MIRA
INFORM REPORT
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Report Date : |
29.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SHARDLOW INDIA LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.08.1960 |
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Com. Reg. No.: |
18-4235 |
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CIN No.: [Company
Identification No.] |
U35990TN1960PLC004235 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES00227D |
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Legal Form : |
A closely held pubic limited liability company. |
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Line of Business : |
Manufacturer, Exporter, Importer and Distributor of Crank Shafts,
Axle Shafts, Connecting Rods, Axle Beams, Camshafts, Steering Knuckle and C.
V. Joint Coupling. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 570000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track.
Company’s profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office / Factory : |
" |
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Tel. No.: |
91-44-25375809 |
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Fax No.: |
91-44-25375446 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Factory 1 : |
Sipcot Industrial Complex, Hosu - 635 126 |
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Overseas Offices : |
Ř
Amalgamations Group, Ivankovacka
24/1, 11000 Tel No :- + 381-11754037 Fax No :- + 381-11752771 Ř
Amalgamations Group, Kaasgrabengasse
7, 1190 Tel No :- +43-1320338 Fax No :- +43-13207075 Ř
Wallace Cartwright and Company
Limited, 55/56, Tel No :- + 44171-6292476 Fax No :- + 44171 4919047 |
DIRECTORS
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Name : |
Mr. Anantharamkrishnan Krishnamoorthy, Esq. |
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Designation : |
Chairman |
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Date of Birth/Age : |
26th September,
1937 |
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Name : |
Mr. S. Raghavan Srinivasan, Esq. |
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Designation : |
Managing Director |
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Date of Birth/Age : |
31st May, 1939 |
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Name : |
Mr. Ralf John Madden, Esq. |
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Designation : |
Director |
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Date of Birth/Age : |
27th February, 1937 |
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Name : |
Mr. Peruvada Viswanathan Sundaram, Esq. |
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Designation : |
Director |
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Date of Birth/Age : |
27th November, 1943 |
KEY EXECUTIVES
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Name : |
Mr. Kulithalai Srinivasan Suresh, Esq. |
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Designation : |
Secretary |
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Date of Birth/Age : |
14th January, 1961 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter, Importer and Distributor of Crank
Shafts, Axle Shafts, Connecting Rods, Axle Beams, Camshafts, Steering Knuckle
and C. V. Joint Coupling. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production # |
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Crankshafts and other forgings |
M.T. |
17000 |
12600 |
4732 |
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Machined Crankshafts |
Nos. |
40000 |
66000 |
72486 |
GENERAL INFORMATION
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Suppliers : |
·
Tamilnadu Heat Treatment and Fettling Services Private Limited ·
Chandrakanth Industries. ·
Gautam Engineering Works. ·
Hitech induction (P) Limited ·
Prakash Motor Works.
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No. of Employees : |
250 |
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Bankers : |
Central Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
RGN Price and Company Chartered Accountants |
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Address : |
Chennai, |
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Holding Company : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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90,00,000 |
Equity Shares |
Rs.
10/- each |
Rs. 90.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,00,000 |
Equity Shares |
Rs.
10/- each |
Rs.
80.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
80.000 |
80.000 |
80.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
159.679 |
159.679 |
61.100 |
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4] (Accumulated Losses) |
[95.160] |
[87.066] |
0.000 |
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NETWORTH |
144.519 |
152.613 |
141.100 |
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LOAN FUNDS |
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1] Secured Loans |
150.140 |
82.534 |
37.500 |
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2] Unsecured Loans |
0.000 |
2.148 |
5.500 |
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TOTAL BORROWING |
150.140 |
84.682 |
43.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
294.659 |
237.295 |
184.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
93.412 |
101.412 |
107.300 |
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Capital work-in-progress |
63.843 |
2.859 |
0.000 |
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INVESTMENT |
2.800 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
1.890 |
1.499 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
241.464
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250.242 |
151.500 |
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Sundry Debtors |
117.841
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115.246 |
102.200 |
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Cash & Bank Balances |
3.978
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8.243 |
4.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
30.569
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23.061 |
25.400 |
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Total
Current Assets |
393.852
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396.792 |
284.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
260.498
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263.583 |
206.000 |
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Provisions |
0.640
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1.684 |
1.700 |
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Total
Current Liabilities |
261.138
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265.267 |
207.700 |
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Net Current Assets |
132.714
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131.525 |
