MIRA INFORM REPORT

 

 

Report Date :

04.09.2007

 

IDENTIFICATION DETAILS

 

Name :

SHINE AUTO PRIVATE LIMITED

 

 

Registered Office :

H, No. 1598, Sector 18/D, Chandigarh - 160018

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

10.01.1989

 

 

Com. Reg. No.:

53-8955

 

 

CIN No.:

[Company Identification No.]

U34300CH1989PTC008955

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PTLS10477F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

The company is engaged in Manufacturing and Sale of Auto Transmission and gears and engine parts and Precision machining of Automotive components.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 60000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow But Correct

 

                       

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

Company’s latest financials are missing from the Government Registry and the Management declined to part with latest financials.

 

 

LOCATIONS

 

Registered Office :

H, No. 1598, Sector 18/D, Chandigarh - 160018

Location:

Owned

 

 

Factory 1 :

B3, Industrial Focal Point, Phase I, S.A.S. Nagar, Mohali – 160 070, Punjab, India.

Tel. No.:

91-172-2261749 / 2271777 / 2272822

Fax No.:

91-172-2261762 / 5092218

E-Mail:

info@shineauto-india.com

Website:

http://www.shineauto-india.com

sitemaster@shineauto-india.com

Location:

Owned

 

 

DIRECTORS

 

Name :

Mr. Brar Tejpal

Designation :

Director

Address :

H, No. 1598, Sector 18/D, Chandigarh - 160018

Date of Appointment :

10/01/1989

 

 

Name :

Mr. Brar Narinder

Designation :

Director

Address :

H, No. 1598, Sector 18/D, Chandigarh - 160018

Date of Appointment :

10/01/1989

 

 

Name :

Mr. Brar  Gurinder

Designation :

Director

Address :

H, No. 1598, Sector 18/D, Chandigarh - 160018

Date of Appointment :

10/01/1992

 

 

Name :

Mrs. Brar Rajpal

Designation :

Director

Address :

H, No. 1598, Sector 18/D, Chandigarh - 160018

Date of Appointment :

01/10/1992

 

 

 

 

 

 

 

MAJOR SHAREHOLDERS 

 

Names of Shareholders

 

No. of Shares

Brar Tejpal

 

155800

Brar Narinder

 

247400

Brar Singh Gursewak

 

211000

Brar  Gurinder

 

52100

Gill Singh Pritam

 

1000

Gill Singh Paramjit

 

1000

Avtar Singh

 

1000

Grewal Singh Jaskaran

 

1800

Singh Harinder

 

16700

Gill S. Gurinder

 

1800

Grewal S. Kulwinder

 

1700

Singh Joginder

 

11800

Singh Balwinder

 

6700

Singh Sadhu

 

16500

Singh Gagandeed

 

16500

Amandeep Singh

 

1500

Guridip Singh

 

16700

Angrej Singh

 

6700

Amardeep Singh

 

16800

Mithu Singh

 

16800

Amarjit Kaur

 

1500

Satinder Kaur

 

1500

Rajpal Brar

 

1500

Kanwal Inder Brar

 

1500

 

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in Manufacturing and Sale of Auto Transmission and gears and engine parts and Precision machining of Automotive components.

 

 

GENERAL INFORMATION

 

Suppliers :
  • Arati steels
  • Ajit singh & Sons
  • AK Engineering Works
  • Arora tools Center
  • Amtek Sales & Services
  • Ap Induction
  • Arpan Enterprises
  • Balaji Enterprises
  • Balzers (India)  Limited
  • Budhiraja Sons
  • Chetna Engineering Works
  • Chandigarth Mill Store
  • CNC Solutions
  • Deen Engineering Works
  • Delhi Steel & Machinery store
  • Dhir Steels
  • Diana Industries (p)  Limited
  • Deeson Enterprises
  • Dhiman Industries
  • Dynex Enterprises
  • Econ Tooling Systems
  • Excell Export

 

 

Customers :
  • Brar Industries
  • Intellek Automation private Limited
  • Logix Automation
  • Preet Forgings
  • Prime Hydraulics and Pneumatics
  • Rajesh Fastners
  • RN Gupta & Company
  • SB Engineers
  • Sigma Vibacoutic Private Limited
  • Swaraj Engines Limited
  • Swaraj Mazda Limited
  • Vako Seals
  • Y C Aggarwal

 

 

No. of Employees :

200

 

 

Bankers :
  • ICICI Bank Limited
  • IDBI Bank
  • Indian Overseas Bank

 

 

 

Facilities :

Subject does not enjoy credit facility.

