MIRA INFORM REPORT

 

 

 

Report Date :

15.11.2008

 

IDENTIFICATION DETAILS

 

Name :

VISHVA VISHAL ENGINEERING LIMITED

 

 

Registered Office :

31, Maker Chambers III, 3rd Floor, Nariman Point, Mumbai – 400021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

24.10.1985

 

 

Com. Reg. No.:

035656

 

 

CIN No.:

[Company Identification No.]

U28920MH1985PLC035656

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMV11365E

 

 

PAN No.:

[Permanent Account No.]

AAACV1290N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Refractories

 

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 600000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Mr. Sushil (Account Officer) and Mr. Kumtakar (Account Head) agreed to part details. If they part, we shall immediately up-date the same.

 

Subject is a well establishment company having satisfactory track. Trade relations are fair. The company is doing well. It’s payment are reported as slow but correct.

 

However the company can be considered normal for business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Kumtakar

Designation :

Account Head

Date :

14.11.2008

 

 

LOCATIONS

 

Registered Office :

31, Maker Chambers III, 3rd Floor, Nariman Point, Mumbai – 400021, Maharashtra, India

Tel. No.:

91-22-30283915/ 22831724/ 22883768/ 22844208/ 22816859

Fax No.:

91-22-22873611

E-Mail :

dokwalsushil@hotmail.com

vvel@bec-group.com

bec@bec-group.com

Website :

http://www.bec-group.com/vvel.htm

Location :

Rented

 

 

Corporate/ Head Office/

Factory :

4/5 Industrial Estate, Nandini Road, Bhilai – 490026, Chhattisgarh, India

Tel. No.:

91-788-4088100/ 4088636

Location :

Leased

 

 

DIRECTORS

 

Name :

Mr. Arvind Jain

Designation :

Director

Qualification :

Engineer

 

 

Name :

Mr. Rajeev Jain

Designation :

Director

Qualification :

M. Tech

 

 

Name :

Mr. Ashish Jain

Designation :

Director

Qualification :

MBA from USA

 

 

Name :

Mr. S R Vardarajan

Designation :

Director

Qualification :

M. Tech

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Refractories

 

 

Products :

Products Description

Item Code No.

 

 

Refractory Mass

381600.00

Electrical Energy

271600.00

 

 

Exports :

 

Countries :
  • Turkey
  • USA

 

 

Imports :

 

Products :

Raw Materials

Countries :
  • China
  • Hong Kong

 

 

Terms :

 

Selling :

L/C

 

 

Purchasing :

L/C

 

 

PRODUCTION STATUS (As on 31.03.2007)

 

Particulars

Unit

Installed Capacity*

Actual Production

 

 

 

 

Refractory Mass

MT

10200

7399.335

 

* Installed capacity being technical matter has been certified by the management and accepted by them

 

 

GENERAL INFORMATION

 

Customers :

Agents

 

 

No. of Employees :

205 (Office – 5 and Factory 200) (Contract Workers – 125)

 

 

Bankers :

Syndicate Bank, Bhilai

 

 

Facilities :

Secured Loans

31.03.2007

(Rs. In Millions)

 

 

Term Loan from Syndicate Bank for WTG

25.709

Term Loan from Syndicate Bank

0

Term Loan from Syndicate Bank for Building

5.022

Term Loan from Syndicate Bank for Plant and Machinery

10.813

Working Capital Loan from Syndicate Bank

18.764

Car Loan From CITY Bank NA

0

Car Loan From HDFC Bank

0.357

Car Loan From ICICI Bank

0.120

 

 

Total

60.785

 

Note:

 

  1. Working Capital loan and Terms Loans are secured by first mortgage of immovable properties situated at industrial Estate, Bhilai, Dewada, REajmamdgon, Kapatguda – Gadag of Stock of raw Materials, Book debts, receivables etc. of the company and guarantee by directors of the company.

 

  1. Vehicles Loans are secured against hypothecation of vehicles

 

  1. Installments of term loan payable during next 12 months  -  Rs.12.480 Millions

 

  1. Installments of vehicles loans payable during next 12 months – Rs.0.447Million

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

N. K. Taunk and Company

Chartered Accountant

Address :

 

 

 

Parent Company :

Bhilai Engineering Corporation Limited

 

 

Group Companies :

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3000000

Equity Shares

Rs.10/- each

Rs.30.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2500000

Equity Shares

Rs.10/- each

Rs.25.000 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

25.000

25.000

25.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

86.386

67.349

51.500

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

111.386

92.349

76.500

LOAN FUNDS

 

 

 

1] Secured Loans

60.785

75.937

41.100

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

60.785

75.937

41.100

DEFERRED TAX LIABILITIES

19.4569

14.121

0.000

 

 

 

 

TOTAL

191.640

182.407

117.600

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

118.407

108.948

50.200

Capital work-in-progress

0.000

3.153

0.100

 

 

 

 

INVESTMENT

8.257

8.259

1.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
23.688

30.439

25.200

 

Sundry Debtors
91.789

64.403

43.400

 

Cash & Bank Balances
1.311

5.458

7.900

 

Other Current Assets
23.992

19.718

0.000

 

Loans & Advances
0.002

0.007

30.400

Total Current Assets
140.782

120.025

106.900

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
65.186

51.544

35.200

 

Provisions
10.620

6.434

5.800

Total Current Liabilities
75.806

57.978

41.000

Net Current Assets
64.976

62.047

65.900

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

191.640

182.407

117.600

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

262.257

218.762

174.900

Other Income

0.000

0.000

0.400

Total Income

262.257

218.762

175.300

 

 

 

 

Profit/(Loss) Before Tax

29.544

28.516

10.300

Provision for Taxation

10.533

12.537

4.100

Profit/(Loss) After Tax

19.011

15.979

6.200

 

 

 

 

Export Value

1.432

1.779

NA

 

 

 

 

Import Value

14.384

15.391

NA

 

 

 

 

Expenditures :

 

 

 

 

Operational Expenses

63.573

58.927

41.300

 

Materials Consumed

145.790

120.935

111.100

 

Interest and Financial Charges

6.882

3.721

5.600

 

Depreciation & Amortization

16.149

6.663

6.600

 

Increase/(Decrease) in Finished Goods

0.319

0.000

0.400

Total Expenditure

232.713

190.246

165.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
7.25

7.30

3.54

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
11.27

13.04

5.89

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
11.40

12.45

6.56

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.27

0.31

0.13

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.23

1.45

1.07

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.86

2.07

2.61

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Website details:

 

Profile:

 

Subject was established a decade ago beginning with Cast House Refractories. It grew rapidly by accepting the challenges of the new millennium and by adding various new products like Porous Plug, Impact Pad, Ramming & Gunning Masses, Castables & Various Shaped Products.

 

The excellence is reflected through its quality supplies to Blast Furnaces of Capacity Ranging from 175 Cu. Mtr to 3200 Cu. Mtr, having diverse operating parameters, in almost all the integrated Steel Plants, Mini Steel Plants and Pig Iron Melters.

 

Subject is pushing ahead with latest scientific innovation, modern technology and upto date management techniques, it is also trying hard to remain sensitive to various aspects of customer’s requirements.

 

 

Fixed Assets:

 

 

 

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.49.46

UK Pound

1

Rs.73.17

Euro

1

Rs.62.96

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions