MIRA
INFORM REPORT
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Report Date : |
24.11.2008 |
IDENTIFICATION DETAILS
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Name : |
SHALIMAR WIRE INDUSTRIES LIMITED |
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Registered Office : |
25, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
30.09.1996 |
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Com. Reg. No.: |
081521 |
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CIN No.: [Company
Identification No.] |
L74140WB1996PLC081521 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS.9014E |
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PAN No.: [Permanent
Account No.] |
AAICS2281G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business : |
Manufacturer of Wide range of Non-Ferrous Wires |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
The company is almost a Sick Unit and reported for help to Board of
Industrial Financial and Reconstruction (BIFR). The Company’s payments are
slow and at times delayed. Financial position of the company can be regarded
as poor. The company can be considered for any business dealings on safe and
secured trade terms and conditions, only. |
LOCATIONS
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Registered Office/ Factory : |
25, |
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E-Mail : |
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Website : |
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Corporate Office : |
77, |
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Tel. No.: |
91-33-26638186/ 245/ 259/ 26637305 |
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Fax No.: |
91-33-26638186/ 245/ 259/ 26637305 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. M Chittaranjan Kumar |
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Designation : |
Nominee Director representing IDBI |
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Name : |
Mr. Sunil Khaitan |
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Designation : |
Managing Director |
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Name : |
Mr. P K Sarkar |
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Designation : |
Nominee Director representing SBI |
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Name : |
Mr. L R Vaidyantah |
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Designation : |
Director |
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Name : |
Mr. Dipak Dasgupta |
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Designation : |
Director |
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Name : |
Mr. Dipak Rudra |
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Designation : |
Director |
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Name : |
Mr. Probir Roy |
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Designation : |
Director |
KEY EXECUTIVES
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EXECUTIVES: |
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Name : |
Mr. R P Dhanuka |
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Designation : |
Senior President |
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Name : |
Mr. D Khaitan |
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Designation : |
President – Paper Machine Wire Unit ( |
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Name : |
Mr. S J Sengupta |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. S K Kejriwal |
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Designation : |
General Manager (Corporate Affairs) and Company Secretary |
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Solicitors : |
Khaitan and Company Jhunjhunwala and Company L P Agarwalla and Company |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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PROMOTER'S
HOLDING |
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Indian Promoters |
2825223 |
42.45 |
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NON PROMOTER'S
HOLDING |
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Institutional Investors |
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Mutual Funds and UTI |
627 |
0.01 |
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Banks Fin. Inst. and Insurance |
1186237 |
17.82 |
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Other Investors |
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Private Corporate Bodies |
773873 |
11.63 |
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NRI's/OCB's/Foreign Others |
1097 |
0.02 |
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General Public |
1868066 |
28.07 |
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GRAND TOTAL |
6655123 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Wide range of Non-Ferrous Wires |
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Products : |
PAPER MILLS
PRODUCTS: Synthetic Wire
Cloth * Single Layer Forming Fabric Metallic Wire Cloth
·
Pulp Mill Wire Cloth ·
Endless Diagonal Seam
Covers ·
Dryer Screen ·
Dandy Rolls ·
Accessories ·
Auto Guides ·
Cleaning System ·
Watermarks ·
Water Filters Non Ferrous
Wires: ·
Coated EDM Wires ·
Plain EDM Wires ·
Copper Alloy Wires ·
Phosphor Bronze Wires ·
Zipper Flat Wires ·
Tooth Brush Anchor
Wires
·
Nickel Silver Wires ·
Brass Wires |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Wire Cloth/ Fabric for Pulp, Paper and Board Industry |
Sq. mtr |
174000 |
207000 |
161.574 |
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Cooper and Copper Alloy Wires including Monel Wire |
M.T |
1520 |
900 |
266 |
