MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MEL SYSTEMS AND SERVICES LIMITED |
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Registered Office : |
Plot # 173, Developed Plots Estate for Electrical, Electronic & Instrument
Industries, Perungudi, Chennai - 600 096, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.09.1990 |
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Com. Reg. No.: |
18-19611 |
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CIN No.: [Company
Identification No.] |
U30006TN1990PLC019611 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM01641D |
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PAN No.: [Permanent
Account No.] |
AAACM4513F |
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Legal Form : |
A Closely held public limited liability company. |
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Line of Business : |
Manufacturer of PCB Tester and Automated Test Equipments. |
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 110000 |
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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 / Factory : |
Plot # 173, Developed Plots Estate for Electrical, Electronic & Instrument
Industries, Perungudi, Chennai - 600 096, |
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Tel. No.: |
91 - 44 - 24961903 / 904 |
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Fax No.: |
91 – 44 - 24960488 |
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E-Mail : |
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Website : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. M. M. Murugappan |
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Designation : |
Director |
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Address : |
No. 12, |
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Date of Birth/Age : |
12.11.1955 |
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Date of Appointment : |
31.12.2003 |
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Name : |
Mr. Natarajan Ramachandran |
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Designation : |
Managing Director |
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Address : |
Flat No. 3 A, Coral Sands, 54B, |
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Date of Birth/Age : |
17.06.2001 |
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Date of Appointment : |
01.04.2001 |
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Name : |
Mr. R. Eswaran |
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Designation : |
Director |
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Address : |
3 D. Gayathri, |
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Date of Birth/Age : |
29.08.1941 |
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Date of Appointment : |
24.12.2002 |
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Name : |
Mr. Ranganathapuram Vaidyanathan Srinivasan |
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Designation : |
Director |
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Address : |
No. 11, [Old No. 10], Anandam Colony, South Cannal Bank Road,
Madeveli, Chennai – 600028, |
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Date of Birth/Age : |
05.07.1946 |
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Date of Appointment : |
31.12.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ambadi Enterprises Limited |
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50000 |
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Narasimhalu A D |
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10000 |
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Chandrasekaran S |
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3000 |
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Kala Ramachandran |
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177585 |
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Narayanamurthy H |
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8000 |
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Ramachandran N |
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30001 |
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Sivaramakrishnan N |
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5000 |
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Srikrishnan A K |
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2000 |
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Srinivasan T |
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30001 |
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Jayalakshmi Srinivasan |
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128500 |
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Kamakshi |
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6480 |
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Elangovan |
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2500 |
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Dilip J Rane |
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3500 |
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Kannamma S Raman |
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5000 |
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Chockalingam M |
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6670 |
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Sundararaman |
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5000 |
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Pethachi M |
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6660 |
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Venkateswaran M K |
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10000 |
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Lim Hock Boon |
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25000 |
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Muthuswamy K |
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5000 |
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Radhika Shankar |
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10000 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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10.04 % |
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Directors of relatives of directors |
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39.99 % |
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Other top fifty shareholders |
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49.17 % |
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Others |
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0.80 % |
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Total |
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100.00
% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of PCB Tester and Automated Test Equipments. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
State Bank Of Commercial Branch, Guindy, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shanker Giri Prabhankar Chartered Accountants |
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Address : |
Guhalaya, Flat B – 7, 179, |
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Associates/Subsidiaries : |
Melss Automation Limited CIN No.: U29196TN2002PLC049505 |
CAPITAL STRUCTURE
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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602805 |
Equity Shares |
Rs. 10/- each |
Rs. 6.028
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
30.09.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
6.028 |
6.028 |
6.028 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
22.070 |
11.996 |
10.314 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
28.098 |
18.024 |
16.342 |
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LOAN FUNDS |
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1] Secured Loans |
7.440 |
10.139 |
13.112 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
7.440 |
10.139 |
13.112 |
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DEFERRED TAX LIABILITIES |
1.919 |
2.009 |
1.462 |
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TOTAL |
37.457 |
30.172 |
30.916 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
