MIRA
INFORM REPORT
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Report Date : |
18.09.2007 |
IDENTIFICATION DETAILS
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Name : |
INDIA LEAF SPRING MANUFACTURING COMPANY PRIVATE LIMITED |
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Registered Office : |
61-A, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.12.1959 |
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Com. Reg. No.: |
01-832 |
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CIN No.: [Company
Identification No.] |
U29220AP1959PTC000832 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDI01078A / HYDI00047F |
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PAN No.: [Permanent
Account No.] |
AAACI4542E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing Automobile Leaf Springs. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 28600 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old
and established company having moderate track. Company’s Profititability is
under severe pressure. It has some accumulated losses. Payments are reported
as slow but correct. The company can be considered normal for small business
dealings at usual trade terms and conditions with slight caution, initially. |
LOCATIONS
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Registered /Sales Office : |
61-A, |
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Tel. No.: |
91-40-27714602 |
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Fax No.: |
91-40-27713076 |
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E-Mail : |
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Website : |
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Factory : |
A-9, Nacharam
Industrial Area, |
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Tel. No.: |
91-40-27171465, 27176991 |
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Fax No.: |
91-40-27173556 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Srichand Chellani |
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Designation : |
Chairman |
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Address : |
Road No. 14, Banjara Hills, |
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Date of Birth/Age : |
25.05.1938 |
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Date of Appointment : |
01.07.1977 |
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Name : |
Mr. Kanaya Chellani |
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Designation : |
Managing Director |
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Address : |
Road No. 14, Banjara Hills, |
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Date of Birth/Age : |
10.11.1939 |
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Date of Appointment : |
01.07.1977 |
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Name : |
Mr. Jaikishan Chellani |
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Designation : |
Whole Time Director |
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Address : |
Road No. 14, Banjara Hills, |
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Date of Birth/Age : |
13.11.1943 |
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Date of Appointment : |
01.07.1977 |
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Name : |
Ms. Pushpa Chellani |
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Designation : |
Director |
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Address : |
Road No. 14, Banjara Hills, |
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Date of Birth/Age : |
10.07.1935 |
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Date of Appointment : |
22.02.1991 |
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Name : |
Mr. Ajit Kumar Chellani |
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Designation : |
Director |
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Address : |
Road No. 14, Banjara Hills, |
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Date of Birth/Age : |
21.01.1931 |
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Date of Appointment : |
01.07.1977 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ms. Sushila Chellani |
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5200 |
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Srichand Chellani – HUF |
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1600 |
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Kanaya Chellani – HUF |
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5900 |
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Ms. Sunita Pillai |
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7290 |
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Ms. Gita Thadani |
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7290 |
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Ms. Kalpana Uberoi |
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2240 |
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Ms. Anjana Chellani |
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1020 |
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Mr. Bharat Chellani |
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3770 |
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Mr. Jaikishan Chellani |
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8489 |
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Mr. Vikram Chellani |
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3666 |
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Bharat Chellani – HUF |
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1713 |
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Vikram Chellani – HUF |
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1856 |
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Ms. Sabima Chellani |
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1000 |
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ISCO Auto Engineers |
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11000 |
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Mr. Kanaya Chellani |
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4960 |
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Ms. Madhu Chellani |
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1060 |
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Ms. Manju Chellani |
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5486 |
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Ms. Pushpa Chellani |
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4130 |
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Mr. Srichand Chellani |
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780 |
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Ms. Sapna Chellani |
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2000 |
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Mr. Vinod Chellani |
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5700 |
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Ms. Amita Uppaluri |
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7290 |
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Mr. Sunil Chellani |
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1079 |
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Ms. Babita Shah |
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4410 |
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Mr. Karan Chellani |
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3180 |
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Mr. Kartik Chellani |
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3180 |
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Names of Shareholders |
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% of
Shareholding |
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Bodies Corporate |
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10.00 |
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Directors and Relatives of Directors |
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90.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing Automobile Leaf Springs. |
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Products : |
J
Automobile Leaf Springs |
GENERAL INFORMATION
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Bankers : |
J
State Bank of
Commercial Branch, Secunderabad, J HDFC Bank Limited Senapati
Bapat Marg, Worli, Mumbai, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Tagore and Company Chartered Accountants |
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Address : |
3-6-293/2/D, Meghacity No. (44) L, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250000 |
Equity Shares |
Rs. 100/- each |
Rs. 25.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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115000 |
Equity Shares |
Rs. 100/- each |
Rs. 11.500 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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11.500 |
11.500 |
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3] Reserves & Surplus |
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0.000 |
7.830 |
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4] (Accumulated Losses) |
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(4.351) |
0.000 |
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NETWORTH |
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7.149 |
