MIRA
INFORM REPORT
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Report Date : |
19.10.2007 |
IDENTIFICATION DETAILS
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Name : |
EURO SOLO ENERGY SYSTEMS LIMITED |
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Registered Office : |
301, Megor Arcade, M |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.10.2004 |
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Com. Reg. No.: |
149319 |
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CIN No.: [Company
Identification No.] |
U31400MH2004PLC149319 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME05801F |
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PAN No.: [Permanent
Account No.] |
AABCE3860C |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer, Importer and Exporter of all kinds of Battery Cells and |
RATING & COMMENTS
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MIRAs Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 228332 |
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Status : |
Small Company |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively small company and had not commenced commercial
operations as per last available financials of 31.03.2006. Trade relations are
reported as fair. Payments are reported as slow but correct. The company can be considered for small to mediocre business dealings
with slight caution, initially. |
LOCATIONS
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Registered Office : |
301, Megor Arcade, M |
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Tel. No.: |
91-22-25027101 / 2 / 3 / 3512 -3 |
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Fax No.: |
91-22-25027100 |
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E-Mail : |
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Factory : |
Opp. to Pidilite Industries, Village - Gullarwala, Baddi, Tehsil -
Nalagara, District Solan 173205, Himachal Pradesh |
DIRECTORS
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Name : |
Mr. Nikhil Lakhamshi Chheda |
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Designation : |
Managing Director |
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Address : |
12, Koyal Geet, |
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Date of Birth/Age : |
22.06.1975 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mr. Lakhamshi Nanji Chheda |
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Designation : |
Director |
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Address : |
12, Koyal Geet, |
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Date of Birth/Age : |
29.06.1947 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mr. Shailesh Lakhamshi Chheda |
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Designation : |
Director |
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Address : |
12, Koyal Geet, |
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Date of Birth/Age : |
28.11.1968 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mr. Dhaval Shantilal Shah |
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Designation : |
Director |
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Address : |
302, |
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Date of Birth/Age : |
10.02.1983 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mr. Shantilal Ladhabhai Shah |
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Designation : |
Director |
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Address : |
Shop No. 6, Abhishek, |
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Date of Birth/Age : |
12.04.1958 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mr. Shubhashbhai Laljibhai Shah |
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Designation : |
Director |
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Address : |
Prime Avenue, B Wing, Flat No. 403, S.V. Raod, Near |
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Date of Birth/Age : |
23.05.1971 |
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Date of Appointment : |
05.05.2005 |
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Name : |
Mr. Laljibhai Khirabhai Shah |
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Designation : |
Director |
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Address : |
C/o. Laxmi Ply Agency, Shop No. 6, Abhishek Vallabh Bhai Road, Vile
Parle (West), Mumbai 400056 |
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Date of Birth/Age : |
21.05.1952 |
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Date of Appointment : |
29.10.2004 |
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Name : |
Mrs. Nenshi Ladhabhai Shah |
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Designation : |
Director |
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Address : |
202, |
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Date of Birth/Age : |
26.09.1959 |
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Date of Appointment : |
21.12.2004 |
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Name : |
Mrs. Daksha Shubhash Shah |
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Designation : |
Director |
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Address : |
Prime Avenue, B Wing, Flat No. 403, S.V. Raod, Near |
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Date of Birth/Age : |
29.07.1975 |
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Date of Appointment : |
21.12.2004 |
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Name : |
Mr. Nilesh Lakhamshi Nanji Chheda |
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Designation : |
Director |
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Address : |
12, Koyal Geet, |
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Date of Birth/Age : |
19.02.1971 |
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Date of Appointment : |
25.08.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Dhaval Shantilal Shah |
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10000 |
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Mr. Shantilal Ladhabhai Shah |
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10000 |
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Mr. Shubhashbhai Laljibhai Shah |
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10000 |
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Mr. Laljibhai Khirabhai Shah |
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10000 |
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Mr. Shailesh Lakhamshi Chheda |
