MIRA
INFORM REPORT
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Report Date : |
10.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHIVALIK BIMETAL CONTROLS LIMITED |
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Registered Office : |
16-18, New Electronics Complex, Chambaghat, District Solan
– 173 212, Himachal Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.06.1984 |
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Com. Reg. No.: |
06-5862 |
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CIN No.: [Company
Identification No.] |
L27101HP1984PLC005862 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS23300E |
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PAN No.: [Permanent
Account No.] |
AAACS0623C |
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Legal Form : |
Subject is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Engaged in manufacturing of Strips and Components of Thermostatic Bimetal and of Other Alloys. |
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 1000000 |
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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 : |
16-18, New Electronics Complex, Chambaghat, District Solan
– 173 212, Himachal Pradesh, India |
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Tel. No.: |
91 – 1792 - 222175 / 223578 / 230175 / 230578 / 230566 |
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Fax No.: |
91 – 1792 – 220475 / 230475 / 230567 |
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E-Mail : |
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Website : |
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Head Office : |
Suneja Chamber, 2nd Floor, H-2, Alaknanda
Commercial Complex, New Delhi – 110 019 |
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Tel. No.: |
91-11-26027174 / 26028175 / 26028973 / 26028974 |
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Fax No.: |
91-11-26020806 / 26026776 |
DIRECTORS
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Name : |
Mr. S. S. Sandhu |
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Designation : |
Chairman |
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Date of Birth/Age : |
52 years |
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Qualification : |
Arts Graduate |
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Experience : |
34 years |
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Date of Appointment : |
11.07.1984 |
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Name : |
Mr. N. S. Ghumman |
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Designation : |
Managing Director |
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Date of Birth/Age : |
56 years |
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Qualification : |
B.E. [Hons.] |
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Experience : |
34 years |
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Date of Appointment : |
18.06.1984 |
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Last Employment : |
Tradax Gestion SA, Geneva, Switzerland – Chief Engineer |
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Name : |
Mr. D. J. S. Sandhu |
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Designation : |
Deputy Managing Director |
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Name : |
Brig. H. S. Sidhu (Retd.) |
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Designation : |
Director |
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Name : |
Mr. S. C. Verma |
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Designation : |
Director |
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Name : |
Mr. A. K. Sud |
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Designation : |
Director |
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Name : |
Mr. Rohit Kapur |
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Designation : |
Director |
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Name : |
Mr. G. S. Gill |
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Designation : |
Director |
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Name : |
Mr. N. J. S. Gill |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Banks |
2000 |
0.01 |
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Domestic Companies |
8146306 |
42.43 |
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Non – Resident Indians |
49291 |
0.25 |
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Directors / Relatives of Directors |
3982000 |
20.74 |
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Individuals / Others |
7021803 |
36.57 |
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TOTAL |
19201400 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in manufacturing of Strips and Components of
Thermostatic Bimetal and of Other Alloys. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Thermostatic Bimetal / Trimetal Strips & Parts [Clad & EB
welded] |
Tonnes |
2220 |
615.68 |
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Parts for Color Picture Tubes, Electron Gums |
No. of Pieces |
1700 |
111.100 |
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Reflow Solder |
Tonnes |
150 |
-- |
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Job work of Bimetal / Trimetal / Alloy Strips |
Tonnes |
-- |
206.81 |
GENERAL
INFORMATION
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Suppliers : |
Indian Mould Base & Die Set Company Private Limited Petroleum Product of India K. S. Enterprises |
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No. of Employees : |
250 |
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Bankers : |
Indian Bank, Nehru Place, Greater Kailash I, New Delhi – 110 019 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Malik Kapur & Company Chartered Accountants |
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Address : |
New Delhi, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs. 2/- each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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19201400 |
Equity Shares |
Rs. 2/- each |
Rs. 38.402
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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38.402 |
38.402 |
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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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222.009 |
173.948 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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260.411 |
212.350 |
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LOAN FUNDS |
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1] Secured Loans |
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201.064 |
213.232 |
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2] Unsecured Loans |
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20.332 |
5.753 |
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TOTAL BORROWING |
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221.396 |
218.985 |
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DEFERRED TAX LIABILITIES |
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20.100 |
17.700 |
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TOTAL |
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501.907 |