19.330 |
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LOAN FUNDS |
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1] Secured Loans |
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30.338 |
32.096 |
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2] Unsecured Loans |
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16.155 |
16.155 |
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TOTAL BORROWING |
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46.493 |
48.251 |
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TOTAL |
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53.642 |
67.581 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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24.679 |
21.740 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.166 |
0.166 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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47.225 |
55.601 |
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Sundry Debtors |
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24.163 |
49.023 |
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Cash & Bank Balances |
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7.098 |
2.377 |
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Loans & Advances |
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5.704 |
5.174 |
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Total
Current Assets |
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84.190 |
112.175 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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54.893 |
66.000 |
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Provisions |
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0.500 |
0.500 |
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Total
Current Liabilities |
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55.393 |
66.500 |
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Net Current Assets |
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28.797 |
45.675 |
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TOTAL |
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53.642 |
67.581 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability/Networth) |
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15.25 |
6.93 |
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Current Ratio (Current Asset/Current Liability) |
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1.52 |
1.68 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
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Presented By |
Jointly by the Company and the Banker |
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1) Date and description of instrument creating the change |
1. General Agreement for small industrial advances and hypothecation of movables, book debts and other assets. 2. Agreement for grant of small industrial advances. 3. Pledge Letter for machinery as collateral security. All dated 22nd April, 1996. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit of Rs. 18.000 millions Medium Term Loan of Rs. 10.500 millions Total amount agreement to Rs. 28.500 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 |
Raw materials, work-in-progress, finished goods, book debts, buildings and machinery and equipments |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest : CC (Hypothecated) – 2.75% over the SBI advance rate with a minimum of 19.25% p.a. Medium Term Loan: 2.25% above the SBI advance rate with a minimum of 18.75% p.a. Margins : 25% on Stocks and 50% on Book Debts. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Commercial Branch,
Secunderabad, |
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6) Date and brief description of instrument modifying the charge |
All dated 27.09.2004. |
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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. |
The existing limits of Rs. 35.500 millions have been enhanced to Rs. 53.000 millions as follows:
Security : 1) Hypothecation of the company’s entire stocks of raw material, stock in process, finished goods, consumable stores and spares and book debts and receivable and other chargeable current assets. 2) Equitable mortgage over the property situated at Plot No. P-14/1, S. No. 66/1 and 64 (Part) IDA Nacharam admeasuring 8.10 acres. Interest : CC – 2.50% over SBAR the present effective rate being 12.75% p.a. with monthly rests. EPC – as stipulated by RBI /Bank from time to time. Commission : LC – as per RBI guidelines. Margins : Raw Materials – 25% Stock in Process – 25% Finished Goods – 25% Book Debts / Receivables – 50% Letter of Credit – 15% cash margin. |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U29220AP1959PTC000832 |
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Name of the company |
India Leaf Spring Manufacturing Company Private Limited |
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Address |
61-A, |
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This Form is for |
Creation of charge |
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Type of Charges |
Hypothecation |
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Particular of the charge holder |
HDFC Bank Limited Senapati
Bapat Marg, Worli, Mumbai, |
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Nature or description of the instrument creating charge |
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Date of the instrument creating charge |
19.04.2006 |
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Amount Secure by the charge |
Rs. 0.791 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Loan repayable in 23 installments and Rs. 0.039 millions in each installment. |
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Description of the property charge whether it is a charge on |
Plant and Machinery |
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Modification charge Charge identification number of the charge to be modified |
-- |
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Date of instrument modifying the charge |
19.04.2006 |
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Particulars of the Property charged |
D.
No. 61-A, Survodaya Complex, M G Rod, Secunderabad, |
As Per Web:
Profile
India Leaf Spring Manufacturing Company Private Limited has been manufacturing Automobiles Leaf Springs for almost 4 decades now. The company was incorporated as a private limited company in 1960, and began its manufacturing activities in August 1962.
The
company is proud to declare that it is certified to the ISO 9002: 1994, and QS
9000 Quality System. Today, the company has establis-hed itself as the leading
automobile Leaf Spring manufacturer in the country. Producing the entire range
of leaf spring assemblies for different kinds of vehicles ranging from light
commercial vehicles to very heavy vehicles, for use in domestic as well as
export markets. ILS also has the capability to manufacture a wide range of
Parabolic Springs used for small trailers to large heavy duty vehicles. India
Leaf Spring strongly believes in continuously delighting its Customers and its
main objective is to be fully committed to Total Customer Satisfaction. This
same message is passed down to every single workman in our company. This main
objective of ours and our sound reputation as a premium spring manufacturer has
made it possible for us to be partners and suppliers to all the plants of Ashok
Leyland and TELCO. The company also markets its products in the Replacement
Market through an established network of dealers and to several State Road
Transport Corporations. Having exported its products to
Products
Leaf Springs and Parabolic Springs. The company produces the entire range of leaf spring assemblies ranging from light commercial vehicles to very heavy vehicles, for use in domestic as well as export markets. ILS also has the capability to manufacture a wide range of parabolic springs used for small trailers to large heavy duty vehicles.
ILS uses a variety of material grades for the manufacture of
springs. Some of the common grades used are BSS EN45A, EN 47,I.S. 65 SI 7,
JU-SUP 9, SUP11A and DIN 50 CRV 4. Even the cross sections being manufactured
are of a wide variety, ranging from 50 mm to 120 mm in width and from 6mm to 30
mm in thickness. Our company manufactures springs as per the design and
specifications laid down by the vehicle manufacturers.
Further to this ILS is equipped with a design department, where various design activities are carried out. Springs are indigenously designed on Latest Finite Element Enginee-ring Softwares (C.A.D), where a detailed analysis of Stiffness Value, Load, Stress, Fatigue life etc is carried out. Only after such detailed analysis does the design team start the development of the prototype. The proto-type is further subject to various stringent tests, before it moves to the stages of Pre-Launch and Regular Production.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.26 |
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1 |
Rs.81.15 |
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Euro |
1 |
Rs.56.28 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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35 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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