MIRA
INFORM REPORT
|
Report Date : |
07.05.2011 |
Note: The registered office of the company has been shifted from Plot No.E-4, MIDC Waluj Aurangabad-431 136, Maharashtra, India to the present address w.e.f. 01.05.2011
IDENTIFICATION DETAILS
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Name : |
VARROC ELASTOMERS PRIVATE LIMITED |
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Registered
Office : |
Plot No. M-191/2, MIDC Industrial Area, Waluj, Aurangabad-431 136, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
22.11.2005 |
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Com. Reg. No.: |
11-157474 |
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Capital
Investment / Paid-up Capital : |
Rs.9.500 Millions |
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CIN No.: [Company Identification
No.] |
U29190MH2005PTC157474 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer of Automotive Components. |
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No. of Employees
: |
120 (Approximately) |
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 140000 |
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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.
INFORMATION PARTED BY
|
Name : |
Mr. Srinath P. |
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Designation : |
Head of Operations |
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Contact No.: |
91-9673001600 |
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Date : |
06.05.2011 |
LOCATIONS
|
Registered Office : |
Plot No. M-191/2, MIDC Industrial Area, Waluj, Aurangabad-431 136, |
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Tel. No.: |
91-240-2552830/2556227 |
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Fax No.: |
91-240-2552832/2564540 |
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E-Mail : |
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Website : |
DIRECTORS
As on 23.08.2010
|
Name : |
Mr. Naresh Chandra |
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Designation : |
Director |
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Address : |
Bhagwati Bhavan, 31/B, M L Dahanukar Marg, Mumbai-400 026, |
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Date of Birth/Age : |
11.02.1935 |
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Date of Appointment : |
27.11.2005 |
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Name : |
Mr. Tarang Jain |
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Designation : |
Managing Director |
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Address : |
Gut No.41, (P), Opposite Walmi kanchanpadi, |
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Date of Birth/Age : |
21.03.1962 |
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Date of Appointment : |
7.11.2005 |
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Name : |
Mr. Swamy J Pothapragada |
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Designation : |
Managing Director |
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Address : |
302, Sreesha Apartments, 2-1, 420 Road No.4, Hyderabad-500 044, |
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Date of Birth/Age : |
29.05.1955 |
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Date of Appointment : |
27.11.2005 |
KEY EXECUTIVES
|
Name : |
Mr. Srinath P. |
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Designation : |
Head of Operations |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 23.08.2010
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Names of Shareholders |
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No. of Shares |
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Varroc Polymers Private Limited, |
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665000 |
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Sreedevi Pothapragada |
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95000 |
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Swarnalata Pothapragada |
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47500 |
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Srikant Pothapragada |
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47500 |
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Swamy Pothapragada |
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95000 |
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Total |
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950000 |
As on 23.08.2010
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Category |
Percentage |
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Bodies corporate |
70.00 |
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Directors or relatives of Directors |
30.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Automotive Components. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Rubber Moulded |
MT |
(1,150) |
(820) |
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Components |
MT |
1500 |
1393 |
GENERAL INFORMATION
|
Customers : |
·
Bajaj ·
Mahindra 2 Wheelers ·
Royal ·
Videocon ·
Larsen and Turbo ·
Videocon ·
Larsen and Turbro ·
Minda ·
Cofop ·
Endurance |
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No. of Employees : |
120 (Approximately) |
