MIRA INFORM REPORT

 

 

Report Date :

15.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SPECTRUM CNC MACHINES PRIVATE LIMITED

 

 

Registered Office :

108, Dr. Azhagappa Street, Tatabad, Coimbatore – 641012, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

01.10.2001

 

 

Com. Reg. No.:

181-9905

 

 

CIN No.:

[Company Identification No.]

U29199TZ2001PTC009905

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CMBS06313G

 

 

PAN No.:

[Permanent Account No.]

AAGCS0637Q

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

To carry on the business of Machining of automobile parts, agricultural implements of all kinds and descriptions, engineering and other related items for motors cars, motors trucks, buses, tractors, vans, jeeps, lorries, motors launches, motors cycles and vehicle and conveyances of all kinds

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 11000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old established company having moderate track records. Company’s profitability is under severe pressure. It has some accumulated losses. Payments are reported as slow but correct.

 

The company can be considered normal for small business dealings at usual trade terms and conditions with slight caution initially.

 

 

LOCATIONS

 

Registered Office :

108, Dr. Azhagappa Street, Tatabad, Coimbatore – 641012, Tamilnadu, India

Tel. No.:

91-422-2490704 / 2319909

Email :

omsdms@yahoo.co.in

 

 

Corporate Office :

E – 3, SIDCO Industrial Estate, Kurichi, Coimbatore – 641021, Tamilnadu, India

Tel. No.:

91-422-2673993

Fax No.:

91-422-5531282

 

 

DIRECTORS

 

Name :

Mr. R. Rajasri

Designation :

Managing Director

 

 

Name :

Mr. S. Amudham

Designation :

Director

Address :

209, 9th Street, Gandhipuram, Coimbatore – 641012, Tamilnadu

Date of Appointment :

01.10.2002

 

 

Name :

Mr. S Raju

Designation :

Director

Address :

108, Dr. Azhagappa Chettiar Road, Tatabad, Coimbatore - 641012

Date of Birth/Age :

29.01.1972

Date of Appointment :

01.10.2001

 

 

Name :

Mr. R. Vaideeswaran

Designation :

Director

Address :

135A, 2 Street, P M Samy Colony, Coimbatore – 641012

Date of Birth/Age :

14.06.1973

Date of Appointment :

12.01.2002

 

 

Name :

Mr. S. Padmapriya

Designation :

Director

Address :

108, Dr. Azhagappa Chettiar Road, Tatabad, Coimbatore - 641012

Date of Birth/Age :

26.05.1980

Date of Appointment :

01.10.2001

 

 

KEY EXECUTIVES

 

Name :

Mr. A Balasubramaniam

Designation :

Secretary

Address :

4/141, Vinayakar Koil Street, Pannimadai, Coimbatore – 641017

Tel No. :

91-422-2644943

Mobile No. :

91-9363266643

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. R. Vaideeswaran

 

4800

Mr. S. Amudham

 

1600

Mr. S. Padmapriya

 

1600

Mr. S Raju

 

4800

Mr. Kalyani

 

1600

Mr. R. Rajasri

 

1600

 

 

 

Category

 

Percentage of Holding

Director or Relatives of directors

 

100.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

To carry on the business of Machining of automobile parts, agricultural implements of all kinds and descriptions, engineering and other related items for motors cars, motors trucks, buses, tractors, vans, jeeps, lorries, motors launches, motors cycles and vehicle and conveyances of all kinds

 

 

GENERAL INFORMATION

 

Bankers :
  • HDFC Bank
  • South Indian Bank
  • Citi Bank

 

 

Financial Institutions :

The Tamilnadu Industrial Investment

Corporation Limited, Coimbatore - 641018

 

 

 

Auditors :

 

Name :

M. Alagiriswamy and Company

Chartered Accountants

Address :

No.16, 6th Street, Tatabad, Coimbatore – 641012, Tamilnadu

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

160000

Equity Shares

Rs.10/- each

Rs.1.600 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

300000

Equity Shares

Rs.10/-each

Rs.3.000 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

3.000

1.600

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

0.000

0.056

4] (Accumulated Losses)

 

(0.110)

0.000

NETWORTH

 

2.890

1.656

LOAN FUNDS

 

 

 

1] Secured Loans

 

2.610

3.590

2] Unsecured Loans

 

3.695

1.406

TOTAL BORROWING

 

6.305

4.996

DEFERRED TAX LIABILITIES

 

0.000

0.103

 

 

 

 

TOTAL

 

