MIRA
INFORM REPORT
|
Report Date : |
31.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MALU ELECTRODES PRIVATE LIMITED |
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Registered Office : |
S-111, Ramkrishna Apartment, Schaprunagare, Square, Nagpur-440008,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.09.1990 |
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Com. Reg. No.: |
11-58024 |
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CIN No.: [Company
Identification No.] |
U31200MH1990PTC058024 |
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IEC No.: |
0395058091 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPM00629G |
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PAN No.: [Permanent
Account No.] |
AABCM2306H |
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Legal Form : |
Private Limited Liability
Company |
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Line of Business : |
Subject is
engaged in several businesses such as coal, welding electrodes, paper
industries, manganese processing plants, steel ingots and casting of various
alloy grades. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 190000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. Payments are reported as slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Sanjay Dhame |
|
Designation : |
Chief General Manager |
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Contact No.: |
91-9881732172 |
|
Date : |
26.07.2008 |
LOCATIONS
|
Registered Office : |
S-111, Ramkrishna Apartment, Schaprunagare, Square, Nagpur-440008,
Maharashtra, India |
|
Tel. No.: |
91-712-2760873/ 2767121/ 2778931 |
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Mobile No. : |
91-9822265548 |
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Fax No.: |
91-712-2761315 |
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E-Mail : |
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Website : |
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Area : |
1000 sq. ft ( Owned) |
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Corporate Office : |
Neelkamal, 1249
Central Avenue, Nagpur – 440002, Maharashtra |
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Tel. No.: |
91-712-2767121 |
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Fax No.: |
91-712-2761315 |
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E-Mail : |
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Website : |
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Factory : |
S/4, MIDC, Industrial Area, Hingan Road, Nagpur-440008, Mahararshtra,
India |
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Area : |
10000 sq. ft ( Owned) |
DIRECTORS
|
Name : |
Mr. Punamchand
Ramlal Malu |
|
Designation : |
Director |
|
Address : |
1249, Neelkamal,
Central Avenue, Nagpur – 440002, Maharashtra |
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Date of Birth/Age : |
13.03.1952 |
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Qualification : |
B.Com |
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Date of Appointment : |
09.09.1990 |
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|
|
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Name : |
Mr. Shrawan
Ramlal Malu |
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Designation : |
Director |
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Address : |
1249, Neelkamal,
Central Avenue, Nagpur – 440002, Maharashtra |
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Date of Birth/Age : |
18.01.1960 |
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Qualification : |
B.Com |
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|
|
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Name : |
Mr. Raheshyam Malu |
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Designation : |
Director |
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Address : |
1249, Neelkamal,
Central Avenue, Nagpur – 440002, Maharashtra |
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Date of Birth/Age : |
23 Years |
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Qualification : |
M.B.A |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Dhame |
|
Designation : |
Chief General Manager |
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Mobile No. : |
91-9881732172 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
List of Allottee |
|
No. of Shares Allotted |
|
Punamchand Ramlal Malu |
|
8000 |
|
Purshottam Ramlal Malu |
|
5000 |
|
Shrawankumar Ramlal Malu |
|
7500 |
|
Venugopal Punamchand Malu |
|
5000 |
|
Radheshyam Purushottam Malu |
|
5000 |
|
Bharat Shrankumar Malu |
|
1000 |
|
Anita Shrawankumar Malu |
|
2500 |
|
Pushpa Damodarlal Malu |
|
4000 |
|
Kaushalya Punamchand Malu |
|
5500 |
|
Sushila Purshottam Malu |
|
6500 |
|
Total |
|
50000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Bodies or relatives of directros |
|
12.58 |
|
Directors or relatives of directors |
|
87.42 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in several businesses such as coal, welding electrodes, paper industries,
manganese processing plants, steel ingots and casting of various alloy
grades. |
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Exports : |
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Countries : |
Ř Africa Ř North America Ř Gulf Countries Ř Europe |
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Imports : |
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Products : |
Wire Rodes, and Routie |
