MIRA INFORM REPORT

 

 

Report Date :

03.03.2012

 

IDENTIFICATION DETAILS

 

Name :

KALYANI THERMAL SYSTEMS LIMITED

 

 

Formerly Known As :

PUNE FURNAGES AND EQUIPMENTS COMPANY LIMITED

 

 

Registered Office :

72-76, Behind Siporex Mundhawa, Pune – 411036, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

01.02.1979

 

 

Com. Reg. No.:

11-020973

 

 

Capital Investment / Paid-up Capital :

Rs. 49.799 Millions

 

 

CIN No.:

[Company Identification No.]

U29141MH1979PLC020973

 

 

Legal Form :

A closely held public limited liability company.

 

 

Line of Business :

Subject is engaged in the business of manufacturer of steel forgings, supply, erection and commissioning of special purpose furnaces on turn-key basis and general engineering.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 2200000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

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 DECLINED BY

 

Name :

Mr. Jayant Patil

Designation :

Accounts Manger

Contact No.:

91-20-66215255

Date :

28.02.2012

 

 

LOCATIONS

 

Registered Office / Plant 1 :

72-76, Behind Siporex Mundhawa, Pune – 411036, Maharashtra, India

Tel. No.:

91-20-66441000/ 66215000

Fax No.:

91-20-66441009 / 66441034

Website :

www.kalyanithermal.com

 

 

Admin Office :

Corporate Building, Kalyani Carpenter Steel Limited, Mundhwa, Pune-411036, Maharashtra, India

 

 

Plant 2 :

P No. E. 84, MIDC Ranjangaon Industrial Estate, Village Karegaon, District Shirur, Pune – 412220, Maharashtra, India

Tel. No.:

91-2138-674000

Fax No.:

91-2138-674001

 

 

Plant 3:

Manesar Plant

Plot No.103, Sector 8, IMT, Manesar, Gurgaon – 122001, MIDC, Haryana, India

Tel. No.:

91-124-4679500

Fax no.:

91-124-4679518

e-mail :

ksajmani@ktsl.co.in

salim@ktsl.co.in

cyril@ktsl.co.in

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Charuchandra Ganesh Patankar

Designation :

Director

Address :

Sindh Coop Housing Society, Baner Road, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

06.06.1956

Date of Appointment :

07.12.1992

DIN No.:

07.12.1992

 

 

Name :

Mrs. Sunita B. Kalyani

Designation :

Whole Time Director

Address :

221, Amit Kalyani Nagar, Pune – 411006, Maharashtra, India

Date of Birth/Age :

18.04.1951

Date of Appointment :

01.04.1993

DIN No.:

00089496

 

 

Name :

Mr. Shriniwas Balwant Kanade

Designation :

Additional Director

Address :

20, Nityanand Housing Society, Dhankawdi, Pune-411043, Maharashtra, India

Date of Birth/Age :

04.03.1953

Date of Appointment :

28.02.2011

DIN No.:

00089063

 

 

Name :

Mr. Shivkumar Jayabasappa Tatti

Designation :

Director

Address :

G-11, Shirin Garden, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

15.07.1946

Date of Appointment :

10.03.2003

DIN No.:

02421231

 

 

Name :

Mr. Karamveersing S Ajmani

Designation :

Director

Address :

Flat No.106, Sonata Gera Harmony, Kalyani Nagar, Pune – 411006, Maharashtra, India

Date of Birth/Age :

16.10.1950

Date of Appointment :

01.04.2009

DIN No.:

02427523

 

 

Name :

Mr. Satish Sekhri

Designation :

Additional Director

Address :

R 6, Sacred Heart Town, Wanwari, Pune-411040, Maharashtra, India

Date of Birth/Age :

28.03.1950

Date of Appointment :

11.04.2011

DIN No.:

00211478

 

 

KEY EXECUTIVES

 

Name :

Mr. Jayant Patil

Designation :

Accounts Manger

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

No. of Shares

Peach Blossom Investment Private Limited, India

947159

Hibiscus Investment and Finance Limited, India

931507

Yokoha Investment Private Limited, India

934206

Rosario Investment Private Limited, India

929586

S. B. Kalyani

103200

A. B. Kalyani

10200

B.N. Kalyani

3200

Ashokkumar Kheny

2000

Sadguru Investment and trading company, India

475000

Sundaram trading and investment Private Limited, India

641666

Total

4977724

 

AS ON 30.09.2011

 

Equity Shares Break Up

Percentage

Bodies corporate

97.63

Directors or relatives of Directors

2.37

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of manufacturer of steel forgings, supply, erection and commissioning of special purpose furnaces on turn-key basis and general engineering.

