MIRA
INFORM REPORT
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Report Date : |
21.10.2008 |
IDENTIFICATION DETAILS
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Name : |
FL SMIDTH MINERALS PRIVATE LIMITED |
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Formerly Known As : |
FFE MINERALS INDIA PRIVATE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
03.01.1996 |
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Com. Reg. No.: |
18-34056 |
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CIN No.: [Company
Identification No.] |
U14299TN1996PTC034056 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers and Exporter of Cement Machineries. The Subject also
supplying feeding, sizing, crushing and screening equipments |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 5600000 |
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Status : |
Excellent |
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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 fine track. Available
information indicates high financial responsibility of the Company. Fundamentals are strong and healthy.
General financial position is satisfactory. Payments are reported as usually
correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
run. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-44-47483000 / 47485003 |
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Fax No.: |
91-44-27470301 |
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E-Mail : |
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Website : |
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Location : |
Commercial |
DIRECTORS
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Name : |
Mr. Rudolph Michael Edge |
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Designation : |
Managing Director and CEO |
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Address : |
Crystal Cove – Flat 11, 3rd floor, 59, Satyadev Avenue, MRC
Nagar, Chennai 600028, Tamilnadu, India |
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Date of Birth/Age : |
10.10.1946 |
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Date of Appointment : |
15.11.2007 |
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Name : |
Mr. George Luis Robles |
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Designation : |
Director |
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Address : |
254, |
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Date of Birth/Age : |
24.02.1950- |
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Date of Appointment : |
03.01.1996 |
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Name : |
Mr. John Francis Mertz |
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Designation : |
Director |
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Address : |
65, |
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Date of Birth/Age : |
19.09.1957 |
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Date of Appointment : |
03.01.1996 |
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Name : |
Mr. Narayanan Sankar |
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Designation : |
Director |
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Address : |
194, T. T. K, Road, Chennai 600018, |
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Date of Birth/Age : |
21.09.1961 |
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Date of Appointment : |
15.11.2007 |
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Name : |
Mr. Egil Molsted Madsen |
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Designation : |
Director |
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Address : |
Old AG Villa, Dancing Waves, 10 Copper Beach Road, Akkara ECR, Chennai
– 600119, Tamilnadu, India |
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Date of Birth/Age : |
26.12.1965 |
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Date of Appointment : |
15.11.2007 |
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Name : |
Mr. Gautam Maitra |
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Designation : |
Managing Director |
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Address : |
Flat 8 E Block 3 B, Rani Meyyammai, Towers 66/122, |
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Date of Birth/Age : |
30.06.1956 |
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Date of Appointment : |
15.11.2007 |
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Name : |
Mr. Lutz Landmesser |
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Designation : |
Director |
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Address : |
Bahnhofstrasse 48, Oberolm – 55270, |
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Date of Birth/Age : |
21.09.1961 |
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Date of Appointment : |
15.11.2007 |
KEY EXECUTIVES
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Name : |
Mr. Srivatsan Sugunan Eluppai |
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Designation : |
Secretary and Vice President [Fin] |
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Address : |
W 134, First Floor, 3rd street, Park Road, Anna Nagar,
Western Extension, Chennai 600101, Tamilnadu, India |
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Tel. No. : |
91-44-47485003 |
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Fax No. : |
91-44-27470301 |
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E-mail: |
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Date of Birth : |
31.07.1954 |
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Date of Appointment : |
25.09.1997 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2006
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Names of Shareholders |
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No. of Shares |
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Flsmidth Minerals Holdings ApS |
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999900 |
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Rudolph Michael Edge |
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100 |
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Total |
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1000000 |
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Equity Share
Break-up [As on 31.12.2006] |
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Percentage of
Holding |
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Foreign Holdings |
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99.99 |
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Directors or relatives of the Directors |
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0.01 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporter of Cement Machineries. The Subject also supplying
feeding, sizing, crushing and screening equipments |
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Products : |
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GENERAL INFORMATION
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Suppliers : |
Ř
ARF
Engineering Private Limited Ř
Balaji
Engineers Ř
Pandiyan
Ferro Casting Private Limited Ř
Prakasa
Spectro Cast Private Limited Ř
Bethall
Engineering Company Ř
CRR
Engineering Works Ř
Caretech
Engineers Ř
Hi-tech
Castings Ř
Mars
Engineering Works Ř
MEC
Engineers Ř
Moulds
and Dies Limited Ř
Musaruj
Engineering Limited Ř
RC
Das Engineering Ř
Shreeram
Polyplast Ř
Shri
Industries Ř
Sree
Pavithra Industries Ř
Sri
Shanmuga Industries Ř
Uni
Abex Alloys Private Limited Ř
Abon
Engineering Pty Limited Ř
FFE
Minerals Engineering Pty Limited Ř
FFE
Minerals Technequip Ř
FLSmidth
and Co A/S |
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Customers : |
Ř
Titan Ř
Ř
Tinto Ř
Xstrata Ř
Ispat
Metallic Ř
Konkola
Copper Mines Plc, Ř
FFE
Minerals USA Inc. Ř
FFE
Minerals Ř
FFE
Minerals Vecor Pty Limited Ř
Moller
Materials Handling GmbH Ř
MVT
Materials Handling GmbH |
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Bankers : |
Ř
The
Hongkong and Ř
ABN
Amro Bank NV Ř
ICICI
Bank Limited Ř
Corporation
Bank Ř
Standard
Chartered Bank, Ř
Canara Bank, Ř
State Bank of |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
B. Ramaratnam Deloitte Haskins and Sells Chartered Accountants |
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Address : |
5, Nandanam Extension, |
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Holding Company: |
FFE Minerals Holding ApS |
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Ultimate Holding Company: |
