MIRA
INFORM REPORT
|
Report Date : |
26.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SHILCHAR TECHNOLOGIES LIMITED |
|
|
|
|
Formerly Known As : |
SHILCHAR
ELECTRONICS LIMITED |
|
|
|
|
Registered Office : |
Bil Road, Bil District, Baroda, Vadodara – 391 410, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
13.01.1986 |
|
|
|
|
Com. Reg. No.: |
04-08387 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L29308GJ1986PLC008387 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BRDS03117C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AADCS3108B |
|
|
|
|
Legal Form : |
A closely held public limited liability company. |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Importer of Electronic and Tele
Communication Transformers, Distribution and Power Tranformers. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 780000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track
records. Trade relations are fair. Payments are usually correct and as per
commitments. Nothing adverse reported. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. P. Purohit |
|
Designation : |
Senior Manager in Finance and Accounts |
|
Contact No.: |
91-99244448207 |
|
Date : |
24.06.2008 |
LOCATIONS
|
Registered Office / Factory: |
Bil Road, Bil District, Baroda, Vadodara – 391 410, Gujarat, India |
|
Tel. No.: |
91-265-2680466 |
|
Fax No.: |
91-265-2680611 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
12000 Sq. ft. with factory |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Jitendra Chimanlal Shah |
|
Designation : |
Chairman |
|
Address : |
8, Amrakunj Society, Race Course, Vadodara – 390 007, Gujarat, India |
|
Date of Birth/Age : |
16.09.1937 |
|
Date of Appointment : |
30.07.2003 |
|
|
|
|
Name : |
Mr. Alay Jitendra Shah |
|
Designation : |
Managing Director |
|
Address : |
“Shlok” Bunglow, Near Aakashwan Bunglow, Gorti-Sevasi Road, Vadodara,
Gujarat, India |
|
Date of Birth/Age : |
04.07.1966 |
|
Date of Appointment : |
30.07.2003 |
|
|
|
|
Name : |
Mr. Ashesh Jitendra Shah |
|
Designation : |
Joint Managing Director |
|
Address : |
3, Rokdnath Society, Race Course, Vadodara – 390 007, Gujarat, India |
|
Date of Birth/Age : |
06.06.1964 |
|
Date of Appointment : |
30.07.2003 |
|
|
|
|
Name : |
Mr. Om Prakash Khanna |
|
Designation : |
Director |
|
Address : |
M-45, Diamond District, Airport Road, Bangalore – 560 008, Karnataka,
India |
|
Date of Birth/Age : |
24.10.1938 |
|
Date of Appointment : |
01.01.1995 |
|
|
|
|
Name : |
Mr. Mukesh Dahyabhai Patel |
|
Designation : |
Director |
|
Address : |
93, Urmi Society, Race Course, Vadodara – 390 005, Gujarat, India |
|
Date of Birth/Age : |
12.12.1945 |
|
Date of Appointment : |
01.01.1995 |
|
|
|
|
Name : |
Mr. Bhagirath Babubhai Merchant |
|
Designation : |
Director |
|
Address : |
Goverdhan Bhavan. 4th Floor, Jayhind Society, N S Road, 12
A JVPD Scheme, Mumbai, Maharashtra, India |
|
Date of Birth/Age : |
19.05.1946 |
|
Date of Appointment : |
01.01.1995 |
|
|
|
|
Name : |
Mr. Kiritkant P. Shah |
|
Designation : |
Director |
|
Address : |
801, W. Main Street, No. Manchester, Indiana, U. S. A. |
|
Date of Birth/Age : |
06.01.1939 |
|
Date of Appointment : |
25.10.1997 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
|
Foreign holdings (Foreign institutional
investor(s), Foreign companie (s), Foreign financial institution(s), Non-resident
Indian(s) or Overseas corporate bodies or Others |
26.27 |
|
Bodies Corporate |
0.16 |
|
Directors or relatives of directors |
69.50 |
|
Other top fifty (50) shareholders |
2.12 |
|
Others |
1.95 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Exporter and Importer of Electronic and Tele
Communication Transformers, Distribution and Power Tranformers. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
Exports : |
|
||||||||
|
Countries : |
·
U.S. ·
Switzerland ·
Germany ·
France ·
Japan |
||||||||
|
|
|
||||||||
|
Imports : |
|
||||||||
|
Products : |
·
Copper Wine ·
Silcon Steel Lamination |
||||||||
|
Countries : |
·
China ·
U.S. ·
South Korea |
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
Credit – 60 days |
||||||||
|
|
|
||||||||
|
Purchasing : |
L/C |
GENERAL
INFORMATION
|
Customers : |
Manufacturers |
|
|
|
|
No. of Employees : |
250 |
|
|
|
|
Bankers : |
·
State Bank of India Makarpura Industrial Estate, Branch VCCI.
