MIRA
INFORM REPORT
|
Report Date : |
10.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CVM PRECISION PRODUCTS PRIVATE LIMITED |
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Registered Office : |
M.S.R. Industrial Estate, Gokula Extension, Bangalore – 560054 ,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.12.1996 |
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Com. Reg. No.: |
08-021576 |
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CIN No.: [Company
Identification No.] |
U29130KA1996PTC021576 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRC01516E |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Gears, Pinions, Shafts, Outerrace, Endcaps
and Pulleys. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 66524 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track
records. Company’s profitability is
under severe pressure. It has some
accumulated losses. Payments are
reported as slow but correct. The Company can be considered normal for business dealings with slight
caution initially. No clear credit can be granted |
LOCATIONS
|
Registered Office/Factory : |
M.S.R. Industrial Estate, Gokula Extension, Bangalore 560054,
Karnataka, India |
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Tel. No.: |
91-80-3603142 / 3608937 / 23602921/41275481 |
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Fax No.: |
91-80-23608937/41275483 |
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Email: |
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Corporate Ofice: |
37 A, 3rd Main Road, Doddenakundi Industrial Area,
Mahadevapura Post, Bangalore 560048, Karnataka, India |
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Tel. No.: |
91-80-41163051 |
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Fax No.: |
91-80-41157925 |
DIRECTORS
|
Name : |
Mr. T. R. Premaleela |
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Designation : |
Director |
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Address : |
No. 26, Defence Colony, 2nd Main, Inoiramasar, Bangalore,
Karnataka, India |
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Date of Birth/Age : |
23.09.1947 |
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Date of Appointment : |
21.12.1996 |
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Name : |
V. C. Sandhya |
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Designation : |
Director |
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Address : |
26, II Main Defence Colony, Indiranagar, Bangalore 560038, Karnataka,
India |
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Date of Birth/Age : |
07.07.1971 |
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Date of Appointment : |
31.12.1996 |
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Name : |
Mr. V. C. Dhanya |
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Designation : |
Director |
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Address : |
26, II Main Defence Colony, Indiranagar, Bangalore 560038, Karnataka,
India |
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Date of Birth/Age : |
19.12.1978 |
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Date of Appointment : |
20.06.2000 |
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Name : |
Mr. M. C. Velayudhan |
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Designation : |
Chairman Cum Managing Director |
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Address : |
26, II Main Defence Colony, Indiranagar, Bangalore 560038, Karnataka,
India |
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Date of Birth/Age : |
15.06.1939 |
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Date of Appointment : |
31.12.1996 |
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Name : |
Mr. V. C. Deepa |
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Designation : |
Director |
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Address : |
26, II Main Defence Colony, Indiranagar, Bangalore 560038, Karnataka,
India |
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Date of Birth/Age : |
21.12.1967 |
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Date of Appointment : |
31.12.1996 |
KEY EXECUTIVES
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Name : |
Mr. Seetapathi Nagappa |
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Designation : |
Company Secretary |
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Address : |
No.669, 8th , B Main, II Block, III Phase, Manjunath Nagar,
Bangalore – 560010, India |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
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M. C. Velayudhan |
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72000 |
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V. C. Deepa |
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36000 |
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V. C. Sandhya |
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36000 |
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V. C. Dhanya |
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36000 |
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Total |
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180000 |
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Equity Share
Break-up |
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Percentage |
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Directors or relatives of the Directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Gears, Pinions, Shafts, Outerrace, Endcaps
and Pulleys. |
GENERAL
INFORMATION
|
Bankers : |
·
Canara Bank,
III Block, Rajajinagar, Bangalore 560010, Karnataka, India ·
ICICI Bank ·
CITI Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
T. R. Varadarajan and Associates Chartered Accountants |
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Address : |
No. 2, 1st floor, Near Bhashyam Circle, 5th
Block, Rajajinagar, Bangalore 560010, Karnataka, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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180000 |
Equity Shares |
Rs. 100/- each |
Rs. 18.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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18.000 |
2.000 |
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2] Share Application Money |
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0.000 |
11.276 |
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3] Reserves & Surplus |
|
0.000 |
0.000 |
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4] (Accumulated Losses) |
|
(1.369) |
(2.238) |
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NETWORTH |
|
16.631 |
11.038 |
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LOAN FUNDS |
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1] Secured Loans |
|
52.644 |
35.626 |
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2] Unsecured Loans |
|
0.000 |
3.914 |
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TOTAL BORROWING |
|
52.644 |
39.540 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
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69.275 |
50.578 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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28.323 |
