MIRA
INFORM REPORT
|
Report Date : |
16.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VENKATESWARA WIRES PRIVATE LIMITED |
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Registered Office : |
302, Navjeevan Chambers, Vinoba Marg, C- Scheme, M I Road, Jaipur –
302001, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.05.1988 |
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Com. Reg. No.: |
17-4446 |
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CIN No.: [Company
Identification No.] |
U31300RJ1988PTC004446 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JPRV02011C |
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PAN No.: [Permanent
Account No.] |
AAACV5085F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Conductor Wire and Cable Wire. |
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 |
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Maximum Credit Limit : |
USD 280000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company meeting its normal
commitments timeously. Trade relations are fair. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Rakesh Sharma |
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Designation : |
Sales Executive |
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Contact No.: |
91-9828334351 |
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Date : |
05.06.2008 |
LOCATIONS
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Registered Office/ Factory : |
302, Navjeevan Chambers, Vinoba Marg, C- Scheme, M I Road, Jaipur –
302001, Rajasthan, India |
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Tel. No.: |
91-141-2371394/ 2366854/ 5107094 |
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Fax No.: |
91-141-2371394 |
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E-Mail : |
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Area : |
500 sq. ft. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Sanjay Kumar Saboo |
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Designation : |
Director |
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Address : |
14-A, Gumit Niwas, Mahaveer Marg, C-Scheme, Jaipur, Rajasthan, India |
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Date of Birth/Age : |
29.11.1960 |
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Qualification : |
B. Com |
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Date of Appointment : |
16.05.1988 |
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Name : |
Mr. Rohit Kumar Saboo |
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Designation : |
Director |
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Address : |
14-A, Gumit Niwas, Mahaveer Marg, C-Scheme, Jaipur, Rajasthan, India |
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Date of Birth/Age : |
01.02.1967 |
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Date of Appointment : |
16.05.1988 |
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Name : |
Mr. Abhay Kumar Bohra |
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Designation : |
Director |
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Address : |
C-128, Hari Marg, Malviya Nagar, Jaipur, Rajasthan, India |
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Date of Birth/Age : |
12.01.1948 |
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Date of Appointment : |
21.04.1998 |
KEY EXECUTIVES
|
Name : |
S. Hirawat and Associates |
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Designation : |
Company Secretary |
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Address : |
A-VI, 401-A, Kamal Apartment, Bani Park, Jaipur 302016 |
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Tel. No.: |
91-141-2201270 |
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E-mail: |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 26.07.2005)
|
Names of Shareholders |
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No. of Shares |
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Directors and Relatives |
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41193 |
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Bodies Corporate |
|
2361 |
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Share Holders |
|
6671 |
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Total |
|
50225 |
(As on 31.03.2007)
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Category |
|
Percentage |
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Bodies Corporate (not mentioned above) |
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8.86 |
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Directors or relatives of director |
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87.24 |
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Other top fifty shareholders (other than listed above) |
|
3.90 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Conductor Wire and Cable Wire. |
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Products : |
· Conductor Wire · Cable Wire |
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Terms : |
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Selling : |
Cash and Credit (30 days) |
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Purchasing : |
Cash and Credit (30 days) |
GENERAL
INFORMATION
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Customers : |
Owners |
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No. of Employees : |
20 |
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Bankers : |
·
The Bank of Rajasthan
Limited VKI Area, Jaipur,
India ·
ICICI Bank ·
HDFC Bank |
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Facilities : |
CC Rs.100.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. C. Mehta and Company Chartered Accountant |
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Name : |
H S Darda and Company Chartered Accountant |
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Address : |
36-A, Suraj Nagar, CivilLines, Jaipur – 302001, Rajasthan, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000 |
Equity Shares |
Rs.100/- each |
Rs.6.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
54825 |
Equity Shares |
Rs.100/- each |
Rs.5.482
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
5.482 |
5.480 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
51.547 |
37.770 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
57.029 |
43.250 |
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LOAN FUNDS |
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1] Secured Loans |
|
98.153 |
78.016 |
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2] Unsecured Loans |
|
21.241 |
15.681 |
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TOTAL BORROWING |
|
119.394 |
93.697 |
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DEFERRED TAX LIABILITIES |
|
10.116 |
1.217 |
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TOTAL |
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186.539 |
138.164 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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53.184 |
