MIRA
INFORM REPORT
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Report Date : |
25.10.2008 |
IDENTIFICATION DETAILS
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Name : |
LOHIA STARLINGER LIMITED |
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Registered Office : |
D-3/ A, Panki Industrial Estate, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.10.1981 |
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Com. Reg. No.: |
20-005446 |
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CIN No.: [Company
Identification No.] |
U29263UP1981PLC005446 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPL00020G / KNPL01083F / KNPL00108D |
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PAN No.: [Permanent
Account No.] |
AAACL2470J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of spinning machines for plastic woven fabric and textile
industry. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 6000000 |
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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.
Directors are reported as experienced and respectable businessmen. Trade
relations are fair. Business is active. Payments are reported as usually
correct and as per commitments. The company can be considered normal for
business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Head Office / Factory 1 : |
D – 3/A Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh,
India |
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Tel. No.: |
91 – 512 – 282001-9 / 2211221 (7 lines ) / 2272001 to 2272009 / 3045100
/ 2691221 |
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Fax No.: |
91 – 512 – 282012 / 282205 / 2211249 /
2822149/ 3045599 / 2691249 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Location : |
Industrial Area |
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Factory 2 : |
Dercitex Components Manufacturing Company, 446-48/49, Mallwan,
Chaubeypur, District Kanpur Dehat, Uttar Pradesh, India |
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Factory 3 : |
Lohia Packing Machinery, 443-445/A, Mallwan, Chaubeypur, District
Kanpur-209 203, Dehat, Uttar Pradesh,
India |
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Factory 4: |
Lohia Packing Machinery, 910/4/3/1, Dok Mardi Amli, Silvassa – 396
230, Union Territory |
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Factory 5 : |
Lohia Machinery Manufacturers, 499-500/A, Amilika, Chaubeypur, District
Kanpur Dehat, Uttar Pradesh, India |
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Factory 6 : |
Lohia Industrial Complex Chaubepur, Kanpur – 209 203, Uttar Pradesh,
India |
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Tel. No.: |
91-5112-282001 |
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Fax No.: |
91-5112-282205 |
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Factory 7 : |
Precitex Components Manufacturing Company, Lohia Industrial Complex,
Chaubepur, Kanpur – 209 203, Uttar Pradesh, India |
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Branch : |
Located at : ˜
60, Trivenipark Bungalow, Auda Staff Soceity,
Opp. Surdhara Bungalow, Drive-In, Ahmedabad – 380 052, Gujarat Tel No. 91-79-27450943 Fax No.
91-79-27450963 ˜
544, 9th Cross, 7th Main,
Sadhasivnagar, Bangalore – 560 080, Karnataka Tel No. 91-80-3340429 Fax No. 91-80-3344795 ˜
F-38, Maker Tower, Cuffee Parade, Mumbai – 400
005 Tel No. 91-22-22184449 Fax No. 91-22-22187578 ˜
B-2/15, Safdarjung Enclave, New Delhi – 110 029 Tel No. 91-11-26163281 Fax No. 91-11-26195476 |
DIRECTORS
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Name : |
Mr. Raj Kumar Lohia |
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Designation : |
Chairman and Managing Director |
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Address : |
113/91, Swaroop Nagar, Kanpur – 208 002,
Uttar Pradesh, India |
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Date of Birth/Age : |
21.08.1954 / 53 years |
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Qualification : |
B.A. (Economics) |
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Date of Appointment : |
05.10.1993
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Experience : |
32 years
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Other Directorships : |
Lohia Packaging Machines Limited Lohia Machinery Manufacturers Limited |
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Remuneration : |
Rs. 9.941
millions |
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Particulars of
last Employment : |
Lohia Machinery
Manufacturers Limited |
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Name : |
Mr. Vinay Sah |
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Designation : |
Joint Managing Director cum Whole Time Director |
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Address : |
Flat No. 3, Classic Apartments, 113/4,
Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
23.05.1955 |
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Date of Appointment : |
01.011997 |
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Name : |
Mr. Anurag Kumar Lohia |
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Designation : |
Whole Time Director |
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Address : |
Saket, 3A/ 88, Azad Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
18.085.1969 |
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Date of Appointment : |
27.07.2002 |
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Name : |
Mr. Rajendra Kumar Newatia |
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Designation : |
Director |
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Address : |
7/96, Tilak Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
01.01.1945 |
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Date of Appointment : |
01.01.1984 |
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Name : |
Mr. Gopal Chandra Lohia |
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Designation : |
Director |
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Address : |
7/153-B, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Date of Birth/Age : |
05.07.1937 |
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Date of Appointment : |
04.04.1983 |
KEY EXECUTIVES
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Name : |
