MIRA
INFORM REPORT
|
Report Date : |
14.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
LOHIA STARLINGER LIMITED |
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Registered Office : |
D-3/ A, Panki Industrial Estate, Kanpur – 208022, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.10.1981 |
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Com. Reg. No.: |
20-5446 |
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CIN No.: [Company
Identification No.] |
U29263UP1981PLC005446 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPL00020G KNPL01083F KNPL00108D |
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PAN No.: [Permanent
Account No.] |
AAACL2470J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of spinning machines for plastic woven fabric and
textile industry. |
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 5000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are fair. Business is active. Payments are slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/ Head Office/ Factory : |
D - 3/A Panki Industrial Estate, Kanpur – 208022, Uttar Pradesh, India
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Tel. No.: |
91 – 512 – 282001-9 / 2211221 (7 lines ) / 2272001 to 2272009/ 3045100 |
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Fax No.: |
91 – 512 – 282012 / 282205 / 2211249 /
2822149/ 3045599 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Location : |
Industrial Area |
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Factory 2 : |
Dercitex Components Manufacturing Company, 446-48/49, Mallwan,
Chaubeypur, District Kanpur Dehat, Uttar Pradesh, India |
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Factory 3 : |
Lohia Packing Machinery, 443-445/A, Mallwan, Chaubeypur, District
Kanpur Dehat, Uttar Pradesh, India |
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Tel No.: |
91-5112-282001 |
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Fax No.: |
91-5112-282205 |
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Factory 4: |
Lohia Packing Machinery, 910/4/3/1, Dok Mardi Amli, Silvassa – 396 230,
Union Territory |
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Factory 5 : |
Lohia Machinery Manufacturers, 499-500/A, Amilika, Chaubeypur,
District Kanpur Dehat, Uttar Pradesh, India |
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Factory 6 : |
Lohia Industrial Complex Chaubepur, Kanpur – 209 203, Uttar Pradesh,
India |
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Tel. No.: |
91-5112-282001 |
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Fax No.: |
91-5112-282205 |
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Branch : |
Located at : ˜
60, Trivenipark Bungalow, Auda Staff Soceity, Opp. Surdhara Bungalow,
Drive-In, Ahmedabad – 380 052, Gujarat Tel No. 91-79-27450943 Fax No.
91-79-27450963 ˜
544, 9th Cross, 7th Main, Sadhasivnagar,
Bangalore – 560080, Karnataka, India Tel No. 91-80-3340429 Fax No. 91-80-3344795 ˜
F-38, Maker Tower, Cuffee Parade, Mumbai – 400005, Maharashtra, India Tel No. 91-22-22184449 Fax No. 91-22-22187578 ˜
B-2/15, Safdarjung Enclave, New Delhi – 110029, India Tel No. 91-11-26163281 Fax No. 91-11-26195476 |
DIRECTORS
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Name : |
Mr. Raj Kumar Lohia |
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Designation : |
Managing Director |
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Address : |
113/91, Swaroop Nagar, Kanpur – 208 002, Uttar
Pradesh, India |
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Date of Birth/Age : |
21.08.1954 |
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Qualification : |
B.A. (Economics) |
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Date of Appointment : |
05.10.1981
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Other Directorships : |
Lohia Packaging Machines Limited Lohia Machinery Manufacturers Limited |
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Name : |
Mr. Vinay Sah |
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Designation : |
Whole Time Director |
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Address : |
Flat No. 3, Classic Apartments, 113/4,
Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
23.05.1955 |
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Date of Appointment : |
01.011997 |
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Email : |
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Name : |
Mr. Anurag Kumar Lohia |
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Designation : |
Whole Time Director |
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Address : |
Saket, 3A/ 88, Azad Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
18.05.1969 |
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Date of Appointment : |
27.07.2002 |
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Email : |
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Name : |
Mr. Rajendra Kumar Newatia |
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Designation : |
Director |
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Address : |
7/96, Tilak Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
01.01.1945 |
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Date of Appointment : |
01.01.1981 |
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Name : |
Mr. Gopal Chandra Lohia |
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Designation : |
Director |
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Address : |
7/153-B, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
05.07.1937 |
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Date of Appointment : |
04.04.1983 |
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Email : |
KEY EXECUTIVES
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Name : |
Mr. Arvind Kumar Bhargava |
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Designation : |
Company Secretary |
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Address : |
107 Bima Vihar, Lakhanpur, Kanpur – 208 024, Uttar Pradesh, India |
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Date of Birth/Age : |
23.03.1963 |
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Date of Appointment : |
16.05.1995 |
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Tel. No. : |
91-512-2582698 |
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Email : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
Percentage |
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Foreign Holdings (foreign institutional investors, foreign companies,
foreign financial institutions, non-resident Indian or overseas corporate
bodies or others) |
36.65 |
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Bodies corporate (not mentioned above) |
43.21 |
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Directors or relatives of directors |
17.35 |
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Other top fifty (50) shareholders (other than listed above) |
0.49 |
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Others |
2.30 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of spinning machines for plastic woven fabric and
textile industry. |
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Products : |
