MIRA
INFORM REPORT
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Report Date : |
18.01.2011 |
IDENTIFICATION DETAILS
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Name : |
SOVEREIGN TECH ENGINEERING SERVICES PRIVATE LIMITED |
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Registered Office : |
14, Mahinder Chamber Swaman Tukaram Patil Marg, Chembur,
Mumbai-400071, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
08.04.1986 |
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Com. Reg. No.: |
11-39496 |
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CIN No.: [Company
Identification No.] |
U24230MH1986PTC039496 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Coolant Filtration Systems |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 199600 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Business is active. Payments are reported to be usually correct
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
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Name : |
Mr. Ashish Shah |
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Designation : |
Deputy General Manager Finance |
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Date : |
14.01.2011 |
LOCATIONS
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Registered / Corporate Office : |
14, Mahinder Chamber Swaman Tukaram Patil Marg, Chembur,
Mumbai-400071, |
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Tel. No.: |
91-22-67973259 / 260 |
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Fax No.: |
91-22-67987499 |
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Area .: |
Owned |
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Location.: |
2000 Sq. ft |
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Factory 1 : |
A-515, TTC Industrial Area, MIDC, Mahape, Navi Mumbai, |
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Tel. No.: |
91-22-56147556/57 |
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Area : |
9000 sq ft (Owned) |
DIRECTORS
As on 21.09.2010
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Name : |
Mr. Vimal M. Bhujle. |
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Designation : |
Managing Director |
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Address : |
1 Usha Co-Operative Housing Society, |
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Date of Birth/Age : |
13.12.1923 |
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Date of Appointment : |
08.04.1986 |
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Name : |
Mr. Sarvanand M Bhujle |
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Designation : |
Director |
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Address : |
14, Avanti Co-Oprative Society, Deonar Baug, Deonar, Mumbai- 400088,
Maharashtra, India |
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Date of Birth/Age : |
07.03.1955 |
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Date of Appointment : |
08.06.1986 |
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Name : |
Mr. Aditya S. Bhujhle |
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Designation : |
Director |
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Address : |
Aditya Sarvanand Bhujle, 14, Avanti C. H. S. Limited, Deonar Baug,
Deonar, Mumbai – 400088, |
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Date of Birth/Age : |
16.03.1988 |
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Date of Appointment : |
17.03.2006 |
KEY EXECUTIVES
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Name : |
J. H. Ranade and Associates |
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Designation : |
Company Secretaries |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 21.09.2010
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Names of Shareholders |
No. of Equity
Shares Held |
No. of
Preferance Shares Held |
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Mr. Vimal Madhukar Bhujle |
191700 |
-- |
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Mr. Sarvanand Madhukar Bhujle |
768295 |
-- |
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Mr. Aditya Sarvanand Bhujle |
5 |
-- |
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Mr. and Mrs. Shirish R. Joshi |
-- |
1 |
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Mr. Servanand Madhukar Baujle |
-- |
3 |
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Ms. Vanita Sharma |
-- |
1 |
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Mrs. Sindhu Sasi |
-- |
1 |
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Total |
960000 |
6 |
As on 21.09.2010
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Category |
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Percentage |
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Directors or relatives of Directos |
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100.00 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Coolant Filtration Systems |
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Exports : |
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Products : |
Pum’ s and Pumping Equipments, Nozzles, Coolant Filtration |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit (30, 60, 90 Days) |
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Purchasing : |
L/C, Cash and Credit (30, 60, 90 Days) |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
50 (Approximately) |
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Bankers : |
Bank of India, 61-A, |
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Facilities : |
Cash Credit 31.400 Millions
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Gokhale and Sathe Chartered Accountant |
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Address : |
302/303, Udyog Mandir No. 1 7-C Bhagoji Keer Marg, Mahim, Mumbai – 400016,
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CAPITAL STRUCTURE
As on 21.09.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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995000 |
Equity Shares |
Rs. 10/- each |
Rs. 9.950 Millions |
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50 |
8% Non Cumulative Redeemable Preferance Share |
Rs. 1000/-eash |
Rs. 0.050 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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960000 |
Equity Shares |
Rs. 10/- each |
Rs. 9.600
Millions |
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6 |
8% Non Cumulative Redeemable Preferance Share |
Rs. 1000/-eash |
Rs. 0.006
Millions |
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Note
1) Of the Above 880,000 Equity shares of Rs. 10/- each have been issued as
fully paid bonus shares of Rs 1,000/- each fully paid up
2) Preferance Share would be redeemed at the option of the company within
maximum tenure of 20 year from the date of issue of the share
