MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
DECO EQUIPMENT PRIVATE LIMITED |
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Registered Office : |
C – 38, Hebbal Industrial Area, Metagalli, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
15.07.1987 |
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Com. Reg. No.: |
008489 |
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CIN No.: [Company
Identification No.] |
U29150KA1987PTC008489 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRD02219A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of heavy and material handling equipments and office
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 109744 |
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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 well-established and reputed company having satisfactory
track. Directors are reported as experience 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 : |
C – 38, Hebbal Industrial Area, Metagalli, |
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Tel. No.: |
91-821-2514793 |
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Fax No.: |
91-821-2510967 |
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E-Mail : |
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Factory : |
162, Door N Udayagiri, |
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Factory : |
C -38, K. S. S. I. D. C. Shed, Metagalli, |
DIRECTORS
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Name : |
Mr. Deric Fernances |
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Designation : |
Managing Director |
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Address : |
27 / A, 4th Main, 3rd Block, Jayalakshmipuram, |
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Date of Birth/Age : |
08.12.1956 |
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Date of Appointment : |
15.07.1987 |
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Name : |
Mrs. Delphine Fernandes |
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Designation : |
Director |
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Address : |
27 / A, 4th Main, 3rd Block, Jayalakshmipuram, |
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Date of Birth/Age : |
15.11.1964 |
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Date of Appointment : |
26.03.2001 |
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Name : |
Mr. Albert Fernandes |
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Designation : |
Director |
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Address : |
12/36, Jyoti Nilaya, Sagar 577 201, Shimoga, |
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Date of Birth/Age : |
01.04.1951 |
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Date of Appointment : |
21.04.1992 |
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Name : |
Mr. Francis Manohar |
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Designation : |
Director |
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Address : |
C – 367, Bannimantap Extension, |
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Date of Birth/Age : |
26.06.1962 |
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Date of Appointment : |
20.08.2004 |
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Name : |
Mr. Petric Fernandes |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of equity
Shares |
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Mr. Deric Fernandes |
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98.001 |
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Mr. Harry Fernandes |
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308 |
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Mr. Francis Manohar |
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721 |
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Mrs. Delphine Fernandes |
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20,500 |
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Mr. Albert Fernandes |
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470 |
Equity share breakup (percentage of total equity)
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S. No. |
Category |
Percentage |
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1 |
Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of heavy and material handling equipments and office
equipments. |
GENERAL INFORMATION
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Bankers : |
Sate Bank of Commercial Branch, #7, “MRN Signa Ture” |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M /s Nagaraju and Company Chartered Accountants |
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Address : |
No 729/2, 2nd Floor, 3rd Cross, Kathwadipura,
Agrahara, K. R. Mohalla, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity shares |
Rs. 100/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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120000 |
Equity shares |
Rs. 100/-
each |
Rs. 12.000
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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12.000 |
12.000 |
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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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15.436 |
12.660 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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27.436 |
24.660 |
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LOAN FUNDS |
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1] Secured Loans |
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54.343 |
41.352 |
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2] Unsecured Loans |
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4.655 |
0.678 |
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TOTAL BORROWING |
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58.998 |
42.030 |
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DEFERRED TAX LIABILITIES |
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3.737 |
2.892 |
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TOTAL |
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90.171 |
69.582 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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68.133 |
46.438 |
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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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0.002 |
0.002 |
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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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15.054 |
13.249 |
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Sundry Debtors |
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7.151 |
6.312 |
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Cash & Bank Balances |
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0.077 |
0.279 |
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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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10.679 |
13.844 |
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Total
Current Assets |
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32.961 |
33.684 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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10.820 |