15.680 |
10.519 |
9.639 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.913 |
0.842 |
1.028 |
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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 |
8.684
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8.308 |
8.453 |
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Sundry Debtors |
33.911
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23.314 |
23.252 |
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Cash & Bank Balances |
2.282
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1.572 |
0.925 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
2.742
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8.788 |
8.086 |
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Total
Current Assets |
47.619
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41.982 |
40.716 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.130
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15.082 |
20.467 |
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Provisions |
3.625
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8.089 |
0.000 |
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Total
Current Liabilities |
27.755
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23.171 |
20.467 |
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Net Current Assets |
19.864
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18.811 |
20.249 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
37.457 |
30.172 |
30.916 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
30.09.2003 |
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Sales Turnover |
92.506 |
82.873 |
37.146 |
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Other Income |
4.250 |
3.986 |
13.372 |
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Total Income |
96.756 |
86.859 |
50.518 |
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Profit/(Loss) Before Tax |
21.571 |
4.511 |
2.695 |
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Provision for Taxation |
8.109 |
2.647 |
1.845 |
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Profit/(Loss) After Tax |
13.462 |
1.864 |
0.850 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
18.776 |
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Employees Cost |
0.000 |
0.000 |
11.942 |
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Administrative Expenses |
0.000 |
0.000 |
14.787 |
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Raw Material Consumed |
14.841 |
11.434 |
0.000 |
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Consumption of stores and spares parts |
14.766 |
15.582 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.569 |
1.512 |
0.000 |
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Salaries, Wages, Bonus, etc. |
19.974 |
20.788 |
0.000 |
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Managerial Remuneration |
2.202 |
5.941 |
0.000 |
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Payment to Auditors |
0.095 |
0.192 |
0.000 |
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Interest |
1.562 |
1.572 |
1.267 |
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Insurance Expenses |
0.279 |
0.218 |
0.000 |
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Power & Fuel |
0.780 |
0.931 |
0.000 |
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Depreciation & Amortization |
10.142 |
8.664 |
1.051 |
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Other Expenditure |
9.974 |
15.517 |
0.000 |
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Total Expenditure |
75.184 |
82.351 |
47.823 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
30.09.2003 |
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PAT / Total Income |
(%) |
13.91
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2.15 |
1.68 |
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Net Profit Margin (PBT/Sales) |
(%) |
23.32
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5.44 |
7.26 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
34.08
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8.59 |
5.35 |
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Return on Investment (ROI) (PBT/Networth) |
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0.77
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0.25 |
0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.25
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1.85 |
2.05 |
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Current Ratio (Current Asset/Current Liability) |
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1.72
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1.81 |
1.99 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Buildings
- Plant and Machinery
- Office Equipments
- Lab Equipments
- Furniture and Fittings
- Vehicles
In the two divisions, namely In cirfuit Component Machine
Division and Trading Activity, the nature of business is supplying of capital
goods to mainly to the electronics industry and defence. The growth is linked
to the growth of Hardware industries in
In the recent past, the company has taken several steps to increase the turnover and improve the profitability. The new activities taken by the company in the areas of :
- Developing simulators for defence
- Developing electronic products for defence.
- Adding agencies in the are of telecommunication testing
- Manufacture of confirmed coating remover equipments used in the electronics production in the defence
- Manufacturing facility for fixtures used in automatic test equipment
Bankers Charges
Report as per Registry
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Name of the company |
MEL SYSTEMS AND
SERVICES LIMITED |
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Presented By |
STATE BANK OF |
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1) Date and description of instrument creating the change |
20.12.1995 General Agreement
for the grant of Medium advances to small scale industries and hypothecation
of movables, book debts and other assets. Ancillary
agreement for medium term loan against pledge movables machineries. General agreement
for the grant of Small Industrial Advances and Hypothecation of Movables,
Book Debts and other assets. Agreement for the
grant of Small Industrial Advances. |
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2) Amount secured by the charge/amount owing on the securities of charge |
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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 / Pledge
of the company’s entire goods, movable and other assets such as book debts,
outstanding moneys, receivables and company’s machinery preset and future. Mortgage secured
by deposit of title deeds of developed plot no. 173 situated in the
Industrial Estate, for electronics and instrument industries, |
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4) Gist of the terms and conditions and extent and operation of the charge. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank Of |
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6) Date and brief description of instrument modifying the charge |
Nil |
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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. |
Nil |
AS PER WEBSITE
MEL Systems and Services Limited, known fondly among
customers as MEL or MELSS, was formerly a division of the USD 1.5 billion
Murugappa Group. MELSS has been at the forefront of cutting edge technology ever
since 1982. Over the last two decades they at MELSS have acquired expertise and
specialized knowledge in many areas. But, what makes them stand out, is their
deep commitment to support and the values and principles that they have
inherited from their parent group. Their competencies are spread across a wide
range of processes and verticals.
Processes : Production, Inspection, Testing, Rework, Repair,
Training, Simulation, Real Time Process Control and Automation.
Verticals :
Competencies : Technology and Process Consulting, Pre-Sales
support, Manufacturing & Sourcing, Supply of suitable equipment, Software
Development, Customization, Design & System Integration, Implementation and
Post Implementation Support.
