MIRA INFORM REPORT

 

 

 

Report Date :

18.11.2008

 

IDENTIFICATION DETAILS

 

Name :

WADCO PACKAGING PRIVATE LIMITED

 

 

Formerly Known As :

WADCO RGS ELECTRO-PNEUMATICS PRIVATE LIMITED

 

 

Registered Office :

8, Candy House, Mandlik Road, Colaba, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

15.10.1975

 

 

Com. Reg. No.:

11-18598

 

 

CIN No.:

[Company Identification No.]

U29120MH1975PTC018598

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMW02135A

 

 

PAN No.:

[Permanent Account No.]

AAACW0338A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Importer of Corrugated Boxes, Boards and Rolls.

 

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 300000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Mrs. Trivedi (Accountant) parted require details on 3rd attempt.

 

Subject is a well established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct.

 

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

 

 

INFORMATION PARTED BY

 

Name :

Mr. Trivedi

Designation :

Accountant Department

Date :

17.11.2008

 

 

LOCATIONS

 

Registered Office :

8, Candy House, Mandlik Road, Colaba, Mumbai – 400001, Maharashtra, India

Tel. No.:

91 - 22 - 2202 2346/ 2106

Fax No.:

91 - 22 - 2202 2111

E-Mail :

wadcopackaging@vsnl.com

wadco@ip.eth.net

Area :

1000 sq. ft.

Location :

Owned

 

 

Administrative Office :

1103, Akash Deep, Barakhamba Road, New Delhi - 110 001, India

 

 

Factory 1:

Kolshet Road, Thane - 400 607, Maharashtra, India.

Location :

Owned

 

 

Factory 2:

B – 24, MIDC, Ranjangaon Industrial Area, Taluka: Shirur, District Pune – 412209, Maharashtra, India

Tel. No.:

91-2138-670459/ 460461

Fax No.:

91-2138-670470

Location :

Owned

 

 

DIRECTORS

 

Name :

Mr. Pankaj Wadhwa      

Designation :

Managing Director

Address :

15, Sea Gilmpse, Hill Road, Mumbai-400018, Maharashtra

Date of Birth/Age :

13.04.1963

Qualification :

M.B.A. (U.S.A.)

Experience :

11 years

Date of Appointment :

27.09.1990

 

 

Name :

Mr. Om Prakash Wadhwa

Designation :

Director

Address :

31, Mistry Court, Dinshaw Wachha Road, Mumbai-400020, Maharashtra

Date of Birth/Age :

24.11.1939

Date of Appointment :

15.10.1975

 

 

Name :

Mr. Vivek Wadhwa

Designation :

Executive Director

Address :

31, Mistry Court, Dinshaw Wachha Road, Mumbai-400020, Maharashtra

Date of Birth/Age :

23.03.1970

Date of Appointment :

05.04.2000

 

 

Name :

Mr. Rama Inder Sain Wadhwa

Designation :

Director

Address :

15 Sea Glimpse, Worli Hill Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

25.10.1933

Date of Appointment :

06.06.2008

 

 

Name :

Mrs. Payal Wadhwa

Designation :

Directors

Address :

15 Sea Glimpse, Worli Hill Road, Worli, Mumbai – 400018, Maharashtra, India

Date of Birth/Age :

02.06.1965

Date of Appointment :

14.12.2007

 

 

Name :

Mr. Inder Sain Wadhwa

Designation :

Director

 

 

Name :

Mr. Surinder Makkar

Designation :

Director

 

 

Name :

Mr. Taulo Iserhard

Designation :

Director

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 24.09.2008)

Names of Shareholders

No. of Shares

 

 

Pankaj Wadhwa

59394

Pankaj Wadhwa and Payal Wadhwa

89366

Aman Wadhwa and Pankaj Wadhwa

 26990

Payal Wadhwa and Pankaj Wadhwa

4150

Pankaj Wadhwa

100

 

 

Total

180000

 

(As on 30.09.2008)

Names of Shareholders

 

Percentage

 

 

 

Directors or their relatives

 

90.50

Other top 50 shareholders

 

9.50

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Importer of Corrugated Boxes, Boards and Rolls.

