MIRA
INFORM REPORT
|
Report Date : |
16.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
FLOWSERVE SANMAR LIMITED |
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Formerly Known As : |
SANMAR FOOTWEAR LIMITED |
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Registered Office : |
9, Cathedral Road, Chennai - 600 086, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.09.1987 |
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Com. Reg. No.: |
18-14838 |
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CIN No.: [Company
Identification No.] |
U18209TN1987PLC014838 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHED00088E |
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PAN No.: [Permanent
Account No.] |
AAACD2238A |
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Legal Form : |
Public Limited Liability Company. |
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Line of Business : |
Manufacturing Of Shoe Uppers And Full Shoes |
RATING &
COMMENTS
|
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 1424524 |
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Status : |
Excellent |
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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 and a part of
sanmar group. Available information indicates high financial responsibility
of the company. Directors are reported as experienced, respectable and resourceful
businessmen. Trade relations are fair. Payments are usually correct and as
per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in a medium to long
run. |
LOCATIONS
|
Registered Office/ Corporate Office: |
9, Cathedral Road, Chennai - 600 086, Tamil Nadu, INDIA |
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Tel. No.: |
91-44-2825 8955 / 28128400 / 28128722 |
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Fax No.: |
91-44-2826 9359 / 28112437 / 28112627 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Administrative
office: |
8, Cathedral Road, Chennai – 600 086, Tamil Nadu, India |
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Tel. No.: |
91-44-8258955 |
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Fax No.: |
91-44-8269359 |
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Factory 1 : |
47 / 1, Chettipunyam Village, Chingleput District, Tamil Nadu, INDIA |
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Tel. No.: |
91-4114-264101 |
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Fax No.: |
91-4114-264261 |
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Location : |
Owned |
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Factory 2 : |
147, karapakkam Village, Chennai – 600 097 |
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Tel. No.: |
91-44-24504100 |
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Fax No.: |
91-44-24502124` |
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Area: |
29500 sq.fts |
DIRECTORS
|
Name : |
Mrs. Candra Sankar |
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Designation : |
Directors |
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Date of Birth/Age : |
02.06.1947 |
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Name : |
Mr. M. S. Sekhar |
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Designation : |
Directors |
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Name : |
Mr. Vijay Sankar |
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Designation : |
Directors |
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Date of Birth/Age : |
26.12.1972 |
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Name : |
Mr. P Natrajan |
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Designation : |
Director |
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Address : |
½, “Nandini Old No. 45, new no. 72, First Main road, R A puram,
Chennai – 600 028, Tamil nadu |
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Date of Birth/Age : |
10.10.1955 |
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Date of Appointment : |
11.07.2007 |
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Name : |
Mr. Balasubramaniam Natrajan |
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Designation : |
Director |
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Address : |
A -5 “Sucharita” New no. 124, Old no. 71, Chamiers Road, R A Puram,
Chennai – 600 028 |
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Date of Birth/Age : |
03.10.1946 |
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Date of Appointment : |
11.07.2007 |
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Name : |
Mr. S Gopal |
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Designation : |
Director |
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Address : |
47 A, (Old no.)19 A Fourth
Main road, Gandhi Nagar, Chennai – 600 020, Tamil Nadu |
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Date of Birth/Age : |
10.09.1950 |
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Date of Appointment : |
01.04.2004 |
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Date of Ceasing: |
28.12.2005 |
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Name : |
Mr. R N Radhakrishnan |
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Designation : |
Directors |
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Address : |
12, Besant Avene Adyar, Chennai – 600 020, Tamil nadu |
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Date of Birth/Age : |
03.08.1943 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. S Sankaran |
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Designation : |
