MIRA INFORM REPORT
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Report Date : |
08.09.2007 |
IDENTIFICATION DETAILS
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Name : |
PARKER MARKWELL INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
202-203, Raheja Centre, Free Press Journal Marg, Nariman
Point, Mumbai- 400 021, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.09.1979 |
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Com. Reg. No.: |
11-21705 |
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CIN No.: [Company
Identification No.] |
U25100MH1979PTC021705 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM1935G |
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PAN No.: [Permanent
Account No.] |
AAACM9967D |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing and marketing of multi spiral and braided
hydraulic hoses to DIN, EN, SAE, IS and BS specifications which are used in
industries such as earthmoving, construction, mining, material handling,
agriculture, marine, transportation and injection moulding. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track records. Directors are reported as experienced, respectable and resourceful businessmen. Their relations are reported as fair. General financial position is good. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
202-203, Raheja Centre, Free Press Journal Road, Nariman Point, Mumbai – 400 021, Maharashtra |
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Tel. No.: |
91-22-22876438/ 39/ 22880764/ 22834169 / 22880763 |
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Fax No.: |
91-22-22876470 |
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E-Mail : |
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Website : |
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Corporate Office : |
5 Wadia House, 2nd Floor, 120, |
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Tel. No.: |
91-22-22150160/22150166/22150423 |
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Fax No.: |
91-22-22150430 |
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E-Mail : |
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Factory: |
26-29, I.D.A., Phase IV, Patancheru, District Medak (Near |
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Tel. No.: |
91-8455-242797/244165 |
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Fax No.: |
91-8455-242708 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rahematullah S. Rahimtoola |
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Designation : |
Director –
Finance |
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Address : |
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Date of Birth : |
31.08.1940 |
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Date of Appointment : |
24.09.1979 |
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Name : |
Mr. Adi Jehangir Marker |
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Designation : |
Director –
Administration |
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Address : |
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Date of Birth : |
03.06.1940 |
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Date of Appointment : |
28.03.1993 |
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Name : |
Mr. Jimmy Jehangir Marker |
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Designation : |
Chairman and
Managing Director |
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Address : |
8/8, Spenta
Apartment, |
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Age : |
12.02. 1953 |
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Qualification : |
B.Com. |
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Experience : |
25 Years |
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Date of Appointment : |
13.12. 1988 |
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Previous Employment: |
Grey Mackenzi and
Company – Sales Executive |
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Name : |
Mr. Farokh Jahangir Marker |
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Designation : |
Whole Time
Director |
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Address : |
10- A, Akash
Ganga, 89, |
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Age : |
24.11. 1938 |
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Qualification : |
B.A., LL.B. |
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Experience : |
38 Years |
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Date of Appointment : |
28.03.1983 |
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Previous Employment: |
Business |
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Mr. Shenaz Neville Munshi |
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Designation : |
Company
Secretary |
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Address : |
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Date of Birth : |
19.12.1947 |
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Date of Appointment : |
14.03.1997 |
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Name : |
Mr. Ashok Pratap |
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Designation : |
Director |
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Address : |
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Date of Appointment : |
18.02.2005 |
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Name : |
Mr. Gregory
Kreuer |
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Designation : |
Director |
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Address : |
Parker Hannififne
Corporation, Fluid Connectors, Asia Pacific 280, Yunquio Road, Jin Qlao Export
Processing Zone, Shanghai 201206, China |
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Date of Appointment : |
18.02.2005 |
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Name : |
Mr. Ramesh Kumar
Bhadauria |
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Designation : |
Managing Director |
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Address : |
7,5 th main Road,
1st cross, Domlur, 2nd Stage, |
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Date of Birth: |
01.02.1957 |
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Date of Appointment : |
03.10.2006 |
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Name : |
Mr. Shrikrishna
Sitaram Bhave |
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Designation : |
Whole Time
Director |
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Address : |
3-4-531,
Narayanguda, Flat No. 401, Sriram Apartments, |
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Date of Birth: |
16.12.1946 |
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Date of Appointment : |
15.03.2006 |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Parker Hanniffin Corporation |
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1531559 |
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Parker Hanniffin International Corporation |
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1 |
Equity Share Break – up ( Percentage of Total Equity )
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Sr.
