MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
CHOLA
PUMPS PRIVATE LIMITED |
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Registered Office : |
202, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.09.1989 |
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Com. Reg. No.: |
18-3027 |
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CIN No.: [Company
Identification No.] |
U29120TZ1989PTC003027 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBC03044G |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers
of power driven and centrifugal pumps
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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
515076 |
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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 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 : |
202, |
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Tel. No.: |
91-422-2666133 |
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Fax No.: |
91-422-2531437 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. G
Rajendran |
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Designation : |
Director
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Address : |
46 and
47, ATT Colony, |
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Date of Birth/Age : |
21.04.1961 |
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Date of Appointment : |
11.09.1989 |
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Name : |
Mr. C
Velumani |
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Designation : |
Managing
Director |
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Address : |
46 and
47, ATT Colony, |
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Date of Birth/Age : |
15.12.1950 |
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Date of Appointment : |
11.09.1989 |
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Name : |
Ms. S
Asha Geetanjali |
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Designation : |
Director
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Address : |
46 and
47, ATT Colony, |
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Date of Birth/Age : |
31.12.1964 |
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Date of Appointment : |
13.10.2001 |
KEY
EXECUTIVES
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Name
: |
M/s S
Srinivasan and Co. |
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Designation
: |
Company
Secretary |
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Address
: |
“ |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
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Mr. C
Velumani |
550000 |
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mr. G
Rajendran |
150000 |
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Mr. G
Selvarj |
150000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of power driven and centrifugal pumps
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Products : |
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GENERAL INFORMATION
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Bankers : |
State
Bank of Standard
Chartered Bank, 19, Rajaji Salai, Chennai – 600 001, IDBI Bank
Limited, |
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Facilities : |
Subject
enjoys mortgage facility of Rs. 86.500 millions from State Bank of Subject
enjoys mortgage facility of Rs. 30.000 millions from Standard Chartered Bank
dated 26.05.2006 |
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Banking Relations : |
Satisfactory
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Auditors : |
M/s K
S G Subramanyam and Company Chartered
Accountants |
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Address : |
2nd Floor, United Shopping
Complex, 94 / |
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Associates/Subsidiaries
: |
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CAPITAL STRUCTURE
As on 31.03.2006
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
As on 31.03.2002
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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250000 |
Equity
Shares |
Rs. 10/- each |
Rs. 2.500 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS
FUNDS |
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1]
Share Capital |
10.000 |
10.000 |
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2]
Share Application Money |
0.000 |
0.000 |
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3]
Reserves & Surplus |
118.769 |
84.719 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
128.769 |
94.719 |
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LOAN
FUNDS |
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1]
Secured Loans |
44.158 |
39.165 |
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2]
Unsecured Loans |
11.981 |
13.950 |
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TOTAL BORROWING |
56.139 |
53.115 |
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DEFERRED
TAX LIABILITIES |
1.228 |
8.328 |
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TOTAL |
186.136 |
156.162 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
76.469 |
56.741 |
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Capital
work-in-progress |
0.000 |
0.000 |
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INVESTMENT |
0.007 |
0.007 |
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DEFERREX
TAX ASSETS |
0.000 |
0.000 |
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CURRENT
ASSETS, LOANS & ADVANCES |
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Inventories |
126.419
|
121.268 |
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Sundry
Debtors |
14.614
|
16.250 |
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Cash
& Bank Balances |
21.840
|
16.807 |
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Other
Current Assets |
0.000
|
0.000 |
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Loans
& Advances |
14.240
|
9.879 |
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Total Current
Assets |
177.113
|
164.204 |
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Less : CURRENT LIABILITIES &
PROVISIONS |
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Current
Liabilities |
51.691
|
48.895 |
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Provisions |
15.762
|
15.895 |
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Total Current
Liabilities |
67.453
|
64.790 |
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Net Current Assets |
109.660
|
99.414 |
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MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
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TOTAL |
186.136 |
156.162 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
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Sales
Turnover |
546.968 |
494.347 |
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Other Income |
2.844 |
4.149 |
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Total
Income |
549.812 |
498.496 |
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Profit/(Loss) Before Tax |
57.017 |
54.382 |
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Provision for Taxation |
11.400 |
13.115 |
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Profit/(Loss) After Tax |
45.617 |
41.267 |
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Imports
: |
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Total
Imports |
19.227 |
0.000 |
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Expenditures : |
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Depreciation & Amortization |
9.131 |
8.048 |
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Financial charges |
5.206 |
0.000 |
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Other expenses |
459.586 |
456.461 |
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Total
Expenditure |
473.923 |
464.509 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT /
Total Income |
(%) |
8.29
|
8.27 |
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Net Profit Margin (PBT/Sales) |
(%) |
10.42
|
11.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
22.48
|
24.61 |
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Return on Investment (ROI) (PBT/Networth) |
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0.44
|
0.57 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.96
|
1.24 |
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Current Ratio (Current Asset/Current Liability) |
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2.62
|
2.53 |
LOCAL AGENCY FURTHER INFORMATION
Bankers
Charges Report as per Registry
Name of the Company : Chola Pumps Private
Limited
Presented by : -- Chola Pumps Private Limited and State Bank of
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1.
