MIRA
INFORM REPORT
|
Report Date : |
22.06.2011 |
IDENTIFICATION DETAILS
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Name : |
VENKATESWARA WIRES PRIVATE LIMITED |
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Registered
Office : |
302 Navjeevan Chamber, Vinoba Marg, RG, C-Scheme, Jaipur – 302 001,
Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
16.05.1988 |
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Com. Reg. No.: |
17-004446 |
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Capital
Investment / Paid-up Capital : |
Rs.5.758 millions |
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CIN No.: [Company Identification
No.] |
U31300RJ1988PTC004446 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JPRV02011C |
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PAN No.: [Permanent Account No.] |
AAACV5085F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Trader of all Kinds of Wires, Cables, Conductors,
etc. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (46) |
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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 540000 |
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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 reported as 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
|
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
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Registered Office : |
302 Navjeevan Chamber, Vinoba Marg, RG, C-Scheme, Jaipur – 302 001, |
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Tel. No.: |
91-141-2371394 / 5107094 / 2330078 |
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Fax No.: |
91-141-2366854 |
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E-Mail : |
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Website : |
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Factory : |
116(A-1), Road No. 8, Vki Area, |
DIRECTORS
As on 29.06.2010
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Name : |
Mr. Rohit Saboo |
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Designation : |
Director |
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Address : |
14-A, Sangram Colony, C-Scheme, Jaipur-302001, |
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Date of Birth/Age : |
01.02.1967 |
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Date of Appointment : |
16.05.1988 |
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DIN No.: |
00086846 |
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Name : |
Mr. Abhay Kumar Bohra |
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Designation : |
Director |
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Address : |
C-128, Malviya Nagar, Jaipur-302017, |
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Date of Birth/Age : |
12.01.1948 |
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Date of Appointment : |
21.04.1998 |
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DIN No.: |
00420120 |
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Name : |
Mr. Sanjay Saboo |
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Designation : |
Director |
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Address : |
14, Ashok Niwas, Mahaveer Marg, C-Scheme, Jaipur-302001 , |
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Date of Birth/Age : |
29.11.1960 |
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Date of Appointment : |
16.05.1988 |
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DIN No.: |
00633771 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 29.06.2010
|
Names of Shareholders |
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No. of Shares |
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Sanjay Saboo S/o M. L. Saboo |
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24210 |
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Rohit Saboo S/o M. L. Saboo |
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3300 |
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M. L. Saboo (HUF) |
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3200 |
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Seema Saboo W/o Sanjay Saboo |
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4665 |
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Shashi Kanta Saboo W/o M. L. Saboo |
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10435 |
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Abhinav Saboo S/o Sanjay Saboo |
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1550 |
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Siddarth Saboo S/o Sanjay Saboo |
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1786 |
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Shanu Saboo W/o Rohit Saboo |
|
850 |
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Anita Biyani W/o C K Biyani |
|
425 |
As on 29.06.2010
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Equity Share Breakup |
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Percentage of Holding |
|
Category |
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Bodies
corporate |
|
12.35 |
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Directors
or relatives of directors |
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87.60 |
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Other
top fifty shareholders |
|
0.05 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Trader of all Kinds of Wires, Cables, Conductors, etc. |
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Products : |
· Aerial Bunched Cables ·
ACSR Conductors ·
AAA Conductors ·
AA Conductors
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PRODUCTION STATUS AS ON 31.03.2010
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Particulars |
Unit |
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Installed
Capacity |
40000 K.M. |
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Actual
Production AAC, ACSR, AAAC, Multistrand Conductor and XLPE Cable |
36198290 K.M. |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
ICICI Bank Limited Road No. 5, VKIA, Jaipur – 302 013, ·
The Bank of Rajasthan Limited V K I Area Branch, Road No. 5, Jaipur –
302 013, |
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Facilities : |
Notes : 1.
Cash credit, book debt, and Adhoc limits from
Bank of Rajasthan are secured against hypothecation of raw materials, goods
in process, finished goods of conductor and personally guaranteed by two
directors of company and repayable on demand. 2.
Term loan from Bank of Rajasthan for wind power
project is secured against the equitable mortgage of Land and Building and
hypothecation of New Plant and Machinery and other Fixed Assets of Wind Power
Mill situated at, Jaiselmer District of Rajasthan, Dhalgaon district of
Sangli and Barmer district of Rajasthan. 3.
Loan from ICICI Bank for channel Financing for
supplies of BALCO is secured against hypothecation of material in transit. 4.
Vehicle Loan from ICICI Bank secured against
hypothecation of vehicle. 5.
Term Loan from Bank of Rajasthan has been taken
against hypothecation of Plant and Machinery. 6.
