MIRA
INFORM REPORT
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Report Date : |
21.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
WMI CRANES LIMITED |
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Registered Office : |
Industry Manor, Prabhadevi, Mumbai – 400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.10.1975 |
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Com. Reg. No.: |
018585 |
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CIN No.: [Company
Identification No.] |
U74210MH1975PTC018585 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMW02485A |
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PAN No.: [Permanent
Account No.] |
AAACW0328C |
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Legal Form : |
Closely held Public Limited Liability Limited Company |
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Line of Business : |
Manufacture of Materials Handling Equipments |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 1200000 |
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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 having satisfactory
track. Fundamentals are strong and healthy. Trade relations are fair.
Business is active. Payments are correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Narsimhan |
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Designation : |
Vice President |
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Date : |
18.06.2008 |
LOCATIONS
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Registered Office : |
Industry Manor, Near Century Bazar, Prabhadevi, Mumbai – 400025,
Maharashtra, India |
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Tel. No.: |
91-22-24301211 / 24224245 |
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Fax No.: |
91-22-24309175 / 24321187 |
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E-Mail : |
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Website : |
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Plant 1 : |
Bhandup Village Raod, Bhandup, Mumbai – 400078 |
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Plant 2 : |
Plot No. C – 63, MIDC, Jejuri, Pune - 412302 |
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Branches : |
˛ 4 / 2, Millers Road,
Bangalore – 560052 ˛ 10, Middleton
Row, Kolkata – 700071 ˛ 302 / 303,
Bhandari House, 91, Nehru Place, New Delhi - 110019 |
DIRECTORS
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Name : |
Mr. Gopal A Vaziran |
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Designation : |
Chairman and Managing Director |
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Address: |
602, Prabhu Kutir, Altamount Road, Mumbai 400026, Maharashtra, India |
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Date of Birth : |
22.08.1937 |
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Date of Appointment : |
06.10.1975 |
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Name : |
Mrs. Padma G. Vazirani |
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Designation : |
Director |
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Address: |
602, Prabhu Kutir, Altamount Road, Mumbai 400026, Maharashtra, India |
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Date of Birth : |
21.06.1942 |
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Date of Appointment : |
10.08.1993 |
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Name : |
Mr. Dinesh G. Vazirani |
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Designation : |
Director |
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Address: |
2nd Floor, Rusi House, Darabshaw Lane, Off Nepensea Road, Mumbai 400036, Maharashtra,
India |
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Date of Birth : |
13.02.1967 |
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Date of Appointment : |
12.06.1996 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 05.09.2006]
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Names of Shareholders |
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No. of Shares |
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Mrs. Padma Vazirani and Mr. Gopal A. Vazirani |
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189000 |
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Mr. Gopal Vazirani and Mrs. Padma Vazirani |
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335800 |
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Mrs. Padma Vazirani and Mr. Dinesh Vazirani |
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115400 |
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Mr. Dinesh Vazirani and Mr. Gopal Vazirani |
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235900 |
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Granada Energy Systems Private Limited |
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123800 |
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Dynamic Designs and System Private Limited |
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10 |
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Royal Systems and Methods Private Limited |
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10 |
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Total |
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999920 |
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Equity Share
Break-up [As on 31.03.2007] |
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Percentage of
Holding |
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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 : |
Manufacture of Materials Handling Equipments |
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Products : |
Cranes: General Purpose EOT
Cranes Bulk Handling
Equipment : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Cranes |
Nos. |
305 |
265 |
144 |
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Fabrication |
Nos. |
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200 |
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GENERAL
INFORMATION
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Customers : |
© Public Utilities
