MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
SRI RANGANATHAR
INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
12/45, Thadagam Road, Edayarpalayam Post, Coimbatore - 641
025, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.11.1997 |
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Com. Reg. No.: |
18-008193 |
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CIN No.: [Company
Identification No.] |
U29199TZ1997PTC008193 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBS03146D |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Valves and Valve Castings Machined Components |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3300000 |
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Status : |
Good |
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Payment Behaviour : |
Usually Correct |
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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. Financial Position is good. The company is doing
well. Its payments are always correct and as per commitments. The company can be considered good for any normal business dealings.
It can be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered Office / Factory 1 : |
12/45, Thadagam Main Road, K N G Pudur, Edayarpalayam Post, Coimbatore - 641 025, Tamilnadu, India |
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Tel. No. : |
91-422-2400141 / 2401433 / 2403433 |
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Fax No.: |
91-422-2400773 / 2405390 |
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E-Mail : |
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Website : |
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Area : |
20000 sq. ft. |
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Location : |
owned |
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Administrative
office: |
No. 8, Ramalinga Nagar, 1st Cross, K K Pudur, Coimbatore -641038, Tamilnadu, India |
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Tel. No.: |
91-422-2403433 |
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Fax No. : |
91-422-2400773 |
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Factory 2 : |
7/79, Arasur Village, Thennampalayam, Coimbatore - 641407, Tamilnadu, India |
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Tel. No.: |
91-422-688828 / 968 / 804 / 2360968 / 2360804 / 2360827 |
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Fax No.: |
91-422-689715 / 2400773 / 405390 / 2400773 / 2360706 |
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E mail: |
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Windmills : |
Tirunelveli District |
DIRECTORS
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Name : |
Mr. V. Narayanasamy |
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Designation : |
Chairman and Managing Director |
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Address : |
No. 8, Ramalinga Nagar, I Cross, K. K. Pudur, Coimbatore – 641038, Tamilnadu, India |
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Date of
Birth/Age : |
08.05.1985 |
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Date of
Appointment : |
11.07.2007 |
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Experience : |
33 years |
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Previous Employment : |
Sri Ranganathar Industries |
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Name : |
Mrs. R. Prabhavathy |
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Designation : |
Director |
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Address : |
No. 8, Ramalinga Nagar, I Cross, K. K. Pudur, Coimbatore – 641038, Tamilnadu, India |
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Date of
Birth/Age : |
08.06.1960 |
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Date of
Appointment : |
01.10.1998 |
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Name : |
Ms. N. Vinaya |
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Designation : |
Director |
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Address : |
No. 8, Ramalinga Nagar, I Cross, K. K. Pudur, Coimbatore – 641038, Tamilnadu, India |
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Date of
Birth/Age : |
02.09.1981 |
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Date of
Appointment : |
04.02.2000 |
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Name : |
Mr. J. Elangoven |
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Designation : |
Technical Director |
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Address : |
2/126 – A, Teachers Colony, Chinniampalayam, Coimbatore – 641062, Tamilnadu, India |
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Date of
Birth/Age : |
15.05.1964 |
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Date of
Appointment : |
23.08.2001 |
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Name : |
Mr. N Hari Krishnan |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. l Chandrasekhar |
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Designation : |
Company Secretary |
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Address : |
No. 5, Ranganayaki Nagar, opposite Lions Club, Perianaickenpalayam, Coimbatore
– 641 020, Tamil Nadu, India |
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Tel No: |
91-422-2692858 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on
31.03.2007) :- |
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No. of Shares |
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Mr. V. Narayanasamy |
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873000 |
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Mrs. R. Prabhaathy |
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6000 |
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Mr. N. Hari Krishna |
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58500 |
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Mr. N. Vinaya |
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59500 |
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Mr. J. Elangoven |
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2000 |
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Total
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999000 |
Equity Shares Breakup (Percentage of Total Equity): (As on 31.03.2007)
:-
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Sr No. |
Category |
Percentage |
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1 |
Directors or relative of directors |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Valves and Valve Castings Machined Components |
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Products : |
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Exports : |
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Products : |
