MIRA
INFORM REPORT
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Report Date : |
14.09.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANTHI GEARS LIMITED |
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Registered Office : |
304-A,
Shanthi |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.07.1972 |
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Com. Reg. No.: |
18-649 |
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CIN No.: [Company
Identification No.] |
L29130TZ1972PLC000649 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS03147E |
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PAN No.: [Permanent
Account No.] |
AADCS06922 |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the stock exchanges. |
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Line of Business : |
Manufacturers and Marketers of Gears, Gear Boxes and Geared Motors. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 5261200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair general financial position is satisfactory. 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 / Head Office : |
304-A,
Shanthi |
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Tel. No.: |
91 422
2273722 – 34 |
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Fax No.: |
91
422 2273884 & 85 |
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E-Mail : |
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Website : |
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Area : |
Owned
– 31653 sq. fts. |
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Factory : |
Unit A 304-A, Telephone : +91 422 2273722 to 34 Fax : +91 422 2273886 Email : textilegears@shanthigears.com Area : Owned – 31653 sq. fts. B Unit 304-F, Telephone : +91 422 2273722 to 34 Fax : +91 422 2273886 Area : 57524
sq. fts C Unit Engineering Division Telephone : +91 422 2360687, 2360571, 2360253, 2360254, 2360987 Fax : +91 422 2360987 Area :
1069398 sq. fts D Unit S. F. No. 23, K. Krishnapuram,
Kamanaickenpalayam, Palladam - 641 658 Telephone : +91 4255 266302, 266772,
266771, 266310 Area :
3080782 sq. fts. E Unit 2249, A-1, Telephone : +91 422 2573088 & 89 Fax : +91 422 2575213 Area :
393195 sq. fts F Unit 26, Telephone : +91 422 2687310,
2687410, 2687160, 2687944 Area :
250906 sq. fts |
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International
Office - |
Aachener
Str. 55/57,41061 |
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Tel.
No.: |
49
2161 2472393 |
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Fax
No.: |
49
2161 2472394 |
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E-Mail
: |
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Regional
Offices and Branches in |
Ahmedabad F-50, Rudrax Complex II, Near Tricampura Patiaya, G.I.D.C Phase III, Vatva Ahmedabad - 382445 Telephone : +91 079 30903099 No.612,
45th Cross, 8th
Block, Jayanagar, Telephone
: +91 80 26633818, 26341303, 26544013 Fax :
+91 80 26654169 E-mail :sglblr@bgl.vsnl.net.in 337-340,
3rd floor, Telephone
: +91 265 2363154, 2363219 Fax
: +91 265 2363208 E-mail
: sglbarad1@sancharnet.in Chennai No.157,
1st Floor, Chennai
- 600 001 Telephone
: +91 44 25342404, 25359492 Fax
: +91 44 25341234 E-mail
: sglmds@vsnl.com No.
6, Local Shopping Centre, Chopra House, Karampura
(Behind Milan Cinema), Telephone
: +91 11 25442335, 25432113 Fax
: +91 11 25116158 E-mail
: sgldel@del3.vsnl.net.in,
sgldel@ndc.vsnl.net.in Dindigul H1/H2,
58, R.M
Colony, Dindigul
- 624001 Telephone
: +91 451 2460564 Shanthi
Gears Limited, Plot
No. 72, Ground Floor, New
Vasavi Nagar Colony, Kharkhana, Secunderabad
- 500 015 Telephone
: +91 40 27744041, 27744042 Fax :
+91 40 27729059 E-mail
: sglhyd@hd2.dot.net.in Kolkata 20H,
Ground Floor, Kolkata
- 700 019 Telephone
: +91 33 24409261 Fax :
+91 33 24409261 E-mail
: sglcal@vsnl.net Door
No.11, Pandiyan Nagar, Thirunagar, Telephone
: +91 452 2482564 , 2484561 Fax : +91 452 2482614 Email
: sglmdu@sancharnet.in Mumbai No.
