MIRA
INFORM REPORT
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Report Date : |
06.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MICROFINISH VALVES PRIVATE LIMITED |
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Registered Office : |
B 161-162, Industrial Estate, Gokul Road, Hubli - 580030,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.03.1983 |
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Com. Reg. No.: |
08-5209 |
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CIN No.: [Company
Identification No.] |
U29120KA1983PTC005209 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM03593C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacture of ball valves, bellows sealed globe valves,
globe valves for chlorine service, and knife edge gate valves. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track
records. Financial position of the company is very strong. Payments are
usually correct and as per commitments. The company is doing very well. It can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
B 161-162, Industrial Estate, Gokul Road, Hubli - 580030,
Karnataka, India |
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Tel. No.: |
91-836-2212404, 2210611 |
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Fax No.: |
91-836-2331438 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Mahendra K. Vikamshi |
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Designation : |
Whole Time Director |
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Address : |
28 Kamal Kunj, Vishweswarnagar, Hubli, Dharwad – 580032, Karnataka,
India |
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Date of Birth/Age : |
03.09.1951 |
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Date of Appointment : |
20.03.1983 |
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Name : |
Ms. Jaya B Sali |
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Designation : |
Whole Time Director |
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Address : |
Girija House No. 38, Sirur Park, Hubli, Dharwad – 580030,Karnataka,
India |
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Date of Birth/Age : |
07.10.1955 |
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Date of Appointment : |
01.04.1997 |
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Name : |
Mr. Tilak K Vikamshi |
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Designation : |
Director |
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Address : |
28 Kamal Kunj, Vishweswarnagar, Hubli, Dharwad – 580032, Karnataka,
India |
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Date of Birth/Age : |
16.01.1947 |
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Date of Appointment : |
20.03.1983 |
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Name : |
Mr. Deepak K Vikamshi |
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Designation : |
Managing Director |
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Address : |
28 Kamal Kunj, Vishweswarnagar, Hubli, Dharwad – 580032, Karnataka,
India |
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Date of Birth/Age : |
05.01.1949 |
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Date of Appointment : |
20.03.1983 |
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Name : |
Mr. Tushar K Vikamshi |
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Designation : |
Director cum Chairman |
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Address : |
28 Kamal Kunj, Vishweswarnagar, Hubli, Dharwad – 580032, Karnataka,
India |
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Date of Birth/Age : |
24.07.1950 |
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Date of Appointment : |
20.03.1983 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Mahendra K. Vikamshi |
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12480 |
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Mr.Rajeev Vikamshi |
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10 |
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Mr.Pramod Vikamshi |
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10 |
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Mr.Tilak K Vikamshi |
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12480 |
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Mr.Deepak K Vikamshi |
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12480 |
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Mr.Tushar Vikamshi |
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12480 |
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Mr.Anand Vikamshi |
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10 |
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Mrs.Jaya B Sali |
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50 |
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Total |
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50000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of ball valves, bellows sealed globe valves,
globe valves for chlorine service, and knife edge gate valves. |
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Products : |
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GENERAL
INFORMATION
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Suppliers : |
· Western Precicast Private Limited · Malnad Alloy Castings Private Limited · Pai Engineering Works · Maharashtra Forge Private Limited · Intolcast Private Limited · Gujarat Precision Cast Private Limited · Inmarco Industries Private Limited |
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No. of Employees : |
About 150 |
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Bankers : |
Canara bank P.O. Box No. 50, Dharwad –
580032, Karnataka, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Harlapur and Company Chartered Accountants |
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Address : |
20 Narpal Building, Lamington Road, Hubli – 580020, Karnataka, India |
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Tel No: |
91-836-2362991 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 Million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs. 10/- each |
Rs. 0.500 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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0.500 |
0.500 |
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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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262.515 |
209.215 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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263.015 |
209.715 |
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LOAN FUNDS |
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1] Secured Loans |
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48.226 |
3.336 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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48.226 |
3.336 |
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DEFERRED TAX LIABILITIES |
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1.124 |
1.142 |
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TOTAL |
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312.365 |
214.193 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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33.984 |
23.469 |
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Capital work-in-progress |
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8.769 |
2.889 |
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INVESTMENT |
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8.680 |
8.669 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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141.691 |
86.224 |
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Sundry Debtors |
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104.899 |
61.678 |
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Cash & Bank Balances |
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97.700 |
85.278 |
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Other Current Assets |
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7.444 |
7.392 |
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Loans & Advances |
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7.973 |
6.715 |
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Total
Current Assets |
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359.707 |
247.287 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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92.938 |
62.032 |
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Provisions |
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5.837 |
6.089 |
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Total
Current Liabilities |
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98.775 |
68.121 |
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Net Current Assets |
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260.932 |
179.166 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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312.365 |
214.193 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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329.167 |
243.097 |
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Other Income |
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12.158 |
13.419 |
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Total Income |
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341.325 |
256.516 |
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Profit/(Loss) Before Tax |
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79.792 |
47.505 |
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Provision for Taxation |
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25.922 |
16.148 |
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Profit/(Loss) After Tax |
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53.870 |
31.357 |
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CIF Value of Imports |
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Raw Materials |
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22.065 |
5.431 |
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Capital Goods |
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1.544 |
0.011 |
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Total Imports |
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23.609 |
5.442 |
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Expenditures : |
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Financial charges |
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1.263 |
0.108 |
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Other Expenditure |
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260.059 |
208.690 |
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Total Expenditure |
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260.059 |
208.798 |
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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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15.78 |
12.22 |
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Net Profit Margin (PBT/Sales) |
(%) |
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24.24 |
19.54 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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19.82 |
17.36 |
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Return on Investment (ROI) (PBT/Networth) |
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0.30 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.56 |
0.34 |
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Current Ratio (Current Asset/Current Liability) |
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3.64 |
3.63 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
MICROFINISH
VALVES PRIVATE LIMITED |
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Presented By |
B
161-162, Industrial Estate, Gokul Road, Hubli - 580030, Karnataka |
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1) Date and description of instrument creating the change |
Hypothecation of good
and services received under advanced payment guarantee excepted on 14.06.1991 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000
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 |
Goods an services
received under advance payment guarantees. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest
17.5 % Rs. 10.000 Millions
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5) Name and Address and description of the person entitled to the charge. |
Canara bank P.O. Box No. 50, Dharwad –
580032, Karnataka, India |
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6) Date and brief description of instrument modifying the charge |
Nil |
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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. |
Nil |
As Per Website
Subject was established in 1971 to manufacture ball valves, bellows sealed globe valves, globe valves for chlorine service, and knife edge gate valves. In the 1980's Microfinish started the manufacture and sale of chemical process and slurry pumps.
They are recognized as a quality manufacturer of reliable
valves and pumps for industry. Their wealth of experience has enabled
Microfinish to become a prominent supplier of ball valves throughout the world
and a reputable manufacturer of specialized pumps in India.
Industrial technology is progressing at a remarkable rate,
so they have established a research and development department equipped with
modern test facilities.
Their manufacturing facilities are located in separate and
well laid-out buildings with ample scope for future expansion. The industrial
estate in Hubli is one of the biggest and fastest developing manufacturing
zones in the state of Karnataka. The city of Hubli is well served by air, rail,
and road connections; it is situated on the national highway NH 4 between Mumbai
and Bangalore.
Production
Microfinish has state of the art facilities including CNC
horizontal and vertical lathes, as well as CNC milling, special purpose, and
ball lapping and grinding machines.
Their qualified welders use SMAW, MIG, and TIG welding equipment
for pups, jackets, fully welded valve designs, and hard facing.
Microfinish
in-house facilities include:
Full
fledged pattern shop
Calibration
room
Equipment
for production tests -
Hydro
shell and seat
Low
and high pressure gas
Vacuum
Helium
leak
Fugitive
emissions
Torque
Equipment
for prototype tests -
Fire
safe
High
temperature steam up to 400 °C (752 °F)
Cryogenic
up to -196 °C (-321 °F)
Cyclic
to determine seat and packing lives.
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.82.08 |
|
Euro |
1 |
Rs.56.96 |
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 |
8 |
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OPERATING SCALE |
1~10 |
8 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
8 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
8 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
72 |
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 |
|