MIRA
INFORM REPORT
|
Report Date : |
03.06.2011 |
Note : Given address of the company could not be confirmed.
IDENTIFICATION DETAILS
|
Name : |
SHANKARA INFRASTRUCTURE MATERIAL LIMITED (w.e.f. 25.03.2011) |
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Formerly Known
as : |
SHANKARA PIPES INDIA LIMITED |
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Registered
Office : |
G-2, Farah Winsford, No.133, Infantry Road, Bangalore – 560001,
Karnataka |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
13.10.1995 |
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Com. Reg. No.: |
08-018990 |
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Capital
Investment / Paid-up Capital : |
Rs.142.637 Millions |
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CIN No.: [Company Identification
No.] |
U26922KA1995PLC018990 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer, wholesaler and trader of stainless steel pipes. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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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 2200000 |
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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 an established company having satisfactory track. General
financial position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular 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
|
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 |
LOCATIONS
|
Registered Office : |
G-2, Farah Winsford, No.133, Infantry Road, Bangalore – 560001,
Karnataka, India |
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E-Mail : |
DIRECTORS
AS ON 10.07.2010
|
Name : |
Mr. Zafar Saifullah |
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Designation : |
Chairman |
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Address : |
No.301,”Asha Deep”, 9, Hailey Road, New Delhi-110 001, Delhi, India |
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Date of Birth/Age : |
24.04.1936 |
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Date of Appointment : |
29.09.2007 |
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Din No.: |
00178214 |
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Name : |
Mr. Sukumar Srinivas |
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Designation : |
Managing Director |
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Address : |
No.490, 14th Main Road, III Block, Koramangala, Bangalore-560 034 |
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Date of Birth/Age : |
18.09.1960 |
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Date of Appointment : |
13.10.1995 |
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Din No.: |
01668064 |
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Name : |
Prof. S. Sundararajan |
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Designation : |
Director |
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Address : |
Indian Institute of Management, Bangalore, Bannerghatta Road,
Bangalore-560 076, India |
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Date of Birth/Age : |
14.05.1947 |
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Date of Appointment : |
29.09.2007 |
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Date of Ceasing : |
01.07.2010 |
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Name : |
Mr. V. Ravichandar |
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Designation : |
Director |
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Address : |
No.17, Moyenvilla Road, Langford Town, Bangalore-560 025, India |
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Date of Birth/Age : |
22.02.1957 |
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Date of Appointment : |
29.09.2007 |
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Din No.: |
00634180 |
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Name : |
Mr. C. Ravikumar |
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Designation : |
Director |
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Address : |
No.13, III Main Road, Maruthi Extension, Srirampuram, Bangalore-560
021 |
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Date of Birth/Age : |
01.05.1966 |
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Date of Appointment : |
15.09.2001 |
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Din No.: |
01247347 |
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Name : |
Mr. Ramenani Sivaprasad Venkata Subramanya |
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Designation : |
Director |
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Address : |
No.72, Warlu Mansion, Kalyan Nagar, Hyderabad, India |
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Date of Birth/Age : |
01.10.1957 |
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Date of Appointment : |
01.10.2002 |
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Din No.: |
01247339 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 10.07.2010
|
Names of Shareholders |
|
No. of Shares |
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Sukumar Srinivas |
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13386250 |
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Shankara Holdings Private Limited, Bangalore |
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161200 |
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C. Ravikumar |
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72400 |
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RSV Shiva Prasad |
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61550 |
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K.G. Kashinath |
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41550 |
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L. R. Reddy |
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26550 |
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V. Devanathan |
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41550 |
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V. Vasantha Mohana |
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14050 |
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Alex Varghese |
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20620 |
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C. Jaiprakash |
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20000 |
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N. Tamilalagan |
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20000 |
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M.P. Jayagopal |
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20000 |
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K. Rajesh |
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12500 |
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Narendra Thakur |
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12500 |
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G. Suresh Kumar |
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12500 |
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S. Sreedhar |
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12500 |
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A. Achuthan Kutty |
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12500 |
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P.N. Kumar |
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12500 |
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G. Murali |
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12500 |
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K. Adinarayanan |
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12500 |
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Parag M. Bhatt |
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12500 |
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Muralidhar B. Raichur |
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12500 |
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S. Anjan Kumar |
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12500 |
AS ON 10.07.2010
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Category |
Percentage |
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Bodies corporate |
6.15 |
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Directors or relatives of Directors |
93.85 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, wholesaler and trader of stainless steel pipes. |
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Products : |
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Production Status : 31.03.2010
Licensed Capacity Steel Tubes 8400 M. Tons per
annum
Installed Capacity Steel Tubes 1500 M. Tons
per mensem
Actual Production Steel Tubes 10697 M. Tons
Raw Material Coil Consumed 11004 M. Tons.
GENERAL INFORMATION
|
Bankers : |
IDBI Bank
Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra,
INDIA |
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Facilities : |
Notes : 1.
