MIRA
INFORM REPORT
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Report Date : |
20.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHEKAR ENGINEERING WORKS PRIVATE LIMITED |
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Registered Office : |
13, Opposite Gana Bharathi Entrance, Mysore Road, Bangalore – 560039,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.03.2005 |
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Com. Reg. No.: |
08-35770 |
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CIN No.: [Company
Identification No.] |
U27101KA2005PTC035770 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS19137G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Rough Iron Castings.
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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 450000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company union has improved its performance.
Trade relations are fair. Financial position is satisfactory. Payments are
reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
13, Opposite Gana Bharathi Entrance, Mysore Road, Bangalore – 560039,
Karnataka, India |
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Tel. No.: |
91-80-28600515 / 517 / 518 |
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Mobile No.: |
91-9845015044 |
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Fax No.: |
91-80-28600176 / 179 |
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E-Mail : |
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Website : |
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Area : |
1.5 acres |
DIRECTORS
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Name : |
Mrs. Nalini B. G. |
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Designation : |
Director |
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Address: |
Maruthi Nilaya, No. 2924 E/31, East of Chord Road, Vijay Nagar, II
stage Bangalore-560040, Karnataka, India |
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Dated of Birth: |
30.11.1951 |
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Date of Appointment: |
07.03.2005 |
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Name : |
Mrs. S. Yashodha |
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Designation : |
Managing Director |
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Address: |
Maruthi Nilaya, No. 2924 E/31, East of Chord Road, Vijay Nagar, II stage
Bangalore-560040, Karnataka, India |
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Date of Birth: |
05.08.1976 |
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Date of Appointment: |
07.03.2005 |
KEY EXECUTIVES
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Name : |
Mr. S. Madhusudhan |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Muniratnam |
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Designation : |
Works Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
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Names of Shareholders |
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No. of Shares |
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Srinivasan V T |
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10 |
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Srinivasan Vasunda |
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10 |
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Dilip Kumar |
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10 |
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Pradeep Kumar |
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10 |
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S Yashoda |
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2499975 |
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BG Nalini |
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2499975 |
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S Madhusudan |
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10 |
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Nextgen Communications Limited |
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210000 |
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Total |
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5210000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2006
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Category |
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Percentage |
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Bodies Corporate( not mentioned above) |
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4.00 |
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Directors or relatives of directors |
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96.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Rough Iron Castings.
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Terms : |
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Selling : |
Cash and Credit [30-90 days] |
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Purchasing : |
Cash and Credit [30-90 days] |
GENERAL
INFORMATION
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Customers : |
Manufacturer
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No. of Employees : |
60 |
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Bankers : |
Vijaya Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P N Raghavendra Rao and Company Chartered Accountant |
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Address : |
No. 4805, 8th Floor, High Point IV, No. 45 Place Road,
Bangalore-560001, Karnataka, India |
CAPITAL STRUCTURE
As on 30.09.2006
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5500000 |
Equity Shares |
Rs. 10/- each |
Rs. 55.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5210000 |
Equity Shares |
Rs. 10/- each |
Rs. 52.100 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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52.100 |
52.100 |
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2] Share Application Money |
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0.700 |
0.100 |
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3] Reserves & Surplus |
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37.610 |
21.466 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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90.410 |
73.666 |
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LOAN FUNDS |
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1] Secured Loans |
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22.628 |
25.014 |
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2] Unsecured Loans |
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0.166 |
0.460 |
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TOTAL BORROWING |
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22.794 |
25.474 |
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DEFERRED TAX LIABILITIES |
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10.000 |
4.912 |
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TOTAL |
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123.204 |
104.052 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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69.355 |
68.978 |
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Capital work-in-progress |
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0.000 |
1.062 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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14.600
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8.750 |
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Sundry Debtors |
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39.183
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33.078 |
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Cash & Bank Balances |
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17.441
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8.830 |
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Other Current Assets |
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0.000
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0.000 |
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Loans & Advances |
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17.099
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8.859 |
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Total
Current Assets |
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88.323
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59.517 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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32.369
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23.766 |
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Provisions |
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2.287
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2.012 |
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Total
Current Liabilities |
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34.656
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25.778 |
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Net Current Assets |
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53.667
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33.737 |
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MISCELLANEOUS EXPENSES |
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0.182 |
0.273 |
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TOTAL |
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123.204 |
104.051 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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187.075 |
164.199 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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187.075 |
164.199 |
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Profit/(Loss) Before Tax |
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24.307 |
19.241 |
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Provision for Taxation |
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8.163 |
6.730 |
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Profit/(Loss) After Tax |
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16.144 |
12.511 |
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Expenditures : |
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Financial Charges |
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2.251 |
0.113 |
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Depreciation & Amortization |
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3.31 |
1.226 |
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Other Expenditure |
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157.207 |
143.619 |
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Total Expenditure |
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162.768 |
144.958 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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8.62 |
7.62 |
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Net Profit Margin (PBT/Sales) |
(%) |
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12.99 |
11.72 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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15.42 |
14.97 |
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Return on Investment (ROI) (PBT/Networth) |
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027 |
0.26 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.64 |
0.69 |
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Current Ratio (Current Asset/Current Liability) |
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2.55 |
2.31 |
LOCAL AGENCY
FURTHER INFORMATION
AS PER WEBSITE
Profile
Subject foundry was established in 1969 and they are in the field of manufacturing
quality Grey Iron Castings in the grades of GF 300 and also grades
incorporating Chromium, Molybdenum and Vanadium additions. Subject
manufacturing capacity is about 300 tonnes/month. They mainly supply castings
to machine tools, die tools and other engineering industries. They are also
specialists in the manufacture of one off single piece castings from
'Polystyrene Patterns' especially for die tools, machine tools, etc. They can
cast castings up to 8 tonnes single piece. One of their main strengths is
delivery of quality castings as per mutually agreed schedules, provided the
customer also reciprocates by timely honouring of its commitments.
They are classified as a 'Medium Scale Industry' and a private limited company.
The day-to-day management is supervised by the Managing Director and Chief
Executive and the foundry technical operations by the Works Manager. They have
around 78 full time employees.
Their main melting unit is a 42" cupola with a divided and oxygen enriched
blast. All incoming ferrous raw materials like pig iron, ferrous scrap, etc.
are analysed for its composition. Based on this analysis, they decide on a
particular charge composition. Input to the cupola is fully weighed which
enables them to achieve the required composition in the liquid metal.
The moulding process is hand moulding. They use either sodium silicate CO2
gas process or No Bake process for moulds depending on customer preference.
They mainly use No Bake process for core making.
They have a dedicated group of staff and workmen to achieve quality output.
They have a small chemical laboratory for checking the chemical analysis. They
use outside testing laboratory facilities for checking the mechanical
properties like tensile strength, micro structure, etc. as required. Hardness
is checked on the casting using a Pouldi hardness tester.
Mostly, customers supply the patterns to them and the onus
of the dimensional accuracy of the equipment lies with them. If required, they
can also arrange for the pattern equipments from their sub contractors.
They also have a heavy machine shop to undertake both proof
machining and full machining of components. They have obtained ISO quality
system certification.
Management
Company's Vision
Supply quality products, on-time delivery, attend customer complaints promptly, continual improvement of quality of management system, to comply with the requirement of quality management system as per ISO-9001:2000.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.68 |
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UK Pound |
1 |
Rs.84.37 |
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Euro |
1 |
Rs.65.70 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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