MIRA
INFORM REPORT
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Report Date : |
09.05.2011 |
IDENTIFICATION DETAILS
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Name : |
MEHALA MACHINES INDIA LIMITED w.e.f
26.05.2009 |
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Formerly Known As : |
SANMARCO TEXMAC PRIVATE LIMITED |
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Registered Office : |
36, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
30.05.1996 |
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Com. Reg. No.: |
181-7229 |
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Paid-up Capital : |
Rs.300.664 millions |
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CIN No.: [Company
Identification No.] |
U29269TZ1996PTC007229 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CMBM04219F |
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PAN No.: [Permanent Account No.] |
AABCM4724H |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Worsted Ring Frame, Textile Machinery Components and Machinery Components. |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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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 1500000 |
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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. There appears
some accumulated losses recorded by the company. However trade relations are reported
as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution. |
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 DENIED BY
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Name : |
Mr. Jaychandan |
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Designation : |
Accounts Officer |
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Contact No.: |
91-421-4306333 |
LOCATIONS
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Registered Office : |
36, |
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E-Mail : |
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Website: |
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Factory : |
5/43B, |
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Tel. No.: |
91-421-2332545/2332880 |
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Fax No.: |
91-421-2332580 |
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Factory : |
4/186, Kasigoundenpudur, Kalangal (PO), Sulur Via – 641402,
Coimbatore, Tamilnadu, India |
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Branches : |
Located at:
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DIRECTORS
As On 30.09.2009
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Name : |
Mr. R. Anand |
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Designation : |
Director |
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Address : |
No.1, 15th Floor, |
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Date of Birth/Age : |
05.11.1933 |
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Date of Appointment : |
30.05.1996 |
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Date of Cessation : |
13.02.2009 |
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DIN No. : |
00040325 |
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Name : |
Mr. C. Subramaniam |
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Designation : |
Director |
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Address : |
No.1, |
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Date of Birth/Age : |
10.05.1951 |
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Date of Appointment : |
04.07.2007 |
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DIN No. : |
01283143 |
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Name : |
Mr. S. Carthic |
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Designation : |
Director |
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Address : |
No.1, |
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Date of Birth/Age : |
17.08.1978 |
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Date of Appointment : |
04.07.2007 |
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DIN No. : |
00584017 |
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Name : |
Mr. S. Dharani |
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Designation : |
Director |
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Address : |
No.1, |
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Date of Birth/Age : |
07.03.1980 |
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Date of Appointment : |
04.07.2007 |
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DIN No. : |
00513917 |
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Name : |
Mr. S. Bharath |
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Designation : |
Director |
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Address : |
No.16/ 39, |
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Date of Birth/Age : |
04.07.1984 |
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Date of Appointment : |
04.07.2007 |
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DIN No. : |
00488510 |
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Name : |
Mr. C.V. Ramkumar |
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Designation : |
Director |
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Address : |
S.F.No.19, V.T.S. Nagar, Nambialaganpalayam, |
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Date of Birth/Age : |
12.01.1952 |
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Date of Appointment : |
19.01.2007 |
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Name : |
Mr. |
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Designation : |
Director |
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Address : |
19, V.T.S Nagar, Nambialaganpalayam, |
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Date of Birth/Age : |
12.01.1952 |
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Date of Appointment : |
17.05.2007 |
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DIN No. : |
01282253 |
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Name : |
Mr. Ramasamy Selvan |
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Designation : |
Director |
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DIN No. : |
00209033 |
KEY EXECUTIVES
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Name : |
Mr. T.P. Nagarajan |
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Designation : |
Company Secretary |
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Address : |
Plot No.31, (Door No.15), Balaji Nagar, |
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Date of Birth/Age : |
15.12.1930 |
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Date of Appointment : |
18.05.2007 |
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Name : |
Mr. Jaychandan |
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Designation : |
Accounts Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2009
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Names of Shareholders |
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No. of Shares |
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Eastern Engineering Company – |
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200020 |
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C Subramaniam |
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24104426 |
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Total |
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24304446 |
As on 30.09.2009
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List of Allottees |
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No. of Shares |
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C Subramaniam |
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4724264 |
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346296 |
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230480 |
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R Selvam |
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57620 |
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M Deivasahayam |
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28810 |
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N P Elango |
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28810 |
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V P Shriyan |
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28810 |