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10000 |
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Mr. Lakhamshi Nanji Chheda |
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10000 |
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Mr. Nikhil Lakhamshi Chheda |
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10000 |
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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 : |
Manufacturer, Importer and Exporter of all kinds of Battery Cells and |
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Brands : |
²
EURO VITRIFIED TILES ²
EURO BOND -
ALUMINIUM COMPOSITE PANEL ²
EURO MERCHANDISE ²
URO PLY ²
URO MICA ²
URO VENNER ²
EURO CANFOR ²
URO PRELAM |
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GENERAL INFORMATION
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Customers
: |
²
Infosys ²
Godrej ²
Reliance ²
ICICI ²
Raymonds ²
TCS ²
Jindal ²
ONGC ²
The Taj Group |
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Bankers : |
State Bank of Industrial
Finance Branch, marble Arch, Race Course, Vadodara 390007, E-Mail: pn.prasad@sbi.co.in |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Mukesh M Shah Chartered Accountants |
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Address : |
169 / 4, Lawahar Nagar, Road, No. 2, Goregaon, Mumbai 400062, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13000000 |
Equity Shares |
Rs.10/- each |
Rs.130.000 millions |
|
5000000 |
Preferences Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70000 |
Equity Shares |
Rs.10/- each |
Rs.0.700
million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.700 |
28.425 |
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2] Share Application Money |
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138.883 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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139.583 |
28.425 |
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LOAN FUNDS |
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1] Secured Loans |
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377.295 |
0.000 |
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2] Unsecured Loans |
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54.174 |
0.075 |
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TOTAL BORROWING |
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431.469 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.075 |
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TOTAL |
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571.052 |
28.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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26.102 |
0.841 |
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Capital work-in-progress |
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498.568 |
0.000 |
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INVESTMENT |
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0.202 |
0.000 |
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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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64.815
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0.000 |
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Sundry Debtors |
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0.000
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0.000 |
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Cash & Bank Balances |
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15.936
|
1.706 |
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Other Current Assets |
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0.000
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0.000 |
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Loans & Advances |
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1.056
|
22.630 |
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Total
Current Assets |
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81.807 |
24.336 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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74.051
|
0.604 |
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Provisions |
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0.400
|
0.000 |
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Total
Current Liabilities |
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74.451
|
0.604 |
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Net Current Assets |
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7.356
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23.732 |
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MISCELLANEOUS EXPENSES |
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38.824 |
3.927 |
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TOTAL |
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571.052 |
28.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2005 |
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Expenditures : |
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Payment to and Provision for employees |
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0.322 |
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Financial Expenses |
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1.239 |
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Administrative Expenses and Other Expenses |
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2.007 |
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Total Expenditure |
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3.568 |
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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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Debt Equity Ratio (Total Liability/Networth) |
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0.53 |
0.02 |
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Current Ratio (Current Asset/Current Liability) |
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1.09 |
1.02 |
LOCAL AGENCY FURTHER INFORMATION
Form 8:
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Name of the company |
EURO SOLO ENERGY SYSTEMS LIMITED |
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Presented
By |
The Cosmos Co-op
Bank Limited Ghatkopar (West), Branch, Mumbai |
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1) Date and description of instrument creating the change |
Hypothecation of Tangible
