MIRA
INFORM REPORT
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Report Date : |
16.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHARP ELECTRODES PRIVATE LIMITED |
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Registered Office : |
330/2C, 1 Sitra Road, Kalpatti, Coimbatore-641035, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.02.1984 |
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Com. Reg. No.: |
18-1376 |
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CIN No.: [Company
Identification No.] |
U29191TZ1984PTC001376 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS06486E |
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PAN No.: [Permanent
Account No.] |
AADCS8157Q |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Pump and Pumping Equipments |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 47000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory: |
330/2C, 1 Sitra Road, Kalpatti, Coimbatore-641035, Tamilnadu, India |
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Tel. No.: |
91-422-267624/ 2628631 |
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Fax No.: |
91-422-2627632 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. J Mohanasundari |
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Designation : |
Managing Director |
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Address : |
41, Ramcakeshmi Nagar, DPeelamedv, Coibatore-641004, Tamilnadu, India |
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Date of Birth/Age : |
25.10.1952 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. K R Parthiban |
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Designation : |
Director |
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Address : |
50, Lal Bahadur Colony, Deelamedv , Coimbatore-641004, Tamilnadu,
India |
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Date of Birth/Age : |
29.12.1968 |
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Date of Appointment : |
01.10.2005 |
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Name : |
Mr. Krishnappachettiar Regupathy Subramanian |
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Designation : |
Additional Director |
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Address : |
D 101, Professors’ Quarters, Kumaraguru College of Technology, Coimbatore-641006,
Tamilnadu, India |
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Date of Birth/Age : |
05.06.1942 |
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Date of Appointment : |
01.11.2008 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 27.09.2007
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Names of Shareholders |
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No. of Shares |
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Jaganathan K HUF |
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1250 |
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J Mohanasundari |
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1240 |
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K R Parthiban |
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10 |
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Total |
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2500 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Pump and Pumping Equipments |
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Products : |
·
Welding Elctroodes ·
Rods ·
E70185 ·
E6013 ·
Coumable ·
Dry Flux ·
Pump ·
Openwell Self Priming ·
Centrifugal ·
Mild Steel Electodes e6013 ·
E6010 ·
E6011 ·
Low Hydogen Elctodes e7018 ·
E7014 ·
Stainsless Steel Esltodes e308 ·
E3081 ·
E3161 ·
E316 ·
Cast Iron Elctrodes en1c1 ·
En1cub ·
En1fec |
GENERAL
INFORMATION
|
Suppliers : |
·
Anand Traders ·
Aramex India Private Limited ·
Cheran Trading Company ·
Garware Industries Limited ·
Gayatri Enterprises ·
Gkar Chemicals Industries ·
Industrial Tools Corpn ·
Jain Ferro Alloys ·
Kalyansudarmas Lorry Services ·
Kayjay Sharp Trendys |
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Customers : |
·
Al shaer Building Materials Est ·
Central Purchasing Incorporated ·
Car Gallery ·
Freedom Building Materials ·
Goodluck Steel Tubes Limited ·
Ramesh Iron and Steel Company ·
Saudi Pump Factory ·
Shri Amman Process ·
SIDCO ·
SPTACI |
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No. of Employees : |
120 |
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Bankers : |
State Bank of India,
Main Branch, DB Division, State Bank Road, Coimbatore-641018, Tamilnadu,
India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
KSG Subramnyam and Company Chartered Accountant |
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Address : |
II Floor, United Shopping Complex, 94, Dr. Nanjappa Road,
Coimbatore-641018, Tamilnadu, India |
CAPITAL STRUCTURE
As on 27.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500 |
Equity Shares |
Rs. 1000/- each |
Rs. 2.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
2500 |
Equity Shares |
Rs. 1000/- each |
Rs. 2.500 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.500 |
2.500 |
1.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6.988 |
6.065 |
6.581 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
9.488 |
8.565 |
8.081 |
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LOAN FUNDS |
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1] Secured Loans |
5.992 |
4.581 |
7.483 |
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2] Unsecured Loans |
0.863 |
0.795 |
0.795 |
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TOTAL BORROWING |
6.855 |
5.376 |
8.278 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
16.343 |
13.941 |
16.359 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
6.182 |
6.565 |
6.047 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.818 |
0.818 |
0.818 |
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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 |