Date and description of the instrument creating
or evidencing the charge |
02.05.1990 a.
General Agreement for grant of small industrial advances and hypothecation of
movables, book debts and other assets. b.
Ancillary Agreement No. 1 c.
Ancillary Agreement No. 3 all
dated 02.05.1990 |
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2.
Amount secured by the charge /amount owing on security of the charge |
Rs.
1.600 millions Together
with all interest, discount, commission, charges, costs and expenses payable
to or incurred by the bank |
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3.
Short Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be given
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All present
and future goods, pig iron, rough castings, motors, pumpsets, book dents,
movables, other assets including documents of title goods, outstanding
monies, receivables, claims, bills, invoices, documents, contract,
engagements, securities, investments, rights and the present and all future
machineries wherever lying, stored and kept and whether in India or elsewhere
throughout the world whether in possession of the company or of the bank or
of any third party including those in the course of shipment, transit or
delicourse of shipment, transit or delivery by the way of first charge. |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Rate
of Interest : 1% below the SBAR with a minimum of 15.5% p.a. Margin
: 25% Repayable
on Demand |
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5.
Names, address and description of the persons entitled to charge |
State
Bank of Commercial
Branch, |
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6.
Date and brief description of instrument modifying the charge |
17.08.2005 Supplemental
agreement of hypothecation of goods and assets for increase in the overall
limit dated the 17.08.2005. Letter
regarding the grant of individuals limit within the overall limit on the
17.08.2005 Extension
of mortgage by constructive delivery of title deeds on the 17.08.2005
(memorandum of deposit for creation of further charge for Term loan / Overall
limit where the initial charge is created by the way of mortgage by deposit
of title deeds) |
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7. Particular of modification specifying the
terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
Pursuant
to the above supplemental agreement and extension of mortgage, the amount
secured by the charge in favour of the bank on company goods, book debts,
movable and all plant and machinery present and future including the existing
second charge on plant and machinery and immovable properties of the company
situated at Saravanampatti Village, Coimbatore in (i) SF Nos. 53/2A and
52/2A2 admeasuring 1.27 acres and 89 sq. ft. and (ii) SF Nos. 51/2A2
admeasuring 92 cents and 272 sq. ft. within specified boundaries stands
enhanced from Rs. 54.000 millions to Rs. 86.500 millions as per details given below:
Rate
of Interest is at 0.75% over SBAR with a minimum of 11% p.a. Margin:
Raw material, stock-in-process and finished goods – 25%, Book debts /
receivables (cover period 45 days) – 40%, Letter of Credit and Bank Guarantee
– 10% There
is no change in the operation of the charge in other respect. All the
terms and conditions remain the same The
charge operates as security for the due repayment of all liabilities in
respect of the aforesaid limits / loans including costs, charges and expenses
and all other monies due to the bank under the respective agreements. |
Bankers
Charges Report as per Registry
Name of the Company : Chola Pumps Private
Limited
Presented by : -- Chola Pumps Private Limited and Industrial
Development Bank of
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1.
Date and description of the instrument creating
or evidencing the charge |
18.06.2005 Agreement
of hypothecation goods and assets dated 18.06.2005 |
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2.
Amount secured by the charge /amount owing on security of the charge |
Rs.
25.000 millions |
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3.
