MIRA INFORM
REPORT
|
Report
Date : |
14.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
AVALON TECHNOLOGIES PRIVATE LIMITED |
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Registered
Office : |
A-1/D, Anugraha Apartments, 19, |
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Country
: |
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Financials
(as on) : |
31.03.2003 |
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Date
of Incorporation : |
03.11.1999 |
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Com.
Reg. No.: |
18-43479 |
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CIN
No.: [Company
Identification No.] |
U30007TN1999PTC043479 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
CHEA07378A |
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Legal
Form : |
Private Limited Liability Company |
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|
|
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Line
of Business : |
Manufacturer, Exporter and Importer of Printed
Circuit boards and packaging components. |
RATING
& COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
530000 |
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|
|
|
Status
: |
Satisfactory |
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|
|
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Payment
Behaviour : |
Usually Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a 100% export oriented unit and fully
owned subsidiary of Sienna Corporation, located in There has been a quantum jump in the company’s
sales during the financial year 2002-2003 as compared to the previous period. Financial position of the company is good. Trade
relations are reported as fair. 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 : |
A-1/D, Anugraha Apartments, 19, |
|
Tel.
No.: |
91-44-28269324 |
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Fax
No.: |
91-44-28264445/ 22620095 |
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Website
: |
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Factory
: |
B - 7, First Main Road, MEPZ-SEZ, Tambaram,
Chennai –600045 |
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Tel.
No.: |
91-44-22620095-96 |
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Fax
No.: |
91-44-22620097 |
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E-Mail
: |
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Overseas
Office: |
2130, Tel No :- 408 957 8885 (Extension 215) Fax No :- 408 957 8886 E-mail :- gerhardmueller@avalontec.com
Phone :510-440-0200
Fax :510-440-0201 E-mail :sales@siennagroup.com |
DIRECTORS
|
Name : |
Mr. T. P. Imbichammad |
|
Designation
: |
Managing Director |
|
Address
: |
104 Defence Officers Colony, Chennai-600097, |
|
Date
of Birth/Age : |
09.04.1938 |
|
Date
of Appointment : |
03.11.1999 |
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|
|
|
Name : |
Mr. M. Kunhammad Bicha |
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Designation
: |
Director |
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Address
: |
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Date
of Birth/Age : |
12.04.1968 |
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Date
of Ceasing : |
03.11.1999 |
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|
|
|
Name : |
Mr. Bhaskar Srinivasan |
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Designation
: |
Director |
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Address
: |
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Date
of Birth/Age : |
03.06.1966 |
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Date
of Appointment : |
03.11.1999 |
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|
Name : |
Mr. Mariyam Bicha |
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Designation
: |
Director |
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Address
: |
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Date
of Birth/Age : |
16.08.1948 |
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Date
of Appointment : |
03.11.1999 |
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|
|
|
Name : |
Mr. S. Sesh Kumar |
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Designation
: |
Director |
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Address
: |
3, 3rd |
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Date
of Appointment : |
05.09.2001 |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. T P Imbichammad |
12500 |
|
Mrs. Mariyam Bicha |
250 |
|
Mr. Bhaskar Srinivasan |
10000 |
|
Mr. S. Seshu Kumar |
2250 |
|
Total |
25000 |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturer, Exporter and Importer of Printed
Circuit boards and packaging components. |
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|
|
|
Products
: |
Printed Circuit Boards |
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|
|
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Exports
to : |
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PRODUCTION STATUS
|
Particulars |
|
|
|
Actual Production |
|
Printed Circuit Boards |
|
|
|
194330 |
GENERAL
INFORMATION
|
Bankers
: |
State Bank of |
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|
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Facilities : |
- |
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|
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Banking Relations : |
Satisfactory |
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Auditors
: |
Varma and Varma Chartered Accountant |
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Address
: |
Sreela Terrace, 105, 1st |
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|
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Associates/Subsidiaries
: |
Nil |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
25,000 |
Equity Shares |
Rs.
100/- each |
Rs.
2.500 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1000 |
Equity Shares |
Rs.
100/- each |
Rs.