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Bankers : |
The Saraswat Co- Operative Bank, Plot No.X-23, MIDC Waluj,
Aurangabad,-431 136, |
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Facilities : |
Note 1 a) Term Loan
from Bank is secured by hypothecation of plant & machinery and tangible
movable assets of the Company, both present and future and equitable mortgage
of immovable properties of the Company situated at M-191/2 MIDC Industrial
Area, Waluj, b) Term loan
includes a Car loan secured against hypothecation of Car. c) Includes
Interest accrued and due Rs.5.100 millions (Previous Year Rs.Nil). [(Amount
repayable within one year Rs.6.135 millions) (Previous Year Rs. 4.185
millions)] Note 2 Secured by
hypothecation of stock-in-trade, book debts and equitable mortgage of
immovable properties of the Company situated at M-191/2 MIDC Industrial Area,
Waluj,
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Banking
Relations : |
- |
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Auditors : |
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Name : |
C. V. Chitale and Company Chartered Accountants |
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Address : |
3, Gurukrupa, Sathe Colony, 1317, Shukrawar Peth, Pune-411 002,
Maharashtra, |
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Holding Company: |
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Associates/Subsidiaries : |
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Companies with Common Control: |
·
Varroc Engineering Private Limited. ·
Bajaj Auto Limited ·
Bajaj Allianz General Insurance Company Limited ·
Endurance Systems ( ·
Endurance Technologies Private Limited ·
Endurance Magneti Marelli Shock Absorbers (I)
Private Limited ·
High Technology Transmission Systems (I) Private
limited |
CAPITAL STRUCTURE
As on 23.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- Each |
Rs.10.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
950000 |
Equity Shares |
Rs.10/- Each |
Rs.9.500
Millions |
Note : Out of the above
665,000 Equity Shares are held by Varroc Polymers Private Limited, the holding
company.
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 |
9.500 |
9.500 |
9.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
26.363 |
15.824 |
4.790 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
35.863 |
25.324 |
14.290 |
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LOAN FUNDS |
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1] Secured Loans |
18.884 |
18.380 |
22.459 |
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2] Unsecured Loans |
0.000 |
8.624 |
15.308 |
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TOTAL BORROWING |
18.884 |
27.004 |
37.767 |
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DEFERRED TAX LIABILITIES |
4.660 |
3.149 |
2.313 |
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TOTAL |
59.407 |
55.477 |
54.370 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
64.553 |
58.386 |
58.775 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.025 |
0.025 |
0.025 |
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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 |
8.338
|
7.327 |
8.944 |
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Sundry Debtors |
56.610
|
43.684 |
40.747 |
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Cash & Bank Balances |
1.151
|
1.247 |
0.111 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
4.080
|
2.243 |
3.173 |
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Total
Current Assets |
70.179
|
54.501 |
52.975 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Sundry Creditors |
65.704
|
53.517 |
54.439 |
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Other Current Liabilities |
3.193
|
2.338 |
2.008 |
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Provisions |
6.453
|
1.580 |
0.958 |
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Total
Current Liabilities |
75.350
|
57.435 |
57.405 |
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Net Current Assets |
(5.171)
|
(2.934) |
(4.430) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
59.407 |
55.477 |
54.370 |
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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 |
271.596 |
192.123 |
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Other Income |
0.408 |
0.676 |
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TOTAL (A) |
272.004 |
192.799 |
189.411 |
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Less |
EXPENSES |
|
|
|
|
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Material Costs |
167.439 |
113.909 |
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Selling, Administration and Expenses |
72.370 |
53.490 |
171.432 |
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TOTAL (B) |
239.809 |
167.399 |
171.432 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
32.195 |
25.400 |
17.979 |
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Less |
FINANCIAL
EXPENSES (D) |
2.086 |
3.424 |
4.136 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
30.109 |
21.976 |
13.843 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.932 |
5.279 |
3.424 |