Short Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be given
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Pursuant
to the execution of the aforesaid agreement the terms loan of Rs. 25.000
millions is secured by a charge on all plant and machinery to be acquired out
of the loan to be disbursed by the bank and all other movable assets of the
borrower including but not limited to documents of title to the goods,
outstanding monies, receivables including receivables by way of cash
incentive scheme or any other scheme claims including claims by way of refund
of customs /excise duties under the Duty Drawback Credit Scheme or any other
scheme, bills, invoices documents, contracts, insurance policies, guarantees,
engagements, securities, investments and rights and the present machinery
listed in annexure s no. 1 to 14 aggregating to Rs. 33.500 millions hereunto
and all future machinery belonging to or in the possession of or under the
control of the borrower wherever lying stored and kept and whether in
possession of the borrower or of the bank or if any third party whether in
India or elsewhere throughout the world. |
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4.
Gist of the terms and conditions and extent and operation of the charge. |
Rate
of Interest – 7.25% p.a. fixed for one year. Interest to be reset at the end
of one year and every year thereafter. Margin
– 25% Repayment
– five years, repayable in 60 equal monthly instalments. The first due
payable at the end of the one month from date of first drawn down. Interest
payable at the end of every month. The
company is bound at its own risk and expenses, to keep the hypothecated
assets charged to the bank as security in good repair and fully insured
against all risks. The
company shall at all times during the continuance of the loan / limit shall
keep the hypothecated assets in good working conditions and substantial state
of repairs and shall also pay all rent, rates and taxes and assessments
present as well as future payable in respect of the same immediately as and
when they become due and also pay all electricity charges, municipal rates
and all other charges and assessments, connected with the business regularly
and punctually. The
bank shall at all times without any notice but at the company risk and
expenses enter any place where the hypothecated assets may be and inspect,
value, insure, superintend, dispose and or take particulars of all or any
part of the hypothecated assets and check any statements, accounts, reports,
information and to do all acts, deeds and things deemed necessary by the bank
including breaking open of any place where the hypothecated assets and the
book of accounts or other documents relating to the hypothecated assets may
be lying or stored or kept. The
bank shall have the power to take possession and / or to appoint receives or remove
the hypothecated assets and also books of accounts, papers, documents and
vouchers and other records relating thereto and give notice and demand to
borrower and other parties liable thereto to demand, sue for, recover,
receive and give receipts and discharges for the same and sell or realise,
dispose of by public auction or private contract or otherwise dispose of all
or any part of the said hypothecate assets or claims under this security if
the company fails to repay the amount due on demand. The
company has declared that all the hypothecated assets are the absolute
property of the company at its sole disposal and are free from any prior lien
or encumbrance, mortgage, charge except which have been notified to the bank The
charge operates as security for the due repayment of all liabilities in
respect of the aforesaid loan including costs, charges and expenses and all
other monies due to the bank under the aforesaid agreement. The
bank shall at all time without any notice, but at the company’s risk and
expenses enter any place where the hypothecated assets may be and inspect,
value, insure, superintend, dispose and or to take particulars of all or any
part of the hypothecated assets and check any statements, accounts, reports
information and to do all acts, deeds and things deemed necessary by the bank
including breaking open of any place where the hypothecated assets and the
books of accounts or other documents relating to the hypothecated assets may
be lying or stored or kept. The
bank shall have the power to take possession and / or to appoint receives or
remove the hypothecated assets and also books of accounts, papers, documents
and vouchers and other records relating thereto and give notice and demand to
borrower and other parties liable thereto to demand, sue for, recover,
receive and give receipts and discharges for the same and sell or realise,
dispose of by public auction or private contract or otherwise dispose of all
or any part of the said hypothecate assets or claims under this security if
the company fails to repay the amount due on demand. The
company has declared that all the hypothecated assets are the absolute
property of the company at its sole disposal and are free from any prior lien
or encumbrance, mortgage, charge except which have been notified to the bank The
charge operates as security for the due repayment of all liabilities in
respect of the aforesaid loan including costs, charges and expenses and all
other monies due to the bank under the aforesaid agreement. |
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5.
Names, address and description of the persons entitled to charge |
Industrial
Development Bank of India Limited Registered
Office : Branch
Office : Ground
Floor, |
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6.
Date and brief description of instrument modifying the charge |
Nil |
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7.
Particular of modification specifying the terms and conditions or the extent
or operation of the charge in which modification is made and the details of modification |
Nil |
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.40.84 |
|
|
1 |
Rs.80.47 |
|
Euro |
1 |
Rs.54.32 |
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 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|