Castings and Valves. |
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Countries : |
U.S.A., Italy, France, UK, Japan, Germany etc. |
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Imports : |
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Products : |
Stainless Steel Melting Scraps |
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Countries : |
USA |
PRODUCTION STATUS
(as on 31.03.2005):-
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Particulars |
Unit |
Actual
Production |
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SS Machined Castings |
MT |
347.31 |
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NAS Machined Castings |
MT |
1438.21 |
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ASM Machined Castings |
MT |
2.85 |
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SS Rough Castings |
MT |
272.06 |
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NAS Rough Castings |
MT |
241.53 |
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ASM Rough Castings |
MT |
96.70 |
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Industrial Valves |
Nos. |
14893 |
GENERAL
INFORMATION
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No. of Employees : |
950 |
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Bankers : |
· The Bank of Nova Scotia, Classic Towers, 1547, Trichy Road, Coimbatore - 641 018, Tamilnadu, India Phone No. : 91-422-303404 · State Bank of India, Commercial Branch, Trichy Road, Coimbatore - 641018, Tamilnadu, India · Standard Chartered Bank, 19, Rajaji Salai, Chennai – 600001, Tamilnadu, India · State Bank of Travancore, Oppanakara Street Branch, Coimbatore- 641 018, Tamilnadu, India |
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Facilities : |
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Banking Relations
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Satisfactory |
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Auditors : |
· T. V. Subramaniam and Associates Chartered Accountants Coimbatore, Tamilnadu, India · R Gurubatham Chartered Accountants Address: 10A “Gurukripa” Iyer Hospital Road, Singanallur, Coimbatore -641 005, Tamil Nadu, India |
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Associates : |
Sri Ranganathar Valves Private Limited |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity shares |
Rs.10/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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999000 |
Equity shares |
Rs. 10/-
each |
Rs. 9.990
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
9.990 |
9.990 |
9.990 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
665.868 |
543.916 |
435.805 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
675.858 |
553.906 |
445.795 |
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LOAN FUNDS |
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1] Secured Loans |
331.797 |
197.239 |
73.633 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
331.797 |
197.239 |
73.633 |
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DEFERRED TAX LIABILITIES |
166.520 |
138.650 |
98.550 |
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TOTAL |
1174.175 |
889.795 |
617.978 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
927.742 |
713.613 |
502.837 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.100 |
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 |
54.096
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45.814 |
21.995 |
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Sundry Debtors |
258.967
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172.076 |
125.746 |
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Cash & Bank Balances |
8.626
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42.497 |
11.881 |
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Other Current Assets |
0.001
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0.400 |
0.000 |
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Loans & Advances |
93.884
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72.958 |
59.744 |
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Total
Current Assets |
415.574
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333.745 |
219.366 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
157.553
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153.391 |
104.225 |
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Provisions |
11.688
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4.272 |
0.000 |
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Total
Current Liabilities |
169.241
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157.663 |
104.225 |
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Net Current Assets |
246.333
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176.082 |
115.141 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1174.175 |
889.795 |
617.978 |
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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 |
1384.719 |
1032.149 |
722.238 |
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Other Income |
1.724 |
1.847 |
0.000 |
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Total Income |
1386.443 |
1033.996 |
722.238 |
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Profit/(Loss) Before Tax |
204.522 |
160.373 |
145.459 |
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Provision for Taxation |
70.883 |
47.991 |
47.855 |
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Profit/(Loss) After Tax |
133.639 |
112.382 |
97.604 |
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Earnings in Foreign Currency : |
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Sale Of Casting & Valves |
1165.773 |
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Pattern Tooling Charges |
2.731 |
3.110 |
582.434 |
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Total Earnings |
1168.504 |
828.034 |
582.434 |
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Imports : |
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Raw Materials |
188.609 |
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Stores & Spares |
3.279 |
3.540 |
83.899 |
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Capital Goods |
72.622 |
50.906 |
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Total Imports |
264.510 |
167.533 |
83.899 |
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1181.921 |
873.623 |
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Expenditures : |
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Financial
Charges |
22.816 |
107.434 |
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Depreciation & Amortization |
283.305 |
80.006 |
576.779 |
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Other Expenditure |
875.800 |
686.183 |