222, " Road
No. 2, Sundar Nagar, Kalina, Santacruz (E), Mumbai
- 400 098 Telephone
: +91 22 26661088, 26665115, 26663800, 26661201, 26664567, 26664909 Fax :
+91 22 26662349 E-mail
: sglbom@bom3.vsnl.net.in Pune Shop No.7-392/393-2 Kunalpuram, (opp. Atlas Capco), Phugewadi, Pune - 411 012 Telephone : +91 20
27148196, 30960578 E-mail
: sglpune@sancharnet.in 28,3rd Floor, Behind Indian Coffee House, Telephone : +91 771
3207208, 3123651 E-mail
: sglrpr@sify.com Shop No. : 12, First Floor, J.B.Wing, Mangalwari Commercial Complex, Sadar, Telephone : +91 712
3954047 |
DIRECTORS
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Name : |
Mr.
P. Subramanian |
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Designation : |
Chairman and Managing Director |
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Qualification : |
L. M. E., P. D. Prod. E |
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Address : |
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Age : |
63 years |
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Experience : |
41 years |
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Date of Appointments: |
01-07-1972 |
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Name : |
Mr.
P.N. Gopal |
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Designation : |
Director
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Address : |
1608,
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Age : |
66
years |
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Qualification : |
B. E.
FIE, Chartered Engineer |
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Date of Appointment : |
17/03/1986 |
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Name : |
Dr.
D. Padmanaban |
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Designation : |
Director
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Address : |
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Age : |
52
years |
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Qualification : |
B.
Com, M. B. A. Ph. D MCMI (U. K), MIMA ( |
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Name : |
Mr.
M. J. Vijayaraaghavan |
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Designation : |
Director
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Address : |
34-A,
K. G. Layout, |
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Age : |
73
years |
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Qualification : |
FCA,
Chartered Accountant |
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Date of Appointment : |
31/10/2001 |
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Name : |
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Designation : |
Whole time Director |
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Address : |
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Qualification : |
B. B. M. |
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Age : |
31 years |
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Experience : |
10 years |
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Date of Appointments: |
05/01/1996 |
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KEY EXECUTIVES
|
Name : |
Mr.
C. Subramaniam |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding
of promoter and promoter group |
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Indian |
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Individuals /
Hindu Undivided Family |
2868256 |
35.52 |
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Central
Government / State Government |
-- |
-- |
|
Bodies Corporate |
688000 |
0.85 |
|
Financial
Institution / Banks |
-- |
-- |
|
Any Other - Trust |
7400000 |
9.16 |
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Sub Total
(A)-1 |
36776256 |
45.53 |
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Foreign
|
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Individuals (Non
Resident Individual Foreign Individuals) |
-- |
-- |
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Bodies Corporate |
-- |
-- |
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Institution |
-- |
-- |
|
Any Other - Trust |
-- |
-- |
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Sub Total (A)-2 |
-- |
-- |
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Total
Shareholding of Promoter and Promoter Group (A)= (A)-1+ (A)-2 |
36776256 |
45.53 |
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Public Shareholding |
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Institutions |