449.035 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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196.298 |
182.849 |
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Capital work-in-progress |
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6.802 |
0.103 |
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Advance for Capital Expenditure |
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0.525 |
0.305 |
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INVESTMENT |
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9.531 |
0.000 |
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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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181.614 |
180.482 |
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Sundry Debtors |
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250.508 |
220.638 |
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Cash & Bank Balances |
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12.157 |
17.323 |
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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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33.783 |
31.619 |
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Total
Current Assets |
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478.062 |
450.062 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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172.302 |
167.698 |
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Provisions |
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17.009 |
16.586 |
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Total
Current Liabilities |
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189.311 |
184.284 |
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Net Current Assets |
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288.751 |
265.778 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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501.907 |
449.035 |
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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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639.539 |
654.507 |
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Job Work |
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0.204 |
1.761 |
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Increase / [Decrease] in Stock |
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[5.054] |
24.570 |
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Other Income |
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3.226 |
4.941 |
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Total Income |
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637.915 |
685.779 |
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Profit/(Loss) Before Tax |
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64.945 |
74.387 |
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Provision for Taxation |
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9.300 |
7.800 |
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Profit/(Loss) After Tax |
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55.645 |
66.587 |
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Earnings in Foreign Currency : |
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Export Earnings |
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244.361 |
199.277 |
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Receipts on account of Exchange Fluctuations |
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0.605 |
3.369 |
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Receipts on account of Job Work |
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0.150 |
1.761 |
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Total Earnings |
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245.116 |
204.407 |
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Imports : |
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Raw Materials |
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248.838 |
211.588 |
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Stores & Spares |
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3.171 |
2.880 |
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Capital Goods |
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5.799 |
54.145 |
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Others |
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0.000 |
0.000 |
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Total Imports |
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257.808 |
268.613 |
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Expenditures : |
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Cost of Goods Sold |
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364.050 |
370.493 |
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Manufacturing & Other Expenses |
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169.782 |
206.609 |
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Interest |
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25.195 |
21.415 |
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Depreciation & Amortization |
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13.942 |
12.827 |
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Other Expenditure |
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0.000 |
0.048 |
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Total Expenditure |
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572.969 |
611.392 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 1st
Qtr. |
30.09.2006 2nd
Qtr. |
31.12.2006 3rd
Qtr. |
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Sales
Turnover |
130.600 |
163.600 |
155.500 |
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Other
Income |
1.100 |
0.700 |
2.700 |
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Total
Income |
131.700 |
164.300 |
158.200 |
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Total
Expenditure |
108.200 |
135.800 |
128.100 |
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Operating
Profit |
23.500 |
28.500 |
30.100 |
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Interest |
6.300 |
7.400 |
6.400 |
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Gross
Profit |
17.200 |
21.100 |
23.700 |
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Depreciation |
3.700 |
3.800 |
3.900 |
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Tax |
1.800 |
1.800 |
3.100 |
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Reported
PAT |
11.400 |
15.200 |
16.400 |
Notes:
200606 Quarter 1
Gross Sales Includes Domestic Rs 115.224 million Export Rs
31.452 million Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
11.360 million Consumption of Raw Materials Rs 58.756 million Staff Cost Rs
5.589 million Other Expenditure Rs 32.479 million Tax Includes Provision for
Current Tax Rs 1.500 million Deferred Tax Rs 0.300 million Fringe Benefit Tax
Rs 0.300 million EPS is Basic & Diluted Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter Nil Complaints disposed off
during the quarter Nil Complaints unresolved at the end of the quarter Nil 1.
