MIRA
INFORM REPORT
|
Report Date : |
12.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BARON POWER LIMITED |
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Registered Office : |
1, Second Cross Street, Seethamma Colony Extension, Tenynampet, Chennai
– 600 018. Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.06.1995 |
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Com. Reg. No.: |
18-31952 |
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CIN No.: [Company
Identification No.] |
U40101TN1995PLC031952 |
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IEC No.: |
0495010359 |
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PAN No.: [Permanent
Account No.] |
AAACB2617D |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Subject is engaged in manufacturing, assembling and testing
of wind turbine generators |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 71000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. It’s payments
are report as slow but correct. General financial position is satisfactory. Profit margin is low. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered/ Corporate Office : |
1, Second Cross Street, Seethamma Colony Extension, Tenynampet, Chennai
– 600 018. Tamilnadu |
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Tel. No.: |
91-44-4970904/ 4992680/ 0931 |
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Fax No.: |
91-44-4995680 |
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E-Mail : |
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Website : |
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Area : |
1000 sq ft |
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Location : |
Owned |
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Factory : |
12, 5th Cross Street, CIT Colony, Mylapore, Chennai – 600
004, Tamilnadu, India |
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Tel. No.: |
91-44-22541214 |
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Area : |
10000 sq ft |
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Location : |
Rented |
DIRECTORS
|
Name : |
Mr. S.
Arunagiri |
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Designation : |
Managing
Director |
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Address : |
12, 5th
Cross Street, CIT Colony, Mylapore, Chennai - 600 004, Tamilnadu, India |
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Date of Birth/Age : |
01.05.1957 |
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Date of Appointment : |
22.03.1995 |
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Name : |
Mr.
Amutha Arunagiri |
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Designation : |
Director |
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Address : |
B6, 58,
Beemanna Gardeb Street, Chennai - 600 018, Tamilnadu, India |
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Date of Birth/Age : |
01.02.1962 |
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Date of Appointment : |
22.06.1995 |
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Name : |
Mr. R. P.
Shankar |
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Designation : |
Director |
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Address : |
1/58, II
Street, Sripuram Colony, St. Thomas Mount, Chennai - 600 016, Tamilnadu,
India |
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|
Name : |
Mr. T. S.
Kanthi |
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Designation : |
Director |
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Address : |
26, C, Bharathi
Dasan Colony, K.K. Nagar, Chennai - 600 076, Tamilnadu, India |
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Date of Birth/Age : |
22.05.1953 |
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Date of Appointment : |
22.06.1995 |
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Name : |
Mr.
Nandagopal |
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Designation : |
Director |
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Address : |
Besant Nagar
Extension, Chennai - 600 090, Tamilnadu, India |
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Name : |
Mr. Vedha
Narayanan |
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Designation : |
Director |
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Address : |
27012
Oakwaood Dr Apartment 208F, Cleaveland, Ohio, USA – 44138, |
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Name : |
Mr. C. G.
Rangabashyam |
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Designation : |
Director |
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Address : |
3,
Thiruveethi Amman Koil Street, Ramakrishna Puram, Chennai - 600 028,
Tamilnadu, India |
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Name : |
Mr. T.
Narayana Rao |
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Designation : |
Director |
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Address : |
26, Prakasam
Mudali Street, T. Nagar, Chennai - 600 017, Tamilnadu, India |
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Name : |
Mr. M. C.
Thirumoorthy |
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Designation : |
Director |
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Address : |
64,
Canterbury Road, Grosse Pointe woods, MI 48296, USA |
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KEY EXECUTIVES
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Name : |
Mr. S.
Arunagiri |
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Designation : |
Chief Executive |
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Name : |
Mr. J. Nithya |
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Designation : |
Sr.Marketing Coordinator |
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Name : |
Mr. B. Logeshwari |
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Designation : |
Marketing Coordinator |
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Name : |
Mr. R. Vanathi |
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Designation : |
Marketing Coordinator |
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Name : |
Mr. P.Selvakumar |
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Designation : |
Accounts Assistant |
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Name : |
Mr. P.Brahadambal |
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Designation : |
Accounts Assistant |
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Name : |
Mr. Prabakar Tiruvnkadam.k |
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Designation : |
Sr. Executive Tecnical |
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Name : |
Mr. S.Nalini Devi |
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Designation : |
Sr.Engineer Technical |
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Name : |
Mr. Arun Kumar |
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Designation : |
Data Entry Operator |
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Name : |
Mr. D.Justus Rabi |
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Designation : |
Sr. Manager Development |
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Name : |
Mr. Shanthi Charles |
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Designation : |
Office coordinator |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As On 28.09.2007)
|
Names of Shareholders |
|
No. of Shares |
|
Mr. S.
