MIRA INFORM REPORT

 

 

Report Date :

19.10.2007

 

IDENTIFICATION DETAILS

 

Name :

METRONICS MACHINERY AND INSTRUMENTS PRIVATE LIMITED

 

 

Registered Office :

No. 7, RHB Colony White Field Road, Mahadevapura Post, Bangalore – 560048, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

14.09.1999

 

 

Com. Reg. No.:

025700

 

 

CIN No.:

[Company Identification No.]

U02922KA1999PTC025700

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Profile Projectors , Illuminated Magnifiers and Inspection Fixtures

 

 

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 1632

 

 

Status :

Small Company

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a relatively small company having moderate track. Company’s profitability is under severe pressure. It has same accumulated losses. Payments are reported as slow but correct.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

No. 7, RHB Colony White Field Road, Mahadevapura Post, Bangalore – 560048, Karnataka, India

Tel. No.:

91-80-25600743 / 5600743

E-Mail :

mmipl_dsm@rediffmail.com

 

 

DIRECTORS

 

Name :

Mr. D. Selva Kumar

Designation :

Director

Address :

No. 7, Muniappa Colony, Benniganahalli Pai Layout, Dooravani Nagar, Bangalore – 560016, Karnataka

Date of Birth/Age :

01.06.1955

Date of Appointment :

29.07.1999

 

 

Name :

Mr. S. Maragatham

Designation :

Director

Address :

No. 7, Muniappa Colony, Benniganahalli Pai Layout, Dooravani Nagar, Bangalore – 560016, Karnataka

Date of Birth/Age :

16.12.1956

Date of Appointment :

29.07.1999

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. S. Maragatham

 

5000

Mr. D. Selva Kumar

 

5000

Category

 

Percentage of Holding

Directors or Relatives of Directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Profile Projectors , Illuminated Magnifiers and Inspection Fixtures

 

 

Import :

 

Countries :

Germany and Hong Kong

 

 

 

 

GENERAL INFORMATION

 

Customers :
  • Brakes India Limited
  • Hindustan Aeronautics Limited
  • Indian Rubber Products Limited
  • Kamdhenu Auto CNC Private Limited
  • Super Auto Forge Limited
  • Tata Ficosa Automotive systems Limited
  • B1 Metal Bearing Limited
  • British Engineers India Limited
  • H.S.I Automotives Limited(Ancillary of Huandai)
  • Indo Swiss Jewels Limited
  • Madras Rings & Travelers Manufacturing Company
  • T.I Diamond Chains Limited

 

 

Bankers :

Canara Bank

SME Branch, White Filed Road, Dyavasndra Industrial Estate, Bangalore – 560048, Karnataka

E- Mail: tr_jairam@vsnl.net

 

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

D. S. Mani and Company

Chartered Accountants

Address :

3, 4th Cross, Vivekanand Nagar, Opp. Banaswadi Rly, Stn, Bangalore – 560033, Karnataka

 

 

Memberships :

SSI

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000

Equity Shares

Rs.10/- each

Rs.0.500 million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

10000

Equity Shares

Rs.10/- each

Rs.0.100 million

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.100

0.100

2] Share Application Money

 

0.400

0.400

3] Reserves & Surplus

 

0.000

0.000

4] (Accumulated Losses)

 

(0.092)

(0.112)

NETWORTH

 

0.408

0.388

LOAN FUNDS

 

 

 

1] Secured Loans

 

1.076

0.882

2] Unsecured Loans

 

0.202

0.202

TOTAL BORROWING

 

1.278

1.084

DEFERRED TAX LIABILITIES

 

0.000

0.000

 

 

 

 

TOTAL

 

1.686

1.472

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

0.344

0.463

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.000

0.000

DEFERREX TAX ASSETS

 

0.086

0.109

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

1.174

1.009

 

Sundry Debtors
 

0.644

0.457

 

Cash & Bank Balances
 

0.017

0.003

 

Other Current Assets
 

0.000

0.000

 

Loans & Advances
 

0.158

0.012

Total Current Assets
 

1.993

1.481

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

0.737

0.581

 

Provisions
 

0.000

0.000

Total Current Liabilities
 

0.737

0.581

Net Current Assets
 

1.256

0.900

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.000

0.000

 

 

 

 

TOTAL

 

1.686

1.472

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

1.898

0.955

Other Income

 

0.000

0.000

Total Income

 

1.898

0.955

 

 

 

 

Profit/(Loss) Before Tax

 

0.044

(0.298)

Provision for Taxation

 

0.000

0.000

Profit/(Loss) After Tax

 

0.044

(0.298)

 

 

 

 

Expenditures :