 

 

Products :

ITC Code

Product Description

 

 

48.19

Corrugated Boxes

 

 

Imports :

 

Products :

Paper

Countries :
  • Spain
  • Brazil

 

 

Terms :

 

Selling :

Cash and Credit (30-60 days)

 

 

Purchasing |:

C/C

 

 

GENERAL INFORMATION

 

Customers :
  • Wholesalers
  • End Users

 

 

No. of Employees :

40

 

 

Bankers :
  • Oriental Bank of Commerce

Fort Branch, Sir P M Road, Fort, Mumbai-400001, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2008

(Rs. In Millions)

From Bankers

 

Term Loans

31.022

Cash Credit

20.014

From a Bank – Vehicles Loans

1.619

 

 

Total

52.655

 

Note:

 

Term Loan from bank is secured by hypothecation of plant ands machinery and personal guarantee of directors

 

Cash Credit from a bank is secured against hypothecation of all stocks, stores and receivable , stock-in process, finished goods and personal guarantee of directors

 

The vehicles loans are secured by hypothecation of motors cars.

 

Installments repayable within one year

Term loan   Rs.7.658 Millions

Vehicles Loans   Rs.0.411 Millions

 

Unsecured Loans

31.03.2008

(Rs. In Millions)

 

 

Loan from Directors

0.654

Loan from Shareholders

0.018

Loan from Others – Related to Directors

0.167

Deferred Sales Tax Payment

26.270

 

 

Total

27.109

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Ashok Kumar Mehra and Company

Chartered Accountants

Address :

G1/G2, Saujanya, 16th Floor, Khar (West), Mumbai-400052, Maharashtra, India

 

 

Associates/Subsidiaries :

Wadco Tools Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

200000

Equity Shares

Rs.100/- each

Rs.20.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

180000

Equity Shares

Rs.100/- each

Rs.18.000 millions

 

 

 

 

 

Note:

 

Issued, Subscribed and Paid up Share Capital includes 15000 Equity Shares of Rs.100/- each issued as bonus shares by capitalization of reserves.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

18.000

18.000

18.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

35.256

31.440

29.225

4] (Accumulated Losses)

0.000

0.000

(2.478)

NETWORTH

53.256

49.440

44.747

LOAN FUNDS

 

 

 

1] Secured Loans

52.655

30.446

32.689

2] Unsecured Loans

27.109

32.352

27.953

TOTAL BORROWING

79.764

62.798

60.642

DEFERRED TAX LIABILITIES

1.732

0.000

0.000

 

 

 

 

TOTAL

134.752

112.238

105.389

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

96.885

69.582

56.546

Capital work-in-progress

0.000

0.000

16.186

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.803

3.762

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
24.215

17.439

19.506

 

Sundry Debtors
27.821

27.976

18.755

 

Cash & Bank Balances
0.479

0.749

0.464

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
8.124

8.421

7.595

Total Current Assets
60.639

54.585

46.320

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
18.587

9.988

15.382

 

Provisions
4.185

2.744

2.043

Total Current Liabilities
22.772

12.732

17.425

Net Current Assets
37.867

41.853

28.895

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

134.752

112.238

105.389

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

199.293

221.983

163.472

Other Income

0.000

0.000

0.000

Total Income

199.293

221.983

163.472

 

 

 

 

Profit/(Loss) Before Tax

7.515

9.259

2.040

Provision for Taxation

3.700

4.224

1.250

Profit/(Loss) After Tax

3.815

5.035

0.790

 

 

 

 

Expenditures :

 

 

 

 

Interest

0.000

0.000

4.168

 

Depreciation & Amortization

0.000

0.000

4.207

 

Other Expenditure

191.778

12.724

153.057

Total Expenditure

191.778

12.724

161.432

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)
1.91

2.27

0.48

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
3.77

4.17

1.25

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.77

7.46

1.66

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.14

0.19

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.93

1.53

1.74

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.66

4.29

2.66

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Expansion of Capacity:

 

The company commissioned the automatic “Five Ply Corrugation Machine” to enhance its capacity which started satisfactory commercials from 26th Oct 2007. The installed capacity as per the reports and accounts for financial year ended 31.03.2007 was 7000 MT and by adding this machine the capacity of Corrugated Board will go up by 100%.