Arunagiri |
|
388290 |
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Mr.
Amutha Arunagiri |
|
87520 |
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Mr. T. S.
Kanthi |
|
42510 |
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Mr. M. C.
Thirumoorthy |
|
8640 |
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Rani Subramanian |
|
5000 |
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V. R. Tilakavathi |
|
10000 |
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V.P. Subbarayan |
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10000 |
|
T. Gunamani |
|
2500 |
|
Usha Balasubramanian |
|
34560 |
|
Muthuswamy Kurmar |
|
34560 |
|
Vedha Nayagam |
|
34560 |
|
Rasappa G. Arumugam |
|
10593 |
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Padmasini Sathi |
|
73593 |
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Latha Kanthi |
|
21250 |
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T.K. Saravanan |
|
21250 |
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A. Siddharth |
|
50000 |
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Total |
|
834826 |
Equity share breakup (percentage of total equity)
|
Category |
Percentage |
|
Foreign holdings (Foreign institutional
investors, Foreign companies, Foreign Financial Institutions, Non-resident indians
or Overseas corporate bodies or Others) |
21.00 |
|
Directors or relatives of directors |
79.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing, assembling and
testing of wind turbine generators |
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Products : |
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Agencies Held : |
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Import |
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Product: |
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Countries : |
Germany |
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Terms : |
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Selling : |
L/C (90 days) |
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Purchasing : |
Cash (30 and 60 days) |
GENERAL
INFORMATION
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Customers : |
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No of Employee : |
85 (Office-20, Factory-15, Brancges-50) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name 1 : |
Velu
Muthu Associates Chartered
Accountants |
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Address : |
1B Prabha, 10, Bishop Wallers Avenue (East), Mylapore,
Chennai - 600 004, Tamilnadu |
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Name 2 : |
R Radhakrishnan and Associates Chartered Accountants |
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Address : |
Flat No.4, Rams Refle Place 141, Eldams Road, Chennai – 600 018, Tamilnadu, India. |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
(As On 28.09.2007)
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 |
|
834826 |
Equity Shares |
Rs.10/- each |
Rs.8.348
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
|
|
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1] Share Capital |
8.348 |
8.348 |
8.348 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
5.865 |
4.759 |
0.302 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
14.213 |
13.107 |
8.650 |
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LOAN FUNDS |
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1] Secured Loans |
26.327 |
18.003 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
26.327 |
18.003 |
0.000 |
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DEFERRED TAX LIABILITIES |
1.966 |
0.000 |
0.000 |
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TOTAL |
42.506 |
3.111 |
8.650 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
18.036 |
2.533 |
1.862 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
12.970
|
14.842 |
8.469 |
|
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Sundry Debtors |
17.623
|
33.699 |
8.090 |
|
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Cash & Bank Balances |
4.791
|
3.940 |
1.407 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
3.043
|
6.960 |
2.995 |
|
Total
Current Assets |
38.427
|
59.441 |
20.961 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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|
Current Liabilities |
11.604
|
26.685 |
13.933 |
|
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Provisions |
2.353
|
4.179 |
0.240 |
|
Total
Current Liabilities |
13.957
|
30.864 |
14.173 |
|
|
Net Current Assets |
24.470
|
28.577 |
6.788 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
42.506 |
3.111 |
8.650 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
156.836 |
132.012 |
40.522 |
|
|
Other Income |
4.139 |
1.430 |
0.799 |
|
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Total Income |
160.975 |
133.442 |
41.321 |
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Profit/(Loss) Before Tax |
5.774 |
8.636 |
0.745 |
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|
Provision for Taxation |
3.415 |
3.344 |
0.760 |
|
|
Profit/(Loss) After Tax |
2.359 |
5.292 |
(0.015) |
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Imports : |
0.033 |
0.026 |
N.A |
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Expenditures : |
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Raw Material Consumed |
85.737 |
73.619 |
17.171 |
|
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Salaries, Wages, Bonus, etc. |
15.075 |
10.849 |
4.631 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
1.320 |
|
|
Payment to Auditors |
0.047 |
0.052 |
0.026 |
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Interest |
4.408 |
2.258 |
0.161 |
|
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Insurance Expenses |
0.163 |
0.078 |
0.052 |
|
|
Power & Fuel |
0.344 |
0.235 |
0.159 |
|
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Depreciation & Amortization |
1.866 |
0.712 |
0.400 |
|
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Other Expenditure |
47.561 |
37.003 |
16.656 |
|
Total Expenditure |
155.201 |
124.806 |
40.576 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.46
|
3.96 |
1.80 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
3.68
|
6.54 |
0.01 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.22
|
13.93 |
3.23 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.65 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.83
|
3.72 |
1.63 |
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Current Ratio (Current Asset/Current Liability) |
|
2.75
|
1.92 |
1.47 |
LOCAL AGENCY
FURTHER INFORMATION
Operations:
The company during the year has a sales turn over of Rs.156.836 Millions
as against Rs.132.012 Millions during the corresponding previous year.
