MIRA
INFORM REPORT
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Report Date : |
22.05.2012 |
IDENTIFICATION DETAILS
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Name : |
ELECTROHMS PRIVATE LIMITED |
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Registered
Office : |
No.129, EPIP 2nd Phase, KIADB Industrial Area, Whitefield, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
09.01.1973 |
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Com. Reg. No.: |
08-002284 |
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Capital
Investment / Paid-up Capital : |
Rs.7.000 millions |
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CIN No.: [Company Identification
No.] |
U31900KA1973PTC002284 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRE00070A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturing and Dealing in Current Transformer, Hall Effect Current
Sensor, Industrial Transformer. |
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No. of Employees
: |
150 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (47) |
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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 522000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having satisfactory track. Trade relations are reported
as fair. Business is active. Payments are reported to be usually correct and
as per commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office/ Factory : |
No.129, EPIP 2nd Phase, KIADB Industrial Area, Whitefield, |
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Tel. No.: |
91-80-28413642/ 43/ 44/ 45 |
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Fax No.: |
91-80-28413641 |
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E-Mail : |
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Website : |
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Corporate and Sales Office : |
No.67/6-1, |
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Tel. No.: |
91-80-43492200, 43492211 to 14 |
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Fax No.: |
91-80-23571852 |
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E-Mail : |
DIRECTORS
As on 30.09.2011
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Name : |
Gautham Krishnan |
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Designation : |
Director |
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Address : |
Charter House, Flat No.1, No.36, 7th Cross, |
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Date of Birth/Age : |
07.03.1965 |
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Date of Appointment : |
16.08.1989 |
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DIN No.: |
01104341 |
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Other Directorship :
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Name : |
Prema Krishnan |
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Designation : |
Director |
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Address : |
No.36, Charter House, Flat No.C-1, 2nd Floor, 7th
Cross, |
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Date of Birth/Age : |
15.05.1935 |
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Date of Appointment : |
23.10.2009 |
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DIN No.: |
01233530 |
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Other Directorship :
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
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Names of Shareholders |
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No. of Shares |
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Swamy B M |
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400 |
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Kilaru Mohan |
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150500 |
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Nikhil Desai |
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500 |
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Gautham Krishnan |
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548600 |
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Total |
|
700000 |
As on 30.09.2011
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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 |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Dealing in Current Transformer, Hall Effect Current
Sensor, Industrial Transformer. |
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Products : |
v
Current Transformer v
Hall Effect Current
Sensor v
Industrial Transformer |
PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
For
the year ended 31.03.2011 |
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i) Licensed Capacity |
Not Applicable |
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ii) Installed Capacity : As certified by the Management [Single Shift basis] |
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- Transformers [Nos.] |
800,000 |
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iii) Actual Production: |
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- Transformers [Nos.] |
1753899 |
GENERAL INFORMATION
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Customers : |
v
ABB v
D-Link v
Thomas and Betts
v
Larsen and Toubro |
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No. of Employees : |
150 (Approximately) |
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Bankers : |
v Industrial Development
Bank of v Bank of v Corporation Bank, Malleswaram, 18th
Cross, Vastra Bhavan, IV Main, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Narayana Setty RVM and Company Chartered Accountants |
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Address : |
# 227, 1ST Floor, 4th |
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Tel. No.: |
91-80-22420924/ 26611090/ 26670924 |
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Fax No.: |
91-80-26670924 |
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E-Mail : |
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Income-tax
PAN of auditor or auditor's firm : |
ABIPN1542M |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
700000 |
Equity Shares |
Rs.10/- each |
Rs.7.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
700000 |
Equity Shares (Including 16600 shares of Rs.10/- each allotted as fully paid up for
consideration other than cash and 25500 shares of Rs.10/- each allotted as
fully paid up by way of bonus shares) |
Rs.10/- each |
Rs.7.000 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
7.000 |
7.000 |
7.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
123.463 |
100.799 |
87.786 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
130.463 |
107.799 |
94.786 |
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LOAN FUNDS |
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1] Secured Loans |
13.743 |
22.808 |
19.092 |
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2] Unsecured Loans |
1.035 |
0.977 |