26.129 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.012 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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18.807 |
15.252 |
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Sundry Debtors |
|
23.611 |
5.729 |
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Cash & Bank Balances |
|
1.849 |
0.788 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
7.748 |
8.016 |
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Total
Current Assets |
|
52.015 |
29.785 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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9.369 |
3.916 |
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Provisions |
|
1.696 |
1.436 |
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Total
Current Liabilities |
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11.065 |
5.352 |
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Net Current Assets |
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40.950 |
24.433 |
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MISCELLANEOUS EXPENSES |
|
0.002 |
0.004 |
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TOTAL |
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69.275 |
50.578 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
|
79.115 |
22.937 |
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Other Income |
|
5.228 |
0.350 |
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Total Income |
|
84.343 |
23.287 |
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Profit/(Loss) Before Tax |
|
1.129 |
(4.175) |
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Provision for Taxation |
|
0.260 |
0.000 |
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Profit/(Loss) After Tax |
|
0.869 |
(4.175) |
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Export Value |
|
57.096 |
4.966 |
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Import Value |
|
1.149 |
6.169 |
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Expenditures : |
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Cost of Goods Sold |
|
6.431 |
2.165 |
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Manufacturing Expenses |
|
4.421 |
4.215 |
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Depreciation & Amortization |
|
0.000 |
0.000 |
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Other Expenditure |
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61.510 |
14.702 |
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Total Expenditure |
|
72.362 |
21.082 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
|
1.03 |
(17.93) |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.42 |
(18.20) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.40 |
(7.47) |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.07 |
(0.38) |
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Debt Equity Ratio (Total Liability/Networth) |
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3.83 |
4.07 |
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Current Ratio (Current Asset/Current Liability) |
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|
4.70 |
5.56 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8
Bankers Charges Report
as per Registry
|
This Form is for |
Modification of Charge |
|
Charge
identification number of the charge to be modified |
90197657 |
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Corporate
identity number of the company |
U29130KA1996PTC021576 |
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Name of the
company |
CVM PRECISION PRODUCTS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
M.S.R. Industrial Estate, Gokula Extension, Mathikere, Bangalore
560054, Karnataka, India |
|
Type of charge |
Book Debts Movable Property |
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Particular of
charge holder |
Canara Bank III Block,
Rajajinagar, Bangalore 560010, Karnataka, India |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
Agreement |
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Date of instrument
Creating the charge |
09.04.2007 |
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Amount secured by
the charge |
Rs. 81.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest: FDB/FBE [O] – As
per guidelines Terms of
Repayment: FBE Period – 90
days BG Period – 2
Years excluding claim period Margin: BG – 15% Extent and
operation of the charge The charge shall
operate to the extent of Rs. 81.500 Millions plus interest, commission,
costs, expenses and other charges thereon. Others: The said amount
of CC Rs. 4.000 Millions, BPSB Rs. 2.000 Millions, SDB Rs. 1.000 Million, CDB
Rs. 1.000 Million PC Rs. 10.000 Millions, TL I Rs. 8.000 Millions, TL II Rs.
13.000 Millions all continued at existing level and BG Rs. 7.500 Millions
(enhanced from Rs. 5.000 Millions) and FDB/FBE Rs. 35.000 Millions (enhanced
from Rs. 25.000 Millions) The overall
limits are enhanced from Rs. 69.000 Millions to Rs. 81.500 Millions |
|
Short particulars
of the property charged |
Hypothecation by
way of first charge on stocks of raw material/WIP, finished goods, book debts
and export receivables and plant, machinery and other movables
stored/installed at Company’s premises at MSR Industrial Estate, Gokula
Extension, Mathikere, Bangalore 560054 or wherever else. |
|
Date of latest
modification prior to the present modification |
NA |
|
Particulars of
the present modification |
By the above, the
amount secured by charge stands enhanced from Rs. 69.000 Millions to Rs.
81.500 Millions (All other terms
and conditions remain unchanged) |
|
Name of the company |
CVM PRECISION
PRODUCTS PRIVATE LIMITED |
|
Presented By |
Canara Bank,
Rajajinagar III Block Branch, Bangalore |
|
1) Date and description of instrument creating the change |
Deed of Hypothecation Re :
Machinery dated 05.11.2003 |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 8.000
Millions |
|
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 |
All that plant,
machinery, tools and accessories already purchased and described in Schedule
‘A’ to Deed of Hypothecation Re: Machinery purchased/imported as also the
machinery etc., to be purchased/imported. |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
a] Interest @
14.50% p.a. b} Margin as
applicable c] Repayable in
65 monthly installments as under : Rs. 0.075
Millions p.m. from April 2004 to March 2006 Rs. 0.125
Millions p.m. from April 2006 to March 2007 Rs. 0.150
Millions p.m. from April 2007 to March 2008 Rs. 0.175
Millions p.m. from April 2008 to March 2009 Rs. 0.160
Millions p.m. from April 2009 to August 2010 |
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5) Name and Address and description of the person entitled to the
charge. |
Canara Bank,
Rajajinagar III Block Branch, Bangalore |
|
6) Date and brief description
of instrument modifying the charge |
NA |
|
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 |
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. 39.29 |
|
UK Pound |
1 |
Rs. 77.52 |
|
Euro |
1 |
Rs. 57.85 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
31 |
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 |
|