0.100 million |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
2.564 |
2.500 |
|
|
2] Share
Application Money |
|
0.000 |
7.896 |
|
|
3]
Reserves & Surplus |
|
132.029 |
69.707 |
|
|
4]
(Accumulated Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
134.593 |
80.103 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
119.409 |
63.083 |
|
|
2]
Unsecured Loans |
|
0.000 |
0.000 |
|
TOTAL
BORROWING
|
|
119.409 |
63.083 |
|
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
0.981 |
|
|
|
|
|
|
|
TOTAL
|
|
254.002 |
144.167 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
|
125.142 |
27.533 |
|
Capital work-in-progress
|
|
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT
|
|
1.169 |
25.294 |
|
DEFERREX TAX ASSETS
|
|
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
98.692 |
45.952 |
|
|
Sundry Debtors
|
|
96.944 |
93.102 |
|
|
Cash & Bank Balances
|
|
0.843 |
7.340 |
|
|
Other Current Assets
|
|
0.000 |
0.000 |
|
|
Loans & Advances
|
|
6.083 |
6.618 |
Total Current Assets
|
|
202.562 |
153.012 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
73.291 |
61.654 |
|
|
Provisions
|
|
1.580 |
0.018 |
Total Current Liabilities
|
|
74.871 |
61.672 |
|
Net
Current Assets
|
|
127.691 |
91.340 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
254.002 |
144.167 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 (Estimated) |
31.03.2005 (Estimated) |
Sales Turnover [including other income]
|
|
500.000 |
300.000 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
|
NA |
NA |
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|
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|
Net Profit Margin
(PBT/Sales) |
(%) |
|
NA |
NA |
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|
|
|
|
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
NA |
NA |
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|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
NA |
NA |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
1.44 |
1.56 |
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|
|
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Current Ratio
(Current
Asset/Current Liability) |
|
|
2.70 |
2.48 |
LOCAL
AGENCY FURTHER INFORMATION
Form 8 Particular for creation or
modification of charges
|
Name
of the company |
AVALON TECHNOLOGIES PRIVATE LIMITED |
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Presented By |
STATE BANK OF |
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1) Date and
description of instrument creating the change |
Dated 22.12.2003 Agreement of loan for overall limit in form C1 Agreement of hypothecation of goods and assets in from C2 Agreement of pledge of goods and assets in form C3 Letter regarding the grant of individual limits with in
the overall limit in from C5 All dated 22.12.2003 and relates to one and the same
charge. |
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2) Amount
secured by the charge/amount owing on the securities of charge |
Rs. 40.000 millions (Rs. In millions)
Together with interest, costs, charges and other expenses
that may be debited to the account from time to time. |
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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 |
Primary security : All present and future goods stores, book debts and all
other movable assets of the company, outstanding monies, receivables,
wherever lying stored and kept and whether in possession of the company or of
the bank or of an third party whether in India or elsewhere throughout the
world (including all such goods other movable assets as may be in course of shipment
transit of delivery) stand hypothecated to the bank by way of 1st
charge. Collateral security : Equitable mortgage the lease hold rights on the land
situated at B-7, in MEPZ-Phase II, Survey No.134 measuring 3645 Sq. mtrs. and
the superstructure of the proposed building. Floating charge : Hypothecation of machinery with written down value of
Rs.18.700 millions. Purpose of term loan : The loan is sanctioned for the purposed construction of
State of the art building at MEPZ-SEZ Tambaram to provide for in house
manufacturing factory with an area of 60000 Sq.ft. And Purchase of imported machinery from |
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4) Gist
of the terms and conditions and extent and operation of the charge. |
Interest for export packing credit : Rate of interest upon 180 days : 2.65% below SBSTAR
(10.00%) effective rate 7.35% p.a. Beyond 180 days 1.00% below SBSTAR effective rate 9.00%
p.a. Interest for term loan : Rate of interest 0.85% above SBMTLR effective rate being
11.85% with monthly rests. Margin :50% Repayment : 54 monthly installments with the initial 42
months repayment of Rs.0.500 millions each from October 2004 and upto March
08, the balance 12 monthly installments from April 2008 to March 2009 will
carry on end repayment obligation for Rs.0.750 millions each |
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5) Name
and Address and description of the person entitled to the charge. |
State Bank of Leather International Branch |
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6)
Date and brief description of
instrument modifying the charge |
Dated 08.12.2005 Supplemental agreement of loan for increase in the overall
limit in Form C1-A Supplemental agreement of hypothecation fo goods and
assets for increase in the overall limit in from C2-A Letter regarding the grant of individual limits with in
the overall limit in From C5. Extension of equitable mortgage by say of deposit of title
deeds. All dated 08.12.2005 and relates to one and the same
charge. |
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|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
The overall facility extended to the company has now been
enhanced from Rs.122.500 millions to Rs.170.800 millions comprising of : (Rs. In millions)
* Full interchangeability both ways $ sub limit under LC @ under term loan Securities : First charge on the entire stocks of raw materials, stock
in process, finished goods, consumable stores, spares receivables, documents
of title to the goods and machineries Extension of charge on current assets of the company Extension of charge over the residual value of the fixed
assets of the company. Extension of equitable of the lease hold rights on the
immovable properties viz. all that piece and parcel of factory land measuring
3771 Sq.mtrs. bearing Plot No.B7, Phase I, situated in Madras Export Processing
zone- SEZ, Tambaram, Chennai-600045, comprised in Survey No.164/1 part within
the village limits of Kadaperi, Tambaram Taluk, Kancheepuram District of
Chengalput togehte with the building constructed thereon Earlier securities given by the company shall continue to
cover the enhanced limit of Rs.170.800 millions Rate of interest, margin and other terms and conditions as
per the agreement. All other terms and conditions remain the same. |
Subject is Manufacturer of Printed Circuit Boards and Packaging
Components.
It also provides services and Software like
Profile
The
company would broaden its customer base which include several Fortune 500
Companies like General Electric, Nortel Networks, Adaptec, Solectron, Systec
Corporation and Garrett Communications. It serve in very highly technical and
precision based fields like Telecommunications, Power Generation, Medical ,
Global Information Systems and Industrial Electronics.
To give a little background Sienna, located in
Subject’s competencies encompass a wide range of Contract Manufacturing
Solutions from actual Manufacturing to Manufacturing Optimization Software
Tools. sTheir capabilities include Printed Circuit Board Assemblies, Cable
Assemblies, Precision Turned Components, Sheet Metal Components and Enclosures,
Fabrications and Assemblies. Their services between their operations in the US
and India include protos, pilot builds, volume production, Testing, System
Integration and Turnkey Solutions, Warehousing and Logistics and even order
fulfilment to locations across the globe.
As far as quality is concerned, subject is a ISO 9001:2000 Certified company
and is in the process of QS 9000 and TS 16949 Implementation(Target Date: Nov
03). In addition the company has in place, several Six Sigma tools and
techniques and are actively pursuing 6 Sigma Achievement in its Manufacturing
Operations.
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
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.40.84 |
|
|
1 |
Rs.80.47 |
|
Euro |
1 |
Rs.54.32 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP
CAPITAL |
1~10 |
3 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
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
|
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 |