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Mutual Funds/UTI |
5937721 |
7.35 |
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Financial
Institutions / Banks |
7000 |
0.01 |
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Central Government
/ State Government (5) |
-- |
-- |
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Venture Capital
Funds |
-- |
-- |
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Insurance
Companies |
7684985 |
9.51 |
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Foreign
Institutional Investors |
124090 |
0.15 |
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Foreign Venture
Capital Investors |
-- |
-- |
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Any Others |
-- |
-- |
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Sub – Total
(B)-1 |
13753796 |
17.03 |
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Non-Institutions |
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Bodies Corporate |
4204633 |
5.21 |
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Individuals |
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Individuals
shareholder holding nominal share capital up to Rs. 1 Lakh |
22122945 |
27.39 |
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Individual shareholders
holding nominal share capital in excess of Rs.1 lakha |
3918586 |
4.85 |
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Any Other |
-- |
-- |
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Sub
– Total (B)-2 |
30246163 |
37.44 |
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Total Public
Shareholding (B) = (B)1 + (B)2 |
43999959 |
54.47 |
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Grand Total
(A) + (B) |
80776215 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Marketers of Gears, gear Boxes and Geared Motors. |
GENERAL INFORMATION
|
Customers : |
End
Users and OEM’s
Sulur
Railway, Tel
No.: 91-422-2360884/2360640/2360641 Fax
No. : 91-422-2360215
Elgi
Industrial Complex Singanallur,
Tamil
Tel
No.: 91-422-2589555 Fax
No. : 91-422-2573697
Global
Engineering Centre Tel
No. : 91-20-27146256 Fax
No. : 91-20-27146250
Maneja, Vadodara – 390 013, Tel
No. : 91-265-637297/637298/640764 Fax
No. : 91- 265- 649669 / 638955 |
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No. of Employees : |
877 |
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Bankers : |
Ř
State Bank of Ř
HDFC Bank Limited Ř
IDBI Bank Limited Ř
Axis Bank Limited Ř
The South Indian Bank Limited Ř
The Ř
The Bank of Ř
The Toronto-Dominion Bank |
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Banking Relations : |
Satisfactory
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Auditors : |
˛
S. Lakshminarayanan Associates Chartered
Accountant ˛
Internal Auditor Shri
T Raghunathan |
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Associates/Subsidiaries : |
Shanthi
Sales Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
80776215 |
Equity Shares |
Rs.10/- each |
Rs.807.762 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
80.800 |
78.818 |
78.035 |
|
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2] Share Application Money |
0.0000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1234.500 |
859.046 |
622.488 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1315.300 |
937.864 |
700.523 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
829.000 |
603.577 |
505.088 |
|
|
2] Unsecured Loans |
357.700 |
601.060 |
44.439 |
|
|
TOTAL BORROWING |
1186.700 |
1204.637 |
549.527 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
98.436 |
64.467 |
|
|
|
|
|
|
|
|
TOTAL |
2502.000 |
2240.937 |
1314.517 |
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|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
1693.900 |
1132.252 |
763.068 |
|
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Capital work-in-progress |
131.900 |
86.451 |
38.615 |
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
536.500
|
476.420 |
432.197 |
|
|
Sundry Debtors |
252.000
|
236.178 |
142.372 |
|
|
Cash & Bank Balances |
222.600
|
487.008 |
78.124 |
|
|
Other Current Assets |
0.000
|
3.316 |
2.362 |
|
|
Loans & Advances |
179.200
|
137.128 |
94.363 |
|
Total
Current Assets |
1190.300
|
1340.050 |
749.418 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
417.100
|
317.816 |
236.584 |
|
|
Provisions |
97.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
514.100
|
317.816 |
236.584 |
|
|
Net Current Assets |
676.200
|
1022.234 |
512.834 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2502.000 |