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Total Expenditure |
1181.924 |
873.623 |
576.779 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
9.63
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10.86 |
13.51
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Net Profit Margin (PBT/Sales) |
(%) |
14.76
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15.53 |
20.14
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Return on Total Assets (PBT/Total Assets} |
(%) |
15.22
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15.31 |
20.14
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Return on Investment (ROI) (PBT/Networth) |
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0.30
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0.300 |
0.32
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Debt Equity Ratio (Total Liability/Networth) |
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0.74
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0.64 |
0.39
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Current Ratio (Current Asset/Current Liability) |
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2.45
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2.11 |
2.10
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LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
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Corporation identity number or foreign company registrations number of
the company |
U29199TZ1997PTC008193 |
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Name of the company |
SRI RANGANATHAR
INDUSTRIES PRIVATE LIMITED |
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Address |
12/45, Thadagam Road, Edayarpalayam Post, Coimbatore - 641
025, Tamilnadu |
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This Form is for |
Modification of charge |
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Type of Charges |
· Book debts · others |
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Particular of the charge holder
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Standard Chartered Bank Address: 19, Rajaji Salai, Chennai – 600 001, Tamil Nadu, |
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Nature or description of the instrument creating charge |
Inter Se Pari passu Agreement |
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Date of the instrument creating charge |
02.03.2007 |
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Amount Secure by the charge |
Rs. 65.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of interest: Interest and commission % as negotiated and agreed Terms of repayment: Working capital limits for a period of one year and subject to renewal
every years Margin: Margin 25% on stock and book Debts Extent and operation of
charge Hypothecation of the current assets of the company by way of first
pari passu Charge Others: Packing Credit, post Shipment Credit, Letter of Credit, Guarantee
Limit, Interest / commission at the rate of as negotiated with and agreed by the
bank, First Pari passu Hypothecation charges over inventory and book debts of
the company. |
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Short particulars of the
Property charged |
First Paripassu hypothecation charge over inventory and book debts of
the company. All present and future book debts, outstanding moneys
receivable, etc, and all present and future stock in trade consisting of raw
materials, finished goods, goods in process at 12/45, Thadgam Road,
Edayapalayam Post, Coimbatore -641 025, India and at Unit II 7/79, Arasur
Village, Thennampalayam, Coimbatore -641 107./ As per the schedule to the
Unattested Memorandum of hypothecation |
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Pariculars of the present modification |
Inter Se Pari passu Agreement with the State Bank of India, Commercial
Branch, Coimbatore Modification in respect of State Bank of India is also filed
separately |
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Name of the
company |
SRI RANGANATHAR
INDUSTRIES PRIVATE LIMITED |
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Presented By |
SRI RANGANATHAR
INDUSTRIES PRIVATE LIMITED |
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1) Date and
description of instrument creating the change |
· Agreement of hypothecation of goods and assets dated 31/03/2000 · Memorandum for deposit of Title Deeds dated 31/03/2000 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 30.600
millions |
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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 |
· Equitable mortgage by way of deposit of title deeds of the ands and Building situtate in Tirpur Registration District, Sulur Sub Registration Diastrict, palladam Taluk, Arasur Village extent of land SF No. 250/2G-0.53 acres, 250/2H-1.05 acres belonging to the Company fo5r securing the term loan and working capital limits of the Company · Hypothecation of all the present and future goods, book debts and all movable assets of the Company. |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
The loan is secured by equitable mortgage on the above mentioned
properties |
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5) Name and Address
and description of the person entitled to the charge. |
State Bank of India Address: Commercial Branch, Coimbatore |
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6) Date and brief description of instrument
modifying the charge |
Supplemental Agreement
of hypothecation fro increase in the overall limit dated 03.05.2002 Letter regarding
the grant of individual limits within the overall limit dated 03.05.2002 |
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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. |
· Rs. 80.000 millions · The loan is secured by equitable mortgage on the above mentioned properties and hypothecation of all movable assets of the company |
OTHER INFORMATION:
Contingent
Liabilities:
[Amount in
Millions]
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Particulars |
2004- 05 |
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Guarantee Issued by Banks |
1.987 |
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Demand of Sales tax penalty before authorities |
0.089 |
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5% Tax on windmill power generation not provided for |
0.000 |
Liabilities regarding small scale undertakings have been determined to the extent such parties have been identified on the basis of information available with the company
Generic Names of
Principal Products/Services of the company are :
v Stainless Steel Castings
v Carbon Steel Casting
v Non Alloy Steel Castings
The company is in
trade terms with:
v Kasturi Machine Builders, Coimbatore, Tamilnadu, India
The company is an ISO 9001 company.