No. |
Category |
Percentage |
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1 |
Foreign holdings ( Foreign institutional
investor(s), Foreign companie(s), Foreign financial institution(s),
Non-resdident Indian(s) or overseas corporate bodies or Others. |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of multi spiral and braided hydraulic hoses to DIN, EN, SAE, IS & BS specifications which are used in industries such as earthmoving, construction, mining, material handling, agriculture, marine, transportation and injection moulding. |
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Products : |
· Tubes · Pipes · Hoses of Vulcanised Rubber other than hard rubber · Reinforced or otherwise combined any with metal other material · Fittings · Textile Reinforced or otherwise combined only with metal/other materials without fitting – 4009.20 Reinforced or otherwise combined only with textile/other materials without fitting – 4009.30 With Fitting – 4009.50 |
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Brand Names : |
“Spiraflex™”, “Spirablast™", "Markwel",
"MH-174™", "Powerflex™", "MH-Super™",
"Slimline", "Slimpac", etc |
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Exports : |
North and South America, Europe, |
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Imports : |
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Countries : |
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Terms : |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Particulars |
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Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Tubes, pipes, hoses of vulcanised rubber other than hard
rubber, with or without their fittings |
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3600000 |
3600000 |
2031809 |
GENERAL INFORMATION
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Suppliers : |
v
v KAB Engineering Works v Jagrit Polymers Private Limited v
Syno Chem v Taurus Chemical Private Limited v Techno Waxchem Private Limited v Universal Corporation v N C Corporation v Goradia Industries v Kusumgar Corporation |
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Customers : |
v Caterpillar India Private Limited v Bharat Earth Movers Limited v L & T Komatsu Limited v Ashok Leyland Limited v
Ingersoll Rand ( v Volvo India Limited v Escorts Construction Equipment Limited v
Atlas Copco ( v Plasser India Private Limited |
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No. of Employees : |
600 |
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Bankers : |
Ř
Development Co-operative Bank Limited,Mumbai, Ř
Andhra Bank,R. P. Road Branch, Ř
The Zoroastrian Co – Operative Bank, 16,
Horniman Cirecie, |
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Facilities : |
Term Loans from Andhra Bank secured by first charge on factory building and machinery and further guaranteed by the directors of the company of Rs. 40.636 millions |
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Cash Credit from Andhra Bank of Rs. 19.564 millions PRE and Post Shipment credit from Andhra Bank of Rs. 48.263 Millions Factory Facilities from Can Bank Factors Limited - Rs. 36.964 Millions Others Car Finance Companies - Rs. 0.120 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Ř Sharp and Tannan Associates Chartered Accountants Address: 87, Nariman Bhavan, 227, Nariman Point, Mumbai –
400 021, Tel No.:91-22-22022224 / 8857 Fax No.:91-22-22023856 Emal: staby@vsnl.com Ř Price Waterhouse Chartered Accountants Address: 6-3-550, II nd Floor, LB Bhavan, Somajiguda, |
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Associates/Subsidiaries : |
J. K. Maker & Sons Power Marketing |
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Holding Company: |
Parker Haniffinn Corporation |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
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5000000 |
Equity shares |
Rs.10/- each |
Rs.50.000
millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
||
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1531560 |
Equity shares |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.315 |
15.315 |
15.315 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
385.570 |
281.134 |
243.869 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
400.885 |
296.449 |
259.184 |
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LOAN FUNDS |
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1] Secured Loans |
21.436 |
110.715 |
145.549 |
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2] Unsecured Loans |
131.628 |
0.000 |
36.779 |
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TOTAL BORROWING |
153.064 |
110.715 |
182.328 |
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DEFERRED TAX LIABILITIES |
23.288 |
27.064 |
26.427 |
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TOTAL |
577.237 |
434.228 |
467.939 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
290.158 |
246.682 |
267.244 |
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Capital work-in-progress |