Mr. Arvind Kumar Bhargava |
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Designation : |
Company Secretary |
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Address : |
107 Bima Vihar, Lakhanpur, Kanpur – 208 024, Uttar Pradesh, India |
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Date of Birth/Age : |
23.03.1963 |
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Date of Appointment : |
16.05.1995 |
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Tel. No. : |
91-512-2582698 |
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Email : |
SHAREHOLDING PATTERN
Equity Share Breakup (Percentage of Total Equity):-
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Category (As on 31.03.2007) |
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Percentage of
Holding |
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Foreign Holdings (foreign institutional investors, foreign companies,
foreign financial institutions, non-resident Indian or overseas corporate
bodies or others) |
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36.65 |
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Bodies corporate (not mentioned above) |
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43.19 |
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Directors or relatives of directors |
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17.35 |
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Other top fifty (50) shareholders (other than listed above) |
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0.50 |
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Others |
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2.31 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of spinning machines for plastic woven fabric and textile
industry. |
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Products : |
Generic Names of
the Principal Products of the Company are : Ř
Machinery for manufacture of woven plastic Fabric Ř
Machinery for processing of man made yarns Ř
Machinery parts / components Ř
Other spares and accessories The product
range includes the following : Ř
Circular weaving machine Ř
Tape production equipment two-for one twister Ř
Draw texturising machine
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Notes : |
Commercial Production yet to be started |
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Terms : |
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Selling : |
It sells against Cash, L/C or Credit terms |
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Purchasing : |
The company purchases its requirements against Cash, Credit or L/C terms |
GENERAL INFORMATION
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Customers : |
Its’ major customers includes manufacturers, wholesalers and retailers.
· Anod Plasma Spray Limited · A D Engineering Works · Anand Engineering Corporation · A B Metal Casters Private Limited · Kashi Industries · Pratap Engineering And Fabricators · Rajshree Processors · Reliance Printers · U S Engineers · Yotech Engineering Private Limited · U S Engineers · R S Enterprises · Shagun Foundry Private Limited · Tech-know Engineering Works · Ess Aar Universal Private Limited · Bee Kay Precision · Laxmi Industrial Corporation |
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No. of Employees : |
Around 1000 |
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Bankers : |
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State Bank of India, Overseas Branch, 15/54 B
Virendra Smriti Complex, Civil Lines, Kanpur – 208
001, Uttar Pradesh, India Ř
State Bank of India, Co-operative Industrial
Estate Branch, Kanpur, Uttar Pradesh, India Ř
Canara Bank, Kanpur, Uttar Pradesh Ř
HDFC Bank Limited |
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Facilities : |
The company enjoys mortgage facilities from State Bank of India dated
30.09.2006.
Notes: Working Capital
Loans :- Secured by hypothecation of whole of the current assets namely, stock
in trade, consumables, stores and spares, book debts, and all other movables,
both present and future. Further secured by a charge on specified fixed
assets. Working Capital facilities are also guaranteed by Managing Director
and one Director. State Bank of
India Fund Based Cash credit Rs. 137.500 millions Non Fund Based Letter of credit – Rs.
30.000 millions Bank guarantee – Rs.
27.500 millions Canara Bank Fund Based Cash credit - Rs. 87.500 millions Non Fund Based Letter of credit – Rs.
20.000 millions Bank guarantee - Rs.
17.500 millions ING Vysya Bank Fund Based Cash Credit – Rs. 25.000 millions Non Fund Based Bank guarantee – Rs.
5.000 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anil Pariek and Garg Chartered Accountants |
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Address : |
33 Anand Bazar, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India |
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Tel. No.: |
91-512-2214829 |
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Associates : |
· Threads India Limited · Lohia Precision Works Limited · Lohia Machinery Manufactures Limited · Lohia Packaging Machines Limited (U17115UP1987PLC009240) · Precitex Components Manufacturing Company · LML Limited · Hargovind Bajaj Research and Development Centre · Injecto Plast Private Limited · Lohia Sales and Services Limited (U24139UP1985PLC006983) · Precitex Components Manufacturing Company · lohia Engineering and Design Services Private Limited (U72200UP2000PTC025199) · Lohia Filament Machines Limited (U29261UP2002PLC026468) · Lohia Europe Gmbh, Germany · Shruti Finsec Private Limited |
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Subsidiaries : |
· Lohia Infotech Private Limited · Lohia Sales and Services Limited · Lohia Packaging Machines Limited |
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Parent Company : |
Ř
Lohia Group |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity shares |
Rs. 10/- each |
Rs. 120.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5075000 |
Equity Shares |
Rs.10/- each |
Rs. 50.750 millions |
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Less
: |
Call Unpaid |
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Rs. 0.036 million |
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Total
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Rs.
