MIRA
INFORM REPORT
|
Report Date : |
06.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
FLOW LINK SYSTEMS PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Apartment No. 33, Old No. 5A, Block A, Pioneer Apartment, 718,
Avanashi Road, Coimbatore – 641018,
Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
03.06.1992 |
|
|
|
|
Com. Reg. No.: |
18-3779 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U29120TZ1992PTC003779 |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of Industrial Valves |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 700000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and reputed company having fine track
records. Trade relations are reported as fair. General financial position is
satisfactory. 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
|
Registered Office/ Factory : |
Apartment No. 33, Old No. 5A, Block A, Pioneer Apartment, 718,
Avanashi Road, Coimbatore – 641 018,
Tamil Nadu , India |
|
Tel. No.: |
91-422-2360707 |
|
Fax No.: |
91-422-2360698 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
189, Uthupalayam,
Avanashi Road, Arasur, Coimbatore - 641 407, Tamil Nadu, India |
|
Tel. No.: |
91 - 422 – 2360011 |
|
Fax No.: |
91 - 422 – 2360698 |
|
E-Mail : |
|
|
Websites: |
DIRECTORS
|
Name : |
Mr. Richard Earl Kuehler |
|
Designation : |
Director |
|
Address : |
25247 Saualito Lane, Porter, Texas – Tx77365, Un |
|
Date of Appointment : |
12.05.2003 |
|
|
|
|
Name : |
Mr. Chong Jeng Seet |
|
Designation : |
Director |
|
Address : |
Block 153 Gangsa Road, 12319, Singapore – 670 153 |
|
Date of Appointment : |
12.05.2003 |
|
|
|
|
Name : |
Mr. P R Jagannathan |
|
Designation : |
Director |
|
Address : |
17 A, Indira Nagar Civil Aerodrome Post, Civil Aerodrome Post,
Coimbatore -641 014, Tamil Nadu, India |
|
Date of Birth/Age : |
21.10.1941 |
|
Date of Appointment : |
03.06.1992 |
|
|
|
|
Name : |
Mr. D Lakshminarayana swamy |
|
Designation : |
Director |
|
Address : |
7, Netaji Road, P N Palyam, Coimbatore – 641 037, Tamil Nadu, India |
|
Date of Birth/Age : |
13.04.1950 |
|
Date of Appointment : |
18.07.1996 |
|
|
|
|
Name : |
Mr. N Govindarajan |
|
Designation : |
Director |
|
Address : |
233, Buleya Road, Edmonton, Canada – T6R1X7 |
|
Date of Birth/Age : |
01.01.1954 |
|
Date of Appointment : |
18.09.1996 |
|
|
|
|
Name : |
Mr. Williams K Robbins |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. R Venkateswaran |
|
Designation : |
Company Secretary |
|
Mobile No.: |
91-9842257832 |
|
Email : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
|
No. of Shares |
|
Mr. P R Jaganathan |
|
127500 |
|
Mr. D Lakshminarayan Swamy |
|
127500 |
|
Diversified Technologies Limited |
|
357000 |
|
S V Enterprises Limited |
|
314500 |
|
Cooper Cameron Investments (UK) Limited |
|
773500 |
|
|
|
|
|
Total |
|
1700000 |
(As on 31.03.2007):-
|
Category |
Percentage |
|
Foreign holdings
(Foreign institutional investors ) foreign companies foreign financial
institutions , non residents or Overseas corporate bodies or others |
85.00 |
|
Directors or relative of directors |
15.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Industrial Valves |
|
|
|
|
Products : |
· Industrial Valves · Steel Castings |
GENERAL
INFORMATION
|
Customers : |
· Cameron Group · Powell USA · Klaus Union,
Germany · MA Srewart · Spirax |
|
|
|
|
Bankers : |
· Indian Bank Coimbatore Main Branch, 31 Variety Hall Road, Coimbatore – 641001,
Tamilnadu, India · ICICI Bank |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
K Murali Mohan Chartered Accountants |
|
Address : |
P B No. 2937, 7 (Old No. 11), Street No. 1, S N Layout, Coimbatore –
641 012, Tamil Nadu, India |
|
|
|
|
Associates/Subsidiaries : |
Diversified
Technologies Limited 233 Bulyea Road, Edmonton, Alberta, T6R 1X7, Canada E-mail: raj@flowlinksystems.com Website: www.flowlinksystems.com |
|
|
|
|
Related Parties : |
·
S V enterprises, Canada ·
Diversified Technologies Limited ·
Cooper Camera Valves, Houston ·
Cameron Romania SA ·
Carn Distributed Values Edmonton ·
North American Corporation |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1700000 |
Equity Shares |
Rs. 10/- each |
Rs.17.000 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
17.000 |
17.000 |
|
|
2] Share Application Money |
|
1.668 |
0.000 |
|
|
3] Reserves & Surplus |
|
135.487 |
92.920 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
154.155 |
109.920 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
114.640 |
87.919 |
|
|
2] Unsecured Loans |
|
46.280 |
30.729 |
|
|
TOTAL BORROWING |
|
160.920 |
118.648 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
315.075 |
228.568 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
161.447 |
101.271 |
|
|
Capital work-in-progress |
|
11.964 |
12.253 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
1.705 |
1.154 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
133.158
|
82.987 |
|
|
Sundry Debtors |
|
95.531
|
81.212 |
|
|
Cash & Bank Balances |
|
2.077
|
3.340 |
|
|
Other Current Assets |
|
0.000
|
0.000 |
|
|
Loans & Advances |
|
53.512
|
31.498 |
|
Total
Current Assets |
|
284.278 |
199.037 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
122.883
|
79.356 |
|
|
Provisions |
|
21.436
|
5.791 |
|
Total
Current Liabilities |
|
144.319 |
85.147 |
|
|
Net Current Assets |
|
139.959 |
113.890 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
315.075 |
228.568 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
585.579 |
429.812 |
|
|
Other Income |
|
13.165 |
14.676 |
|
|
Total Income |
|
598.579 |
444.488 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
48.391 |
23.542 |
|
|
Provision for Taxation |
|
17.369 |
8.074 |
|
|
Profit/(Loss) After Tax |
|
31.022 |
15.468 |
|
|
|
|
|
|
|
|
