MIRA
INFORM REPORT
|
Report Date : |
07.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
EMS TECHNOLOGIES PRIVATE LIMITED |
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Registered Office : |
Gat No. 322 [Old No. 1546], Pirangut, Pune – 411042, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.09.1998 |
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Com. Reg. No.: |
25 -12922 |
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CIN No.: [Company
Identification No.] |
U72200PN1998PTC012922 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEE01485B |
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PAN No.: [Permanent
Account No.] |
AAACC3841Q |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
To design, develop, manufacture, assemble, produce, either and to sell,
resell, lease, hire, license, operate, trade in, act as agent, deal in,
repair, service, import and export all types of electronic, electrical,
mechanical, optical, electro-mechanical machines, devices, systems in general
following machines in particular : -
Wave Soldering Machines -
Screen Printers -
Loader and Unloader -
PCB Reversing Machines -
Reflow Oven -
Solder Paste Softener and -
Manual Screen Printers and spare parts, components, accessories, instruments, software
development and sub-contract manufacturing with regard to machineries. |
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 86652 |
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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
records. 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 : |
Gat No. 322 [Old No. 1546], Pirangut, Pune – 411042, Maharashtra |
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Tel. No.: |
91-2139-22308/2922060/ 2923105 / 91-20-32501000 |
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Fax No.: |
91-2139-22308 / 2922333 / 91-20-25171723 |
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E-Mail : |
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Website : |
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Domestic / Export Sales Office : |
265 Navi Peth, S. K. Chambers, Second Floor, Pune - 411 030,
Maharashtra, India Contact Person: Mr. L. Sampath (Assistant General Manager
- Marketing) |
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Tel. No.: |
91-20-2433 0192/24332898 |
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Fax No.: |
91-20-2433 0159 |
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E-Mail : |
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Branches : |
No. 343, Second Floor ,11th Floor, Sampige Plaza, Sampige Road, Malleswaram, Bangalore-
560003, Karnataka, India F - 9, 12C, 13 First Floor, Mayur Vihar, Phase 1, Opposite Pocket 1,
New Delhi - 110 091 3 & 4, Second Floor, Priyan Plaza, 52, Manickam Road, Aminjikarai,
Chennai - 600029 |
DIRECTORS
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Name : |
Mr. Takeshiko Murakami |
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Designation : |
Chairman |
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Address : |
43-37 1-Chome Minami-Cho Fuchu-Shi, Tokyo 183-0026, Japan |
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Date of Birth/Age : |
01.02.1943 |
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Date of Appointment : |
01.10.1998 |
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Name : |
Mr. Prakash Ratnaparkhi |
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Designation : |
Managing Director |
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Address : |
Kawan 17 Amar Co-operative Housing Society, Erandwane, Pune – 411004,
Maharashtra, India |
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Date of Birth/Age : |
12.04.1946 |
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Date of Appointment : |
01.10.1998 |
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Name : |
Mr. Ravindra Ratnaparkhi |
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Designation : |
Director |
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Address : |
Manohar 11 Parijat Cooperative Housing Society, Bibwewadi, Pune –
411037, Maharashtra, India |
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Date of Birth/Age : |
09.08.1942 |
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Date of Appointment : |
01.10.1998 |
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Name : |
Mr. Shrikant Pophale |
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Designation : |
Director |
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Address : |
Audumber Plot No. 52, CTS 101/1, Erandwane, Pune – 411004,
Maharashtra, India |
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Date of Birth/Age : |
22.01.1942 |
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Date of Appointment : |
01.10.1998 |
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Name : |
Mr. Yoko Murakami |
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Designation : |
Director |
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Address : |
43-37 1-Chome Minami-Cho Fuchu-Shi, Tokyo 183-0026, Japan |
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Date of Birth/Age : |
10.08.1963 |
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Date of Appointment : |
01.10.1998 |
KEY EXECUTIVES
|
Name : |
Mr. C V Kulkarni |
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Designation : |
Company Secretary |
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Address : |
Flat No.2, B Wing, Suyash Apartments, 769/770 Sadashiv Peth Barrister
Gadgil Street, Pune – 411 030, Maharashtra |
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Tel No: |
91-20-24467238 / 24467239 |
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Email : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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Mr. Prakash Ratnaparkhi |
|
200 |
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Mr. Ravindra Ratnaparkhi |
|
200 |
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Mr. Shrikant Pophale |
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200 |
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Shirish Holdings & Finance Private Limited |
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20617 |
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Shirar Investment & Finance Private Limited |
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20617 |
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Mugdha Investment & Finance Private Limited |
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20617 |
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Electronica Mechatroni Systems India Private Limited |
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640400 |
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Minami Engineering Company Limited |
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846786 |
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Electradata Systems Private Limited |
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50000 |
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Electronica Exports Private Limited |
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80000 |
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Technicons |