MELSS
Automation Limited is a subsidiary company of MELSS,
offering turnkey automation projects and process control systems for the
Manufacturing and Process industries.
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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MELSSWIZARD / BOARDWIZARD -
PCB Diagnostic Testers |
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Conformal Coating remover |
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Test Fixtures (Bed of Nails)
Vacuum and Mechanical |
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TRI, |
MDAs / ICTs / Functional
Testers |
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Bare Board Testers, Manual
& fully automated Universal Grid Test Systems |
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International Test
Technologies, |
Functional test and Debug
solution for CPU based boards |
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Spring Contact Probes and
Receptacles |
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Fixture development services
for complex boards |
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Cable Testing, Backplane
Testing, Connector Testing, Wire Testing, Wiring Analysers, Harness Testers
and Power Chord Testers. |
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Chroma ATE, |
ATE's for testing power supplies,
AC/DC sources, Transformer Testers, Power analysers and Electronic loads |
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Pacific Power |
High Power AC Sources,Frequency /voltage converters, AC test
power systems, custom design & packaging |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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TRI, |
Automatic Optical Inspection
Systems for Solder Paste Inspection / Pre- Reflow Inspection / Post Reflow
Inspection, X-ray Inspection Systems |
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Automatic Optical Inspection
Systems for Bare PCB Inspection |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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OK / |
BGA / CSP / Array Package
Rework, Smartheat SMT Rework, Soldering Stations, Fluid Dispensing and Fume
Extraction |
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Automated Production Systems
Inc. |
Screen Printers, Pick and
Place Machines and Reflow Ovens for Low Volume SMT Assembly |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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BPM Microsystems, |
Device Programmers - Single site
and Concurrent, Automated Programmers & In system Programmers |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Vibration Test Systems |
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Temperature & Humidity
Test Chambers, Environmental Stress Screening Chambers, HALT / HASS Systems,
Thermal Shock Systems, Combined Vibration & Temperature Testing, Dust
Chambers. |
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Ling Electronics (Qualmark) . |
Electro dynamic Shakers /
Vibration Testers, Vibration Test Systems, HALT / HASS Test chambers with
combined Vibration testing. |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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EXFO, |
Network testing - DWDM Analyzers,
Fiber characterization Test Instrumentations (PMD,CD), Transmission analyzers
(SDH, Nex gen SONET/SDH), Outside plant Test and Measurement solutions (Laser
Source, Power meter, Automated test sets) |
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RF Test Instruments - VXI
Modules, Switches |
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SAGE Instruments, |
Testers for Voice over IP,
Packets, DSL |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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FISO, |
Fiber Optic Stress, Strain,
Temperature sensors and signal conditioners |
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EXFO, |
R&D and Manufacturing
System Testing, Optical Layer and Ethernet Testing, Transport and datacom
testing, Fiber and Waveguide analyzers, Photonics manufacturing. |
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IPF |
Fiber Optic - Raman Amplifiers
/ EDFAs |
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Fiber Bragg Gratings, Fiber
Bragg Grating Writing Systems and Dispersion Compensators |
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A Wide Product range catering to
Universities, Research Laboratories, Photonics Laboratories |
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Distributed Leak Detection
(Pipes/Cables) |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Custom ATEs |
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Simulators |
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Turnkey Projects |
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Radar Test Systems,
Communication Test Systems, Engine Test Systems |
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Functional and In-circuit ATEs
for PCBs and LRUs, Lasar Simulator Software |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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Replacement of Legacy Testers
and Rehost of TPSs. Redesign / Upgradation / Modernisation of Obsolete Military
Electronic Systems including ATE's & Simulators, Legacy System Repair,
Revamp, Software Rehost, AMC etc. |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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American Systems, |
Virtual Maintenace trainers
formilitary aircrafts, Web enabled Computer based Training modules (CBT's) |
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MANUFACTURER |
MANUFACTURER PRODUCTS /
SERVICES |
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MELSS AUTOMATION LIMITED, |
Design, Engineering and
Execution of Customized Automation and Control Projects with Turnkey
responsibility |
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PLC based SCADA and Factory
Automation Systems |
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Batching, Industrial Weighing and
Material Handling Automation Systems |
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Custom Software Development,
Mini ERP Implementation for Process / Manufacturing Sector |
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End to End Turnkey Solutions
for Tea, Sugar, Ferro Alloy and similar process industries |
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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.40.97 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.54.56 |
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 |
YES |
|
--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 |
|