MIRA INFORM REPORT

 

 

Report Date :

20.12.2008

 

IDENTIFICATION DETAILS

 

Name :

MONAL CHAINS LIMITED

 

 

Formerly Known As :

MONALFOUNDRIES PRIVATE LIMITED

 

 

Registered Office :

J – 59, MIDC Tarapur, Boisar, Thane – 401506, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

22.04.1981

 

 

Com. Reg. No.:

11-24278

 

 

CIN No.:

[Company Identification No.]

U27300MH1981PLC024278

 

 

IEC No.:

0397021062

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM19528F

 

 

PAN No.:

[Permanent Account No.]

AABCM2084L

 

 

Legal Form :

A Closely Held Public Limited Liability

 

 

Line of Business :

Manufacturer and Trader of All Types of Steel and Other Materials Welded Chains and Fittings.

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company having satisfactory track. Trade relations are fair. Business is active. No complaints have been heard.

 

It would be advisable to take adequate securities while dealing with the subject.

 

The company parted only partial details after a lot of follow – ups based on which this report has been prepared.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Anuj Gupta

Designation :

Executive Director

Contact No.:

91-9820079486

Date :

19.12.2008

 

 

LOCATIONS

 

Registered Office/ Factory :

J – 59, MIDC Tarapur, Boisar, Thane – 401506, Maharashtra, India

Tel. No.:

91-952525-274108/ 91-22-26493055/ 26493057/ 26497383/ 26499266/ 26499293/ 26499241/

Mobile No.:

91-9820079486

Fax No.:

91-952525-274108/ 91-22-26053144/ 26047028/ 26460662

E-Mail :

monalchain@vsnl.net

isichain@bom3.vsnl.net.in

Area :

18000 sq. ft.

Location :

Leased

 

 

Corporate Office :

64, Diana House, 33rd Road, Khar (West), Mumbai – 400052, Maharashtra, India

Tel. No.:

91-22-26499266

 

 

Branch Office :

3477 3rd Floor, Bajrang Bali Street Chawri Bazar, New Delhi – 110001, India

Tel. No.:

91-11-23255045

Fax No.:

91-11-23275045

E-Mail :

monalchain@vsnl.net

Area :

300 sq. ft.

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Rajendra Kumar Gupta

Designation :

Managing Director

Address :

6/528, Sadanand Bhavan, 33rd Khar (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

18.12.1942

Experience :

50 years

Date of Appointment :

01.03.1985

 

 

Name :

Mr. Umesh Kumar Gupta

Designation :

Director

Address :

5/529, Pant Niketan, 33rd, Khar (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

18.10.1952

Experience :

28 years

Date of Appointment :

01.03.1985

 

 

Name :

Mr. Anuj Kumar Gupta

Designation :

Director

Address :

Khar (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

23.09.1968

Qualification :

MBA (Marketing and Finance, (USA)

Experience :

18 years

 

 

Name :

Mrs. Pushpalata Gupta

Designation :

Director

Address :

6/528, Sadanand Bhavan, 33rd Khar (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

15.08.1947

Experience :

40 years

Date of Appointment :

01.03.1985

 

 

Name :

Mrs. Anjali Gupta

Designation :

Director

Address :

6/528, Sadanand Bhavan, 33rd Khar (West), Mumbai – 400052, Maharashtra, India

Date of Birth/Age :

11.01.1959

Experience :

12 years

Date of Appointment :

01.10.1997

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 27.09.2007)

Names of Shareholders

 

No. of Shares

 

 

 

Rajendra Kumar Gupta

 

6995

Rajendra Kumar Gupta HUF

 

15200

Pushpalata Gupta

 

8155

Umesh Kumar Gupta

 

2750

Umesh Kumar Gupta HUF

 

10000

Anjali Gupta

 

1400

Anuj Kumar Gupta

 

4600

Anuj Kumar Gupta HUF

 

5700

Manisha Gupta

 

100

Jairaanom Prakash

 

100

 

 

 

Total

 

55000

 

(As on 30.09.2007)

Category

 

Percentage

 

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of All Types of Steel and Other Materials Welded Chains and Fittings.

 

 

Products :

Products Description

Item Code No

 

 

Iron and Steel Chains and Chains Slings

0124

Steel Chain Slings Wire Slings Wire in Coils

7315

 

 

Terms :

 

Selling :

Credit (30-60-90-200 days)

 

 

Purchasing :

Credit

 

 

GENERAL INFORMATION

 

Customers :
  • Wholesalers
  • OEM’s
  • Retailers
  • Government and Semi Government

 

 

No. of Employees :

44 (Office – 7, Factory – 36 and Branch – 1)

 

 

Bankers :
  • Corporation Bank

Hill Road, Bandra (West), Mumbai – 400050, Maharashtra, India

 

  • ICICI Bank
  • State Bank of India
  • Union Bank of India

 

 

Facilities :

Rs.30.000 Millions from Corporation Bank

 

SECURED LOANS

31.03.2008

(Rs. In Millions)

A-Term Loans From Banks

 

From Corporation Bank

(Secured against land and Building, Plant and Mahinery Electrical Installation, R and D + Testing Equipment and Misc. Installation)

11.904

B-Working Capital Loans From Bank

 

From Corporation Bank

(Cash Credit account is secured by hypothecation of raw materials, finished goods, stores and spares and book debts)