FL Smidth and Co A/S |
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Fellow Subsidiaries : |
Ř
FL
Smidth Private Limited Ř
FFE
Minerals Australia Pty Limited Ř
FFE
Minerals Denmark Ř
FFE
Minerals Chile S.A. Ř
MVT
Materials Handling GmbH Ř
ABON
Engineering Pty Limited Ř
Molleler
Materials Handling GmbH Ř
FFE
Minerals Vecor Pty Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 10.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
10.000 |
10.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1106.654 |
695.649 |
409.636 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1116.654 |
705.649 |
419.636 |
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LOAN FUNDS |
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1] Secured Loans |
33.911 |
33.455 |
23.464 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
33.911 |
33.455 |
23.464 |
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DEFERRED TAX LIABILITIES |
0.000 |
3.005 |
9.326 |
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TOTAL |
1150.565 |
742.109 |
452.426 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
101.880 |
71.342 |
88.063 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1103.933 |
1060.667 |
381.419 |
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DEFERREX TAX ASSETS |
6.689 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
17.031
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12.639
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4.737 |
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Sundry Debtors |
2256.360
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2065.434
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1826.075 |
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Cash & Bank Balances |
87.238
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58.827
|
45.872 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
400.516
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342.122
|
191.715 |
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Total
Current Assets |
2761.145
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2479.022
|
2068.399 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2765.265
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2808.695
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2045.712 |
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Provisions |
57.817
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60.227
|
39.743 |
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Total
Current Liabilities |
2823.082
|
2868.922
|
2085.455 |
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Net Current Assets |
[61.937]
|
[389.900]
|
[17.056] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1150.565 |
742.109 |
452.426 |
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Reserve and
Surplus
|
General Reserve |
293.083 |
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Balance as per
last balance sheet |
8.000 |
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Add : Transfer
from P & L A/c |
304.083 |
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Foreign Currency
Translation Reserve |
[2.183] |
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Foreign Project
Reserve Account |
9.883 |
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Profit and Loss
A/c |
794.871 |
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|
1106.654 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
|
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Sales Turnover |
|
3894.146 |
3168.520 |
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Other Income |
|
94.223 |
26.317 |
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Total Income |
|
3988.369 |
3194.837 |
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Profit/(Loss) Before Tax |
|
443.095 |
321.746 |
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Provision for Taxation |
|
145.679 |
110.887 |
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Profit/(Loss) After Tax |
|
297.416 |
210.859 |
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Earnings in Foreign Currency : |
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- Export of Goods on FOB |
|
911.595 |
106.834 |
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- Professional & Consultation Fee |
|
76.348 |
94.872 |
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- Sales Commission |
|
6.853 |
0.326 |
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Total Earnings |
|
994.796 |
202.032 |
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Imports : |
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- Components & Spare Parts |
|
321.450 |
193.804 |
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- Capital Goods |
|
10.003 |
- |
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Total Imports |
|
331.453 |
193.804 |
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Expenditures : |
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Financial Charges |
|
4.113 |
4.716 |
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Depreciation & Amortization |
|
19.233 |
13.456 |
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Other Expenditure |
|
3521.928 |
2854.919 |
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Total Expenditure |
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3545.274 |
2873.091 |
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KEY RATIOS
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
NA
|
7.45
|
6.59 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA
|
11.37
|
10.15 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
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17.37
|
14.92 |
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Return on Investment (ROI) (PBT/Networth) |
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NA
|
0.62
|
0.76 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.56
|
4.11
|
5.02 |
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Current Ratio (Current Asset/Current Liability) |
|
0.98
|
0.86
|
0.99 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
The Subject Company was originally incorporated on 03.01.1996 as Fuller
‘KCP Mineral Processing Limited’ and subsequently changed their name to ‘FFE
Minerals India Private Limited’. The
Subject has further changed to its present name i.e. ‘Flsmidth Minerals Private
Limited’ with effect from 04.07.2007 as per registry vide SRN No. A17432071
dated 04.07.2007
FORM 8
Bankers Charges
Report as per Registry
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Name of the company |
FFE Minerals
India Private Limited |
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Presented By |
E. S. Srivastan, Secretary
and Vice President [Finance] |
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1) Date and description of instrument creating the change |
08.10.2002 Hypothecation agreement for stocks and book debts in favour
of Standard Chartered Bank |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 65.000
Millions |
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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 |
Hypothecation of
raw material, finished goods, goods in process and other stocks, present and
future book debts, outstanding monies receivables etc. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
The charge operates
as a continuing security for the credit facilities extended to the company
terms and conditions of which are stated in the agreement dated 08.10.2002 |
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5) Name and Address and description of the person entitled to the
charge. |
Standard Chartered
Bank 19, Rajajj Salai,
Chennai 600001 |
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6) Date and brief description
of instrument modifying the charge |
Supplementary
hypothecation agreement of stocks and book dated 15.04.2005 favouring
Standard Chartered Bank |
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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. |
Charge increased
from Rs. 65 Millions to Rs. 250 Millions |
FIXED ASSETS
- Building
- Plant and Machinery
- Computers
- Air conditioners and refrigerators
- Furniture and fixture
- Office equipments
- Vehicles
- Electrical fittings
- Electrical installations
- Temporary Sheds at site
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. 40.12 |
|
UK Pound |
1 |
Rs. 79.95 |
|
Euro |
1 |
Rs. 62.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
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 |
|