The above statement of financial results as reviewed by the Audit Committee
have been taken on record at the Board of Directors meeting held on July 28,
2006. 2. Provision for income tax (Minimum Alternate Tax) has been calculated
in accordance with section 115 JB of Income Tax Act, 1961. 3. The Limited
Review for the quarter ended June 30, 2006 has been carried out by the
Statutory Auditors. 4. Previous year / period figures have been regrouped /
recast, wherever necessary to make it comparable.
200609 Quarter 2
Gross Sales Includes Domestic Rs 143.284 million Export Rs
40.264 million Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
2.452 million Consumption of Raw Materials Rs 87.606 million Staff Cost Rs
6.302 million Other Expenditure Rs 39.379 million Tax includes Provision for
Current Tax Rs 1.50 million Deferred Tax Rs 0.300 million Fringe Benefit Tax Rs
0.300 million EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 05 Complaints disposed off
during the quarter 04 Complaints unresolved at the end of the quarter 01 1. The
above statement of financial results as reviewed by the Audit Committee have
been taken on record at the Board of Directors meeting held on October 27,
2006. 2. Provision for income tax (Minimum Alternate Tax) has been calculated
in accordance with section 115 JB of Income Tax Act, 1961. 3. The Limited
Review for the quarter ended September 30, 2006 has been carried out by the
Statutory Auditors. 4. Previous year/period figures have been regrouped/recast,
wherever necessary to make it comparable.
200612 Quarter 3
Gross Sales Includes Domestic Rs 122.753 million Export Rs
49.830 million Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
(8.133) million Consumption of Raw Materials Rs 82.081 million Staff Cost Rs
7.272 million Other Expenditure Rs 46.984 million Tax includes Provision for
Current Tax Rs 2.50 million Deferred Tax Rs 0.30 million Fringe Benefit Tax Rs
0.60 million EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter 01 Complaints Received during the quarter 03 Complaints disposed off
during the quarter 04 Complaints unresolved at the end of the quarter Nil 1.
The above results were reviewed by the Audit Committee and approved by the
Board of Directors on January 30, 2007 and have been subjected to Limited
Review by the Statutory Auditors of the Company. 2. The Board has declared an
interim dividend @ 12.50% on paid up Equity Share Capital of the company for
the financial year ending March 31, 2007. 3. Provision for income tax (Minimum
Alternate Tax) has been calculated in accordance with section 115 JB of Income
Tax Act, 1961. 4. Previous year/period figures have been regrouped/recast,
wherever necessary to make it comparable.
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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8.72 |
9.70 |
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Net Profit Margin (PBT/Sales) |
(%) |
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10.18 |
10.84 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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9.63 |
11.75 |
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Return on Investment (ROI) (PBT/Networth) |
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0.24 |
35.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.57 |
1.89 |
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Current Ratio (Current Asset/Current Liability) |
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2.52 |
2.44 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
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High |
Rs.15.70/- |
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Low |
Rs.14.40/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY :
The company was incorporated on 18th June 1984 at Solan in Himachal Pradesh as a private limited liability company having Company Registration Number 5862. It was converted into a public limited company on 14th February 1985 with the purpose of setting up manufacturing facilities for Thermostatic Bimetal Strips. This was the first plant in Asia outside Japan to undertake manufacture of this sophisticated item.
The company has a plant at Chambaghat (Solan district),
Himachal Pradesh, to manufacture thermostatic bimetal strips (inst. cap. : 80
tpa). This was the first plant in Asia outside Japan to undertake the
manufacture of such a sophisticated item. It had a technical collaboration with
Polymetallurgical Corporation, US, for a period of five years, which has now
ended. It also manufactures components which use thermostatic bimetal
strips.
In 1995, the company embarked upon a diversification programe to manufacture
thermo bimetal components for miniature circuit breakers, overload thermal
relays and colour picture tubes. It came out with a public issue in June 1995
to part-finance the project.
During 1998-99, the company set up a facility to manufacture snap action
discs.
The company has acquired Technical Know-how for production of Edge Welded Trimetals
and during the year 1999-2000 has updated its manufacturing / engineering
technical know-how for production of Bimetal Strips.