50.714 millions |
Notes:
Of the above shares:
· 4250000 shares were allotted as fully paid –up bonus shares by capitalization of General Reserve
· 400000 shares were allotted as fully paid – up shares, consequent to the merger of Lohia Machinery Manufacturers limited to the shareholders of Lohia Machinery Manufacturers Limited.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
50.714 |
50.714 |
50.714 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1020.913 |
733.648 |
505.827 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1071.627 |
784.362 |
556.541 |
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LOAN FUNDS |
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1] Secured Loans |
192.804 |
169.959 |
110.639 |
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2] Unsecured Loans |
1.607 |
4.368 |
5.864 |
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TOTAL BORROWING |
194.411 |
174.327 |
116.503 |
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DEFERRED TAX LIABILITIES |
41.294 |
29.342 |
35.082 |
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TOTAL |
1307.332 |
988.031 |
708.126 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
558.215 |
386.353 |
294.747 |
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Capital work-in-progress |
211.338 |
35.430 |
10.198 |
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INVESTMENT |
87.642 |
77.555 |
92.100 |
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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 |
603.365
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535.964 |
393.540 |
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Sundry Debtors |
114.200
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118.919 |
96.292 |
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Cash & Bank Balances |
21.190
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61.146 |
16.782 |
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Other Current Assets |
38.355
|
20.001 |
13.327 |
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Loans & Advances |
184.645
|
101.212 |
123.975 |
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Total
Current Assets |
961.755
|
837.242 |
643.916 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
488.785
|
323.210 |
313.123 |
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Provisions |
22.833
|
25.339 |
19.712 |
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Total
Current Liabilities |
511.618
|
348.549 |
332.835 |
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Net Current Assets |
450.137
|
488.693 |
311.081 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1307.332 |
988.031 |
708.126 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2707.747 |
2349.376 |
1922.252 |
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Other Income |
8.308 |
3.745 |
0.000 |
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Total Income |
2716.055 |
2353.121 |
1922.252 |
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Profit/(Loss) Before Tax |
444.532 |
369.288 |
185.291 |
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Provision for Taxation |
157.266 |
141.467 |
74.013 |
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Profit/(Loss) After Tax |
287.266 |
227.821 |
111.278 |
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Import Value |
511.400 |
377.200 |
NA |
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Export Value |
1002.901 |
1092.900 |
NA |
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Expenditures : |
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Raw Material Consumed |
1505.473 |
1392.926 |
998.413 |
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Consumption of stores and spares parts |
70.524 |
43.066 |
37.504 |
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Increase/(Decrease) in Finished Goods |
(26.499) |
(97.441) |
29.181 |
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Salaries, Wages, Bonus, etc. |
184.812 |
154.461 |
137.916 |
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Managerial Remuneration |
13.732 |
10.060 |
7.189 |
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Payment to Auditors |
0.829 |
0.474 |
0.554 |
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Interest |
14.229 |
5.333 |
5.981 |
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Insurance Expenses |
4.638 |
63.953 |
103.926 |
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Power & Fuel |
53.731 |
46.875 |
34.294 |
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Depreciation & Amortization |
71.749 |
54.402 |
63.417 |
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Other Expenditure |
378.305 |
309.724 |
318.586 |
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Total Expenditure |
2271.523 |
1983.833 |
1736.961 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
10.58
|
9.68 |
9.64 |
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Net Profit Margin (PBT/Sales) |
(%) |
16.42
|
18.72 |
9.64 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
24.44
|
27.62 |
17.79 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.41
|
0.48 |
0.33 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.66
|
0.67 |
0.81 |
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Current Ratio (Current Asset/Current Liability) |
|
1.88
|
2.40 |
1.94 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was incorporated on 3rd October, 1981 at Kanpur
in Uttar Pradesh having Company Registration Number 5446.
Subject is a part of Lohia Group.