2240.937 |
1314.517 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2279.700 |
1629.939 |
1309.012 |
|
|
Other Income |
61.100 |
|
|
|
|
Total Income |
2340.800 |
1629.939 |
1309.012 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
534.200 |
430.919 |
306.618 |
|
|
Provision for Taxation |
175.600 |
150.340 |
115.389 |
|
|
Profit/(Loss) After Tax |
358.600 |
280.579 |
191.229 |
|
|
|
|
|
|
|
|
Export Value |
NA |
91.171 |
62.075 |
|
|
|
|
|
|
|
|
Imports Value |
NA |
358.610 |
247.137 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
119.800 |
94.100 |
84.800 |
|
|
Administrative Expenses and Selling Expenses |
143.900 |
129.300 |
93.400 |
|
|
Raw Material Consumed |
834.800 |
631.700 |
546.500 |
|
|
Increase/(Decrease) in Finished Goods |
14.200 |
05.400 |
89.600 |
|
|
Interest and Financial Charges |
71.500 |
51.200 |
29.900 |
|
|
Employees Cost |
126.800 |
108.700 |
98.300 |
|
|
Power & Fuel |
65.900 |
67.200 |
61.400 |
|
|
Depreciation & Amortization |
182.300 |
127.100 |
95.800 |
|
Total Expenditure |
1559.200 |
1214.700 |
1099.700 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2007 1st
Quarter |
|
Sales Turnover |
|
|
531.000 |
|
Other Income |
|
|
26.800 |
|
Total Income |
|
|
557.800 |
|
Total Expenditure |
|
|
346.100 |
|
Operating Profit |
|
|
211.700 |
|
Interest |
|
|
13.200 |
|
Gross Profit |
|
|
198.500 |
|
Depreciation |
|
|
52.900 |
|
Tax |
|
|
48.500 |
|
Reported PAT |
|
|
98.700 |
200706 Quarter 1 ---
Notes EPS is Basic Status of Investor Complaints for the quarter ended June
30, 2007 Complaints pending at the beginning of the quarter nil complaints
received during the quarter 01 complaints disposed off during the quarter 01
complaints unresolved at the end of the quarter nil 1. The Unaudited Financial
results were taken on record by the Boards of Directors of the company at their
Board meeting held on July 16, 2007. 2. The companies’ main business is
manufacture of Gears and Gears Products. There are no separate reportable
segments as per accounting standard 17 (AS 17). 3. The Statutory Auditors of
the company have carried out a Limited Review of Unaudited Financial Result for
the quarter ended June 30, 2007. 4. Diluted earning per share has been
calculated taking into consideration entire FFCB as Potential Equity Share as per
accounting standard 20 (AS 20)
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt
Equity Ratio |
|
1.06 |
1.07 |
0.80 |
|
Long
Term Debt Equity Ratio |
|
0.80 |
0.86 |
0.60 |
|
Current
Ratio |
|
1.65 |
1.98 |
1.81 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed
Assets |
|
1.00 |
1.11 |
1.07 |
|
Inventory
|
|
4.50 |
4.06 |
3.84 |
|
Debtors |
|
9.34 |
9.73 |
9.51 |
|
Interest
Cover Ratio |
|
8.47 |
9.41 |
11.25 |
|
Operating
Profit Margin (%) |
|
34.57 |
33.05 |
31.20 |
|
Profit
Before Interest and Tax Margin (%) |
|
26.57 |
26.15 |
24.28 |
|
Cash
Profit Margin (%) |
|
23.73 |
22.13 |
20.72 |
|
Adjusted
Net Profit Margin (%) |
|
15.73 |
15.23 |
13.80 |
|
Return
on Capital Employed (%) |
|
26.08 |
28.40 |
29.82 |
|
Return on Net Worth (%) |
|
31.83 |
34.26 |
30.49 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.71.80 |
|
Low |
Rs.70.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject the
Shanthi gears, which was just the maker of gears for textile machinery
when it was started is now producing gears for industries as wide as process,
power steel, cement, sugar and aviation. The product range extends from gears
for simple applications such as hand-driven jacks to high-tech gears for
supersonic jet aircraft.
The company opened its first factory in 1972 and a decade later it
expanded the product range by start manufacturing worm gearboxes. In the
mid-80's, SGL took the next step and began manufacturing helical and bevel
helical gears. The company has also start producing geared motors
simultaneously in this period.
In 1986, it has completed the project of putting up its own foundry. The
foundry caters to the needs of grey iron and spheroid graphite castings, as
well as non-ferrous ones such as phosphor bronze, aluminium etc. As a part of
backward integration, a forging plant was also commissioned simultaneously. The
company is getting 50% of its business from executing special orders i.e custom
made gears.
In Mar.'92, SGL came out with a rights issue to part-finance the
expansion-cum-modernisation of its plants. Apart from this, the company made a
preferential issue of 0.34 Millions equity shares (premium : Rs 160) to banks and
mutual funds in Sep.'94.