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Stainless Steel Wires |
M.T |
250 |
125 |
-- |
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Dandy Roll and Dandy Roll Bracket |
No. |
100 |
420 |
36 |
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Copper and Copper Alloys |
M.T |
3950 |
4400 |
-- |
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Nickle Silver |
M.T |
450 |
-- |
-- |
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Capsule Making Machine |
No. |
4 |
4 |
-- |
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Capsule Printing Machine |
No. |
10 |
-- |
-- |
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Wire Drawing Machines |
No. |
2 |
6 |
-- |
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Weaving Looms for Industrial Fabrics |
No. |
4 |
-- |
-- |
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Patenting Machine |
No. |
-- |
2 |
-- |
GENERAL INFORMATION
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No. of Employees : |
About 600 |
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Bankers : |
·
Allahabad Bank ·
Canara Bank ·
Bank of ·
Indian Overseas Bank ·
State Bank of |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S S Kothari and Company Chartered Accountant |
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Name : |
G P Agarwal and Company Chartered Accountnat |
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Associates/Subsidiaries : |
·
SWIL International Pte Limited ·
Sunil Healthcare Limited ·
Shalimar Industries Limited ·
ASIL Industries Limited ·
Satya Sons Services Limited |
CAPITAL STRUCTURE
As on 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
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5000000 |
Preference shares |
Rs. 100/- each |
Rs. 500.000 Millions |
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Total |
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Rs. 600.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6655123 |
Equity Shares |
Rs. 10/-
each |
Rs. 66.551
Millions |
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2934349 |
Preference Shares |
Rs. 100/-
each |
Rs. 293.434
Millions |
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Total |
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Rs. 359.986 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 |
359.986 |
394.120 |
66.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
246.031 |
246.031 |
0.000 |
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4] (Accumulated Losses) |
[3163.920] |
[2862.876] |
[2361.400] |
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NETWORTH |
[2557.903] |
[2222.725] |
[2294.800] |
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LOAN FUNDS |
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1] Secured Loans |
3019.068 |
2902.848 |
2605.300 |
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2] Unsecured Loans |
71.577 |
0.000 |
68.500 |
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TOTAL BORROWING |
3090.645 |
2902.848 |
2673.800 |
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DEFERRED TAX LIABILITIES |
9.571 |
9.571 |
0.000 |
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TOTAL |
542.313 |
689.694 |
379.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
616.926 |
713.598 |
651.600 |
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Capital work-in-progress |
1.832 |
0.569 |
120.400 |
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INVESTMENT |
4.999 |
2.789 |
2.800 |
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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 |
239.267
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215.808 |
262.300 |
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Sundry Debtors |
212.612
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185.735 |
157.900 |
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Cash & Bank Balances |
39.832
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79.719 |
60.300 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
111.388
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127.342 |
237.900 |
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Total
Current Assets |
603.099
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608.604 |
718.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
682.659
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634.172 |
1049.400 |
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Provisions |
1.921
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1.801 |
65.000 |
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Total
Current Liabilities |
684.580
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635.973 |
1115.000 |
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Net Current Assets |
[81.481]
|
[27.369] |
[396.000] |
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MISCELLANEOUS EXPENSES |
0.037 |
0.107 |
0.200 |
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TOTAL |
542.313 |
689.694 |
379.000 |
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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 |
680.683 |
670.654 |
623.300 |
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Other Income |
14.758 |
21.838 |
338.000 |
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Total Income |
695.441 |
692.492 |
961.300 |
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Profit/(Loss) Before Tax |
[349.369] |
[298.817] |
2.100 |
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Provision for Taxation |
[48.325] |
[43.332] |
2.400 |
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Profit/(Loss) After Tax |