Building, Vadodara – 390 010, Gujarat, India ·
Centurion Bank of Punjab Limited Ground Floor, Productivity Road, Alkapuri,
Vadodara – 390 007, Gujarat, India. ·
Bank of Baroda Alkapuri Branch, Opposite Petrol Pump, R.C.
Dutt Road, Alkapuri, Vadodara – 390 007, Gujarat, India |
|
|
|
|
Facilities : |
Rs.270.000 millions |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Naresh and Company Chartered Accountants |
|
Address : |
2nd Floor, City Enclave, Opp. Polo Ground, Vadodara – 390
001, Gujarat, India |
|
|
|
|
Associates/Subsidiaries : |
E-Cube India Solutions Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3813400 |
Equity Shares |
Rs.10/- each |
Rs.38.134
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 |
38.134 |
38.134 |
|
|
2] Share Application Money |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
117.874 |
93.740 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
|
|
NETWORTH |
156.008 |
131.874 |
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
151.192 |
78.015 |
|
|
2] Unsecured Loans |
12.714 |
14.412 |
|
|
TOTAL BORROWING |
163.906 |
92.427 |
|
|
DEFERRED TAX LIABILITIES |
11.985 |
6.014 |
|
|
|
|
|
|
|
TOTAL |
331.899 |
230.315 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
163.894 |
101.462 |
|
|
Capital work-in-progress |
0.000 |
5.012 |
|
|
|
|
|
|
|
INVESTMENT |
7.007 |
9.861 |
|
|
DEFERREX TAX ASSETS |
0.258 |
0.182 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
Inventories |
67.395
|
63.340 |
|
|
Sundry Debtors |
185.855
|
102.047 |
|
|
Cash & Bank Balances |
2.867
|
1.375 |
|
|
Other Current Assets |
1.047
|
0.565 |
|
|
Loans & Advances |
28.048
|
26.920 |
|
Total
Current Assets |
285.212
|
194.247 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
Current Liabilities |
115.504
|
72.329 |
|
|
Provisions |
8.968
|
8.128 |
|
Total
Current Liabilities |
124.472
|
80.457 |
|
|
Net Current Assets |
160.740
|
113.790 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.008 |
|
|
|
|
|
|
|
TOTAL |
331.899 |
230.315 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
578.709 |
364.380 |
|
|
Other Income |
0.845 |
0.971 |
|
|
Total Income |
579.554 |
365.351 |
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
36.155 |
14.218 |
|
|
Provision for Taxation |
12.817 |
5.906 |
|
|
Profit/(Loss) After Tax |
23.338 |
8.312 |
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Export Earnings |
41.134 |
32.107 |
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
Raw Material Consumed |
457.434 |
281.955 |
|
|
Consumption of stores and spares parts |
1.625 |
3.852 |
|
|
Increase/(Decrease) in Finished Goods |
(4.180) |
(0.629) |
|
|
Salaries, Wages, Bonus, etc. |
15.319 |
11.043 |
|
|
Managerial Remuneration |
1.540 |
1.491 |
|
|
Payment to Auditors |
0.151 |
0.075 |
|
|
Interest |
13.620 |
3.570 |
|
|
Insurance Expenses |
0.432 |
0.443 |
|
|
Power & Fuel |
2.268 |
2.530 |
|
|
Depreciation & Amortization |
6.476 |
4.014 |
|
|
Other Expenditure |
48.714 |
42.789 |
|
Total Expenditure |
543.399 |
351.133 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
4.03 |
2.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
6.25 |
3.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
8.05 |
4.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.23 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.85 |
1.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.29 |
2.41 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References :
·
Suzlon Infrastructures Limited – Halol –
Gujarat
·
Enercon India Limited – Daman
·
Reliance Energy Limited – Mumbai
Form No. 8
|
Name of the company |
SHILCHAR ELECTRONICS LIMITED |
||||||||||||||||||
|
Presented By |
Mr. Alay J Shah |
||||||||||||||||||
|
1) Date and description of instrument creating the change |
27th
May, 2005 Agreement for Hypothecation of Goods and Assets. |
||||||||||||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.60.000
millions |
||||||||||||||||||
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All present and
future goods, book debts and all other movable assets of the Borrower
including receivable by way of cash assistance and /or cash incentives under