9.195

6.755

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

12.755

7.531

 

 

 

 

INVESTMENT

 

1.136

0.152

DEFERREX TAX ASSETS

 

0.155

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

0.000

0.000

 

Sundry Debtors
 

1.277

0.710

 

Cash & Bank Balances
 

0.079

0.034

 

Loans & Advances
 

0.718

0.331

Total Current Assets
 

2.074

1.075

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

6.595

1.599

 

Provisions
 

0.341

0.427

Total Current Liabilities
 

6.936

2.026

Net Current Assets
 

(4.862)

(0.951)

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.011

0.023

 

 

 

 

TOTAL

 

9.195

6.755

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

7.321

NA

Total Income

 

7.321

NA

 

 

 

 

Profit/(Loss) Before Tax

 

[0.459]

0.738

Provision for Taxation

 

[0.293]

[0.007]

Profit/(Loss) After Tax

 

[0.166]

0.745

 

 

 

 

Expenditures :

 

 

 

 

Interest

 

0.613

0.000

 

Depreciation & Amortization

 

2.354

1.656

 

Other Expenditure

 

4.813

0.000

Total Expenditure

 

7.780

1.656

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

[2.27]

--

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

[6.27]

--

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

[3.10]

8.58

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.16

0.45

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

2.40

1.22

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

0.29

0.53

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Name of the company

SPECTRUM CNC MACHINES PRIVATE LIMITED

Presented By

Thiru .A. Mohan, Branch Manager

1) Date and description of instrument creating the change

Unattested hypothecation deed dt.18.10.2002. For term loan of Rs.1.700 millions and subsidy bridge loan of Rs.0.541 millions engrossed on Rs.20/- non judicial stamp paper

2) Amount secured by the charge/amount owing on the securities of charge

Rs.1.7000 millions as term loan and Rs.0.541 millions a subsidy bridge loan

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

1. Plant and Machinery both present and future situated at Ts 29, SIDCO, industrial Estate, Kurichi, Coimbatore – 21

 

2. Floating charge on all the remaining movable assets of the company including books debts subject to prior changes of the company’s bankers for working capita; finance requirements.

4) Gist of the terms and conditions and extent and operation of the charge.

Under hypothecation for term loan of Rs.1.700 millions and subsidy bridge loan of Rs.0.541 millions. The term loan of Rs.1.700 millions is repayable in 24 quarterly installments a under –

 

First 4 installments of Rs.0.050 million each next 10 installments of Rs.0.070 million each and last 10 installments of Rs.0.080 million each

 

The first installments of principal will begin immediately on the 1st day of the succeeding months after of the expiry of one year form the date of first disbursement or as will be applicable besides the quarterly interest and the subsequent installments of principal every quarter thereafter and interest on the said principal some or balance thereof remaining unpaid for the time being at the rate specified in clause (b) below, computed from the dated= there of and payable by quarterly payments on or before 28th Feb / 31st May / 31st Aug / 30th  Nov, as will be applicable taking into considered the first of such payments to be made on before 28th Feb / 31st May / 31st Aug / 30th  Nov, first succeeding after the initial disbursement of loan

 

 

(b) The rate of interest for the term loan will be 15.00%pa

 

The subsidy bridge loan is also repayable under the following circumstance –

i. In case the subsidy is not sanctioned for whatsoever reasons

 

ii. In case the funds are not made available by the State Government even after sanction of subsidy for any reasons whatsoever

 

iii. In case of violation of any of the term and conditions of sanction of subsidy and subsidy bridge loan

 

The subsidy bridge loan will carry in interest of 15%paa

 

However in case of default, an additional interest of 2.5% pa will be charged on the defaulted amount for the defaulted period.

 

No credit in interest will be paid for the amount of principal or interest paid earlier except in those case where the loans have been fully repaid or the full payment of installment or principal or interest is made more than sixty days before the due date

 

Premium shall be collected for the enclosure of term loan by the unit / borrower on the preclosed amount for the expired period. The premium so collected shall be the different in interest rate between the current rate in interest at the time of preclusive and the documented rate of interest subject to maximum of1% pa on the per closed amount for unexpired period excluding rebate for prompt repayment if any

 

 

5) Name and Address and description of the person entitled to the charge.

The Tamilnadu Industrial Investment

Corporation Limited, Coimbatore - 641018

 

 

 

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.39.33

UK Pound

1

Rs.79.74

Euro

1

Rs.55.74

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

2

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

--

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

 

26

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions