MIRA
INFORM REPORT
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Report Date : |
06.10.2007 |
IDENTIFICATION DETAILS
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Name : |
DALI AND SAMIR ENGINEERING PRIVATE LIMITED |
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Registered Office : |
36, D – II, Block, MIDC, Chinchwad, Pune – 411019, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.09.1979 |
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Com. Reg. No.: |
11-21672 |
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CIN No.: [Company
Identification No.] |
U29299MH1979PTC021672 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNED04123A |
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PAN No.: [Permanent
Account No.] |
AACCD0855H |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Silencers, Fuel Tanks and other Parts. |
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 230000 |
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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.
Directors are reported as experience 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 : |
36, D – II, Block, MIDC, Chinchwad, Pune – 411019, Maharashtra, |
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Tel. No.: |
91-20-27477551 (10 lines) / 27473448 |
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Mobile No.: |
91-9810065502 |
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Fax No.: |
91-20-27477551 (10 lines) |
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E-Mail : |
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Website : |
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Factory 1 : |
Plot No. 36, D-II Block, M.I.D.C. Chinchwad, Pune - 411 019, |
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Factory 2 : |
Plot No. 46, W.M.D.C., Kharabwadi, |
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Factory 3 : |
Tool Room: Plot No. 56/5, D- II Block, MIDC Chinchwad,
Pune |
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Factory 4 : |
Plot No. 43, Sector 11,
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DIRECTORS
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Name : |
Mr. Madhav C Salian |
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Designation : |
Chairman and Managing Director |
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Address : |
Mandira – 6, Nilgiri lane, Off |
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Date of Birth/Age : |
10.11.1934 |
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Date of Appointment : |
13.09.1979 |
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Name : |
Mr. Samir Salian |
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Designation : |
Whole Time Director |
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Address : |
Mandira – 6, Nilgiri lane, Off |
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Date of Birth/Age : |
01.01.1968 |
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Date of Appointment : |
01.06.1988 |
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Name : |
Mr. Sandesh Salian |
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Designation : |
Whole Time Director |
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Address : |
Mandira – 6, Nilgiri lane, Off |
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Date of Birth/Age : |
16.09.1973 |
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Date of Appointment : |
04.09.1992 |
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Name : |
Mrs. Sangeeta Shah |
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Designation : |
Director |
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Address : |
Flat No – 4, Nilgiri Apartments, Nilgiri lane, Off |
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Date of Appointment : |
01.05.1998 |
KEY EXECUTIVES
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Name : |
Mr. R V Pore |
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Designation : |
Company Secretary |
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Address : |
214, Mahadkar Chambers, |
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Tel No. : |
91-20-25460505 |
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Email : |
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Name : |
Mr. R. P.
Bhalerao |
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Designation : |
Vice President |
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Name : |
Mr. K. G.
Shetty |
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Designation : |
Commercial Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No of Shares |
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Madhav Salian |
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80,736 |
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Indira Salian |
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17,376 |
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Samir Salian |
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7,776 |
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Sandesh Salian |
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4,800 |
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Sangeta Shah |
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4,800 |
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Total |
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115,488 |
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Equity Share
Breakup |
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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 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Silencers, Fuel Tanks and other Parts. |
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Exports : |
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Countries : |
Worldwide and |
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Imports : |
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Countries : |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
150 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sharad Shah and Company Chartered Accountants |
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Address : |
1184/4, Gokul Nagar – B, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150,000 |
Equity Shares |
Rs. 100/- each |
Rs. 15.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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115,488 |
Equity Shares |
Rs. 100/- each |
Rs. 11.549 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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11.549 |
11.549 |
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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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47.385 |
36.159 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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58.934 |
47.708 |
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LOAN FUNDS |
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1] Secured Loans |
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34.946 |
22.439 |
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2] Unsecured Loans |
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8.360 |
10.875 |
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TOTAL BORROWING |
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43.306 |
33.314 |
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DEFERRED TAX LIABILITIES |
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0.374 |
0.206 |
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TOTAL |
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102.614 |
81.228 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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27.467 |
14.634 |
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Capital work-in-progress |
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0.000 |
3.149 |
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INVESTMENT |
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0.497 |
0.497 |