The Group has currently interests in machine building for plastic and
textile industry, synthetic sewing yarn manufacture and engineering plastic
injection moulding, the group now has ambitious plans to diversify its operations
in other areas of business in the near future.
Subject is engaged in manufacturing of machinery for the flexible
packaging and synthetic textile industry.
In the area of flexible packaging, the company manufactures complete range
of woven sack machinery and in the area of textiles, machinery for the
processing of synthetic filaments.
It has state of the art manufacturing facilities in its various
divisions to manufacture plastic processing as well as textile machinery.
Customer’s satisfaction by delivering quality products has been the
corner stone of Lohia Group. The group, therefore, believes in manufacturing of
all critical and precision components in-house and to this end, the production
facilities of the group companies are equipped with high precision machine
tools and manned by team of well qualified and experienced engineers and
technicians.
FIXED ASSETS:-
· Land
· Buildings
· Plant and Machinery
· Computer Installation
· Office Equipments
· Furniture and Fixtures
· Vehicles
Form 8:-
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Corporate
identity number of the company |
U29263UP1981PLC005446 |
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Name of the
company |
LOHIA STARLINGER LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
D – 3/A Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh,
India |
|
This form is for |
Modification of
charge |
|
Type of charge |
· Immovable Property · Book Debts · Movable Property |
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Particular of
charge holder |
State Bank of India Overseas Branch, 15/54 B Virendra Smriti Complex, Civil Lines, Kanpur
– 208 001, Uttar Pradesh, India E-Mail: sbiobkan@sancharnet.in
|
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Nature of
instrument creating charge |
Joint Deed of
Hypothecation |
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Date of
instrument Creating the charge |
28.07.2008 |
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Amount secured by
the charge |
Rs. 850.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : 1% below State Bank
Advance Rate, Min 11.25% presently applicable Rate 11.75% p.a Terms of Repayment : Payable on demand Margin : As per agreement
letter of state Bank of India
dated 25.04.2008. Extent and Operation of the charge : Primary Security
: Hypothecation of raw materials, components, stock in process, finished
goods, stores and spares, Receivables and all other current assets, pari
passu amongst state Bank of
India, Canara Bank and HDFC Bank Limited Collateral :
Second Charge on specified fixed assets on which has been created in favour
of SBI and on equitable mortgage on specified immovable properties situated
at : 499-A, 499-B,
500-A, 500-B, 418, 419 and 453 (Chaubepur) sand D - 2/1, D -2/2 and F -4
(panki), Kanpur Others : · State Bank of India , Overseas Branch, 15/54-B, Virendra Smriti Complex, Civil Lines, Kanpur – 208 001 · Canara Bank, 16/98, The Mall , Kanpur – 208/ 001 · HDFc Bank limited, Navies Market Branch, 15/46, 1st Floor, Civil lines, Kanpur- 208 001. |
|
Short Particulars
of the property charged |
Same as mentioned
above |
|
Particulars of
the present modification |
Working Capital
limits enhanced from Rs. 650.000 millions to Rs. 850.000 millions as per
details in the first schedule to the joint deed of hypothecation dated 28.07.2008. |
|
Corporation identity number or foreign company registrations number of the company |
U29263UP1981PLC005446 |
|
Name of the company |
LOHIA STARLINGER LIMITED |
|
Address |
D - 3/A Panki Industrial Estate, Kanpur – 208 022, Uttar Pradesh,
India |
|
This Form is for |
Modification of charge |
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Type of Charges |
Immovable property, book debts, movable property (not being pledge) |
|
Particular of the charge holder |
State Bank of India Overseas Branch, 15/54 B Virendra Smriti Complex, Civil Lines, Kanpur
– 208 001, Uttar Pradesh, India |
|
Nature or description of the instrument creating charge |
Supplemental agreement of hypothecation of goods and assets. |
|
Date of the instrument creating charge |
03.04.2007 |
|
Amount Secure by the charge |
Rs. 340.000 millions |
|
Brief of the principal terms and conditions and extent and operation of the charge |
Rate of Interest :
Interest @ 1.75% below SBAR (if loan availed in rupee)
Terms of Repayment :
Margin : Not applicable Extent and operation of the charge : 1. Term Loan: first charge on the fixed assets proposed to be acquired out of Term Loan and Equitable Mortgage (EM) on immovable properties viz. D-2/1, D-2/2 and F-4 situated at Panki Industrial Estate and 418. 419 and 453 situated at Chaubepur and on specified Fixed Assets EM of land and building at 499-A and B and 500-A and B at Chaubepur and second charge over entire current assets of the company Others : 2. SLC and FBP L/C: first charge over entire current asserts of the company and second charge on fixed assets proposed to be charged to Bank for Term Loan. |
|
Particulars of the Property charged |
As per letter of SBI bearing no. OBK/COMM/07-08/14 dated 23.04.2007 |
|
Particular of present modification |
As per letter of SBI bearing no. OBK/COMM/07-08/14 dated 23.04.2007. The limits have been increased from Rs. 189.500 millions to Rs. 340.000 millions as under: Term loan Rs. 270.000 millions Foreign bill negotiation limit Rs. 50.000 millions Standby line of credit Rs. 20.000 millions |
OTHER
INFORMATION:-
The company has
CAD / CAM facilities.
