MIRA
INFORM REPORT
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Report Date : |
27.12.2008 |
IDENTIFICATION DETAILS
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Name : |
mpp technologies private limited |
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Formerly Known As : |
metal profile products |
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Registered Office : |
487/C, 4th Phase, 14th Cross, Peenya Industrial
Estate, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.08.1997 |
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Com. Reg. No.: |
08-22626 |
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CIN No.: [Company
Identification No.] |
U31909KA1997PTC022626 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM01402C |
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PAN No.: [Permanent
Account No.] |
AABCM8851H |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer, Importer
and Exporter of all types of Heat Exchangers, Transformers, Radiators and
Other Heat Exchangers Systems. |
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 300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track.
Trade relations are fair. Business is active. No complaints have been heard. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
487/C, 4th Phase, 14th Cross, Peenya Industrial
Estate, |
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Tel. No.: |
91-80-41171187 / 41177523 / 28361567 |
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Mobile No.: |
91-9886234972 |
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Fax No.: |
91-80-28362704 / 28360304 |
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E-Mail : |
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Website : |
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Corporate Office : |
A 153 and 154, III Cross,
1st Stage, Peenya Industrial Estate, |
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Tel. No.: |
91-80-839 4918 / 839 5179 |
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Fax No.: |
91-80-839 4304 |
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Factory : |
B-233, 2nd Stage, Peenya Industrial Estate, |
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Tel. No.: |
91-80-836 1567 |
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Fax No.: |
91-80-836 2704 |
DIRECTORS
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Name : |
Mr. Mohandas Dejoo Shetty |
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Designation : |
Managing Director |
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Address : |
No. 41, Kuteera 80, |
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Date of Birth/Age : |
24.11.1943 |
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Qualification : |
BE (Mech), MS ( |
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Experience : |
26 Years |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mr. Malleshaiah Devarajaiah |
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Designation : |
Director |
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Address : |
No. 228, 15th Cross, 2nd Stage, 2nd
Phase, Mahalakshmi Layout, |
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Date of Birth/Age : |
24.05.1954 |
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Date of Appointment : |
31.03.1998 |
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Name : |
Mrs. Susheela Hegde |
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Designation : |
Director |
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Address : |
No. 41, Kuteera 80, |
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Date of Birth/Age : |
29.03.1926 |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mr. Hannah Mohandas Shetty |
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Designation : |
Director |
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Address : |
No. 41, Kuteera 80, |
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Date of Birth/Age : |
12.04.1948 |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mr. Renne Mohandas Shetty |
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Designation : |
Director |
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Address : |
No. 41, Kuteera 80, |
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Date of Birth/Age : |
17.02.1976 |
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Name : |
Mr. Ashok Dejoo Shetty |
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Designation : |
Director |
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Address : |
Shubha Chandra, |
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Date of Birth/Age : |
02.03.1947 |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mr. Muthayya Shetty |
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Designation : |
Director |
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Address : |
# 21, J B Kaval, 6 Main III Cross, Industrial Workers Layout, |
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Date of Birth/Age : |
15.08.1938 |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mrs. Susheela Bujanga Hegde |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
29.03.1923 |
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Date of Appointment : |
08.08.1997 |
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Name : |
Mr. AP Krishna Kumar |
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Designation : |
Director |
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Address : |
# 20, Skanda, 1st |
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Date of Birth/Age : |
21.09.1959 |
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Date of Appointment : |
