MIRA
INFORM REPORT
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Report Date : |
20.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
MARK EXHAUST SYSTEMS LIMITED |
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Registered Office : |
S -430, Greater Kailash –II, New Delhi -110 048 |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
03.11.1993 |
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Com. Reg. No.: |
55-55905 |
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CIN No.: [Company
Identification No.] |
U32204DL1993PLC055905 |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Exhaust Systems, Exhaust Pipes With Catalytic Converters, Bellows, EGR
Pipe, Fuel Filler Neck and Tabular Assemblies |
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 1300000 |
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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.
General financial position is good. Trade relations are fair. Business is
active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
S - 430, Greater Kailash –II, New Delhi -110 048, India |
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Tel. No.: |
91-11-2921 1728 |
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Fax No.: |
91-11-2921 3244 |
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E-Mail : |
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Website : |
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Area : |
800 sq.ft, |
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Location : |
Leased (commercial area) |
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Factory 1 : |
39/7, Begumpur Khatola, N H 8,
Delhi Jaipur Highway, Gurgaon -122 001, Haryana, India |
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Tel. No.: |
91-124-2379780 / 81 / 2379929 / 2373112 to 14 / 2371054/55/56 |
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Mobile No.: |
91-9811074555 (Mr. Brij Malhotra) |
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Fax No.: |
91-124-2379929 / 4031012 / 5031012 |
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Factory 2 : |
Village: Binola, Bora Kalan, Tehsil and District Gurgaon, Haryana, India |
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Tel No.: |
91-124-2379780/2379781/2379929/2379930 |
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Fax No.: |
91-124-237 9779 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Kallol Roy |
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Designation : |
Director |
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Address : |
MM-12, Ground Floor, DLF Phase II, Gurgaon – 122 001, Haryana, India |
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Pan No.: |
AAXPR2757E |
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Name : |
Mr. Rattan Kapur |
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Designation : |
Managing Director |
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Date of Birth/Age : |
20.11.1957 |
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Date of Appointment : |
03.11.1993 |
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Name : |
Mr. Seshagiri Natarajan |
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Designation : |
Director |
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Date of Birth/Age : |
27.06.1933 |
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Date of Appointment : |
03.11.1993 |
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Name : |
Mr. Kavi Singh Tejpal Tulsi |
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Designation : |
Director |
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Date of Birth/Age : |
07.11.1947 |
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Date of Appointment : |
15.06.1998 |
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Name : |
Mr. Sandeep Chandhok |
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Designation : |
Director |
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Date of Birth/Age : |
31.07.1964 |
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Date of Appointment : |
27.07.2002 |
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Name : |
Mr. Motohird Atsumi |
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Designation : |
Director |
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Date of Birth/Age : |
07.01.1963 |
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Date of Appointment : |
29.01.2004 |
KEY EXECUTIVES
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Name : |
Mr. Rajender Prakash Goyal |
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Designation : |
Chairman |
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Date of Birth/Age : |
1.12.1923 |
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Date of Appointment : |
14.12.1997 |
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Name : |
Mr. Sanjay Gupta |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
11.07.1971 |
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Date of Appointment : |
3.11.1996 |
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Name : |
Mr. Rajesh Khanna |
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Designation : |
Senior Manager – Projects and Marketing |
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Mobile No.: |
91-9810042032 |
SHAREHOLDING
PATTERN
Equity Share Breakup (Percentage of Total Equity):- [As on 31.03.2008]
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Category |
Percentage |
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Foreign Holdings (Foreign Institutional
Investor(s), Foreign Companie(s), Foreign Financial Institution(s), Non – Resident
Indian(s) Or Overseas Corporate Bodies Or Others |
11.25 |
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Bodies Corporate |
74.12 |
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Directors or relative of directors |
14.62 |
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Other top fifty (50) shareholders |
0.01 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Exhaust Systems, Exhaust Pipes With Catalytic Converters, Bellows, EGR
Pipe, Fuel Filler Neck and Tabular Assemblies |
