MIRA
INFORM REPORT
|
Report Date : |
12.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SALZER CABLES LIMITED |
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Registered Office : |
S F No.863, Coimbatore Main Road, Battathapuram, Karamadai, Coimbatore
– 641104, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.01.2007 |
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Com. Reg. No.: |
013342 |
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CIN No.: [Company
Identification No.] |
U31905TZ2007PLC013342 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS09538E |
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PAN No.: [Permanent
Account No.] |
AAKCS6048K |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Wires and Cables |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 760000 |
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Status : |
New Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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Comments : |
Subject is a new company promoted by L and T Limited. The company has
shown satisfactory progress in the very first year of its operations. Trade relations
are fair. Business is active. No complaints have been heard. The company can be considered for small to mediocre business dealings,
initially. |
INFORMATION
DECLAINED BY
|
Name : |
Mr. Murugesh |
|
Designation : |
Assistant Company Secretary |
|
Date : |
10.12.2008 |
LOCATIONS
|
Registered Office/ Factory : |
S F No.863, Coimbatore Main Road, Battathapuram, Karamadai, Coimbatore
– 641104, Tamilnadu |
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Tel. No.: |
91- 422- 2692531 |
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Fax No.: |
91- 422- 2692170 |
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E-Mail : |
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|
Website : |
DIRECTORS
|
Name : |
Mr. R Daraiswamy |
|
Designation : |
Director |
|
Address : |
Perianaickenpalayam, Coimbatore – 641020, Tamilnadu, India |
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Date of Birth/Age : |
17.03.1943 |
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Qualification : |
BA |
|
Date of Appointment : |
10.01.2007 |
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|
Name : |
Mr. Rajesh Kumar |
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Designation : |
Director |
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Address : |
9/ 175 A Railway Station Road, Perianaickenpalayam, Coimbatore –
641020, Tamilnadu, India |
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Date of Birth/Age : |
25.09.1971 |
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Qualification : |
BE, MBA |
|
Date of Appointment : |
10.01.2007 |
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|
|
|
Name : |
Mr. Vakharia Kantilal |
|
Designation : |
Director |
|
Address : |
48, Sagar Darshan, 81/ 83, Bhulabhai Desai Road, Opp Breach Candy,
Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
24.10.1928 |
|
Date of Appointment : |
10.01.2007 |
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|
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|
Name : |
Mr. Ajit Singh |
|
Designation : |
Director |
|
Address : |
Hiranandani Garden, Powai, Mumbai – 400076, Maharashtra, India |
|
Date of Birth/Age : |
14.01.1953 |
|
Date of Appointment : |
28.06.2007 |
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|
|
|
Name : |
Mr. Venkateshan Thiruvarur |
|
Designation : |
Director |
|
Address : |
S Amudra Mahal, Dr. Annie Besant Road, Worli, Mumbai – 400018,
Maharashtra, India |
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Date of Birth/Age : |
26.01.1960 |
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Date of Appointment : |
28.06.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Murugesh |
|
Designation : |
Assistant Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 09.07.2008
|
Names of Shareholders |
|
No. of Shares |
|
Mr. R Doraisamy |
|
5000 |
|
Mr. D Rajesh Kumar |
|
5000 |
|
Mr. Kantilal V Vakharia |
|
39600 |
|
Mr. S Baskarasubramanian |
|
100 |
|
Mr. A Manimegalai |
|
100 |
|
Mr. D Govindarajan |
|
100 |
|
Mr. R Karunakaran |
|
100 |
|
Salzer Electronics Limited |
|
1000000 |
|
Mr. R Doraisamy |
|
144800 |
|
Mr. D Rajesh Kumar |
|
174900 |
|
Mr. Vishnu Rangaswamy |
|
70000 |
|
Mr. Thilagam Rajeshkumar |
|
20000 |
|
Mr. P Ramachandran |
|
50000 |
|
Micro Industries Limited |
|
100000 |
|
Mr. Vijay Krishna |
|
50000 |
|
Mr. A Manimegalai |
|
49900 |
|
Coimbatore Engineering Corporation |
|
150000 |
|
SRVE Industries Limited |
|
690000 |
|
Ramesh Electronics |
|
305000 |
|
Southern Tools MFG |
|
425000 |
|
Southern Micro Processor |
|
450000 |
|
Mr. R Tamilselvi |
|
50000 |
|
Mr. R Damodarswamy |
|
60000 |
|
Mrs. M Laxmi Narayana |
|
30000 |
|
Mrs. M Dhanlaxmi |
|
50000 |
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Mr. T Radhakrishnan |
|
50000 |
|
Mrs. T Ranganayaki |
|
25000 |
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Mrs. R Meena |
|
25000 |
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Mrs. Jaya Motichand Beed |
|
20000 |
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Mr. Motichand Meghan Beed |
|
30000 |
|
Mr. Khabeeb Seyed Mohamed Mujeebur |
|
250000 |
|
Mr. Naduppan D M Iqbal |
|
30000 |