Boards, Singapore © International Combustion
Limited, Parganas © Movers (India)
Private Limited, Kenya © SMS India
Limited, Bangladesh © Aarti Strips
Private Limited, Nepal © Athi River
Mining Limited, Kenya © Amreli Steels
Private Limited Karachi, Pakistan |
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Bankers : |
Ing Vysya Bank Limited Mittal Towers, A – Wing, Ground Floor, 210, Nariman point, Mumbai -
400021 |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
H.N. Mehta Associates Chartered Accountants |
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Address : |
50 – 51, 4th Floor, Alli Chambers, Tamarind Lane, Flora
Fountain, Mumbai – 400023, Maharashtra, India |
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Associates : |
˛ Granada Energy
Systems Private Limited ˛ Strom Kraft
Controls ˛ Dynamic Designs
and Systems Private Limited ˛ Planet Safffron
India Private Limited ˛ Saffron Art
Private Limited ˛ Sensational
Trading Private Limited ˛ Royal Systems
and Methods Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs.10/- each |
Rs. 25.000 Millions |
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420000 |
8% Redeemable Cumulative Convertible Preference Shares |
Rs.10/-each |
Rs. 4.200 Millions |
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1080000 |
11% Redeemable Cumulative Preference Shares |
Rs.10/-each |
Rs. 10.800 Millions |
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Total |
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Rs. 40.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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999920 |
Equity Shares |
Rs.10/- each |
Rs.9.999
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 |
9.999 |
9.999 |
9.999 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
245.988 |
132.838 |
88.834 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
255.987 |
142.837 |
98.833 |
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LOAN FUNDS |
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1] Secured Loans |
114.606 |
23.279 |
58.452 |
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2] Unsecured Loans |
23.953 |
23.953 |
24.494 |
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TOTAL BORROWING |
138.559 |
47.232 |
82.946 |
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DEFERRED TAX LIABILITIES |
42.220 |
1.031 |
0.000 |
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TOTAL |
436.766 |
191.100 |
181.779 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
355.335 |
92.407 |
67.865 |
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Capital work-in-progress |
1.106 |
12.458 |
5.080 |
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INVESTMENT |
1.551 |
0.784 |
0.001 |
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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 |
77.604
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105.014 |
113.708 |
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Sundry Debtors |
270.308
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181.033 |
151.918 |
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Cash & Bank Balances |
75.826
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97.370 |
1.988 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
95.808
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44.171 |
34.521 |
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Total
Current Assets |
519.546
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427.588 |
302.135 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
384.155
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317.023 |
185.290 |
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Provisions |
56.617
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25.114 |
8.012 |
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Total
Current Liabilities |
440.772
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342.137 |
193.302 |
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Net Current Assets |
78.774
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85.451 |
108.833 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
436.766 |
191.100 |
181.779 |
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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 |
957.543 |
689.452 |
434.247 |
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Other Income |
12.966 |
7.725 |
2.071 |
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Total Income |
970.509 |
697.177 |
436.318 |
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Profit/(Loss) Before Tax |
185.858 |
70.161 |
22.481 |
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Provision for Taxation |
72.709 |
26.157 |
7.563 |
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Profit/(Loss) After Tax |
113.149 |
44.004 |
14.918 |
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Earnings in Foreign Currency : |
56.027 |
14.756 |
8.948 |
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Imports : |
12.466 |
16.829 |
9.228 |
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Expenditures : |
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Manufacturing Expenses |
611.903 |
494.659 |
340.865 |
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Administrative Expenses |
72.114 |
57.580 |
45.855 |
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Interest |
5.676 |
1.706 |
8.372 |
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Depreciation & Amortization |
13.652 |
5.563 |
4.626 |
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Staff Costs |
59.098 |
61.495 |
47.476 |
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Increase/Decrease in work in progress |
22.208 |
6.013 |
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Total Expenditure |
784.651 |
627.016 |
447.194 |
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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 |
(%) |
11.66
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6.31 |
3.43 |
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Net Profit Margin (PBT/Sales) |
(%) |
19.40
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10.17 |
