MIRA INFORM REPORT

 

 

 

Report Date :

03.12.2008

 

IDENTIFICATION DETAILS

 

Name :

PARSHVANATH WELDWIRES PRIVATE LIMITED

 

 

Registered Office :

Plot No. C-4 MIDC Butibori, Nagpur – 441122, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

07.09.1998

 

 

Com. Reg. No.:

11-116465

 

 

CIN No.:

[Company Identification No.]

U28999MH1998PTC116465

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Welded Mesh and Other Wire Products

 

 

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

 

 

 

 

 

Maximum Credit Limit :

USD 30000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office/ Factory :

Plot No. C-4 MIDC Butibori, Nagapur – 441122, Maharashtra, India

Tel. No.:

91-7104-265479/712-2765194

Fax:

91-712-2732260

Email:

samyak_ngp@sancharnet.in

 

 

Corporate Office :

“Basanti Nandan” 196, Kumharpura Badkas Chowk, Mahal, Nagpur – 441122, Maharashtra, India

Tel. No.:

91-712-2765194/ 2731864/ 3103679

Fax No.:

91-712-2723360

Mobile:

91-9422102104

 

 

DIRECTORS

 

Name :

Mr. Kapilkumar Nandanlal Jain

Designation :

Director

Address :

196, Kumbhar Pura, Badkas Chowk, Mahal, Nagapur – 440002, Maharashtra, India

Date of Birth/Age :

27.10.1972

Date of Appointment :

07.09.1998

 

 

Name :

Mrs. Rashmi Mahavir Jain

Designation :

Director

Address :

196, Kumbhar Pura, Badkas Chowk, Mahal, Nagapur – 440002, Maharashtra, India

Date of Birth/Age :

07.07.1973

Date of Appointment :

31.12.2003

 

 

Name :

Mrs. Anshu Jain

Designation :

Whole Time Director

Address :

Kumbhar Pura, Badkas Chowk, Mahal, Nagapur – 440002, Maharashtra, India

Date of Birth/Age :

29.10.1976

Date of Appointment :

20.06.2007

 

 

Name :

Mr. Santosh Gayachand Jain

Designation :

Whole Time Director

Address :

196, Kumbhar Pura, Badkas Chowk, Mahal, Nagapur – 440002, Maharashtra, India

Date of Birth/Age :

20.10.1963

Date of Appointment :

20.06.2007

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 29.09.2007)

Names of Shareholders

 

No. of Shares

 

 

 

Hemantkukar N. Jain

 

10

Anilkumar N. Jain

 

10

Mahaveer N. Jain

 

10

Kapilkumar N. Jain

 

34000

Rajani K. Jain

 

7800

Kamlesh V. Jain

 

2500

Sunilkumar Jain

 

7500

Chainsingh

 

2500

Girdharilal

 

2500

Kamlesh Singh

 

2500

Nathan Singh

 

2500

Ramlal Singh

 

2500

Janmesh Singh

 

2500

Surendra S. Jain

 

4500

Guttanlal G. Jain

 

5000

Pravinkumar G. Jain

 

5000

Ramlal K. Kushwaha

 

2500

Bundel Singh

 

2500

Archana S. Jain

 

48900

Manjula Jain

 

17000

Anilkumar Jain

 

28200

Mahaveer Jain

 

8000

Hemant Jain

 

8000

Alka Jain

 

12000

Santosh Jain

 

12000

Pratibha Jain

 

23200

Manoj Jain

 

6000

Kapil K. Jain

 

10

Manish S. Jain

 

10

Hemant Jain

 

10

 

 

 

Total

 

249660

 

(As on 29.03.2008)

Names of Allotted

 

No. of Shares

Allotted

 

 

 

Anshu Hemant Jain

 

177000

Hemantkumar N. Jain

 

30000

Kapilkumar N. Jain

 

20000

 

 

 

Total

 

227000

 

(As on 30.09.2007)

Category

 

Percentage

 

 

 

Director or relatives of directors

 

79.00

Other top fifty (50) Shareholders (Other than Listed above)

 

21.00

 

 

 

Total

 

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Welded Mesh and Other Wire Products.