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Mr. Ahmed F M Saabique |
|
30000 |
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Mr. Indira Yashwant Pole |
|
20000 |
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Mr. Nanik D Hatiramani |
|
10000 |
|
Mr. Narotamdas J Avlani |
|
20000 |
|
Mrs. Varsha N Avlani |
|
30000 |
|
Mr. Virat K Mehta |
|
10000 |
|
Mrs. Laju H Daswani |
|
20000 |
|
Mr. Vashdev H Lilaramani |
|
20000 |
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Mr. Bhupender Singh M Koghar |
|
20000 |
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Mr. Ashok S Kothari |
|
20000 |
|
Mr. Nalin S Jhaveri |
|
20000 |
|
Mr. Rajiv M Shah |
|
20000 |
|
Mr. Santu G Samtani |
|
10000 |
|
Mr. Chandur N Mirchandani |
|
20000 |
|
Mrs. Mala C Mirchandani |
|
20000 |
|
Mr. Omprakash R Dangayach |
|
20000 |
|
Mr. Charanjit Singh A S Grewal |
|
10000 |
|
Mr. Kuljitkaur C S Griwal |
|
10000 |
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|
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List of Allottees
|
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No. of Shares |
|
Mr. Kantilal V Vakharia |
|
39600 |
|
Mr. S Baskarabramananian |
|
100 |
|
A Manimegalai |
|
100 |
|
Mr. D Govindrajan |
|
100 |
|
Mr. R Karunakaran |
|
100 |
AS ON 09.07.2008
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
16.18 |
|
Bodies corporate |
|
63.04 |
|
Directors or relatives of directors |
|
5.76 |
|
Other top fifty shareholders |
|
15.02 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Wires and Cables |
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Products : |
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PRODUCTION STATUS (AS ON 09.07.2008)
|
Particulars |
|
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Insulated Copper Wire (Oty in Coils) |
|
NA |
1200000 |
-- |
|
Insulated Copper Wire (Oty in Coils) |
|
NA |
-- |
131156 |
|
Scraps (Kgs) |
|
NA |
-- |
5968 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
M/s. Swami and Ravi Chartered Accountant |
|
Address : |
NSR Road, Saibaba Colony, Coimbatore – 641011, Tamilnadu, India |
|
|
|
|
Name : |
M/s. JDS Associates Chartered Accountant |
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Address : |
R No 6, 1st Floor, Jewel Complex, Coimbatore - 641011 |
CAPITAL STRUCTURE
AS ON 09.07.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20500000 |
Equity Shares |
Rs. 10/- Each |
Rs.205.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15448000 |
Equity Shares |
Rs. 10/- Each |
Rs.154.480 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
|
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
154.480 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
(0.829) |
|
|
NETWORTH |
|
|
153.651 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
138.272 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
138.272 |
|
|
DEFERRED TAX LIABILITIES |
|
|
7.259 |
|
|
|
|
|
|
|
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TOTAL |
|
|
299.182 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
167.708 |
|
|
Capital work-in-progress |
|
|
11.586 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
42.859 |
|
|
Sundry Debtors |
|
|
82.254 |
|
|
Cash & Bank Balances |
|
|
10.203 |
|
|
Other Current Assets |
|
|
0.040 |
|
|
Loans & Advances |
|
|
61.328 |
|
Total
Current Assets |
|
|
196.684 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
76.797 |
|
|
Provisions |
|
|
0.903 |
|
Total
Current Liabilities |
|
|
77.700 |
|
|
Net Current Assets |
|
|
118.986 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.902 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
299.182 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2008 |
|
|
|
|
|
|
|
|
Sales Turnover |
|
|
160.020 |
|
|
Other Income |
|
|
0.406 |
|
|
Total Income |
|
|
160.426 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
|
7.332 |
|
|
Provision for Taxation |
|
|
8.162 |
|
|
Profit/(Loss) After Tax |
|
|
(0.830) |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
|
|
121.305 |
|
|
Purchases made for re-sale |
|
|
0.000 |
|
|
Consumption of stores and spares parts |
|
|
0.350 |
|
|
Increase/(Decrease) in Finished Goods |
|
|
11.856 |
|
|
Salaries, Wages, Bonus, etc. |
|
|
0.506 |
|
|
Payment to Auditors |
|
|
0.028 |
|
|
Interest |
|
|
5.185 |
|
|
Insurance Expenses |
|
|
0.106 |
|
|
Power & Fuel |
|
|
2.037 |
|
|
Depreciation & Amortization |
|
|
3.013 |
|
|
Other Expenditure |
|
|
8.708 |
|
Total Expenditure |
|
|
153.094 |
|
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2008 |
|
PAT / Total Income |
(%) |
|
|
(00.51) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
04.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
01.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
1.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
2.53 |
LOCAL AGENCY FURTHER
INFORMATION
Genesis
Subject was incorporate on 10th January 2007 under the
companies act, 1956 within the judiction of registered of companies of the
Coimbatore with the partnership of M/s. L and T Limited, one of the engineering
and construction major of our country, for manufacturer of all types of
electrical power cables/ wires for domestic and industrial purpose. The company
has completed successes fully the implementation of the project and started
with commercial production with effect from 1st January 2008.
