MIRA
INFORM REPORT
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Report Date : |
29.05.2007 |
IDENTIFICATION DETAILS
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Name : |
VIKI INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
NO. 12, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.08.1990 |
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Com. Reg. No.: |
019523 |
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CIN No.: [Company
Identification No.] |
U27209TN1990PTC019523 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEV02424C |
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PAN No.: [Permanent
Account No.] |
AAACV2003P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Re-Rolled Products and Steel Ingots |
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 719332 |
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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 : |
No. 22 (Old No.12), First Cross Street, C.I.T. Colony, Mylapore,
Chennai – 600004, Tamilnadu |
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Tel. No.: |
91-44-24986294 |
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Fax No.: |
91-44-24987090 |
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E-Mail : |
DIRECTORS
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Name : |
Mr Seetha Rama Reddy M |
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Designation : |
Director |
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Address : |
Anuthama Apartments, |
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Date of Birth/Age : |
30.03.1948 |
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Date of Appointment : |
06.01.2000 |
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Name : |
Mrs. Salajadevi Reddy |
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Designation : |
Director |
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Address : |
4, Nandanam Extn, |
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Date of Birth/Age : |
05.06.1957 |
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Date of Appointment : |
12.02.2007 |
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Name : |
Mr. Nitya Reddy |
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Designation : |
Director |
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Address : |
14, |
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Date of Birth/Age : |
06.08.1978 |
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Date of Appointment : |
12.02.2007 |
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Name : |
Mr. Gautam Reddy Gunapati |
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Designation : |
Director |
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Address : |
Door No. 4/5, Ratland Gate, |
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Date of Birth/Age : |
11.05.1970 |
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Date of Appointment : |
09.12.1999 |
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Name : |
Mr. Chandrashekhar Reddy Maramreddy |
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Designation : |
Director |
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Address : |
12/5, Janakiram Reddy Colony, |
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Date of Birth/Age : |
01.07.1968 |
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Date of Appointment : |
03.12.2001 |
KEY EXECUTIVES
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Name Name : |
Mrs. Vasumathi Rajagopalan |
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Designation : |
Secretary |
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Address : |
Amrith Varhas, Old No. 26, New No. 18, Kaveris Street, Rajajinagar,
Villiwakkkam, Chennai – 600049,
Tamilnady |
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Date of Birth/Age : |
25.04.1969 |
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Date of Appointment : |
01.06.2006 |
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Name : |
Mrs. N Banumathy |
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Designation : |
Secretary |
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Address : |
Flat – C, 11th Floor, 2 – B, |
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Date of Birth/Age : |
11.05.1969 |
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Date of Appointment : |
01.06.2001 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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M/s Sheena Agro |
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1798200 |
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Mrs. Deepthi G |
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2644635 |
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Mr. Chandrashekhar Reddy Maramreddy |
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10 |
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Mr. Gautam Reddy Gunapati |
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1407145 |
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Mr Seetha Rama Reddy M |
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10 |
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category |
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Percentage of
Holding |
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Bodies Corporate |
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30.74 |
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Directors or Relative of director |
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69.26 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturer of Re-Rolled Products and Steel Ingots |
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GENERAL INFORMATION
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Bankers : |
Indian Overseas
Bank Commercial and
Institutional Credit Branch “Auras Corporate
Centre,” Post Bag No. 351, 98 – A, Dr. Radhakrishnan Salai, Mylapore, Chennai
– 600004 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. P.A. Reddy and Company Chartered Accountants |
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Address : |
242nd/ 422 A, Saraswathi Nagar, (Mr. P Ashok Reddy, Partner, M No. 23202) |
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Phone : |
91-861-2326666 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5850000 |
Equity Shares |
Rs. 10/- each |
Rs. 58.500 million |
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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58.500 |
58.500 |
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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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121.333 |
126.831 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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179.833 |
185.331 |
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LOAN FUNDS |
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1] Secured Loans |
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71.547 |
42.779 |
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2] Unsecured Loans |
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26.315 |
36.028 |
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TOTAL BORROWING |
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97.862 |
78.807 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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277.695 |
264.138 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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110.680 |
121.695 |
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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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5.431 |
5.331 |
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DEFERREX TAX ASSETS |
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3.901 |
4.094 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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104.573 |
66.179 |
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Sundry Debtors |
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65.378 |
58.760 |
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Cash & Bank Balances |
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2.258 |
4.455 |
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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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108.657 |
89.560 |
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Total
Current Assets |
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280.866 |
218.954 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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105.687 |
71.391 |
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Provisions |
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17.496 |
14.545 |
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Total
Current Liabilities |
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123.183 |
85.936 |
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Net Current Assets |
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157.683 |
133.018 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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277.695 |
264.138 |
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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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877.368 |
1899.186 |
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Other Income |
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3.150 |
10539 |
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Increase / (Decrease) in Stocks |
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80724 |
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Total Income |
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889.242 |
1900.725 |
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Profit/(Loss) Before Tax |
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(5.114) |
22.103 |
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Provision for Taxation |
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0.384 |
8.924 |
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Profit/(Loss) After Tax |
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(5.498) |
13.179 |
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Expenditures : |
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Depreciation & Amortization |
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15.671 |
15.019 |
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Financial Charges |
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11.287 |
10.946 |
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Total Expenditure |
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26.958 |
25.965 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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(0.61) |
0.69 |
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Net Profit Margin (PBT/Sales) |
(%) |
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(0.58) |
1.16 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(1.82( |
10.09 |
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Return on Investment (ROI) (PBT/Networth) |
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(0.03) |
0.12 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.68 |
0.46 |
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Current Ratio (Current Asset/Current Liability) |
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2.28 |
2.54 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
VIKI INDUSTRIES
PRIVATE LIMITED |
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Presented By |
G Gautam Reddy,
Director |
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1) Date and description of instrument creating the change |
15th,
April, 2005 Letter of
Hypothecation Deed (For securing Machineries / Vehicles / Goods / Books –
Debts) 15th April,
2005 Letter of
Hypothecation of Book – Debts |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 161.000
millions Terms Loan – Rs.