Shanthi gears has a wholly-owned subsidiary 'Shanthi Sales', which looks
after its entire marketing. During the 2004-05, Shanthi Sales Ltd ceased to be
the subsidiary company consequent to the divestment of entire shares held by
the company. The group companies of Shanthi gears are Shanthi Clothsline, a
woven and Knitted garment manufacturing company; Shanthi Constructions, a
infrastructure construction company; Shanthi Precision Industries Ltd (SPL),
(Formerly Loyal Engineering - takeover by Shanthi group in 1998) and SPL was
merged with the company with effect from 1st July 2003 in the exchange ratio of
1:5.
In August 2004 the company sub-divided its equity share face value from
Rs.10/- to Re.1/-. Further the company has issued bonus equity shares for its
shareholders in the ratio of 1:1.
In 2006, The company have state-of-the-art production machines/quality
Control Facilities worth Rs.441.9 millions have been added during the FY
2005-2006 along with our existing battery of Machines. Further, orders for
Machineries worth Rs.374.7 millions are yet to be executed by the respective
suppliers.
Operating Results
The Company has
achieved a turnover of Rs. 1622.898 Millions for the year under review as
against the turnover of Rs. 1217.131 Millions of the previous year showing a
growth of 33.34 %. The other financial parameters have also improved in line
with the sales growth. Barring unforeseen circumstances the directors hope to
achieve satisfactory results for the current year.
Changes in share capital
As
per the approval accorded at the EGM held on 23rd September 2005,
the company ahs issued foreign currency convertible Bonds (FCCBs) for the value
of US $ 10 millions on 14/11/2005. The Bondholder have exercised the option of
conversion of FCCBs into equity shares for the value of US $ 1000000 before 31st
March 2006 and subsequently US $ 1500000 totaling to US $ 2,5 million out of US
$10 million. The company has allotted 783,033 Equity Shares of Re. 1 each
before 31st March 2006 and subsequently 1174549 equity shares of Re.
1 each totaling to 1957 5825 equity shares of Re. 1 each on conversion of
FCCBs. Consequent to changes, the issued subscribed and paid up equity capital
of the company is 79993182 equity shares of re. 1 each
Subject
imports bearing from SKF and exports gears gears boxes, geared motors and gear
assemblies
TRADE REFERENCE:
- Interchange, L.L.C
Tel
No. : 540-825-7030
Fax
No. : 540-825-7037
- David Brown Radicon
Limited
Tel
No. : 44 1484 465757
Fax
No. :44 1484 465589
David
Brown Radico Limited
700/43
Moo 6, Amatanakorn Industrial Estate,
Klongtam
Ru,
Tel
No. : 6638 459044
Fax
No. : 6638 743484
- African Textiles
Manufacturers Limited
Suhail,
Tel
No. 234 064 311074 to 76 / 234 064 635572 / 635671
- Blastomer Products
Limited
Tel
No. : 03-389-2125
Fax
No. 03-389-2230
- Atlas Copco Airpower
N.V.
Industrial
Air Division, A-Gate, Atomiumlaan, 2610
Attn:
Mr. Kris Schrooten
Tel
No. : 32 3 870 1043
Fax
No. 32 3 870 2883
- Total Drive
Transmissions SDN. BHD
No 8, Jalan Anggerik Mokara
31/61,
Tel
No. : 60 3-51226030
Fax
No. : 60 3-51226090
- Wuxi-Atlas Copco
Compressor Company Limited
Tel
No. 0510-5214326
Fax
No. 0510-5215392
- Syncrolift, Inc
Project
Seabird Site Office, A-2 Bungalow, Solaris Chemtech Compound, P. O Binaga 581
307 Karwar (
- ACE Sysmec Pte Limited
51,
UBI Avenue1, #03-20,
Tel
No.:65 6285 0900
Fax
No. : 65 6289 5505
- SKF India Limited
- Samputensili
- Reishauer
- Gleason – Pfauter
Customer
Services
Services offered
» Service and repair of any type
of Gear Boxes / Gear Assemblies.
» Maintenance Contract.
» Surveillance Study.