 

 

Products :

ITC CODE

PRODUCT

72249009

Alloy forgings

85143009

Electrical Furnaces

--

Engineering Services

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Actual Production

 

 

 

Forgings

MTS

17534.37

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Bank of Baroda, Corporate Financial Services Branch, Mantri Court Ambedkar Road, Pune – 411001, Maharashtra, India

·         Citi Bank N A, 2413, Kumar Capital, East Street, Pune-411001, Maharashtra, India

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Rupee term loans secured

 

 

Rupee term loans banks secured

596.379

822.577

Working capital loans secured

 

 

Working capital loans banks secured

440.376

474.663

Total

1036.755

1297.240

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Deferred sales tax loan unsecured

10.416

11.195

Other debt unsecured

195.185

80.185

 

 

 

Total

205.601

91.380

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. B. Sabne

Chartered Accountants

Address :

1, Vasant Apartment, Off Prabhat Road, Erandawana, Pune – 411004, Maharashtra, India

Tel. No.:

91-20-25435388 / 25423302

E-Mail :

sbsabne@gmail.com

 

 

Joint Ventures :

Hirschvogel Kalyani India Private Limtied

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity Shares

Rs.10/- each

Rs. 50.000 Millions

 

 

 

 

 

Issued, Subscribed Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

4982124

Equity Shares

Rs.10/- each

Rs. 49.821 Millions

 

 

 

 

 

Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

4977724

Equity Shares

Rs.10/- each

Rs. 49.777 Millions

 

Forfeited Shares

 

Rs. 0.022 Million

 

Total  ON 31.03.2011istics.com  Steel Limited, Mundhwa, pune-411036a a, Idnia

 

Rs. 49.799 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

49.799

49.799

49.798

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

513.029

480.676

418.878

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

562.828

530.475

468.678

LOAN FUNDS

 

 

 

1] Secured Loans

1036.755

1297.240

1099.630

2] Unsecured Loans

205.601

91.380

61.123

TOTAL BORROWING

1242.356

1388.620

1160.753

DEFERRED TAX LIABILITIES

91.798

57.133

37.620

 

 

 

 

TOTAL

1896.982

1976.228

1667.051

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1377.287

1316.034

872.920

Capital work-in-progress

0.025

125.023

503.361

 

 

 

 

INVESTMENT

117.877

5.486

5.252

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

505.691

417.930

255.682

 

Sundry Debtors

459.961

316.457

326.400

 

Cash & Bank Balances

15.630

57.748

4.956

 

Other Current Assets

34.535

18.162

16.995

 

Loans & Advances

242.232

277.874

176.128

Total Current Assets

1258.049

1088.171

780.161

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

731.681

425.789

418.674

 

Other Current Liabilities

63.427

67.731

70.954

 

Provisions

61.148

64.966

5.015

Total Current Liabilities

856.256

558.486

494.643

Net Current Assets

401.793

529.685

285.518

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1896.982

1976.228

1667.051

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

2871.329

1999.347

1437.409

 

 

Other Income

54.409

26.835

19.571

 

 

TOTAL                                     (A)

2925.738

2026.182

1456.980

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

1632.933

1099.429

0.000

 

 

Material Consumed and Manufacturing Expenses

531.962

308.087

1035.747

 

 

Employee’s Related Cost

201.257

149.610

126.395

 

 

Administrative, Selling and Other Expenses

191.276

115.216

74.148

 

 

Exceptional Income Expenses

(1.178)

(0.095)

0.000

 

 

TOTAL                                     (B)

2556.250

1672.247

1236.290

 

 

 

 

 

Less

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

369.488

353.935

220.690

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

141.603

128.370

76.107

 

 

 

 

 

 

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

227.885

225.565

144.583

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

158.041

123.217

65.575

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

69.844

102.348

79.008

 

 

 

 

 

Less

TAX                                                                  (H)

37.491

40.551

23.971

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

32.353

61.797

55.037

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

260.613

198.816

143.779

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

292.966

260.613

198.816

 

 

 

 

 

 

IMPORTS VALUE

516.583

599.218

527.574

 

 

 

 

 

 

Earnings Per Share (Rs.)