0.921 |
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TOTAL BORROWING |
14.778 |
23.785 |
20.013 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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Provision of Deferred Taxes |
1.192 |
1.484 |
1.685 |
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TOTAL |
146.433 |
133.068 |
116.484 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38.821 |
41.059 |
42.999 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
3.100 |
3.100 |
3.310 |
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
37.418
|
27.495 |
28.615 |
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Sundry Debtors |
35.928
|
39.387 |
25.185 |
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Cash & Bank Balances |
2.790
|
10.186 |
3.821 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
53.988
|
35.964 |
31.190 |
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Total
Current Assets |
130.124
|
113.032 |
88.811 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
8.912
|
13.046 |
6.258 |
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Other Current Liabilities |
4.600
|
5.177 |
2.973 |
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Provisions |
12.100
|
5.900 |
9.405 |
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Total
Current Liabilities |
25.612
|
24.123 |
18.636 |
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Net Current Assets |
104.512
|
88.909 |
70.175 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
146.433 |
133.068 |
116.484 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
147.214 |
122.733 |
111.286 |
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Other Income |
5.956 |
3.868 |
8.046 |
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TOTAL (A) |
153.170 |
126.601 |
119.332 |
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Less |
EXPENSES |
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|
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|
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|
124.598 |
5.890 |
(1.378) |
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Conversion Cost |
|
64.226 |
60.767 |
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Employee Cost |
|
14.477 |
12.278 |
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Administration Overhead |
|
10.387 |
7.559 |
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Selling & Distribution Expenses |
|
4.175 |
3.012 |
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TOTAL (B) |
124.598 (Including
financial and depreciation) |
99.155 |
82.238 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
27.446 |
37.094 |
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Less |
FINANCIAL
EXPENSES (D) |
|
4.974 |
2.328 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
22.472 |
34.766 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
4.237 |
5.332 |
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PROFIT BEFORE
TAX (E-F) (G) |
28.572 |
18.235 |
29.434 |
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Less |
TAX (H) |
5.908 |
5.862 |
10.197 |
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PROFIT AFTER TAX
(G-H) (I) |
22.664 |
12.373 |
19.237 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
98.228 |
85.855 |
66.618 |
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BALANCE CARRIED
TO THE B/S |
NA |
98.228 |
85.855 |
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EARNINGS IN
FOREIGN CURRENCY |
|
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Export Earnings |
95.196 |
67.351 |
74.117 |
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TOTAL EARNINGS |
95.196 |
67.351 |
74.117 |
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|
Earnings Per
Share (Rs.) |
32.38 |
NA |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
14.80
|
9.77 |
16.12 |
|
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Net Profit Margin (PBT/Sales) |
(%) |
19.41
|
14.86 |
26.45 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
16.91
|
11.83 |
22.33 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.17 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.31
|
0.44 |
0.41 |
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Current Ratio (Current Asset/Current Liability) |
|
5.08
|
4.69 |
4.77 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of
Establishment |
Yes |
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2) Locality of
the firm |
Yes |
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3) Constitutions
of the firm |
Yes |
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4) Premises
details |
No |
|
5) Type of
Business |
Yes |
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6) Line of
Business |
Yes |
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7) Promoter’s
background |
Yes |
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8) No. of
employees |
Yes |
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9) Name of person
contacted |
No |
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10) Designation
of contact person |
No |
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11) Turnover of
firm for last three years |
Yes |
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12) Profitability
for last three years |
Yes |
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13) Reasons for
variation <> 20% |
-- |
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14) Estimation
for coming financial year |
Yes |
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15) Capital in
the business |
Yes |
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16) Details of
sister concerns |
No |
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17) Major
suppliers |
No |
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18) Major
customers |
Yes |
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19) Payments
terms |
No |
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20) Export /
Import details (if applicable) |
No |
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21) Market
information |
-- |
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22) Litigations
that the firm / promoter involved in |
-- |
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23) Banking
Details |
Yes |
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24) Banking
facility details |
Yes |
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25) Conduct of
the banking account |
-- |
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26) Buyer visit
details |
-- |
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27) Financials,
if provided |
Yes |
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28) Incorporation
details, if applicable |
Yes |
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29) Last accounts
filed at ROC |
Yes |
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30) Major
Shareholders, if available |
Yes |
Note:
The registered office of the company has been shifted from 881/B, Dr. M.C.