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Countries : |
Ř Korea Ř China Ř Australia |
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Terms : |
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Selling : |
L/C, Cash, Credit ( 15-45 Days) and
T.T |
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Purchasing : |
L/C, Cash , Credit (15 Days) and T.T |
GENERAL INFORMATION
|
No. of Employees : |
133 (Office 13, Factory 120) |
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|
|
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Bankers : |
Ř
State Bank
of India, Hingna Ř
Punjab
National Bank Ř
Bank of
Maharashtra Ř State Bank of India Central Avenue Road, [Nagpur] Branch. Ř Axis Bank Limited, 1st Floor, Sanskrutik Sankul, Rani Jhansi Square, Sitabuldi, Nagapur-440010, Maharashtra, India |
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Facilities : |
CC Rs. 140.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Demble Ramani and Company Chartered Accountants |
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Address : |
Abhyankar Road, Sitabuldi, Nagpur-440012, Maharashtra, India |
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Tel. No.: |
91-712-2521630 /
2521631 |
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Mobile No.: |
91-712-2531783 |
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E-Mail : |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000 |
Equity Shares |
Rs. 100/- each |
Rs. 15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
143000 |
Equity Shares |
Rs. 100/-
each |
Rs. 14.300
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
14.300 |
9.300 |
9.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
25.143 |
17.971 |
10.995 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
39.443 |
27.271 |
20.295 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
85.248 |
26.082 |
2.436 |
|
|
2] Unsecured Loans |
19.825 |
16.090 |
18.072 |
|
|
TOTAL BORROWING |
105.073 |
42.172 |
20.508 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
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|
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|
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TOTAL |
144.516 |
69.443 |
40.803 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
68.473 |
15.837 |
12.975 |
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Capital work-in-progress |
0.000 |
3.658 |
0.000 |
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|
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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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|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
33.673
|
26.878 |
7.605 |
|
|
Sundry Debtors |
52.780
|
34.408 |
20.920 |
|
|
Cash & Bank Balances |
5.541
|
4.956 |
1.071 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
3.560
|
3.807 |
1.550 |
|
Total
Current Assets |
95.554
|
66.049 |
31.146 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
19.511
|
16.113 |
3.343 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
0.Total
Current Liabilities |
19.511
|
16.113 |
3.343 |
|
|
Net Current Assets |
76.043
|
49.936 |
27.803 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.012 |
0.025 |
|
|
|
|
|
|
|
|
TOTAL |
144.516 |
69.443 |
40.803 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
394.037 |
197.523 |
10.830 |
|
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Other Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income |
394.037 |
197.523 |
10.830 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
9.692 |
10.570 |
4.561 |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.345 |
|
|
Profit/(Loss) After Tax |
9.692 |
10.570 |
4.216 |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Interest |
8.599 |
3.098 |
|
|
|
Depreciation & Amortization |
2.256 |
1.063 |
6.269 |
|
|
Other Expenditure |
373.490 |
182.792 |
|
|
Total Expenditure |
10.855 |
186.953 |
6.269 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.46
|
5.35 |
38.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.46
|
5.35 |
42.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.91
|
12.91 |
10.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.39 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.49
|
2.14 |
1.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.89
|
4.09 |
9.31 |
LOCAL AGENCY
FURTHER INFORMATION
TRUSTSEAL ACCEPTANCE CHART
|
Parameters |
Details |
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|
|
|
Existence Verification |
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|
Name |
MALU ELECTRODES PRIVATE LIMITED |
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|
|
Statutory Approvals |
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|
Legal Status of Firm |
Private Limited Company |
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Income Tax Registration |
AABCM2306H |
|
VAT/ TIN Registration |
27800004843V |
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Import Export Code |
0395058091 |
|
Current Account Number |
0780102000012236 |
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|
|
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Credibility Factors |
|
|
Years of Establishment |
1992 |
|
Turn Over |
Rs. 600.000 Millions |
|
Turn Over Year |
Rs. 750.000 Millions |
Trade References:
Ř
K. K. Welding Limited, Mumbai
Ř
Chandrakant Enterprises, Kolhapur, Maharashtra, India
Ř
Arihant Industris Supply, Solapur, Maharashtra, India
Ř
Redsea General Trading, Angola
Ř
W.P.T. Wide Action Jay Limited, Hong Kong
Bankers Charges
Report as per Registry
|
Name of the company |
MALU ELECTRODES
PRIVATE LIMITED |
|
Presented By |
Director – Mr. Punamchand Malu |
|
1) Date and description of instrument creating the change |
Dt. 08.02.1996 General Agreement for the grant of small industrial advances and hypothecation of movable book debts and other assets. Ancillary Agreement No. 1 Ancillary Agreement No. 2 |
|
2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 2.027 millions DCC Limit : Rs. 1.000 million BG Limit : Rs. 0.600 million LC Limit : Rs. 0.427 million |
|
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 |
The whole of the borrowers stocks of raw materials,
finished goods, stocks and spares which now of hereafter from time to time
during this security shall be brought into, stored or be in or about the
borrowers premises at Nagpur or wherever else the same may be including any
such goods in the course of transit or delivery and secondly all present and
future goods, book debts, movable and other assets of borrower including
documents of titles of good and other assets such as outstanding moneys
receivables claims bill invoices documents, investments and right and the
present and future machinery or under the control of borrowers wherever lying
stored and kept and whether in possession of borrower or of the bank or of
any third party whether in India or elsewhere shall stand hypothecated to the
bank by way of first charge. |
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Rate of interest 0.5% above SBAR min 17% Affective rate
17.75% Raw Material 25% Stock in process 33% Finished goods
33% |
|
5) Name and Address and description of the person entitled
to the charge. |
State Bank of India, Central Avenue Road, [Nagpur] Branch. |
|
6) Date and brief
description of instrument modifying the charge |
1. Supplemental general agreement for the grant of SIA & hypothecation of goods, book debts & other assets of goods book debts and other assets 2. Agreement for grant of Small Industrial Advances 3. General Agreement for the grant of MTA and SSI & hypothecation of movables, Book debts & other assets 4. Deposit of Title deeds All the documents Dt.
13.08.2002 |
|
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 company availed the medium term loan of Rs. 1.500
millions and the existing demand cash credit limit enhanced to Rs. 4.000
millions aggregating total limit of Rs. 5.500 millions. The medium term loan
is secured by way of hypothecation as first charge on all the present &
future goods, book debts movables & other assets wherever lying, stored
kept, whether in India or elsewhere, and also all the piece and parcel of
land known plot no. S – 4, in the Nagpur Industrial Area, within the village
limit of Taluka and Registration sub district hingna & registration
district Nagpur. Containing by and measurement 4050 sq. meter. or thereafter
and bounded as follows :
To The East : M.I.D.C. ESTATE ROAD To The West : PLOT NO. S – 7 & S – 8 To The North : PLOT NO. S – 6 To The South : PLOT NO. S – 3
Interest : Rate of Interest : 1.75% above SBAR effective rate @ : 12.75% p.a. Rate of Interest : 1.75% above BMTLR effective rate @ : 13.25% p.a.
Margin : Stock : 25% Receivable : 40%
Repayment : Medium Term Loan : 5 years DCC : On demand Other terms & conditions shall remain unchanged |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
10005642 |
|
Corporate
identity number of the company |
U31200MH1990PTC058024 |
|
Name of the
company |
MALU ELECTRODES PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
S 111, Ramkrishna Apartment, Schaprunagare, Square, Nagpur-440008,
Maharashtra, India |
|
Type of charge |
Book Debts Movable Property Immovable
Property |
|
Particular of
charge holder |
Axis Bank Limited, 1st Floor, Sanskrutik
Sankul, Rani Jhansi Square, Sitabuldi, Nagapur-440010, Maharashtra, India |
|
Nature of
description of the instrument creating or modifying the charge |
|
|
Date of
instrument Creating the charge |
22.11.2006 |
|
Amount secured by
the charge |
Rs. 144.100
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Term Loan of Rs.
39.600 Millions is at the rate of 11.5% cash credit limit of Rs. 84.500
Millions is at the Rate of 11.25% Terms of Repayment
Margin For Term Loan 28% Fro Working
Capital 25% on Inventory and 40% on Book Debts For Letter of
Credit 10% Extent and Operation of the charge As Mentioned in
composite hypothecation deed and equitable mortgage. |
|
Short particulars
of the property charged |
First Exclusive
charge in favour of the Bank on all the goods, stocks, Raw materials plant and
machinery, Fixtures, Implements, Fittings and other Installations, Furniture,
Vehicles computers and all other items as mentioned in schedule to composite
hypothecation deed. The said credit
facility is secured by way of mortgage of immovable properties as prescribed
in annexure B second schedule of Equitable mortgage together with the
buildings and structure constructed or TBE constructed thereon. |
|
Date of latest
modification prior to the present modification |
|
|
Particulars of
the present modification |
The Aggregate
existing credit facility of Rs. 56.500 Millions is enhanced to Rs. 144.100
Millions the other terms and conditions remain unchanged. |
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 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.42.47 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.66.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
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 |
|