MIRA
INFORM REPORT
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Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
WMI CRANES LIMITED |
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Registered Office : |
Industry Manor, Prabhadevi, Mumbai – 400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.10.1975 |
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Com. Reg. No.: |
018585 |
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CIN No.: [Company
Identification No.] |
U74210MH1975PTC018585 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMW02485A |
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PAN No.: [Permanent
Account No.] |
AAACW0328C |
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Legal Form : |
Closely held Public Limited Liability Limited Company |
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Line of Business : |
Manufacture of Materials Handling Equipments |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 571348 |
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Status : |
Good |
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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. Fundamentals are strong and healthy. Trade relations are fair.
Business is active. Payments are correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Industry Manor, Prabhadevi, Mumbai – 400025, Maharashtra, India |
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Tel. No.: |
91-22-24301211 |
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Fax No.: |
91-22-24309175 |
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E-Mail : |
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Website : |
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Plant 1 : |
Bhandup Village Raod, Bhandup, Mumbai – 400078 |
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Plant 2 : |
Plot No. C – 63, MIDC, Jejuri, Pune - 412302 |
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Branches : |
² 4 / 2, Millers
Raod, Bangalore – 560052 ² 10, Middleton
Row, Kolkata – 700071 ² 302 / 303,
Bhandari House, 91, Nehru Place, New Delhi - 110019 |
DIRECTORS
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Name : |
Mr. Gopal A Vaziran |
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Designation : |
Chairman and Managing Director |
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Name : |
Mrs. Padma G. Vazirani |
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Designation : |
Director |
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Name : |
Mr. Dinesh G. Vazirani |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Materials Handling Equipments |
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Products : |
Cranes: General Purpose EOT
Cranes Bulk Handling
Equipment : |
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GENERAL INFORMATION
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Customers : |
© Public Utilities
Boards, Singapore © International
Combustion Limited, Parganas © Movers (India)
Private Limited, Kenya © SMS India
Limited, Bangladesh © Aarti Strips
Private Limited, Nepal © Athi River
Mining Limited, Kenya © Amreli Steels
Private Limited Karachi, Pakistan |
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Bankers : |
Ing Vysya Bank Limited Mittal Towers, A – Wing, Ground Floor, 210, Nariman point, Mumbai -
400021 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
H.N. Mehta Associates Chartered Accountants |
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Address : |
50 – 51, 4th Floor, Alli Chambers, Tamarind Lane, Flora
Fountain, Mumbai – 400023 |
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Associates : |
² Granada Energy
Systems Private Limited ² Strom Kraft
Controls ² Dynamic Designs
and Systems Private Limited ² Planet Safffron
India Private Limited ² Saffron Art
Private Limited ² Sensational
Trading Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs.10/- each |
Rs.25.000 millions |
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420000 |
8% Preferences Shares |
Rs.10/-each |
Rs.4.200 millions |
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1080000 |
11% Preferences Shares |
Rs.10/-each |
Rs.10.800 millions |
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Total |
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Rs.40.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
999920 |
Equity Shares |
Rs.10/- each |
Rs.9.999
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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9.999 |
9.999 |
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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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132.838 |
88.834 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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142.837 |
98.833 |
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LOAN FUNDS |
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1] Secured Loans |
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23.279 |
58.452 |
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2] Unsecured Loans |
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23.953 |
24.494 |
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TOTAL BORROWING |
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47.232 |
82.946 |
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DEFERRED TAX LIABILITIES |
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1.031 |
0.000 |
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TOTAL |
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191.100 |
181.779 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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92.407 |
67.865 |
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Capital work-in-progress |
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12.458 |
5.080 |
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INVESTMENT |
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0.784 |
0.001 |
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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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105.014 |
113.708 |
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Sundry Debtors |
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181.033 |
151.918 |
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Cash & Bank Balances |
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97.370 |
1.988 |
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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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44.171 |
34.521 |
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Total
Current Assets |
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427.588 |
302.135 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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317.023 |
185.290 |
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Provisions |
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25.114 |
8.012 |
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Total
Current Liabilities |
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342.137 |
193.302 |
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Net Current Assets |
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85.451 |
108.833 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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191.100 |
181.779 |
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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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589.452 |
434.247 |
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Other Income |
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7.752 |
2.071 |
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Total Income |
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597.204 |
436.318 |
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Profit/(Loss) Before Tax |
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70.161 |
22.481 |
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Provision for Taxation |
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26.157 |
7.563 |
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Profit/(Loss) After Tax |
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44.004 |
14.918 |
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Earnings in Foreign Currency : |
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Export Earnings |
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14.756 |
8.948 |
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Total Earnings |
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14.756 |
8.948 |
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Imports : |
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Raw Materials |
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16.829 |
8.991 |
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Traveling Expenses – Purchase of FC |
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0.401 |
0.237 |
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Commission Sales |
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0.107 |
0.000 |
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Total Imports |
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17.337 |
9.228 |
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Expenditures : |
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Manufacturing Expenses |
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494.658 |
340.865 |
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Administrative Expenses |
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57.608 |
45.855 |
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Interest |
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1.706 |
8.372 |
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Depreciation & Amortization |
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5.563 |
4.626 |
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Staff Costs |
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61.494 |
47.476 |
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Total Expenditure |
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621.029 |
447.194 |
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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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7.36 |
3.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
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11.90 |
5.17 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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13.49 |
6.07 |
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Return on Investment (ROI) (PBT/Networth) |
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0.49 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.39 |
19.5 |
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Current Ratio (Current Asset/Current Liability) |
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1.24 |
1.56 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
²
Land
²
Buildings
²
Railways Sidings
²
Plant and Machinery
²
Computers
²
Furniture and Fixtures
²
Typewriters
²
Telephone
²
Installations
²
Electrical
²
Fittings
²
Office Equipments
²
Vehicles
²
Air Conditioning
Directors Reports:
OPERATIONS
They have taken active
part in the Economic Growth of the country and this year they have recorded
Turnover of Rs. 691 Million. Looking at the challenge of the growing market,
they have taken necessary steps for Upgradation of Technology, ordering of new
machines and additional manufacturing facilities at their plant at Jejuri at
Pune.
WMI has more than
45 years experience in the Design and Manufacture of Cranes and when it comes
to supply of Heavy Duty Cranes, which means the availability of Crane 18 to 20
hours a day, the customers give importance to technology, quality and
experience and they are the preferred supplier of such type of cranes. Some of
the examples of Heavy Duty Cranes supplied are:
1. 1 No. Double
Girder EOT Crane for TG Hall -105T/15T/2/15T to Karnataka Power Corporation for
their Bellary Thermal Power Project.
2. 80/1OT x 22 M
Span for Hot Strip Mill for Jindal Vijaynagar Steel Ltd., Bellary.
3. 70/1 OT 23.2 M
Span for Turbine Plant for Triveni Industries Ltd.
4. 100/20T
Capacity 22.3M Span Crane for Welspun Gujarat Stahl Rohren Ltd.
5. 110/40T
Capacity 24M Span Ladle Handling EOT Crane for Bhushan Steel & Strips Ltd.
6. 175/75T
Capacity 28.5M Span EOT Crane for BHEL, Hyderabad.
7. 125+40+10 Four
Girder Hot Metal Duty EOT Crane for Sunflag Iron & Steel Ltd.
The backlog of
Orders as on date is Rs. 544 Million and they expect to book orders at Rs. 30
to Rs. 40 Millions every month and they are confident of achieving growth rate
at 25% and more.
IMPLEMENTATION OF
ERP FOURTH SHIFT PACKAGE
Company is in the
process of implementing ERP Fourth Shift package for Purchase/Planning/
Manufacturing/Sales activities and the work has been entrusted to Softbrand
Research India Pvt. Ltd., Bangalore and it is likely to be completed and
implemented during the next Financial Year.
EXPORTS
During the year
the Company has exported Cranes to Bangladesh and spare parts to
Bangladesh, Sri Lanka, Indonesia, Nairobi and Pakistan for value
of Rs. 15 Millions.
OPERATION OF PLANT
SITUATED AT JEJURI
Operation of the Plant
at Jejuri is satisfactory. During the year, the turnover at Jejuri Plant is Rs.
204 Million. Two Nos. of CNC Flame Cutting Machine for Oxyfuel and Plasma
Cutting worth Rs. 4.5 Million German make imported from
Messer Cutting and
Wielding Company, China has been installed and working satisfactorily. To
facilitate increase in Production, One more Shed of approximately 2280 Sq. m.
have been constructed and put into use. Further, an additional Shed of
approximately 3200 Sq. m. is under construction and likely to be completed by
next Financial Year.
EXPANSION AND
MODERNISATION OF THE PLANT AT JEJURI
To keep pace with
the growing economy, WMI felt that there is a need to add additional modern
machines and carry out the expansion of their Plant at Jejuri. Keeping these
objectives in mind and to raise additional funds, an Agreement of Sale of Land
at Bhandup was entered into between WMI and Ashford Estates on 7th June, 2005.
WMI received the advance payment of Rs. 10.80 Crores from Ashford. The most
important Pre-conditions of the Sale of Land was that the Union will negotiate
the terms of VRS with the Workmen and also those Workmen who need a Job should
be
willing to go to
their Plant at Jejuri.
Union in the
Company is bargaining representative on behalf of the workers to discuss terms
and conditions, salaries, allowances, benefits etc. whereas the Union have no
right to negotiate the terms of VRS on behalf of the Workmen, and the Workmen
expressed their firm desire on holding on to their jobs instead of accepting
one time monetary gains. The confirmation letters that Workmen do not wish to
accept VRS has been received by them from the Union. The development on these
matters along with supporting documents was submitted to Ashford immediately.
Also other difficulties in complying with other Pre-conditions of the Agreement
has been explained to the potential buyer.
Ashford Estates
after receiving their detailed documents realized that they have genuine
reasons of not complying with Pre-conditions of the Agreement.
Ashford Estates
wanted to make sure that this Property is not sold to third Party without their
knowledge and without getting advance payment back, and from this angle, they
have filed a Suit in the High Court of Mumbai.
After filing the
Suit, they had cordial meetings with Ashford Estates and they have given them
the proposal of receiving the advance payment back along with the interest
charges and some amount of compensation. The negotiations are active with the
Ashford Estates and they hope to arrive at an amicable settlement in a short
time.
FINANCE AND
ACCOUNTS
During the Year,
the Company has achieved a turnover of Rs. 691 Million as against Rs. 470
Million in the previous Year resulting in an increase of 47%, which is
considered a good achievement. For the Year the Gross Profit before
depreciation and interest works out to Rs. 77.430 Million as against Rs. 35.480
Million in the previous Year showing an increase of 118%. A sum of Rs. 5.563
Million towards depreciation and Rs. 1.706 Million towards interest have been
provided resulting in a Profit of Rs. 70.161 Million and after providing Rs.
26.156 Million towards Income Tax/Deferred Income Tax, Fringe benefit Tax,
Wealth Tax and previous Year Taxes, balance Rs. 44.005 is carried forward to
Appropriation Account.
As Per Web Details
Company Profile:
In the modern era industrial development has been one of the
of positive change the world over. A necessity for industrialisation is the
evolution and formation of strong power and material handling industries. WMI
provides solutions in both these industries. WMI can provide the best solution
to any material handling problem coupled with satisfying any consumers need for
cost effective power. With solutions to both these problems industries can move
towards rapid development and technological enhancement.
WMI Cranes Limited is
the leading manufacturer of material handling equipment in India, pioneering
the revolution of reliability and performance.
WMI's equipment can be found in all parts of the country in
a range of widely differing applications. Currently, WMI has supplied over
5,000 cranes all over India, solving problems in the lifting and handling area.
An all India network of strategically located offices staffed by experienced Marketing
and Service Engineers carry forward WMI's pioneering spirit towards problem
solving. Add to this a modern manufacturing facility and an unflinching
dedication to quality and you have a product that exceeds customer
expectations.
WMI has a long standing association with MAN TAKRAF and MAN B&W (Germany),
Europe's leading suppliers of capital goods.
MAN TAKRAF is the material handling division of MAN AG, concentrating on
specialised mining equipment and bulk material handling products. The annual turnover
of MAN AG is DM 18 billion and the Group employs about 57,000 people.
WMI and MAN TAKRAF are partners for various projects in
India.
WMI Cranes excellence stems from a vision towards innovation and leadership in
technology and quality To enhance it's own efforts towards continuous
improvement and to adopt the world's best technologies, WMI has associated
itself with the world leader in the material handling industry, namely MAN
TAKRAF of Germany
WMI Cranes excellence stems from a vision towards innovation and leadership in
technology and quality. WMI strives to enhance it’s own efforts towards
continuous improvement and to adopt the best technologies available in the
world.
WMI Cranes Ltd., the leading manufacturers of cranes in India are the Pioneers
in the manufacturing of Material Handling Equipment in the country. Today WMI’s
name is synonymous with
heavy lifting. An array of WMI cranes have been supplied all over India.
Each crane a creative solution to special handling problem.
These cranes are extensively used for Handling materials in Machine shop,
Structural shop, Chemical, Fertilizer and Paper plants, Cement Factories, Dams,
Stock yards, etc.. All cranes are engineered and built to meet the requirements
of all. users. Thus tailor made for the job, these units handle the load with
utmost ease of. maintenance, efficiency and economy.
Business Activities:
Components for material handling equipment are manufactured
by expert. engineers and experienced workmen at Factory in Bhandup, Mumbai.
Each component is designed for the required crane application and tested for
quality. WMI uses the highest quality materials and assembled components are
thoroughly. tested before dispatch.
Standardization at WMI cranes provides customers with the
flexibility of. choosing the appropriate crane for their application, and
concurrently gives them. enormous cost savings in maintenance.
Product Support : WMI is committed to support its equipment through its.
entire life. An established network of strategically located offices staffed
by. experienced marketing and service engineers carry forward WMI’s pioneering.
spirit towards problemsolving. Add to this a modern manufacturing facility and
an. unflinching dedication to quality and you have a product that exceeds
customer. expectations.
Core Competencies : Components for material handling equipment are
manufactured by expert engineers and experienced workmen at WMI factory. Each
component is designed for the required crane application and tested for.
quality. WMI uses the highest quality material and assembled components are.
thoroughly tested before despatch.
Ongoing ISO-9000 certification Process through Auditors, DET NORSKE VERITAS (DNV). Implementation of MRP9000 for material control and process planning. Programs for CAD designing to achieve better tolerances for 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.39.32 |
|
UK Pound |
1 |
Rs.81.35 |
|
Euro |
1 |
Rs.56.75 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|