MIRA INFORM REPORT

 

 

Report Date :

25.03.2013

 

IDENTIFICATION DETAILS

 

Name :

OSWAL CABLES PRIVATE LIMITED

 

 

Registered Office :

17, Purohit Ji Ka Bagh, M.I. Road, Jaipur – 302001, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

06.09.1971

 

 

Com. Reg. No.:

17-001375

 

 

Capital Investment / Paid-up Capital :

Rs. 7.500 Millions

 

 

CIN No.:

[Company Identification No.]

U31300RJ1971PTC001375

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer of Aluminium Conductors, Aluminium Wires and Transformers.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (36)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 1180000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. The latest financial are not made available with the government department.

 

As per previous year’s record, the performance of the company seems to be satisfactory.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be unknown.

 

The company can be considered for business dealings with some caution. 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Long term rating : (CRISIL) BB+

Rating Explanation

CRISIL has suspended its rating due to lack of information.

Date

March 2012

 

 

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 :

17, Purohit Ji Ka Bagh, M.I. Road, Jaipur – 302001, Rajasthan, India

Tel. No.:

91-141-2369420/ 2373273

Fax No.:

91-141-2374549

E-Mail :

oswalcableaccount@gmail.com

info@oswalcables.com

Website :

www.oswalcables.com

 

 

Administrative Office :

Gulab Niwas, M.I. Road Jaipur-302001, Rajasthan, India

 

 

Manufacturing Unit I :

139, Industrial Area, Jhotwara, Jaipur-302001, Rajasthan, India

 

 

Manufacturing Unit II :

Plot No. P-6/2, Industrial Development Area, Nacharam, Hyderabad, Andhra Pradesh, India

 

 

DIRECTORS

 

AS ON 29.09.2012

 

Name :

Mr. Laxmi Chand Talera

Designation :

Director

Address :

17, Purohit Ji Ka Bagh, M.I. Road, Jaipur – 302001, Rajasthan, India

Date of Appointment :

06.09.1971

DIN No.:

00303285

 

 

Name :

Mr. Surendra Kumar Talera

Designation :

Director

Address :

17, Purohit Ji Ka Bagh, M.I. Road, Jaipur – 302001, Rajasthan, India

Date of Appointment :

16.08.1996

DIN No.:

00303329

 

 

Name :

Mr. Sagar Mal Kothari

Designation :

Director

Address :

47, Halatr Jain Mandir Road, Tehsil Beawar, Ajmer – 305901, Rajasthan, India

Date of Appointment :

30.06.1981

DIN No.:

02440997

 

 

Name :

Mr. Puneet Talera

Designation :

Director

Address :

17, Purohit Ji Ka Bagh, M.I. Road, Jaipur – 302001, Rajasthan, India

Date of Appointment :

31.07.2009

DIN No.:

02738075

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 29.09.2012

 

Names of Shareholders

 

No. of Shares

 

Laxmi Chand Talera

 

792

Manak Chand Talera

 

903

Surendra Kumar Talera

 

1125

Ugam Kanwar Talera

 

1920

Shakuntala Talera

 

75

Puneet Talera

 

2025

Gaurav Talera

 

300

Manak Chand Talera (HUF)

 

165

Surendra Kumar Talera (HUF)

 

195

 

 

 

Total

 

7500

 

 

AS ON 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Aluminium Conductors, Aluminium Wires and Transformers.

 

 

Products :

ITC Code

Product Descriptions

7614.10/ 7614.90

AAC/ ACSR/ AAAC Conductors  

7601.30/ 7604.10/ 7605.11/ 7605.19/ 7605.21/ 7605.24

Aluminium Wire Rod/Wires

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Licensed Capacity

Installed Capacity

Main unit for ACSR

Not Applicable

2951 M.T.P.A. (For Single Shift at Jaipur) Data related to Hyderabad Branch is not assessable)

Wind Power Unit

Not Applicable

0.46 Megawatt (Jaiselmer)

0.60 Megawatt (Sikar)

0.60 Megawatt (Sangli)

1.25 Megawatt (Pithala)

0.60 Megawatt (Barmer)

0.60 Megawatt (Barmer)

 

Particulars

Measurement

Actual production

ALU Wire

M.T.

323.725

ACSR

K.M.

7133.426

ABC

K.M.

3026.596

LV/HV

M.T.

4.864

Transformer

NO

758

Steel Wire

M.T.

9.6

AAAC Conductor

K.M.

151.864

Power Cable

M.T.