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.606 |
9.606 |
9.606 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
40.295 |
38.198 |
37.211 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
49.901 |
47.804 |
46.817 |
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LOAN FUNDS |
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1] Secured Loans |
57.957 |
63.849 |
64.801 |
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2] Unsecured Loans |
9.260 |
9.145 |
5.348 |
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TOTAL BORROWING |
67.217 |
72.994 |
70.149 |
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DEFERRED TAX LIABILITIES |
0.012 |
(0.045) |
0.136 |
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TOTAL |
117.130 |
120.753 |
117.102 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
73.584 |
75.848 |
81.979 |
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Capital work-in-progress |
11.768 |
4.650 |
0.000 |
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INVESTMENT |
0.000 |
2.982 |
2.982 |
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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 |
17.047
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20.697 |
13.449 |
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Sundry Debtors |
21.849
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11.547 |
46.981 |
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Cash & Bank Balances |
8.624
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3.624 |
0.325 |
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Other Current Assets |
0.072
|
0.142 |
4.565 |
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Loans & Advances |
6.361
|
7.699 |
0.225 |
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Total
Current Assets |
53.953
|
43.709 |
65.545 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
19.384
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6.005 |
28.627 |
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Current Liabilities |
0.202
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0.215 |
1.969 |
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Provisions |
2.589
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0.216 |
2.808 |
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Total
Current Liabilities |
22.175
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6.436 |
33.404 |
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Net Current Assets |
31.778
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37.273 |
32.141 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
117.130 |
120.753 |
117.102 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income (Approximately) |
81.179 |
79.000 |
120.000 |
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TOTAL (A) |
81.179 |
79.000 |
120.000 |
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Less |
EXPENSES (Approximately) |
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Office Expenses |
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Administrative Expenses |
62.099 |
62.410 |
81.720 |
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Advertising Expenses |
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TOTAL (B) |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
19.080 |
16.590 |
38.280 |
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Less |
FINANCIAL
EXPENSES (D) |
7.710 |
8.180 |
7.730 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11.370 |
8.410 |
30.550 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6.110 |
6.410 |
5.550 |
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PROFIT BEFORE
TAX (E-F) (G) |
5.260 |
2.000 |
25.000 |
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Less |
TAX (I) |
2.203 |
1.020 |
11.420 |
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PROFIT AFTER TAX
(G-I) (J) |
3.057 |
0.980 |
13.580 |
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Less |
APPROPRIATIONS |
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Transfer to General Reserve |
0.000 |
0.000 |
9.800 |
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BALANCE CARRIED
TO THE B/S |
20.050 |
18.410 |
17.430 |
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Earnings Per
Share (Rs.) |
3.18 |
NA |
NA |
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KEY RATIOS
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PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
3.76
|
1.24 |
11.31 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.47
|
2.53 |
20.83 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.74
|
4.57 |
38.14 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.04 |
6.53 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.44
|
0.13 |
0.00 |
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Current Ratio (Current Asset/Current Liability) |
|
2.43
|
6.79 |
1.96 |
LOCAL AGENCY FURTHER INFORMATION
Sundry Creditors
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Particular |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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Sundry Creditors |
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-Due to Micro and small Enterprises |
1.271
|
0.005 |
0.000 |
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Other Creditors |
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-For Goods and Services |
11.577
|
2.897 |
18.261 |
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-For Expenses |
3.807
|
2.843 |
5.648 |
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- For Capital |
0.338
|
0.000 |
1.888 |
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-For Other |
2.392
|
0.260 |
2.830 |
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Total |
19.384
|
6.005 |
28.627 |
Trade References:
- Makino India Limited,
- Tata Maker’s
Limited, Pune
- Ashok Leela
And Limited, Pune
- Bharat Forge
Limited, Pune
- Suvarn
Enterprises, Pune
Perforamances and
Prospects
The impact of Global Melt Down and recessionary trend prevailed even during
the current financial year 2009-10. Despite this, every member of their term
did their best to rise up to the occasion and this is reflecting in the
financials of the company.
Their Marketing term ensured that sales are maintained whereas the production
term responded with prompt deliveries of their high quality product. In effect,
their sales in current financial year 2009-10 was at 810.000 Millions as
compared to 790.000 in the last financial year 2008-10 showing an upwards trend
of 3%. Net profit before tax has gone by 150% at 500.000 Millions in the
current year as against 200.000 Millions in the last financial year. The
financial term stood up with their excellent contribution in rigid control and
monitoring of expenses, working capital and funds.