Purchase Enquiries
Textile Gears textilegears@shanthigears.com
Machine Tools mtd@shanthigears.com
Industrial Gears &
Gear Boxes :
Tamilnadu except Chennai,
Neyveli and Perambalur area sales.cbe@shanthigears.com
Chennai, Neyveli and
Perambalur in Tamilnadu and Pondicheri sales.chennai@shanthigears.com
Andhrapradesh, Karnataka
and Kerala sales.akk@shanthigears.com
Madhyapradesh,
Rajasthan, Haryana,
Punjab,
Kolkatta, Bihar, Orrisa
and
Overseas
Others export@shanthigears.com
Service Enquiries
Engineering Services engineering@shanthigears.com
Metrology Services metrologylab@shanthigears.com
Customer Services customercare@shanthigears.com
Director’s Report
–
OPERATING
RESULTS:
The Company has achieved a Turnover of Rs.2013.523 Millions
for the year under review as against the turnover of Rs.1622.898 Millions of
the previous year showing a growth of 24.07%. The other financial parameters
have also improved in line with the sales growth. Barring unforeseen
circumstances the Directors hope to achieve satisfactory results for the
current year.
CHANGES IN SHARE CAPITAL:
During the year under review, the Company has allotted
1,957,582 Equity Shares of Re.1 each upon conversion of FCCBs for the value of
US$2.5 Millions. Consequent to changes, the Issued, Subscribed and Paid up
Equity Capital of the Company is 80,776,215 Equity Shares of Re.1 each.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industry Structure and Developments:
Industrial activities throughout the year (2006-07) have been generally good
with the demands of our products registering continuous upward trend. In order
to cope up with the mounting pressure for production, Machineries worth
Rs.651.400 millions, as under among others, have been added during the
year:
(a) SHW CNC Universal Machining Centre UF6L.
(b) Reishauer CNC Gear Grinding Machine RZ400.
(c) Samputensili Gear Profile Grinding Machine S375G.
(d) Gleason Pfauter CNC Profile Grinding Machine P400G
(e) Gleason Pfauter CNC Gear Shaping Machine PSA 500 & P800/1200
ES.
(f) Mazak Horizontal Machining Centre FH8800 and FH 10800.
(g) Haas Vertical Machining Centre Model VF3-SS.
(h) Coordinate Measuring Machine & Gear Inspection Centre Leitz Model
PMM-C24-16-10.
(i) Studer Internal & Face Grinding Machine Model S151.
(j) Wenzel CNC Gear Measuring Machine Model WGT 350
As indications are, the demand requirement for the year 2007-08 is also
in the same scale of increase like that of 2006-07. Actions are on place to
streamline and optimize the entire activities so that the Company does not fall
behind in terms of the expected market requirements.
Opportunities
and Threats:
Because of the industrial boom, there has been very good
demand for our products from every user industries. Foreign buyers are also
looking upon
In case of industry deceleration, there are chances of demand slow down
and consequent glut. Rise in prices of Steel particularly Nickel / Chromium /
Molybdenum bearing Steel have been a continuous concern. Attrition and shortage
of trained manpower could also cause as a serious restraining factor.
Outlook:
As the Company enjoys very good reputation for top quality at competitive
prices with timely deliveries, they continue to be the preferred supplier
(first preference) of all major customers. They have been living up to their
expectations through thick and thin. As such, the prospects for the year
2007-08 are bright.
Discussions
on the financial performance with respect to operational performance:
During the year, the Company has achieved a sales turnover of Rs.2013.523
Million as compared to Rs.1622.898 Million of the previous year. The Profit
After Tax (PAT) of the current Financial Year adding extraordinary Income is
Rs.358.577 Million as against Rs.280.579 Million of the previous year.
FIXED ASSETS
v
Land
v
Building
v
Plant and Machinery
v
Tools and Equipments
v
Electrical Equipments
v
Furniture and Fittings
v
Office Equipments
v
Computers
v Vehicles
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.40.47 |
|
|
1 |
Rs.81.07 |
|
Euro |
1 |
Rs.56.17 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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/normal. |
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 |
|