Financial Period
of the first year of operations and subsequent financial years
Pursuant to the provision of the companies act, 1956 the first year
operations of the the company have comprised about the 15 months commencing
from the date of incorporation till 31st march 2008 (10.01.2007 to
31.03.2008). hence the annual account of the company have been prepaid
comprising of balance sheet as at 31st march 2008 and profit and
loss account for the period of 3 months from 01.01.2008 to 31.03.2008. the
subsequent financial year of the company would be from 1st April to
31st March of the following year being the standard accounting
years.
Conversion of the
Company in to Public Limited Company
The company was incorporated as private limited company on 10.01.2007.
with the aim of pooling the require recourses by offering the share/ other
securities to the pulic at large to bring up the project in a big way, the
company was converted into a public limited company. Pursuant to the conversion
of the company, the registered of companies, Coimbatore issued a fresh
certificate of incorporation dated 15.03.2007
Share application
agreement
For implementation of the project, the company has entered in to a share
subscription agreement with M/s. L and T capital company limited, being the
investment arm of M/s. L and T Limited, promoter shareholders and Subject to
subscribe to the equity capital of the company.
Allotment of
Shares
Pursuant to the share subscription agreement, the company has allotted
share to all the signatories of the subscription agreement during the year.
Future Plan
Keeping in view of the growth exponential and the market size for wire
and cables is very large, say an estimated range of Rs.100000.000 Millions in India
alone, the company contemplates to reach a sizable scale of operation on per
with the major suppliers in the market within next 2- 3 year including plan for
manufacturer of under ground cable, special cable like XLPE Wires, single stand
wire, and UL standard wires. To achieve this, the company has been considering
various operation available.
Fixed Assets
- Leasehold
Land
- Land
Development
- Building
- Bore well
- Machinery
- Electrical
Fitting
- Measuring
Instruments
- Lab
Equipments
- Office
Equipments
- Furniture and
Fitting
- Vehicles
Form 8
|
This form is for |
Modification of
charge |
||||||||
|
Charge
identification number of the modified
|
10057783 |
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|
Corporate
identity number of the company |
U31905TZ2007PLC013342 |
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|
Name of the
company |
SALZER CABLES LIMITED |
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|
Address of the
registered office or of the principal place of business in India of the company |
S F No.863, Coimbatore Main Road, Battathapuram, Karamadai, Coimbatore
– 641104, Tamilnadu |
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|
Type of charge |
Book Debts Any interest in
Movable Property |
||||||||
|
Particular of
charge holder |
|
||||||||
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Nature of
description of the instrument creating or modifying the charge |
Hypothecation Agreement Of Goods And Debts |
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Date of
instrument Creating the charge |
25.08.2008 |
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|
Amount secured by
the charge |
Rs.130.000
Millions |
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|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest BPLR + 0.5%
(12.75%) Terms of
Repayment Enhancement of
working capital from the bank Margin Fund based – 25%
and non fund based 100% Extent and
Operation of the charge First charge on
the current assets of the company- hypothecation of stocks, work in process,
finished goods and hypothecation of book debts. Paripassu
exclusive first charge in favour of the bank on all fixed assets, except the
machinery finance by M/s. L and T Finance Limited and Second Pari Passu in
favour of the bank for the machinery item finance by M/s. L and t Finance
Limited |
||||||||
|
Short particulars
of the property charged |
First charge on
the current assets of the company- hypothecation of stocks, work in process,
finished goods and hypothecation of book debts. Paripassu
exclusive first charge in favour of the bank on all fixed assets, except the
machinery finance by M/s. L and T Finance Limited and Second Pari Passu in
favour of the bank for the machinery item finance by M/s. L and t Finance
Limited |
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.48.52 |
|
UK Pound |
1 |
Rs.72.62 |
|
Euro |
1 |
Rs.63.76 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
33 |
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 |
|