09.02.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 27.08.2007)
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Names of Shareholders |
No. of Shares |
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Mohandas Dejoo Shetty |
67460 |
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Muthayya Kurnad Shetty |
500 |
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Susheela Hegde |
24500 |
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Hannah Mohandas Shetty |
10500 |
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Renne Mohandas Shetty |
3500 |
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Ashok Dejoo Shetty |
500 |
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Malleshaiah Devarajaiah |
500 |
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Harishchandra Dejoo Shetty |
50 |
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Harish C Panth |
6540 |
Equity share breakup
(percentage of total equity)
(As on
30.09.2007)
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Category |
Percentage |
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Directors or relatives of directors |
95.66 |
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Other top fifty (50) shareholders
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4.34 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Importer
and Exporter of all types of Heat Exchangers, Transformers, Radiators and
Other Heat Exchangers Systems. |
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Products : |
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PRODUCTION STATUS
(As on 31.03.2007)
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Particulars |
Unit |
Actual
Production |
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Control Panel Components |
Nos. |
463088 |
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Stator Stacks and Pole Bricks, DBR Assembly |
Nos. |
3294 |
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Transformer Tank and Part (Export) |
Nos/Sets |
7701 |
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Door and Door Frames |
Nos. |
24192 |
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Scrap |
Kgs |
631420 |
GENERAL INFORMATION
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Suppliers : |
·
M/s Arvee Chemicals ·
Protective Coatings Private Limited ·
Jyothi Engineering Components ·
LPV Paints ·
SLV Industries ·
Spring Star Industries ·
Vishva Shilpi Industries ·
Premier Timbers |
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Bankers : |
State Bank of MID Corporate Loan, Administration Unit, No.61, |
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Facilities : |
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- |
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Banking
Relations : |
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Auditors : |
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Name : |
K G Jaisimha Chartered Accountant |
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Address : |
766, Sri Nivasa, 36th Cross, 18th Main, 4th
Block, Jayanagar, Bengalooru – 560 041, |
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Associates/Subsidiaries : |
Thermal Transfer Products
Private Limited |
CAPITAL STRUCTURE
(As on
30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.100/- each |
Rs.500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
187669 |
Equity Shares |
Rs.100/- each |
Rs.18.767
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 |
18.767 |
18.767 |
11.470 |
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2] Share Application Money |
8.120 |
0.000 |
0.000 |
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3] Reserves & Surplus |
33.089 |
19.529 |
12.420 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
59.976 |
38.296 |
23.890 |
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LOAN FUNDS |
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1] Secured Loans |
90.169 |
63.356 |
38.517 |
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2] Unsecured Loans |
19.019 |
0.367 |
0.854 |
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TOTAL BORROWING |
109.188 |
63.723 |
39.371 |
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DEFERRED TAX LIABILITIES |
0.734 |
0.739 |
0.923 |
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TOTAL |
169.898 |
102.758 |
64.184 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
63.770 |
38.501 |
21.594 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
55.346
|
32.334 |
32.714 |
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Sundry Debtors |
83.713
|
56.698 |
39.703 |
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Cash & Bank Balances |
1.458
|
0.105 |
0.561 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
36.085
|
11.290 |
5.747 |
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Total
Current Assets |
176.602
|
100.427 |
78.725 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
63.580
|
34.583 |
34.336 |
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Provisions |
7.025
|
1.674 |
1.855 |
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Total
Current Liabilities |
70.605
|
36.257 |
36.191 |
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Net Current Assets |
105.997
|
64.170 |
42.534 |
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MISCELLANEOUS EXPENSES |
0.131 |
0.087 |
0.056 |
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TOTAL |
169.898 |
102.758 |
64.184 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
|
416.300 |
285.800 |
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Other Income |
|
3.500 |
3.300 |
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Total Income |
|
419.800 |
289.100 |
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Profit/(Loss) Before Tax |
|
20.600 |
6.000 |
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Provision for Taxation |
|
7.000 |
2.000 |
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Profit/(Loss) After Tax |
|
13.600 |
4.000 |
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Earnings in Foreign Currency : |
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Export Earnings |
|
73.703 |
43.255 |
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Freight Charges, Insurance and etc. (Net) |
|
6.286 |
10.337 |
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Total Earnings |
|
79.989 |
53.592 |
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Imports : |
|
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Raw Materials |
|
3.627 |
2.137 |
|
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Stores & Spares |
|
1.056 |
0.000 |
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Capital Goods |
|
14.928 |
15.917 |
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Others |
|
2.173 |
0.156 |
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Total Imports |
|
21.784 |
18.210 |
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Expenditures : |
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Depreciation & Amortization |
|
9.000 |
6.200 |
|
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Other Expenditure |
|
390.200 |
276.900 |
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Total Expenditure |
|
399.200 |
283.100 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
3.24
|
1.38 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
4.95
|
2.10 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.57
|
4.32 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.35
|
0.16 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.99
|
2.61 |
3.16 |
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Current Ratio (Current Asset/Current Liability) |
|
2.50
|
2.77 |
2.18 |
LOCAL AGENCY FURTHER INFORMATION
Trade References
·
Crompton Greaves Limited
1, Dr. V. B. Gandhi
Marg, Mumbai - 400 001,
Tel. No. 91-22-267
7525 / 267 6610
Fax No. 91-22-202
8225 / 262 5814
·
Crompton Greaves Limited,
·
Bharat Heavy Electricals
Limited
BHEL House, Siri
Fort,
Tel. No. 91-11-649
3031
Fax no. 91-11-649
2766
·
Bharat Heavy Electricals
Limited,
·
NGEF Limited
P. B. No. 3876,
Tel. No. 91-80-524
3719
Fax No. 91-80-524
1634
Form No. 8
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Corporate
identity number of the company |
U31909KA1997PTC022626 |
|
Name of the
company |
mpp technologies private limited |
|
Address of the
registered office or of the principal place of business in |
487/C, 4th Phase, 14th Cross, Peenya Industrial
Estate, |
|
This form is for |
Modification of
charge |
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Type of charge |
Immovable
property |
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Particular of
charge holder |
State Bank of MID Corporate Loan, Administration Unit, No.61, |
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Nature of
instrument creating charge |
Form B |
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Date of
instrument Creating the charge |
05.04.2008 |
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Amount secured by
the charge |
Rs.799.300
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate
of interest CC : Interest @ 1.00% below SBAR, present effective rate 11.25% p.a.
with monthly rests TL : Interest @ 0.50% below SBAR, minimum 11.75% p.a. with monthly
rests ·
Terms
of repayment CC : Repayable on demand TL : Repayable as per schedule ·
Margin CC : 25% TL : 30% ·
Extent
and operation of the charge Charge extends on all the assets throughout the period of sanctioned
limits by way of first charge in respect of the credit facilities sanctioned
to : M/s. TTP Technologies Private Limited, M/s. MPP Technologies Private Limited, Bangalore Rs.252.300 millions Total Rs.799.300 millions ·
Others Corporate Guarantee offered by M/s. MPP Technologies Private Limited
to M/s. TTP Technologies Private Limited, |
|
Particulars of
the property charged |
EM on co’s
immovable properties situated at A-153 and A-154, 3rd Cross,
Peenya Industrial Estate, Bangalore – 560 058 |
|
Particulars of
the present modification |
Total limits
enhanced from Rs.252.300 millions to Rs.799.300 millions All other terms, conditions
and existing securities to continue. |
FINANCIAL
PERFORMANCE
Sales Turnover
During the year the company achieved Net Sales of Rs.416.300 millions,
registering a growth of 45.66% over the previous year. The company’s strategic
initiatives aimed at a more balanced portfolio in terms of increased customer
base and added product lines yielded good results. This growth has been
achieved despite stiff competition both in the domestic and export markets.
Having consolidated its market position in the existing product lines, the
company’s efforts in various directions, such as widening customer base,
entering new markets and new product range has contributed to this growth.
The company’s focus on exports continued with export volumes growing by 49.25%, including forex gains on account of currency fluctuations and domestic sales grew by an encouraging 44.83% over the previous year.
Consequent to the implementation and commissioning of new Corrugated Tank Project, with the participation of M/s. Crompton Greaves Limited, in Tumkur, which is expected to commence commercial production in the second half of the ensuing year, both domestic as well as export sales, is expected to grow exponentially.