5.17 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
21.24
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13.49 |
6.07 |
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Return on Investment (ROI) (PBT/Networth) |
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0.73
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0.49 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.26
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2.73 |
19.5 |
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Current Ratio (Current Asset/Current Liability) |
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1.18
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1.25 |
1.56 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges Report
as per Registry
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This form is for |
Modification of
charge |
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Charge
identification number of the modified
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80010837 |
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Corporate
identity number of the company |
U74210MH1975PTC018585 |
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Name of the
company |
WMI CRANES
LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
Industry Manor, Prabhadevi, Mumbai – 400025, Maharashtra |
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Type of charge |
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Particular of
charge holder |
ING Vysya Bank
Limited Mittal Towers, A
Wing, Ground Floor, 210, Nariman Point, Mumbai 400021, Maharashtra, India |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
general hypothecation agreement |
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Date of instrument
Creating the charge |
21.09.2007 |
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Amount secured by
the charge |
Rs. 200.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest BG : Commission
1.50% p.a. Terms of Repayment
Terms of
repayment BG : On demand Extent and
Operation of the charge Exclusive first
charge on inventory, receivables and other current assets of the company for
all the facilities. First charge on
movable fixed assets of the company both present and future. |
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Short particulars
of the property charged |
All the inventory
and other current assets of the company at the premises of the company or any
whereelse. Movable fixed assets
of the company and receivables of the company from time to time. |
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Date of latest
modification prior to the present modification |
28.02.2007 |
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Particulars of
the present modification |
The BG Limit has
been enhanced from Rs. 150.000 Millions to Rs. 200.000 Millions. Hypothecation of
inventory, receivables and other current assets and movable fixed assets of
the company has been extended to the enhanced limit. |
Fixed Assets:
˛
Land
˛
Buildings
˛
Railways Sidings
˛
Plant and Machinery
˛
Computers
˛
Furniture and Fixtures
˛
Typewriters
˛
Telephone
˛
Installations
˛
Electrical
˛
Fittings
˛
Office Equipments
˛
Vehicles
˛
Air Conditioning
Contingent Liabilities not provided in respect of:
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Particulars |
As on 31.03.2007 [Rs. In Millions] |
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Sales Tax Demands in appeal |
7.933 |
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Corporate Guarantees furnished by the company |
63.007 |
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Guarantees given by Bankers |
104.122 |
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Central Excise demands in appeal |
1.940 |
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Income tax demand in appeal |
4.709 |
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Stamp duty and Regn. Charges of Delhi office alongwith transfer fees |
0.311 |
Directors Reports:
OPERATIONS
They have taken
active part in the Economic Growth of the country and this year they have recorded
Turnover of Rs. 948 Millions. Looking at the challenge of the growing market,
they have taken necessary steps for Upgradation of Technology, installed new
machines and additional manufacturing facilities at their plant at Jejuri at
Pune.
Subject has more
than 45 years experience in the Design and Manufacture of Cranes and when it
comes to supply of Heavy Duty Cranes, which means the availability of Crane 18
to 20 hours a day, the customers give importance to technology, quality and
experience and they are the preferred supplier of such type of cranes. Some of
the examples of Heavy Duty Cranes supplied are:
1. 2 Nos. 300/40/5T x 23M Span EOT Crane for Bharat
Heavy Electricals – Bhopal for Kol Dam Project.
2. 1 No. 150/30T x
14.5M Span EOT cranes for Meghalaya State Electricity Board, Shillong.
3. 1 No. 90/20T x
20M Span EOT Crane and 1 No. 60T x 25.6M Span Slab Handling Crane for Welspun
Gujarat Stahl Rohren Limited, Anjar.
4. 1 No. 200/20T x
22M Span EOT Crane for Indo Tech Transformer Limited – Chennai.
The backlog of
Orders as on date is Rs. 1230.000 Millions.
Looking at the economic situation they expect to take a share of market
to the extent of orders at Rs. 30.000 to Rs. 40.000 Millions every month.
Keeping in view recent investment in Plant and Machinery they expect to keep
momentum of growth at the rate of 35% and more.
MODERNISATION OF MACHINE SHOP AT BHANDUP
During the year
they have installed 2 Nos. HAAS USA make CNC Horizontal Machining Center and
CNC Lathe. This has helped to maintain
accuracy, quality and extra production tempo.
Both these Machines are working satisfactorily. Order for one additional Machine. CNC Lathe have been placed to cope up with
additional work and expected to be commissioned before September 23007.
DIVERSIFICATION WIND TURBINE
As a part of
diversification, during the year, Company has installed 2 nos. Wind Turbine Generators of 1250 KW each at
Dhulia, Maharashtra and 2 nos. of 600 KW each at Tenkasi, Tamilnadu and these
units are commissioned and working satisfactorily.
