MIRA INFORM REPORT
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Report Date : |
15.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
DEEPAK FASTENERS LIMITED |
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Registered Office : |
E – 536, Phase VI, Focal Point, Ludhiana, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.11.1990 |
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Com. Reg. No.: |
16-10832 |
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CIN No.: [Company Identification No.] |
U28991PB1990PLC010832 |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers and Exporters of Fasteners, Farm Parts, Hex Bolts and
Nuts |
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 750000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well and established and reputed company having fine
track. Financial position is good.
Payments are correct and as per commitments. The Company is doing well. It can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
E – 536, Phase VI, Focal Point, Ludhiana, Punjab, India |
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Tel. No.: |
91-161-2774401 |
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E-Mail : |
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Corporate Office : |
4th Floor, First Mall, The Mall, Ludhiana
– 141001, India Tel : 91-161-3911111 CHENNAI OFFICE EGA Trade Centre, Tel : 91-44-26612389,
MUMBAI OFFICE C-5/103, Shree Complex-III, Tel. : 91-251-27902210, 2311697 |
DIRECTORS
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Name : |
Mr. Deepak Kalra |
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Designation : |
Director |
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Address : |
600/13A, Sagar Street, Civil Lines, Ludhiana 141003, Punjab, India |
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Date of Appointment : |
20.12.2006 |
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Name : |
Mr. Sanjeev Kalra |
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Designation : |
Director |
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Address : |
600/13A, Sagar Street, Civil Lines, Ludhiana 141003, Punjab, India |
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Date of Birth/Age : |
13.03.1964 |
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Date of Appointment : |
20.12.2006 |
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Name : |
Mr. Deepak Kalra |
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Designation : |
Director |
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Address : |
600/13A, Sagar Street, Civil Lines, Ludhiana 141003, Punjab, India |
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Date of Birth/Age : |
09.05.1966 |
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Date of Appointment : |
12.11.1990 |
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DIRECTORSHIP IN OTHER COMPANIES: |
CIN No.: L00000PB2002PLC024934 DFL International Limited CIN No.: L45202PB1997PLC019742 Shree Ganesh Jewellers Limited CIN No.:L72200PB2000PLC023610 Deepak Infosys Limited CIN No.: L18101PB1997PLC019743 Deepak Fibres Limited CIN No.: L28991PB1995PLC016024 Kailash Impex Limited |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 30.09.2005]
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Names of Shareholders |
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No. of Shares |
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Kailash Kalra |
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163000 |
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Sanjeev Kalra |
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163000 |
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Deepak Kalra |
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163000 |
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Prem Kalra |
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10000 |
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Mona Kalra |
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10000 |
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Monika Kalra |
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10000 |
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Ajay Sharma |
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100 |
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Equity Share
Break-up [As on 31.03.2007] |
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Percentage of
Holding |
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Directors or relatives of the Directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Fasteners, Farm Parts, Hex Bolts and
Nuts |
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Products : |
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GENERAL
INFORMATION
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Suppliers : |
Ř Atma Ram Mela
Ram Steels Private Limited Ř Saeco Steel
Rolling Mills Ř Easy Tours &
Cargo Private Limited Ř Mittal Packing
Stores Ř Durga Chemical
Agency Ř Bombay Motor
Company Ř Birdi Carbide
Dies Ř Deol Enterprises Ř NBC Industrial Ř R. K. Stamp
Makers Ř Star Polyfab Ř Devi Power
Private Limited Ř L. K. Sales Ř Vijay Shanker
Chandak & Company Ř Nitin Bag Store Ř H. K. Steel
Industrial Ř Manjit Metal
Works. Ř Dutta
Enterprises Ř Indo Mobil
Limited |
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Customers : |
Ř Beskal S. A.