28.288

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

State Bank of Bikaner and Jaipur, 2nd Floor, Tambi Towers, Sansar Chand Road, Jaipur – 302001, Rajasthan, India

 

 

Facilities :

 

Secured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

State Bank of Bikaner and Jaipur

 

 

Cash Credit loan (Hypothecation of raw material and finished goods)

125.475

114.112

SBBJ A/c (Hypothecation of raw material and finished goods)

30.280

30.242

Term Loan (Wingmill Sikar)

0.000

3.078

Term Loan (Sangli)

9.270

12.631

Term Loan (Suzlon Jaiselmer)

25.285

31.981

Term Loan (Suzlon RKG Barmer)

43.552

47.016

Term Loan (Skipper) (Hypothecation of Machine)

0.809

1.284

Car Term Loan (Skoda Superb)

1.300

1.684

Total

235.971

242.028

 

Note:

First charge by way of hypothecation of all present and future plant and machineries at Wind Power Mills along with all equipments, furniture, fixture, stores and spares escrow account and all other misc. fixed assets of the company. Further loans from SBBJ are also collaterally secured by equitable mortgage by way of first charge on all immovable and fixed assets of the company comprising factory land, building , fixed plant and machinery, present and future situated at 139, Industrial Area, Jhotwara, Jaipur

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalani and Company

Chartered Accountants

Address :

Shankar Ratan Chambers, S-23A, Mangal Marg, Bapu Nagar, Jaipur – 302015, Rajasthan, India

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

AABFK0738Q

 

 

Joint Venture :

Ř  NEC Private Limited

Ř  Nav Durga Construction Company

Ř  Bhanwarlal Birjania

Ř  Shivalik Telecom Limited

 

 

Enterprises over which KMP are able to exercise significant influences :

Ř  Oswal Electrical Conductors

Ř  Oswal Finlease Private Limited

Ř  R.R. Finance

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7,500

Equity Shares

Rs. 1000/- each

Rs. 7.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

7,500

Equity Shares

Rs. 1000/- each

Rs. 7.500 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

7.500

7.500

7.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

288.244

258.964

138.913

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

295.744

266.464

146.413

LOAN FUNDS

 

 

 

1] Secured Loans

235.971

242.028

191.867

2] Unsecured Loans

109.670

91.878

64.273

TOTAL BORROWING

345.641

333.906

256.140

DEFERRED TAX LIABILITIES

0.000

6.845

1.053

 

 

 

 

TOTAL

641.385

607.215

403.606

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

245.841

272.350

124.878

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.500

0.500

0.000

DEFERRED TAX ASSETS

6.765

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

51.035

64.356

64.888

 

Sundry Debtors

292.325

225.424

158.089

 

Cash & Bank Balances

37.408

31.054

30.269

 

Other Current Assets

127.907

102.013

61.331

 

Loans & Advances

55.187

81.219

77.439

Total Current Assets

563.862

504.066

392.016

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

129.966

133.957

89.351

 

Other Current Liabilities

44.269

35.343

23.356

 

Provisions

1.348

0.401

0.581

Total Current Liabilities

175.583

169.701

113.288

Net Current Assets

388.279

334.365

278.728

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

641.385

607.215

403.606

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

909.387

800.716

838.817

 

 

Other Income

6.701

2.596

2.139

 

 

Share received from Joint Venturer in working

(5.481)

(2.176)

0.446

 

 

TOTAL                                     (A)

910.607

801.136

841.402

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials

717.566

590.319

601.521

 

 

Payment and Provision to employees

7.493

6.020

5.856

 

 

Operating and Other Expenses

79.259

108.660

106.927

 

 

Excise Duty

(0.215)

(0.192)

(5.271)

 

 

Prior period Expenses

0.000

0.000

0.070

 

 

Share paid to Joint Venturer in Project working

18.122

16.048

23.502

 

 

TOTAL                                     (B)

822.225

720.855

732.605

 

 

 

 

 

Less

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

88.382

80.281

108.797

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

47.757

34.883

37.031

 

 

 

 

 

 

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

40.625

45.398

71.766

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

24.144

17.603

16.933

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

16.481

27.795

54.833

 

 

 

 

 

Less

TAX                                                                  (H)

(13.228)

0.476

6.585

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

29.709

27.319

48.248

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

11.840

0.935

34.687

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

35.000

16.414

82.000

 

BALANCE CARRIED TO THE B/S

6.549

11.840

0.935

 

 

 

 

 

 

Earnings Per Share (Rs.)

3961

3643

6433

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

3.26

3.41

5.73

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.81

3.47

6.54

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

2.04

3.58

10.61

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.10

0.12

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.17

1.25

1.75

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.21

2.97

3.46

 

 

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

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

Yes

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2011

31.03.2010

 

 

(Rs. In Millions)

From Director

21.710

17.388

From Members

37.950

32.862

Oswal Electric Conductors (a firm in which director is a partner in the capacity of Karta)

50.010

41.628

Total

109.670

91.878

 

 

NATURE OF OPERATIONS:

 

The company operates predominately relates to the Manufacturer and Trader of Cables and Conductors, Power Generation by Windmill, Contractor for FRP by Electricity Companies and Contractor for Railway Work (Gadge Conversion Program).

 

 

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars

31.03.2011

31.03.2010

Guarantee and Letter of credit for which company has given Counter Guarantee.

415.409

315.741

Claims against the company not acknowledged as debts

0.281

0.281

Unexecuted contracts for supply of goods

482.556

226.994

 

 

FIXED ASSETS:

 

Ř  Land

Ř  Building

Ř  Plant and Machinery

Ř  Furniture and Fixture

Ř  Office Equipment

Ř  Vehicles

Ř  Electric Installation

 



 

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. 54.34

UK Pound

1

Rs. 82.56

Euro

1

Rs. 70.10

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

 

36

 

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.