |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
24.03.1966 |
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Date of Appointment : |
02.12.2000 |
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Name : |
Mrs. G. Padmavati |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
06.09.1967 |
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Date of Appointment : |
17.01.1994 |
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Name : |
Mrs. G. Ramadevi |
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Designation : |
Director |
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Address : |
3420, |
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Date of Birth/Age : |
22.09.1964 |
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Date of Appointment : |
22.11.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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Mr. Ramchandra N Galla |
|
99000 |
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Mrs. Amara Kumari Galla |
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31000 |
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Mr. Jayadev Galla |
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48500 |
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Mrs. G. Padmavati |
|
46900 |
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Dr. G. Ramadevi |
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94000 |
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Master Siddhartha Galla |
|
12850 |
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Master Ashok Galla |
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17440 |
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Master Vikramaditya |
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12830 |
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Master Harshvardhan |
|
13830 |
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Mr. G Srinivasulu Naidu |
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1000 |
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Mr. G Jayarama Naidu |
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1000 |
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Mrs. Y Parvathy |
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1000 |
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Mr. R Bhanumurthy Naidu |
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500 |
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Mr. R Ramakrishna |
|
500 |
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Total |
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380350 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
|
99.74 |
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Other top fifty (50) shareholders (other than listed above) |
|
0.26 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of High Tensile Fasteners. |
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Products : |
v
v
Battery Racks and v
Cabinets v
Acoustic Enclosures v
Diesel Tanks v
M S S S and HTS Bolts v
Copper Inserts v
Lead Bushes |
GENERAL INFORMATION
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Customers : |
v
Amararaja Power Systems Private Limited v
Amararaja Electronics Private Limited v
Amararaja Batteries Limited |
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No. of Employees : |
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Bankers : |
State Bank of Tirupati – E-mail: sa.06677@sbi.co.in |
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Facilities : |
Secured Loans |
As
on 31.03.2005 (Rs.
in millions) |
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Working Capital Facility Term Loan Andhra Bank Total |
11.315 88.952 100.267 |
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Unsecured Loans |
As
on 31.03.2005 (Rs.
in millions) |
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Smt. Ramadevi G Sri. Ramchandra N Galla Sales Tax Department Total |
1.200 12.500 0.959 14.659 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
E Phalguna Kumar and Company Chartered Accountants |
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Address : |
599 / 2, Balaji Colony, Tirupati – 517 520, |
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Associates/Subsidiaries : |
v
Amararaja Power Systems Private Limited v
Amararaja Electronics Private Limited v
Amararaja Batteries Limited |
CAPITAL STRUCTURE
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
380350 |
Equity Shares |
Rs. 10.00
each |
Rs. 3.804
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
3.804 |
3.804 |
3.804 |
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2] Share Application Money |
3.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
123.821 |
84.863 |
85.851 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
130.625 |
88.667 |
89.655 |
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LOAN FUNDS |
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1] Secured Loans |
96.195 |
100.267 |
62.912 |
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2] Unsecured Loans |
15.351 |
14.659 |
14.542 |
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TOTAL BORROWING |
111.546 |
114.926 |
77.454 |
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DEFERRED TAX LIABILITIES |
22.334 |
17.763 |
17.763 |
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TOTAL |
264.505 |
221.355 |
184.871 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
237.125 |
182.595 |
159.942 |
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Capital work-in-progress |
2.387 |
32.004 |
21.879 |
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INVESTMENT |
13.626 |
13.626 |
13.626 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
8.528
|
5.981 |
6.161 |
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Sundry Debtors |
12.482
|
3.632 |
0.783 |
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Cash & Bank Balances |
2.039
|
4.377 |
3.879 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
12.724
|
6.279 |
7.343 |
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Total
Current Assets |
35.773
|
20.269 |
18.166 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
18.128
|
27.139 |
28.742 |
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Provisions |
6.277
|
0.000 |
0.000 |
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Total
Current Liabilities |
24.405
|
27.139 |
28.742 |
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Net Current Assets |
11.367
|
(6.870) |
(10.575) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
264.505 |
221.355 |
184.871 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 (Estimated) |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
90.000 |
9.438 |
7.376 |
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Other Income |
|
0.960 |
0.858 |
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Job Work Charges |
|
60.584 |
43.607 |
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Increase / Decrease in Stocks |
|
0.712 |
0.788 |
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Total Income |
NA |
71.694 |
52.629 |
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Profit/(Loss) Before Tax |
NA |
(1.021) |
(3.334) |
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Provision for Taxation |
NA |
(0.033) |
6.564 |
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Profit/(Loss) After Tax |
NA |
(0.988) |
(9.898) |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.000 |
0.000 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
0.000 |
0.000 |
0.000 |
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Imports : |
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Raw Materials and components |
0.000 |
0.000 |
0.17 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
0.000 |
0.000 |
0.17 |
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Expenditures : |
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Material Consumed |
NA |
17.054 |
15.475 |
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Payments and Benefits to Employees |
NA |
19.425 |
17.691 |
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Manufacturing Expenses |
NA |
11.199 |
7.982 |
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Selling, administration and Other Expenses |
NA |
4.435 |
4.202 |
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Duties and Taxes |
NA |
0.224 |
0.285 |
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Financial Charges |
NA |
10.221 |
3.690 |
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Depreciation |
NA |
10.158 |
6.638 |
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Total Expenditure |
NA |
72.716 |
55.963 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
NA
|
1.38 |
1.71 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA
|
10.82 |
45.20 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
0.37 |
1.64 |
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Return on Investment (ROI) (PBT/Networth) |
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NA
|
0.01 |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.04
|
1.60 |
1.84 |
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Current Ratio (Current Asset/Current Liability) |
|
1.47
|
0.75 |
0.63 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
MANGAL PRECISION PRODUCTS PRIVATE LIMITED |
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Presented By |
Mr. Ramchandra N.