6.000 millions Terms Loans –Rs.
5.000 millions Cash Credit
– Rs. 50.000 millions Letter of
Credit- Rs. 100.000 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 |
Terms Loans:
First Charge on the Entire Current Assets of the Company Excluding HP Assets. Cash Credit:
First Charge on the Entire Current Assets of the Company Letter of Credit
First Charge on the Current Assets, Documents of Title to Goods / Accepted
Hundies. Collateral: Terms
Loans – Charge on the Residual Value of Current Assets. CC / LC – Charge
on the Residual Value of Fixed Assets. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Terms Loan –
Interest BPLR +1.00% (Present 12%P.A.) Margin 25% (To be Reduced To
BPLR +0.50% W.E.F. 01.07.2005) The Terms Loan of
Rs. 6.000 millions should be repaid in two quarterly installments of Rs.
3.000 millions each during June 2005 and September 2005. The Terms Loan of
Rs. 5.000 millions should be repaid in the ten quarterly installments of Rs.
0.500 millions each from April 2005 Cash Credit:
Margin 25% on stock and 40% on receivable. Interest BPLR +
1.00% (Present 12 % P.A.). (To Be reduced to
BPLR + 0.50% W.E.F. 01.07.2005) Security: First C
charge on the entire current assets of the company. Letter of Credit:
Margin 10% C commission – As
per circular inforce Security:
Documents of title of goods / accepted hundies / first charge on the current
assets of the company. |
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5) Name and Address and description of the person entitled to the charge. |
Indian Overseas
Bank Commercial and
Institutional Credit Branch “Auras Corporate
Centre,” Post Bag No. 351, 98 – A, Dr. Radhakrishnan Salai, Mylapore, Chennai
– 600004 |
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Corporate
identity number (CIN) Foreign company registration number |
U27209TN1990PTC019523 |
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Name of the
Company |
VIKI INDUSTRIES
PRIVATE LIMITED |
|
Address |
No. 12, |
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This form is for |
Modification of
Charge |
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Type of Charge |
Immovable
Property, Book Debts, Movable Property (not being pledge), Floating Charge |
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Amount secured by
the charge |
Rs. 187.900
millions |
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Brief of the
principal terms and conditions |
Rate of Interest Cash Credit:
Interest BPLR (presently 11.50% per annum) Terms Loan: BPLR
presently 11.50% per annum Terms of
Repayments Cash Credit :
Repayable of demand Terms Loans
existing shall be repaid as per existing repayment schedule. Margin: Cash Credit
Margin: 25% on stock and 40% on Book Debts; Letter of Credit
(Inland / foreign) Margin 10% LC Commission: as
per circular in force Extent and
operation of charge: Facilities
sanctioned to the company have been revised from Rs. 161.000 millions to Rs.
187.900 millions; Cash Credit
secured by first charge on the entire current assets of the company; Terms
Loan secured by first charge on the entire Fixed Assets of the company; Letter of Credit
secured by documents of title to goods / accepted hundies / first charge on
the current assets of the company Other Collateral
security: Terms Loans: Charge on the residual value of current assets; Cash Credit /
Letter of Credit – Charge on the residual value of fixed assets. See attachment
charge_ explained for more details. This is the first
modification of the original charge ID 90285768 created on 15.04.2005 |
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Description of
the property charged indicating |
Leasehold
interest of immovable property belonging to the company leased from SIPCOT |
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Brif description
of the instrument modifying the charge under section |
Letter of
Hypothecation for securing Machineries / Vehicles / Goods / Book-Debts) Form
No. F110E Equitable Mortgage
by deposit of title deeds (confirmation letter) |
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Date of
Instrument |
29.09.2006 |
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Particular of the
present modification |
Facilities
Sanctioned to the company have been from Rs. 161.000 millions to Rs. 187.900
millions |
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.53 |
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|
1 |
Rs.80.41 |
|
Euro |
1 |
Rs.54.52 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
|
54 |
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 |
|