Modi Hospitalroad, West Off Chord Road, IInd Stage, Basaveswara Nagar,
Bangalore – 560 086, Karnataka to the present address w.e.f. 03.09.2009.
BRIEF NOTE ON THE COMPANY:
The Company was
incorporated in the year 1973. The Company is engaged in the business of
manufacture and sale of Transformers. The Company has set up a new
manufacturing facility at EPIP, Whitefield,
OUTLOOK:
- Business
projections - There is considerable uncertainty in the market. Company has
achieved a turnover of INR 72.000 millions for the first half of 2011-2012. The
expected full year sales are INR 150.000 millions. Growth is weak due to
weakness of business from European customers.
- Expansion plans
are on hold. They are adding equipment for their Hall Sensor business. There is
an exploration of opening an SEZ unit near Pondichery.
- Bank borrowings
- No long term debt. Plan to be debt free this year even for working capital
- They have
applied for 50.000 millions soft loans from DSIR for development of
nanocrystalline cores.
CONTINGENT
LIABILITIES: (As on 31.03.2011)
v
Counter guarantee to Banks for guarantees given on
behalf of the Company Rs.0.200 million
by director of the
Company.
FIXED ASSETS:
v
Land –
v
Lease hold Land
v
Building at EPIP – Whitefield
v
Plant and Machinery
v
Plant and Machinery – Whitefield
v
Tools and Equipments
v
Lights and Fittings
v
Furniture
v
Motor Cars
v
Air Conditioners
v
Photo Copiers
v
Document Binder
v
Computers and Software
v
Jigs, Moulds and Patterns
v
Kinetic Honda
v
TVS 50 Moped
WEBSITE DETAILS:
PROFILE:
Subject is a designer-producer of current sensors for industrial, Telecom Power, Railways applications. With 40 years of experience, they are well known for their innovation, quality and commitment to customers worldwide.
Their key strength lies in custom engineered, current sensing solutions for their Industrial customers worldwide.
Facilities
Subject has two manufacturing facilities, located in
Core Resources
As a customer-focused, design-driven business, their key strength is their 150 member workforce. The design team itself has decades of experience in magnetic design. With a manufacturing capacity of 6 million components per year and a strong manufacturing program, they can meet both low and high-volume requirements. The latest manufacturing facilities and test equipment are deployed to meet stringent quality requirements.
Social Responsibility
Subject is committed to exceeding the requirements of local regulations in meeting the health and safety obligations to their employees. They are deeply concerned that their business model enables them to provide a viable income for their employees and sub-contractors.
Subject has a ongoing outreach program with APSA (The Association for Promoting Social Action), Bangalore, a Non-Profit organisation that provides vocational training in fields like electronics and tailoring to about 5000 persons from economically-disadvantaged urban poor.
Their vocational training programme with APSA trains students in low voltage transformer manufacturing. The trainees are introduced to specific skills related to transformer manufacturing and generalized training in ISO quality systems and procedures making them extremely attractive for employment in the organised sector. Over 500 individuals have been trained in the programme to date.
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.54.68 |
|
|
1 |
Rs.86.52 |
|
Euro |
1 |
Rs.69.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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 |
6 |
|
--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 |
|
47 |
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.