In addition to the state-of-the art manufacturing facilities to
manufacture woven sack machinery, the group has well equipped Research and
Development Division recognised by the Department of Science and Technology of
the Government of India. This centre is manned by highly qualified personnel,
with the main objective of continuous product development and providing value
added service to customers.
The company has state of the art manufacturing facilities in its various
divisions to manufacture plastic processing as well as textile machinery. The
company also has a well equipped R and D division recognised by the department
of science and technology of the Government of India.
The company’s Panki Unit manufactures complete range of weaving machines
and cheese winders.
Subject manufactures complete range of Tape Stretching Line, Waste
Recycling Machine. These are manufactured in a wide range of extrusion
capacities viz.,100kg/hr, 150kg/hr, 350kg/hr and 600kg/hr etc.
The company’s major overseas selling agents are located at Egypt, Iraq,
Malaysia, Singapore, Syria and Hong Kong.
Some of its’ major
overseas selling agents are :
˜
Mahmoud M E1 Guindi, Egypt
˜
Ailayth Company for Trading Agencies, Iraq
˜
Vision Engineering and Technologies, Malaysia
˜
Russian Federation – Tortola BVI
˜
Syria – Kimex Limited, Syria
˜
Socialist Republic of Vietnam – Franco Pacific
Ventures Company Limited, Hong Kong
Subject has state of the
art manufacturing facilities in its various divisions to manufacture plastic
processing as well as textile machinery. The company also has a well equipped R
and D division recognised by the department of science and technology of the
Government of India.
Panki Unit: Manufactures complete range of weaving machines and cheese
winders:
Chaubepur Unit: Manufactures complete range of Tape Stretching Line of extrusion capacities viz. 100kg/hr, 150kg/hr, 250kg/hr, 350kg/hr, 450kg/hr, 600kg/hr. and 900 kg/hr. etc.
It is engaged in as manufacturers of machinery for HDPE / PP, Woven Sacks, synthetic, textile, plastic, rayon, tape woven sacks and Textile Industries.
Performance
Performance of the company during the year has been quite satisfactory
with improvement in overall operating results. The company achieved turnover,
net of excise, of Rs. 2586.90 millions (previous years Rs. 2296.100 millions)
showing an increase of 12.7% with Operating profit of Rs. 530.400 millions
(previous years – Rs. 429.000 millions) recording increase of 23.6% over the
previous years
Exports
Company export (FOB Value) during they ear was Rs. 1000.100 millions as
compared to Rs. 1088.100 millions last year the negative growth was mainly due
to capacity constraints and consequent diversion of production efforts to meet increasing demands of the domestic
market. However, the company expects reasonable growth in the over all export
sales in the current year. The company continues to make efforts towards
achieving higher growth by providing cost competitive high quality machines to
its customers.
The company has been accorded Star export House Status by government of
India, office of Joint Director General of Foreign Trade , Ministry of commerce
in accordance with the provisions of EXIM policy.
Quality Standards
The Company continues to be accredited ISO 9001 : 2000 Certificate by
Det Norkse Veritas, Netherlands
Certifying that its quality Management system conforms to the ISO 9001 : 2000
Standards.
Outlook For the
future
During the year, Indian economy continue its growth story. India has
emerged as the second most attractive market in the world for doing business
India n economy grew by 9.4% in terms of real GDP growth during the year
2006-07. Manufacturing and services sector continues to grow at an impressive
rate. The company being a leading supplier of complete range of machines for
plastic woven Fabric industry is
well poised to take full advantage of emerging markets not only within the
country but also globally.
The company has introduced new models of Tape Extrusion Lines and looms
during the period. Many new products are
in advanced stage development, and are set to be launched in due course. Order
book position and market trend of the products of company are encouraging and
barring unforseen circumstances the company is set to achieve new targets in
the times to come.