IMPLEMENTATION OF
ERP FOURTH SHIFT PACKAGE
Company is in the
process of implementing ERP Fourth Shift package for Purchase/Planning/
Manufacturing/Sales activities and the work has been entrusted to Softbrand
Research India Pvt. Ltd., Bangalore and it is likely to be completed and
implemented by end of 2007.
EXPORTS
During the year
the Company has exported Cranes to Pakistan, Kenya, Sultanate of Oman,
Dubai and Spare parts to Bangladesh and Dubai for value of Rs. 56.000 Millions.
OPERATION OF PLANT
SITUATED AT JEJURI
Operation of the
Plant at Jejuri is satisfactory. During the year, the turnover at Jejuri Plant
is Rs. 290 Millions. To facilitate increase in Production, One more Shed of
approximately 3200 Sq. M. have been constructed and put into use. Operation of
Jejuri Plant is satisfactory.
FINANCE AND
ACCOUNTS
During the Year,
the Company has achieved a turnover of Rs. 948 Millions as against Rs. 691
Millions in the previous Year resulting in an increase of 37%, which is
considered a good achievement.
For the Year the
Gross Profit before depreciation and interest works out to Rs. 205.187 Millions
as against Rs. 77.430 Millions in the previous year showing an increase of
265%. A sum of Rs. 13.652 Millions towards depreciation and Rs. 5.676 Millions
towards interest have been provided resulting in a Profit of Rs. 185.860
Millions and after providing Rs. 72.710 Millions towards Income Tax/Deferred
Income Tax, Fringe benefit Tax, Wealth Tax and previous Year Taxes, balance Rs.
113.150 Millions is carried forward to Appropriation Account.
AS PER WEBSITE DETAILS
Company Profile:
In the modern era industrial development has been one of the
of positive change the world over. A necessity for industrialisation is the
evolution and formation of strong power and material handling industries. WMI
provides solutions in both these industries. WMI can provide the best solution
to any material handling problem coupled with satisfying any consumers need for
cost effective power. With solutions to both these problems industries can move
towards rapid development and technological enhancement.
Subject is the leading
manufacturer of material handling equipment in India, pioneering the revolution
of reliability and performance.
Subject equipment can be found in all parts of the country
in a range of widely differing applications. Currently, WMI has supplied over
5,000 cranes all over India, solving problems in the lifting and handling area.
An all India network of strategically located offices staffed by experienced
Marketing and Service Engineers carry forward WMI's pioneering spirit towards
problem solving. Add to this a modern manufacturing facility and an unflinching
dedication to quality and you have a product that exceeds customer
expectations.
Subject has a long standing association with MAN TAKRAF and MAN B&W
(Germany), Europe's leading suppliers of capital goods.
MAN TAKRAF is the material handling division of MAN AG, concentrating on
specialised mining equipment and bulk material handling products. The annual
turnover of MAN AG is DM 18 billion and the Group employs about 57,000 people.
WMI and MAN TAKRAF are partners for various projects in India.
WMI Cranes excellence stems from a vision towards innovation and leadership in
technology and quality To enhance it's own efforts towards continuous
improvement and to adopt the world's best technologies, WMI has associated
itself with the world leader in the material handling industry, namely MAN
TAKRAF of Germany
Subjects excellence stems from a vision towards innovation and
leadership in technology and quality. WMI strives to enhance it’s own efforts
towards continuous improvement and to adopt the best technologies available in
the world.
WMI Cranes Limited, the leading manufacturers of cranes in India are the
Pioneers in the manufacturing of Material Handling Equipment in the country.
Today WMI’s name is
synonymous with heavy lifting. An array of WMI cranes have been supplied
all over India. Each crane a creative solution to special handling problem.
These cranes are extensively used for Handling materials in Machine shop,
Structural shop, Chemical, Fertilizer and Paper plants, Cement Factories, Dams,
Stock yards, etc.. All cranes are engineered and built to meet the requirements
of all. users. Thus tailor made for the job, these units handle the load with
utmost ease of. maintenance, efficiency and economy.
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. 42.97 |
|
UK Pound |
1 |
Rs. 84.75 |
|
Euro |
1 |
Rs. 66.72 |
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 |
YES |
|
--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 |
|