MIRA
INFORM REPORT
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Report Date : |
18.11.2008 |
IDENTIFICATION DETAILS
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Name : |
SHAKTI MET-DOR LIMITED |
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Registered Office : |
Plot No. 20, Sripuri Colony, Kakaguda, Secunderabad – 500 015, Andhra Pradesh |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
29.10.1988 |
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Com. Reg. No.: |
009207 |
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CIN No.: [Company
Identification No.] |
L65110AP1988PLC009207 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS01488E |
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PAN No.: [Permanent
Account No.] |
AADCS4024Q |
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Legal Form : |
A Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture of Steel Doors, Windows and Other Building Material
Products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1958000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track records. Financial position is good. Payments are correct and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 20, Sripuri Colony, Kakaguda, Secunderabad – 500 015, |
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Tel. No.: |
91-40-27840394/ 5 |
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Fax No.: |
91-40-27892327 |
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E-Mail : |
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Website : |
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Regional Office : |
615, 6th Floor, Somdutt Chamber II, 9, Tel: 91-11 32449581 Fax: 91-11 26171422 E-Mail: delhi.sales@shaktimetdor.com
No- 2819/B, Sector-42/C, Chandigarh-160
036 Cell: 91-9356226686 / 9350013264 Kolkata:
BK - 316, Sector - ll, E-Mail: kolkata.sales@shaktimetdor.com
No. 20, Sripuri Colony, Karkhana,
Secunderabad. Andhra Pradesh – 500 015. Tel: 91-40-27840394 / 5, Fax: 91-40-27892327 E-Mail: hyderabad.sales@shaktimetdor.com
Arora and Associates, # 111/1 & 111/2, Tel: 91-80-32916728 Fax: 91-80-25599840 E-Mail: bangalore.sales@shaktimetdor.com Chennai:
5/8, Dev Apartment, 1st Tel: 91-44-32950967 Fax: 91-44-24423620 E-Mail: chennai.sales@shaktimetdor.com Mumbai:
421, 4th Floor, Tel: 91-22 - 2415 8881 Fax: 91-22 - 2414 8276 E-Mail: mumbai.sales@shaktimetdor.com |
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Factory : |
Suvey No. 198, Gagillapuram, Qutubullapur Mandal, Rangareddy District
– 500 043, |
DIRECTORS
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Name : |
Mr. M.V.S.S. Subba Raju |
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Designation : |
Managing Director |
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Name : |
Mr. C. Shashidar Reddy |
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Designation : |
Executive Director |
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Name : |
Mr. U. Pradeep Kumar |
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Designation : |
Director |
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Name : |
Mr. V. Subba Rao |
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Designation : |
Director |
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Name : |
Mr. P.S. Reddy |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Ms. Girijabala K. |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
|
Category |
No. of Shares |
Percentage of
Holding |
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Promoter’s Holding |
1465195 |
53.21 |
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Non Promoter’s
Holding |
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Mutual Funds |
100 |
0.00 |
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Other Private Corporate Bodies |
422900 |
15.36 |
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Indian Public |
857150 |
31.13 |
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Clearing Members |
300 |
0.00 |
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NRIs |
8200 |
0.30 |
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Total |
2753845 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Steel Doors, Windows and Other Building Material
Products |
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Products : |
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PRODUCTION STATUS As on 31.03.2008
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Steel Door Sets |
Nos. |
60000 |
56293 |
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GENERAL INFORMATION
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No. of Employees : |
194 |
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Bankers : |
State Bank of |
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Facilities : |
Secured Loans :
Note: Working Capital facilities from State Bank of Unsecured Loans :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi and Shah Chartered Accountants |
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Address : |
714/ 715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400 021, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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4000000 |
Equity Shares |
Rs.10/- each |
Rs.40.000 millions |
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Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3607295 |
Equity Shares |
Rs.10/- each |
Rs.36.073
millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3499295 |
Equity Shares |
Rs.10/- each |
Rs.34.993 millions |
|
745450 |
Less: Calls in arrears (Equity Shares of out
of which Rs.7.50 is in arrears by others) |
Rs.10/- each |
Rs.7.455
millions |
|
745450 |
Add: Forfeited Shares – Equity Shares |
Rs.2.50/-
each |
Rs.1.864
millions |
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Total |
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Rs.29.402 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
29.402 |
29.402 |
29.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
362.173 |
247.124 |
151.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
391.575 |
276.526 |
180.500 |
