MIRA
INFORM REPORT
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Report Date : |
08.10.2007 |
IDENTIFICATION DETAILS
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Name : |
AVON SEALS PRIVATE LIMITED |
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Registered Office : |
G – 2, Ambattur Industrial Estate, Chennai – 600 058, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.04.1997 |
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Com. Reg. No.: |
18 - 037975 |
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CIN No.: [Company
Identification No.] |
U25199TN1997PTC037975 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA03159C |
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PAN No.: [Permanent
Account No.] |
AACCA9892M |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Mechanical Seals for agricultural, Domestic and
Automotive Water Pumps. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 120000 |
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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 and reputed company having satisfactory track
records. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
G – 2, Ambattur Industrial Estate, Chennai – 600 058, |
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Tel. No.: |
91-44-26251662, 26256225 |
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Fax No.: |
91-44-26547873/ 52015698 |
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E-Mail : |
avonseal@vsnl.com balaji@avonseals.com |
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Website : |
http://www.avonseals.com
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DIRECTORS
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Name : |
Mr. Gireeshan Amban Narayanan |
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Designation : |
Managing Director |
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Address : |
Flat C and E, Silver Palms, Ground Floor, Officers Colony Extension,
Padi, Chennai- 600 050, |
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Date of Birth/Age : |
01.06.1957 |
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Date of Appointment : |
02.04.2001 |
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Name : |
Mr. Sai Sathya Kumar Kunnath |
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Designation : |
Director |
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Address : |
Saroj, No. 4, |
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Date of Birth/Age : |
09.02.1964 |
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Date of Appointment : |
02.04.2001 |
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Name : |
Mr. Radhakrishnan Vadakketh |
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Designation : |
Director |
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Address : |
No. 3, |
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Date of Birth/Age : |
30.11.1955 |
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Date of Appointment : |
02.04.2001 |
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Name : |
Mrs. Chambra Dyaroth Meena Gireeshan |
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Designation : |
Director |
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Address : |
Flat C and E, Silver Palms, Ground Floor, Officers Colony Extension,
Padi, Chennai- 600 050, |
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Date of Birth/Age : |
25.09.1962 |
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Date of Appointment : |
02.04.2001 |
KEY EXECUTIVES
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Name : |
SGS Company Secretaries |
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Designation : |
Company Secretary |
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Address : |
30 Doron Complex No. 37 (Old No. 17), |
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Tel. No.: |
91-44-24332672, 24723725 |
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Mobile No.: |
91-9884212845 |
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E-Mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Gireeshan Amban Narayanan |
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58850 |
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Mr. Sai Sathya Kumar Kunnath |
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21400 |
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Mr. Radhakrishnan Vadakketh |
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21400 |
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Mrs. Chambra Dyaroth Meena Gireeshan |
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5350 |
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TOTAL |
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107000 |
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Category |
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Percentage
of Holding |
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Directors or relatives of directors |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Mechanical Seals for agricultural, Domestic and
Automotive Water Pumps. |
GENERAL INFORMATION
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Suppliers: |
v
v
Schunk
Metal and Carbon Private Limited v
Voltas
Limited v
Mahee
Engineering Private Limited v
Fisher
Pumps Private Limited v
Edizi
Gauge and Tools v
Chola
Pumps Private Limited v
Jaghjas
Engineering Equipments |
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Customers: |
v
Franken
v
Officina
Fretteli Bertolotti, S P A, v
Reethika
Engineering Inc v
Minerva
Engineering Tools v
H D
Silva and Company v
Sharp
Pumps Private Limited v
Munishram
Industries v
Conwest
Limited, v
Mira
Industries v
Millenium
Alliances Limited |
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Bankers : |
v
Canara
Bank SME Branch, No.3, M E-mail: chn2412@canbank.co.in v
HDFC Bank Limited |
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Facilities : |
- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M R Ramachandran and Company Chartered Accountants |
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Address : |
New No. 17, Old No. 9/1, |
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Associates: |
v
Aditya Engineering v
Aditya Pantographers |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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110000 |
Equity Shares |
Rs. 100.00 each |
Rs. 11.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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107000 |
Equity Shares |
Rs. 100.00 each |
Rs. 10.700 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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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10.700 |
10.700 |
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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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19.397 |
12.699 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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30.097 |
23.399 |
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LOAN FUNDS |
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1] Secured Loans |
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8.545 |
11.298 |
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2] Unsecured Loans |
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0.000 |
1.047 |
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TOTAL BORROWING |
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8.545 |
12.345 |
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DEFERRED TAX LIABILITIES |