As informed last year the company has Imported Edge Welding Machinery from
Germany for manufacturing of Trimetals through EBT Technology and the machinery
has been installed successfully and started its production in the early 2001.
This is one of the modernization programme the company has took up last
year.
The company has expanded the installed capacity of Electron Guns and Bimetal
Strips during the financial year 2003-04 by 30 millions (Nos) and 500 Tonnes
respectively. Consequent upon this expansion, the total capacity of Electron
Guns & Bimetal Strips have been increased to 130 millions (Nos) and 860
Tonnes respectively.
The company has sub divided its equity shares during March 2005 from every One
Equity share of Rs.10/- each into Five Equity shares of Rs.2/- each and also
announced Bonus issue of shares to its shareholders in the ratio of 1:1.
OPERATIONS & FINANCIAL RESULTS
For the year under report there has been a marginal decrease of 3.52% in sales
and other income which is Rs. 707.420 millions as compared to Rs. 732.302
millions of previous year and profit before tax (after interest and
depreciation) amounting to Rs. 64.946 millions as against the corresponding
figure of Rs. 74.388 millions for the previous financial year.
The reason primarily has been global competitiveness in the CRT Market which
constitutes a significant share to the company's revenue. In this situation, to
support our customers domestically the company had to encounter significant
reduction in prices.
EXPORTS
The Directors are delighted to inform you that the company has achieved export
turnover during the year under report to the tune of Rs. 244.280 millions as
compared to Rs. 202.828 millions during the previous year, thus registering an
increase of 20.44%. The Company is certainly endeavoring to enhance its presence
in the international market.
EXPANSION/DIVERSIFICATION
The Company has entered into a joint venture agreement with Checon Corporation
of Massachusetts, USA to have manufacturing facilities for Silver
Contacts.
The joint venture company has already been incorporated on 50 : 50 basis in
December, 2005. The JV Company is pursuing to acquire the assets of running
business of EMS at U.S.A. with the financial assistance from Indian and Foreign
Banks. The company has been asked to provide corporate guarantee to the Indian
Bank, Nehru Place Branch, New Delhi, for funding the assets to be acquired by
the JV Company to the extent of its share.
ORGANISATION AND COLLEAGUE RELATIONS
In the year under report, the company continued to lay emphasis on organization
and colleague development and enjoyed cordial relations among all its
employees. Colleague relations remained, as usual, healthy and satisfactory
during the period. The Directors record their whole hearted appreciation for
the contributions made by all at respective levels of operations of the Company
during the year.
Subject is an ISO 9002 Certified Company.
The company’s fixed assets of important value include land (leasehold), site development, building, plant & machinery, furniture & fixtures, vehicles, office equipment and computers.
WEBSITE DETAILS
SHIVALIK is in commercial production since 1986.
SHIVALIK excels in the manufacture of the following products :
Electron Beam
Welded Bimetal and Trimetal
Electron Beam
Welded Shunt Material
Precision
Spring Rolled Stainless Steel
These products are available
in the form of strips as well as customized components. Both strips and
components can be offered with electroplating.
SHIVALIK is a company specialized in the joining of materials through
various methods such as diffusion bonding / Cladding, Electron Beam Welding,
Solder Reflow and Resistance Welding. Their present program includes
Thermostatic Bimetal, Clad Metal, Spring Rolled Stainless Steels, Electron Beam
Welded Material with Multi - Gauge and Multi - Materials Strips and
Thermostatic Edge - Welded Strip for a broad spectrum of industries. They
invite you to shorten the supply chain by procuring the precision components
from Shivalik whereby you have the source of the strip also under the same roof
giving you efficiency and reliability. Shivalik has been a single vendor to
many prestigious OEMs since 1986. They have met the most stringent of demands
from many large global companies. They invite you to use their specialized
knowledge and experience to add more reliability and quality to their products.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.44.22 |
|
UK Pound |
1 |
Rs.85.27 |
|
Euro |
1 |
Rs.58.24 |
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 |
YES |
|
--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 |
|