MIRA INFORM REPORT

 

 

Report Date :

19.03.2013

 

IDENTIFICATION DETAILS

 

Name :

MORGARDSHAMMAR INDIA LIMITED

 

 

Registered Office :

1400  Modi Tower, 98 Nehru Place, New Delhi – 110019

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

21.02.1983

 

 

Com. Reg. No.:

55-015250

 

 

Capital Investment / Paid-up Capital :

Rs. 9.500 Millions

 

 

CIN No.:

[Company Identification No.]

U51109DL1983PLC015250

 

 

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Supplier of Rolling Mill Guide Equipment including Roller Guides, Friction Guides, Escapement Repeaters and Loopers for Wire Rods and Bar Mills.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (28)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 177000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. The management of the company has failed to file its financials with the government department for the year 2012.

 

As per previous year’s record, there appear huge external borrowings recorded by the company and the profitability is low.

 

However, business is active. Payment terms are unknown in absence of latest financial.

 

The company can be considered for business dealings with great 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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.

 

 

LOCATIONS

 

Registered Office :

1400  Modi Tower, 98 Nehru Place, New Delhi – 110019, India

Tel. No.:

91-11-26286641/ 66504555/ 42504555

Fax No.:

91-11-26451659/ 26293277

E-Mail :

companysecretary@bsil.org

Website :

www.morgardshammar.in

 

 

Works :

Behind Dayawati Modi Academy, Modipuram, Meerut – 250110, Uttar Pradesh, India

Tel. No.:

91-121-2577789/ 2577891

Fax No.:

91-121-2576818

 

 

DIRECTORS

 

AS ON 27.09.2011

 

Name :

Mr. Umesh Kumar Modi

Designation :

Director

Address :

36, Amrita Shergill Marg, New Delhi – 110003, India

Date of Birth/Age :

06.03.1951

Date of Appointment :

21.02.1983

DIN No.:

00002757

 

 

Name :

Mr. Brajeshwar Dayal Garg

Designation :

Whole-time director

Address :

26 NRI Complex, Mandakni, New Delhi – 110003, India

Date of Birth/Age :

11.05.1949

Date of Appointment :

30.06.2012

DIN No.:

00002792

 

 

Name :

Mr. Abhishek Modi

Designation :

Director

Address :

36, Amrita Shergill Marg, New Delhi – 110003, India

Date of Birth/Age :

12.12.1975

Date of Appointment :

05.09.1997

DIN No.:

00002798

 

 

Name :

Mrs. Kumkum Modi

Designation :

Director

Address :

36, Amrita Shergill Marg, New Delhi – 110003, India

Date of Birth/Age :

19.01.1951

Date of Appointment :

29.09.1989

DIN No.:

00522904

 

 

Name :

Mr. Jayesh Modi

Designation :

Director

Address :

36, Amrita Shergill Marg, New Delhi – 110003, India

Date of Birth/Age :

14.11.1991

Date of Appointment :

21.06.2010

DIN No.:

02849637

 

 

Name :

Mr. Om Prakash Modi

Designation :

Director

Address :

A-57, Sector-31, Gautam Budh Nagar, Noida - 201301, Uttar Pradesh, India

Date of Birth/Age :

16.07.1929

Date of Appointment :

14.03.1991

DIN No.:

00009490

 

 

Name :

Bindu Kumar Luthra

Designation :

Director

Address :

31/21, East Patel Nagar, 2nd Floor, New Delhi – 110008, India

Date of Birth/Age :

19.12.1949

Date of Appointment :

27.09.2011

DIN No.:

00004154

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 27.09.2011

 

Names of Shareholders

 

No. of Shares

 

Umesh Kumar Modi

 

750880

Kumkum Modi

 

10100

Veena Modi

 

20

OWN Investment India Limited, India

 

20000

Longwell Investment Private Limited, India

 

34000

Morgardshammar AB, Sweden

 

80000

Your Investment India Limited, India

 

20000

Indo Euro Investment Company Private Limited, India

 

19980

Mcorp Global Private Limited, India

 

15020

 

 

 

Total

 

950000

 

 

AS ON 27.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

8.42

Bodies corporate

 

11.47

Directors or relatives of directors

 

80.11

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Supplier of Rolling Mill Guide Equipment including Roller Guides, Friction Guides, Escapement Repeaters and Loopers for Wire Rods and Bar Mills.

 

 

Products :

ITC Code

Product Descriptions

84553000

Roller

84559000

Roller Guide Box

84559000

Entry Guide Half

83111000

Welding Electrode

72173020

Mig Wire-Co2

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Rolling Mill Guide System Equipments and Spare Parts for Rolling Mills

Nos.

170

120

214696

Welding Electrode*

Kgs

N.A.

N.A.

2534993

Mig Wire*

Kgs

N.A.

 

N.A.