Galla Chairman |
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1) Date and description of instrument creating the change |
25.10.1999 Agreement of
Hypothecation of Goods and Assets |
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2) Amount secured by the charge/amount owing on the securities of charge |
Term Loan Working Capital Facilities Total |
Rs. 30.000
millions Rs. 3.500
millions Rs. 33.500 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 |
Hypothecation of
Book Debts, all movable assets and machineries of the Company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The Charge
operates as security for repayment of the Term Loan and Working Capital
Facilities. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Settipali Branch,
Tirupati – 517 520, |
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6) Date and brief description of instrument modifying the charge |
30.07.2005 Agreement of Loan
for Overall Limit in Form C1 Agreement of Hypothecation of Goods and Assets
in form C2 Letter regarding
the grant of individual limits within the Overall Limit in Form C5 |
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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. |
With the
execution of the above said documents, the Working Capital limits secured by
the charge stands modified as follows: Rs. in millions |
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Facility |
Previous Limits |
Modified Limits |
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CC Term Loan FLC ILC BG |
1.200 7.500 11.000 Nil 0.300 20.000 |
1.200 Repaid Fully Nil 1.000 0.300 2.500 |
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Rate of Interest – OCC – 11.75% p.a. with a minimum of 1.5% above SBAR First Charge on all chargeable current assets of the company (on
pari-passu along with other members of Multiple Banking Arrangement) |
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Corporate identity
number (CIN) Foreign company registration number |
U29309AP1990PTC011932 |
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Name of the
Company |
MANGAL PRECISION PRODUCTS PRIVATE LIMITED |
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Address |
Renigunta – |
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This form is for |
Modification of
charge |
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Type of Charge |
v
A
charge on: v
Immovable
property v
Book
debts v
Movable
Property(not being pledge) v
Floating
Charge |
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Particulars of
the charge holder |
State Bank of Tirupati – E-mail: sa.06677@sbi.co.in |
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Amount secured by
the charge |
Rs. 25.500
millions |
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Nature or description
of the instrument(s) creating or modifying the charge |
1. Form C1A –
Supplemental agreement of loan for increase in the overall limit 2. Form C2A –
Supplemental agreement of hypothecation of goods and assets for increase in
the overall limits. 3. Form C5 –
Letter regarding the grant of individual limits within the overall limit. 4. Intersee
Agreement. |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: State bank of
India Advance rate (SDBAR) (SBAR = 11.50 %
per annum) (b) Terms of
repayment: Payable on demand (c ) Margin: Raw Materials
Imported: 25% Indigenous: 25% Semi-Finished
Goods: 25% Components /
Consumables / Spares: 25% Domestic Receivables
(cover period 90 days): 40% (d) Extent and
operation of the charge: 1. First Charge
on all chargeable current assets of the company (on pari-passu along with
Andhra Bank, Tirupati) 2. Second Charge
on all the fixed assets of the Company 3. EM of house
site at Survey No. 584 / 2, Plot No. 82 of Shri. Ramchandra N. Galla (e) Others: Margin on LC
(usance period 90 days): 10 % BG (Beyond 18 months also):
10 % |
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Short particulars
of the property charged |
1. First Charge on
all chargeable current assets of the company (on pari-passu along with Andhra
Bank, Tirupati) 2. Second Charge
on all the fixed assets of the Company 3. EM of house
site at Survey No. 584 / 2, Plot No. 82 of Shri. Ramchandra N. Galla |
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Date of Instrument
|
27.01.2007 |
|
Particular of the
present modification |
Increase in
overall limits from Rs. 2.500 millions to Rs. 25.500 millions. |
Fixed Assets
v Land
v Buildings
v Non-factory Buildings
v Plant and machinery
v Electrical Installation
v Office Equipments
v Computers
v Furniture
v Vehicles
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. 40.93 |
|
|
1 |
Rs. 80.76 |
|
Euro |
1 |
Rs. 54.46 |
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 |
|