MIRA
INFORM REPORT
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Report Date : |
29.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
THE EIMCO K.C.P. LIMITED |
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Registered Office : |
Ramakrishna Buildings, 239, Annasalai, Chennai, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.09.1967 |
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Com. Reg. No.: |
5550 |
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CIN No.: [Company
Identification No.] |
U27209TN1967PLC005550 |
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IEC No.: |
0488004586 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET00256E |
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PAN No.: [Permanent
Account No.] |
AAACT2962M |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer, Exporter and Supplier of Liquid Solids
Separations, Water and Waste Water Treatment Equipment. |
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 : |
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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 fine track. Trade
relations are reported as fair. Business is active. General financial
position is satisfactory. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Dhansekar |
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Designation : |
Accountants |
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Date : |
24.04.2008 |
LOCATIONS
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Registered Office : |
Ramakrishna Buildings, 239, Annasalai, Chennai, Tamilnadu, INDIA |
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Tel. No.: |
91-44-28555171 / 28555862 |
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Fax No.: |
91-44-855 5863 |
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E-Mail : |
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Website : |
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Factory : |
11A, 3rd Main Road, Industrial Estate, Anbattur, Chennai –
600 058, Tamil Nadu, India |
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Branch Office : |
231, Arun Chambers, J. Dadaji Road, Tardeo, Mumbai - 400 034,
Maharashtra, India |
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Tel. No.: |
91-22-24944030 |
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Fax No.: |
91-22-24954608 |
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E-Mail : |
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Branches : |
Group’s offices in Hyderabad, Mumbai, Cochin, Delhi, Calcutta and
Bangalore |
DIRECTORS
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Name : |
Ms. Irmgard Velagapudi M Rao |
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Designation : |
Chairperson |
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Name : |
Mr. V Kiran Rao |
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Designation : |
Director |
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Name : |
Mr. J Satyanarayana |
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Designation : |
Director |
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Name : |
Mr. V C Unnikrishnan |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Supplier of Liquid Solids Separations,
Water and Waste Water Treatment Equipment. |
GENERAL
INFORMATION
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No. of Employees : |
Around 250 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
Vijaywada, Andhra Pradesh, 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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1,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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600,000 |
Equity Shares |
Rs. 10/- each |
Rs. 6.000 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 |
6.000 |
6.000 |
6.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
31.800 |
23.000 |
18.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
37.800 |
29.000 |
24.600 |
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LOAN FUNDS |
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1] Secured Loans |
27.400 |
23.200 |
15.600 |
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2] Unsecured Loans |
7.400 |
0.000 |
0.000 |
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TOTAL BORROWING |
34.800 |
23.200 |
15.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
72.600 |
52.200 |
40.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.700 |
4.000 |
3.800 |
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Capital work-in-progress |
8.800 |
1.300 |
1.300 |
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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 |
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Inventories |
30.600
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24.200 |
28.300 |
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Sundry Debtors |
71.300
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55.100 |
52.100 |
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Cash & Bank Balances |
3.000
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7.800 |
3.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
16.000
|
4.900 |
3.600 |
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Total
Current Assets |
120.900
|
92.000 |
87.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
53.200
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41.400 |
51.500 |
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Provisions |
8.600
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3.700 |
0.600 |
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Total
Current Liabilities |
61.800
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45.100 |
52.100 |
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Net Current Assets |
59.100
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46.900 |
35.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
72.600 |
52.200 |
40.200 |
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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 |
162.200 |
154.900 |
121.600 |
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Other Income |
1.900 |
2.600 |
3.400 |
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Total Income |
164.100 |
157.500 |
125.000 |
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Profit/(Loss) Before Tax |
14.100 |
7.800 |
5.400 |
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Provision for Taxation |
5.300 |
3.400 |
0.900 |
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Profit/(Loss) After Tax |
8.800 |
4.400 |
4.500 |
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Export Value |
1.215 |
12.482 |
NA |
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Expenditures : |
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Raw
Materials |
18.100 |
19.600 |
21.500 |
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Excise
Duty |
17.200 |
16.200 |
9.000 |
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Power
& Fuel Cost |
2.100 |
2.500 |
1.800 |
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Other
Manufacturing Expenses |
80.200 |
65.500 |
62.600 |
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Employee
Cost |
17.000 |
18.900 |
11.600 |
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Selling
and Administration Expenses |
8.800 |
7.700 |
7.600 |
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Miscellaneous
Expenses |
8.300 |
11.600 |
7.500 |
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Interest
& Financial Charges |
2.300 |
1.300 |
1.100 |
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Depreciation
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1.000 |
0.800 |
0.600 |
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Stock
Adjustments |
[5.000] |
5.600 |
[3.700] |
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Total Expenditure |
150.000 |
149.700 |
119.600 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.87 |
0.72 |
0.58 |
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Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current
Ratio |
1.29 |
1.32 |
1.27 |
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TURNOVER
RATIOS |
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Fixed
Assets |
5.67 |
5.68 |
4.60 |
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Inventory |
5.92 |
5.90 |
4.93 |
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Debtors |
2.57 |
2.89 |
2.73 |
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Interest
Cover Ratio |
7.13 |
7.00 |
5.91 |
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Operating
Profit Margin(%) |
10.73 |
6.39 |
5.84 |
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Profit
Before Interest And Tax Margin(%) |
10.11 |
5.87 |
5.35 |
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Cash
Profit Margin(%) |
6.04 |
3.36 |
4.19 |
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Adjusted
Net Profit Margin(%) |
5.43 |
2.84 |
3.70 |
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Return
On Capital Employed(%) |
26.28 |
19.70 |
19.79 |
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Return
On Net Worth(%) |
26.35 |
16.42 |
21.58 |
LOCAL AGENCY
FURTHER INFORMATION
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Central Sales Tax Registration |
58506 |
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Service Tax Registration |
AAACT2962MST001 |
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VAT/TIN Registration |
33440440472 |
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Excise Registration |
AAACT2962MX |
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Emp PF Reg Number |
TN/7383 |
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Company ESI Reg. Number |
51/18200/66/SF |
FINANCIAL
PERFORMANCE
During the period the Company has received Orders totaling
to Rs.151.300 Millions as compared to Rs.158.528 Millions during the previous year.