Short Term Loan From Bank of Rajasthan is secured
against the equitable mortgage of Land and Building of M/s Royal Concab
Private Limited (Associated concern) situated at Plot No. 55, Road No. 5,
VKIA, Jaipur. 7.
All existing and future fixed assets of company
are mortgaged to Bank of Rajasthan Limited by way of first charge to secure the credit facilities
extended by the bank.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
H S Darda and Company Chartered Accountant |
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Address : |
36-A, Suraj Nagar East, Civil Lines, Jaipur – 302 006, |
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Associates/Subsidiaries : |
·
MLS Export and Trading Private Limited ·
Moonlight Investment and Trading Limited ·
Venkateshwar Trading and Investment Private
Limited ·
Adinath Electricals Private Limited ·
Royal Concab Private Limited ·
Shubh Sumangal Private Limited |
CAPITAL STRUCTURE
As on 29.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
75000 |
Equity Shares |
Rs.100/- each |
Rs.7.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
57575 |
Equity Shares |
Rs.100/- each |
Rs.5.758
millions |
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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1] Share Capital |
5.758 |
5.483 |
5.483 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
128.146 |
98.420 |
74.943 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
133.904 |
103.903 |
80.426 |
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LOAN FUNDS |
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1] Secured Loans |
184.031 |
180.584 |
134.646 |
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2] Unsecured Loans |
26.981 |
36.807 |
19.011 |
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TOTAL BORROWING |
211.012 |
217.391 |
153.657 |
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DEFERRED TAX LIABILITIES |
21.362 |
21.362 |
20.538 |
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TOTAL |
366.278 |
342.656 |
254.621 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
121.195 |
89.495 |
90.304 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.945 |
0.945 |
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 |
28.702
|
36.079 |
49.583 |
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Sundry Debtors |
271.360
|
267.022 |
164.664 |
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Cash & Bank Balances |
33.175
|
26.002 |
13.549 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
27.761
|
22.454 |
22.024 |
|
Total
Current Assets |
360.998
|
351.557 |
249.820 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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Sundry Creditors |
17.813
|
14.170 |
4.816 |
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Other Current Liabilities |
94.929
|
78.812 |
72.037 |
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Provisions |
5.159
|
6.440 |
8.772 |
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Total
Current Liabilities |
117.901
|
99.422 |
85.625 |
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Net Current Assets |
243.097
|
252.135 |
164.195 |
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PRELIMINARY EXPENSES |
0.041 |
0.081 |
0.122 |
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TOTAL |
366.278 |
342.656 |
254.621 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Net Sales |
1036.266 (Turnover) |
895.794 |
905.874 |
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Sales (Wind Mill Power Project) |
NA |
6.536 |
4.865 |
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Other Income |
NA |
1.399 |
1.448 |
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TOTAL (A) |
NA |
903.729 |
912.187 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, Administration, Selling and Other
Expenses |
NA |
805.345 |
868.619 |
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|
|
Increase/(Decrease) in Finished Goods |
NA |
29.138 |
(27.072) |
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|
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Preliminary Expenses |
NA |
0.041 |
0.041 |
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|
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TOTAL (B) |
NA |
834.524 |
841.588 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
NA |
69.205 |
70.599 |
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Less |
FINANCE CHARGES (D) |
NA |
33.395 |
25.631 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
37.810 |
35.810 |
44.968 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.867 |
4.643 |
4.052 |
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PROFIT BEFORE
TAX (E-F) (G) |
31.943 |
31.167 |
40.916 |
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Less |
TAX (H) |
5.500 |
5.938 |
15.579 |
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PROFIT AFTER TAX
(G-H) (I) |
26.443 |
25.229 |
25.337 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
61.589 |
49.132 |
35.720 |
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|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend including Dividend Tax |
1.924 |
1.924 |
1.924 |
|
|
|
Transfer to General Reserve |
2.500 |
10.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
83.608 |
62.437 |
49.133 |
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Earnings Per
Share (Rs.) |
459.27 |
460.18 |
462.14 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
NA
|
2.79 |
2.78 |
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
3.08
|
3.48 |
4.52 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.62
|
7.07 |
12.03 |
|
|
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.30 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.46
|
3.05 |
2.98 |
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|
|
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|
Current Ratio (Current Asset/Current Liability) |
|
3.06
|
3.54 |
2.92 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE AND
BUSINESS
The company attained a sales turnover of Rs.1036.266 millions (including
Wind Power project sale of electricity of Rs.14.192 millions) against a
turnover of Rs.1004.888 millions (including Wind Power project sale of
electricity of Rs.6.536 millions) in the financial year 2009-10.
