MIRA
INFORM REPORT
|
Report Date : |
24.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MAY FLOWER ENGINEERING PRIVATE LIMITED |
|
|
|
|
Registered Office : |
No.296, 38th Street, 7th Sector,K K Nagar,
Chennai – 600078. Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
17.06.1997 |
|
|
|
|
Com. Reg. No.: |
18-038435 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U29309TN1997PTC038435 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM02335E |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of Steel Components used mainly for Automobile. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 20000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a 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 dealing at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
No.296, 38th Street, 7th Sector, K K Nagar,
Chennai – 600078. Tamilnadu |
|
Tel. No.: |
91-44-24764099/24764696 |
|
E-Mail : |
visalamkrishna@yahoo.co.in |
|
|
|
|
Factory : |
Plot No. 8, Krishna Industrial Estate, Vanagaram – Mettukuppam, Chennai,
Tamilnadu - 602102 |
|
Tel. No.: |
91-44-24743129 |
DIRECTORS
|
Name : |
Mr. P R Pichumani |
|
Designation : |
Whole Time Director |
|
Address : |
296, 38th Street, 7th Sector, K K Nagar.
Chennai, Tamilnadu – 600078. |
|
Date of Birth/Age : |
12.08.1947 |
|
Date of Appointment : |
23.06.1997 |
|
|
|
|
Name : |
Mrs. Gomathy Ramanathan |
|
Designation : |
Whole Time Director |
|
Address : |
296, 38th Street, 7th Sector, K K Nagar.
Chennai, Tamilnadu – 600078. |
|
Date of Birth/Age : |
09.04.1930 |
|
Date of Appointment : |
23.06.1997 |
|
|
|
|
Name : |
Mr. K E Krishnan |
|
Designation : |
Whole Time Director |
|
Address : |
296, 38th Street, 7th Sector, K K Nagar.
Chennai, Tamilnadu – 600078. |
|
Date of Birth/Age : |
14.04.1948 |
|
Date of Appointment : |
01.04.2002 |
|
|
|
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
Percentage of
Holding |
|
Directors or Relatives of Directors |
|
100 % |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Steel Components used mainly for Automobile |
GENERAL
INFORMATION
|
No. of Employees : |
17 |
|
|
|
|
Bankers : |
Punjab National Bank K K Nagar, Chennai – 600078. |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Ganesan and Company Chartered Accountants |
|
Address : |
New No.9(old No. 36), South Beach Avenue, MRC Nagar, Main Road,
Chennai – 600028. Tamilnadu |
|
|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
250,000 |
Equity Share |
Rs. 10/- each |
Rs.2.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40,000 |
Equity Share |
Rs. 10/-
each |
Rs. 0.400
Miilions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
0.400 |
0.400 |
|
|
2] Share Application Money |
|
|
|
|
|
3] Reserves & Surplus |
|
4.422 |
4.877 |
|
|
4] (Accumulated Losses) |
|
|
|
|
|
NETWORTH |
|
4.822 |
5.277 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.738 |
2.565 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.738 |
2.565 |
|
|
DEFERRED TAX LIABILITIES |
|
0.064 |
0.090 |
|
|
|
|
|
|
|
|
TOTAL |
|
5.624 |
7.932 |
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
0.864 |
1.007 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.631
|
0.473 |
|
|
Sundry Debtors |
|
7.291
|
7.044 |
|
|
Cash & Bank Balances |
|
1.122
|
2.710 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
1.752
|
1.735 |
|
Total
Current Assets |
|
10.796
|
11.962 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
4.964
|
4.243 |
|
|
Provisions |
|
1.076
|
0.800 |
|
Total
Current Liabilities |
|
6.040
|
5.043 |
|
|
Net Current Assets |
|
4.757
|
6.919 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.003 |
0.006 |
|
|
|
|
|
|
|
|
TOTAL |
|
5.624 |
7.932 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
-- |
-- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
-- |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
-- |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
-- |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.40 |
1.44 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.78 |
2.37 |
LOCAL AGENCY
FURTHER INFORMATION
INTRODUCTION
:
The company was started in 1977 as a partnership Finn by
name MA y FLOWER ENGINEERING INDUSTRIES and was registered with the Director of
Industries and Commerce as SSI Unit. Effective from September 1997, it was
converted as a Private Limited Company under the present name (IvIEPL),
Manufacturing precision Turned steel Components for O.E manufactures ofleading
Automobile Industries in India. The Registered Office of the Company is at 296,
38d1 Street, Th Sector, K. K Nagar, Chennai - 600 078.
MANAGEMENTS :
The Board of Directors manages IvIEPL. Sri P.R. Pichumani,
Director, is a Mechanical Engineering having experience of about 25 years in
the field of Engineering Industry.
Thiru. K.E. Krishnan, Director is an Electrical Engineer,
retired from The Tarni1nadu Electricity Board, Chennai-2., joined this Company
in the 1995 and is having a vast experience in Engineering line including man
power management. The other Director is , Mrs. Gomathi Ramanathan who is
associated with this Company from the date of inception. The paid capital is
Rs.4.0 Lakhs.
PRODUCTS :
MEPL is manufacturing precision turned steel components
for various applications to be used mainly for Automobile O.E. Manufactures.
WORKS :
The factory is situated at Plot 8, Krishna Industrial
Estate, Vanagaram- Mettukuppam, Chennai-602 102. The connected power load is 45
HP and the electric power is adequately available.
EMPLOYEES :
The Unit managed by well-experienced management staff and
workman. The total man power strength is 17.
QUALITY ASSURANCE:
The Company' s Products are manufactured in line with
Industrial Standards and having global acceptance. It caters to the requirement
of Industries following QS 9000.
ACHIEVEMENT :
I) Prof. Y. Washio, Deming award winner for Quality, the
Japanese Consultant for Lucas- TVS Ltd., Chennai visited their factory on
21.12.2000. He had made the following remarks to us:
"Factory is clean and attitude ofpeople is quite
good. The quality should be very good".
He has expressed to their customer Lucas -TVS Ltd.,
management Team that 'I visited :Mayflower today. The 5S activity is very good
as if he was entering a company in Japan.
2) :MEPL was awarded 'the best supplier of the 2000' by
their customer Lucas -TVS Ltd., Chennai-50 in their Suppliers Meet held on
11.11.2000.
3) Mayflower has been awarded the Certificate of
Registration By UKAS Quality management certification body for operating a
Quality Management System which complies with the requirements ofBS EN ISO
9001: 2000 FOR II Manufacture of Precision Turned Components and related
Sub-assembly ".
|
Name of the Company |
MAY FLOWER ENGINEERING PRIVATE LIMITED |
|||||||||
|
Presented By |
May Flower Engineering Private Limited (herein after called “The
Borrower”) & Punjab National Bank, K K Nagar Branch, Chennai – 600078 |
|||||||||
|
1. Date and description of the instrumental
creating the charge |
a. Hypothecation of goods to secure a demand cash credit dated 24th
May, 1997. b. Agreement of hypothecation of book debts dated 24th May,
1997. The agreement cited above had been executed by M/s May Flower
Engineering Industries which has been taken over by M/s May Flower
Engineering Private Limited with effect from 09.02.1998 (vide Take Over
Agreement) The properties of the firm as stated in column No. 3 below are
subject to charge as per Section 127 of the Companies Act, 1956. |
|||||||||
|
2) Amount secured by the charge/amount owning on
security of the charge |
Rs.0.900 Millions Comprising of : CC (Stock) Rs.
0.100 Millions CC (Book Debts) Rs. 0.800
Millions
-------------------------
Rs. 0.900 Millions |
|||||||||
|
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 |
i. Hypothecation of goods viz, stock of 28 MM steel rod, 19.05 MM
steel rod. S P pulley net, rivet, armature etc. and also all products, goods
and movable property of any kind
belonging to them which now or hereafter from time to time during continuance
of this agreement shall be brought in, store or be, in or about their
premises or godowns at 296, 38th street, 7th sector,
Chennai – 78 or any other godown or godowns or be in course of transit from one godown to
another or wherever else the same may
be, as security to cover CC (Stock) limit to the extent of Rs. 0.100 Millions
and ii. All the Company’s present and
future book debts, outstanding, decrees, money receivable, claims, bills,
contracts, engagements, securities, investments, rights and other movable
assets are hypothecated to the bank by way of First Charge, to cover the CC
(Book Debts) limits to the extent of Rs. 0.800 Millions |
|||||||||
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest at the rate of 7.75 % over the RBI rate with a minimum of
18.75 % p.a. Margin : Stocks 25 % Book Debts 40 % |
|||||||||
|
5) Name and Address and description of the person entitled to the
charge. |
Punjab National Bank K K Nagar, Chennai – 600078 |
|||||||||
|
6) Date and brief description
of instrument modifying the charge |
30.03.2005. Hypothecation of Goods and Book Debts to secure Cash Credit Facility
dated 30th March,2005 |
|||||||||
|
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 present modification the Credit facility enjoyed by the Company
has now been enhanced from Rs. 1.500 Millions to Rs. 2.500 Millions and the
details are hereunder :
Margin : 50% Rate of Interest : Interest at the rate 10.75 % p.a. (BPLR) or as
applicable from time to time Hypothecation of raw materials viz manufacturing material, raw materials
including excisable raw materials, stock-in-process, semi finished goods,
finished goods and The existing charge on all the goods viz, stocks of 28 MM steel rod,
19.05 MM steel rod, S P pulley net, rivet armature etc, and also all
products, goods and movable property of any kind belonging to them which now
or hereafter from time to time during the continuance of this agreement shall
be brought in, stored at 296, 38th street, 7th sector,
Chennai – 78 or any other godown or godowns or be in course of transit from
one godown to another or wherever else the same may be as security and All the Company’s present and future book debts outstanding, decrees,
money receivable claims, bills, contracts, engagements, securities,
investments, rights and other movable assets are shall continue to secure the
enhanced limits of Rs. 2.500 Millions together with interests, costs,
charges, and all other expenses which may be debited to the said account from
time to time. |
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.43.47 |
|
UK Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
|
45 |
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 |
|