MIRA
INFORM REPORT
|
Report Date : |
21.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ESS AAR UNIVERAL
PRIVATE LIMITED |
|
|
|
|
Registered Office : |
G – 90, Basement,
Preet Vihar, Delhi – 110092 |
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Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.07.1984 |
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Com. Reg. No.: |
55-66225 |
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CIN No.: [Company
Identification No.] |
U00000DL1984PTC066225 |
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|
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
KNPE01036A |
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|
Legal Form : |
Private Limited
Liability Company. |
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|
Line of Business : |
Manufacture and
Exporter of Electrical Control Panels, Bus Duct and Steel fabricated
components. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 285024 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair. General
financial position is satisfactory. Payments are usually correct and as per
commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
G – 90, Basement,
Preet Vihar, Delhi – 110092 |
|
Tel. No.: |
91-11-22429553 |
|
Fax No.: |
91-11-22454528 |
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E-Mail : |
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|
Website : |
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Location : |
Commercial |
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|
|
|
Administer
Office : |
201, Pankaj
Chamber, Commercial Complex, Preet Vihar, Delhi – 110092 |
|
|
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Factory 1 : |
C-10, Panki
Industrial area-III, kanpur-208022 |
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Tel. No.: |
91-512-2692515/2692516 |
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Fax No.: |
91-512-2692517 |
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E-Mail : |
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Website : |
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Area : |
42300 Sq. ft
(Covered Area – 30,000 Sq. ft), Manufacturing Area – 25000 Sq. ft, Office
Block – Double Storey – 2000 Sq. ft |
|
Location : |
Owned
(Industrial) |
|
|
|
|
Factory 2 : |
A –40/1, Site IV,
Sahibabad Industrial Area, Ghaziabad – 201010 |
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Tel. No.: |
91-120-2896012/2896074 |
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Fax No.: |
91-120-2895951 |
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E-Mail : |
|
|
Location : |
Industrial |
DIRECTORS
|
Name : |
Mr. Sudhir
Rustagi |
|
Designation : |
Director |
|
Address : |
G-90, Preeti
Vihar, Delhi-110092, India |
|
Date of
Appointment : |
28.05.1997 |
|
|
|
|
Name : |
Mr. Neeraj
Rustagi |
|
Designation : |
Director |
|
Address : |
G-90, Preeti
Vihar, Delhi-110092, India |
|
Date of
Appointment : |
28.05.1997 |
KEY EXECUTIVE
|
Name : |
Mr. Umesh Chand
Sharma and Company |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. 5, 41 /
41, Punjab Bagh (West), New Delhi - 110026 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mrs. Bimla Devi
Rustagi |
|
100000 |
|
Mr. Devi Dayal
Rustagi |
|
4200 |
|
Mrs. Kalpna
Rustagi |
|
673800 |
|
Mr. Sudhir
Rustagi |
|
2223500 |
|
Mr. Tanmay
Rustagi |
|
848700 |
|
Mr. Gandharv
Rustagi |
|
848700 |
|
Mrs. Usha Rustagi |
|
2100 |
|
Mr. Faquir Cahnd
Rustagi |
|
300000 |
|
Total |
|
5001000 |
|
Category |
|
Percentage of
Holding |
|
Directors or
relatives of directors |
|
99.00 |
|
Other top fifty
Shareholders |
|
1.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and
Exporter of Electrical Control Panels, Bus Duct and Steel fabricated
components. |
|
|
|
|
Products : |
v ACB and OCB
Panels v Annunciator
Panels v Automatic
Power Factor Improvement Panels v Busbar
Trunking Panels v Capacitor
Panels v Change Over
Panels v Control
Desks v Distribution
Boards for AC and DC v Feeder
Pillars v Fuse
Distribution Boards v Local
Control Station Panels v Low Tension
and High Tension Main Panels v Motor
Control Centres v PLC Panels v Power
Control Centres v Power
Distribution Boards v Push Button
Stations v Relay
Panels v Relay and Meter ing Panels |
|
|
|
|
Exports : |
|
|
Countries : |
Kazakhstan,
Kenya, Nepal |
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|
|
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Terms : |
|
|
Selling : |
Cash or Credit
(30 days) |
|
|
|
|
Purchasing : |
Cash or Credit
(30 days) |
GENERAL
INFORMATION
|
Customers : |
˛
Delhi Vidyut
Board ˛ Reebok ˛ Mephisto ˛ Ecco ˛ Clarks Stonefly ˛ Hushpuppies ˛
Bata |
|
|
|
|
No. of Employees : |
69 |
|
|
|
|
Bankers : |
˛
Allahabad
Bank ˛
Punjab
National Bank ˛
HDFC Bank
Limited ˛
ICICI Bank
Limited ˛
The Bank of
Rajasthan Limited, 75/232, Halsey
Road, Kanpur State Bank of India, Kalpi Road, Kanpur |
|
|
|
|
|
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Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
P. L. Tondon and
Company Chartered
Accountants |