CONTINGENT
LIABILITIES WERE AS FOLLOWS
|
Particulars |
As
on 31.03.2010 Rs.
in millions |
|
GSBP Liability |
76.587 |
|
B/G Limit |
140.639 |
|
Total |
217.226 |
Form No. 8
|
This form is for |
Modification of charge |
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Charge
identification number of the modified |
90074424 |
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Corporate
identity number of the company |
U31300RJ1988PTC004446 |
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Name of the
company |
VENKATESHWARA WIRES PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
Address : 302, Navjeevan Chamber, Vinoba Marg,RG C-Scheme, Jaipur –
302001, Email : venwire@yahoo.com |
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Type of charge |
Immovable property Book debts Movable property (not being pledge) Others |
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Particular of
charge holder |
THE BANK OF
RAJASTHAN LIMITED Address : VKI Area Branch, Road No.5, Jaipur – 302013, Email : vkiajaipur@rajbank.com |
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Nature of description
of the instrument creating or modifying the charge |
1. Agreement For Hypothecation of Book Debts 2. Hypothecation of Goods To Secure A Demand
Cash Credit 3. General Letter of Hypothecation For
Inland/Foreign Bills Purchased And For Advances Against Bills In Course Of
Collection 4. Agreement of Hypothecation of Machinery
And Goods. 5. Letter of Continuity (Two) 6. Letter Of Guarantee by Royal Concab
Private Limited. |
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Date of
instrument Creating the charge |
24.09.2009 |
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Amount secured by
the charge |
Rs. 300.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: Interest:@ 3.00%
below BPLR with a minimum of 12.00% p.a. with monthly rests, subject to
change from time to time. Terms of
Repayment : Repayable on
Demand. Margin : Margin on LC
(DA/DP)/LG :10% Extent and
Operation of the charge The Charge will
operate as a first charge to the extent of Rs. 3000 lacs to secure the
follow. limit:( Millions) CCH(St/BD)/Docy
Bills/WAUE Rs.100.000 Millions.
|
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Short particulars
of the property charged |
i.
First
Charge by way of Hypothecation of All Stocks of Raw Materials, Semi-Finished
And Finished Goods of AAC, ACSR, AAAC And Aerial Bunched Cable And Conductors
and Generation of Power Through Wind Mill, stock in transit, furniture &
fixtures
ii.
All
present & future book debts, all plant machinery and current and fixed
assets of the company.
iii.
EM by
way of first charge is extended on factory land & building constructed or
to be constructed fixed plant and machinery erected or to be erected
iv.
Situated
at Plot No.C-116 (A-1), Road No.8, V K I Area, Jaipur and Plot No.E-55, Road
No.4, Opposite SBBJ, VKIA, Jaipur,
v.
Corporate
guarantee is also extended by Royal Concab Private Limited of Rs.300.000
Millions in favour of BOR VKIA Area, Jaipur given to Venkateswara Wires
Private Limited. |
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Particulars of
the present modification |
By This modification existing
Overall limit enhanced from Rs.215.000 Millions to Rs.300.000 Millions
details as
|
FIXED
ASSETS :
·
Land
·
Building
·
Plant and Machinery
·
Testing Equipment
·
Electricity Installation
·
Vehicles
·
Furniture
·
Tubewell
·
Office Equipment
·
Computer
WEB DETAILS
Profile
Subject, a company incorporated on 1988 as
Private Limited. The company is headed by eminent and efficient Director Mr.
Sanjay Saboo who is professional expert in this field.
The
Company is engaged in manufacturing of high quality ACSR (Aluminum Conductor
Steel Reinforced), AAAC (All Aluminum Alloy Conductor), AAC (All Aluminum
Conductor) and LT Aerial Bunched cables. The unit is equipped to
manufacture multi strand conductor upto 61 strand, which are used in transmission
of electric power upto 400kv transmission lines. Strict and rigorous quality
control is maintained and conductors of various sizes as per Bureau of
Indian Standards (BIS) specifications or IEC/BS specifications ASTM or any
international standard are manufactured by the company.
Subject are produced with great
emphasis on uniformity and unmatched quality. To attain these
standards, they are subjected to rigorous quality and measurement
control system through Company's in-built inspection techniques right from the
initial stage of process reaching up to the final production.
While
the Company leaves no stones unturned in maintaining its grip over quality, it
is receptive to comments and valuable advice from its esteemed Customers so
that subject always retain their total acceptability.
The
aim is to produce quality products consistently. They plan to decentralize all
activities and make the employees quality conscious in whatever they do.
The
ultimate aim is to achieve the status of quality leader in the industry by
providing good products, excellent services and quick response to the
customer.
Company
is led by dynamic Person Chairman and Managing Directors Mr. Sanjay Saboo along
with qualified Mr. Rohit Saboo , Mr. A.K. Bohra Director (Technical) and
supported by a team of technical experts. Through Product quality and
customer satisfaction the company has achieved a top position in leading
manufactures of ACSR/AAC/AAAC Conductors.
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.44.91 |
|
|
1 |
Rs.72.90 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.