MIRA
INFORM REPORT
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Report Date : |
22.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEWAGE ELECTRICAL INDIA LIMITED |
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Formerly Known As : |
CUMMINS GENERATOR TECHNOLOGIES INDIA LIMITED |
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Registered Office : |
Godrej Eternia C, B Wing, 5th Floor,
Wakdewadi, Mumbai Pune Road, Shivaji Nagar, Pune 411 005, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.05.1991 |
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Com. Reg. No.: |
061456 |
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CIN No.: [Company
Identification No.] |
U31101PN1991PLC061456 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNENO3919G |
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PAN No.: [Permanent
Account No.] |
AABCC1533E |
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Legal Form : |
A closely held
public limited liability company |
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Line of Business : |
Engaged in the
business of manufacturing Brushless A. C. generators |
RATING &
COMMENTS
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MIRAs 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 3500000 |
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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 fine track. Available information indicates
high financial responsibility of the company. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be
regarded as a promising business partners in a medium to long run. |
LOCATIONS
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Registered Office : |
Godrej Eternia C, B Wing, 5th Floor,
Wakdewadi, Mumbai Pune Road, Shivaji Nagar, Pune 411 005, Maharashtra,
India |
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Tel. No.: |
91-20-66246700 |
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Fax No.: |
91-20-66025331 |
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Website : |
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Corporate Office : |
203, Mayfair
Towers - I, wakdewadi, Shivajinagar, Pune - 411 005, Maharashtra, India |
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Tel. No.: |
91-20-5603 464 /
5 / 6 / 4025329 / 30 |
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Fax No.: |
91-20-5602 5331 /
4025331 |
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Factory 1 : |
C-33 M.I.D.C. Ahmednagar - 414 111, Maharashtra, India |
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Tel. No.: |
91-241- 560 3464/
5 / 6 / 2777495 / 96 |
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Fax No.: |
91-241- 277 7494 |
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E-Mail : |
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Factory 2 : |
G-6, MIDC Ranjangaon, Shirur Taluk, Dist. Pune 412 308, Maharashtra,
India |
DIRECTORS
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Name : |
Mr. Michael Allen
Norris |
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Designation : |
2, Director
appointed in casual vacancy |
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Address : |
2, St. Medards Close,
Little Bytham, Grantham, NG33 4RX, Little Bytham |
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Date of Birth/Age : |
02.07.1957 |
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Date of Appointment : |
19.05.2008 |
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Name : |
Mr. Pradeep Kumar
Bhargava |
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Designation : |
Managing Director
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Address : |
Flat No. 19, Cozy
Retreat No.3, Sindh Housing Society, Aundh, Pune 411 007, Maharashtra,
India |
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Date of Birth/Age : |
25.06.1949 |
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Qualification : |
Bachelor of
Science Bachelor of Engineering PGDBA |
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Experience : |
2 ½ years |
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Date of Appointment : |
01.05.2005 |
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Last Employment : |
Cummins India
Limited Director |
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Name : |
Mr. Srikanth
Padmanabhan |
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Designation : |
Director |
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Address : |
Morland House,
Marn Street, Tinwell, Stamford, Lincolnshire PE9 3UD, Stamford |
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Date of Birth/Age : |
26.05.1964 |
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Date of Appointment : |
12.04.2004 |
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Name : |
Mr. Paul Crossley |
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Designation : |
Director |
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Address : |
C/o Newage
International Ltd, Slamiord, England |
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Date of Birth/Age : |
07/04/1962 |
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Date of Appointment : |
19/04/2004 |
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Name : |
Mr. Anant Jaivant
Talaulicar |
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Designation : |
Director |
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Address : |
Flat No. 2101, A
and B, Sterling Tower, Goregaonkar Road, Gamdevi, Mumbai 400 007,
Maharashtra, India |
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Date of Birth/Age : |
11.07.1961 |
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Date of Appointment : |
19.04.2004 |
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Name : |
Mr. Rajiv Batra |
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Designation : |
Director |
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Address : |
Flat No. 5 The
IRIS, 3rd Floor, S No 28/29/A, Lane E, Koregaon Park Road, Pune
411001, Maharashtra, India |
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Date of Birth/Age : |
30.09.1955 |
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Date of Appointment : |
07.09.2004 |
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Name : |
Mr. Sarpotdar
Govind Shrikant |
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Designation : |
Director |
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Address : |
Flat No. 4 and 5
Plot No 4, 137/4, Salokha Gururaj Housing Society, Near Jai Bhawani Society,
Pune 411 038 |
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Date of Birth/Age : |
08/11/1950 |
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Date of Appointment : |
13/09/2002 |
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Name : |
Mr. Mcoowell
Vicent Peter |
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Designation : |
Director |
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Address : |
21, Gateways,
Epson, U K |
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Date of Birth/Age : |
28/04/1945 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr. Ibbo Son Iric
Paul |
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Designation : |
Director |
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Address : |
9 St. Marys
Woddnewton, PE8 5ET, England |
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Date of Birth/Age : |
08/02/1958 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr. Venkatesan N.
Ravi |
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Designation : |
Director |
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Address : |
77 Natinal Co-op
Housing Society Ltd, Baner Road, Aundh, Pune 411007 |
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Date of Birth/Age : |
12/01/1963 |
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Date of Appointment : |
28/07/2003 |
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Name : |
Mr. Benjamin
Joseph Miller |
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Designation : |
Director |
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Address : |
11, Laxmon Drive,
Oundle, Peterborough, PE85TW, Peterborough, UK |
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Date of Birth/Age : |
23.12.1966 |
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Date of Appointment : |
17.03.2006 |
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Name : |
Mr. Nazrul
Talukdar |
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Designation : |
Director appointed
in casual vacancy |
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Address : |
10, Dovecote
Close, Barrowden, Rutland LE 15 8ET, Rutland, UK |
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Date of Birth/Age : |
06.11.1966 |
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Date of Appointment : |
26.03.2007 |
KEY EXECUTIVES
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Name : |
Mr. Sachin
Bhagwat |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
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Foreign holdings (Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s),
Non-resident indian(s) or Overseas corporate bodies or Others |
51.00 |
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Bodies corporate |
48.53 |
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Other top fifty (50) shareholders |
0.47 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Engaged in the
business of manufacturing Brushless A. C. generators |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Brushless AC Generator |
Kw |
4030893 |
3092880 |
GENERAL
INFORMATION
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No. of Employees : |
About 800 |
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Suppliers : |
·
Anography Sturdy
Engineers (India) Private Limited ·
Bhavsar
Foundries Private Limited ·
Saurabh
Engineers ·
Chetak
Industries ·
Superb
Engineers ·
Classic Wire
Insulations ·
Surya
Engineering Works ·
D.P.
Engineering Company ·
Suyog
Industries ·
Enkay
Traders ·
Sunraj
Rubbers industries ·
Glassfibre
and Allied industries ·
S.V.
Industries ·
Kiran Udyog ·
Thriam
Polymers ·
M. k.
Engineers ·
Unique
Industry ·
Polycom
Associates ·
Vishgral
industries ·
Rushas
Engineering Company Limited ·
Vibha
Technics ·
Sarnaik
Brother private Limited ·
Wood Arts ·
Star Casting
Private Limited ·
Superb
Diecastings Private Limited |
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Bankers : |
·
HDFC Bank
Limited Sandoz House Branch, Dr. Annie Besant Road, Worli, Mumbai 400 018, Maharashtra, India ·
Bank of
Baroda ·
Citibank N.
A. ·
State Bank
of India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Price Warehouse Chartered
Accountants |
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Address : |
·
305-311, Century Arcade, 243-244, B/2, Narangi Baug Road, Pune 411
001, Maharashtra, India ·
252, Veer Savarkar Marg, Shivaki Park, Dadar, Mumbai 400 028,
Maharashtra, India |
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Group Companies : |
·
Newage
International Limited, UK ·
Newage
AVK-SEG Asia Pacific Pte. Limited ·
Newage
AVK-SEG, USA ·
Wuxi Newage
Altrnators Limited ·
Stamford
Mexico S. DE R. L. DE C.V. ·
Cummins
India Limited ·
Cummins Inc,
USA. ·
Onan
Corporation Limited |
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Subsidiaries : |
AVK SEG (India)
Power Limited CIN No.:
U31101PN2004PLC019854 |
CAPITAL STRUCTURE
(As on 30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1607001 |
Equity Shares |
Rs.10/- each |
Rs.16.070
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
16.070 |
16.070 |
16.070 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
689.622 |
398.784 |
270.049 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
705.692 |
414.854 |
286.119 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
13.305 |
0.000 |
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2] Unsecured Loans |
61.062 |
66.032 |
68.135 |
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TOTAL BORROWING |
61.062 |
79.337 |
68.135 |
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DEFERRED TAX LIABILITIES |
15.562 |
11.707 |
14.020 |
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Finance Lease liability |
6.757 |
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TOTAL |
789.073 |
505.898 |
368.274 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
251.197 |
203.171 |
183.197 |
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Capital work-in-progress |
51.085 |
6.081 |
6.574 |
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INVESTMENT |
79.944 |
34.257 |
102.389 |
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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 |
229.478
|
142.872
|
123.098
|
|
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Sundry Debtors |
553.228
|
468.754
|
291.430
|
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Cash & Bank Balances |
30.355
|
44.574
|
15.176
|
|
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Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
94.980
|
44.840
|
20.709
|
|
Total
Current Assets |
908.041
|
701.040
|
450.413
|
|
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Less : CURRENT LIABILITIES
& PROVISIONS |
|
|
|
|
|
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Current Liabilities |
449.420
|
339.040
|
288.833
|
|
|
Provisions |
51.774
|
99.611
|
85.466
|
|
Total
Current Liabilities |
501.194
|
438.651
|
374.299
|
|
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Net Current Assets |
406.847
|
262.389
|
76.114
|
|
|
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|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
789.073 |
505.898 |
368.274 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2917.666 |
2092.944 |
1414.603 |
|
|
Other Income |
42.484 |
38.148 |
11.883 |
|
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Total Income |
2960.150 |
2131.092 |
1426.486 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
521.812 |
392.324 |
226.563 |
|
|
Provision for Taxation |
178.470 |
135.322 |
84.224 |
|
|
Profit/(Loss) After Tax |
343.342 |
257.002 |
142.339 |
|
|
|
|
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Export Turnover |
|
|
|
|
|
|
Sale of goods manufactured |
410.104 |
362.221 |
0.000 |
|
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Expenditures : |
|
|
|
|
|
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Raw Material Consumed |
2078.338 |
1468.029 |
1083.486 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(46.696) |
|
|
Salaries, Wages, Bonus, etc. |
92.325 |
69.176 |
48.437 |
|
|
Managerial Remuneration |
5.466 |
4.599 |
4.072 |
|
|
Payment to Auditors |
1.230 |
1.130 |
0.955 |
|
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Interest |
1.318 |
0.578 |
0.037 |
|
|
Insurance Expenses |
1.701 |
1.629 |
1.530 |
|
|
Power & Fuel |
17.446 |
10.995 |
9.342 |
|
|
Depreciation & Amortization |
30.415 |
25.272 |
21.767 |
|
|
Other Expenditure |
210.099 |
157.360 |
76.993 |
|
Total Expenditure |
2438.338 |
1738.768 |
1199.923 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
11.60
|
12.06 |
9.98 |
|
|
|
|
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
17.88
|
18.75 |
16.02 |
|
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
45.01
|
43.39 |
35.76 |
|
|
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|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.74
|
0.95 |
0.79 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.80
|
1.25 |
1.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.81
|
1.60 |
1.20 |
LOCAL AGENCY
FURTHER INFORMATION
Note :
The Registered address
of the company has been shifted from C-33, MIDC, Area, Ahmednagar 414 111,
Maharashtra, India to the present address w.e.f 20.09.2007
Fixed Assets :
·
Leased Hold,
·
Building,
·
Plant and
Machinery,
·
Furniture and
Fixtures
·
Vehicles
The company is in trade terms with :
- Amit Engineering and Metal Pressing
- Bhavsar Foundries Private Limited
- Casilon Polymers Private Limited
- Kalantri Chemical Industries
- Rushas Engineering Company Limited
- Raja Rubbers & Tubes Private
Limited
- Sarnaik Brothers Private Limited
- Sturdy Engineers (India) Private
Limited
- Surya Engineering Works
- Ujwal Electrical Stampings.
