MIRA
INFORM REPORT
|
Report Date : |
30.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MEKINS AGRO PRODUCTS LIMITED |
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Registered Office : |
Plot No. 30, Expansion Programme, Gandhinagar, Hyderabad-500 037,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.07.1984 |
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Com. Reg. No.: |
004860 |
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CIN No.: [Company
Identification No.] |
U01119AP1984PLC004860 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDM00021A |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer and Dealer in all types of Machineries. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 79440000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having fine track. Trade
relations are fair. Business is active. Payments are reported as usually
correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory: |
Plot No.30, Expansion Programme, Gandhinagar, Hyderabad-500 037,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23085959 / 23086305 / 23087804 |
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Fax No.: |
91-40-23087088 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Akhil Agarwal |
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Designation : |
Director |
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Address : |
Plot No. 46, Road No. 2, Jubilee Hills, Hyderabad-500 033, Andhra Pradesh |
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Date of Birth/Age : |
18.06.1954 |
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Date of Appointment : |
20.07.1994 |
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Name : |
Mrs. Anita Agarwal |
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Designation : |
Director |
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Address : |
Plot No.46, Road No. 2, Jubilee Hills, Hyderabad-500 033, Andhra
Pradesh |
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Date of Birth/Age : |
26.09.1953 |
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Date of Appointment : |
20.07.1994 |
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Name : |
Mrs. Sharda Bacasubramanyam |
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Designation : |
Director |
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Address : |
Flat No.117, Manju Ranga Towers, Hyderabad-500 033, Andhra Pradesh |
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Date of Birth/Age : |
25.12.1958 |
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Date of Appointment : |
20.03.1995 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Akhil Agarwal |
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29000 |
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Mrs. Anita Agarwal |
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10000 |
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Mr. Akhil Agarwal Huf |
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41000 |
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Ms. Pooja Agarwal |
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30000 |
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Ms. Devika Agarwal |
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30000 |
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Mr. Mayank Agarwal |
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60000 |
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Mrs. Sharda Balasubramanyam |
|
100 |
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Mr. Akhil Agarwal Family Trust |
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127000 |
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Total |
327100 |
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Percentage of Holding |
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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 Dealer in all types of Machineries. |
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Products : |
v Material
Handling Equipments v Agricultural
Impliments. |
GENERAL
INFORMATION
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Bankers : |
v Punjab National
Bank v Import Export
Bank Of India v EXIM Bank v HDFC Bank |
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Financial
Institutions : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Kamlesh Kumar Bhargava Chartered Accountants |
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Address : |
5-9-22/86, Adarsh Nagar, Pitz Hotel Road, Hyderabad-500 063, Andhra
Pradesh |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/-each |
Rs.15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1470100 |
Equity Shares |
Rs.10/-each |
Rs.14.701Millions |
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 |
14.701 |
14.701 |
14.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
183.904 |
33.904 |
25.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
198.605 |
48.605 |
40.300 |
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LOAN FUNDS |
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1] Secured Loans |
78.762 |
74.012 |
50.500 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
78.762 |
74.012 |
50.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
277.367 |
122.617 |
90.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
202.773 |
50.075 |
103.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
3.185 |
1.935 |
0.400 |
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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 |
15.616
|
10.492 |
7.700 |
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Sundry Debtors |
15.74
|
3.809 |
14.000 |
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Cash & Bank Balances |
2.762
|
4.922 |
3.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
24.654
|
19.401 |
5.300 |
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Total
Current Assets |
58.106
|
38.624 |
30.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
27.592
|
16.264 |
44.100 |
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Provisions |
1.754
|
2.141 |
0.900 |
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Total
Current Liabilities |
29.346
|
18.405 |
45.000 |
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Net Current Assets |
28.760
|
20.219 |
(14.600) |
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MISCELLANEOUS EXPENSES |
42.649 |
50.390 |
2.000 |
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TOTAL |
277.367 |
122.619 |
90.800 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
121.963 |
105.577 |
60.100 |
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Other Income |
2.791 |
4.968 |
2.100 |
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Total Income |
124.754 |
110.545 |
62.200 |
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Profit/(Loss) Before Tax |
6.906 |
7.523 |
3.600 |
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Provision for Taxation |
-- |
-- |
0.200 |
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Profit/(Loss) After Tax |
6.906 |
7.523 |
3.400 |
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Expenditures : |
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Raw Material Consumed |
45.935 |
28.148 |
31.400 |
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Increase/(Decrease) in Finished Goods |
0.168 |
(0.504) |
0.000 |
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Salaries, Wages, Bonus, etc. |
9.285 |
4.860 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
5.700 |
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Managerial Remuneration |
0.868 |
0.841 |
0.000 |
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Payment to Auditors |
0.010 |
0.010 |
0.000 |
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Employee Cost |
0.000 |
0.000 |
5.600 |
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Selling and Administration Expenses |
0.000 |
0.000 |
3.800 |
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Interest |
8.090 |
40.703 |
0.300 |
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Depreciation & Amortization |
6.092 |
2.788 |
2.900 |
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Other Expenditure |
47.398 |
26.174 |
0.000 |
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Total Expenditure |
117.846 |
103.020 |
49.700 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
5.53 |
6.80 |
5.46 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.66
|
7.12 |
5.99 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.88
|
19.47 |
0.11 |
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Return on Investment (ROI) (PBT/Networth) |
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0.03
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0.15 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.15
|
0.37 |
1.11 |
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Current Ratio (Current Asset/Current Liability) |
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1.04
|
1.24 |
(0.33) |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges Report
as per Registry
|
Name of the company |
MEKINS AGRO PRODUCTS LIMITED |
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Presented
By |
Mr. Akhil Agarwal |
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1) Date and description of instrument creating the change |
Unattested Deed of
Hypothecation dated 31.01.2005 executed by Mekins Agro Products Limited
(therein and here in after referred to as the borrower) in favour of
Export-Import Bank of India (“Exim Bank”) a certified true copy whereof is
attached hereto. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Loan upto the
revolving limit of Rs.10.000 Millions together with interest compound
interest, additional interest by way of liquidated damages (in case of
default), costs (legal costs on a full indemnity basis), charges, expenses
and all other monies payable by the Borrower to Exim Bank under the Loan
Agreement dated 31.01.2005 made between the Borrower and Exim Bank. |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The whole of the
Borrower’s movable assets, both present and future, including its moveable
plant and machinery, and current assets, both present and future pertaining
to the contract. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge
created by the aforesaid Deed of Hypothecation shall operate as a continuing
security by way of a paripassu first charge over the Borrower’s moveable
fixed assets and paripassu exclusive charge over the Borrower’s current
assets,pertaining to the contract for the due repayment by the borrower to
Exim Bank of the Loan of Rs.10.000 Millions together with payment of
interest, compound interest, additional interest by way of liquidated damages
(in case of default), costs (legal costs on a full indemnity basis), charges,
expenses and all other monies, payable by the borrower to Exim Bank in terms
of said loan Agreement. |
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5) Name and Address and description of the person entitled to the charge. |
Export-Import
Exim Bank of India, Centre One
Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai-400 005 |
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6) Date and brief description of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
NA |
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This form is for |
Modification of
charge |
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Charge identification
number of the charge to be modified |
90129325 |
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Corporate
identity number of the company |
U01119AP1984PLC004860 |
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Name of the
company |
MEKINS AGRO
PRODUCTS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
Plot No. 30,
Expansion Programme, Gandhinagar, Hyderabad-500 037,Andhra Pradesh |
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Type of charge |
v
Immovable
Property v
Movable
Property |
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Particular of
charge holder |
Punjab National
Bank M G Road Branch,
Ranigunj Circle, Secunderabad-500 003, Andhra Pradesh E-mail: bo3631@pnb.co.in |
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Nature of
description of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
22.06.2007 |
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Amount secured by
the charge |
Rs.152.420
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest v
Cash credit
Facility – bank’s prime lending rate+2% with a minimum of 15% per annum v
Term loan –
I, II and III – bank’s prime lending rate + 2% with a minimum of 13.50% per
annum v
Packing
credit – bank’s prime lending rate-3.25% with a minimum of 9.75% per annum. Terms of
repayment v
Cash Credit,
packing credit, foreign/inland bills purchasing – one year and renewable from
time to time based on the company’s performance. v
Term loan I
– repayable in 84EMI of Rs.0.060 Millions each. Term loan II – repayable in
84 EMI of Rs.0.179 Million v
Term loan
III – repayable in 72 EMI of Rs. 0.179 million each. Margin v
Cash credit
-30%, packing credit -20% v
Foreign/inland
bills purchase-NIL v
Foreign/inland
letter of Guarantee-10% by way of cash/ FDR v
Term loan –
I – 25% Extent operation
of the charge Exclusive Charge. |
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Short particulars
of the property charged |
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Date of latest
modification prior to the present modification |
24.08.2006 |
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Particulars of
the present modification |
Overall limites have
been increased from Rs.92.420 Millions to Rs. 152.420 Millions with
enhancement in Fund Based facilities from Rs.15.000 Millions to Rs.25.000
Millions, enhancement in non fund based facilities from Rs.5.000 Millions to
Rs.25.000 Millions and fresh sanction of term loan –I of Rs.5.000 Millions,
Term loan – II of Rs. 15.000 Millions and Term loan – III of Rs.15.000
Millions |
Fixed Assets:
v Land
v Factory building I
v Factory building II
v Plant and Machinery
v Electrical Fittings
v Computer and Accessories
v Air Conditioner and Air Cooler
v Jigs and Fixture
v Generator Set
v Sports Equipment
v Tools and Spares
v Electric Installation
v Furniture and Fixture
v Office Equipment
v Cycle
v Motor Cycle and Moped
v Transport Vehicle
v Motor Car
As per website details:
Subject was
incorporated in the year 1978 at Hyderabad City, INDIA.
Subject commenced its activities developing agricultural machinery with a
technical tie-up with ICRISAT (A UN Body).
Subject later diversified into the line of Material Handling & Retail
Storage Equipments by setting up two manufacturing units of around 95,000 sq.ft. to meet the growing
demand in the international market for these products. Subject today is an ISO
9001:2000 Company for quality management and design & development. Further,
Subject is the first
company in South Asia to be certified by EPAL (European Pallets Association
Lannach, Austria)
to manufacture and supply of export quality exchangeable steel pallets to
various European Countries.
Today subject’s products travel across the globe and they have been satisfying
large multinationals and Fortune 500 Companies. Subject’s products are
regularly exported to countries like France, Germany, Italy, Nigeria, Switzerland,
Tajikistan, UK, USA and the list goes on.
Awards
and Achievements
Subject
has bagged numerous prestigious awards such as:
v Outstanding
Export Performance 1985-86,1986-87
v First
National Award for Quality Products 1986
v Best
Export Effort in the state - FAPCCI
v Export
Award - Regional Special Shield 1987-88, 1991-92
v Outstanding
Export Award - Engineering Export Promotion Council
v European
Pallets Association Lannach (EPAL Certification) - 2002
v Case
study published by Export Import Bank of India 1993 & 2006
v Case
study published by International Trade Centre
v
Geneva (UN Organisation) Nov 2004
Exports:
Today Mekins products travel across the globe and they have been satisfying large
multinationals and Fortune 500 Companies. Mekins products are regularly
exported to countries like France,
Germany, Italy, Nigeria, Switzerland,
Tajikistan, UK, USA and the list goes on.
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.39.39 |
|
UK Pound |
1 |
Rs.78.40 |
|
Euro |
1 |
Rs.58.73 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
- |
|
--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 |
|
58 |
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 |
|