MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MIKI WIRE WORKS PRIVATE LIMITED |
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Registered Office : |
J S Lane, Gandhi Chowk, Upper Bazar, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.11.1987 |
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Com. Reg. No.: |
03-2782 |
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CIN No.: [Company
Identification No.] |
U00330JH1987PTC002782 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RCHM00247C |
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PAN No.: [Permanent
Account No.] |
AABCM2858E |
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Legal Form : |
Private Limited liability Company. |
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Line of Business : |
Manufacturers and Exporters of Steel Wires, Steel Wire Ropes and Non Alloy
Steel Wire. |
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 130000 |
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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 : |
J S Lane, Gandhi Chowk, Upper Bazar, |
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Tel. No.: |
91-651-2310018 / 2306625 / 209874 |
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Fax No.: |
91-651-2310016 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Mahesh Poddar |
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Designation : |
Director |
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Address : |
J S Lane, Gandhi Chowk, Upper Bazar, |
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Date of Birth/Age : |
14.11.1949 |
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Date of Appointment : |
12.01.2007 |
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Name : |
Mr. Pawankumar Pacheriwala |
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Designation : |
Managing Director |
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Address : |
Anjani Bhawan, 873A Tapovan Colony, Kokar, |
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Date of Birth/Age : |
23.04.1962 |
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Date of Appointment : |
12.01.2007 |
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Name : |
Mr. Kailash Chand Sharma |
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Designation : |
Whole-time Director |
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Address : |
504, Deepak Apartments, |
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Date of Birth/Age : |
23.04.1962 |
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Date of Appointment : |
12.01.2007 |
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Name : |
Mrs. Nirmala Poddar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Vinod Kumar |
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Designation : |
Company Secretary |
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Address : |
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Tel. No.: |
91-651-2200150/ 2200900 |
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Email : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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93.63 |
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Other top fifty (50) shareholders (other than listed above) |
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6.37 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Steel Wires, Steel Wire Ropes and Non
Alloy Steel Wire. |
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Products : |
v
Annealed wire v
Pre stressed concrete and stranded wires v
Electric earth wire strand v
Electric ground stay wire strand v
Electrode low carbon steel wire v
Spring steel wire plain carbon v
Roping wire and various other wires in high
carbon grades. |
GENERAL INFORMATION
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Bankers : |
Federal Tower SP , Building No. 103, Alwaye, Ernakulam – 683 101,
E-mail: rhi@federalbank.co.in
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R K Garodia and company Chartered Accountants |
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Address : |
202, |
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Associates/Subsidiaries : |
v
Miki Steel Works Private Limited v
Shri Ram Wire Products Private Limited v
Vika Manufacturing Company Private Limited v
Visakha Wire Ropes Limited v
Shilpi Wire Rope Private Limited |
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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68570 |
Equity Shares |
Rs. 100/- each |
Rs. 6.857
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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6.857 |
5.857 |
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2] Share Application Money |
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0.000 |
4.000 |
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3] Reserves & Surplus |
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27.473 |
19.141 |
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NETWORTH |
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34.330 |
28.998 |
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LOAN FUNDS |
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1] Secured Loans |
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32.794 |
35.454 |
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2] Unsecured Loans |
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7.002 |
7.369 |
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TOTAL BORROWING |
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39.796 |
42.823 |
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TOTAL |
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74.126 |
71.821 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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18.327 |
15.716 |
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Capital work-in-progress |
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0.428 |
1.779 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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26.964 |
22.261 |
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Sundry Debtors |
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30.004 |
33.479 |
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Cash & Bank Balances |
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8.798 |
5.016 |
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Loans & Advances |
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9.045 |
4.744 |
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Total
Current Assets |
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74.811 |
65.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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17.882 |
10.448 |
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Provisions |
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1.558 |
0.726 |
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Total
Current Liabilities |
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19.440 |
11.174 |
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Net Current Assets |
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55.371 |
54.326 |
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TOTAL |
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74.126 |
71.821 |
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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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650.065 |
326.401 |
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Other Income |
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0.079 |
1.132 |
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Total Income |
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350.144 |
327.533 |
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Profit/(Loss) Before Tax |
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9.456 |
7.315 |
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Provision for Taxation |
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3.378 |
2.703 |
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Profit/(Loss) After Tax |
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6.078 |
4.612 |
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Export Value |
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2.420 |
18.272 |
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Total Expenditure |
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333.472 |
320.273 |
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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1.73 |
1.41 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.70 |
2.23 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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10.10 |
8.81 |
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Return on Investment (ROI) (PBT/Networth) |
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0.27 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.72 |
2.86 |
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Current Ratio (Current Asset/Current Liability) |
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3.85 |
5.86 |
LOCAL AGENCY FURTHER INFORMATION
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Corporate
identity number (CIN) Foreign company registration number |
U00330JH1987PTC002782 |
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Name of the
Company |
MIKI WIRE WORKS PRIVATE LIMITED |
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Address |
Poddar House, J S Lane, Gandhi Chowk, Upper Bazar, |
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This form is for |
Creation of
charge |
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Type of Charge |
A charge on: 1. Immovable
Property 2. Book Debts 3. Movable
Property (not being pledge) |
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Particulars of
the charge holder |
The Federal Bank
Limited Federal Tower SP
Building No. 103, Alwaye, Ernakulam – 683 101, E-mail: rhi@federalbank.co.in CIN:
L65191KL1931PLC000368 |
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Amount secured by
the charge |
Rs. 126.500
millions |
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Brief of the
principal terms and conditions |
(a) Rate of
interest Interest on Term
Loan Agreement @ 1.75 % below PLR i.e. presently @ of 10.25% Interest on Cash
Credit Agreement @ 2.5% below PLR i.e. presently @ 9.55 Packing Credit Limit
@ 4.5% below PLR i.e. presently @ of 7.5% Letter of Credit Inland @ 0.50% per
quarter subject to minimum of one quarter, bank, Guarantee @ 0.50% per
quarter subject to minimum of one quarter and Letter of credit @ .50% per
quarter subject to minimum of one quarter. (b) Terms of
Repayment: Term Loan
repayable in 2 quarterly installments in 48 months, cash credit of Rs. 38.000
millions for 12 months, Packing credit limit of Rs. 2.000 millions for 12
months. Letter of Credit for 12 months and bank Guarantee for period of 12
months. (c ) Margin: Margin of 10% on
Term Loan of Rs. 8.500 millions, on cash credit 25% on Inventory and 405on
receivables, on packing Credit Limit @ 25 % , on letter of Credit Inland 10 %
Cash Margin, on Bank Guarantee 10% cash Margin and on Letter of Credit 105
cash Margin. (d) Extent and
operation of the charge: Hypothecation of
one straight line wore drawing machine and frequency drive system, first
charge on existing fixed assets excluding vehicles, first charge on inventory
and receivables, first charge on inve3ntory meant for export, charge on goods
produced under letter of credit, collateral security by equitable mortgage of
factory land to the extent of 5.49 acres and building situated at Mahilong,
Ranchi and by extension of charge on entire current assets and fixed assets
excluding vehicles. |
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Short particulars
of the property charged |
Hypothecation of one
straight line wore drawing machine and frequency drive system, first charge
on existing fixed assets excluding vehicles, first charge on inventory and
receivables, first charge on inve3ntory meant for export, charge on goods
produced under letter of credit, collateral security by equitable mortgage of
factory land to the extent of 5.49 acres and building situated at Mahilong,
Ranchi and by extension of charge on entire current assets and fixed assets
excluding vehicles. |
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Date of
Instrument |
23.08.2006 |
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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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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