15.716 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
|
0.000 |
0.000 |
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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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16.514 |
28.047 |
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Sundry Debtors |
|
150.129 |
109.066 |
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Cash & Bank Balances |
|
9.213 |
4.848 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
13.143 |
16.767 |
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Total
Current Assets |
|
188.999 |
158.728 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
55.808 |
36.280 |
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Provisions |
|
0.000 |
0.000 |
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Total
Current Liabilities |
|
55.808 |
36.280 |
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Net Current Assets |
|
133.191 |
122.448 |
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MISCELLANEOUS EXPENSES |
|
0.164 |
0.000 |
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TOTAL |
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186.539 |
138.164 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
919.964 |
679.777 |
376.440 |
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Total Income |
919.964 |
679.777 |
376.440 |
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Profit/(Loss) Before Tax |
27.188 |
16.379 |
6.764 |
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Provision for Taxation |
11.575 |
5.527 |
3.045 |
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Profit/(Loss) After Tax |
15.613 |
10.852 |
3.719 |
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Expenditures : |
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Depreciation & Amortization |
1.990 |
0.876 |
0.667 |
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Other Expenditure |
890.786 |
662.522 |
369.009 |
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Total Expenditure |
892.776 |
663.398 |
369.676 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.69
|
1.60 |
0.98 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.95
|
2.41 |
1.80 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
11.23
|
9.39 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
0.48
|
0.37 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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3.07 |
3.00 |
NA |
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Current Ratio (Current Asset/Current Liability) |
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3.39 |
4.37 |
NA |
LOCAL AGENCY
FURTHER INFORMATION
Trade Reference:
·
Jyoti Electrical
Form 8:
|
Name of the company |
VENKATESWARA WIRES PRIVATE LIMITED |
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Presented By |
The Bank of
Rajasthan Limited VKI Area, Jaipur
and the Company |
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1) Date and description of instrument creating the change |
All Agreement
dated 31.03.2005 ·
Security for
all advance and Loans ·
Terms Loan
Agreement ·
Hypothecation
of Goods to secure a Demand Cash Credit ·
Agreement
for Hypothecation of Book Debts ·
Agreement of
Hypothecation of Machinery and Goods ·
Letter of
Continuity. |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs.6.500
Millions, Corporate Loan |
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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 |
First Charge by
way of Hypothecation of all present and future plant Machinery, furniture,
fixture office equipments, tools, accessories, stores and spares, all stock
present and future book debts and all other current and fixed assets of the
company Equitable
mortgage by way of 1st charges on all immovable and fixed assets
of the company comprising factory land, building, fixed plant and machinery
thereon present and future, situated at C-116, (A-1), Road No.8, VKI Area,
Jaipur |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Interests 9% p.a.
with monthly rests, subject to change from time to time. Repayable in 48
equal monthly installments after a moratorium Period of 6 months. |
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5) Name and Address and description of the person entitled to the
charge. |
The Bank of
Rsjasthan Limited VKI Area, Jaipur |
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6) Date and brief description
of instrument modifying the charge |
NA |
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7) Particulars of modifications specifying the terms and conditions or
the extent of operations of the charge in which modification is made and the
details of the modification. |
NA |
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Corporate
identity number (CIN) Foreign company registration number |
U31300RJ1988PTC004446 |
|
Name of the
Company |
VENKATESWARA WIRES PRIVATE LIMITED |
|
Address |
302, Navjeevan Chambers, Vinoba Marg, C- Scheme, M I Road, Jaipur – 302001,
Rajasthan, India |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
·
Immovable
Property ·
Book Debts ·
Movable
Property (not being pledge) |
|
Particulars of
the charge holder |
The Bank of
Rajasthan Limited VKI Area Branch, Road
No.5, Jaipur – 302013, Rajasthan, India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Terms Loan
Agreement Agreement of Hypothecation
of Machinery and Goods Letter of
Continuity |
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Date of the
instrument creating or modifying the charge |
28.09.2007 |
|
Amount secured by
the charge |
Rs.28.09.2007 |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: Interests @1.50%
below BPLR with a minimum of 13% p.a. with monthly rates, subject to change
from time to time. Terms of
Repayment: Repayable in 72
monthly installment of Rs.0.278 Million each commencing from April 2008, and
interests thereon. Margin: Margin as per
Bank’s norms. Extent and
Operation of the Charge: The charge will
operate as first charge to the extent of Rs.20.000 Millions to secure terms
Loan Facility |
|
Short particulars
of the property charged (including location of the property) |
First Charge by
way of Hypothecation of all present and future plant Machinery, furniture,
fixture office equipments, tools, accessories, stores and spares, all stock
such as AAC, ACSR Conductors and Cables, aluminum rods, Steet wires, tools
Accessories, stores and spares, all present and Future current and fixed
assets of the company Equitable
mortgage by way of 1st charges on all immovable and fixed assets
of the company comprising factory land, building, fixed plant and machinery
thereon present and future, situated at C-116, (A-1), Road No.8, VKI Area,
Jaipur |
|
Particular of the
present 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. 42.87 |
|
UK Pound |
1 |
Rs. 83.41 |
|
Euro |
1 |
Rs. 66.11 |
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 |
NO |
|
--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 |
|