33.520

C-SSDL 70039

1.111

D- Car Loans

 

From ICICI Bank Limited

(Secured Against Car)

0.284

 

 

Total

46.819

 

UNSECURED LOANS

31.03.2008

(Rs. In Millions)

From Banks

6.585

 

20.992

 

 

Total

27.577

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

Bhushan Bensal Jain Associates

Chartered Accountant

Address :

4648/ 21, Darya Ganj, New Delhi – 110002, India

Tel No.:

91-11-23252876/ 23261054

Email :

bbjassociates_rb@yahoo.co.in

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2000000

Equity Shares

Rs.100/- each

Rs.200.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55000

Equity Shares

Rs.100/- each

Rs.5.500 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

5.500

5.500

5.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

10.898

9.493

8.628

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

16.398

14.993

14.128

LOAN FUNDS

 

 

 

1] Secured Loans

46.819

63.308

42.125

2] Unsecured Loans

27.577

27.357

19.005

TOTAL BORROWING

74.396

90.665

61.130

DEFERRED TAX LIABILITIES

6.503

6.503

6.503

 

 

 

 

TOTAL

97.297

112.161

81.761

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

31.138

30.269

33.270

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.100

0.100

0.100

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
50.564

58.043

45.708

 

Sundry Debtors
30.711

21.888

7.886

 

Cash & Bank Balances
5.520

4.072

1.455

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
7.809

3.674

5.221

Total Current Assets
94.604

87.677

60.270

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
24.609

3.104

10.559

 

Provisions
4.016

2.912

1.488

Total Current Liabilities
28.625

6.016

12.047

Net Current Assets
65.979

81.661

48.223

 

 

 

 

MISCELLANEOUS EXPENSES

0.080

0.131

0.167

 

 

 

 

TOTAL

97.297

112.161

81.760

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

 

 

 

 

Sales Turnover

136.558

107.065

88.730

Other Income

0.734

0.797

0.857

Total Income

137.292

107.862

89.587

 

 

 

 

Profit/(Loss) Before Tax

4.088

3.743

3.293

Provision for Taxation

2.679

2.879

1.468

Profit/(Loss) After Tax

1.409

0.864

1.825

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

21.987

18.620

14.895

 

Administrative Expenses

13.587

13.268

11.358

 

Raw Material Consumed

78.388

56.224

60.737

 

Purchases made for re-sale

1.410

1.382

0.000

 

Increase/(Decrease) in Finished Goods

(1.605)

0.503

(12.115)

 

Employees Remuneration

5.896

0.899

0.826

 

Interest

9.357

8.196

6.228

 

Depreciation & Amortization

4.184

5.027

4.365

Total Expenditure

133.204

104.119

86.294

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
1.03

0.80

2.04

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
2.99

3.50

3.71

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
3.25

3.17

3.52

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
24.93

24.96

23.31

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
6.28

6.45

5.18

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.30

14.57

5.00

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

TRADE REFERENCE:

 

 

FORM 8:

 

Corporate identity number of the company

U27300MH1981PLC024278

Name of the company

MONAL CHAINS LIMITED

Address of the registered office or of the principal place of  business in India of the company

Boisar, Thane – 401506, Maharashtra, India

This form is for

Modification of charge

Type of charge

Immovable Property

Book Debts

Movable Property

FA, CA, Stocks

Particular of charge holder

Corporation Bank

Hill Road, Bandra West, Mumbai – 400050, Maharashtra, India

adlalwani@rediffmail.com

Nature of instrument creating charge

Memorandum of Deposit of Tile Deeds

Supplemental Common Deed of Hypothecation

(All the above agreement constitute a single charge)

Date of instrument Creating the charge

28.11.2006

Amount secured by the charge

Rs.74.500 Millions

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

Rate of Interests:

As per agreement attached and as per sanctioned letter of the Bank

 

Terms of Repayment:

As per agreement attached and as per sanctioned letter of the Bank

 

Margin:

As per agreement attached and as per sanctioned letter of the Bank

 

Extent and Operation of the charge:

First charge as per agreement attached and as per sanctioned letter of the Bank

 

Others:

As per agreement attached and as per sanctioned letter of the Bank

Particulars of the property charged

First Charge (Present and future) –

 

Hypothecation of stock in trade and book debts/ Raw materials/ Accessories/ Stock in Process and finished goods, Hypothecation of all movable assets, the fixed assets including P and M and Assets Purchased out of Bank Finance

 

EMG of Plot No J-59 and J-62, MIDC Tarapur Industrial Area, Boisar, District Thane in the Tarapur Industrial Area within the Village Limits of saravalli and outside limit of Municipal Councial in Rural area Taluka and Registered Sub District Palghar Registered District Thane State of Maharashtra

Particulars of the present modification

By present modification limit stands to Rs.74.500 Millions (Cash Credit – Rs.25.000 Millions T L-I = Rs.5.100 Millions, T L-II = Rs.14.900 Millions T L-III = Rs.9.500 Millions, B G = Rs.10.000 Millions, D L Secured = Rs.10.000 Millions) Continued security as given by original charge and by modification, terms and conditions as per agreement attached and as per sanction letter of the bank. 

 

 

FIXED ASSETS:

 

 

 

 

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.47.08

UK Pound

1

Rs.71.17

Euro

1

Rs.66.98

 

 

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

6

--PROFITABILIRY

1~10

4

--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

YES

--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

 

 

 

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