Generic Names of the Principal Products of the Company are : Ř Machinery for
manufacture of woven plastic Fabric Ř Machinery for processing
of man made yarns Ř Machinery parts
/ components Ř Other spares and
accessories
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Terms : |
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Selling : |
It sells against Cash, L/C or Credit terms |
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Purchasing : |
The company purchases its requirements against Cash, Credit or L/C terms |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
Around 1000 |
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Bankers : |
Ř State Bank of
India, Overseas Branch, 15/54 B Virendra Smriti Complex, Civil Lines, Kanpur
– 208 001, Uttar Pradesh, India Ř State Bank of
India, Co-operative Industrial Estate Branch, Kanpur, Uttar Pradesh, India Ř Canara Bank, Kanpur - 208001, Uttar Pradesh, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anil Pariek and Garg Chartered Accountants |
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Address : |
33 Anand Bazar, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Tel. No.: |
91-512-2214829 |
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Parent Company : |
Lohia Group |
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Associates : |
Ř Threads India
Limited Ř Lohia Precision
Works Limited Ř Lohia Machinery Manufactures
Limited Ř Lohia Packaging
Machines Limited Ř Precitex
Components Manufacturing Company Ř LML Limited Ř Hargovind Bajaj
Research & Development Centre Ř Injecto Plast
Private Limited Ř Lohia Sales
& Services Limited Ř Precitex Components
Manufacturing Company |
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Subsidiaries : |
U24139UP1985PLC006983
U17115UP1987PLC009240
U72200UP2000PTC025199
U29261UP2002PLC026468
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity shares |
Rs. 10/- each |
Rs. 120.000 millions |
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Issued, Subscribed Capital :
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No. of Shares |
Type |
Value |
Amount |
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5075000 |
Equity Shares |
Rs.10/- each |
Rs. 50.750 millions |
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Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5071450 |
Equity Shares |
Rs.10/- each |
Rs. 50.715 millions |
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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 |
50.714 |
50.714 |
50.714 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1020.913 |
733.648 |
505.827 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1071.627 |
784.362 |
556.541 |
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LOAN FUNDS |
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1] Secured Loans |
192.804 |
169.959 |
110.639 |
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2] Unsecured Loans |
1.607 |
4.368 |
5.864 |
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TOTAL BORROWING |
194.411 |
174.327 |
116.503 |
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DEFERRED TAX LIABILITIES |
41.294 |
29.342 |
35.082 |
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TOTAL |
1307.332 |
988.031 |
708.126 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
558.215 |
386.353 |
294.747 |
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Capital work-in-progress |
211.338 |
35.430 |
10.198 |
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INVESTMENT |
87.642 |
77.555 |
92.100 |
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|
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
603.365
|
535.964
|
393.540 |
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Sundry Debtors |
114.200
|
118.919
|
96.292 |
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Cash & Bank Balances |
21.190
|
61.146
|
16.782 |
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Other Current Assets |
38.355
|
20.001
|
13.327 |
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Loans & Advances |
184.645
|
101.212
|
123.975 |
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Total
Current Assets |
961.755
|
837.242
|
643.916 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
488.785
|
323.210
|
313.123 |
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Provisions |
22.833
|
25.339
|
19.712 |
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Total
Current Liabilities |
511.618
|
348.549
|
332.835 |
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Net Current Assets |
450.137
|
488.693
|
311.081 |
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TOTAL |
1307.332 |
988.031 |
708.126 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2707.747 |
2349.376 |
1922.252 |
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Other Income |
8.308 |
3.745 |
0.000 |
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Total Income |
2716.055 |
2353.121 |
1922.252 |
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Profit/(Loss) Before Tax |
444.532 |
369.288 |
185.291 |
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Provision for Taxation |
157.266 |
141.467 |
74.013 |
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Profit/(Loss) After Tax |
287.266 |
227.821 |
111.278 |
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Expenditures : |
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Raw Material Consumed |
1505.473 |
1392.926 |
998.413 |
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Consumption of stores and spares parts |
70.524 |
43.066 |
37.504 |
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Increase/(Decrease) in Finished Goods |
(26.499) |
(97.441) |
29.181 |
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Salaries, Wages, Bonus, etc. |
184.812 |
154.461 |
137.916 |
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Managerial Remuneration |
13.732 |
10.060 |
7.189 |
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Payment to Auditors |
0.829 |
0.474 |
0.554 |
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Interest |
14.229 |
5.333 |
5.981 |
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Insurance Expenses |
4.638 |
63.953 |
103.926 |
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Power & Fuel |
53.731 |
46.875 |
34.294 |
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Depreciation & Amortization |
71.749 |
54.402 |
63.417 |
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Other Expenditure |
378.305 |
309.724 |
318.586 |
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Total Expenditure |
2271.523 |
1983.833 |
1736.961 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
15.69
|
9.64 |
5.33 |
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Net Profit Margin (PBT/Sales) |
(%) |
15.71
|
9.63 |
8.50 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
27.63
|
17.80 |
13.92 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.47
|
0.33 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.70
|
1.87 |
1.83 |
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Current Ratio (Current Asset/Current Liability) |
|
2.40
|
1.93 |
1.81 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated on 3rd October, 1981 at Kanpur
in Uttar Pradesh having Company Registration Number 5446.