 

 

Products :
  • Barbed Wire
  • Welded Mesh
  • Chain Link

 

 

GENERAL INFORMATION

 

No. of Employees :

60

 

 

Bankers :
  • Corporation Bank

SVP Marg, Kingsway, Nagpur – 440001, Maharashtra, India

 

  • Shikshak Sahakari Bank Limited

Itwari Branch, Nagpur, Maharashtra, India

 

  • Rupee Co-operative Bank Limited

Nagpur Branch, Nagpur, Maharashtra, India

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Batra Khandelwal and company

Chartered Accountants

Address :

584-A, Jalalpur, Dakshin  Gandhibagh, Behind Rapid Transport, Nagpur – 440002, Maharashtra, India

 

 

Name :

Dilip Lohiya and Company

Chartered Accountant

Address :

1st Floor, Thakar Building, Near Handloom Market, Nagpur – 440002, Maharashtra, India 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

500000

Equity shares

Rs.10/- each

Rs.5.000 Millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

249630

Equity shares

Rs.10/- each

Rs.2.496 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

2.496 

2.496

2.496

2] Share Application Money

0.260 

0.260

0.260

3] Reserves & Surplus

2.694 

2.290

1.704

4] (Accumulated Losses)

0.000 

0.000

0.000

NETWORTH

5.450 

5.046

4.460

LOAN FUNDS

 

 

 

1] Secured Loans

13.866 

11.230

7.227

2] Unsecured Loans

1.704 

1.467

0.745

TOTAL BORROWING

15.570 

12.697

7.972

DEFERRED TAX LIABILITIES

0.670 

0.748

0.794

 

 

 

 

TOTAL

21.690 

18.491

13.226

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

6.085 

6.656

6.954

Capital work-in-progress

0.000 

0.000

0.000

 

 

 

 

INVESTMENT

0.388 

0.388

0.284

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
15.626 

10.158

5.264

 

Sundry Debtors
3.940 

6.189

1.834

 

Cash & Bank Balances
1.524 

1.022

0.030

 

Other Current Assets
0.000 

0.000

0.000

 

Loans & Advances
1.201 

0.912

0.549

Total Current Assets
22.291 

18.281

7.677

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
6.901 

6.621

1.258

 

Provisions
0.174 

0.213

0.431

Total Current Liabilities
7.075 

6.834

1.689

Net Current Assets
15.216 

11.447

5.988

 

 

 

 

MISCELLANEOUS EXPENSES

0.000 

0.000

0.000

 

 

 

 

TOTAL

21.690 

18.491

13.226

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007 

31.03.2006

31.03.2005

Sales Turnover

29.876 

28.757

24.867

Other Income

0.000 

0.000

0.000

Total Income

29.876 

28.757

24.867

 

 

 

 

Profit/(Loss) Before Tax

0.508 

(0.587)

(0.959)

Provision for Taxation

0.000 

0.000

0.000

Profit/(Loss) After Tax

0.403 

(0.587)

(0.959)

 

 

 

 

Expenditures :

 

 

 

 

Interest

1.695 

1.133

0.713

 

Depreciation & Amortization

0.924 

0.872

0.693

 

Other Expenditure

26.749 

27.339

24.420

Total Expenditure

29.368 

29.344

25.826

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
1.35 

(2.04)

(3.85)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.70 

(2.04)

(3.85)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
1.79 

(2.35)

(6.55)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09 

(0.11)

(0.21)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
4.16 

3.87

2.17

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.15 

1.60

4.55

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Corporation identity number or foreign company registrations number of the company 

U28999MH1998PTC116465

Name of the company

PARSHVANATH WELDWIRES PRIVATE LIMITED

Address

Plot No. C-4 MIDC Butibori, Nagapur – 441122, Maharashtra, India

This Form is for

Creation of Charge

Type of Charges

Immovable Property

Book debts

Movable Property (Not being Pledge)

Particular of the charge holder 

Corporation Bank

SVP Marg, Kingsway, Nagpur – 440001, Maharashtra, India

Cd209@corpbank.co.in

Nature or description of the instrument creating charge  

  • Common deed hypothecation of movables / assets / debts
  • Agreement for term loans

Date of the instrument creating charge

27.01.2007

Amount Secure by the charge

Rs.10.000 Millions

Brief of the principal terms and conditions and extent and operation of the charge

  • Cash Credit:10%p.a. payable at monthly rests and subject to change from time to time. Terms Loans: 10.25%p.a. payable at monthly rests and subject to change from tome to time. The loan installment is inclusive of interest. In case of any change of interest rate EMI should be adjusted accordingly.
  • Terms of repayments: Cashcredit :on demand Trem Loan: Loan is repayable in monthly equated installments of Rs.0.080 Million. The repayable should commence immediately after one month from the date of first desbursement. The instalment  is inclusive of interset which is subject to change from time to time. 
  • Margin: Book debts: 40%, Stocks 25% for reckoning drawing power of the company, the book debts beyound 90 days should be excluded.
  • Extent and operation of the charge: Hypothecation of stock and book debts and plant and machinery with fittings, fixture accessories in C-4 MIDC Butibori, Nagapur to secure working facilities of Rs. 10.000 Millions (Cash Credit Rs.8.500 Millions and Term Loan Ra. 1.500 Millions)

Short particulars of the property charged (including location of the property)

Hypothecation of stocks and book debts and plant and machinery with fittings, fixture accessories in C-4 MIDC, Butibori, Nagpur.

 

 

Name of the company

PARSHVANATH WELDWIRES PRIVATE LIMITED

Presented By

 Mr. Kapil Jain , Director

1) Date and description of instrument creating the change

Hypothecation of tangible movable property dated 7th july 2004,

Agreement of hypothecation of bookdebts dated 7th july 2004,

Agreement fot cah credit / overdraft/ bill discounting dated 7 th july 2004,

Hypothecation of plant and machinery dated 7th july 2004, (All this documents constitute a single charges)

2) Amount secured by the charge/amount owing on the securities of charge

Rs.4.350 Millions (Rupees Forty Three Lacs Fifty Thousand Only)

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

Hypothecation of Raw Materials wire (MS and Gi): Stocks in oprocess wire (MS and Gi): Finished goods (wire MS and GI welded mesh) Conssumable stores and book debts; Hypothecation of plant and machinery at C-4 MIDC, Butibori, Nagpur.for securing the cash credit limit to the tune of Rs.4.350 Millions by first charge.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of Intt: 13.50 p.a. Chargeable monthly; Panal Interest 2& p.a. Margin: 25%, Rapayment: On demand

5) Name and Address and description of the person entitled to the charge.

Shikshak Sahakari Bank Limited,

Head Office at gandhi sagar, Mahal, Nagpur through, Itwari Branch, Near Gandhi Pultla, Nagpur – 440002.

6) Date  and brief description of instrument modifying the charge

Deed of mortage, Dated 12.08.2004

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.

Mortgage of property situated at MIDC at Plot No. C-4 MIDC, Butibori Industrial Area within the village limits of vateght, Taluka and registration sud-district hingna, District Nagpur total admeastrial 2468.00 sq. mtrs. alongwith Industrial unit thereon to secure cash credit limit Rs.4.350 Millions and Term Loan of Rs.3.000 Millions Lacs total amounting Rs.7.350 Millions; Rate of Interst @ 13.50 p.a. chargable monthly; penal interst @2% p.a.

 

Fixed Assets:

 

 

Website Details:

 

Company Profile:

 

Subject is the India's manufacturer of Welded mesh and other wire products. From the modern 30,000 square foot factory at MIDC Butibori on the outskirts of Nagpur (Maharashtra),customers are served both at home and overseas with high quality products and a second to none service.

 

Subject welded mesh is available in a wide range of specification of aperture size, and wire diameters and mesh patterns, and is supplied in panels up to 1500 mm wide.

 

Made from the highest quality stainless steel wire, mild steel, brass, galvanized Iron  for maximum strength durability, and resistance to corrosion, parshvanath welded mesh, barbed wires, chain links and rolls are made in standard specifications, which are available ex-stock and  in non-standard specifications, which can be manufactured to order normally on short delivery times.

 

More and more applications for its qualities of hygiene, strength and durability are found each year and they are major suppliers to the chemical, pharmaceutical, health care, food, pollution control, and building industries.

 

The company commenced it's wiremesh operation with one welding line for general purpose application and building industry. The company has since substantially increased its capacity equipped with distinctive welding features. The company has broadened its mesh types into general purpose welded wiremesh, poultry mesh, engineered construction mesh and fine gauge galvanized mesh.

 

Manufacturing Process

 

The joining of the wires at the intersection is achieved by electric resistance welding. This is by a combination of heavy electric current (applied at low voltage) passed through the junction of wires, combined with heavy mechanical pressure. A solid state thyristorregulated electronic control ensures very fine control of time (in cycles) and current amplitude (total phase angle). All the spacing between wires is controlled by an automatic mechanism of high reliability.

 

 

Materials Being Used

 

MS

The wires used in the fabric are cold drawn from controlled quality mild steel wire rods with carbon contents generally less than 0.15%. It's manufactured with long and cross wire spacing varying from 25mm to 400mm. Wires used for manufacture of fabric are generally in the range of 2mm to 12mm diameter.

GI

Hot Dipped Galvanized wire.

SS

Brass of IS standard

 

 

 

 

Specifications

 

 

 

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.50.52

UK Pound

1

Rs.75.08

Euro

1

Rs.63.72

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions