MIRA
INFORM REPORT
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Report Date : |
05.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEW ALLENBERRY WORKS – DIVISION OF DEEPAK INDUSTRIES LIMITED |
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Formerly Known As : |
DEEPAK INDUSTRIES LIMITED |
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Registered Office : |
16, Hare Street, Kolkata – 700001, West Bengal |
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Country : |
India |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
08.05.1954 |
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Com. Reg. No.: |
021638 |
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CIN No.: [Company
Identification No.] |
L63022WB1954PLC021638 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKN01202F |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Automotive Transmission Gears and has many
cutting edge technologies in the field of Transmission Gears. |
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 19444 |
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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 an old established company having moderate track. The
company benefit margin is under severe pressure. It’s payments are reported as
slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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LOCATIONS
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Registered Office : |
16, Hare Street, Kolkata – 700001, West Bengal |
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Email : |
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Factory : |
14/7, Mathura Road, Faridabad – 121003, Haryana, India |
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Tel. No.: |
91-129-6451260/65 |
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Fax No.: |
91-129-2275525 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Rahul Chomal |
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Designation : |
Director |
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Address : |
37, Jubilee Parkall Premises, 94 Jadavpur, Kolkata – 700033, West
Bengal, India |
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Date of Birth/Age : |
20.10.1980 |
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Date of Appointment : |
24.09.2007 |
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Name : |
Mr. Anand Prasad Agarwal |
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Designation : |
Director |
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Address : |
271, Rabindra Sarani, Kolkata – 700006, West Bengal, India |
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Date of Birth/Age : |
05.11.1951 |
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Date of Appointment : |
30.03.2002 |
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Name : |
Mr. Suresh Chand Mohta |
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Designation : |
Director |
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Address : |
32, Prasanna Kumar Tagore Street, 1st Floor, Kolkata –
700006, West Bengal, India |
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Date of Birth/Age : |
30.05.1950 |
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Date of Appointment : |
09.08.1995 |
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Name : |
Mr. Sujit Chakravorti |
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Designation : |
Nominee Director |
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Address : |
17/7, James Long Sarani, Nafar Ch-Andra Das Road, Behala, S 24 PGS,
Kolkata – 700034, West Bengal, India |
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Date of Birth/Age : |
13.09.1943 |
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Date of Appointment : |
22.11.2000 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Sitaram Daga |
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10 |
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Mr. Pradip Kumar Daga |
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40 |
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Mr. Madanlal Lakhotia |
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10 |
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Mr. Hiralal Maheswari |
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10 |
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Mr. Ramjilal Saraogi |
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10 |
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Mr. Purushottamdas Pasari |
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10 |
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Mr. Kshitish Chandra Dasgupta |
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10 |
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Total |
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100 |
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Category |
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Percentage |
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Government Companies |
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20.74 |
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Public Financial Companies |
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17.92 |
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Nationalised or other banks |
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8.76 |
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Other top fifty shareholders (Other than listed above) |
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52.58 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Automotive Transmission Gears and has many
cutting edge technologies in the field of Transmission Gears. |
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Products : |
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GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
800 |
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Bankers : |
Commercial Branch, 24, Park Street, Kolkata – 700016, West Bengal,
India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Singhi and Company Chartered Accountant |
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Address : |
1-B, Old Post Office Street, Kolkata – 700001, West Bengal, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5500000 |
Equity Share |
Rs.10/- each |
Rs.55.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3248100 |
Equity Share |
Rs.10/- each |
Rs.32.481
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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30.09.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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32.481 |
32.481 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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14.339 |
15.063 |
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4] (Accumulated Losses) |
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(41.959) |
(75.941) |
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NETWORTH |
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4.861 |
(28.397) |
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LOAN FUNDS |
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1] Secured Loans |
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160.291 |
274.037 |
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2] Unsecured Loans |
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4.082 |
33.912 |
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TOTAL BORROWING |
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164.373 |
307.949 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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169.234 |
279.552 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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142.611 |
146.788 |
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Capital work-in-progress |
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11.113 |
1.388 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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107.420 |
156.587 |
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Sundry Debtors |
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170.738 |
161.601 |
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Cash & Bank Balances |
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6.776 |
3.479 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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56.901 |
25.324 |
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Total
Current Assets |
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341.835 |
346.991 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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270.552 |
174.977 |
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Provisions |
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55.773 |
40.695 |
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Total
Current Liabilities |
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326.325 |
215.672 |
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Net Current Assets |
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15.510 |
131.319 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.057 |
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TOTAL |
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169.234 |
279.552 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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30.09.2006 |
31.03.2005 |
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Sales Turnover |
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1830.544 |
925.079 |
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Other Income |
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5.461 |
3.903 |
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Total Income |
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1836.005 |
928.982 |
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Profit/(Loss) Before Tax |
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35.209 |
26.442 |
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Provision for Taxation |
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33.982 |
0.000 |
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Profit/(Loss) After Tax |
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1.227 |
26.442 |
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Export Value |
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N.A. |
N.A. |
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Import Value |
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N.A. |
N.A. |
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Expenditures : |
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Raw Material Consumed |
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987.646 |
468.551 |
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Purchases made for re-sale |
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0.000 |
0.000 |
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Consumption of stores and spares parts |
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109.290 |
55.301 |
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Increase/(Decrease) in Finished Goods |
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37.874 |
35.197 |
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Salaries, Wages, Bonus, etc. |
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207.405 |
112.192 |
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Managerial Remuneration |
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0.086 |
0.039 |
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Payment to Auditors |
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0.468 |
0.341 |
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Interest |
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60.796 |
32.592 |
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Insurance Expenses |
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2.044 |
1.143 |
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Power & Fuel |
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65.952 |
35.701 |
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Depreciation & Amortization |
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40.516 |
27.627 |
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Other Expenditure |
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288.719 |
133.856 |
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Total Expenditure |
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1800.796 |
902.540 |
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KEY RATIOS
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PARTICULARS |
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30.09.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.07 |
2.85 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.92 |
2.86 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.28 |
5.35 |
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Return on Investment (ROI) (PBT/Networth) |
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7.24 |
(0.93) |
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Debt Equity Ratio (Total Liability/Networth) |
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100.95 |
(18.44) |
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Current Ratio (Current Asset/Current Liability) |
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1.05 |
1.61 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
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Corporate identity
number (CIN) Foreign company registration number |
L63022WB1954PLC021638 |
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Name of the
Company |
DEEPAK INDUSTRIES LIMITED |
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Address |
16, Hare Street, Kolkata – 700001, West Bengal, India |
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This form is for |
Creation of
Charge |
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Type of Charge |
Book Debts Movable Property
(Not being pledge) Floating Charge |
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Particulars of
the charge holder |
State Bank of
India Commercial Branch, 24, Park Street, Kolkata – 700016, West Bengal,
India |
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Nature or
description of the instrument(s) creating or modifying the charge |
Agreement of
Hypothecation of Goods and Assets (Read with Letter
regarding the grant of individual limits within the overall limit) |
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Date of the
instrument creating or modifying the charge |
15.10.2007 |
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Amount secured by
the charge |
Rs.20.000
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interest
: As stipulated by the
Bank from time to time as per the Banking norms and RBI Guidelines. Terms of
repayment : As may be
stipulated by the Bank from time to time Margin : As stipulated by
the Bank for the respective assets from time to time Extent and
operation of the charge : First Charge on
the whole of the hypothecated assets. |
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Short particulars
of the property charged (including location of the property) |
All goods book
debts and all other movable assets of the borrower including document of title
to the goods, outstanding moneys, receivables, claims, bills, invoices,
contracts, investments, plant and machinery both present and future and all
other current assets by way of first charge. |
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Particular of the
present modification |
N.A. |
Company Profile:
Established in 1971, subject is one of the leading
manufacturers of Automotive Transmission Gears and has many cutting edge
technologies in the field of Transmission Gears. Subject has been successfully
achieving one milestone after another in the field of manufacturing Automotive
Transmission Gears during establishment. Subject started out with Spur and
Helical engines and Transmission gears, for application in tractors only.
With the phenomenal growth of the automobile industry in India, the demand for
transmission gears also increased rapidly to maintain a high quality
manufacturing of gears for the vehicles produced in foreign collaboration,
producing around 200 thousand components of 150 different verities per mo
Subject manufactures the spectrum of products like:
- Wider and encompasses Gears Shafts,
- Axle Shafts,
- Bevel Gears and
- Pinions etc.,
For varied application viz:
- Commercial vehicles,
- Tractors,
- Passenger cars and
- Two wheelers.
It has attained the distinction of being the largest gear
manufacturing company in north India. Subject is among the most preferred
brands of Transmission Gears in Automotive industry both for OEM's as well as
'After Market'.
1996: CQ
VENDOR AWARDS FROM M/S. TELCO LIMITED, PUNE IN DEC, 1996
1999: ACCREDITATION
OF ISO 9002 CERTIFICATE IN APR, 1999.
2001: SELF
CERTIFICATION AWARD FROM M/S. MAHINDRA AND MAHINDRA LIMITED (TD), MUMBAI
IN
JAN, 2001
2001: ACCREDITATION
OF QS 9000 CERTIFICATE IN FEB, 2001.
2002: SELF CERTIFICATION AWARD FROM TAFE IN NOV
2002.
FUTURE PLAN - TO GET TS 16949
Quality:
QUALITY OBJECTIVES:
- To produce quality goods through
effective process controls, training and employees motivation, fostering
team spirit, creating congenial atmosphere and better house keeping.
- To achieve customer's satisfaction by
consistently meeting his requirement and speedy redressal of' customers'
complaints.
- The quality policy is given a wide
publicity among all employees of the organization to enable them to
implement the policy in their day to day operation.
COMMITMENT FOR QUALITY:
The management is fully committed
to the implementation of the Quality Policy, Quality Objectives and Quality
System described in the Quality Manual and Quality System Procedure.
QUALITY
POLICY:
Customers Satisfaction shall be the focal point of all their
activities. The policy is to attain customers satisfaction by providing
products and services, which consistently meet or exceed customers requirement
and be the leader in the market they serve.
Overseas
Customers Located at:
- Poland
- Turkey
- Sri Lanka
- Bangladesh
- Dubai
- Nepal
- Iran
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.39.38 |
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UK Pound |
1 |
Rs.77.48 |
|
Euro |
1 |
Rs.58.38 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
46 |
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 |
|