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Products : |
· Exhaust System for 2 and 4 Wheeler · Catalytic Convertors for Euro II and III · Door Sash · Tube Assemblies, Fuel Filler Pipe Assemblies and Egr pipes · Sheet Metal Parts and Assemblies · Esteem Muffler · Esteem Pipe · European Pipe · European Exhaust Pipe · Honda City Spare · Honda City Silencer · Lancer Diesel Pipe · Lancer Diesel Pipe · Lancer Muffler · Lancer Sheet Metal Components · Lancer Water Inlet · Zen Diesel Pipe · Zen Pipe · Lancer Water Inlet · Zen Muffler |
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Principal
Product : |
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Exports : |
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Countries : |
UK and other European countries. |
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Imports : |
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Products : |
Machineries |
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Countries : |
Europe and Japan. |
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Terms : |
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Selling : |
L/C, Cash Credit and Contract terms. |
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Purchasing : |
L/C and Credit (60/90 days) terms. |
GENERAL
INFORMATION
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Suppliers : |
· Auto Tech · Allied Ferro Industries · Associate Paints and Allied Products · Bishandas Steel Tubes · D K Tools · Deepak Enterprises · D M Auto Industries · Faridabad Stampings · Flowcon Auto Systems Private Limited · Gee Kay Enterprises · Galaxy Enterprises · Hyline Auto Industries · J P Tools · Kanika Metals · Karan Impex · Laxman Steel Traders · Mikron Tool and Industries · New Precision India · Pal Industries · Simba FRP Private Limited · SDL Auto Private Limited · Wadson India Private Limited |
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Customers : |
· Maruti Suzuki Limited · Honda Seil Cars India Limited, · Honda Scooters and Motorcycles Limited · Hindustan Motors(Lancer). · Piaggio, ·
Export of Brake Pipes
to USA ·
Export of Mufflers and
Tube Assemblies to UK. · Maruti Udyog Limited, India · J W Clark and Company Limited, UK |
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No. of Employees : |
500 |
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Bankers : |
· Lord Krishna Bank Limited, Global Business Park, Mehrauli Gurgaon Road, Gurgaon – 122 002, Haryana, India · Standard Chartered Bank, Sansad Marg, New Delhi -110 048, India · Mizuho Corporate Bank Limited, Maker Chamber – III, First Floor, Jamnalala Bajaj Road, Nariman Point, Mumbai – 400021, Maharashtra, India · IDBI Limited · Corporation Bank, IFB, HT House, K. G. Marg, New Delhi-110 048, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Uberoi Sood and Kapoor Chartered Accountants |
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Address : |
606 Vishal Bhawan, 95 Nehru Palace, New Delhi - 110 019, India |
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Tel No.: |
91-11-26416942 |
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Fax No.: |
91-11-26480027 |
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E-Mail: |
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Parent Company : |
Mark Auto Industries Limited, India |
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Memberships : |
ACMA, CII |
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Standard Certification: |
ISO 14001, TS 16949 |
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Technical Collaborations : |
·
Sankei Giken Kogyo Company Limited, Japan ·
Futaba Industrial Company Limited, Japan |
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Associates/Subsidiaries : |
· Spinx Auto India Limited, India |
CAPITAL STRUCTURE
(As on
31.03.2008):-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000 millions |
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500000 |
Preference Shares |
Rs. 100/- each |
Rs. 50.000 millions |
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Total |
Rs.150.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs.100.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
100.000 |
100.000 |
100.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
152.016 |
118.791 |
101.610 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
252.016 |
218.791 |
201.610 |
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LOAN FUNDS |
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1] Secured Loans |
109.259 |
208.884 |
236.118 |
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2] Unsecured Loans |
359.364 |
437.318 |
298.263 |
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TOTAL BORROWING |
468.623 |
646.202 |
534.381 |
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DEFERRED TAX LIABILITIES |
80.811 |
68.361 |
53.813 |
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TOTAL |
801.450 |
933.354 |
789.804 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
687.839 |
721.403 |
683.617 |
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Capital work-in-progress |
0.953 |
8.298 |
12.206 |
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INVESTMENT |
0.944 |
2.900 |
5.344 |
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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 |
171.799
|
206.965 |
155.430 |
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Sundry Debtors |
213.413
|
242.641 |
165.952 |
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Cash & Bank Balances |
36.234
|
45.557 |
10.610 |
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Other Current Assets |
7.303
|
1.376 |
0.816 |
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Loans & Advances |
109.451
|
86.492 |
73.997 |
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Total
Current Assets |
538.200
|
583.031 |
406.805 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
401.344
|
372.967 |
322.143 |
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Provisions |
31.548
|
20.517 |
12.404 |
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Total
Current Liabilities |
432.892
|
393.484 |
334.547 |
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Net Current Assets |
105.308
|
189.547 |
72.258 |
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MISCELLANEOUS EXPENSES |
6.406 |
11.206 |
16.379 |
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TOTAL |
801.450 |
933.354 |
789.804 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
3160.091 |
2578.461 |
1680.884 |
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Other Income |
42.555 |
20.471 |
10.302 |
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Total Income |
3202.646 |
2590.090 |
1691.186 |
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Profit/(Loss) Before Tax |
61.373 |
37.283 |
35.130 |
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Provision for Taxation |
27.188 |
20.102 |
18.750 |
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Profit/(Loss) After Tax |
34.185 |
17.181 |
16.380 |
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Export Value |
4.640 |
11.629 |
7.968 |
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Expenditures : |
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Raw Material Consumed |
2254.561 |
2041.163 |
1148.493 |
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Purchases made for re-sale |
118.314 |
71.721 |
98.463 |
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Consumption of stores and spares parts |
53.977 |
50.431 |
42.089 |
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Increase/(Decrease) in Finished Goods |
302.528 |
20.018 |
26.348 |
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Salaries, Wages, Bonus, etc. |
102.037 |
82.371 |
74.330 |
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Managerial Remuneration |
5.168 |
3.953 |
3.292 |
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Payment to Auditors |
0.642 |
2.875 |
2.875 |
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Interest |
45.718 |
29.114 |
24.677 |
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Insurance Expenses |
2.517 |
2.997 |
2.334 |
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Power & Fuel |
59.005 |
49.334 |
36.653 |
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Depreciation & Amortization |
88.214 |
83.374 |
74.821 |
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Other Expenditure |
108.592 |
115.456 |
121.681 |
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Total Expenditure |
3141.273 |
2552.807 |
1656.056 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
1.07
|
0.66 |
0.97 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.94
|
1.45 |
2.09 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.99
|
2.83 |
3.17 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.17 |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.58
|
4.75 |
4.31 |
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Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.48 |
1.22 |
LOCAL AGENCY FURTHER
INFORMATION
Note:
The Company’s office was situated at 606, Vishal Bhawan, 95, Nehru Place, New Delhi - 110 019 India now have been shifted to the above registered office.
FORM 8:-
|
Name of the company |
MARK EXHAUST SYSTEMS LIMITED |
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Presented By |
Company and Standard Chartered Accountants Bank, New Delhi |
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1) Date and description of instrument creating the change |
Agreement of hypothecation of stocks and book Debts
dated 24.10.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 170.000
millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All stock in Trade
both present and future consisting of Raw Materials, finished goods, goods in
process of manufacturing and other merchandise whatsoever and All present and
future book debts, outstanding
moneys, receivables, claims and bills, etc shall be hypothecation to
the bank by way of first charge on a pari-passu basis. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest as may
be determined by the bank from time to time |
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5) Name and Address and description of the person entitled to the charge. |
Standard
Chartered Bank Sansad Marg, New
Delhi -110 048, India |
Other DETAILS:-
The company has entered in Technical Collaboration with M/s. Sankei Giken Kogyo Company Limited, Japan.
The Company manufactures automotive exhaust systems for the following makes:
v Lancer
v Honda City
v Esteem
v Zen
WEBSITE DETAILS:-
Company profile:
Subject was initiated in February, 1996. The company has yearned all these years to acquire a distinctive identity for its brand as well as company name. Subject is currently engaged in the manufacturing of Exhaust Systems, Exhaust Pipes With Catalytic Converters, Bellows, EGR Pipe, Fuel Filler Neck and Tabular Assemblies. The company is also involved in the manufacturing of Door Sashes and Critical Sheet Metal Assemblies like Cover Exhaust for Engine and others. The company's manufactured products are readily available for the leading auto-industries like-Lancer, Honda City, Esteem, Zen and a few others.
The company's technical competence owe a great deal to the latest Japanese and
European machines and equipments. Subject manufactures Silencers, Exhaust Pipes and Sub-assemblies, Catalytic Converters,
Mufflers and Door Sashes conforming to the International High Quality
Standards. The company ensures that the products are delivered within the
specified time frame. They treat each and every customer as their valuable
asset and offer helpful before and after sale services.
The company has a dedicated team of Quality Assurance Inspectors who are
constantly involved in the Research and Analysis before developing the products
while keeping in mind the new emerging techniques and technologies. The company
has earned proud memberships of the following organisations: ACMA (Automotive
Component Manufacturer's Association) CII (Confederation of Indian Industry).
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.43.23 |
|
UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.63.80 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|