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LOAN FUNDS |
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1] Secured Loans |
101.472 |
75.234 |
30.000 |
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2] Unsecured Loans |
6.038 |
8.284 |
10.100 |
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TOTAL BORROWING |
107.510 |
83.518 |
40.100 |
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DEFERRED TAX LIABILITIES |
9.546 |
8.039 |
0.000 |
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TOTAL |
508.631 |
368.083 |
220.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
152.810 |
126.773 |
92.100 |
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Capital work-in-progress |
44.052 |
11.462 |
0.300 |
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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 |
63.864 |
68.827 |
52.100 |
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Sundry Debtors |
196.317 |
132.532 |
87.400 |
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Cash & Bank Balances |
69.314 |
61.136 |
16.100 |
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Other Current Assets |
0.038 |
0.044 |
0.000 |
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Loans & Advances |
52.997 |
39.076 |
27.700 |
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Total
Current Assets |
382.530
|
301.615 |
183.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
59.284 |
60.989 |
48.800 |
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Provisions |
11.477 |
10.778 |
6.300 |
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Total
Current Liabilities |
70.761
|
71.767 |
55.100 |
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Net Current Assets |
311.769 |
229.848 |
128.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
508.631 |
368.083 |
220.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
730.948 |
635.995 |
491.400 |
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Other Income |
7.480 |
3.253 |
1.800 |
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Total Income |
738.428 |
639.248 |
493.200 |
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Profit/(Loss) Before Tax |
191.404 |
162.066 |
136.400 |
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Provision for Taxation |
66.635 |
55.516 |
47.100 |
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Profit/(Loss) After Tax |
124.769 |
106.550 |
89.300 |
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Earnings in Foreign Currency : |
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Export Earnings |
2.946 |
7.985 |
NA |
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Total Earnings |
2.946 |
7.985 |
NA |
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Imports : |
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Raw Materials |
63.173 |
39.640 |
NA |
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Others |
1.597 |
10.425 |
NA |
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Total Imports |
64.770 |
50.065 |
NA |
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Expenditures : |
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Raw Material |
0.000 |
0.000 |
203.900 |
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Excise Duty |
0.000 |
0.000 |
29.900 |
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Power and Fuel Cost |
0.000 |
0.000 |
3.200 |
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Employees Cost |
0.000 |
0.000 |
15.600 |
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Selling and Administration Expenses |
0.000 |
0.000 |
83.000 |
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Miscellaneous Expenses |
0.000 |
0.000 |
4.800 |
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Manufacturing and Other Expenses |
528.794 |
464.814 |
11.600 |
|
|
Increase/(Decrease) in Finished Goods |
(1.064) |
(0.589) |
(2.000) |
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Interest and Finance Charges |
9.755 |
4.167 |
3.000 |
|
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Depreciation & Amortization |
9.539 |
8.790 |
3.800 |
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Total Expenditure |
547.024 |
477.182 |
356.800 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
155.300 |
152.900 |
|
Other Income |
2.100 |
0.000 |
|
Total Income |
157.400 |
152.900 |
|
Total Expenditure |
116.500 |
137.200 |
|
Operating Profit |
40.900 |
15.700 |
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Interest |
2.100 |
4.800 |
|
Gross Profit |
38.800 |
10.900 |
|
Depreciation |
2.500 |
3.200 |
|
Tax |
11.900 |
3.100 |
|
Reported PAT |
24.400 |
4.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.29
|
0.27
|
0.31 |
|
Long Term Debt Equity Ratio |
0.02
|
0.04
|
0.08 |
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Current Ratio |
2.02
|
2.01
|
1.97 |
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TURNOVER RATIOS |
|
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|
Fixed Assets |
4.71
|
5.36
|
5.91 |
|
Inventory |
11.81
|
11.30
|
11.13 |
|
Debtors |
4.77
|
6.21
|
6.55 |
|
Interest Cover Ratio |
20.53
|
39.60
|
46.47 |
|
Operating Profit Margin (%) |
26.89
|
25.64
|
29.14 |
|
Profit Before Interest and Tax Margin (%) |
25.68
|
24.36
|
28.37 |
|
Cash Profit Margin (%) |
17.15
|
16.77
|
18.95 |
|
Adjusted Net Profit Margin (%) |
15.94
|
15.48
|
18.17 |
|
Return on Capital Employed (%) |
46.84
|
57.29
|
76.36 |
|
Return on Net Worth (%) |
37.39
|
46.26
|
64.24 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, was incorporated as Private Limited Company and
registered with the Registrar of Companies,
The company is an existing profit-making SSI unit (01 22 55699 - PMT/SSI/ Rural
dated: 31.3.1990) licenced to manufacture steel door frames and windows. The
Manufacturing operations of the company are carried out at Madhavi Nagar
Hyderabad and at
The Company has acquired expertise in manufacturing aesthetically appealing,
technically superior products which are manufactured in great degrees of
accuracies and tolerances. Company has also successfully developed doors for
clean room applications which are required in pharmaceuticals and
food-processing industries.