Director |
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Address : |
2/1, IV street, Balaji Nagar, Chennai – 600 014, Tamil Nadu |
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Date of Birth/Age : |
07.05.1954 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. M Manos John |
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Designation : |
Director |
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Address : |
381 E Las Colinas Blvd, # 2002 Irving Texas – 75039, USA |
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Date of Birth/Age : |
27.03.1947 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. S Gopinath |
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Designation : |
Director |
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Address : |
32 Orange Grove road, M 311 LE Grove Apartments, Singapore – 258 354 |
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Date of Birth/Age : |
26.05.1946 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Beall Andrew |
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Designation : |
Director |
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Address : |
5215 N Dconnor BLVD, 2300 Irving, Texas – 75039, USA |
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Date of Birth/Age : |
21.07.1956 |
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Date of Appointment : |
01.4.2004 |
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Name : |
Mr. B Natrajan |
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Designation : |
Director |
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Address : |
A -5, Sucharia, new no. 124 Old No. 71, Chamiers Road, Chennai – 600
018, Tamil Nadu |
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Date of Birth/Age : |
03.10.1946 |
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Date of Appointment : |
28.12.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Sanmar Engineering Corporation Limited |
|
26395 |
|
Mrs. Madhu Sarin |
|
2400 |
|
Flowserve International Inc |
|
19200 |
|
Mr. N Sankar |
|
1 |
|
Mr. Vijay Sankar |
|
1 |
|
Mr. K S Narayanan |
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1 |
|
Mr N Kumar |
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1 |
|
Sanmar Reality Private Limited |
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1 |
Equity Shares Breakup (Percentage of Total Equity):
|
Sr No. |
Category |
Percentage |
|
1 |
Foreign Holdings (Foreign Institutional Investor(s),
Foreign Companie(S), Foreign Financial Institution(s), Non Resident Indian(s)
Or Overseas Corporate Bodies Or Others |
40.00 |
|
2 |
Bodies corporate |
55.00 |
|
3 |
Other top fifty (50) shareholders |
5.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing Of Shoe Uppers And Full Shoes |
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Products : |
· Shoe Uppers · Shoes |
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Exports : |
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Products : |
Shoe Uppers and Full Shoes |
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Countries : |
UK, USA, Japan and Germany. |
PRODUCTION STATUSas on 31.03.2006:-
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Mechanical seals |
|
Nos |
15000 |
14438 |
GENERAL
INFORMATION
|
No. of Employees : |
230 |
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|
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Bankers : |
· IndusInd Bank Limited, No. 3, Village Road, Nungambakkam, Chennai - 600 034, Tamil Nadu, India Tel. No. 91-44-2823 4788 Fax No. 91-44-2823 5489 · State Bank of India Address: Overseas Branch, 39 Rajaji Salai, madras – 600 001 |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
· Brahmayya & Company Chartered Accountants, Address: 156, Thambu Chetty Street, Chennai - 600 001, Tamil Nadu, India · S R Batliboi and associates Chartered Accountants Address: TPL House, second Floor, No.3 , Cenotaph Road, Chennai – 600 018, Tamil Nadu |
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Group Companies: |
· Asco (India) Limited · BS and B Safety Systems (India) Limited · Cabot Sanmar Limited · Chemplast Sanmar Limited · Fisher Sanmar Limited · Flowserve Sanmar Limited · Sanmar Engineering Services Limited · Sanmar Foundries Limited · Sanmar Shipping Limited · Sanmar Specially chemicals Limited · Sensortronics Sanmar Limited · Tyco Sanmar Limited · Xomox Sanmar Limited |
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Associates/Subsidiaries : |
Ø All Group Companies of Sanmar Chemplast |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
900000 |
Equity shares |
Rs. 10/- each |
Rs. 9.000 millions |
|
100000 |
Preference shares |
Rs. 10/- each |
Rs. 1.000 million |
|
|
|
Total |
Rs. 10.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48000 |
Equity shares |
Rs. 100/-
each |
Rs. 4.800
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4.800 |
4.800 |
4.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
351.331 |
326.214 |
351.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
356.131 |
331.014 |
356.200 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
35.915 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
35.915 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
3.112 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
392.046 |
334.126 |
356.200 |
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|
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
98.097 |
95.010 |
108.100 |
|
|
Capital work-in-progress |
2.911 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
4.415 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