Form 8
|
This form is for |
Modification of charge
|
|
Charge
identification number of the modified
|
90283361 |
|
Corporate
identity number of the company |
U40101TN1995PLC031952 |
|
Name of the
company |
Baron Power
Limited |
|
Address of the
registered office or of the principal place of business in India of the company |
1, Second Cross Street, Seethamma Colony Extention, Tenynampet,
Chennai – 600 018. Tamilnadu |
|
Type of charge |
Book Debts Movable Property Floating Charge Others |
|
Particular of
charge holder |
Canara Bank, Habibullah Road Branch, T. Nagar, Chennai – 600 017,
Tamilnadu, India |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
Common Hypothecation Agreement Term Loan
Agreement |
|
Date of instrument
Creating the charge |
05.05.2008 |
|
Amount secured by
the charge |
Rs.98.200
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As per the
document (Rate of interest is subject to change by the bank from time to
time) Terms of
Repayment As per the
document Margin As per the
document Extent and
Operation of the charge Exclusive First
Charge. Others All other terms
and conditions are as per the document. |
|
Short particulars
of the property charged |
Whole of the
securities, primary, collateral including the securities acquired and/ or to
be acquired out of the enhanced limits including under Term Loan of Rs.14.600
Millions made available now, whole of stocks, book debts and receivables,
both present and future, whole of machinery including 350KW suzlon make wind
turbine generator with accessories, morefully described in the agreements
enclosed. Separate form 8 is field for landed property. |
|
Date of latest modification
prior to the present modification |
08.12.2007 |
|
Particulars of
the present modification |
Credit limits are
enhanced from Rs.83.600 Millions to Rs.98.200 Millions comprising CC-Rs.17.500
Millions, LC-Rs.17.500 Millions, Supply Bills-Rs.17.500 Millions, BG
(ST)-Rs13.000 Millions (BG (ST)-Rs.2.800 Millions, BG-Rs.3.000 Millions,
TL-I-Rs.12.300 Millions, TL-II-ZRs.14.600 Millions and secured by the
properties given above morefully described in the documents enclosed. All
other terms and conditions of the original charge and subsequent modification
remain unchanged.) |
Fixed Assets
- Land
- Plant and
Machinery
- Wind Mill
- Computers and
Software
- Office
Equipment
- Furniture and
Fittings
- Tools and
Equipments
As Per Websites
Subject develops
& manufactures power quality products & energy management systems.
Established in 1995, the company is promoted by qualified and experienced
experts to offer products & services that meet the exact customers needs.
Professional management with thrust on customer
satisfaction enable the company to continuously specialize and innovate in
selected areas of Power Quality Products & Systems. Focusing on customers'
needs has distinguished Subject,
to offer products and solutions of state-of-the-art technologies. Excellent
after Sales Service and Track record of consistent performance levels put Subject as a Leader in their line of Activities.
Subject has numerous
Installations belonging to the prestigious Quality Conscious Clients. Quality
and Innovation has been Subject’s
Key to Success.
At a well laid out spacious Factory at Chennai, Power Quality Systems are manufactured with stringent Quality Tests to maintain the Quality of our System. Same quality for the bought-out components of the systems is ensured after conducting thorough Technical Assessment on the reliability, smoother operation of the Systems at Clients’ Installations.
With the well-trained strong team to extend Timely and Quality Solutions & Services and financial strength, Subject, has established a growth rate of more than 50% every year.
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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
38 |
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 |
|