The joint venture strategy of entering into this newer segment of Corrugated Tanks, for power transmission and distribution industry with CGL’s support, will help the company acquire both technological and marketing support. This will not only augment exports thrust but also in maintaining its present position in the market, take advantage of early market entry opportunity.
Profitability
Profit for the year before depreciation, interest and taxation was
Rs.29.600 millions as compared to Rs.12.200 millions in the previous year. Net
Profit after tax margin improved from 1.45% to 2.95%. Implementation of
improved process technology and cost control measures significantly increased
operating margins. The company continues with its rigorous cost restructuring
exercises, optimum utilization of available resources and right sizing in
almost all areas. They are confident of sustaining this improved profitability
in the coming years.
FUTURE PROSPECTS
The Indian economy has been growing between 6-8% p.a. for the last three
years making it one of the fastest growing economies in the world. There are
concerted efforts being made to achieve 10% growth.
This revival of the Indian and global economy, industrial revival
(especially electrical and electronics), the successful entry into Aluminum
Fabrication, additional capacity built for development of steel doors and
windows (including fire rated doors), assembling and wiring of control panels
are factors that augur well for the company. The major customer M/s. ABB
Limited,
Based on the strength of core competence in fabrication, the company’s
foray into manufacturing of metal doors including fire rated doors, under an
exclusive license from “M/s. System Schroedors”,
To augur sale of fire rated doors in the growing domestic market, the
doors were successfully tested and certified to “Fire and Smoke Resistance” as
per IS Standard, at the newly established “Building Fire Research Centre
(BRFC)” at Mysore, established in 2006 by National Institute of Engineering
(NIE). The doors withstood the fire and smoke for more than 2 hours and this
certification help consolidate and enlarge competitive domestic market.
EXPANSION
PLAN
To meet the growing demand for Corrugated Tanks the implementing and
commissioning of new manufacturing facility, with the joint venture with M/s.
Crompton Greaves Limited, Mumbai, in Tumkur will help exponentially both in
domestic as well as overseas market. The proposed new project will to cater to
power distribution segment, having relatively high gap between demand and
supply.
The implementation of joint venture project is progressing well and is
on target with regard to civil works and procurement machinery. The “Fin
Folding Machine” from GEORG,
QUALITY COMMITMENT
The companies commitment to quality was reaffirmed by the renewal and up
gradation of the quality certification from KEMA a Dutch Quality Certification
Agency and grant of ISO 9001 of 2000 certificate. Continuous training and
orientation is carried out in respect of the said ISO standards both the
manufacturing and non-manufacturing functions. In its pursuit of improving the
quality and commitment to environment during the year under report, the company
aiming to acquire ISO 14000 from M/s. NVT Quality Certification Private
Limited.
FIXED ASSETS
·
Land and Building
·
Furniture and Fixtures
·
Plant and Machinery
·
Tools and Equipments
·
Office Equipments
·
Computer and Peripherals
·
Type Writer
·
Vehicles
·
Cycle
·
Material Lift
WEB DETAILS
Profile
Subject, Bangalore, India, manufactures a wide range of sheet-metal fabricated products, using carbon steel, stainless steel and aluminium, to meet specific needs of customers spread all over the world.
The product range includes panels, enclosures and tanks for power / distribution transformers. In addition to standard enclosures, custom-built panels, motor bodies, pressed components, corrugated components, cable box and other fabricated parts of transformer tanks, heavy fabricated items are manufactured. The company has widened its production base to cover applications in the area of communication, machine tools, power electronics and instrumentation.
High-quality new products are developed, utilizing the
advanced testing facilities available at the Central Power and Research
Institute (CPRI), a premier test house set up by the Government of India in
Manufacturing
Facilities
Subject production facilities include a variety of computerized and special
equipment for all types of sheet-metal
work of world-class standards.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.47.89 |
|
|
1 |
Rs.70.84 |
|
Euro |
1 |
Rs.67.37 |
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 |
NO |
|
--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 |
|