10.543 |
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Provisions |
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0.104 |
0.000 |
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Total
Current Liabilities |
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10.924 |
10.543 |
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Net Current Assets |
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22.036 |
23.142 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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90.171 |
69.582 |
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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 (Estimated) |
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90.000 |
70.000 |
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Total Income |
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90.000 |
70.000 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.54 |
2.13 |
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Current Ratio (Current Asset/Current Liability) |
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3.01 |
3.19 |
LOCAL AGENCY FURTHER INFORMATION
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Corporation identity number or foreign company registrations number of the company |
U29150KA1987PTC008489 |
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Name of the company |
DECO EQUIPMENT PRIVATE LIMITED |
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Address |
C – 38, Hebbal Industrial Area, Metagalli,
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This Form is for |
Modification of charge |
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Type of Charges |
Book debts, movable property (not being pledge), floating charge |
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Particular of the charge holder |
Sate Bank of Commercial Branch, #7, “MRN Signa Ture” |
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Nature or description of the instrument creating charge |
Supplemental agreement of hypothecation of goods and assets – FORM C 2A, letter regarding the grant of individual limits within the overall limits – C 5 (both the above pertain to the same charge) |
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Date of the instrument creating charge |
18.11.2006 |
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Amount Secure by the charge |
Rs 69.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
a) Rate of interest: Rate:- at 1.25%below sbar, present effective rate 9.75% p. a. Penal interest for non compliance of terms of sanction max 2% p. a. over the normal rate. As per terms of sanction. Term loan existing – as per earlier terms. Fresh TL – 1.25% below sbar effective 9.75% p a. with monthly rests. As per terms of sanction. b) Terms of repayment: Working capital facility repayable on demand For term loan: in 25 monthly installments of Rs 0.200 million each Repayment to start from may 2007 c) Margin: Raw materials – semi finished goods / finished goods – 25% Stock in process – 25% receivables – 25% d) Extent and operation of the charge: Exclusive first charge on the assets of the company and to the full extent e) Others: Breakup of limits:- cash credit –(hypothecation of stocks and receivables) Rs. 22.500 millions, term loan (1) Rs. 5.800 millions, TL (2) Rs. 0.400 million, TL (3) Rs. 2.800 millions, TL(4) Rs. 20.000 millions, TL (5) Rs. 10.000 millions, term loan (new) Rs. 5.000 millions |
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Description of the property charge whether it is a charge on |
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Modification charge Charge identification number of the charge to be modified |
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Date of instrument modifying the charge |
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Particulars of the Property charged |
Hypothecation of present and future all of the borrower’s stocks of raw materials, semi finished and finished goods, stores, spares, tools , accessories, components, book debts, bills claims, receivables, outstanding , plant and machineries, other movable assets ETC wherever situate, held or stored or in transit or in the custody of any third party |
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Particulars of the present modification |
By the present modification, the amount secured by the charge stands increased from Rs. 59.000 million to Rs. 69.000 millions Security of current assets, movable fixed assets, other movable and immovable properties already obtained continues to be available for the unchanged limit also. All other terms and conditions remain unchanged |
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Name of the company |
M/S DECO EQUIPMENT PRIVATE LIMITED |
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Presented By |
Sate Bank of Commercial Branch, Saraswathipuram, |
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1) Date and description of instrument creating the change |
04.09.1999 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 6.700 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 |
All present and future goods , book debts, movables and fixed assets or the borrower including document s of title to goods and other assets such as outstanding moneys, receivables, claims, bills, invoices, documents and securities, contracts, engagements, investments and the existing machinery and all future machinery, machinery to be purchased out of bank finance belonging to or in possession or under the control or the borrower wherever lying stored and whether in possession or the borrower or the bank or of any third party whether in India or elsewhere throughout world including all such goods, machineries, movables and other assets as may be in course of transit or delivery by way first charge |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest as per sanction 25% MTL – in equal instalments as stipulated earlier / sanction letter |
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5) Name and Address and description of the person entitled to the charge. |
Sate Bank of Commercial Branch, Saraswathipuram, (A Banking Company) |
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6) Date and brief description of instrument modifying the charge |
24.09.2005 Extension of equitable mortgage by deposit of title deeds – letter confirming the creation of mortgage enclosed – 2 Nos. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit – form CA Letter regarding the Grant of individual limits within the overall limit C -5 (All the above pertain to 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. |
Amount secured by the charge stands revised at the existing out-standing level of Rs. 9.000 millions term loan accounts The securities already obtained including equitable mortgage on the company’s immovable property continue to be available for the revised amount. |
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.40.95 |
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1 |
Rs.81.80 |
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Euro |
1 |
Rs.55.09 |
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 |
NO |
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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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