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DEFERREX TAX ASSETS |
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0.270 |
0.218 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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33.030 |
28.537 |
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Sundry Debtors |
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50.750 |
44.044 |
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Cash & Bank Balances |
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1.956 |
1.735 |
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Other Current Assets |
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0.023 |
0.009 |
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Loans & Advances |
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9.209 |
5.685 |
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Total
Current Assets |
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94.968 |
80.010 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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16.205 |
14.013 |
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Provisions |
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4.383 |
3.273 |
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Total
Current Liabilities |
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20.588 |
17.286 |
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Net Current Assets |
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74.380 |
62.724 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.006 |
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TOTAL |
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102.614 |
81.228 |
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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 |
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262.652 |
214.400 |
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Total Income |
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262.652 |
214.400 |
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Profit/(Loss) Before Tax |
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19.670 |
9.399 |
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Provision for Taxation |
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7.538 |
3.824 |
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Profit/(Loss) After Tax |
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12.132 |
5.575 |
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Imports : |
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Total Imports |
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8.525 |
10.731 |
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Expenditures : |
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Depreciation & Amortization |
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4.553 |
2.922 |
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Other Expenditure |
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238.429 |
202.079 |
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Total Expenditure |
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242.982 |
205.001 |
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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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4.62 |
2.60 |
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Net Profit Margin (PBT/Sales) |
(%) |
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7.49 |
4.38 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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16.07 |
9.93 |
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Return on Investment (ROI) (PBT/Networth) |
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0.33 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.08 |
1.06 |
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Current Ratio (Current Asset/Current Liability) |
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4.61 |
4.63 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
DALI AND SAMIR
ENGINEERING PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Agreement for charge
and hypothecation of book debts dated 22.03.1988 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.300
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 |
Book debts,
outstanding moneys, receivables, claims and bills which are due and owing or
which may at any time hereafter during the continuance of this security
become due and owing to the borrowers in the course of business. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
5.5 % OBR Min – 15.5 % The security is
to operate as a continuing security all sums due or owing to the bank at any time
at any of its branches or office Power of attorney
of favour of the bank |
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5) Name and Address and description of the person entitled to the charge. |
Syndicate Bank, Chinchwad, Pune - 411019 |
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6) Date and brief description of instrument modifying the charge |
24.03.2005 –
Supplemental Hypothecation Agreement 24.03.2005 –
Charge an Hypothecation of book debts agreement 24.03.2005 –
confirmation of creation of second / subsequent equitable mortgage all documents
creating a single charge. |
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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. |
Previous
Modifications : 15.04.1996 –
Amount increase to Rs. 5.000 Millions 16.04.1996 –
Collateral security offered by way of Equitable Mortgage 07.04.2003 –
Amount increase to Rs. 7.000 Millions Present
Modification : The amount now
stands increased to Rs. 12.000 Millions A Import LC sub –
Limit of Rs. 2.000 Millions is sanctioned. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U29299MH1979PTC021672 |
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Name of the
company |
DALI AND SAMIR ENGINEERING PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
36, D – II, Block, MIDC, Chinchwad, Pune – 411019, Maharashtra, |
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Type of charge |
Immovable Property |
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Particular of
charge holder |
Syndicate Bank, Chinchwad, Pune – 411019, |
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Nature of
description of the instrument creating or modifying the charge |
Mortgage by
Deposit of title deeds |
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Date of instrument
Creating the charge |
04.12.2006 |
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Amount secured by
the charge |
Rs. 41.300
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Rate of interest shall
be 1.75 % over Syndicate Bank’s PLR Terms of
repayment As may be
specified Margin As per specified
by the bank Extent operation
of the charge The immovable
properties of the company |
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Short particulars
of the property charged |
Charge on the
property situated on Plot No. 46, Gat No. 2895, Chakan Indusial Area at
Kharabwadi, Chakan, Tal. Khed, Dist. Pune |
AS PER WEBSITE
Profile
Subject is a reputed medium scale industry manufacturing a range
of sheet metal components and exhaust systems for the automotive sector. They
are original Equipment (OE) manufactures and suppliers of Fuel tanks, Hydraulic
Tanks, Vacuum Tanks & other assemblies for the entire range of Trucks,
MUV's, SUV's and Cars to Tata Motors (formerly Telco), (India's largest
automobile company and the world's fourth largest Commercial Vehicle
manufacturer), and exhaust systems (mufflers) to Bajaj Auto Limited, (India's
second largest manufacturer of two wheelers). They are also supplying Aluminium
and Galvanised Radiator Surge Tanks for M/
Year of commencing business: 1972
Financials :
Subject has a strong financial position. D&S is a profit making company since inception. D&S has a sanctioned sufficient Overdraft Limit for Working Capital, and has additional arrangements for Term Loans with its bankers.
