MIRA
INFORM REPORT
|
Report Date : |
31.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
BINNY ENGINEERING LIMITED |
|
|
|
|
Registered Office : |
Meenambakkam, P O Box No. 8677, Chennai – 600 114, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
04.01.1995 |
|
|
|
|
Com. Reg. No.: |
029734 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L28920TN1995PLC029734 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturers of Sugar, Bakery and Confectionery Machinery |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Maximum Credit Limit : |
- |
|
|
|
|
Status : |
Sick Unit |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
- |
|
|
|
|
Comments : |
Subject is a sick unit and has been referred to BIFR. Company’s
Networth has been eroded. Payments are reported as slow and delayed. The company can be considered for any business dealings on fully safe
and secured trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Meenambakkam, P O Box No. 8677, Chennai – 600 114, |
|
Tel. No.: |
91-44-22341151 |
|
Fax No.: |
91-44-22345251 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. M. Ethurajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V R Venkatachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Natarajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Nandagopal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M E Shanmugam |
|
Designation : |
Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Sugar, Bakery and Confectionery Machinery |
|
|
|
|
Products : |
v
Cast Iron Castings v
Rice Mill Machinery v
Steel Structural |
GENERAL INFORMATION
|
Bankers : |
Not Available |
|
|
|
|
Facilities : |
- |
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Auditors : |
|
|
Name : |
CNGSN and Associates Chartered Accountants |
|
Address : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 60.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 (6 Months) |
30.09.2005 (18 Months) |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
60.000 |
60.000 |
60.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
(361.000) |
(341.800) |
(503.800) |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
(301.000) |
(281.800) |
(443.800) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
315.600 |
|
|
2] Unsecured Loans |
204.000 |
200.000 |
19.300 |
|
|
TOTAL BORROWING |
204.000 |
200.000 |
334.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(97.000) |
(81.800) |
(108.900) |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10.800 |
12.900 |
22.500 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6.900
|
7.400 |
24.900 |
|
|
Sundry Debtors |
19.000
|
23.900 |
33.000 |
|
|
Cash & Bank Balances |
0.600
|
0.900 |
2.600 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
2.600
|
3.000 |
5.800 |
|
Total
Current Assets |
29.100
|
35.200 |
66.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
120.500
|
122.600 |
164.300 |
|
|
Provisions |
16.400
|
7.300 |
33.400 |
|
Total
Current Liabilities |
136.900
|
129.900 |
197.700 |
|
|
Net Current Assets |
(107.800)
|
(94.700) |
(131.400) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
(97.000) |
(81.800) |
(108.900) |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 (6 Months) |
30.09.2005 (18 Months) |
31.03.2004 |
|
|
Sales Turnover |
0.100 |
23.200 |
50.000 |
|
|
Other Income |
1.100 |
239.400 |
5.600 |
|
|
Stock Adjustments |
0.000 |
(16.600) |
(3.800) |
|
|
Total Income |
1.200 |
246.000 |
51.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(19.200) |
162.000 |
(78.300) |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
(19.200) |
162.000 |
(78.300) |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
0.100 |
0.200 |
1.200 |
|
|
Excise Duty |
0.000 |
1.500 |
2.800 |
|
|
Power and Fuel Cost |
0.400 |
4.000 |
3.700 |
|
|
Other Manufacturing Expenses |
0.500 |
6.900 |
30.300 |
|
|
Employee Cost |
11.100 |
54.300 |
41.000 |
|
|
Selling and Administration Expenses |
3.200 |
4.100 |
1.500 |
|
|
Miscellaneous Expenses |
3.200 |
3.400 |
5.300 |
|
|
Interest and Financial Charges |
0.000 |
0.000 |
35.100 |
|
|
Depreciation |
1.900 |
9.600 |
9.200 |
|
Total Expenditure |
20.400 |
84.000 |
130.100 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
30.09.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
0.00
|
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
|
0.00
|
0.00 |
0.00 |
|
Current Ratio |
|
0.10
|
0.14 |
0.20 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
0.00
|
0.10 |
0.32 |
|
Inventory |
|
0.03
|
0.96 |
1.85 |
|
Debtors |
|
0.01
|
0.54 |
1.21 |
|
Interest Cover Ratio |
|
0.00
|
0.00 |
(1.23) |
|
Operating Profit Margin |
(%) |
(9500.00)
|
(164.22) |
(68.00) |
|
Profit Before Interest And Tax Margin |
(%) |
(11400.00)
|
(205.60) |
(86.40) |
|
Cash Profit Margin |
(%) |
(9500.00)
|
(164.22) |
(138.20) |
|
Adjusted Net Profit Margin |
(%) |
(11400.00)
|
(205.60) |
(156.60) |
|
Return On Capital Employed |
(%) |
0.00
|
(42.09) |
0.00 |
|
Return On Net Worth |
(%) |
0.00
|
16.57 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
BIFR
As per the Sanctioned Scheme of Binny Limited, the Company has been
delinked from the scheme of rehabilitation. As directed by BIFR, the Company
has appointed Industrial and Technical Consultancy Organization of Tamilnadu
Ltd. (ITCOT), an independent consultant to study the viability of the Company
and the ITCOT Report was submitted to BIFR through IDBI. The Company has
settled all dues to Banks. In respect of the Binny Beach Engineering Workers
Union (BBEWU) claims the Company has entered into a settlement under section
12(3) of the I D Act and the payment has been effected to all the workers. The
BBEWU have also simultaneously withdrawn all the cases pending before the
various courts. While the company is taking steps to revive the unit an order
dated 7-10-2005 has been received from BIFR, which is factually incorrect and
the company is proposing to file necessary application before High Court of
Madras in this regard.
PROFILE
Subject is a heavy
Engineering Company with more than 50 years of engineering expertise. With its
large pool of skilled manpower and technical personnel, it serves the needs of
varieties of Industries such as Power Plants, Steel, Sugar, Material Handling,
Paper, Defence and Rice Mills. It has extensive manufacturing facilities for Machining,
Fabrication and Casting and a well-Equipped Quality Control Laboratory all less
than one roof. Its clients consist of large Corporations in Public Sector and
Private Sector as well as Multinationals.
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 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. 40.96 |
|
|
1 |
Rs. 82.55 |
|
Euro |
1 |
Rs. 55.96 |
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 |
|