|
Address : |
West Cott
Building, Mahatma Gandhi Road, Post Boa No. 113, Kanpur – 208001, Uttar
Pradesh |
|
Tel. No.: |
91-512-2366774/2317857 |
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Fax No.: |
91-512-2351560 |
|
|
|
|
Associates/Subsidiaries : |
Rustagi
Engineering Udyog Private Limited, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5001000 |
Equity Shares |
Rs.10/- each |
Rs.50.010
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 |
50.010 |
29.010 |
4.835 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
21.246 |
15.176 |
28.057 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
71.256 |
44.186 |
32.892 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
34.422 |
6.471 |
5.331 |
|
|
2] Unsecured Loans |
6.140 |
28.917 |
26.778 |
|
|
TOTAL BORROWING |
40.562 |
35.388 |
32.109 |
|
|
DEFERRED TAX LIABILITIES |
8.706 |
8.948 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
120.525 |
88.522 |
65.001 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
72.721 |
49.197 |
48.463 |
|
|
Capital work-in-progress |
0.081 |
1.583 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13.991
|
25.804 |
16.380 |
|
|
Sundry Debtors |
38.901
|
44.589 |
24.078 |
|
|
Cash & Bank Balances |
11.522
|
4.094 |
6.584 |
|
|
Other Current Assets |
1.039
|
0.575 |
0.372 |
|
|
Loans & Advances |
17.594
|
12.159 |
5.843 |
|
Total
Current Assets |
83.047
|
87.221 |
53.257 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
21.974
|
41.026 |
33.918 |
|
|
Provisions |
13.350
|
8.453 |
2.801 |
|
Total
Current Liabilities |
35.324
|
49.479 |
36.719 |
|
|
Net Current Assets |
47.724
|
37.743 |
16.538 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
120.525 |
88.522 |
65.001 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales Turnover |
239.126 |
223.902 |
|
|
Other Income |
5.299 |
5.146 |
|
|
Total Income |
244.425 |
228.902 |
150.282 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
11.334 |
15.692 |
5.379 |
|
Provision for Taxation |
4.106 |
3.806 |
0.000 |
|
Profit/(Loss) After Tax |
7.228 |
11.886 |
5.379 |
|
|
|
|
|
|
FOB Value of Exports |
7.663 |
9.635 |
3.531 |
|
|
|
|
|
|
CIF Value of Imports |
18.627 |
26.598 |
NA |
|
|
|
|
|
|
Expenditures : |
|
|
|
|
Total Expenditure |
234.655 |
229.774 |
144.903 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.95
|
5.19 |
3.57 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.73
|
7.01 |
3.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.27
|
11.50 |
5.28 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.35 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.49
|
1.11 |
2.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.35
|
1.76 |
1.45 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Name of the company |
ESS AAR UNIVERAL
PRIVATE LIMITED |
|
Presented
By |
Mr. Sudhir Rustagi, Director |
|
1) Date and description of instrument creating the change |
Dated: 08.11.2005 General Letter of
Hypothecation |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.16.000
millions: Rs.9.000 millions
–Cash Credit (Hypothecation) Rs.7.000 millions
– Bank Guarantee |
|
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 |
1st
Charge on all plant and machinery, movable assets, inventory and book debts
of both engineering and P.Y. Division of the company |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
– 2.00 p.a. above the price leading rate with a maximum rate of 13%p.a. with
a=monthly rests. |
|
5) Name and Address and description of the person entitled to the charge. |
Allahabad Bank International
Branch, 3rd Floor, 17, Parliament Street, New Delhi – 110001 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
|
Corporate
identity number (CIN) Foreign company registration number |
U00000DL1984PTC066225 |
|
Name of the
Company |
ESS AAR UNIVERAL
PRIVATE LIMITED |
|
Address |
G – 90, Basement,
Preet Vihar, Delhi – 110092 |
|
This form is for |
Creation of
Charges |
|
Type of Charge |
Book Debts and
Movable property (not being pledge) |
|
Particulars of
the charge holder |
Allahabad Bank International
Branch, 3rd Floor, 17, Parliament Street, New Delhi – 110001 E-Mail: albibnd@nda.vsnl.net.in |
|
Amount secured by
the charge |
Rs.32.500
millions |
|
Brief of the principal
terms and conditions |
Rate of Interest: 11.50% PLR+0.50%
p.a. with monthly rests (Minimum 12% p.a.) Terms of
Repayment On Demand Margin: 25% - for cash
credit (hypothecation) 20% - for bank
guarantee facility Extent and
operation of the charge To cover movable
assets and immovable assets of engineering and PU division of the company |
|
Short particular
of property charge (including location of the property) |
Land and Building
at C – 10 Panki Industrial Area, Site – 3, Kanpur – 208022, Uttar Pradesh |
|
Date of
Instrument creating or modifying the charge |
07.12.2006 |
As per website details:
Company Profile:
Subject a prestigious name in the P.U. Shoe Sole industry has established
itself as a leading player in both the domestic and the international market
through its manufacturing excellence and export proficiency.