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

R. P. Mallick and Company

Chartered Accountants

Address :

1442 Sector 44 –B, Chandigarh – 160 047

Tel. No.:

0172-2668141

 

 

Associates/Subsidiaries :

Brar Industries

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1000000

Equity Shares

Rs. 10.00 each

Rs. 10.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

807300

Equity Shares

Rs. 10.00 each

Rs. 8.073 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

8.073

8.073

8.073

2] Share Application Money

4.491

4.491

4.491

3] Reserves & Surplus

3.112

1.873

1.619

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

15.676

14.437

14.183

LOAN FUNDS

 

 

 

1] Secured Loans

9.210

13.783

12.955

2] Unsecured Loans

0.731

0.731

0.000

TOTAL BORROWING

9.941

14.514

12.955

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

25.617

28.951

27.138

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

23.246

19.570

20.955

Capital work-in-progress

2.357

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

5.244

1.358

2.898

 

Sundry Debtors

4.218

15.536

10.636

 

Cash & Bank Balances

0.567

0.568

0.478

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

1.839

0.742

1.110

Total Current Assets
11.868

18.204

15.122

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities

11.854

8.823

8.939

 

Provisions

0.000

0.000

0.000

Total Current Liabilities
          11.854

8.823

8.939

Net Current Assets
0.014

9.381

6.183

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

25.617

28.951

27.138

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003

Sales Turnover [Including other income]

32.337

24.593

20.304

 

 

 

 

Profit/(Loss) Before Tax

1.621

0.254

0.079

Provision for Taxation

0.127

0.000

0.000

Profit/(Loss) After Tax

1.494

0.254

0.079

 

 

 

 

Total Expenditure

30.716

24.339

20.225

 

 

PARTICULARS

 

 

31.03.2007

(Approx.)

31.03.2006

Sales Turnover 

 

25.000

26.000 – 27.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003

PAT / Total Income

(%)

4.62

1.03

0.39

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

5.01

1.03

0.39

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.33

0.67

0.22

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.10

0.02

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.39

1.62

1.54

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.00

2.06

1.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

FIXED ASSESTS

 

v      Land

v      Building

v      Machinery

v      Tools & Dies

v      Electric Instruments

v      Furniture & Fixture

v      Office Equipment

v      Cycle

v      Car

v      Computer

 

FORM 8

 

Name Of The Company

SHINE AUTO PRIVATE LIMITED, MOHALI

Presented By

Punjab Financial Corporation, 95-98 Bank Square Sector 17B, Chandigarh

1) Date and description of instrument creating the change

Mortgage Deed (Company) dated 22.02.2001.

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

Rs. 9.000 Millions

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

As per Mortgage Deed Dated 22.02.2001 (Building, Machinery & M F A)

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

  1. Repayment.
  2. Repayment of Interest
  3. Extent of Operation of Charges.

Repayment is 1st quarterly Installment of Rs. 0.279 Millions each and 2nd quarterly Installment of Rs. 0.282 Millions each. Installment Commencing from 01.09.2001

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

Punjab Financial Corporation, Bank Square,95-98, Sector 17B, Chandigarh

6)Date  and brief description of instrument modifying the charge

NIL

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.

NIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name Of The Company

SHINE AUTO PRIVATE LIMITED, MOHALI

Presented By

Mr. Tejpal Brar, Managing Director

1) Date and description of instrument creating the change

Agreement for the grant of small Industrial Advance Dated 08.01.1993.

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

Rs. 2.500 Millions

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

Hypothecation of book Debts out standing money Receivables, Claims, Bills, Invoice & Other movables and Immoveable Assets.

4) Gist of the terms and conditions and extent and operation of the charge.
  1. Rate of Interest: @ 1.75% Over state, Bank of India. Advance rate with minimum of 19.75% p.a.
  2. Extent of operation. 100%
  3. Repayable on Demand
  4. Margin 25%

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

State Bank of India, sector 7, Madhya Marg, Chandigarh.

6)Date  and brief description of instrument modifying the charge

Agreement for the grant of small Industrial advance dated 1.12.1999. Executed by State Bank of India Industrial Finance Branch, sector 22, Chandigarh.

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.

  1. Bank Interest 3.5% over S. B. I. Advance rate minimum 15.5% p.a. plus interest tax with quarterly rests.
  2. Amount Secured : Rs, 3.000 Millions
  3. Inter change ability of Rs. 0.250 Millions from cash credit bills to cash credit stock & vice versa.

 

 

Name Of The Company

SHINE AUTO PRIVATE LIMITED, MOHALI

Presented By

Mr. Tejpal Brar, Managing Director

1) Date and description of instrument creating the change

Agreement for the grant of small Industrial Advance Dated 08.01.1993.

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

Rs. 2.500 Millions

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

Hypothecation of goods moveable and other assets whether raw material or on the process of manufacture and all articles manufactured there from and all other goods & movables etc.    