[301.044] |
[255.485] |
[0.300] |
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Earnings in Foreign Currency : |
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Export Earnings |
102.621 |
117.170 |
NA |
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Imports : |
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Raw Materials |
136.167 |
148.023 |
NA |
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Stores & Spares |
8.954 |
8.642 |
NA |
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Capital Goods |
0.797 |
7.390 |
NA |
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Total Imports |
145.918 |
164.055 |
NA |
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Expenditures : |
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Raw Material Consumed |
205.670 |
220.561 |
155.800 |
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Excise Duty |
0.000 |
0.000 |
54.200 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
39.500 |
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Employee Cost |
0.000 |
0.000 |
108.500 |
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Selling and Administration Expenses |
0.000 |
0.000 |
72.100 |
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Miscellaneous Expenses |
0.000 |
0.000 |
53.500 |
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Stores and Spares Consumed |
29.423 |
26.687 |
0.000 |
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Personal Expenses |
110.728 |
104.260 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[20.287] |
[9.220] |
[6.900] |
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Interest |
464.413 |
412.779 |
367.800 |
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Power & Fuel |
18.547 |
17.523 |
16.900 |
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Depreciation & Amortization |
99.125 |
93.187 |
84.000 |
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Other Expenditure |
137.191 |
125.532 |
0.000 |
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Total Expenditure |
1044.810 |
991.309 |
959.200 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
|
Sales Turnover |
|
162.700 |
192.400 |
|
Other Income |
|
2.300 |
0.100 |
|
Total Income |
|
165.000 |
192.500 |
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Total Expenditure |
|
126.200 |
131.300 |
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Operating Profit |
|
38.800 |
61.200 |
|
Interest |
|
129.200 |
118.100 |
|
Gross Profit |
|
[90.400] |
[56.900] |
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Depreciation |
|
25.200 |
25.200 |
|
Tax |
|
0.500 |
0.600 |
|
Reported PAT |
|
[116.100] |
[82.700] |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.32 |
0.31 |
0.35 |
|
TURNOVER RATIOS |
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Fixed Assets |
0.41 |
0.42 |
0.38 |
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Inventory |
2.58 |
2.73 |
2.42 |
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Debtors |
3.77 |
4.31 |
3.91 |
|
Interest Cover Ratio |
0.25 |
0.28 |
0.17 |
|
Operating Profit Margin(%) |
28.62 |
27.98 |
23.76 |
|
Profit Before Interest And Tax Margin(%) |
15.41 |
15.38 |
10.28 |
|
Cash Profit Margin(%) |
[33.55] |
[28.02] |
[35.63] |
|
Adjusted Net Profit Margin(%) |
[46.75] |
[40.62] |
[49.11] |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
OPERATION REVIEW
During the year, net revenue of the company amounted to s. 695.442
Millions as compared to Rs. 692.492 Millions in the previous year. Te operating
surplus (profit before interest and depreciation) of the Company was Rs.
214.168 Millions as compared to Rs. 207.149m Millions in the previous year. The
net loss (before considering exceptional item) during the year is Rs. 349.369
Millions as compared to Rs. 298.817 Millions in the previous year. The company
has accounted for relief granted by the Financial Institutions of Rs. 50.514
Millions in the current year as compared to Rs. 44.966 Millions in the previous
year. The net loss (after aforesaid adjustment) during the year amounted to Rs.
301.045 Millions as compared to Rs. 255.485 Millions in previous year.
RESTRUCTURING OF
DEBTS
The company has already finalized one time settlement with majority of
secured lenders and the negotiations with the remaining secured lenders are at
advance stage for one time settlement of their dues. The company is hopeful
that performance of the company will improve in coming years once total debts
of the company are restructured.
EXPORT
The Company’s export turnover amounted to Rs. 102.621 Millions for the
year as compared to Rs. 117.170 Millions in previous year.
REFERENCE TO BIFR
In terms of section 15 of Sick Industrial Companies Act, 1985 (SICA),
the company had submitted its application before the Board for Industrial and
Financial Reconstruction (BIFR) which was registered on 24th February, 2004.
The BIFR have declared the Company as Sick company in its hearing held on 30th
January, 2006 and appointed State Bank of
Management
Discussion and Analysis
Paper Machine
Clothing (PMC)
PMC Industries are solely dependent on the Paper making activities. The
per-capita paper consumption is only 7.0 kgs as against world’s average of 56.0
kgs. Indicating great potentiality for growth at home. Besides, the real growth
in Paper making activity is taking place in
EDM Wires:
Use on EDM machines in Tooll Room Industry is gaining popularity all
over the world. The situation has become challenging to the EDM wire makers with
the invention of developed DEM machines and it has increased demand of
specialty EDM wire happily, which are the major product of Uttarpara Plant.