Subsidiary
Companies:
As reported earlier Lohia Europe GmbH has been incorporated in Germany
as a wholly owned subsidiary to help the company in its export marketing
efforts and to support its development activities. The financials statements of
Lohia Packaging Machines limited, Lohia Sales and Services Limited Lohia
Filaments Machines Limited, and Lohia Engineering and Design Services Private
Limited. Lohia Filaments Machines Limited and Lohia Engineering and Design
Services Private Limited as at 31.03.2007 and of Lohia Europe GmbH as at
31.12.2006 are annexed.
Depreciation:-
Depreciation on fixed assets has been provided in various units as
under:
Panki Unit – Written down value method- at the rates prescribed under
the Income Tax Act , 1961, Upto 1986 and as per Schedule XIV of the companies
Act 1956 after wards.
Other units – Straight line method – at the rates prescribed in Schedule
XIV of the companies Act 1956
Depreciation on additions is calculated for the fully year irrespective
of the period of use of the individual assets
Technical know – how are amortised over their estimated economic life
not exceeding four years.
Contingent
Liabilities:-
|
Particulars |
31.03.2007
(Rs
in millions) |
|
Liability for bills discounted from banks against |
91.722 |
|
Claims against the company not acknowledge as debts |
7.538 |
|
Future liability if any for performance guarantees to customers for
machines supplied |
Amount not
ascertained |
|
In respect of counter guarantees given to banks against guarantees
given by them |
20.385 |
|
Demand of Central Excise and services Tax which the company has not
admitted and is contested |
15.122 |
WEBSITE DETAILS:-
Polypropylene Continuous filament yarn in the early 60’s was
used in carpets, but over the years with the improvement in the extrusion
technology, finer denier yarns have been successfully and commercially
manufactured, enabling diverse end uses of this yarn in apparel, hosiery,
automotive and medical applications. The Polypropylene yarn offers some unique
features for example, low specific weight, resistance water absorption,
insulation, colour fastness and also offers good price advantage over many other
textiles yarns.
Subject has been in the business of Polypropylene extrusion for almost two decades and therefore it was very natural for them to utilise their experience to enter in this new and growing industry.
It is very important in Polypropylene filament extrusion that the dormant time
of the polymer is the short to avoid wastage in the colour changes, degradation
of polymer etc. Keeping these requirement in mind, the ‘LoFil’
Polypropylene extrusion line was designed and developed by a team of experienced
and skilled Europeans with decades of experienced in this field. The salient
features of the machine are:
1. Compact dimension
2. High Flexibility to produce different kind of yarns and colour
3. Low wastage due to small batch size etc.
4. Cost Effective
5. European design technology
6. All critical items sourced from Europe /USA
7. Very Fine Quality of Yarns
The Machine manufactured by us comes in 3 basic versions of POY (Partially Oriented Yarn), FDY (Fully Drawn Yarn) and HT (High Tenacity) Yarn. Over and above these 3 versions these are special version for fine denier and low DPF yarn. The specifications of the machine are given below:
a) Dosing –Volumetric and Gravimetric Dosing Unit as per Customer’s
need.
b) Special Low Shear Screw of different sizes with low energy consumption.
c) Automatic Screen belt filter with very low maintenance requirement.
d) Spinning Beam with Fully metered melt stream and low energy consumption.
e) Large spin packs for high number of filaments
f) Air Quench with cross flow and automatic temperature control.
g) Adjustable height of spin finish systems with oil
dispersion jets
h) All godets in pairs (no pin/idle rollers) for high quality yarn. Godet stands come in various configurations, depending or, the requirement.
i) Automatic computer controlled system with fault finding recipe management and trend analysis etc.
j) Automatic ASW winders for good packages, low waste arid high transfer efficiency.
k) Winding speeds upto 4000 m/min.
l) Titre range from 50 to 2000 dtex
m) The above specifications and advantages can thus
be summarised as below:
·
Proven Technology
·
High Yarn Quality
·
High Reproducibility
·
Low Labour Costs
·
Low Running Costs
·
Low Energy Costs
·
Low Investment Costs
·
Low Space Requirement
·
Low Waste Levels
·
Minimum Installation Time
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.95 |
|
UK Pound |
1 |
Rs.79.56 |
|
Euro |
1 |
Rs.63.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
67 |
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/normal. |
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 |
|