the Cash Incentive Scheme or any other Scheme claims including claims by way
of refund of customs / excise duties under the Duty Drawback Credit Scheme or
any other Scheme, bills, invoices documents, contracts, insurance policies,
guarantees, engagements, securities, investment and rights and the present
machinery listed in the schedule hereinto and all future machinery belonging
to or in the possession or under the control of the Borrower wherever lying,
stored and kept and whether in possession of the Borrower or of the Bank or
of any third party whether in India or elsewhere throughout the world (
including all such goods, other movable assets as may be in course of shipment, transit or delivery)
(hereinafter referred to as “the said goods and assets’) by way of first
charge. |
||||||||||||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Facility:
Margin:
Interest at such
rate (s) as may be determined by the Bank from time to time. |
||||||||||||||||||
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India Makarpura Industrial Estate, Branch VCCI. Building, Vadodara – 390
010, Gujarat, India |
|
Corporate
identity number of the company |
L29308GJ1986PLC008387 |
|
Name of the
company |
SHILCHAR TECHNOLOGIES LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Bil Road, Bil District, Baroda, Vadodara – 390 018, Gujarat |
|
This form is for |
Modification of
charge |
|
Type of charge |
·
Book Debts ·
Movable
Property ·
others |
|
Particular of
charge holder |
Bank of Baroda Alkapuri Branch, Opposite Petrol Pump, R.C. Dutt Road, Alkapuri,
Vadodara – 390 007, Gujarat, India |
|
Nature of
instrument creating charge |
Supplemental
Composite Agreement of Hypothecation of Goods, Book Debts, Movable Machinery
and Vehicles dated 06.09.2007 |
|
Date of
instrument Creating the charge |
06.09.2007 |
|
Amount secured by
the charge |
Rs.277.100
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest 1.
Term Loan I
– 1.50% below BPLR i.e. 11.75% p.a. with monthly rests. 2.
Term Loan II
– 1.25% below BPLR i.e. 12% with monthly rests. 3.
Cash Credit
cum EPC cum FFBP / FBDCUM PSDL – 0.50% Below BPLR i.e. 12.75% p.a. with
monthly rests (Present BPLR is 13.75% p.a.) 4.
Inland /
Foreign LC: Commission as per Bank’s Guideline 5.
Bank
Guarantee : Commission as per Bank’s Gudelines. Terms of
repayment 1.
Term Loan I
: Repayable in 60 monthly installments, first installment from 26.04.2007 2.
Term Loan II
: Repayable in 36 monthly installments, First installment to Commerce I month
from takeover of Loan From CBPL. 3.
CC cum EPC
cum FFBP / FBDCUM PSDL: 12 months, subject to yearly review 4.
Inland /
Foreign LC : 12 months 5.
BG : 12
Months Margin 1.
Term Loan I:
25% 2.
Term Loan
II: 50% 3.
CC-25% of
RM.SIP, FG, Stores and Spares, Packing Materials, Book debts – 50%, EPC-10%
of CIF value for Packing Credit, FBP/FBD/PSDL – Nil 4.
Inland /
Foreign LC-DP L/C 10%, DA LC 15% 5.
BG: 10% Extent and
operation of the charge First Hypothecation
charge on Company’s Stock, Book Debts, Receivables, Movable Machinery, Spares
and Vehicles, Both Present and Future. Others The other terms
and conditions as per the sanction Letter Bearing No. ALKP/ADV/45/29 Dated
17.07.2007 |
|
Particulars of
the property charged |
Stock of Raw
Materials, Stock-in-Process, Finished Goods, Consumable Spares, Packing
Materials, All Book Debts and all the movable machinery of the company
including all stores and spare parts, both present and future, wheresoever situated. |
|
Particulars of
the present modification |
While renewing
the limits, The Bank has enhanced fund based and non-fund based facilities
from existing Rs.174.000 millions to Rs.277.100 millions. The break up of
revised limits is as follows. Term Loan I:
Rs.39.500 millions Term Loan II:
Rs.27.600 millions CC/EPC/FFBP/FBD/PSDL:
Rs.90.000 millions IL/Foreign LC:
Rs. 60.000 millions and BG: Rs.60.000
millions Thus, the
original charge created on 06.06.2006, modified on 17.10.2006 is now further
modified and extended to secure the revised limits of Rs.277.100 millions. |
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.42.82 |
|
UK Pound |
1 |
Rs.84.27 |
|
Euro |
1 |
Rs.66.62 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
|