6.50

12.41

12.70

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

1.11

3.05

3.77

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.43

5.12

5.49

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.65

4.26

4.77

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.12

0.19

0.16

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

3.89

3.78

3.53

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.47

1.95

1.57

 

 

LOCAL AGENCY FURTHER INFORMATION

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

Creditors due others

731.681

425.789

418.674

Total

731.681

425.789

418.674

 

COMPANY OVERVIEW

 

Subject is engaged in the business of manufacture of steel forgings, supply, erection and commissioning of special purpose furnaces on turn-key basis and general engineering.

 

BUSINESS ACTIVITIES

 

The year gone by witnessed heavy pressures on the margins. Profitability was affected especially because of some escalations in maintenance costs and administrative and selling costs. As a result the company’s profits decreased to Rs. 32.35 millions as against a profit of Rs. 61.80 millions in the previous year. The Board of Directors has already undertaken steps for cost control. Implementation of SAP is one of the many measures identified by the Management. The Directors are confident that the Company would bounce back from this position and would be able to improve its profitability in the years to come.

 

FORM 8

 

Corporate identity number of the company

U29141MH1979PLC020973

Name of the company

KALYANI THERMAL SYSTEMS LIMITED

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

72-76, Mundhawabehind Siporex, Pune – 411036, Maharashtra, India

This form is for

Modification of charge

Type of charge

Book debts

Movable property (not being pledge)

Floating charge

Particular of charge holder

Bank of Baroda, Corporate Financial Services Branch, Mantri Court Ambedkar Road, Pune – 411001, Maharashtra, India

Nature of instrument creating charge

Supplemental composite agreement of hypothecation of goods, book debts, movables machinery and vehicles Dated10.10.2011

Date of instrument Creating the charge

10.10.2011

Amount secured by the charge

Rs. 1795.000 Millions

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

Rate of interest

As per agreement and sanction letter

 

Terms of repayment

As per agreement and sanction letter

 

Margin

As per agreement and sanction letter

 

Extent and operation of the charge

The revised and restructure limits are as follows:

fund base:

TL IV: 50.000 Millions.

TL V: 150.000 Millions.

TL VII: 375.000 Millions.

TL VIII: 300.000 Millions.

TL IX: 120.000 Millions.

line of credit: 750.000 Millions.

sub limit for

a)       CC (hypothecation of stock and book debts): (350.000 Millions.)

 

b)       Bill discounting/ Drawee Bill Discounting (group companies and others): (50.000 Millions.)

 

c) Inland/Import DA LC (usance 90 days for inland LC/ up to 120 days for import LC) for purchase of raw material: (400.000 Millions)

 

Other

Non fund based limit:

inland bank guarantee (per for /financial): 50.000 Millions.

 

Total: 1795.000 millions

 

The charge operate as a security for the said limit thereby crating further charge

Short particulars of the property charged (Including location of the property)

All the borrower’s stock of raw materials, stock in process, finish goods, consumable spares and packing materials, all the book debts

 

All the book debts now owing to borrower and owing to borrower at any time in the course of business

 

All the movable machinery of the borrower including all stores and spare parts, both present and future belonging to the borrower being and lying in the borrower’s premises or godowns of or rented by

 

The borrower or otherwise used in connection with the business of the borrower and all the vehicles and also as stated in the agreement

Charge identification number of the charge to be modified

80010652

Date of instrument modifying the charge

01.08.2011

Particulars of the present modification

By current modification the revised and restructure limits are as follows:

FUND BASE:

Sub Total of Term loans: 995.000 Millions.

Line of credit: 750.000 Millions.

Sub Total for working capital (fund base): 1745.000 Millions.

NON FUND BASED LIMITS:

Sub Total for Non Fund base: 50.000 Millions.

Total: 1795.000 Millions.

 

All other terms and conditions remains the same.

 

 

FIXED ASSETS

 

·         Land

·         Building 

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

 


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 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. 49.35

UK Pound

1

Rs. 78.68

Euro

1

Rs. 65.62

 


 

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

NO

--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

-

 

 

 

 

 

 

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.