MIRA
INFORM REPORT
|
Report Date : |
14.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
EASTERN ELECTROLYSER LIMITED |
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Registered Office : |
H Block New Asiatic Building, Connaught Place, New Delhi – 110001 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.05.1987 |
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Com. Reg. No.: |
028043 |
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CIN No.: [Company
Identification No.] |
U32109DL1987PLC028043 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE03443G |
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PAN No.: [Permanent
Account No.] |
AAACE1390E |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Control Panels, Gas Holders and Rectifier Systems. |
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 66920 |
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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 and reputed company having
satisfactory track. Directors are reported as experienced, respected and
resourceful industrialist. Their trade relations are fair. Financial position
is good. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
H Block New Asiatic Building, Connaught Place, New Delhi – 110001,
India |
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Tel. No.: |
91-11-23721389/ 51513717 |
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Fax No.: |
91-11-23322300/ |
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E-Mail : |
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Factory : |
Churchgate, Mumbai, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Chintan Tiwari |
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Designation : |
Director |
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Address : |
8-A, Sector -15A, Noida, District Gautam Buddha Nagar, Uttar Pradesh,
India |
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Date of Birth/Age : |
01.04.1952 |
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Date of Appointment : |
20.05.1987 |
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Email : |
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Name : |
Mr. Suhas Bhasin |
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Designation : |
Whole Time Director |
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Address : |
30, Balbir Appartments, PKT: A-6 Paschim Vihar, New Delhi – 110057,
India |
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Date of Birth/Age : |
05.09.1962 |
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Date of Appointment : |
01.04.2004 |
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Email : |
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Name : |
Mrs. Som Tiwari |
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Designation : |
Director |
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Address : |
A-12, Opp. A-11/6, Vasant Vihar, New Delhi, India |
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Date of Birth/Age : |
25.10.1925 |
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Date of Appointment : |
30.09.2004 |
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Name : |
Mr. Ayman G. Monged |
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Designation : |
Director |
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Address : |
Wilson Port Road, Toronto, Ontario, Canada |
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Date of Birth/Age : |
23.07.1962 |
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Date of Appointment : |
29.09.2001 |
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Name : |
Mr. Alexander Kyle Staurt |
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Designation : |
Director |
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Address : |
52 Binscarth Road, Toronto Canad |
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Date of Birth/Age : |
05.10.1924 |
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Date of Appointment : |
29.09.2001 |
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Name : |
Mr. Andrew Thomas |
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Designation : |
Director |
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Address : |
42, Kings Garden Road, Toronto, Canada |
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Date of Birth/Age : |
18.06.1962 |
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Date of Appointment : |
29.09.2001 |
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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Mr. J B Dada Chanji |
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200 |
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Mr. R C Tiwari |
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100 |
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Mrs. Chetna Jalan |
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100 |
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Mr. C R Dua |
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200 |
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Mr. Ramnik Gupta |
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100 |
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Mr. K K Mishra |
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100 |
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Mr. Chintan Tiwari |
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206617 |
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The Electrolyser |
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215883 |
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Total |
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423300 |
(As on 31.03.2007)
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Category |
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Percentage |
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Director or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Control Panels, Gas Holders and Rectifier Systems. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
75 |
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Bankers : |
Not Available |
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Financial Institution : |
3i Infotech Trusteeship Services Limited 6th Floor, Akruti Centre Point, MIDC Central Road, Next to
Marol Telephone Exchange, Andheri (East), Mumbai – 400093, Maharashtra, India CIN : U72900MH2001PLC132441 Email : Madhura.gangal@3i-itsl.com |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
N K Lodha Chartered Accountant |
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Address : |
12, Bhagat Singh Marg, New Delhi – 110001, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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423300 |
Equity Shares |
Rs.10/- each |
Rs.4.233 Millions |
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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 |
4.233 |
4.233 |
4.233 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
12.497 |
10.792 |
8.453 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
16.730 |
15.025 |
12.686 |
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LOAN FUNDS |
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1] Secured Loans |
0.695 |
0.896 |
0.505 |
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2] Unsecured Loans |