1392707

 

Note;

* Increase in installed capacity as certified by the management.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Ø       The Shamrao Vithal Co-operative Bank Limited, SVC Tower, Nehru Road, Vakola, Santacruz (East), Mumbai - 400055, Maharashtra, India

Ø       Indusind Bank Limited, Nehru Place Branch, Nehru Place, New Delhi – 110019, India

 

 

Facilities :

 

Secured Loans

31.03.2011

31.03.2010

 

Term Loans

(Rs. In Millions)

From Banks

14.997

24.081

Interest accrued and due on above

0.000

0.309

Working capital loans from Banks

60.774

40.482

Loans against vehicles

 

 

From Banks

0.638

1.225

From Body Corporate

0.000

0.172

Total

76.409

66.269

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Rastogi Narain and Company

Chartered Accountants

Address :

303, DDA HIG Multi Storey, Block – I, Rani Jhasi Complex, Desh Bandhu Road, Paharganj, New Delhi – 110055, India

Tel. No.:

91-11-23557512-13/ 23557517

Fax No.:

91-11-23557512

E-Mail :

mco@sify.com

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

AAAFR7044M

 

 

Other parties with whom the company has entered into transaction during the year :

Ø       Modi Line Travel Services Private Limited

Ø       Bihar Sponge Iron Limited

Ø       Win Medicare Private Limited

Ø       MG Mobile India Private Limited

Ø       HM Tubes and Containers Private Limited

Ø       Technicast Engineering Limited 

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,000,000

Equity Shares

Rs. 10/- each

Rs. 10.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

950,000

Equity Shares

Rs. 10/- each

Rs. 9.500 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

9.500

9.500

9.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

34.857

34.629

34.362

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

44.357

44.129

43.862

LOAN FUNDS

 

 

 

1] Secured Loans

76.409

66.269

75.882

2] Unsecured Loans

60.857

41.062

32.274

TOTAL BORROWING

137.266

107.331

108.156

DEFERRED TAX LIABILITIES

1.764

1.529

1.658

 

 

 

 

TOTAL

183.387

152.989

153.676

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

85.156

85.469

65.449

Capital work-in-progress

8.072

0.070

10.894

 

 

 

 

INVESTMENT

0.500

0.500

0.500

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

139.193

117.685

105.021

 

Sundry Debtors

51.250

51.027

47.280

 

Cash & Bank Balances

9.083

6.401

7.233

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

15.731

15.123

18.103

Total Current Assets

215.257

190.236

177.637

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

96.140

96.689

82.939

 

Other Current Liabilities

23.710

23.047

14.043

 

Provisions

5.748

3.550

3.822

Total Current Liabilities

125.598

123.286

100.804

Net Current Assets

89.659

66.950

76.833

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

183.387

152.989

153.676

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

366.008

312.260

257.996

 

 

Commission received

4.000

4.333

2.193

 

 

Other Income

5.656

2.293

2.153

 

 

TOTAL                                     (A)

375.664

318.886

262.342

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials, Manufacturing and Others

255.953

218.972

160.085

 

 

Excise duty on Increase/ (Decrease) of stocks

0.930

0.711

2.209

 

 

Personnel Expenses

53.264

43.786

37.342

 

 

Administrative, Selling and Distribution

41.344

39.255

31.833

 

 

Extraordinary items

0.000

(8.548)

0.000

 

 

TOTAL                                     (B)

351.491

294.176

231.469

 

 

 

 

 

Less

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

24.173

24.710

30.873

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

18.861

19.929

17.330

 

 

 

 

 

 

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

5.312

4.781

13.543

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

4.744

4.672

8.448

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

0.568

0.109

5.095

 

 

 

 

 

Less

TAX                                                                  (H)

0.340

(0.158)

2.450

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

0.228

0.267

2.645

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

4.475

6.427

10.699

 

 

Commission received

0.000

4.333

2.193

 

TOTAL EARNINGS

4.475

10.760

12.892

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.24

0.28

2.78

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

0.06

0.08

1.01

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

0.16

0.03

1.97

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

0.19

0.04

2.10

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.00

0.12

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

3.09

2.43

2.47

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.71

1.54

1.76

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

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

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

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

Yes

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

No

30]

Major Shareholders, if available

Yes

31]

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

Yes

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

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

Other Loans

 

 

From Banks

3.033

3.603

From Others

44.626

29.371

Inter Corporate Deposit 

13.198

8.088

Total

60.857

41.062

 

 

OPERATIONS:

 

The company has achieved a total income including other income of Rs. 375.663 Millions during the year as against Rs. 318.885 Millions during the previous year. The net profit has been Rs. 0.228 Million for the year against Rs. 0.266 Million in the previous year. The launch of new product (welding electrodes) is just three and also among retail customers. Efforts are being made to explore and develop new market and increase velume in the existing market.

 

The management has pleasure in announcing that the production capacity of CO2 Mig and SS Mig wire has been increased by 2520 MT and 300 MT per annum respectively. The sales during the period 2011-12 are expected to be around Rs. 650.000 Millions. The future of the company is promising.  

 

 

CONTINGENT LIABILITIES:

 

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 16.500 Millions.

 

 

FIXED ASSETS:

 

Ø       Land

Ø       Buildings

Ø       Plant and Machinery

Ø       Computers

Ø       Furniture and Fixtures

Ø       Office Equipments

Ø       Vehicles

Ø       EOP Software

 



 

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. 54.29

UK Pound

1

Rs. 81.94

Euro

1

Rs. 70.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

1

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

28

 

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.