35.774 |
22.511 |
0.000 |
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INVESTMENT |
0.008 |
0.008 |
0.182 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
153.709
|
138.907 |
118.947 |
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Sundry Debtors |
127.891
|
115.665 |
153.800 |
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Cash & Bank Balances |
56.811
|
10.367 |
2.090 |
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Other Current Assets |
0.393
|
0.517 |
45.331 |
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Loans & Advances |
48.574
|
46.448 |
62.132 |
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Total
Current Assets |
387.378
|
311.904 |
382.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
135.060
|
132.739 |
125.918 |
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Provisions |
1.021
|
14.223 |
55.869 |
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Total
Current Liabilities |
136.081
|
146.962 |
181.787 |
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Net Current Assets |
251.297
|
164.942 |
200.513 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.085 |
0.000 |
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TOTAL |
577.237 |
434.228 |
467.939 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
789.939 |
879.061 |
641.950 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
789.939 |
879.061 |
641.950 |
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Profit/(Loss) Before Tax |
129.494 |
192.927 |
112.974 |
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Provision for Taxation |
0.000 |
0.000 |
30.543 |
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Profit/(Loss) After Tax |
129.494 |
192.927 |
82.431 |
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Export Turnover: |
530.229 |
495.284 |
0.000 |
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Expenditure: |
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Interest |
9.064 |
14.197 |
0.000 |
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Depreciation |
32.518 |
31.450 |
0.000 |
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Total Expenditure |
660.445 |
673.425 |
529.010 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
16.39
|
21.94 |
12.84
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Net Profit Margin (PBT/Sales) |
(%) |
16.369
|
21.94 |
17.59
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Return on Total Assets (PBT/Total Assets} |
(%) |
18.15
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33.20 |
17.39
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Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.65 |
0.43
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Debt Equity Ratio (Total Liability/Networth) |
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0.72
|
0.86 |
1.40 |
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Current Ratio (Current Asset/Current Liability) |
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2.84
|
2.12 |
2.10 |
LOCAL AGENCY FURTHER INFORMATION
Notes on Accounts:
- During the financial
year Surakhsa division ( LPG Hose Division) of the company was hived – off
on a slump sale basis on 31.01.2005 at an agreed consideration of Rs.
94.420 millions under a Business transfer agreement with Surakhsa Products
Private Limited being the company in which the then director s viz. Mr. Jimmy J.Marker
and Mr. Farokh J. Marker were interested. The consideration for the slump
sale was based on net worth of surakhsa division computed in accordance
with the provision of section 50B of Income Tax act 1961 as certified by
the tax consultants Income Tax WDV being lower than WDV as computed under
the companies Act 1956 on Surakhsa division fixed assets, the resultant
difference I .e., loss of Rs. 0.973 millions has been charged off to the
profit and loss account and shown under Extra ordinary item.
- With effect
from 18.02.05 there has been a change in the management of the company.
The company has been fully acquired on 18.02.2005 by Parker Hanniffin corporation,
- Contigent
Liability
Contigent Liabilities not provided for in the accounts and are disclosed
by way of notes
As at 31.03.2005 As
at 31.03.2004
(Rs.
in millions) (Rs. in
millions)
I) Capital commitments outstanding
5.175
67.523
ii) Bank Guarantees Oustanding
4.317
6.384
iii) Letter of credit Outstanding
34.700 21.899
iv) Claims / Disputed liabilities not
acknowledge as debt:
19.761
23.097
Sales Tax
v) Estimated liability under non fulfillment
of export Obligation
0.220 17.855
under EPCG License
scheme
- Income Tax
assessment are completed up to Assessment Year 2002-2003.
- Sales Tax
Assesssment are completed up to the financial Year 1999-2000.
- The company
revalued its land an d factory building situated at patancheru, Andhra
Pradesh, on 27thmarch 1992. The revaluation resulted in increasing the
values of the said asset by Rs. 4.094 millions the same being reflected as
Revaluation Reserve under the Head Reserve and surplus in the Balance
Sheet.