Term Loan are Secured by hypothecation specific
properties to respective banks. 2.
Cash Credit and working capital borrowings are secured
by a first charge on all from current assets including book debts ranking
pari passu with one another and future in respect of cash Credit from Citi
Bank off a first Charge on all fixed assets expecting those specifically
charged for term loans and in respect of working capacity facility from Kotak
Mahindra Bank Limited by a secured charge on all fixed assets. 3.
All loans are guaranteed by the Managing Director
4.
Hire Purchase Credit are secured by hypothecation
of specific assets purchased under Hire Purchase.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. Sundaraman Chartered Accountant |
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Address : |
24/2, 2nd Floor, Norris Road, Richmond Town, Bangalore –
560025, Karnataka, India |
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Tel. No.: |
91-80-41240545 |
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Email : |
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Associated Concerns : |
·
Shankara Cargo Movers ·
Shankara Meta Steel
India Private Limited ·
Shankara Holdings
Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
14263720 |
Equity Shares |
Rs.10/- each |
Rs.142.637
Millions |
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Notes :
1. Of the above 1500000 Equity Shares of Rs. 10/- each were allotted at par
as fully paid up to the erstwhile partners of M/s Shankara Agencies as
consideration for take over of business on dissolution in terms of Deed
dissolution dated 30.03.2001
2. 97700 Equity shares of
Rs. 10/- each were allotted as a premium of Rs. 110/- per share as fully paid
up to the restrowhile partners of M/s Shankara Steel and Tubes as consideration
for take over of business on discussion in terms of deed of dissolution dated
02.11.2007 and
3.
966520 Equity shares of Rs. 10/- each fully paid up have been issued as
bonus shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
SHAREHOLDERS FUNDS |
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|
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|
1] Share Capital |
142.637 |
142.637 |
142.637 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
404.007 |
298.064 |
292.406 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
546.644 |
440.701 |
435.043 |
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LOAN FUNDS |
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|
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|
1] Secured Loans |
883.186 |
412.821 |
557.755 |
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2] Unsecured Loans |
181.256 |
165.934 |
216.322 |
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TOTAL BORROWING |
1064.442 |
578.755 |
774.077 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1611.086 |
1019.456 |
1209.120 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
322.899 |
309.160 |
219.573 |
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Capital work-in-progress |
0.000 |
0.000 |
15.345 |
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INVESTMENT |
0.125 |
0.124 |
0.125 |
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DEFERREX TAX ASSETS |
0.110 |
2.681 |
2.574 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
683.396
|
385.122 |
614.992 |
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Sundry Debtors |
1184.629
|
769.443 |
886.464 |
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Cash & Bank Balances |
13.450
|
15.915 |
23.678 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
126.009
|
76.992 |
76.677 |
|
Total
Current Assets |
2007.484
|
1247.472 |
1601.811 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Other Current Liabilities |
652.699
|
524.189 |
568.545 |
|
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Provisions |
66.833
|
15.792 |
66.170 |
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Total
Current Liabilities |
719.532
|
539.981 |
634.715 |
|
|
Net Current Assets |
1287.952
|
707.491 |
967.096 |
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.407 |
|
|
|
|
|
|
|
|
TOTAL |
1611.086 |
1019.456 |
1209.120 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7144.250 |
6829.817 |
6210.443 |
|
|
|
Other Income |
4.225 |
3.462 |
4.048 |
|
|
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TOTAL (A) |
7148.475 |
6833.279 |
6214.491 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
6879.778 |
6188.540 |
5947.013 |
|
|
|
Trading Expenses |
123.389 |
91.474 |
84.468 |
|
|
|
Administrative and Other
expenses |
164.989 |
174.557 |
162.365 |
|
|
|
Increase / Decrease in Stock |
(298.273) |
229.870 |
(298.049) |
|
|
|
TOTAL (B) |
6869.883 |
6684.446 |
5895.797 |
|
|
|
|
|
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
278.592 |
148.833 |
318.694 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
84.772 |
110.017 |
80.712 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
193.820 |
38.816 |
237.982 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
17.980 |
15.866 |
11.065 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
175.840 |
22.950 |
226.917 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
61.581 |
10.898 |
97.305 |
|
|
|
|
|
|
|
|
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|
PROFIT AFTER TAX
(G-I) (J) |
114.259 |
12.052 |
129.612 |
|
|
|
|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
281.354 |
269.301 |
129.612 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
(100.000) |
|
|
|
Dividend |
(7.131) |
0.000 |
(8.248) |
|
|
|
Tax on Dividend |
(1.184) |
0.000 |
(1.401) |
|
|
BALANCE CARRIED
TO THE B/S |
387.297 |
281.354 |
269.301 |
|
|
|
|
|
|
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|
|
|
Earnings Per
Share (Rs.) |
8.01 |
0.84 |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.59
|
0.17 |
2.08 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.46
|
0.33 |
3.65 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.54
|
1.47 |
12.45 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.05 |
0.52 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.62
|
2.53 |
3.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.78
|
2.31 |
1.71 |
LOCAL AGENCY FURTHER INFORMATION
NOTE :
The registered office address of the company has been shifted from 27, 2nd
Floor, CSI Compound mission Road, Bangalore – 560027, Karnataka, India to
present w.e.f. 01.09.2006
BUSINESS
PERFORMANCE :
·
The Company sold about 25% more tonnage as compared
to F.Y. 2008-09
·
SPIL sold
137814 tons of Steel Pipes and Tubes as against 118300 tons in the previous
year, 16186 tons of steel as against 14740 tons in the previous year and Rs.