If one has to go by the upswing of economic activities in
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90227060 |
|
Corporate
identity number of the company |
U24230MH1986PTC039496 |
|
Name of the
company |
SOVEREIGN TECH
ENGINEERING SERVICES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
14, Mahinder Chamberswaman
Tukaram Patel Marg, Chembur, Mumbai – 400071, |
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Type of charge |
Immovable
Property Others |
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Particular of
charge holder |
Bank of |
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Nature of
description of the instrument creating or modifying the charge |
Memorandum of
continuing oral assent. |
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Date of
instrument Creating the charge |
15.11.2007 |
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Amount secured by
the charge |
Rs. 40.980
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest This being
collateral security, terms and conditions governed by primary security
agreements and accordingly: Cash credit Limit Rs. 240.000 Millions: 0.25%
below BPLR Minimum 13% p.a. Bank Guarantee Rs. 2.500 Millions Commission as
applicable. Term Loan : Rs. 144.800 Millions: 0.25% below BPLR Minimum 13%
p.a. with monthly rests. Terms of Repayment Cash Credit on
demand. Term Loans as per Term Loan Agreements. Margin This being
collateral security, terms and conditions governed by primary security
agreements and accordingly: 25%on raw
materials, finished goods 40% on book debts
outstanding upto 2-3 months 40% for the
purpose of Term Loan against mortgage. Extent and Operation of the charge Existing Charge
of Mortgage covering Term Loan also now cover Cash Credit limit of Rs.
240.000 Millions (enhanced) and Bank Guarantee Limit of Rs. 2.500 Millions.
Security to cover principle, interests, costs charges expenses etc. Others Bank’s right as
to Lien and set off. Assignment and securitization of Debt etc. as stipulated
in the Agreement. |
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Short particulars
of the property charged |
Immovable properties
comprising land and buildings and other structures now or hereafter to be
erected and fixed machineries, plant, fixtures and fittings now or herrfter
to be eredted or installed thereon at plot no. A-515, TTC Industrial Area,
MIDC, Mahape Navi Mumbai. |
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Date of latest
modification prior to the present modification |
12.08.2006 |
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Particulars of
the present modification |
Facilities
secured by mortgage created on 13.05.2004 and later modified on 29.04.2006
and 12.08.2006. Now increased (from Rs. 28.480 Millions) to Rs. 40.980
Millions thus: Cash Credit Rs. 240.000 Millions (increased from Rs. 130.000
Millions) Term Loan Rs. 14.480 Millions and Guarantee rs. 2.500 Millions
(increased from Rs. 1.000 Millions) Thus Securing Aggregate Revised Limits of
Rs. 40.980 Millions. |
|
Corporate
identity number of the company |
U24230MH1986PTC039496 |
|
Name of the
company |
SOVEREIGN TECH
ENGINEERING SERVICES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
14 MAHINDER
CHAMBERSWAMAN TUKARAM PATEL MARG, CHEMBUR,
MUMBAI – 400071, |
|
This form is for |
Creation of charge
|
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Type of charge |
Book Debts Movable Property |
|
Particular of
charge holder |
BANK OF INDIA, 61
- A, GOKHALE ROAD NORTH, DADAR WEST, MUMBAI – 400028, Maharashtra, India |
|
Nature of
instrument creating charge |
HYPOTHECATION CUM
LOAN AGREEMENT. |
|
Date of
instrument Creating the charge |
04.09.2010 |
|
Amount secured by
the charge |
31.400 Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest: 4.75% over base rate presently 12.75%
p.a. with monthly rests. Terms of Repayment: Subject to annual review, 24 installments
(2/2011 to 1/2013) of Rs.15.000 Millions, 14 installments (2/2013 to 3/2014)
of Rs.0.400 Millions each, 24 installments (4/2014 to 3/2016) of Rs.0.500
Millions each, 9 installments (4/2016 to 12/2016) of Rs.0.600 Millions each
AND 6 installments (1/2017 to 6/2017) of Rs.0.800 Millions each. Margin : 20% Extent and Operation of the charge : First and exclusive charge of
hypothecation of movables including book debts as described in column no. 15
to secure the New Term Loan of Rs.3.140 Millions plus interests, costs,
charges and expenses in connection with the credit facility and security
created therefor. |
|
Short particulars
of the property charged |
1) All tangible
movables including Raw Materials &
finished goods, semi finished goods, spares & components and
stocks in process at Mahape & Mangaon, or in transit or wherever else 2) Present &
future movable Plant Machinery like 3 Electric Chain Hoists, Hydraulic Manual Stakker, Pallet Trolly & other miscellaneious
machineries, whether installed or not, lying loose or in 3) cases at site
at Mahape & Mangaon, or in transit
or wherever else. iii) ii) All present & future book debts,
receivables, claims, bills due and owing in the course of the business from
any persons, 4) firms, company
or body corporate or any Government or its Department or office or project
etc. |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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. 45.59 |
|
|
1 |
Rs. 72.31 |
|
Euro |
1 |
Rs. 60.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.