Subject is a part of Lohia Group.
The Group has currently interests in machine building for plastic and
textile industry, synthetic sewing yarn manufacture and engineering plastic
injection moulding, The group now has ambitious plans to diversify its operations
in other areas of business in the near future.
Subject is engaged in manufacturing of machinery for the flexible
packaging and synthetic textile industry.
In the area of flexible packaging, the company manufactures complete
range of woven sack machinery and in the area of textiles, machinery for the
processing of synthetic filaments.
It has state of the art manufacturing facilities in its various
divisions to manufacture plastic processing as well as textile machinery.
Customer’s satisfaction by delivering quality products has been the
corner stone of Lohia Group. The group, therefore, believes in manufacturing of
all critical and precision components in-house and to this end, the production
facilities of the group companies are equipped with high precision machine
tools and manned by team of well qualified and experienced engineers and
technicians.
Form 8
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Corporation identity number or foreign company registrations number of the company |
U29263UP1981PLC005446 |
|
Name of the company |
LOHIA STARLINGER LIMITED |
|
Address |
D - 3/A Panki Industrial Estate, Kanpur –
208 022, Uttar Pradesh, India |
|
This Form is for |
Modification of charge |
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Type of Charges |
Immovable property, Book debts, Movable property (not being pledge) |
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Particular of the charge holder |
State Bank of India Overseas Branch, 15/54 B Virendra Smriti Complex, Civil Lines, Kanpur
– 208 001, Uttar Pradesh, India |
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Nature or description of the instrument creating charge |
C-5, Letter Regarding the Grant of Individual Limit within the overall limit |
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Date of the instrument creating charge |
28.07.2008 |
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Amount Secure by the charge |
Rs. 271.300 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of Interest : Term Loan - Interest @ LIBOR + 2% Standby line of credit – as per arrangement letter Terms of Repayment : Terms Loan – repayable in 12 equal quarterly installments commencing from 31.12.2007. Standby line of credit – on demand Margin : Not applicable Extent and operation of the charge : Term Loan: first charge on the fixed assets proposed to be acquired out of Term Loan and Equitable Mortgage (EM) on immovable properties viz. D-2/1, D-2/2 and F-4 situated at Panki Industrial Estate and 418. 419 and 453 situated at Chaubepur and on specified Fixed Assets EM of land and building at 499-A and B and 500-A and B at Chaubepur and second charge over entire current assets of the company Others : SLC and FBP L/C: first charge over entire current asserts of the company and second charge on fixed assets proposed to be charged to Bank for Term Loan. |
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Particular of present modification |
As per Arrangement letter of SBI Date 25.04.2008
Outstanding Of Term Loan of US$ 5 Million is Rs. 221.300 Millions Outstanding of Standby Lines of Credit is Rs.50.000 Millions |
Website Details:
The company has
CAD / CAM facilities.
In addition to the state-of-the art manufacturing facilities to
manufacture woven sack machinery, the group has well equipped Research and
Development Division recognised by the Department of Science and Technology of
the Government of India. This centre is manned by highly qualified personnel,
with the main objective of continuous product development and providing value
added service to customers.
The company’s major overseas selling agents are located at Egypt, Iraq,
Malaysia, Singapore, Syria and Hong Kong.
Some of its’ major overseas selling agents are :
˜
Mahmoud M E1 Guindi, Egypt
˜
Ailayth Company for Trading Agencies, Iraq
˜
Vision Engineering & Technologies, Malaysia
˜
Russian Federation – Tortola BVI
˜
Syria – Kimex Limited, Syria
˜
Socialist Republic of Vietnam – Franco Pacific Ventures Company Limited,
Hong Kong
Lohia Starlinger Limited has state of the art manufacturing
facilities in its various divisions to manufacture plastic processing as well
as textile machinery. The company also has a well equipped R&D division
recognised by the department of science and technology of the Government of
India.
Panki Unit: Manufactures complete range of weaving machines and cheese
winders:
Chaubepur Unit: Manufactures complete range of Tape Stretching Line of extrusion capacities viz. 100kg/hr, 150kg/hr, 250kg/hr, 350kg/hr, 450kg/hr, 600kg/hr. and 900 kg/hr. etc.
It is engaged in as manufacturers of machinery for HDPE / PP, Woven Sacks, synthetic, textile, plastic, rayon, tape woven sacks and Textile Industries.
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 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.48.79 |
|
UK Pound |
1 |
Rs.75.41 |
|
Euro |
1 |
Rs.61.48 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|