101.813
|
69.820 |
59.000 |
|
|
Sundry Debtors |
296.709
|
264.746 |
227.800 |
|
|
Cash & Bank Balances |
14.490
|
127.197 |
68.400 |
|
|
Other Current Assets |
3.277
|
0.129 |
0.000 |
|
|
Loans & Advances |
36.626
|
29.223 |
160.600 |
|
Total
Current Assets |
452.915
|
491.115 |
515.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
166.292
|
142.221 |
130.300 |
|
|
Provisions |
0.000
|
109.778 |
137.400 |
|
Total
Current Liabilities |
166.292
|
251.999 |
267.700 |
|
|
Net Current Assets |
286.623
|
239.116 |
248.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
392.046 |
334.126 |
356.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
716.230 |
721.834 |
712.800 |
|
|
Other Income |
0.000 |
0.000 |
18.800 |
|
|
Stocks Adjustments |
0.000 |
0.000 |
[15.600] |
|
|
Total Income |
716.230 |
721.834 |
716.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
279.668 |
332.849 |
220.800 |
|
|
Provision for Taxation |
[93.092] |
[111.711] |
78.700 |
|
|
Profit/(Loss) After Tax |
372.760 |
444.560 |
142.100 |
|
|
|
|
|
|
|
|
Export Value |
88.455 |
44.416 |
67.013 |
|
|
|
|
|
|
|
|
Import Value |
NA |
87.221 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw material |
274.894 |
218.472 |
199.800 |
|
|
Excise Duty |
0.000 |
0.000 |
89.200 |
|
|
Power and Fuel |
8.174 |
8.004 |
7.500 |
|
|
Other manufacturing expenses |
0.000 |
0.000 |
40.700 |
|
|
Employee cost |
0.000 |
0.000 |
84.700 |
|
|
Selling and Administration Expenses |
0.000 |
0.000 |
33.000 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
19.800 |
|
|
Interest and financial Charges |
0.000 |
0.000 |
3.700 |
|
|
Depreciation |
17.504 |
17.904 |
16.800 |
|
|
Consumption of stores and spares parts |
15.741 |
16.233 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[4.071] |
[8.189] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
110.867 |
79.967 |
0.000 |
|
|
Payment to Auditors |
0.570 |
0.555 |
0.000 |
|
|
Interest |
0.201 |
1.523 |
0.000 |
|
|
Insurance Expenses |
2.720 |
2.288 |
0.000 |
|
|
Other Expenditure |
121.921 |
109.006 |
0.000 |
|
Total Expenditure |
548.521 |
445.763 |
495.200 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
52.04
|
61.58 |
19.84 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
39.04
|
46.11 |
31.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
50.48
|
56.78 |
35.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.78
|
1.00 |
0.61 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.56
|
0.76 |
0.75 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.72
|
1.94 |
1.92 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the
company |
SFS FOOTWEAR INTERNATIONAL LIMITED |
|
Presented
By |
Mr. T R
Krishnaswamy , Director |
|
1) Date and
description of instrument creating the change |
· General agreement for the grant of small industrial advance and hypothecation of movable , book debts and other assets dated 21.10.1988 · Agreement for the grant of small Industrial advances dated 21.101988 · General letter of hypothecation dated 21.101988 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 2.600
millions (Export Packing Credit of Rs. 1.600 millions and foreign Documentary
bill limit of rs. 1.000 millions) |
|
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 |
Finished leather chemicals
liming , Zips, Snaps, Velcro cut components and shoe uppers All present and
future book debts. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest at 9.5% p.a Margin at 25% (for Export Packing Credit) |
|
5) Name and
Address and description of the person entitled to the charge. |
State
Bank of India Address: Overseas Branch, 39 Rajaji Salai,
madras – 600 001 |
FIXED ASSETS:
· Land building
· Plant and machinery
· Furniture and fixtures
· Office equipment
· Vehicles
WEBSITE DETAILS:
A joint venture with Flowserve
Corporation, USA, Flowserve Sanmar is the market leader in engineered
mechanical sealing devices, offering a wide choice for the industry—from pusher
seals, dry running seals and split seals to metal bellows seals and
non-contacting seals.
The association which goes back more than 25 years, began with a joint
venture between Durametallic Corporation, and the Sanmar group.
Mergers and acquisitions have brought major seal players together under
the Flowserve umbrella, with a product range that today includes BW®,
Durametallic®, Pacific Wietz™ and Pac-Seal®.
The company is a major force in the petroleum, petrochemical, power,
chemical, food and pharmaceutical markets.
Engineered mechanical shaft seals and sealing systems for centrifugal
pumps, mixers, compressors, blowers and steam turbines
Location : Karapakkam, Chennai
Factory area : 29,500
sq.ft.
Joint venture
partner :Flowserve Corporation,
USA.
1.Seals for centrifugal pumps
· Pusher seals (balanced and unbalanced)
· Metal bellows seals
· Elastomer bellows seals
· Teflon bellows seals
· Cartridge seals
· Split seals
· API 682 seals
· Liftoff and dry running seals
· Stand-by seals for emission control
· High pressure seals
· Slurry seals
2.Seals for mixers
· Pusher seals (balanced and unbalanced)
· Dry running seals
· Split seals
· Non-contacting gas seals
3.Seals for fans and blowers
4.Steam turbine seals
5.Non-contacting gas seals and control panels for compressors
6.Flushing systems and accessories
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 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.39.29 |
|
UK Pound |
1 |
Rs.80.72 |
|
Euro |
1 |
Rs.57.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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/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 |
|