MIRA INFORM REPORT

 

 

Report Date :

15.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SAGAR SPRINGS PRIVATE LIMITED

 

 

Registered Office :

104, Angan Towers, 1st Floor, Near Bhavans School, Makarpura Road, Vadodara – 390 004, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

24.08.1981

 

 

Com. Reg. No.:

04-004574

 

 

Capital Investment / Paid-up Capital :

Rs.2.500 Millions

 

 

CIN No.:

[Company Identification No.]

U31110GJ1981PTC004574

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BRDS01864C

 

 

PAN No.:

[Permanent Account No.]

AACCS5494F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Helical Coil Springs for Automotive Applications. 

 

 

No. of Employees :

200 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1613000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having good track record. There appears slight fall in the profitability during the current year.

 

However, general financial position of the company appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered for normal 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.

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DECLINED BY

 

Name :

Mr. Sagar Suryankant Shah

Designation :

Managing Director

Contact No.:

91-9824397531

Date :

14.12.2012

 

 

LOCATIONS

 

Registered Office :

104, Angan Towers, 1st Floor, Near Bhavans School, Makarpura Road, Vadodara – 390 004, Gujarat, India

Tel. No.:

Not Available

Mobile No.:

91-9824397531 (Mr. Sagar Shah)

Fax No.:

Not Available

E-Mail :

sagarsprings@satyam.net.in

kheradiaramesh@hotmail.com

sagarsprings@sify.com

Area :

2000 sq ft

Location :

Owned

 

 

Factory  :

Halol-Kalol Highway, Near Lucky Studio, Post Maghasar, Taluka Halol, District Panchmahals – 389 350, Gujarat, India

Tel. No.:

91-2676-223904/ 220061

Fax No.:

91-2676-223904

 

 

DIRECTORS

 

As on 27.09.2012

 

Name :

Mr. Sagar Suryankant Shah

Designation :

Managing Director

Address :

4, Manisha Bunglow, Productivity Road, Near Dodsal, Society, Akota, Vadodara – 390 020, Gujarat, India

Date of Appointment :

24.08.1981

DIN No.:

00219188

 

 

Name :

Mr. Suryankant Motichand Shah

Designation :

Managing Director

Address :

4, Manisha Bunglow, Productivity Road, Near Dodsal, Society, Akota, Vadodara – 390 020, Gujarat, India

Date of Appointment :

24.08.1981

DIN No.:

00219180

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 27.09.2012

 

Names of Shareholders

 

 

No. of Shares

Shah Suryakant Motichand

 

77500

Shah Suryakant Motichand HUF

 

32500

Shah Kantaben Suryakant

 

30000

Shah Sagar Suryakant

 

110000

TOTAL

 

250000

 

As on 27.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Helical Coil Springs for Automotive Applications. 

 

 

Products :

Coil Springs

 

 

PRODUCTION STATUS (AS ON 31.03.2012)

 

Particulars

Unit

Actual Production

 

Springs (Including D3)

Kgs.

13257570

 

 

GENERAL INFORMATION

 

No. of Employees :

200 (Approximately)

 

 

Bankers :

v  HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v  Bank of India, Race Course, Vadodara, Gujarat, India

v  Small Industries Development Bank of India, Land Mark Building, Race Course, Vadodara – 390 007, Gujarat, India

v  State Bank of India, Halol Main Branch, District Panchamahals, Halol – 389 350, Gujarat, India

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Viral K. Shah and Associates

Chartered Accountants 

Address :

104, Antrix Complex, Opposite World Trade Center, Sayajigunj, Vadodara – 390 005, Gujarat, India

Tel. No.:

91-265-6538866

Mobile No.:

91-9824362211

Income-tax PAN of auditor or auditor's firm :

AFGPS7070F

 

 

CAPITAL STRUCTURE


As on 27.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs.10/- each

Rs.2.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs.10/- each

Rs.2.500 Millions

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.500

2.500

2.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

400.864

367.064

322.941

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

403.364

369.564

325.441

LOAN FUNDS

 

 

 

1] Secured Loans

42.646

15.578

15.502

2] Unsecured Loans

 

40.087

32.285

TOTAL BORROWING

42.646

55.665

47.787

DEFERRED TAX LIABILITIES

6.988

6.717

4.904

 

 

 

 

TOTAL

452.998

431.946

378.132

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

92.732

80.968

53.607

Capital work-in-progress

0.000

0.000

0.307

 

 

 

 

INVESTMENT

6.389

7.630

6.954

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
34.718
24.694
23.727

 