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PROFIT BEFORE
TAX (E-F) (G) |
24.177 |
16.697 |
10.419 |
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Less |
TAX (H) |
8.098 |
5.664 |
4.302 |
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PROFIT AFTER TAX
(G-H) (I) |
16.079 |
11.033 |
6.117 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
15.823 |
4.790 |
(1.276) |
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Less |
APPROPRIATIONS |
|
|
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|
|
|
Transfer to General Reserve |
1.650 |
0.000 |
NA |
|
|
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Proposed Dividend |
4.750 |
0.000 |
NA |
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|
|
Tax on Proposed Dividend |
0.789 |
0.000 |
NA |
|
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BALANCE CARRIED
TO THE B/S |
24.713 |
15.823 |
4.790 |
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Earnings Per
Share (Rs.) |
16.93 |
11.61 |
6.44 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.91
|
5.72 |
3.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.90
|
8.69 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
17.94
|
14.80 |
5.47 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.67
|
0.66 |
0.73 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.10
|
3.33 |
6.66 |
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Current Ratio (Current Asset/Current Liability) |
|
0.93
|
0.95 |
0.92 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
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Total outstanding dues of Micro and Small Enterprises |
- |
- |
- |
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Total outstanding dues of creditors other than Micro and Small
Enterprises |
65.704
|
53.517 |
54.439 |
Trade Reference:
·
Larsen and Turbo Limited
·
Piaggio Vehicles Private Limited
PERFORMANCE
Prudent capex in
expansion of installed capacity, full utilization of installed capacity and
increased off take by customers resulted in 41% increase in Net Sales and Other
Income to Rs.272.000 millions, from Rs.192.800 millions. Increased sales and
simultaneous optimization of expenses resulted in increase in PBT by 45% to
Rs.24.200 millions from Rs.16.700 millions. PAT increased by 46% to Rs.16.100
millions from Rs.11.000 millions. Considering various factors that prevailed
during the year , the performance is termed as satisfactory.
The Company is
committed to the improvement of environment, safety, health and society and the
same has been incorporated in the Company’s Mission Statement and Quality
Policy. The Directors have pleasure in informing you that by way of reinforcing
its commitment, the Company has obtained ISO / TS 16949 Certification.
FUTURE OUTLOOK
As reported in the
previous year, the Company is focusing on strategies to tap Retail Market and
Export Market. There is significant progress on negotiations with Magneti
Mareli of
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U29190MH2005PTC157474 |
|
Name of the
company |
VARROC ELASTOMERS
PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Plot No. M-191/2, MIDC Industrial Area, Waluj, Aurangabad-431 136, |
|
This form is for |
Creation of
charge |
|
Type of charge |
Movable Property Immovable
Property |
|
Particular of
charge holder |
The Saraswat Co- Operative Bank, Plot No.X-23, MIDC Waluj,
Aurangabad,-431 136, |
|
Nature of
description of the instrument creating or modifying the charge |
Agreement of Hypothecation
of movable property and Supplementary Recording Letter evidencing deposit of
Title Deeds |
|
Date of
instrument Creating the charge |
14.03.2011 |
|
Amount secured by
the charge |
Rs.8.500 Millions
|
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest PLR-1.50%
p.a.=12% p.a. with monthly rates or
such other rates as may be prescribed in future by the bank from time to time. Terms of
Repayment 59 monthly
installments of Rs.0.142 million each Last installment
being 60th installment of Rs.0.122 million Margin As per bank rules Extent and
Operation of the charge The borrowers do
hereby hypothecate to & in favour of the bank all the tools, dies &
moulds, tangible movable property (both present & future ) belonging to
the borrower & lying and being at the borrowers place of business at Plot
No M-191/2,MIDC, Waluj, Aurangabad and Equitable Mortgage of Immovable
Properties of the Company located at M-191/2, MIDC, Waluj, Aurangabad. |
|
Short particulars
of the property charged |
The borrowers do
hereby hypothecate to & in favour of the bank all the tools & dies
& moulds ,tangible movable property (both present & future )
belonging to the borrowers & lying & being at the borrowers place of
business at Plot No M-191/2,MIDC, Waluj, Aurangabad and Equitable Mortgage of
Immovable Properties of the Company located at M-191/2, MIDC, Waluj,
Aurangabad. |
Fixed Assets:
·
Building
·
·
Plant and Machinery
·
Dies and Moulds
·
Factory Equipments
·
Electrical Installation
·
Electrical Fitting
·
Computers
·
Furniture and Fixtures
·
Office Equipments
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.44.57 |
|
|
1 |
Rs.73.58 |
|
Euro |
1 |
Rs.66.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
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.