goods / movable property to secure a demand cash credit account / demand
overdraft account / demand loan account Dt. 05.07.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.247.000
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 |
These are hereby
hypothecation in favour of the bank all those following goods of the
borrowers namely all plant and machinery present and future etc. as per the
schedule exposed here with and which forms part of this document including
there in the stock thereof the time being whether raw or manufactured or in
process of manufacture an also all products, goods and any every tangible
movable property of the borrowers whether new lying or at any time hereafter
during the continuance of this security lying or being on or about the
borrower premises and godowns or wherever
else the same may be or be held by any party anywhere to the order and
disposition of the borrower or in course of transit. The hypt goods are
hypothecated as security by way of first charge for due repayment to the
bank. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
@ 12%p.a. |
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5) Name and Address and description of the person entitled to the charge. |
The Cosmos Co-Op
Bank Limited Ghatkopar (West),
Branch, Mumbai |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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Corporate identity
number (CIN) Foreign company registration number |
U31400MH2004PLC149319 |
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Name of the
Company |
EURO SOLO ENERGY SYSTEMS LIMITED |
|
Address |
301, Megor Arcade, M |
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This form is for |
Creation of
Charges |
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Type of Charge |
Immovable
Property and Movable Property (not being pledge) |
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Particulars of
the charge holder |
State Bank of Industrial
Finance Branch, marble Arch, Race Course, Vadodara 390007, E-Mail: pn.prasad@sbi.co.in |
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Amount secured by
the charge |
Rs.285.000
millions |
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Brief of the
principal terms and conditions |
Rate of Interest: i. Rate of interest
for working capital facility: at SBAR i.e. effective rate of 12.25%p.a. ii. Rate of
Interest for Term Loan: at SBAR i.e. effective rate of 12.25%p.a. Terms of
Repayments: 72 monthly
installments with the first 36 installments being Rs.2.000 millions per month
and the remaining 36 installments will be of Rs. 3.555 millions. The first
installment will begin 12 months from date of first disbursement / opening of
project LC or from March 2008 whichever is earlier. Margin: Raw materials /
stock in process / stores and consumables / finished goods 25% receivables
25%, EPC 10%. Project LC (under term loan) 25% 25%. Letters of Credit
25%, bank guarantee under EPCG scheme 20% Extent and
operation of the charges: Working capital
one year payable on demand Term loan 7
years EPCG Guarantee
9 years |
|
Date of
Instrument creating or modifying the charge |
12.03.2007 |
As Per Web Details
Company profile:
The Euro Group stands tall when it comes to achieving higher standards of excellence. Over the years, Euro Brands have been synonymous with hallmarking quality and innovation in their respective domains. Their passion to excel has made them grow faster than most of their competitors, making them stand at par with global competition. Dedication, commitment, foresight and hard work form their core competencies. Their success story commenced with plywood way back in 1991.
Today they are proud to be a multi-faceted conglomerate with proven expertise in manufacturing, distribution and marketing of an array of decorative and building material products.
Euro Group
strongly believes that success is a continuous phenomenon. By benchmarking ourselves
with the best business practises followed globally, they look forward to a
bright future, brought to life by growing possibilities.
Group Profile:
Rated as one of the fastest growing business conglomerates
of
By offering contemporary products, superior quality and assured availability, the group has gained an exceptional stronghold with an array of winning brands to its credit. With a holistic presence in the lifestyle segment, Euro Group continues to grow in terms of product benefits, market share and customer retainership.
All Euro Brands have achieved
the distinction of being among the most trusted brands of
Vision:
To be the most effective, innovative and creative organisation, known for its leadership, professionalism and ethical approach, both nationally and internationally.
To provide quality products and services, and support
long-term growth, by adopting the highest standards of integrity and care for
the people.
Philosophy
Good corporate governance always reaps rich rewards. The Euro Group strongly believes in this philosophy and continues to inculcate it with sincerity and integrity.
Today the importance of batteries can never be overemphasized. They come handy in an array of electronic / electrical applications like torches, cameras, remote controls, wireless mice, wireless keyboards, discmans and many more. And this has accentuated the demand for batteries in the modern world. Most of the equipment are stand-alone. Batteries are the alternative source of power supply to these equipment. Demands for Primary non-rechargeable batteries are more compared to the rechargeable ones because of limited conventional methods charging process.
This demand for Primary non-rechargeable batteries has given birth to Subject Technical know how from Japanese Firms has ensured world-class quality and unmatched performance.
Spread over a total area of 5,00,000 sq. ft., Euro-Solo Energy Systems has a state-of-the-art plant with an initial capacity of 400 million cells per annum and a manufacturing floor area of 1,25,000 sq. ft. in Himachal Pradesh, which promises a regular supply of these batteries.
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 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 Intl
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 companys 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.39.47 |
|
|
1 |
Rs.80.59 |
|
Euro |
1 |
Rs.56.18 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--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 |
|
27 |
This score serves as a reference to assess SCs 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 |
|