 

1.854

1.253

Total Expenditure

 

1.854

1.253

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

2.31

(31.20)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

2.31

(31.20)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

1.88

(15.32)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.10

0.76

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

1.81

1.50

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

2.70

2.54

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Name of the company

METRONICS MACHINERY AND INSTRUMENTS PRIVATE LIMITED

Presented By

Canara Bank, SSI Branch, Mahadevapura, Bangalore

1) Date and description of instrument creating the change

15.09.2003 – Cash Credit Agreement

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

Rs.0.500 million

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

The whole of the borrower’s present in process of manufacture and all finished and manufactured goods and articles such as profile projectors with all stores, components and spares. Present and future, book debts, outstanding monies receivable, claims, bills, rights to or immovable properties and movable assets

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

1. interest @1.60% p.a. over and above on going PLR with minimum of 12.60%p.a.a

2. Repayable on demand

 

3. Margin as applicable

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

Canara Bank

SME Branch, White Filed Road, Dyavasndra Industrial Estate, Bangalore – 560048, Karnataka

6) Date  and brief description of instrument modifying the charge

31.03.2005 – Supplemental Agreement

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.

Credit facility increased from Rs.0.500 million to Rs.0.700 million. Interest altered. All existing security to cover the enhanced limit of Rs.0.70 million

 

 

Corporate identity number (CIN) Foreign company registration number

U02922KA1999PTC025700

 

Name of the Company

METRONICS MACHINERY AND INSTRUMENTS PRIVATE LIMITED

Address

No. 7, RHB Colony White Field Road, Mahadevapura Post, Bangalore – 560048, Karnataka

This form is for

Modification of Charges

Type of Charge

Book Debts and Movable property (not being pledge)

Particulars of the charge holder 

Canara Bank

SME Branch, White Filed Road, Dyavasndra Industrial Estate, Bangalore – 560048, Karnataka

E- Mail: tr_jairam@vsnl.net

Amount secured by the charge

Rs.1.000 million

Brief of the principal terms and conditions 

Rate of Interest:

0.25% above on going benchmark PLR with minimum of 11.75%pa.a

 

Terms of Repayments

CC – Running account repayable on demand, subject to renewal

 

Margin:

25%

 

Extent and operation of the charge

The charge on the properties being charged herein shall operate to the extent of Rs.1.000 million plus interest, commission, costs, expenses and other charges thereon

Short particulars of the property charged (including location of the property) 

Hypothecation be way of first charge on present and future stock of raw materials, goods in process of manufacture, finished and manufactured goods such as profile projectors, lenses, etc., will all stores, components and spares stored at No. 7, RHB Colony White Field Road, Mahadevapura Post, Bangalore – 560048, Karnataka or at any other place and book debts belonging to the company

Date of the instrument creating or modifying the charge

30.11.2006

Particular of the present modification 

By the above the amount by charge stands enhanced from Rs.0.700 million to Rs.1.000 million

 

 

 

As Per Web Details

 

Company Profile:

Subject is a reputed manufacturer and importer of Profile Projectors, Illuminated Magnifiers, Inspection Fixtures, Etc. Incorporated in the year 1999, they are invariably delivering the prime quality goods in line with the market demand. They endeavor to understand the taste and requirements of clients which has helped them to deliver them with unique designs and patterns. Their designs are appreciated all over the country and help them to carve a niche for ourselves in the highly competitive market. They never compromise on quality and this is the reason which makes them the most preferred company among hundreds of delighted customers.

Their Quality

Their variety of Micro Measure Profile Projectors and other products undergo stiff quality check to prevent any discrepancy. It is their heartiest wish to provide their clients with only the best in terms of quality. They have introduced technically superior aspects, improving their quality immensely at the global level. A R&D department at their company ensures a host of feed back to further improve upon their quality. Their products pass the tough lab conditions post manufacture stage, resulting in a superior finish and efficiency. Their quality control mechanism operates at all levels of production.

Their Infrastructure

Subject has installed all the latest machineries and imported calibrated master gauges at its manufacturing unit in order to manufacture world class products with excellent features. They have installed the machineries like Cylindrical Grinding Machine, lathe, Drilling Machine, Grinding Machine, welding machine Gas Cutting for impeccable output.

Their flawless quality and efficient service enables them to make a presence in the market amid harsh competition. The Profile projectors, Illuminated magnifiers, Inspection fixtures, Etc. are up-graded and manufactured to meet the clients complete satisfaction. 

 

 

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.39.47

UK Pound

1

Rs.80.59

Euro

1

Rs.56.18

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

2

--CREDIT LINES

1~10

2

--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

 

29

 

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