0.000
|
0.000 |
6.162 |
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Sundry Debtors |
0.000
|
0.000 |
5.812 |
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Cash & Bank Balances |
0.000
|
0.000 |
1.176 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
18.024
|
14.760 |
4.394 |
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Total
Current Assets |
18.024
|
14.760 |
17.544 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
8.681
|
8.202 |
7.875 |
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Provisions |
0.000
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0.000 |
0.290 |
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Total
Current Liabilities |
8.681
|
8.202 |
8.165 |
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Net Current Assets |
9.343
|
6.558 |
9.379 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.115 |
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TOTAL |
16.343 |
13.941 |
16.359 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
49.084 |
43.297 |
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Other Income |
|
0.000 |
0.000 |
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Total Income |
|
49.084 |
43.297 |
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Profit/(Loss) Before Tax |
|
1.185 |
0.874 |
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Provision for Taxation |
|
0.500 |
0.270 |
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Profit/(Loss) After Tax |
|
0.685 |
0.604 |
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Earnings in Foreign Currency : |
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Export Earnings |
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37.943 |
31.039 |
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Expenditures : |
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Depreciation & Amortization |
|
1.235 |
1.342 |
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Other Expenditure |
|
46.664 |
41.081 |
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Total Expenditure |
|
47.899 |
42.423 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
1.39
|
1.39 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
2.41
|
2.02 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.89
|
4.09 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.12
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0.10 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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1.64
|
1.63 |
2.03 |
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Current Ratio (Current Asset/Current Liability) |
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2.08
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1.79 |
2.15 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
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Charge
identification number of the modified
|
90007829 |
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Corporate
identity number of the company |
U29191TZ1984PTC001376 |
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Name of the
company |
SHARP ELECTRODES PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
330/2C, 1 Sitra Road, Kalpatti, Coimbatore-641035, Tamilnadu, India |
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Type of charge |
Book Debts Movable Property Immovable
Property |
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Particular of
charge holder |
State Bank of
India, Main Branch, DB Division, State Bank Road, Coimbatore-641018,
Tamilnadu, India |
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Nature of
description of the instrument creating or modifying the charge |
Letter of
Agreement – SNE 1 Agreement of Loan
cum Hypothecation – SME 2 Consent Letter
for Continution Deposits in Form 8 ( 2 Nos) |
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Date of
instrument Creating the charge |
14.03.2008 |
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Amount secured by
the charge |
Rs. 35.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest EPC: 3.45% below
SBAR Effective Rate 9.25% (Upto 180 days), 1.75% below SBAR Effective Rate
10.50% (Above 180 Days) FDBN – Demand 3.25% below SBAR Effective rate 9.25%
upto 365 Days and 3% Below SBAR Effective Rate 9.25%. For Other working
Capital Limits 1% above SBAR (SBAR12.25% WEF 27.02.08) Effective Rate 13.25% Terms of
Repayment Repayable on
Demand, However, Renewable on yearly basis Margin Fro Fund Based
Limits- Raw Materials, Semi Finished and Finished Goods 25% Receivables ( 90 Days) 25% Non Fund Based
Limits – 25% ( 100% FPR Disputed liability) Extent and
Operation of the charge Hypothecation of All
Present and future goods such as raw materials, semi finished goods, book
debts, movable assets, inc Documents to title goods and other assets,
invoices, documents, contracts, engagement, securities, investment and rights
and machineries belonging to or in the possession or of the banks or of any
third party whether in India or elsewhere throughout the world (Including all
such goods as may be in the course of shipment , transit or delivery) To
secure the renewed limit of Rs. 16.500 Millions |
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Short particulars
of the property charged |
Extension of EM
on The Immovable properties of the company at the coimbatore registration
district sub registration kallappatti village land admeasuring 1.25 Acress in
S F No. 330 And The Factory building constructed thereon coimbatore
registration District, Gandhipuram Sub Registration District Kalapatti
Village, Land Admeasuring 2.65 Acres in S F No. 292/2, 293/2, 294/3, 328 and
329 |
|
Date of latest
modification prior to the present modification |
25.06.2004 |
|
Particulars of
the present modification |
The Overall
credit limit stand enhanced to Rs. 16.500 Millions in vie of EPC to Rs.