|
48500 |
BUSINESS DETAILS
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Line of Business : |
To design, develop, manufacture, assemble, produce, either and to
sell, resell, lease, hire, license, operate, trade in, act as agent, deal in,
repair, service, import and export all types of electronic, electrical,
mechanical, optical, electro-mechanical machines, devices, systems in general
following machines in particular : -
Wave Soldering Machines -
Screen Printers -
Loader and Unloader -
PCB Reversing Machines -
Reflow Oven -
Solder Paste Softener and -
Manual Screen Printers and spare parts, components, accessories, instruments, software
development and sub-contract manufacturing with regard to machineries. |
GENERAL
INFORMATION
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Bankers : |
· Bank of Baroda Shivaji Nagar Branch, Pune – 411005 · State Bank of India · Indusind Bank Limited · Shree Suvarna Sah. Bank , Pune · Saraswat Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. N. Gogate & Company Chartered Accountants |
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Address : |
“Sanket” , 2123 Sadashiv Peth, Vijayanagar Colony, Pune – 411 030 |
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Associates/Subsidiaries : |
· Electronica Mechatronic Private Limited · Electronics Machine Tools Limited · Minami Engineering Company Limited, Japan |
CAPITAL STRUCTURE
‘
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500000 |
Equity Shares |
Rs. 10/- each |
Rs. 25.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1705800 |
Equity Shares |
Rs. 10/- each |
Rs. 17.058
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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17.281 |
17.281 |
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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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4.382 |
3.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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21.663 |
20.281 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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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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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.247 |
0.098 |
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TOTAL |
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21.910 |
20.379 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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3.710 |
4.080 |
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Capital work-in-progress |
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1.679 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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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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9.712 |
7.090 |
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Sundry Debtors |
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10.046 |
7.041 |
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Cash & Bank Balances |
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4.539 |
5.290 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
2.911 |
2.236 |
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Total
Current Assets |
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27.208 |
21.657 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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7.261 |
2.813 |
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Provisions |
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3.446 |
2.585 |
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Total
Current Liabilities |
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10.707 |
5.398 |
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Net Current Assets |
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16.501 |
16.259 |
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MISCELLANEOUS EXPENSES |
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0.020 |
0.040 |
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TOTAL |
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21.910 |
20.379 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
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39.369 |
32.959 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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39.369 |
32.959 |
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Profit/(Loss) Before Tax |
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2.911 |
3.718 |
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Provision for Taxation |
|
1.529 |
1.608 |
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Profit/(Loss) After Tax |
|
1.382 |
2.110 |
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Earnings in Foreign Currency : |
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Export sales |
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6.003 |
2.303 |
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Foreign Line Commission |
|
9.888 |
8.746 |
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Total Earnings |
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15.891 |
11.049 |
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Imports : |
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Materials & Components |
|
7.082 |
6.069 |
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Capital Goods |
|
0.000 |
0.239 |
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Total Imports |
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7.082 |
6.308 |
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Total Expenditure |
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36.458 |
29.241 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
|
3.51 |
6.40 |
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Net Profit Margin (PBT/Sales) |
(%) |
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7.39 |
11.28 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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8.93 |
14.44 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13 |
0.18 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.49 |
0.26 |
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Current Ratio (Current Asset/Current Liability) |
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2.54 |
4.01 |
LOCAL AGENCY
FURTHER INFORMATION
It has been agreed that the number of Directors would be nominated by the parties as follows:-
|
Name of the company |
Numbers |
|
Electronica Mechatronics [India] Private Limited |
Three |
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Minami Engineering Company Limited, Tokyo |
Two |
If Sumitomo Corporation Company, Tokyo, Japan decides to participate in the Equity Share Capital of the joint venture company by subscribing up to 19% of paid-up share capital, then, Sumitomo would be free to nominate ONE Director on the Board whereas Minami would be nominating ONE Director in place of TWO numbers stated above. On the other hand, if Sumitomo decides not to nominate any Director, then Minami would be nominating TWO Directors.