Greece Ř Mitwali Steel
Products Company Ř B. T. Steels
Limited Ř Bremick Private
Limited Ř ABU Dhabi
Oilfield Supply Center Ř Euro Hardware
Limited Ř Karela State
Electricity Board Ř Punj Lloyed
Limited Ř Bharat Heavy
Electrical Limited Ř Kochi Refineries
Limited Ř Alabatain
Industrials Company Ř Serco Ryan
Limited Ř Stokvis Trading
B .V. Ř Rajindera Kumar
& Company |
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No. of Employees : |
500 |
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Bankers : |
Ř State Bank of
India Ř ICICI Bank
Limited |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rakesh Goel and Associates Chartered Accountants |
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Address : |
1st Floor, Opposite Public Market, Overlock Road, Ludhiana
141003, Punjab, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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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 |
Value |
Amount |
|
829350 |
Equity Shares |
Rs. 10/-
each |
Rs. 8.293
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
8.293 |
7.891 |
5.191 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
180.322 |
151.883 |
129.654 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
188.615 |
159.774 |
134.845 |
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LOAN FUNDS |
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1] Secured Loans |
172.210 |
129.502 |
92.847 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
172.210 |
129.502 |
92.847 |
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DEFERRED TAX LIABILITIES |
1.636 |
1.890 |
0.000 |
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TOTAL |
362.461 |
291.166 |
227.692 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
29.991 |
26.177 |
23.786 |
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Capital work-in-progress |
49.134 |
11.588 |
0.000 |
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INVESTMENT |
110.324 |
105.660 |
105.660 |
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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 |
208.430
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148.216 |
80.693 |
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Sundry Debtors |
72.728
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72.039 |
87.288 |
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Cash & Bank Balances |
27.778
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18.080 |
5.552 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
8.262
|
27.198 |
17.253 |
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Total
Current Assets |
317.198
|
265.533 |
190.786 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
125.946
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110.652 |
81.183 |
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Provisions |
18.410
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7.170 |
11.397 |
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Total
Current Liabilities |
144.356
|
117.822 |
92.580 |
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Net Current Assets |
172.842
|
147.711 |
98.206 |
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MISCELLANEOUS EXPENSES |
0.170 |
0.030 |
0.040 |
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TOTAL |
362.461 |
291.166 |
227.692 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
620.140 |
556.248 |
464.231 |
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Other Income |
1.875 |
4.266 |
12.878 |
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Total Income |
622.015 |
560.514 |
477.109 |
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Profit/(Loss) Before Tax |
33.914 |
20.967 |
19.925 |
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Provision for Taxation |
13.122 |
9.538 |
7.653 |
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Profit/(Loss) After Tax |
20.792 |
11.429 |
12.272 |
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Expenditures : |
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Raw Material Consumed |
234.909 |
365.059 |
290.264 |
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Purchases made for re-sale |
160.903 |
20.339 |
0.000 |
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Consumption of stores and spares parts |
53.511 |
33.912 |
47.242 |
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Increase/(Decrease) in Finished Goods |
[69.921] |
[79.749] |
[14.990] |
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Salaries, Wages, Bonus, etc. |
92.971 |
24.884 |
23.441 |
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Managerial Remuneration |
3.800 |
3.200 |
1.155 |
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Payment to Auditors |
0.050 |
0.075 |
0.050 |
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Interest |
16.172 |
12.120 |
6.393 |
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Insurance Expenses |
0.430 |
0.566 |
0.553 |
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Power & Fuel |
20.685 |
26.620 |
23.830 |
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Depreciation & Amortization |
4.953 |
4.775 |
3.491 |
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Other Expenditure |
69.638 |
127.746 |
75.755 |
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Total Expenditure |
588.101 |
539.547 |
457.184 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
3.34
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2.03 |
2.57 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.47
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2.03 |
2.57 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.77
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7.18 |
9.29 |