208.500 millions of PVC and other products as against 124.500 millions in the
previous year.
·
The factory at
Hyderabad produced 10697 tons of tubes
for the year as against 4550 in the previous year.
·
The company
has 25 branches and 28 retail counters.
·
SPIL today was
about 0.330 millions Sq ft and leases about 0.200 millions Sft space for its
warehouse and retailing operations.
·
Logistics Is a
vital and integral part of the business and the company has organized this
fact. They now own a fleet of 33 trucks to augment their delivery system.
FUTURE OUTLOOK
As a nation they
are just beginning to Focus on Infrastructure, be it roads; power,
airports, seaports, mass rapid transport etc..
The healthy GDP of
FY 09-10 and an even better outlook for the coming year Will only put more
money in the hands of the consumer which means more automobiles. FMCG goods
etc. are sold.
All this augurs well
for the company. The demand for steel tubes and steel and allied products only
increase. Every area of the economy uses steel and allied products.
1.
The company will resume it focus on increasing its
presence in more geographies. Therefore, we propose
to continue our retail expansion as well as explore
new territories for distribution.
2.
SPIL is also
very bullish on the manufacturing front and is exploring avenues of growth both organically and inorganically
3.
The company
looks to rapidly expand its volumes in distribution through steel products
apart from tubes.
FUTURE PERFORMANCE
:
The company’s sales in terms of volume grew by over 25% over the
previous year. There was substantial growth in the profits as compared to the
previous year. PBIT doubled over the previous year.
Form 8
|
Corporate
identity number of the company |
U26922KA1995PLC018990 |
|
Name of the
company |
SHANKARA
INFRASTRUCTURE MATERIALS LIMITED |
|
Address of the
registered office or of the principal place of business in |
G-2 Farah
Winsford, NO.133, Infantry Road, Bangalore Karnataka INDIA 560001 |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book debts Movable property
(not being pledge) Floating charge |
|
Particular of
charge holder |
IDBI Bank
Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra,
INDIA |
|
Nature of
instrument creating charge |
Supplemental Deed
of Hypothecation executed on April 18, 2011 by the company in favour of IDBI
Bank Limited. |
|
Date of
instrument Creating the charge |
18.04.2011 |
|
Amount secured by
the charge |
Rs. 550.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest CC: IDBI Bank Base
Rate plus 275 bps subject to a minimum of 11.50% p.a. payable monthly;
WCDL/VBD/LCBD :To be decided at the time of drawdown. Terms of repayment CC: On demand;
STL/VBD: Repayable on Due date; LCBD: Payment on due date. Margin CC: 25% on stocks
and Receivables (Receivables upto 120 days) Extent and operation of the charge Charge extends by
way of pari-passu charge on all the current assets throughout the period of
sanctioned limits and more particularly described in Annexure attached
hereto. Other NA |
|
Short particulars
of the property charged (Including location of the property) |
1.
Pari
-passu charge on Borrower's entire stocks of raw materials, semi finished
goods and finished goods, consumables, stores and spares, book debts, bills, outstanding
monies, receivables, 2.
Movable plant and
machineries, machinery spares, tools and accessories etc., both present and
future, situated at the factory/ warehouse located at Bangalore, Hubli,
Mangalore, Pune, Mumbai, Secunderabad 3.
Vizag, Vijayawada, Kakinada,
Bhuwaneshwar, Chennai, Salem, Coimbatore, Hosur, Kochi, Calicut, Trissur,
Alappuzha, Goa, Ahemdabad, Bellary, Davanagere, Dharwad, Shimoga, Kolar or 4.
Wherever else the same may be or be held by any
party to the order or disposition of the Borrower. |
|
Date of
instrument modifying the charge |
25.02.2010 |
|
Particulars of
the present modification |
IDBI's Working
capital Limits enhanced from Rs.400.000 Millions to Rs.550.000 millions. All
other terms, conditions and existing securities to continue for the overall
enhanced limit of Rs.550.000 millions. |
FIXED ASSETS :
·
Land And Development
·
Building
·
Vehicles
·
Plant and
Machinery
·
Furniture and
Fixtures
·
Office
Equipments
·
Computers
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. 44.94 |
|
|
1 |
Rs. 73.46 |
|
Euro |
1 |
Rs. 64.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
50 |
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.