|
Name of the company |
EMS Technologies
Private Limited |
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Presented
By |
EMS Technologies
Private Limited |
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1) Date and description of instrument creating the change |
22.01.2003 Memorandum of Deed / Entry where company’s property is equitably
mortgaged |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 2.000 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 |
Bank guarantee and inland / foreign LC facilities are given by bank
for which company mortgaged its immovable property in favour of the bank by
way of an equitable mortgage by deposit of title deeds. Details of immovable property are as under
: All that piece and parcel of Non-Agricultural Land bearing at No. 1546
[Old] 322 – C [New], Plot No. 1, situated within the village limits of
Pirangut, Taluka Haveli, District and Registration Sub District Pune in the
State of Maharashtra admeasuring 929.0 square meters or thereabouts together
with all buildings and structures now standing thereon, to be erected
hereafter and the plant & machinery attached to the earth or permanently
fastened to anything attached to the earth, both present and future. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Facility : Bank
Guarantee Rs. 1.000 million Inland / Foreign
LC : Rs. 1.000 million Commission / Interest
as determined by the bank from time to time |
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5) Name and Address and description of the person entitled to the
charge. |
Bank of Baroda Shivaji Nagar
Branch, Pune – 411005 |
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6) Date and brief description
of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
WEBSITE DETAILS
The company is a joint venture company of Electronica Mechatronics Private Limited, (India) and Minami Engineering Company Limited, Japan. Electronica Group pioneers in the manufacturing of indigenous capital equipments which has introduced EDM Technology to Indian Industry, the group has a broad business portfolio covering capital goods for machine tool industry, Plastic moulding, Digital read outs, Carbide tooling etc.
It was established in 1992 for manufacturing of low cost PCB Assembly
indigenous equipments for throughole and SMT assembly, like Manual Stencil
printer, Hot air reflow oven, Rework station, Wavesoldering machine. In-house
capability of manufacturing was complemented by technical collaborations from
reputed European and American companies
In 1995 ISO 9001 certification from TUV of Germany was acquired. In 1995
Technical tie up was done with Minami
Engineering Company Limited of Japan for manufacture of SMT Stencil
printer with buy back arrangement.
In October 1998 a fullfledge Joint Venture was made with Minami Engineering
Company Limited, Japan and new company was named EMS Technologies. Private
Limited.
Minami Group of companies was established in 1971 with manufacturing of a
manual stencil printer. Today it has become a major company with a broad range
machines from Semi-Automatic to Full Vision Fully Automatic machines for fine
pitch stencil printing for SMT and virtually for any application of printing
for Electronic industry. It has branch offices in Singapore, Malaysia,
Philippines, Thailand and India.
Today Minami is the largest Company for its market share for its products in JAPAN. The company's goal in the words of Mr. Takehiko Murakami, Chairman, is "To help make people happy" a goal that saw Minami becoming one of the most trusted and relied name in Japanese and also in Global Market.
Today subject is the leading manufacturer of SMT equipment in India which
offers world-class solution, thanks to its trading partnership with Japanese
multinationals and offer a complete range of SMT line ranging from, entry level
economy models to high end automated lines.
Subject also pioneers in Cable Processing Machines offering complete solution
for any cable processing requirement.
The trading tie-up is with Schleuniger
who are Switzerland based
multinational with factories in U.S.A, and Japan. They have largest market
share in Global market and offers solutions to any type of cable which may go
to any industry.
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
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
|