MIRA INFORM REPORT

 

 

Report Date :

12.11.2013

 

IDENTIFICATION DETAILS

 

Name :

SALCOMP MANUFACTURING INDIA PRIVATE LIMITED

 

 

Registered Office :

Nokia Telecom Sez, Sipcot Industrial Park, Phase III, National Highway No. 4, Sriperumbudur – 602 105, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

28.03.2006

 

 

Com. Reg. No.:

18-059330

 

 

Capital Investment / Paid-up Capital :

Rs.379.000 Millions

 

 

CIN No.:

[Company Identification No.]

U30007TN2006PTC059330

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHES25864G

 

 

PAN No.:

[Permanent Account No.]

AAJCS7988P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of manufacture and sale of power supplies mainly chargers for mobile phones and other electronic handheld devices and telecommunication equipment.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 790000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of Salcomp Manufacturing OY, Finland. It is an established company having satisfactory track record.

 

There appears losses recorded by the company during 2012.

 

However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

In view of strong holdings, 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

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/ Factory :

Nokia Telecom Sez, Sipcot Industrial Park, Phase III, National Highway No. 4, Sriperumbudur – 602 105, Tamilnadu, India

Tel. No.:

91-44-37177777

Fax No.:

91-44-37177778

E-Mail :

arto.makela@salecomp.com

anantha.narayanan@salcomp.com

 

 

DIRECTORS

 

As on: 13.09.2012

 

Name :

Markku Sakari Hangasjarvi

Designation :

Director

Address :

Kotiportintie 202330, Espoo Finland

Date of Birth/Age :

25.03.1966

Date of Appointment :

18.06.2009

DIN No. :

02675086

 

 

Name :

Jari Olavi Sarrinen

Designation :

Director

Address :

Sinipiiankuja 121100 Naantali Finland

Date of Birth/Age :

17.04.1959

Date of Appointment :

18.06.2009

DIN No. :

02651650

 

 

KEY EXECUTIVES

 

Name :

Anantha Narayanan Ramanathan

Designation :

Company Secretary

Address :

Ratnanagar Main Road, Teynampet Chennai – 600018, Tamilnadu, India

Date of Birth/Age :

24.05.1969

Date of Appointment :

07.06.2006

PAN No. :

ACXPA0660M

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 13.09.2012

 

Names of Shareholders

 

No. of Shares

Salcomp Manufacturing OY, Finland

 

37899000

Salcomp PLC, Finland

 

1000

Total

 

37900000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 13.09.2012

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of manufacture and sale of power supplies mainly chargers for mobile phones and other electronic handheld devices and telecommunication equipment.

 

PRODUCTION STATUS (AS ON 31.03.2012)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Mobile chargers

Unit

125,000,000

100,000,000

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Kotak Mahindra Bank Limited, 36-38A, Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2012

(15 Months)

As on

31.12.2010

Rupee term loans financial institutions

293.800

293.800

Total

293.800

293.800

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Company

Chartered Accountants

Address :

No. 10, Mahatma Gandhi Road, Nungambakkam, Chennai – 600034, Tamilnadu, India

Tel. No.:

91-44-39145000

Fax No.:

91-44-39145999

PAN No.:

AAAFB9852F

 

 

Holding Company :

Salcomp Manufacturing OY, Finland

 

 

Ultimate Holding Company :

Salcomp Plc, Finland

 

 

Fellow Subsidiary :

·         Salcomp Industrial Electronica da, Brazil

·         Salcomp (Shenhzen), China

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

37900000

Equity Shares

Rs.10/- each

Rs.379.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

37900000

Equity Shares

Rs.10/- each

Rs.379.000 Millions

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

(15 Months)

31.12.2010

31.12.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

379.000

379.000

379.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

10.842

9.354

7.213

4] (Accumulated Losses)

(190.127)

(183.706)

(358.187)

NETWORTH

199.715

204.648

28.026

LOAN FUNDS

 

 

 

1] Secured Loans

293.800

293.800

0.000

2] Unsecured Loans

155.847

51.810

543.919

TOTAL BORROWING

449.647

345.610

543.919

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

649.362

550.258

571.945

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

563.223

596.111

629.643

Capital work-in-progress

4.854

13.833

0.140

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

271.284

214.860

134.892

 

Sundry Debtors

504.993

234.844

175.389

 

Cash & Bank Balances

30.827

33.679

71.753

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

85.311

72.678

55.478

Total Current Assets

892.415

556.061

437.512

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

788.358

597.780

482.174

 

Other Current Liabilities

9.785

6.071

5.828

 

Provisions

12.987

11.896

7.348

Total Current Liabilities

811.130

615.747

495.350

Net Current Assets

81.285

(59.686)

(57.838)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

649.362

550.258

571.945


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

(15 Months)

31.12.2010

31.12.2009

 

SALES

 

 

 

 

 

Income

4252.631

3183.203

2920.187

 

 

Other Income

12.496

47.740

16.211

 

 

TOTAL                                     (A)

4265.127

3230.943

2936.398

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Materials cost

3286.733

2523.539

2299.194

 

 

Administrative, personnel and other expenses

887.828

477.691

351.051

 

 

Variation in Stock

(44.898)

(21.562)

18.649

 

 

TOTAL                                     (B)

4129.663

2979.668

2668.894

 

 

 

 

 

Less

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

135.464

251.275

267.504

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

53.884

13.810

18.214

 

 

 

 

 

 

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

81.580

237.465

249.290

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

88.001

62.984

59.466

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                  (G)

(6.421)

174.481

189.824

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

0.000

0.144

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

(6.421)

174.481

189.680

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(183.706)

(358.187)

(547.867)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(190.127)

(183.706)

(358.187)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

292.292

137.587

17.154

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(0.17)

4.60

7.95

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

(15 Months)

31.12.2010

31.12.2009

PAT / Total Income

(%)

(0.15)

5.40

6.46

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(0.15)

5.48

6.50

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(0.44)

15.14

17.79

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.03)

0.85

6.77

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

2.25

1.69

19.41

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.10

0.90

0.88

 

 

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

Yes

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

 

 

NOTE

 

The Registered Office of the company has been shifted from No 36, Ceebros, 2nd Floor, Anna Salai, Saidapet, Chennai – 600015, Tamilnadu, India to the present address w.e.f 01.08.2007.

 

 

BACKGROUND

 

The Company was incorporated on 28 March 2006. The Company commenced its commercial production on 4 June 2007 at its manufacturing facility situated at Nokia Special Economic Zone, Chennai. The Company is engaged in the business of manufacture and sale of power supplies mainly chargers for mobile phones and other electronic handheld devices and telecommunication equipment.

 

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2012

(15 Months)

As on

31.12.2010

Rupee term loans banks

155.847

51.810

Total

155.847

51.810

 

 

INDEX OF CHARGES

 

S. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10206519

27/08/2013 *

600,000,000.00

KOTAK MAHINDRA BANK LIMITED

36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA

B83633024

 

* Date of charge modification

 

 

FIXED ASSETS:

 

·         Leasehold Land

·         Building – Factory

·         Building – Non Factory

·         Plant And Machinery

·         Computers

·         Office Equipments

·         Furniture And Fittings

·         Other Machinery

·         Vehicle

 


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.63.30

UK Pound

1

Rs.101.36

Euro

1

Rs.84.60

 

 

INFORMATION DETAILS

 

Report Prepared by :

RAJ

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

6

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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.