Similar situation prevails all the over the world and with the reputation in
export market with the Patented products especially to th developed countries,
they see a bright future for this product. A new product DYNA “XT” is specially
being developed to fetch more business from the export market as well as home
market.
Outlook:
The outlook of Company appears bright. The company anticipates modest
growth in its operations in coming year and have taken steps to improve further
in following areas:-
·
Maintain high Quality Standards Consistently
·
Create wide based product range to cater to export
market
·
Modernize after-sale services
·
Improve efficiency at all states form procurement
to disposal
·
Upgrading the old machinery
·
Develop new designs of fabric
Fixed Assets:
·
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipments
·
Vehicles
·
Computers
·
Patents
AS PER WEBSITE
Company Profile
·
Technical know-how based on technology absorbed in
various collaborations with reputed manufacturers and the hands-on experience
of the last four decades. 
·
Products backed by a trained team of Technical
Service Personnel having wide spread practical knowledge of papermills.
·
In house R&D wing developing designs suitable
for ever changing trends of Paper Industry.
·
Shalimar Wires is an ISO 9001-2000 certified
Company.
·
Shalimar Wires Industries Limited is recognized as
an "Export House" and has been awarded for "Export
Excellence" by the Government of India.
Paper Mills
Production Division
Shalimar Wires Industries Limited started with a mission in 1962 to
update technology in the Paper Industry and progressively reduce dependence on
imports. The first step in the realisation of that mission was in the
manufacture of Fourdrinier Wire Cloth, which was a pioneering success in the
area of import substitution, and the development of indigenous capability.
The company also set up facilities at its unit for the manufacture /
reconditioning of Dandy Rolls (an import substitute item used in paper machines
for improving the quality of paper and for water marking). In the early 70's it
was found that the installed capacity of wire cloth was not adequate to cater
to the requirements of the Paper Industry of India and some exports to South
East Asian countries. For this purpose additional looms were installed in the
years 1971-73.
Meanwhile it was felt that this unit should produce some other products
for paper industry that can be sold with value offering. With this idea Dandy Roll
production started in the year 1972. From the early 1970 the paper industry
started using synthetic fabrics in place of metal wire cloth. The division
sensed the change and started working for the synthetic fabrics in-house.
In the initial stage certain fabrics were produced and tried in paper mills
with encouraging results in the period 1975-78. By acquiring the required
technical know-how for the production of Synthetic forming fabrics in
Non Ferrous Wires
Division
The Company is a pioneer and leader in EDM Industry in
EDM Wire Manufacturing process includes Special Casting, Annealing,Cleaning
& Spooling. Independent Testing and R&D facilities dedicated for EDM
Wires ensure superior product quality. The R&D Engineers are continuously upgrading
existing product range as well as developing new products for various new
application areas.
Many Firsts
·
They are the first in
·
They are the First in
·
They are the First in
·
They are the First in
·
They are the First in
Products are backed by dedicated team of Technical Service Personnel
with practical knowledge of Paper Making. In house R&D wing is continuously
developing designs suitable for ever changing trends of Paper Industry.
The Services:
The expertise lies not just in producing quality products but also in
extending quick and comprehensive technical service to the customers. A live wire
team of qualified and experienced technologists, trained in production
technology to attend to any problem in the field, represents the company at
every corner of the country.
Apart from immediate attention to calls from customers the field engineers also
help the paper makers in choosing the correct design of fabric, the system of
dandy rolls etc.
These engineers continuously monitor the performance of the product and pass on
the relevant data to the product development cell. Full-fledged research and
development wing and a team of well-trained engineers to suggest appropriate
quality of dandy rolls, brackets and accessories back the products.
The Capabilities:
The Factory spreads over an area of 50,000 square meters, is located in
District Hoogly -
The company has a long association with
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 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.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.67.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
22 |
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 |
|