4) Gist of the terms and conditions and extent and operation of the charge.
  1. Rate of Interest: @ 1.75% Over state, Bank of India. Advance rate with minimum of 19.75% p.a.
  2. Extent of operation. 100%
  3. Repayable on Demand
  4. Margin 25%

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

State Bank of India, sector 7, Madhya Marg, Chandigarh.

6)Date  and brief description of instrument modifying the charge

Agreement for the grant of small Industrial advance dated 1.12.1999. By State Bank of India Industrial Finance Branch, Sector 22, Chandigarh.

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.

  1. Bank Interest 3.5% over S. B. I. Advance rate minimum 15.50 % p.a. plus interest tax with quarterly rests.
  2. Amount Secured : Rs, 0.250 Millions
  3. Inter change ability of Rs. 0.250 Millions from cash credit bills to cash credit stock & vice versa.

       

 

 

Name Of The Company

SHINE AUTO PRIVATE LIMITED, MOHALI

Presented By

Mr. Tejpal Brar, Managing Director

1) Date and description of instrument creating the change

On 22nd day of February, 2001 Mortgage Deed executed by the company in the favour of Punjab Financial Corporation (hereinafter referred to as “PFC”) to secure the financial assistance of Rs. 9.000 Millions.

 

On 08th day of September, 2004. Deed of hypothecation executed by the company in favour of Small Industries Development Bank of India (SIDBI) to secure the financial assistance of Rs. 3.500 Millions. Financed by SIDBI to Shine Auto Private Limited. A certified copy of the said Deed of Hypothecation is enclosed.

 

On 08th day of September, 2004 Tripartite Agreement (among SIDBI, PFC, & the Company) for creating second charge executed by the company in favour of Small Industries Development Bank of India (SIDBI) to secure the financial assistance of Rs. 3.500 Millions. Financed by SIDBI to Shine Auto Private Limited. A certified copy of the said Tripartite

Agreement enclosed.

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

Term loan/ limit of 1) Rs. 9.000 Millions lent and advance by PFC to the company together with interest, further interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company to the respective charge holder in terms of the Loan Agreements(s) dated 12.09.2004 between the company of the One part and PFC of the other part.

 

Rs. 3.500 Millions lent and advance by SIDBI to the company together with interest, further interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company to the respective charge holder in terms of the Loan Agreements(s) dated 08.09.2004 between the company of the One part and SIDBI of the other part.

 

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

Whole the movable properties (save and except book debts) of the company purchased out of the loan / limit sanctioned by SIDBI. and

 

Whole of the immovable properties of the company situated at Plot No. B-III, Focal Point, Phase I, Mohali, Distt. Ropar admeasuring 5833.33 sq. yds. Owned and held by the company along with building thereon constructed more particularly described in the schedule hereunder.

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

The charge operates as first charge to secure the due repayment and discharge by the company to SIDBI of its Term Loan of Rs. 3.500 Millions together with the interest, further interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company under the Loan Agreement

 

The company has under taken to keep the hypothecation goods in marketable and good condition at its own costs and to insure the same in the joint names of the Company and SIDBI

 

All the goods hypothecated and all realization and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of SIDBI

 

The security created under the said Deed of Hypothecation is to be a continuing security.

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

Small Industrial Development bank of India, SIDBI Towers, 15, Ashoka Marg, Lucknow.

6)Date  and brief description of instrument modifying the charge

On 8th September, 2004 no instrument was executed. Mortgage by deposit of title deeds by way of constructive delivery with PFC was created by the Company in favour of SIDBI byway of second charge in respect of the immovable properties of the company described in the schedule annexed hereto as security, inter-alia, for the due repayment and discharge by the company to SIDBI of its term loan of Rs. 3.500 Millions as per its loan agreement /letters of intent /letters of sanction together with interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company to SIDBI.

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.

SIDBI term loan of Rs. 3.500 Millions agreed to be lent and advanced by SIDBI to the company together with the interest, further interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company to SIDBI in term Loan Agreement /Letter of intent /Letter of sanction, as amended from time to time.

 

Website details attached:

 

Subject is a metal engineering and automotive components manufacturing facility based at Chandigarh, India. Specializing in copper and brass radiators for all types of tractors and trucks, they are the OEM manufacturers of sheet metal pressing products for many reputed automotive brands.


With indigenous designing and testing facilities they also custom manufacture products as required by the clients.

The raw material used is of the highest class and all material is certified by many testing labs worldwide.

 

 FACILITIES

 

Located in one of the best Industrial locations in northern India, subject houses the best machines for its production units. Each member of their team pays special attention to quality.


They test all their products using state-of-the-art and world standard testing parameters.

 

 

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. 40.88

UK Pound

1

Rs. 82.58

Euro

1

Rs. 55.79

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

45

 

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