MIRA
INFORM REPORT
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Report Date : |
31.01.2011 |
IDENTIFICATION DETAILS
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Name : |
KARTHIK INDUCTIONS LIMITED |
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Registered
Office : |
Plot No.120-121, Kundaim Industrial Estate, Kundaim, South Goa-403115,
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
06.10.1994 |
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Com. Reg. No.: |
11-001666 |
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CIN No.: [Company Identification
No.] |
L27108GA1994PLC001666 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
Manufacture of Mild Steel ingots.
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RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 140000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
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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. Kamat |
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Designation : |
Accounts Deaptment |
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Date : |
28.01.2011 |
LOCATIONS
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Registered Office/ Factory : |
Plot No.120-121, Kundaim Industrial Estate, Kundaim, South Goa-403115,
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Tel. No.: |
91-832-2395555 / 2395096 |
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Fax No.: |
91-832-2395132 |
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E-Mail : |
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Website : |
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Area : |
8000Sq.ft |
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Location : |
Owned |
DIRECTORS
As On : 30.09.2010
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Name : |
Mr. Gopala Bhupal |
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Designation : |
Chairman cum Managing Director |
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Address : |
H No.8-2-293/82/F/19A, Film Nagar, Hyderabad-500033, |
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Date of Birth/Age : |
09.12.1954 |
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Date of Appointment : |
19.08.2006 |
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DIN No : |
00210843 |
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Name : |
MR. Raghavendra Bhupal |
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Designation : |
Managing Director |
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Address : |
D-11, LA, Marvel Colony, Dona Paula, North Goa, Goa-403004, |
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Date of Birth/Age : |
29.07.1958 |
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Date of Appointment : |
10.02.2004 |
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DIN No : |
00159516 |
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Name : |
Mr. Ramu A. |
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Designation : |
Director |
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Address : |
Adwalpalkar Shelter, Opposite Kamat Classic, Phase IV, Caranzalem,
Gao-403002, |
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Date of Birth/Age : |
01.07.1971 |
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Date of Appointment : |
02.08.2008 |
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DIN No : |
00160028 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON : 30.09.2010
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Names of Shareholders |
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No. of Shares |
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Mr. Gopala Bhupal |
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157100 |
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MR. Raghavendra Bhupal |
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292800 |
AS ON 30.09.2010
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Nationalized / Other Banks |
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0.17 |
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Bodies corporate |
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23.13 |
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Directors or relatives of directors |
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61.64 |
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Other top fifty shareholders |
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15.06 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Mild Steel ingots.
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Products : |
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Terms : |
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Selling : |
Cash, Credit |
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Purchasing : |
Cash, Credit |
PRODUCTION STATUS (As On : 31.03.2010)
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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M. S. Ingots |
M.T. |
37200 |
37200 |
24368.075 |
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Runner and Risers |
M.T. |
37200 |
37200 |
812.940 |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
33 (In Office -10 and In Factory -23) (Approximately) |
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Bankers : |
·
State Bank of Margao Branch, Ground Floor, Damodar Chambers, Near Baptista Road,
Margao-403601, Goa, Maharashtra, India ·
HDFC Bank Limited |
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Facilities : |
Note : 1. Working capital from State Bank of constructive deposit of title deeds of Company's land and building at
plot No. 120 – 121 Kundaim Industrial Estate, Kundaim Goa as and by way of
first charge including Company's fixed Plant and Machinery situated at Plot
No.120-121, Kundaim Industrial Estate, Kundaim, Goa. 2. Loan from HDFC Bank Limited. - Volkswagen Car is secured by way of
hypothecation of Volkswagen Car.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
D. V. Sarovar and Company Chartered Accountant |
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Address : |
3/14, |
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Associates : |
Rukminirama Steel Rollings Private Limited |
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Group Companies : |
Karthik Alloys Limited Srikant Enterprises Karthik Rukmini Impex Private Limited Karthik Associaltes Road Carrier Private Limited |
CAPITAL STRUCTURE
As On : 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1750000 |
Equity Shares |
Rs. 10/- each |
Rs. 17.500 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1442850 |
Equity Shares |
Rs. 10/- each |
Rs. 14.428
millions |
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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 |
14.428 |
14.428 |
14.428 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
22.431 |
21.156 |
20.937 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
36.859 |
35.584 |
35.365 |
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LOAN FUNDS |
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1] Secured Loans |
30.210 |
36.905 |
10.921 |
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2] Unsecured Loans |
6.981 |
6.512 |
8.624 |
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TOTAL BORROWING |
37.191 |
43.417 |
19.545 |
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DEFERRED TAX LIABILITIES |
3.915 |
3.752 |
3.783 |
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TOTAL |
77.965 |
82.753 |
58.693 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
24.050 |
24.740 |
25.128 |
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Capital work-in-progress |
2.791 |
1.610 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
25.364
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21.185 |
13.189 |
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Sundry Debtors |
24.727