 

 

Trade Reference:

 

 

Form 8

 

Name of the company

WADCO PACKAGING PRIVATE LIMITED

Presented By

Oriental Bank of Commerce, Fort Branch, Mumbai

1) Date and description of instrument creating the change

No instrument – Creation of equitable mortgage of Company’s immovable property on 07.01.2000.

2) Amount secured by the charge/amount owing on the securities of charge

Rs.53.400 millions covering the following facilities granted by the bank to the company

 

Nature of Facility

Amount of Limit (Rs. In millions)

Term Loan (Fresh)

20.000

Term Loan II

1.875

Term Loan III

0.525

Cash Credit (Hypothecation)

17.000

UBD

8.000

Import Letter of Credit

4.000

Guarantee

2.000

Total Limit

53.400

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

Mortgage of company’s immovable property at Plot No.B/24, Ranjangaon Industrial Area, Pune together with all buildings super structure. Plant and machinery constructed and or to eb constructed, installed and or to be installed and all accretions thereto to secure the repayment of all  liabilities/ advances already made or which may hereafter be made by the bank in respect of the aforesaid credit facilities and interest, costs and other charges payable in terms of loan agreement executed buy the company in favour of the bank from time to time.

4) Gist of the terms and conditions and extent and operation of the charge.

The rate of interest, commission and other charges for availing of the above facilities shall be as provided in the relevant agreements executed by the company in favour of the Bank from time to time upro an overall credit limit of Rs.53.400 millions sanctioned by the bank to the company.

5) Name and Address and description of the person entitled to the charge.

Oriental Bank of Commerce

Jash Chambers

Ground Floor

Sir P M Road

Fort, Mumbai-400001

6) Date  and brief description of instrument modifying the charge

No instrument memorandum for extension of equitable mortgage dated 01.01.2002 on the company’s immovable properties at Pune and by way of second modification of the enhancement in the overall credit limit sanctioned by the bank to the company from Rs.45.200 millions to Rs.47.200 millions.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

By the aforesaid modification the bank at the request of the company has granted an additional adhoc UBD limit of Rs.2.000 millions thereby enhancing the overall credit limit made available by the bank to the company from Rs.45.200 millions to Rs.47.200 millions on the following basis taking into consideration the additional adhoc UBD Limit as under :

 

Nature of Facility

Existing Limit

(Rs. In millions)

Revised Limit (Rs. In millions)

Cash Credit

10.000*

10.000 *(No charge)

UBD

7.000

9.000 (Increase of Rs.2.000 millions)

Term Loan IV

20.000

20.000 (No charge)

Term Loan V

8.200

8.200 millions (No charge)

Total Limit

45.200

47.200

 

*Sub limit – Book debts- Rs.7.000 millions

 

The rate of interest, commission and other charges for availing of the above facilities shall be as provided in the relevant agreement executed by the company in favour of the bank from time to time.

 

Security :

 

By the extension of mortgage the company has extended the security cover on the company’s immovable property situated at Plot No.B-24, Ranjangaon Industrial Area, Pune together with all buildings, super structure, plant and machinery constructed and or to be constructed, installed and or to be installed and all accretions thereto to secure the repayment of all  liabilities/ advances already made or which may hereafter be made by the bank in respect of the aforesaid credit facilities amounting to Rs.47.200 millions and interest, costs and other charges payable in terms of loan agreement executed buy the company in favour of the bank from time to time.

 

Save and except above, the terms and conditions stipulated in the original equitable mortgage created by the company on 07.01.2000 for Rs.53.400 millions on the aforesaid immovable property as modified by first modification by extension of mortgage on 12.04.2001 fir the revised reduced limit of Rs.45.200 millions sanctioned by the Bank to the company shall remain the same.

 

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