76.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.500 |
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TOTAL |
294.659 |
237.295 |
184.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
820.496 |
771.048 |
579.400 |
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Other Income |
13.953 |
11.048 |
7.500 |
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Total Income |
834.449 |
782.096 |
586.900 |
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Profit/(Loss) Before Tax |
[7.845] |
10.636 |
[11.400] |
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Provision for Taxation |
0.249 |
0.901 |
[00.300] |
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Profit/(Loss) After Tax |
[8.094] |
11.537 |
[11.100] |
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Expenditures : |
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Material Cost |
452.852 |
393.889 |
238.300
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Employees'
Remuneration and Benefits |
53.959 |
50.340 |
46.600
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Other
Expenditure |
310.353 |
302.622 |
86.000
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Depreciation |
12.648 |
12.623 |
12.900
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Forging Dies
Amortised |
12.483 |
12.018 |
0.000 |
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Excise
Duty |
0.000 |
0.000 |
72.200
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Power
& Fuel Cost |
0.000 |
0.000 |
72.300
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Selling
and Administration Expenses |
0.000 |
0.000 |
18.600
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Miscellaneous
Expenses |
0.000 |
0.000 |
27.300
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Interest
& Financial Charges |
0.000 |
0.000 |
33.600
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Total Expenditure |
842.295 |
771.492 |
607.800 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
0.79 |
0.43 |
1.61 |
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Long
Term Debt-Equity Ratio |
0.15 |
0.03 |
0.61 |
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Current
Ratio |
1.11 |
1.15 |
0.98 |
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TURNOVER
RATIOS |
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Fixed
Assets |
2.84 |
2.68 |
1.79 |
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Inventory |
3.79 |
4.38 |
3.84 |
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Debtors |
7.99 |
8.09 |
7.07 |
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Interest
Cover Ratio |
0.59 |
1.55 |
0.66 |
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Operating
Profit Margin(%) |
2.78 |
4.84 |
6.06 |
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Profit
Before Interest And Tax Margin(%) |
1.43 |
3.41 |
3.83 |
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Cash
Profit Margin(%) |
0.32 |
2.75 |
0.31 |
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Adjusted
Net Profit Margin(%) |
[1.03] |
1.32 |
[1.92] |
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Return
On Capital Employed(%) |
0.00 |
11.20 |
0.00 |
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Return
On Net Worth(%) |
0.00 |
5.68 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
A unit company of the Amalgamations group-Shardlow
The company is now part of United India and Forging Limited,
a leading manufacturer of forgings in
BUSINESS
Subject is manufacturers of intricate forgings for Engines,
Gear Box and Transmission. The company specialises in Crankshaft Forgings for
the 2,3,4 and 6 cylinder types forged in position and twisting process wherever
reqired. It also has facility for manufacture of Axle Beams, Axle Shafts,
Rocker Shafts and a host of gears Components. The maximum size of drop forgings
being limited to 140 Kg and Upset forgings to 200 mm Dia.
Subject has a separate facility for machining components for
Automotive and Industrial Applications Crankshafts of 2,3,4 and 6 Cylinder
types required for Tractors, Passenger Cars and Heavy Duty Vehicles are
machined and supplied for both Petrol and Diesel applications.
It imports raw materials for manufacturing spares and
components for their machines.
It exports raw materials for manufacturing spares ad
components for their machines.
The Group Activities can be classified into four sectors
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Engineering
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Trading
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Plantations
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Services
FIXED ASSETS
- Land
- Buildings
- Plant &
Machinery
- Electrical
Installation
- Vehicles
- Furniture,
Fixture & Office Equipments
- Computers
- Leased
Vehicles
PERFORMANCE:
The Turnover of
the Company for the year 2005-06 was Rs. 820.500 Millions as against Rs. 771
Millions in the previous year. The Company recorded a Loss of Rs. 7.845
Millions as against Profit of Rs. 10.636 Millions in the previous year.
The Company is
taking comprehensive actions to improve the profitability despite the impact
due to severe competition in prices, increases in raw material and energy
costs. The Company has commissioned the New Heat Treatment facility with energy
efficient continuous processing Furnaces. This coupled with investments on
alternate energy suppliers and additional higher efficiency equipments is
expected to yield positive results.
The products are
being continuously rationalised to improve the recovery with higher yield and
value added products like finish machined crankshafts and Rear Axle Shafts. The
emphasis on controlling the cost are continuing and consequent on the actions
taken by the Company, it is expected that the operating results would improve
in the current year. The production and sales during the current year is
expected to improve with increased production of Forgings and machined
crankshafts as well as exports and supply of new Components for OE
manufacturers.
EXPORTS :
The export for the
year was Rs. 111 Millions as against Rs. 60.600 Millions in the previous year
with an increase of 83%.
EXPANSION :
Taking advantage
of the market opportunities, the Company is installing additional facilities in
the machining lines for supply of crankshafts to Leading O.E. Manufacturers.
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.40.64 |
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1 |
Rs.80.44 |
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Euro |
1 |
Rs.54.65 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
2 |
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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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40 |
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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