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230480 |
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Chandrasekar |
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28810 |
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A Parvathavarthini |
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57620 |
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Total |
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5762000 |
As On 30.09.2009
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
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100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Worsted Ring Frame, Textile Machinery Components and Machinery Components. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Facilities: |
Note:
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Radha Ganesh and Company Chartered Accountants |
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Address : |
19, |
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Pan No. : |
ACHPG4974A |
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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31000000 |
Equity Shares |
Rs.10/- each |
Rs.310.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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30066446 |
Equity Shares |
Rs.10/- each
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Rs.300.664
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 |
300.664 |
243.044 |
243.044 |
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2] Share Application Money |
0.000 |
57.620 |
57.620 |
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3] Reserves & Surplus |
128.055 |
134.309 |
140.562 |
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4] (Accumulated Losses) |
(43.606) |
(81.468) |
(113.779) |
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NETWORTH |
385.113 |
353.505 |
327.447 |
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LOAN FUNDS |
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1] Secured Loans |
144.551 |
158.377 |
161.953 |
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2] Unsecured Loans |
42.218 |
47.666 |
38.306 |
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TOTAL BORROWING |
186.769 |
206.043 |
200.259 |
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DEFERRED TAX LIABILITIES |
3.143 |
2.420 |
2.003 |
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TOTAL |
575.025 |
561.968 |
529.709 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
246.171 |
257.676 |
266.644 |
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Capital work-in-progress |
0.000 |
1.199 |
0.922 |
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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 |
145.285
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140.558 |
139.936 |
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Sundry Debtors |
157.521
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152.633 |
117.661 |
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Cash & Bank Balances |
15.320
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18.004 |
24.207 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
100.250
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101.299 |
176.486 |
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Total
Current Assets |
418.376
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412.494 |
458.290 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
44.700
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63.465 |
158.740 |
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Current Liabilities |
42.770
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41.376 |
33.688 |
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Provisions |
2.052
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4.560 |
3.719 |
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Total
Current Liabilities |
89.522
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109.401 |
196.147 |
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Net Current Assets |
328.854
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303.093 |
262.143 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
575.025 |
561.968 |
529.709 |
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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 |
572.462 |
590.377 |
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Other Income |
59.281 |
40.656 |
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TOTAL (A) |
631.743 |
631.033 |
554.922 |
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Less |
EXPENSES |
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Cost of material |
462.549 |
456.712 |
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Power and fuel |
2.722 |
3.880 |
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Remuneration and other benefits to employee |
45.681 |
48.307 |
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Administrative and selling expenses |
45.997 |
50.886 |
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Other manufacturing expenses |
6.887 |
4.737 |
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incra |
(1.634) |
0.698 |
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TOTAL (B) |
562.202 |
565.220 |
503.997 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
69.541 |
65.813 |
50.925 |
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Less |
FINANCIAL
EXPENSES (D) |
22.415 |
23.754 |
10.659 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
47.126 |
42.059 |
40.266 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
8.541 |
8.490 |
12.621 |
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PROFIT BEFORE TAX
(E-F) (G) |
38.585 |
33.569 |
27.645 |
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Less |
TAX (I) |
0.723 |
1.258 |
(1.540) |
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PROFIT AFTER TAX
(G-I) (J) |
37.862 |
32.311 |
29.185 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(81.468) |
(113.779) |
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BALANCE CARRIED
TO THE B/S |
(43.606) |
(81.468) |
NA |
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Earnings Per
Share (Rs.) |
1.26 |
1.19 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
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PAT / Total Income |
(%) |
5.99
|
5.12 |
5.26 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.74
|
5.69 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.81
|
5.01 |
3.81 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.09 |
0.08 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.72
|
0.89 |
1.21 |
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Current Ratio (Current Asset/Current Liability) |
|
4.67
|
3.77 |
2.34 |
LOCAL AGENCY FURTHER INFORMATION
Note
As confirmed by Mr. Jaychandran (Accounts Officer) Mehala Machines India
Limited (003374) has been amalgamated with Sanmarco Texmac Private Limited in
the financial year 2006-07. In 2009, the name of the said company is changed to
Mehala Machines India Limited (007229).
Fixed Assets:
- Land
- Building
- Plant and
machinery
- Furniture and
fittings
- Vehicle
FINANCIAL
PERFORMANCE REVIEW:
During the year, the company could achieve a turnover of Rs. 631.700
millions (previous year Rs. 631.000 millions) and the working has resulted in a
net profit of Rs. 38.500 millions. In view of carried forward deprecation and
allowances available to the company provision for taxation has not been made.
The directors are hopeful of better and improved performance during the year
under progress.
SHARE CAPITAL:
The company has increased the authorized capital from Rs. 260.000
millions to Rs. 310.000 millions in April 2009 in view of the requirement for
allotment of equity shares of the company to the shareholders of amalgamating
the company. Necessary statutory compliance in this records had been done by
the company.
AS PER WEB SITE
DETAILS
HISTORY
From a humble beginning as a proprietary firm Mehala has risen steadily
to become a group of companies of repute. With its phenomenal growth as a total
solution provider to the garment industry, Mehala today can boast of being a
force to reckon with.
1974 Mehala Machinery
Mart, a proprietary firm, is started by Mr. C. Subramaniam. The firm begins its
operations by dealing in indigenously manufactured machines suitable for the
hosiery industry.
1979 Mehala
Industries, a manufacturer of sewing accessories, is established.