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2.173 |
1.905 |
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TOTAL |
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40.815 |
37.649 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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25.122 |
22.440 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.017 |
0.017 |
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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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2.685 |
3.626 |
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Sundry Debtors |
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16.974 |
18.583 |
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Cash & Bank Balances |
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1.910 |
0.609 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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4.570 |
3.145 |
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Total
Current Assets |
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26.139 |
25.963 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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8.123 |
9.628 |
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Provisions |
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2.341 |
1.145 |
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Total
Current Liabilities |
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10.464 |
10.773 |
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Net Current Assets |
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15.675 |
15.190 |
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MISCELLANEOUS EXPENSES |
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0.001 |
0.002 |
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TOTAL |
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40.815 |
37.649 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover
& Other Income |
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60.960 |
49.607 |
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Profit/(Loss) Before Tax |
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12.019 |
8.444 |
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Provision for Taxation |
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3.151 |
2.376 |
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Profit/(Loss) After Tax |
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8.868 |
6.068 |
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Export Value |
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1.062 |
0.184 |
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Import Value |
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1.688 |
2.109 |
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Expenditures : |
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Total Expenses |
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47.013 |
39.254 |
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Depreciation |
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1.928 |
1.909 |
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Total
Expenditure |
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48.941 |
41.163 |
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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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14.55 |
12.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
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19.72 |
17.02 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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23.45 |
17.45 |
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Return on Investment (ROI) (PBT/Networth) |
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0.40 |
0.36 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.63 |
0.99 |
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Current Ratio (Current Asset/Current Liability) |
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2.50 |
2.41 |
LOCAL AGENCY FURTHER INFORMATION
Form 8
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Name of the company |
AVON SEALS PRIVATE LIMITED |
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Presented By |
The Manager Canara Bank SPL, SSI Branch,
Padi, Chennai – 600 050 |
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1) Date and description of instrument creating the change |
All Agreements
dated 27.04.2001 i)
Cash
Credit Agreement ii)
Agreement
for Discounting of Supply Bills iii)
Agreement
to be obtained for CDB/SDB/BE Advances iv)
Agreement
for opening Inland irrecoverable Letters v)
Hypothecation Agreement of Goods and Book Debts vi)
Deed
of Hypothecation Re: Machinery for Term Loan I, II, III and IV vii)
Agreement
Re: Collateral Security: Machinery : Vehicles viii)
Letter
Evidencing Deposit of title deeds |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 7.914
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 |
Hypothecation by
way of first charge on present and future stocks of raw materials, goods in
process of manufacture and all finished and manufactured goods and articles
such as Soring Rapelite S S Shell Ceramic seal, work-in-process, finished
goods, etc, and any other goods and commodities belonging to the borrower and
over the amounts receivable by the borrower in respect of supplies made to
the purchase from time to time against which the borrower has drawn the
supply Bills or any other similar type of instrument and obtained advances
from the Bank thereon and on all book debts, outstandings, money receivables,
claims and bills arising out of the sale, disposal of the goods received
under the said credit facilities and on all plant and machinery, tools and
accessories, already purchased and described in Schedule A such as Hydraulic
down stroke rubber moulding press-1 No. 40 KVA Diesel Generator set,
Preheater – Model 1.0 kw, Brand new Hydraulic Pillar type down stroke rubber
Moulding Press -1 No. Hydraulic Down stroke Rubber Moulding Press, Rubber
Mixing Mill, Rubber Extruder, Paraflat Polishing machine, Brand New Ace Slant
Bed CNC Lathe LT-2 costing Rs. 2.200 Millions - No. stored at borrowers
premised situated at No. 10, 1st main road, TVS Nagar, Padi,
Chennai – 600 050 and Extension of equitable mortgage by way of deposit of
title deeds on all that piece and parcel of land in Survey No. 178 part and
181 part Shed No. 292 to the extent of 7200 sq. fts. Situated in
Pattaravakkam, Ambattur Industrial Estate, Ambattur Taluka, Tiruvellore
District bounded North by remaining balance portion of Shed No. 292 (NP)
belonging to Electronics and Electricals South by Shed No. 291, East by Shed
No. 295 and West by 40” wide Road and remaining balance portion of shed No.
292 (NP) belonging to Electronics and Electricals to cover the above
sanctioned limit of Rs. 9.894 Millions. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest:
2.5% over and above PLR rate with a minimum of 14.25% compounded quarterly. Repayment: Term Loan I: The
sum of Rs. 0.480 million is repayable in 48 monthly installments of Rs. 0.010
million each Term Loan II: The
sum of Rs. 0.243 million is repayable in 37 monthly installments. The first
36 monthly installments is Rs. 0.006 million (Rs. 6400.00) each and last
monthly installment is Rs. 0.006 million (Rs. 6200.00) Term Loan III:
The sum of Rs. 0.741 is repayable in 60 monthly installments of Rs. 0.012
each Term Loan IV: The
sum of Rs. 1.650 millions is repayable in 60 monthly installments of Rs.