Sundry Debtors
144.542
170.188
131.595

 

Cash & Bank Balances
52.420
128.036
147.688

 

Other Current Assets
23.454
0.000
0.000

 

Loans & Advances
128.005
92.633
79.472

Total Current Assets
383.139

415.551

382.482

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
16.972
14.522
27.077

 

Other Current Liabilities
9.790
 

 

 

Provisions
2.500
57.681
38.141

Total Current Liabilities
29.262

72.203

65.218

Net Current Assets
353.877
343.348
317.264

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

452.998

431.946

378.132

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations (Net)

354.949

366.988

275.328

 

 

Other Income

23.709

12.710

22.040

 

 

TOTAL                                     (A)

378.658

379.698

297.368

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Raw Material Consumed

222.244

233.239

177.537

 

 

Changes in Inventories of Finished Goods & Work-in-Progress and Scrap

0.814

(1.734)

4.475

 

 

Employees remuneration and benefits

12.176

8.396

8.232

 

 

Other Expenses

74.971

56.826

39.145

 

 

TOTAL                                     (B)

310.205

296.727

229.389

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

68.453

82.971

67.979

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

4.203

4.030

2.462

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

64.250

78.941

65.517

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

12.024

10.455

6.522

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

52.226

68.486

58.995

 

 

 

 

 

Less

TAX                                                                  (H)

15.521

21.438

19.234

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

36.705

47.048

39.761

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

256.557

217.139

184.269

 

 

 

 

 

Less

Short Provision for taxation

NA

0.010

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Proposed Dividend

NA

2.500

2.500

 

 

Tax on Proposed Dividend

NA

0.415

0.415

 

 

Transfer to General Reserve

NA

4.705

3.976

 

BALANCE CARRIED TO THE B/S

NA

256.557

217.139

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

74.871

76.985

33.626

 

 

Capital Goods

25.133

35.067

 

 

TOTAL IMPORTS

100.004

112.052

33.626

 

 

 

 

 

 

Earnings Per Share (Rs.)

146.82

188.19

159.05

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

9.69
12.39
13.37

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

14.71
18.66
21.43

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

10.97
13.79
13.53

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.13
0.19
0.18

 

 

 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 

0.18
0.35
0.35

 

 

 
 
 

Current Ratio

(Current Asset/Current Liability)

 

13.09
5.76
5.86

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

16.972

NA

NA

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

Yes

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

Yes

8) No. of employees

Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

No

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

No

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

No

 

 


Note:

The registered office of the company has been shifted from 104, Chandrakala Tower, 1st Floor, Indira Gandhi Marg, Near Bhavans School, Baroda – 390 004, Gujarat to the present address w.e.f. 01.03.2010.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U31110GJ1981PTC004574

Name of the company

SAGAR SPRINGS PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

104, Angan Towers, 1st Floor, Near Bhavans School Makarpura Orad, Vadodara – 390 004, Gujarat, India

E-Mail: kheradiaramesh@hotmail.com

This form is for

Creation of charge

Type of charge

Movable Property (not being pledge)

Floating Charge

Particular of charge holder

CIN No.: L65920MH1994PLC080618

HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

E-Mail: RBBform8@hdfcbank.com

Nature of description of the instrument creating or modifying the charge

Letter of Hypothecation.

Date of instrument Creating the charge

27.09.2012

Amount secured by the charge

Rs.60.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

Interest at the rate as may be communicated by the Bank from time to time.

 

Terms of Repayment:

Term Loan facility shall be repayable in suitable installments.

 

Margin:

As may be stipulated by the Bank from time to time.

 

Extent and Operation of the charge:

Hypothecation by way of First Charge on Plant and Machinery, Vehicles and other Fixed Assets purchased from Rs.60.000 millions term Loan to secure as a continuing security for the repayment of Rs.60.000 millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.

 

Others:

Nil

Short particulars of the property charged

The movable plant and machinery, vehicles and other fixed assets purchased from Rs.60.000 millions term Loan which may now or at any time hereafter belong to the Borrower.

 

FIXED ASSETS:

 

v  Air Conditioner

v  Air Ventilator

v  Business Assets

v  Computers

v  Electrical Installation

v  Factory Building

v  Fax Machine

v  Furniture and Fixtures

v  Land

v  Mobile

v  Office Equipment

v  Office Premises

v  Plant and Machinery

v  Vehicles

v  Windmill

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 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.54.39

UK Pound

1

Rs.87.78

Euro

1

Rs.71.29 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

 

54

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.