4.125 |
1.561 |
1.602 |
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TOTAL BORROWING |
4.820 |
2.457 |
2.107 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.064 |
0.030 |
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TOTAL |
21.550 |
17.546 |
14.823 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2.931 |
3.104 |
2.445 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
1.780 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
6.583
|
1.036 |
1.855 |
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Sundry Debtors |
17.108
|
2.377 |
2.748 |
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Cash & Bank Balances |
3.692
|
3.118 |
6.138 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
8.506
|
14.110 |
6.033 |
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Total
Current Assets |
35.889
|
20.641 |
16.774 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
12.894
|
3.318 |
3.260 |
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Provisions |
6.156
|
2.881 |
1.136 |
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Total
Current Liabilities |
19.050
|
6.199 |
4.396 |
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Net Current Assets |
16.839
|
14.442 |
12.378 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
21.550 |
17.546 |
14.823 |
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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 |
59.921 |
29.138 |
22.131 |
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Other Income |
0.163 |
0.262 |
3.394 |
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Total Income |
60.084 |
29.400 |
25.525 |
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Profit/(Loss) Before Tax |
6.844 |
17.769 |
14.768 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
6.844 |
17.769 |
14.768 |
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Export Value |
3.854 |
12.775 |
11.657 |
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Expenditures : |
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Raw Material Consumed |
3.404 |
3.496 |
1.803 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
30.609 |
4.383 |
5.273 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
4.207 |
2.975 |
3.045 |
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Managerial Remuneration |
1.059 |
0.000 |
0.000 |
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Payment to Auditors |
0.057 |
0.056 |
0.032 |
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Interest |
0.401 |
0.232 |
0.063 |
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Insurance Expenses |
0.219 |
0.070 |
0.035 |
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Power & Fuel |
0.038 |
0.045 |
0.039 |
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Depreciation & Amortization |
0.599 |
0.374 |
0.467 |
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Other Expenditure |
12.647 |
0.000 |
0.000 |
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Total Expenditure |
53.240 |
11.631 |
10.757 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
11.39
|
60.44 |
57.86 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.42
|
60.98 |
66.73 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
17.63
|
74.83 |
76.84 |
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Return on Investment (ROI) (PBT/Networth) |
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0.41
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1.18 |
1.16 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.43
|
0.58 |
0.51 |
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Current Ratio (Current Asset/Current Liability) |
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1.88
|
3.33 |
3.81 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U32109DL1987PLC028043 |
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Name of the
Company |
EASTERN ELECTROLYSER LIMITED |
|
Address |
H Block New Asiatic Building, Connaught Place, New Delhi – 110001,
India |
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This form is for |
Creation of charge |
|
Type of Charge |
Book Debts Movable Property
(not being pledge) Entire Current
Assets |
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Particulars of
the charge holder |
3i Infotech
Trusteeship Services Limited 6th
Floor, Akruti Centre Point, MIDC Central Road, Next to Marol Telephone
Exchange, Andheri (East), Mumbai – 400093, Maharashtra, India U72900MH2001PLC132441 |
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Nature or
description of the instrument(s) creating or modifying the charge |
Deed of Hypothecation
executed by Eastern Electrolyses in favour of 3i Infotech Trusteeship
Services limited |
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Date of the
instrument creating or modifying the charge |
07.01.2008 |
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Amount secured by
the charge |
Rs.22.500
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interests: Cash Credit 2.50%
p.a. below the sum of I-BAR Inland Bills
Purchased Discounted 1.8% p.a. below the sum of I-BAR. IBAR is 15.75% p.a.
Term Premia is (0.20) % and applicable rate is 13.75% above. Overdue Interests
2% p.a. and 21.50% p.a. from the date of purchases of the bill Bank Guarantee
Commission 1.25% p.a. SWIFT/ Comm. Ch. Rs.500/- per guarantee Correspondent
bank charges, minimum commission Rs.500/- per guarantee. Counter Guarantee:
Commission Rs.500/- per Guarantee. Minimum Commission Rs.500/- per Guarantee Terms of Repayments: Cash Credit
(Hypothecation) 12 months (07.06.2007) Inland Bills
Purchased Discounted in case of DA bills usance not exceeding 90 days Bank Guarantee 12
months (07.06.2007, BG Tenor Maximum period of BG (including claim period, if
any to be restricted to 36 months, Counter Guarantee 3 months Margin: Cash Credit
(Hypothecation) Inventory –
Uniform Margin of 25% against all components of inventory. Book Debts Cover
Period 90 days, margin: 25% Inland Bills
Purchased/ Discounted Nil Bank Guarantee
(BG) Cash Margin: Guarantee Covering disputed Liabilities – 100% Financial
Guarantee 10% performance Guarantee 10% Counter Guarantee
Nil Extent and operation of the charge: Exclusive charge
favour of the bank by way of hypothecation of the company entire stocks of
raw materials, semi finished and Finished goods. Consumable stores and such
other moveable including book debts, bills whether documentary or clean,
outstanding monies, receivables, both present and future. First charge on
the fixes assets of the company except land and building. |
|
Short particulars
of the property charged (including location of the property) |
Exclusive charge
favour of the bank by way of hypothecation of the company entire stocks of
raw materials, semi finished and Finished goods. Consumable stores and such
other moveable including book debts, bills whether documentary or clean,
outstanding monies, receivables, both present and future. First charge on
the fixes assets of the company except land and building. |
|
Particular of the
present modification |
NA |
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 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
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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 |
|
54 |
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 |
|