The backlog as on 31.03.2007 is Rs.96.897 Millions. From the enclosed Annual
Accounts it may be noted that the income earned from the sale of product and
services by the Company for the year ended 31st March 2007 was
Rs.162.203 Millions as against Rs.154.899 Millions in the previous year. The
Profit was at Rs.13.913 Millions for the year under review as against a profit
of Rs.7.688 Millions for the previous year. After providing for current and
deferred taxation and adjusting for excess provision of previous year, the net
profit for the year was Rs.8.763 Millions to which after adding the brought
forward surplus of Rs.11.022 Millions, the carry forward surplus to the next
year amounted to Rs.19.784 Millions.
The Directors have not recommended any dividend for the Financial Year with a
view to conserve profits.
This Industry is not energy intensive with maximum demand being much below 250
KVA. Consequently there is very little scope of conservation of energy.
Information as per Section 217(2A) of the Companies Act 1956 read with
Companies (Particulars of employees) Rule 1975 and forming a part of Director s
Report for the year ended 31st March 2007 is not applicable as there was no
employee covered by the same.
During the period under review the Company has incurred expenditure in foreign
currency amounting to Rs.2.404 Millions towards foreign travel and import of
components & sugar process chemicals. There are no specific areas in which
the Company has carried out Research and Development.
Shri. P. Subramani was appointed as Additional Director of the Company at the
Board Meeting held on 26.10.2006 to hold office upto the ensuing Annual General
Meeting. Shri. P. Subramani resigned as Director with effect from 09.01.2007.
The Directors wish to place on record their appreciation for the contribution
made by him during his tenure as Director. At the forthcoming Annual General
Meeting Smt. Irmgard Velagapudi M. Rao, Chairperson and Smt. V. Kiran Rao, Vice
Chairperson, retire by rotation and being eligible offer themselves for
re-appointment.
Industrial Relations with Staff and Workers continue to be cordial.
As required by Section 217(2AA) of the Companies Act 1956, the Directors
certify as follows:
i) That in the preparation of the annual accounts the applicable Accounting
Standards have been followed and that there were no material departures
therefrom;
ii) that the Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the Company at
the end of the financial year ended 31st March 2007 and of the profit of the
Company for that year.
iii) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of
the Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
AS PER WEBSITE
Profile
Subject is the supplier of equipment and technology in India for Liquid
- Solid separation and Biological treatment processes. The company's products
and technical services are extensively used in Mineral processing, Chemical
processing, Food processing, Refining, Pulp and paper manufacturing, Municipal
& Industrial water and waste water treatment.
Designs are
tailored to each application by combining technical data base theory with
field, pilot and laboratory trials on specific applications. Mechanical reliability
and ease of maintenance are incorporated into the final product by a mechanical
design team specializing in the product application.
Subject was
launched in the year 1967 as a joint venture company between EIMCO-K.C.P.
Limited, Chennai, India and EIMCO Corporation, USA. In the 1970's, EIMCO
Corporation was taken over by Envirotech Corporation. The joint venture existed
until Baker International, USA took over the Envirotech Corporation, USA in
1984. Eimco-KCP paid a lump sum for the EIMCO drawings and manuals and took
possession of the same updated until 1984, thus becoming a wholly owned
subsidiary of the KCP Limited From 01/04/96 Eimco-KCP Limited has become a
wholly owned subsidiary of KCP sugars and Industries Corporation Limited,
Chennai, India.
Subject has
obtained ISO 9001 certification from LRQA in Feb 1997.
Management
- The Company has a paid - up Capital of Three Million Rupees and an authorized Capital of Ten Million Rupees and is governed by a Board of Directors.
- The day to day operations are looked after by the General Manager assisted by a team of experienced professionals consisting of highly qualified & experienced Chemical and Mechanical Engineers.
- The annual gross earnings of the company are about Rs. 100 - 110 million.
Manufacturing
- Subject has its manufacturing facilities at Ambattur Industrial estate, Chennai.
- Subject also uses the fabrication capacity of K.C.P. sugars and Industries Corporation Limited Workshop at Vuyyuru which is one of the largest Work Shop in India attached to a Sugar factory which has a spare capacity to a tune of 1500 MT of fabricated machinery parts per annum.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.40.14 |
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UK Pound |
1 |
Rs.79.66 |
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Euro |
1 |
Rs.62.92 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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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 |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
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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 |
|
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 |
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