Form No. 8
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Name of the
Company NEWAGE
ELECTRICAL INDIA LIMITED |
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Presented by |
HDFC Bank Limited and NEWAGE ELECTRICAL INDIA LIMITED |
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Date and description of instrument creating the change |
Dated 16th June, 2003 Letter of Hypothecation of Stocks and Book Debts. |
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Amount secured by the charge/amount owing on the securities of charge |
Rs.30.000 millions |
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Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
· All goods both present and future consisting of stocks, shares, bonds, debentures, and any other securities whatsoever, being movable properties now or at any time hereafter belonging to the Borrower or at disposal of Borrower and now or at ant time and from time to time hereafter stored or to be stored or brought into or upon or in course of transit to Borrower premises or at any other place whatsoever and wheresoever in Borrower possession or occupation or at any other premises or place (all of which hereinafter collectively referred to The hypothecated goods); and · All the Book Debts, outstandings monies receivable, claims and bills which are now due and owing or which mat at any time hereafter during the continuance of this security becomes due and owing to the Borrower in the course of its business by any person, firm, company or body corporate or by the Government Department or office or any Municipal or Local or Public or Semi Government Body or authority or any body corporate or undertaking or project wharever in the Public Sector. |
|
Gist of the terms and conditions and extent and operation of the charge. |
· The goods and debts stated above shall be the continuing security for the due repayment of following facilities by the Borrower to the Bank at any time on demand : I. Cash Credit/Working Capital Demand Loan/Inland Bills/Pre and Post Shipment Credit Rs.10.000 millions II. Import/local/L/Cs and Guarantees Rs.20.000 millions · The Borrower shall at all times during the continuance of this security maintain the said goods and debts of a sufficient quantity and value (as estimated by the Bank) so as to provide the margin of security as may from time to time be advised by the Bank to the Borrower. |
|
Name and Address and description of the person entitled to the charge. |
HDFC Bank Limited
Sandoz House Branch, Dr. Annie Besant Road, Worli, Mumbai 400 018, Maharashtra, India |
|
Date and brief description of instrument modifying the charge |
N.A. |
|
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. |
N.A. |
AS PER
WEBSITE
History
Subject registered as a public company. Its Plant was inaugurated
on 15th May, 1992. The operations commenced in the year 1993-94. Right from the
inception, the Company has implemented many industrial engineering principles
in the TQM way. The Company has achieved the phenomenal growth. Starting from
humble sales of Rs. 50 Millions in the first year 1993/94, progressed rapidly
to the turnover of Rs. 640 Millions in 1999-2000. and turnover of Rs. 1610
Millions. in the financial year 2004-2005. The latest financial year 2005-6 saw
the company posting record sales of Rs. 2340 Millions in Sales. This has
established subject as a market leader in the Indian alternator market. The
companies Manufacturing plant and registered office is located at
Ahmednagar in India. The corporate office started at Pune in year 2002-2003.
Cummins Generator Technologies has achieved a largest capacity of manufacturing
30,000 units per annum in year 2004 and has ambitious plans to create an annual
capacity of over 60,000 units from 2007 onwards.
Major Highlights
- April 1993 Commercial
Production Started.
- June 1989
MOU Signed For JV with Crompton Greaves (CGL)
- May 1996
Accredited With ISO 9000.
- July
2002 Crompton Greaves Ltd Sells Shares To Cummins group.
- April 2003 India
Product IP 23 Compliant (First Unit globally)
- Year 2003
Sales Volume 13000 Alternators Value 20 Mn US$
- Jan
2004 Formal Inauguration Of Facilities After Expansion
- Feb
2004 Started Exports to Associate Entities (group companies).
- Year 2004
Sales Volume 19,000 alternators Value 30 Mn US$
- May
2005 Capacity In Place For Manufacturing 40,000 annually
- Year 2005
Sales Volume 30,000 & Value 40 Mn US$
- Year 2006
Sales Volume 43,000 & Value 58 Mn US$ (Estimated)
- Profit Making
Enterprise since Inception
..
Business
The
company in India is engaged in the business of manufacturing Brushless A. C.
generators. In the range 5 kVA to 2200 kVA range under the famous STAMFORD
brand. STAMFORD Alternators are well accepted in the market as a quality
product and have made us a significant player in the Indian market. The company
is ISO 9001 : 2000 certified. World-class systems and Initiatives like Six
Sigma, Kaizen, JIT are effectively implemented in the Company. The Company has
a young and dynamic technical and professional workforce. They keep continuous
development and improvement as the main thrust. The complete office building
was automated by Desk to desk computer system, interconnected LAN system and E
mail software. They use the latest ERP solution for making the business
function and deliver results, effectively.
Products
Subject Manufactures Brush-less Alternators with the most
advanced design, production and testing facilities sets an international
standard for ruggedness and reliability.
Presently available from 5 kVA
to 2200 KVA, STAMFORD generators are suitable for all generator set
configurations to meet the most demanding range of industrial, commercial,
construction, telecommunications, mining and other standby or prime power applications.
Cummins Generator Technologies
Limited UK. leads the way in Automatic Voltage Regulator (AVR) technology, for
both self-excited and PMG excited generators. Ongoing quality control
programmes, based on rigorous component selection, testing, design refinement
and encapsulation developments, and have made AVR technology a byword of
reliability.
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 Intl
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 companys 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.46.32 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.65.90 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
|
72 |
This score serves as a reference to assess SCs 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 |
|