Dividend
The Board of Directors, recommend maintenance of the same rate of dividend of
30 % as in the previous year on the Equity Share Capital of the Company for the
financial year ended 31st March 2008 despite increase in profit, as the Company
is in the midst of a massive expansion programme and substantial capital
expenditure is yet to be incurred during the next year
MANAGEMENT AND DISCUSSION ANALYSIS
REPORT REVIEW OF OPERATIONS OF THE COMPANY
Business Review
Due to a slowing down of US Economy, steadily spiraling domestic inflation and
rising petroleum cost may have a slowdown effect in the market. The Company has
expanded its raw material and finished goods storage sheds. Further, expansion
of factory buildings is under completion to cope with the higher volume of
activities. The import of sophisticated machinery for the expansion of the
Company's Production capacity is under way and is expected to be completed by
end of December 2008. The Company is steadily striving to achieve excellence in
innovation and offer a wide range of products to the construction industry. The
Company has progressed in the implementation of Enterprise Resource Planning
Package from SAP,
Financial Performance
The Company is making steady progress during the year in its production, sales
and innovation in product engineering. The Company maintained its uptrend in
its turnover at around 14 % irrespective of slow-down of the economy, inflation
and
Internal Control Systems
The Company has effective internal control systems and processes in place for
the smooth conduct of its business. Its internal control systems are regularly
checked by both external and internal auditors, who have access to all records
and information about the Company. The Board and the management review the
findings and recommendations of the auditors and take corrective actions
wherever necessary and also maintain a system of internal controls designed to
provide reasonable assurance regarding the effectiveness and efficiency of
operations, the adequacy of safeguards for assets, the reliability of financial
controls and compliance with applicable laws and regulations.
Contingent
Liabilities:
|
Particulars |
|
Rs.
In Millions As
on 31.03.2008 |
|
Estimated amount of contracts, remaining to be executed on Capital
account and not provided for (net of advances) |
|
146.856 |
|
Letters of
Credit |
|
25.906 |
|
Bank Guarantees executed
in favour of customers against advances received / towards performance
guarantees. |
|
33.873 |
FIXED ASSETS:
- Land
- Plant and
Machinery
- Tools and
Equipments
- Computers
- Office
Equipments
- Furniture and
Fixtures
- Vehicles
WEBSITE DETAILS:
Subject was incorporated as a Private Limited Company in 1988 and
converted to a public limited company in 1992.
The company was established primarily to manufacture steel doors,
windows, and other building material products to cater to the global
construction industry.
The
manufacturing plant of Subject was set up on the outskirts of
Today, Shakti has expanded its facility to 180,000 Sq.ft of
manufacturing and warehouse space capable of producing 300,000 doors and frames
. The plant is equipped with advanced, high-tech, numerically controlled manufacturing
equipment with a state-of--the-art painting lines. Doors and frames are
produced in one of the industry's finest ISO 9001-2000 certified plants. The
company has also embarked on a major expansion agenda to deliver a range of
precision engineered products and cost-effective solutions.
Today Subject manufactures the most complete line of distinctive steel
doors and frames catering to the commercial construction market requirements.
Shakti has seven sales and marketing branches across the major
metropolitan cities in
Consequently, the brand enjoys a market reputation for high quality,
prompt delivery and a service paradigm that has become the industry benchmark.
With over 300,000 doors installed across India as well as in countries
such as Cyprus , Dominican Republic, Kenya, Saudi, Oman, Vietnam, Sri Lanka
amongst others, Shakti has been steadily augmenting its global footprint with
its product and service delivery. The installed range of doors includes
Fire-resistant doors, Scientific doors, General application doors and
Sliding-doors with a large number of options in ironmongery, sizes and
finishes.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.49.68 |
|
|
1 |
Rs.74.64 |
|
Euro |
1 |
Rs.62.58 |
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 |
YES |
|
--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 |
|