Organization and Management :
Mr. M C Salian is their Chairman and Managing Director. He is the is the founder of D&S. He was the General Manager (Finance) with M/s Bajaj Auto Limited for more than 20 years.
Mr. Samir Salian is a Director. He is Graduate Mechanical
Engineer from
Mr. Sandesh Salian is a Director. He is in charge of Finance
& Commercial areas. He has recently returned after completed his MBA from
Strengths
- Strong Commitment to Value for Customers.
- Young team in place, with Modern Thinking.
- D&S has a strong financial position.
- Strong Manufacturing Infrastructure.
- They have a total integration right from designing, tool making to production.
- Extensive experience in Fabrications, welding including Coated Steel Fabrication (Terne Coat, Galvanised Sheets), Stainless Steel, and Aluminum
Customer
Relationship:
Tata Motors, Bajaj Auto
and Dali & Samir Engg. - A 3 decade old relationship
Subject is very proud of its association with Tata Motors and Bajaj Auto which began in the 70's and has developed into a very mature relationship. Over these years D & S has been at the forefront of various new product developments and today is the only supplier who has developed all the models of fuel tanks for Tata Motor's entire range of vehicles. D&S is a single source for most of its products supplied to Tata Motors due to proven track record. D&S is a also a Direct Supply to Line vendor to both Tata Motors & Bajaj Auto.
A deep understanding of the customer's requirements and close interaction with Tata Motor's Ancillary Development Department and Product Engineering as well as the encouragement received from one and all at Tata Motors has resulted into a number of Value Engineering suggestions implemented. D&S firmly believes in supplier partnership for mutual benefit . D&S has a close interaction with Bajaj Auto's Component Development and Product Engineering and has given several Value Engineering Proposals to Bajaj Auto, which has been appreciated by them.
Products
Dali & Samir
manufactures the following types of products:
1. Fuel Tanks for LCVs,
MCVs, HCVs & Cars with shell pressing in-house
2.
Radiator Surge Tanks & Radiator Frames
3.
Pressed parts and Fabricated assemblies
4.
Heavy Press components
5.
Tubular Assemblies
6.
Hydraulic Tanks for LCV, MCV, HCVs
Over the last 20 years, they have developed more than 20 types of silencers and around 15 types of tanks. Working closely with BAL and Tata Motors gave them access to their technology, R&D and other development, which helped in upgrading their manufacturing processes. They also have access in Pune to the Automobile Research Association of India "ARAI' and Auto Cluster which have state-of-the -art facilities for evaluating, testing, automobile components. They continue to do improvements and modifications for reducing cost and improve productivity. They are in the process of finalizing a Joint Venture with an American Company.
Tata Motors have always considered them as the first choice for developing new fuel tanks. They are the only company manufacturing the entire range of fuel tanks for M/s.Tata Motors. Their tanks conform to the Indian Standard for safety and CMVR Norms.
The silencer is also a very important product which influences pollution levels, fuel efficiency and noise level in two wheelers. They have specialised themselves in this field. They have developed a range of scooter and motor cycle silencers for Bajaj Auto Limited Similar to Tata Motors tanks, BAL silencers is also has a uniqueness which holds huge market potential for OE as well as replacement market. They are proud owners of C.Q. certification and 'A' Grade supplier status for quality, consistency and delivery performance. Vehicles produced with their exhaust system comply with existing emission norms.
Quality
The Pursuit of
Excellence:
Achievement of ISO TS 16949 : 2002 certification has been for them an apt recognition of their commitment to quality. For, they, at Dali & Samir have always striven to implement the concept of Continuous Quality Improvement (CQI).
With the usage of appropriate technology and production methods to add value to the system and continuous identification and elimination of wastage, they ensure that their pursuit of excellence continues on the path of TQM culture.
They are implementing system like, Kaizen and lean manufacture to enhance value to their products.
They are an 'A' Grade supplier to Bajaj Auto. Their goods are Self Certified for Bajaj Auto as well as Tata Motors. Their goods are Directly Supplied to their lines on a J.I.T. basis. They are Single Source Suppliers for most of their products to Bajaj Auto as well as Tata Motors.
Their sincere and continuous efforts in the field of quality
management are recognised by the Component Industry through "Quality
Award" for the year 2000-2001 in Small Industry category instituted by
Automotive Component Manufacturer Association of
Production Capacity
The current
production capacity of Dali & Samir at their plant in Chinchwad is to the
tune of 1000 exhaust systems/day and over 1500 fuel tanks/day on a two-shift
basis. This translates into a achievable volume of 6,00,000 silencers per annum
and 4,50,000 fuel tanks per annum. In
addition a new plant in Chakan is in operation which has a capacity of 800 Fuel
tanks per day.
Manufacturing
Capability
Fabrication shop :
Subject has a completely equipped Fabrication Shop with an entire range of resistance Welding machines including Spot welding machines and Seam Welding Machines. D&S also has a variety of M.I.G. / M.A.G. as well as A.C / D.C. Tig welding machines. D&S also uses Special Purpose welding machines to maintain high quality standards and large volumes.
Press-Shop:
Subject has an inhouse Press-Shop with Power Presses ranging from 5 tons to 650 Tons. D&S plans to upgrade its Heavy Press shop.
Paint Shop:
Subject has a conveyorised Paintshop capable of Liquid Painting Stoving Enamels as well as Heat Resistant Aluminised Painting. The Paint shop has modern Electrostatic Paint Guns as well as conventional HVLP spray painting guns. D&S is also tied up with Assosciate companies for its Powder Coating as well as Plating needs.
Quality Assurance:
Subject has a team of dedicated engineers involved in improving quality as well as Value Engineering. D&S has requisite measuring instruments and equipment for validating manufacturing processes, including Salt Spray test Chamber, Pressure Guage calibration, Vacuum Testing equipment etc. The Q.A. also has a Reliability Support Room equipped with equipment to calibrate inhouse gauges.
Technology:
With over 3 decades of expertise in manufacture of Fuel Tanks D&S has developed the capabilities to manufacture a variety of components including Radiator Frames, Pressurised tanks for Hydraulic Reservoirs and Radiator Surge Tanks. D&S has extensive experience in manufacturing products in a different materials like Galvanised Steel, Aluminium as well as a variety of coated sheets including Terne Coated Sheets, Leadfree Neotech Coated Sheets etc.
They are partners with Tata Motors and Bajaj Auto for Research & Development. They also have access in Pune to the Automobile Research Association of India "ARAI' and Auto Cluster which have state-of-the -art facilities for evaluating, testing, automobile components. They continue to do improvements and modifications for reducing cost and improve productivity. They also have access in Pune to the Automobile Research Association of India "ARAI' and Auto Cluster which have state-of-the -art facilities for evaluating, testing, automobile components. They continue to do improvements and modifications for reducing cost and improve productivity.
Future plans:
They are in the process of upgrading and modernizing their manufacturing facilities. Looking at the emerging market scenario they want to enhance their core competency in Fabrication of sophisticated engineering products especially in the Automotive area.
They are exploring possibilities of a collaboration / joint venture, and buy backs for the export markets, where they plan to bring in the latest technology for setting up the factory, design, manufacture for the domestic vehicle manufacturers of two/three/four wheelers. D&S also plans to set up a test cell for evaluation of exhaust systems.
Subject plans to expand its heavy-duty press-shop and Tube
processing line. D&S plans to achieve ISO 14000 Certification. D&S
plans to achieve a Company-wide PPM target of 200 PPM.
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.39.43 |
|
|
1 |
Rs.80.44 |
|
Euro |
1 |
Rs.55.66 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|