10.000 Millions and sanction of SLC of Rs. 1.500 Millions Extension on
Immovable Properties belonging to the company land admeasuring 1.25 Acre in S
F No. 330 and The Factory Land and Buildings constructed thereon admeasuring
2.65 Acres in S F No. 292/2, 293/2, 294/3 328 and 329 at Kalaptatti Village
Coimbatore for the limits of the company and its group concern sharp trendys
for Rs. 19.000 Millions and Limits taken over by main branch, coimbatore. |
Fixed Assets:
·
Building
·
Computer
·
Electrical and Fittings
·
Electrical Installation
·
Furniture and Fittings
·
Lab Equipments
·
Land
·
Lift Unit II
·
Machinery Panel Anchor
·
Machinery
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Office Equipment
·
Plant and Machinery
·
Tools and Equipments
·
Vehicles
AS PER WEBSITE
Profile:
The Sharp group was started in a very humble manner way back
in 1967 by the founder Shri KK Ramaswamy in his native village Kallapatti which
is about 8 kms from the Manchester of south India - Coimbatore.
The company was started with an initial investment of Rs
25000 in a plant area of 2000 Square feet with a single lathe and two workmen.
The founder was the first generation engineer from the reputed PSG College of
technology.
A major breakthrough came in the form of an order for spare
parts from Vikram Sarabhai Space Research Centre Trivandram. Based on quality
and timely supply, a major order for 100 MT Hydraulic Press, came the company
way, which was also effectively executed to their entire satisfaction.
The erstwhile Managing Director Shri K Jaganathan (Third
brother of the founder) had played a vital part in executing this order through
dedicated hard work spending sleepless nights to deliver the machine of the
right quality on time.
Ahura welding electrode Limited was in the process of
expansion and they wanted to indigenous certain machines for their welding
plant. They having come to know about the acumen of the company had favoured the
company with orders for complete plant for manufacturing welding electrode. The
company was able to supply the machine at a cost of Rs 2.5 Lakhs as against the
imported plant of Rs 10 lakhs, which turned the tables on further for the
group. From there on there was no looking back, the company grew at a scorching
pace with multi products at multi locations.
Since the Company had chartered a growth path, the other two
brother Shri. K.K. Ramachandran and Shri. K.K. Rajan joined the business based
on their expertise in Finance and Marketing respectively.
The growth was accelerated and the following companies come
into existence.
From a small workshop the group has grown into a corporate
with a combined turnover of Rs 2500.000 Millions
Kalapatti an erstwhile obscure sleepy village with lush
greenery predominantly agrarian has transformed into a major Industrial hub
bustling with economic activity providing gainful employment to a huge
populous. They owe it to the Sharp family for such stupendous growth the place
has witnessed.
With a view to spread the wings of the group all the
companies had been bifurcated between the four brothers. Shri K Jaganathan
along with his wife Shrimati J Mohanasundare had started heading this group
since 1992. Sharp electrode Private Limited was started with the single minded
objective of producing world class electrode to cater to the multi various
industrial sectors in India as well as abroad. The company has carved a niche
for itself on par with the global players in the international arena through
top class products catering to Global buyers.
The company has its registered Office at Kalapatti
Coimbatore having manned by a team of multifaceted professionals effectively
supported by highly motivated workforce.
Coimbatore is well connected by Road Rail and Air. Further
its proximity to the Shipping hubs of south India namely Cochin, Chennai and
Tuticorin Ports is a major advantage to further export trade.
They produce about 3000 MT per annum of welding electrodes.
Dry flux powder, cut wire rods, mild steel, low hydrogen, hard facing,
stainless steel, cast iron welding electrodes. About 90% of the production is
served to the International market across the length and breadth of the globe
with specific reference to USA, UK, Dubai, Kuwait, Jordan, Saudi Arabia, Qatar,
Lebanon, Oman, Sri Lanka, Myanmar, Guyana, Trinidadand Tobago, Jamaica Panama
Guatemala Ivory Coast and Zambia. The company has an impeccable track record of
four decades of excellence in the field of welding plants and welding
electrodes. They strive for perfection focusing on the manufacturing processes
and surefire delivery modules enhanced by an ISO 9001: 2000 Certification and
Lloyds approval.
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.47.94 |
|
UK Pound |
1 |
Rs.72.08 |
|
Euro |
1 |
Rs.64.70 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|