- the method of
valuation of finished goods has remained the same. The closing stock of
finished goods include Excise Duty of Rs.3.283 millions as on 31.03.05 as
per Accounting Standard – 2of
Closing stock of finished goods includes export materials rejected by a customer at a cost valued Rs. 1.779 millions for which the credit note for sales returns has been issued at Rs. 3.177 millions. The rejected materials is with the customer awaiting shipment. A claim for export material rejection valued at Rs. 3.250 millions from another customer was acknowledged and a credit note for sales return was issued. The material which was in custody of customer, being defective and having no resale value, as a expedient business decision has been written off at cost of Rs. 1.995 millions and not included in the closing stock of finished goods.
- Pre – Production
expenses of Rs. 0.855 millions included under schedule E Fixed Assets in
relation to long length hose project, in the Years 1995-96, is being
written off in ten equal
installments. As on date outstanding balance amount to be written
off is Rs. 0.085 millions.
- In the
opinion of the board, the current assets, loans and advances, have a value
on realization in ordinary course of business, at least equal to the
amount at which they are stated in balance sheet.
- No provision
for scrap has been made as the same has no significant value. However, the
same is accounted for as sale in the year of realization.
- Provision
towards Gratuity liability on actual basis for the year ending 31.03.05
amounting to Rs. 0.937 has been charged to the profit and loss account and
is funded in approved funds. In addition to the above, provision amounting
to Rs. 2.225 millions has been
charged to the profit and loss
account towards gratuity payable on retirement to directors which is paid
to them in subsequent year.
During the year the company has charge to
the profit and loss account an amount of Rs. 11.458 millions towards
superannuation.
A sum of Rs. 7.236 has been provided towards
endowment policies to be paid to eligible employees. Unpaid balance of Rs.
0.821 millions as on 31.03.05 has been paid subsequently.
- No further
Provision towards leave encashment has been made in the accounts since
amount provided up to 31.03.04 is adequate to cover this liability.
- During the
period from 01.04.04 to 14.01.04 company has availed Rs. 0.646 millions
and repaid Rs. 3.196 millions towards deferred sales tax liability. The
balance outstanding liability as on 14.01.04 of Rs15.379 millions has been repaid at
its present value of Rs. 6.828 millions have been payable on expiry of
Fourteen years. Difference of Rs. 8.551 millions saved on early settlement
of liability is reflected under extra ordinary item in the profit and loss
account .
Fixed assets
· Land
· Building
· Plant and Machinery
· Electrical Installation
· Material Handling Equipments
· Miscellaneous Plant Assets
· Dies, Tools and Moulds
· Laboratory Equipment
· Pumps and Fitting
· Vehicles
· Furniture and Fixtures
· Fire Fighting Equipments
· Office Equipments
· Air Conditioners
· Borewell
· Computers
· Pre – Production Costs
·
· Capital WIP Plant and Machinery
|
Name of the
company |
MARKWEL HOSE INDUSTRIES PRIVATE LIMITED |
|
The Zoroastrian
Co –operative Limited – Mumbai Main Office |
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1) Date and description
of instrument creating the change |
Hypothecation of
tangible Moveable Machinery and Plant and Machinery Dated: 02.06.2004 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs.26.300
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 |
Hypothecation by
way of first charge in favour of the bank all tangible moveable machinery and
plant (both present and future) whether installed or not and whether lying
loose or in cases at site or in transit or which may at any time during the
continuance of this security be installed or lying loose or in cases or being
in or upon pr about the borrowers premises and godowns at Hyderabad 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 to the borrower. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest at the rate of 10% per annum or at such rate as may from time
to time be fixed by the bank and notified to the borrower for the term loan
II of Rs. 26.300 millions granted by the bank to the company Margin: 25% |
|
5) Name and
Address and description of the person entitled to the charge. |
The Zoroastrian Co-operative Bank Limited, Mumbai Main Branch,
Zoroastrian Association Building, 16, Horniman Circle, Fort, Mumbai – 400 023 |
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 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.40.71 |
|
|
1 |
Rs.82.26 |
|
Euro |
1 |
Rs.55.663 |
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 |
|