1988 Mehala Machine
Manufacturing Company is started to cater to the supplementary machinery needs
of the local hosiery industry.
1989 Mehala and
Company enters into international trading. The company begins importing and
distributing industrial sewing products. Brands include Siruba, Kansai Special,
Sunstar, KM, etc.
1991 Mehala Machine
Works, Private Limited is incorporated. A modern factory is set up in
1992 Mehala Sales
Corporation is set up to meet the market’s requirements of all types of spare
parts for the industrial and domestic sewing machines.
1995 Mehala comes up
with its first modern spinning mill in Gobichettipalayam.
1996 Mr. Subramaniam
receives the prestigious Udyog Jyothi award of the CII.
1997 Mehala Machine
Works Private Limited becomes a Public Limited Company. It is now the flagship
company who looks after the international trading activities of the group.
1999 Mehala Machines
becomes the best performer in the world for the sales of Siruba sewing machines
which led to Mehala being conferred the distributor rights in
2000 The total number
of branches increases to 10, including those started in
2002
Mehala
shifts headquarters to a new office in Tirupur. Enters into the sales and
service of automatic cutting-room solutions Investronica. Mehala starts dealing
in high quality finishing equipment from the house of Weishi.
2004 Mehala Delhi
shifts to a new regional headquarters. The second modern spinning mill is put
up, also at Gobichettipalayam. Mehala starts its own foundry in
2005 Energy efficient
motors (E-motors) with copper die cast rotor developed by Mehala. It’s the
first of its kind in
Mehala acquires another spinning mill in Dindigul and successfully brings it
out of the BIFR purview.
In December, Mehala acquires new premises and commences work on putting up a
modern foundry in Thekkalur.
2006 Many more new
branches come up in
Mehala sets up Dharani Wind Energy Private Limited for captive power generation
with a capacity of 10.5 MW in Kanyakumari, of which 50% of the generation is
sold to the State Electricity Board. 21 wind turbines, each of this with a
capacity of 500 KW has been installed for this purpose.
2007 Subject and
Mehala Sales Corporation are conferred ISO 9001:2000 recognition. There by
Mehala becomes the only PAN India Garment machinery distributor with ISO
9001:2000 certification.
Mehala acquires Sanmarco Texmac Private Limited, a modern textile machinery
manufacturing unit designed, built, owned and operated by
2008 New Foundry at
Thekalur is installed, commissioned and fully operational with capacity of 200
tonnes and an expansion possibility of up to 1000 tonnes per month. Mehala is
conferred agency of BESTA machines.
2009 Mehala Medical Centre is started to provide medical
care to Tirupur population. Mehala is conferred agency for MACPI range of
finishing equipments and AMP PISSANI machines.
2010 Mehala becomes sole distributor
PROFILE:
From a humble beginning as a proprietary firm Mehala has risen steadily
to become a group of companies of repute. Mr. C.Subramaniam, an enterprising
entrepreneur and a visionary, founded the Mehala Group in the year 1974.
‘Subject’ is a “Total Solution Provider” to Indian Apparel Industry.
There product ranges from automatic CAD/CAM cutting machines, Sewing machines,
Unit production systems, Embroidery machines, Complete Range of Finishing
Equipments, Packing machines, Material handling systems, Factory
Ventilation/Cooling System and so on...
They represent some of the Leading Brands in the Market like
Siruba(Taiwan), DUERKOPP ADLER(Germany), Topcut-Bullmer (Germany), INA
Systems(Singapore/Canada), Macpi (Italy), Damei (China), KM (Japan), Orbito
(Singapore), Human Solutions (Germany), Assyst (Germany), AMP Pisani (Italy),
Nhega (USA), Besta (Korea), Schips (Switzerland), LKM knitting machine(Taiwan),
Rimac (Italy), YUHO (Japan) and many more. They are also diversifying into
solutions for the Leather, composites, technical textiles and automotive
Industry.
There operations are spread over the country with 19 branches which
shows there vast support to the market. Mehala has been in the market for more
than 35 years. They have further spread there wings with operations in
The group has got its allied businesses like Spinning Mills, Wind energy
generation, Foundry, and Modern machine-shop for textile components, motor
manufacturing, computerized embroidery machine assembly etc,
and there group sales turnover is around USD 100 million per annum. Mehala
Machines is also Engineering Company with production of many indigenous
products for the Textile Industry.
They have also diversified into Industrial grade energy efficient copper
diecast rotor motors, which is unique. These Copper Diecast Rotor motors are CE and CSA Certified. They are
Mehala Machines is the largest marketer of industrial sewing machines in
The phenomenal growth of Mehala made them a force to reckon with. Mehala
believes not only in selling products but also in building a long term
relationship with its customers ensuring complete customer satisfaction.
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.44.78 |
|
|
1 |
Rs.73.42 |
|
Euro |
1 |
Rs.62.27 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.