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Return on Investment (ROI) (PBT/Networth) |
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0.17
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0.13 |
0.14 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.67
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1.54 |
1.37 |
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Current Ratio (Current Asset/Current Liability) |
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2.20
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2.25 |
2.06 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges
Report as per Registry
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This Form is for |
Modification of
charge |
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Charge identification number of the charge to be modified |
90180311 |
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Corporate identity number of the company |
U28991PB1990PLC010832 |
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Name of the company |
DEEPAK FASTENERS
LIMITED |
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Address of the registered office or of the principal place of business in India of the company |
E – 536, Phase VI, Focal Point, Ludhiana, Punjab, India |
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Type of charge |
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Particular of charge holder |
State Bank of India Overseas Branch, Ludhiana 141003, Punjab, India |
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Nature of description of the instrument creating or modifying the
charge |
Supplemental Agreement of loan for increase in the overall limit |
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Date of instrument Creating the charge |
11.10.2007 |
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Amount secured by the charge |
Rs. 353.000 Millions |
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Brief particulars of the principal terms an conditions and extent and
operation of the charge |
[a] Rate of interest Rate of interest @ 10% p.a. [b] Terms of repayment Payable on demand [c] Margin As per agreement [d] Extent and operation of the charge Extent of operation 100% [e] Others All others terms and conditions remain the same |
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Short particulars of the property charged |
As per Agreement |
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Date of latest modification prior to the present modification |
04.07.2006 |
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Particulars of the present modification |
An Enhancement of overall limit from Rs. 313.000 Millions to Rs.
353.000 Millions vide C-1-A, Supplemental Agreement of loan for overall
increase in the overall limit read with C-2-A, C-4, C-4-A and C-5. |
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Name of the company |
DEEPAK FASTENERS
LIMITED |
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Presented By |
Sanjeev Kalra, Director |
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1) Date and description of instrument creating the change |
General Agreement for grant of small
industrial advances and hypothecation of movable book debts and other assets
dated 13.07.200 for Rs. 47.500 Millions Ancillary Agreements 1,2,3 and 6 forming
part of the general agreements: 1 dated 13.07.2000 for Rs. 20.000 Millions
2 dated 13.07.2000 for Rs. 47.500 Millions 3 dated 13.07.2000 for Rs. 20.000 Millions 6 dated 13.07.2000 for Rs. 7.500 Millions |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Max outstanding Rs. 47.500 Millions advanced by SBI to the Company,
together with interest, future interest, liquid damages, costs, charges
expenses all other moneys payable by the company to SBI in terms of the loan
agreements dated 13.07.2000 between the company of the one part and SBI of
the other part. |
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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 |
1. All the movable and
immovable assets of all the present and to be acquired in future. 2. all immovable properties to be mortgaged and of all goods, book
debts movables and/or pledged to SBI and all encumbered movable or immovable
property. 3. Equitable mortgage of
commercial shop shopping complex.
First Mall Road Ludhiana measuring 1066 Sq. fts. in the name of the
Company. To create mortgage of the
followings:
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Rate of interest 10% p.a. Payable on demand Extent and operation 100% |
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5) Name and Address and description of the person entitled to the
charge. |
State Bank of India |
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6) Date and brief description
of instrument modifying the charge |
Supplementary General Agreement for grant Industrial advances and
hypothecation of movable book debts and other assets dated 19.08.2004 for Rs.
77.500 Millions. Supplementary Ancillary agreements: forming part of general
agreements. 1. dated 19.08.2004 for Rs. 77.500 Millions Guarantee Agreement
Working Capital Finance dated 19.08.2004 for Rs. 77.500 Millions. Guarantees Agreement Working Capital
Finance dated 19.08.2004 for Rs. 77.500 Millions. |
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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. |
An enhancement of limit from Rs. 67.500 Millions to Rs. 77.500
Millions. Rate of interest 7.1% p.a. All other terms and conditions are same as all registered. |
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered
forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.94 |
|
UK Pound |
1 |
Rs. 78.81 |
|
Euro |
1 |
Rs. 63.05 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|