Their unflinching and sincere efforts over years have placed them on a pedestal
higher than their competitors. It is their product that itself speaks of the
brand they have been able to build for their company. Their focussed attention
towards the quality of the products and in satisfying their clients forms their
prime objective. Keeping abreast of all these factors, they have been able to
create a mark by understanding the market requirements and innovation novelty
in their P.U shoe sole design.
Their Achievement
They are the first to introduce in India the following range of sole varieties
that has created a hallmark in the realm of style and fashion:
1. Anti-Slip Dual Density Island Soles
2.Wrinkle-free Leather Micro covered foot bed.
Manufacturing and Production Capacity
Imbibing the best quality system in their products, they also offer customized
range of products on the basis of criteria like weight, density, comfort,
texture, feel (soft/hard) and look (matt/ shiny).
Their present production capacity is 10,500 pairs per day and they are
continuously striving to improvise advance techniques to increase their
manufacturing capacity in the future.
Infrastructure
P.U shoe sole production requires a highly precision technology and choice of
machine is critical to a project's success, which is guided under thoroughly
trained industry professionals.
They employ the latest pouring moulding technology to lend their products with
enhanced performance and high grade finishing.
Quality
Quality forms the spine-support of their enterprise. They tolerate no
compromise in the quality of the products they manufacture and the service they
deliver. Their quality parameters stand on the following grounds:
- The raw materials are procured
from the best suppliers in the world to obtain the best quality of the
finished product.
- The process of
manufacturing employs various automated control and checks to have
uniform and consistent parameters like heating temperature, time period
for heating of chemicals and their cooling in moulds etc.
- Most of the designs of the sole are registered
under various registration numbers with Controller General of Patent,
Designs and Trademarks in India.
- They have an in-house testing facility system
for the finished product. They evaluate them on certain parameters set on
the lines of international quality standards with the help of machines
like Bata Belt, Benewart, Flex machine, etc.
- They also offer customized version of the products
to satisfy their desired requirement in terms of shape, contour, design
etc. as per client requirement.
- They attach great
significance to on-time delivery
of their products and curtail all means for unnecessary delay.
Their quality of service also reflects in the after-sales service
they offer. For them, a deal done is not the end of it; they maintain a record
of their customers and ensure satisfaction on their part from time to time. 
To choose Indian market for P.U. Shoe Sole in comparison to its other
competitors like China, Germany, Italy and Denmark etc can be accredited to
India's young entrepreneurial market that is competent enough to satisfy the
surge in the demand and thus help the growth of the economy.
Some of the factors responsible for India to flourish as a hub for P.U Shoe
Soles in the global scenario are.
- This labor-intensive
industry is facilitated by cheap influx of cost-effective labor force.
- India possess a pool
of highly-skilled and diligent
human resource capable of efficient performance. The young human
resource of India, with their fertile minds, is capable of innovations and
that set new parameters for design and style.
Technology has now become easily accessible, which during the past years was a
major constraint.
"Striving to be the best" makes them define a line for success much
higher than those already think themselves to be successful and thereby make
persistent efforts to enhance their products and services. Their strengths that
answer the interrogation are:
- They design their
products to be in tune with the ever-changing needs of the fashion
industry.
- Their products meet
the highest international benchmark of quality.
- They offer superior
quality at competitive prices.
- Delivery schedules are
attended with strict adherence.
- Customized product
manufacturing is facilitated by them.
After-sale service forms one of the prime objectives of their business
deals.
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.39.34 |
|
UK Pound |
1 |
Rs.80.72 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|