Export Value |
|
505.900 |
410.349 |
|
|
|
|
|
|
|
|
Import Value |
|
21.064 |
26.273 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
11.844 |
10.651 |
|
|
Depreciation & Amortization |
|
20.357 |
20.000 |
|
|
Other Expenditure |
|
517.987 |
390.295 |
|
Total Expenditure |
|
550.188 |
420.946 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
5.18 |
3.48 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
8.26 |
5.48 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
10.86 |
7.84 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.31 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.98 |
1.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.97 |
2.34 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:
|
Corporation identity number or foreign company registrations number of
the company |
U29120TZ1992PTC003779 |
|
Name of the company |
FLOW LINK SYSTEMS PRIVATE LIMITED |
|
Address |
Apartment No. 33, Old No. 5A, Block A, Pioneer Apartment, 718,
Avanashi Road, Coimbatore – 641 018,
Tamil Nadu , India |
|
This Form is for |
Modification of charge |
|
Type of Charges |
· Immovable Property · Movable Property · Book Debts |
|
Particular of the charge holder
|
Indian Bank Coimbatore Main Branch, 31 Variety Hall Road, Coimbatore – 641 001, Tamil Nadu, India Email ID: ibcoimai@satyammail.com
|
|
Nature or description of the instrument creating charge |
Agreement of hypothecation of movables Agreement for open cash credit Agreement for bills purchased Medium term loan agreement |
|
Date of the instrument creating charge |
15.11.2007 |
|
Amount Secure by the charge |
Rs. 228.719 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of Interest :- CC / packing credit BPLR 2.5% presently 10.00% FBP BPLR 25% presently 10.00% Term Loan IV BPLR +TP -1.5% presently 11.5% Term Loan V BPLR +0.5% presently 13% Terms of repayment: CC / packing credit On Demand FBP On Demand Term Loan IV 5 years in 20 quarterly installments of Rs. 1.050
millions each Term Loan V 36 monthly installments of Rs. 0.0973 millions each Margin: CC / packing credit 25% Term Loan IV 25% Term Loan V NIL Extent and Operation of the charge: First charge on the fixed assets of the company and hypothecation of
movable assets including book debts, bills, as per schedule attached to the
loan agreements. Others: Terms and conditions already notified in
the earlier form are also continuing. |
|
Short Particulars of the Property charged |
First charge on the fixed assets and
current assets of the company and hypothecation of movable assets including
book debts, bills, as per schedule attached to the loan agreement. |
|
Particulars of the present modification |
Total limits enhanced from Rs. 149.219 millions to Rs. 228.719
millions with the enhancement of CC/ packing credit to Rs. 65.000 millions,
FBP to RS. 35.000 millions and fresh term loan IV Rs. 21.000 millions and
Term Loans V of Rs. 35.000 millions. |
|
Name of the company |
FLOW LINK SYSTEMS PRIVATE LIMITED |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Presented By |
FLOW LINK
SYSTEMS PRIVATE LIMITED and Indian Bank,
Coimbatore Main Branch, Coimbatore |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
1) Date and
description of instrument creating the change |
06.03.2004 Agreement of
hypothecation of movables, counter guarantee Agreement of
hypothecation of goods received under advance payment of guarantee /L/C Agreement for packing credit Agreement for
bills purchased Medium term loan
agreement 2 Nos. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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 |
Goods , produce,
Merchandise, stock stored or to be stored from time to time in the premises
at Avanashi Road, Arasur, Coimbatore – 641 407 Existing and
future purchase of plant and machinery Hypothecation of
entire current asset of the company for the entire working capital
facilities. First charge on
the entire fixed assets of the company |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Term Loan: Interest at 1% above the PLR
with a minimum of 11% with monthly rest. TL: Rs. 39.719 millions Repayment in 20
installment Rs. 0.531 millions commencing from April 2004 Interest 6% above the PLR with a minimum
of 17% for letter of credit 4% Commission for guarantee Interest of 7.5% for packing credit limit. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Indian Bank Coimbatore Main Branch Coimbatore |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Letter from party
to Bank confirming the creation of equitable mortgage on 27.10.2004 (letter
dated 28.10.2004) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
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. |
Total limits have
been modified from Rs. 113.719 millions to Rs. 137.867 millions as under:-
@ 50% of Inter
changeability of limits on both ways Total limits of
Rs. 13.7.867 millions together with Interest , costs and other charges
payable to the bank are secured by creation of equitable mortgage by deposit
of title deeds of immovable properties of the company situate at Arasur
Village, Palladam Taluka as under:-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WEBSITE DETAILS:
History
The Company started in 1992 as a valve component manufacturing unit and
eventually started producing industrial valves on contractual basis for customers
worldwide.
To control the quality of material produced and to ensure their delivery
commitments, the Company started the foundry division in 1996/97 which has
continued to expand to the present level.
Facilities:
· Foundry
· Machine Shop
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.42.86 |
|
UK Pound |
1 |
Rs.83.58 |
|
Euro |
1 |
Rs.66.17 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|