Fixed Assets:
Ř Land
Ř Building
Ř Plant and Machinery
Ř Office Equipment
Ř Furniture and Fixtures
Ř Electrical Equipment
Ř Motor Vehicles
Ř Computer and Accessories
Ř Tools and Equipments
Ř Buildings in progress
WEBSITE DETAILS: -
The company, known as SRI was started in the year 1987, as a Small Scale Industry and over the periods has grown manifolds and graduated to a Medium Scale Industry, with a total investment of USD 7.5 million
Subject has two manufacturing facilities, one at Thadagam Road and another at Arasur. Between both the Units, subject employs 950 people including 95 White Collar people. The Total built-in area is 90000 sq.ft for Unit-1 and 75000 sq.ft for Unit-2.
Subject is managed by Mr.V.Narayanasamy, Managing Director, and supported by a team of Professionals.
Subject has its quality policy:
· Achieving total customer satisfaction through cost - effective and reliable products.
· Improvement in Products, Process and People.
· Earning quality reputation and market leadership.
Subject are the market leaders in the Steel Foundry Industry.
Subject is mainly specialising in the production of different types of Valves, Pumps and Engineering Castings. Almost 90% of Castings are meant for Valves and Pumps. Subject also produces different types of Valves viz., Wedge Gate, Globe, Swing Check, Duo Wafer Check, Stop Check, Tilting Disc Check, Floating and Trunnion mounted Ball Valves etc.
· Castings – Machined / unmachined
· Valves
· Sub Assembly
The company is a
regular receiver of Indian Government's Prosperous Award.
Regional Trophy For Top Exports
· ISO 9001 - 2000 Certified for Quality Systems by RW TUV NORD, Germany.
· AD-MERKBLATT WO/TRD-100 by RW TUV NORD, Germany
· CE Marketing Certified as per PED 97/23/EC/ Module H by RW TUV NORD, Germany
· API 6D Monogram, API spec Q1, API spec 6D by API - USA (Licence for Manufacture of pipe line valves)
· PED Base material approval for specific grades as per annex of section 4.3 at PED/97/23/EC by RW TUV NORD - Germany.
· Well known foundry as per Indian Boiler Regulations by I.B.R India
· Approved Steel Casting Manufacturer for Marine Application by 4 international agencies -DNV- Norway. BV - France, Lloyds - UK and KR - Korea
Subject has achieved tremendous growth in business by strictly adhering to quality. Business growth without quality is never stable. The endeavour resulted in receiving number of certifications, started since 1997 with ISO 9002, followed by AD Merkblatt. WO TRD 100 for Unit1. Subject has obtained re-certification of ISO 9002 in the year 2000 and has emerged as an ISO 9001 company along with AD-Merkblatt WO/TRD 100 for Unit II in the year 2001. Apart from this, subject has been recognized as well known foundry by the Indian Boiler Regulations for producing valve castings and for the unique status of machining the valve castings. Approval for supply of castings to marine application is obtained simultaneously in the year of 2003 from 4 international agencies - DNV - Norway, BV - France, Lloyds - UK and KR - Korea
Subject both units have obtained the CE marking status under RW TUV NORD to produce valves for European market as per PED 97/23/EC - Module H. API Monogram licencing is obtained as per API 6D. These two certifications are for the company Valve Products.
Other Certificates :-
Subject is continuously receiving national and regional awards for exports since 1996 and has been declared as Notified Export House in the year 2000. Subject is pursuing for ISO 14001 certification.
Certificates
· IBR
· BV
· DNV
· API
· ISO
· Lloyds
· KR
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. 43.34 |
|
UK Pound |
1 |
Rs.86.53 |
|
Euro |
1 |
Rs.68.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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/normal. |
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 |
|