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51.894 |
75.158 |
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Cash & Bank Balances |
11.800
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4.294 |
4.050 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
29.242
|
17.048 |
10.818 |
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Total
Current Assets |
91.133 |
94.421 |
103.215 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
27.254
|
24.937 |
53.576 |
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Other Current Liabilities |
12.755
|
13.081 |
16.074 |
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Provisions |
0.000 |
0.000 |
0.000 |
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Total
Current Liabilities |
40.009 |
38.018 |
69.650 |
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Net Current Assets |
51.124
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56.403 |
33.565 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
77.965 |
82.753 |
58.693 |
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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 |
531.819 |
584.084 |
511.757 |
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Other Income |
27.984 |
30.941 |
38.140 |
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TOTAL (A) |
559.803 |
615.025 |
549.897 |
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Less |
EXPENSES |
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Cost of Materials |
448.695 |
507.998 |
440.239 |
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Manufacturing Expenses |
101.860 |
97.608 |
95.806 |
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Increase/(Decrease) in Finished Goods |
(0.443) |
2.225 |
0.793 |
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Prior Period Expenses |
0.000 |
0.000 |
0.002 |
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TOTAL (B) |
550.112 |
607.831 |
536.840 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9.691 |
7.194 |
13.057 |
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Less |
FINANCIAL
EXPENSES (D) |
3.291 |
3.560 |
2.427 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
6.400 |
3.634 |
10.630 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4.553 |
3.159 |
2.663 |
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PROFIT BEFORE
TAX (E-F) (G) |
1.847 |
0.475 |
7.967 |
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Less |
TAX (H) |
0.569 |
0.257 |
2.601 |
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PROFIT AFTER TAX
(G-H) (I) |
1.278 |
0.218 |
5.366 |
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Transfer
to General Reserve |
1.278 |
0.218 |
5.366 |
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IMPORTS |
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Raw Materials |
48.891 |
44.239 |
0.255 |
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TOTAL IMPORTS |
48.891 |
44.239 |
0.255 |
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Earnings Per
Share (Rs.) |
0.88 |
0.15 |
3.72 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
0.23
|
0.04 |
0.98 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.35
|
0.08 |
1.56 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.60
|
0.40 |
6.21 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.05
|
0.01 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.20
|
2.39 |
2.63 |
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Current Ratio (Current Asset/Current Liability) |
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2.28
|
2.48 |
1.48 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS DETAILS
(Rs in Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Creditors for Raw Material |
23.299 |
20.410 |
49.059 |
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Creditors for Store and Spares |
1.848 |
1.405 |
0.788 |
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Creditors for Expenses |
0.504 |
0.688 |
0.015 |
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Creditors for Capital Expenditure |
1.603 |
2.434 |
3.714 |
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TOTAL |
27.254 |
24.937 |
53.576 |
PERFORMANCE:
During the year
the Company has posted a turnover of Rs. 531.819 millions as against Rs584.084
millions in the previous year. This constitutes a marginal decrease of 8.95%
percent in the turnover. The downward steel market trend has further reduced
margins and affected realizations. Despite the various constraints the Company
has managed to post a profit of Rs. 1.276 millions as against Rs. 0.219
millions in the precious financial year. The main factors for the improved
profitability have been the excellent handling of the plant and optimum
utilization of raw material. Any significant signs of revival in the present
downward market could produce better results.
FORM 8
|
Corporate
identity number of the company |
U27108GA1994PLC001666 |
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Name of the
company |
KARTHIK
INDUCTIONS LIMITED |
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Address of the registered
office or of the principal place of
business in |
Plot No.120-121, Kundaim Industrial Estate, Kundaim, South Goa-403115,
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This form is for |
Modification of
charge |
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Type of charge |
Immovable property
Book debts |
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Particular of
charge holder |
State Bank of Mysore, Margao Branch, Ground Floor, Damodar Chambers,
Near Baptista Road, Margao-403601, Goa, Maharashtra, India |
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Nature of
instrument creating charge |
Letter- Closure of
Foreign L/C Limit |
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Date of
instrument Creating the charge |
13.09.2010 |
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Amount secured by
the charge |
Rs. 87.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest As per the banks terms
and condition. Terms of repayment As per the banks
terms and condition. Margin As per the banks
terms and condition. Extent and operation of the charge To the extent of
Rs.87.500 millions The total limit was Rs.104.500 millions however the
company wants to close its foreign L/C limit of Rs.17.000 millions. Now with
this modification the total limit reduce to Rs.87.500 millions Other Company has
reduced the limit by Rs.0.170 million so the total limit of Rs stands to
Rs.0.875 millions CC 10.000 millions IBD (INLAND
LC)40.000 millions ILC 20.000 millions BG 17.500 millions FLC 17.000 millions (closed
by way of modification) Total 104.500 millions |
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Short particulars
of the property charged (Including location of the property) |
All the terms and
condition remain same. |
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Charge
identification number of the charge to be modified |
90075711 |
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Date of
instrument modifying the charge |
05.06.2010 |
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Particulars of
the present modification |
With this
modification company wants to revised / reduction in limit by closing foreign
L/C limit of Rs.17.000 millions with this the total limit stands at Rs.0.875
millions |
FIXED ASSETS
·
Land
·
·
Administrative Building
·
Plant and Machinery
·
Electrical Installation
·
Laboratory Equipment
·
DIES /JIGS / MOULDS
·
Furniture and Fixtures
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Computers
·
Office Equipments
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Vehicles
·
Pollution Control
Equipments
TRADE REFERENCE
·
Morga Steel Limited
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.45.74 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.62.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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 |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.