MIRA
INFORM REPORT
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Report Date : |
22.06.2007 |
IDENTIFICATION DETAILS
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Name : |
PARAS WIRES PRIVATE LIMITED |
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Registered Office : |
Plot No.6-B, 1st Cross, 1st Phase, Kumbalagodu Industrial
Estate, Mysore Road, Bangalore-560074, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.03.1987 |
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Com. Reg. No.: |
08-8265 |
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CIN No.: [Company
Identification No.] |
U27104KA1987PTC008265 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRP00632C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing of Wire and Cables. |
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 20000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track records. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No.6-B, 1st Cross, 1st Phase, Kumbalagodu,
Industrial Estate, Mysore Road, Bangalore-560074, |
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Tel. No.: |
91-80-28437205 / 28437387 |
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Mobile No.: |
91-9845017044 |
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Fax No.: |
91-80-28437831 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rawathmalji M. Surana |
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Designation : |
Director |
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Address : |
304, Meenaxi Apartment, |
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Date of Birth/Age : |
24.09.1922 |
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Date of Appointment : |
26.03.1987 |
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Name : |
Ms. Usha Surana |
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Designation : |
Director |
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Address : |
301, Meenaxi Apartment, |
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Date of Birth/Age : |
29.08.1965 |
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Date of Appointment : |
27.11.1987 |
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Name : |
Mr. Anil Surana |
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Designation : |
Director |
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Address : |
301, Meenaxi Apartment, |
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Date of Birth/Age : |
11.08.1957 |
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Date of Appointment : |
11.05.1996 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Anil Surana |
1600 |
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Mr. Ranathmalji Surana |
2325 |
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Ms. Usha Surana |
2600 |
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Mr. Surana R M |
2300 |
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Mr. Surana P M |
500 |
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Ms. Minu Surana |
195 |
All the shares are held by directors or their relatives.
BUSINESS DETAILS
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Products : |
Communication and Auto Cables,
Power Cords and Wiring Harness, Cables developed for Defence, Instrumentation
Cables, Coaxial Cables, Copper Braids and Flexible Braids. |
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Exports : |
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Countries : |
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GENERAL INFORMATION
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Line of Business : |
Manufacturing of Wire and Cables. |
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Bankers : |
INDIAN OVERSES BANK, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
H R Venkatesh Prasad Chartered Accountants |
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Address : |
578, 43, Cross 1st Main, 8A Block, Jayanagar, Bangalore-560074,
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000 |
Equity Shares |
Rs.100/- each |
Rs.2.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9520 |
Equity Shares |
Rs.100/-
each |
Rs.0.952
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.952 |
0.952 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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4.223 |
3.063 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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5.175 |
4.015 |
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LOAN FUNDS |
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1] Secured Loans |
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6.170 |
1.988 |
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2] Unsecured Loans |
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4.842 |
3.203 |
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TOTAL BORROWING |
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11.012 |
5.191 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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16.187 |
9.206 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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7.448 |
4.524 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.001 |
0.001 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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2.851 |
1.921 |
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Sundry Debtors |
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12.705 |
5.221 |
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Cash & Bank Balances |
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0.168 |
0.075 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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1.341 |
0.486 |
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Total
Current Assets |
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17.065 |
7.703 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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7.335 |
2.781 |
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Provisions |
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0.992 |
0.242 |
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Total
Current Liabilities |
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8.327 |
3.023 |
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Net Current Assets |
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8.738 |
4.680 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.001 |
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TOTAL |
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16.187 |
9.206 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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44.798 |
24.855 |
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Other Income |
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1.111 |
1.440 |
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Total Income |
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45.909 |
26.295 |
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Profit/(Loss) Before Tax |
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1.910 |
0.704 |
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Provision for Taxation |
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0.750 |
0.242 |
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Profit/(Loss) After Tax |
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1.160 |
0.462 |
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Earnings in Foreign Currency : |
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Total Earnings |
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16.355 |
8.622 |
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Expenditures : |