0.028 million (Rs. 27500.00) each |
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5) Name and Address and description of the person entitled to the charge. |
The Manager Canara Bank SPL, SSI Branch,
Padi, Chennai – 600 050 |
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6) Date and brief description of instrument modifying the charge |
20.08.2001 Term Loan
Agreement |
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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. |
Now the total
limits had been enhanced from Rs. 7.914 millions to Rs. 9.894 millions be sanction
of new Term Loan to the extent of Rs. 1.980 millions as given under
The securities so
far offered is continued to be extended including all that piece and parcel
of land building known as Plot No. (a) G-2 in the SIDCO Industrial Complex at
Ambattur Industrial Estate within the Village limit of Mogappair, Taluka
Saidapet, Sub-Registration District of Ambattur, Chengulput Revenue District,
Registration District of North Chennai and measurement of 11061 sq. fts.
bearing Survey No. 35 and 38 part of The Term Loan V
of Rs. 1.980 is repayable in 60
monthly installments of Rs. 0.033 each commencing from 20.09.2001 and ending
on 20.07.2006 Rate of Interest
at 14% per annum |
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Corporate
identity number (CIN) Foreign company registration number |
U25199TN1997PTC037975 |
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Name of the
Company |
AVON SEALS PRIVATE LIMITED |
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Address |
G – 2, Ambattur Industrial Estate, Chennai – 600 058, Tamilnadu |
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This form is for |
Modification of
charge |
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Type of Charge |
A charge on: v
Movable
property (not being pledge) |
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Particulars of
the charge holder |
Canara Bank SME Branch, No.3,
M E-mail: chn2412@canbank.co.in |
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Nature or
description of the instrument(s) creating or modifying the charge |
v
Deed of
Hypothecation Re: Machinery v
Supplemental
Collateral Security Agreement |
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Date of the
instrument creating or modifying the charge |
07.02.2007 |
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Amount secured by
the charge |
Rs. 9.400
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest: 10.75% per annum (b) The Term Loan
of Rs. 2.500 Millions is repayable in 48 monthly installments of which the
first 47 installments at Rs. 0.052 million each and last installment of Rs.
0.056 million commencing from April 2007 (c) Margin: 25%
on Term Loan (d) Extent and
operation of the charge:
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Short particulars
of the property charged (including location of the property) |
Hypothecation in
favour of Bank all plant and machinery, tools and accessories already purchased
and described in schedule viz. 1. Hydraulic
Moulding Machine 2. ACE CNC lathe
Model Jabber XL as also the machinery to be purchased kept at borrower’s
premises situated at G-2, Industrial Estate, Ambattur, Chennai – 600 058 to
secure the above revised limit of Rs. 9.400 Millions |
Website details attached:
Subject is one of the largest Indian manufacturers of Mechanical Seals
for Agricultural, Domestic and Automotive Water Pumps. The company pioneered the
introduction of seals, which are immune to dry running of pumps, in
Moreover, the company is supplying mechanical seals to reputed seal
manufacturers in Europe. The continuous interaction with them, who are leaders
in this field, helps the company to keep abreast with the latest developments
in the material /design aspects of Mechanical Seals.
In the automobile water pump sector, the company is an approved vendor
of all the three leading vehicle manufacturers in the country, who make
automobile water pumps, in-house. It is also a major seal supplier to two
leading automobile water pump manufacturers in the country.
Presently, the company is the process of major production capacity
expansion to cater to the ever-increasing demand for mechanical seals from
domestic and overseas markets.
Product Profile
Avon Seals manufactures almost all seal components in-house except for
ceramic seal faces and helical springs that are sourced from outside. Ceramic
seal faces come from Indian subsidiaries / collaborators of M/s. Feldmuhle
Aktienge Sellfehate,
The raw materials for the most critical components of the seal, i.e.,
the carbon seal face and bellows are directly imported by the company. The
metallic components are pressed out of prime quality stainless sheet of AISI
304 grade. The springs also are of AISI 304 grade, ensuring zero corrosion
throughout the service life. The bellows and L rings moulded out of
specifically compounded high ACN nitrile rubber ensures little degradation even
when subjected to high temperatures of automobile water pumps.
The time temperature graphs on dry running of seals are regularly
monitored to ensure that the seals immunity towards dry-running is always
safeguarded. These in-process controls virtually rule out any defective
component reaching seal assembly stage. The company also boasts of several
destructive and non-destructive seal-testing rigs.
Corporate Philosophy
Like in any walk of life, in the pump industry too, contributing to
success is the most demanding of tasks. For them it is also the most rewarding.
For inspiration, they have their Clients trust, Clients, who have
established themselves as pioneers in the Pump industry by virtue of their
obsession with quality. Their trust has led them to develop the full range of
Mechanical Seals for automobile, domestic and agricultural pumps. Seals that
bear the international stamp of quality.
Today, Subject is relied upon for quality by more than 50 pump
manufacturers in
Their client's trust inspires them to reach out and fulfill the most
demanding of needs. And their reward is their success.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 39.49 |
|
|
1 |
Rs. 80.41 |
|
Euro |
1 |
Rs. 55.76 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
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--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 |
|
45 |
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 |
|