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Financial charges |
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0.755 |
0.189 |
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Depreciation & Amortization |
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0.555 |
0.431 |
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Other Expenditure |
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41.379 |
24.351 |
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Total Expenditure |
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42.689 |
24.971 |
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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 |
(%) |
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2.52 |
1.75 |
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Net Profit Margin (PBT/Sales) |
(%) |
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4.26 |
2.83 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.79 |
5.75 |
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Return on Investment (ROI) (PBT/Networth) |
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0.36 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.74 |
2.04 |
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Current Ratio (Current Asset/Current Liability) |
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2.05 |
2.55 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Corporation identity number or foreign company registrations number of the company |
U27104KA1987PTC008265 |
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Name of the company |
PARAS WIRES PRIVATE LIMITED |
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Address |
Plot No.6-B, 1st Cross, 1st Phase, Kumbalagodu
Industrial Estate, Mysore Road, Bangalore-560074, |
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This Form is for |
Modification of charge |
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Type of Charges |
Immovable property |
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Particular of the charge holder |
Indian Oversea Bank, 43, |
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Nature or description of the instrument creating charge |
On demand promissory note for Rs.1.100 millions and letter of
hypothecation of book debts, stock in trade and plant and machinery . |
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Date of the instrument creating charge |
10.01.2007 |
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Amount Secure by the charge |
Rs.2.600 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest: 10.5% per annum Terms of repayment : Increase of Rs.1.100 millions (from existing Rs.1.500 millions)
repayable in 3 months from the date of sanction. Extent and operation of the charge : Full |
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Particulars of the Property charged |
Land and building at 6-B, KubalGodu Industrial Estate, Bangalore-560074 Factory shed B-53, KumbalGodu Industrial Estate, Bangalore-560074 Hypothecation of stock of raw materials, work in progress, finished
goods, receivables etc. Hypothecation f plant and machinery at factory. |
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Date of latest modification |
02.08.2006 |
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Particulars of present modification |
Adhoc CC limit against hypothecation of stock and receivables – limit
enhanced to rs.2.600 millions from existing level of Rs.1.500 millions. |
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Name of the company |
PARAS WIRES PRIVATE
LIMITED |
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Presented By |
INDIAN OVERSES BANK, |
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1) Date and description of instrument creating the change |
Date : 21.09.1990 Letter of hypothecation of stock and letter of hypothecation of machinery (Both the above pertain to same charge) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.0.125 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 |
stocks and machineries |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at 5.5% over RBI rate with a minimum of 15.5% per annum. Margin : 25% |
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5) Name and Address and description of the person entitled to the charge. |
INDIAN OVERSES BANK, |
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6) Date and brief description of instrument modifying the charge |
Date 23.08.2004. Letter of hypothecation (For securing machineries/ goods/ book debts). Extension of equitable mortgage by deposit of title deeds – Bank recital confirming deposit of title deeds. (Both the above pertain to 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. |
By the above, the amount secured by the charge stands increased froi Rs.0.900 millions ot Rs.3.500 millions Rate of interest : CC – At BPLR+0.75% presently 11.75% per annum with periodical rests and/or at such rates and rests as may be specified by the bank from time to time. UBD : 8% per annum with periodical rests and / or at such rates and rests as maybe specified by the bank from time to time. Overdue interest : 12% per annum. Margin : 25% on UBD / Stocks and 50% on book debts Repayment : on demand Security of stocks, goods, book debts, receivables, machineries etc. and company’s immovable properties situated at Plot No.6-B, KIADB Industrial Area, Kumbalgodu 1st Phase, Bangalore already obtained and now obtained both present and future are available for the entire credit facilities of Rs.3.500 millions. |
Website Details :
Subject is a growth oriented, state-of-the-art company known throughout the country for its quality Wires and Cables, engineering expertise and manufacturing capabilities. An inherent vigorous desire to grow is the key factor in the several expansions of Paras Wires since their inception.
Their company is an ISO 9001 : 2000 registered company manufacturing a
wide range of Wires and Cables. The range covers Communication and Auto Cables,
Power Cords and Wiring Harness, Cables developed for Defence, Instrumentation
Cables, Coaxial Cables, bare and tinned copper flexibilities of very fine wire,
braids, screened and armoured equipment and hook-up wires and cables for panel
control, etc. One may get single core, paired core or twisted core Wires and
Cables under one roof of Paras Wires.
Their company is aware of today and tomorrow's needs and they are able
to put their experience and knowledge to assist the customer in choosing the
right product for a specalized application. They are fully committed to design
and manufacture excellent quality and reliability in each of their products and
this has led to the countrywide acceptance of their products. They follow
strict Quality Standards, which are highest in the industry. They exercise
total control over the engineering and quality of the products they
manufacture, from raw material procurement to the finished products.
Their delivery is the best in the industry. Their manufacturing
facilities are programmed to ensure prompt deliveries and they also provide
same day dispatch service for their certain stock products. The products of
their company are backed by expertise, quality control and services. The
manufacturing process is technically controlled at every stage.
Today their company enjoys the confidence and patronage of innumerable
reputed consumers, who are fully satisfied with the uncompromising quality of
their products. The company is regularly supplying various special cables to MNCs
like L&T, TYCO, AMPHENOL, MICO, AMTREX,
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.75 |
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1 |
Rs.81.17 |
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Euro |
1 |
Rs.54.59 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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