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%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image004.jpg)
%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image005.gif)
MIRA INFORM REPORT
|
Report No. : |
494323 |
|
Report Date : |
26.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
LINCOLN ELECTRIC COMPANY (INDIA) PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Plot No. P. 40, Central Avenue, Domestic Tariff Area, Mahindra World
City, Natham Sub Post Office, Chengalpattu, Kanchipuram-603002, Tamilnadu |
|
Tel. No.: |
91-44-47424901 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
02.01.1997 |
|
|
|
|
Com. Reg. No.: |
18-064987 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 1000.000 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U31909TN1997PTC064987 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
Not Divulged |
|
|
|
|
GSTIN : [Goods & Service Tax
Registration No.] |
33AABCL2074K1ZM |
|
|
|
|
TIN No: |
33361562224 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCL2074K |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of manufacturing and trading of welding products and equipments. (Registered Activities) |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a wholly owned subsidiary of “Lincoln Electric Cyprus Limited”
Cyprus. The company was incorporated in the year 1997. It is engaged in the business of manufacturing and trading of
welding products and equipments. For the financial year 2017, the company has achieved 28.00 % growth
in its revenue as compared to previous year revenue and has maintained
healthy profitability margin of 10.49% during the year under review. The moderate financial profile of the company is marked by negative
reserve base along with negligible debt level. However, rating takes into consideration strong financial and
managerial support that the company receives from its holding entity backed
by its well experienced management team. Business is active. Payments seems to be slow but correct. In view of aforesaid, 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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 26.02.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
91-9840920285
(Continuously ringing)
Management non-cooperative (Tel No.: 91-44-47424999/ 47424901)
LOCATIONS
|
Registered Office / Factory / Warehouse: |
Plot No. P. 40, Central Avenue, Domestic Tariff Area, Mahindra World City,
Natham Sub Post Office, Chengalpattu, Kanchipuram-603002, Tamilnadu, India |
|
Tel. No.: |
91-44-47424901/ 47424999/ 47424810 |
|
Fax No.: |
91-44-47424888 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Sundarram Srinivasan |
|
Designation : |
Managing Director |
|
Address : |
14, Mansarovar Apartment No.1, Khader Nawaz Khan Road, Greams Road, Chennai-600006, Tamilnadu, India |
|
Date of Birth/Age : |
25.12.1956 |
|
Qualification : |
B Tech, PGDM |
|
Date of Appointment : |
18.04.2011 |
|
DIN No.: |
00009622 |
|
|
|
|
Name : |
Mr. Thomas Anthony Flohn |
|
Designation : |
Director |
|
Address : |
2-112, Forest Marot No.588, Jin Feng Road, Hao Cao Town, Minhang, Shanghai-201107, China |
|
Date of Birth/Age : |
09.10.1960 |
|
Date of Appointment : |
20.11.2013 |
|
DIN No.: |
01870700 |
|
|
|
|
Name : |
Mr. Ramalingam Thirumurugan |
|
Designation : |
Director |
|
Address : |
No 178/113, Gandhi Salai, Chengalpet, Chengalpattu, Natham Chengalpattu-603002, Tamilnadu, India |
|
Date of Birth/Age : |
22.12.1979 |
|
PAN No: |
AGJPT9844N |
|
Qualification |
Post Graduate/Master/Equivalent |
|
Date of Appointment : |
22.07.2015 |
|
DIN No.: |
07212642 |
|
|
|
|
Name : |
Mr. Stuart Douglas Hyde |
|
Designation : |
Director |
|
Address : |
8, Pituri Pl, Alfords Point New South Wales 2234, Australia |
|
Date of Appointment : |
05.05.2017 |
|
DIN No: |
07803192 |
KEY EXECUTIVES
|
Name : |
P.K. Pandya and Company |
|
Designation : |
Practicing Company Secretary |
|
Address : |
16, 1st Floor, Star Trade Centre, Sodawala Lane, Borivali {West}, Mumbai - 400 092, Maharashtra, India |
|
Tel. No: |
91-22-28903329 |
|
Email: |
MAJOR SHAREHOLDERS
As on 31.03.2017
|
Names of Shareholders |
|
No. of Shares |
|
Lincoln Electric Cyprus Limited, Cyprus |
|
99944014 |
|
Lincoln Electric Cyprus Holding LLC, United State of America |
|
55986 |
|
Total |
|
100000000 |
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Promoters (Individual/Hindu Undivided Family-Foreign-National) |
100.00 |
|
Total |
100.00 |
%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image006.gif)
BUSINESS DETAILS
|
Line of Business
: |
Subject is engaged in the business of manufacturing and trading of welding products and equipments. (Registered Activities) |
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Products / Services
: |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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|
|
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Imports : |
Not Divulged |
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|
|
||||||
|
Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
|
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No. of Employees : |
Not Divulged |
||||||||||||||||||||||
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|
|
||||||||||||||||||||||
|
Bankers : |
|
|
Auditors : |
|
|
Name : |
Seshachalam and Company Chartered Accountants |
|
Address : |
1-11-256, Wall Street Plaza, 06th Floor, ICICI Building, St No 1, Begumpet, Tamilnadu, India |
|
Income-tax
PAN of auditor or auditor's firm : |
ABIPT9434C |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Holding Company: |
Lincoln Electric Cyprus Limited, Cyprus |
|
|
|
|
Ultimate holding
company |
Lincoln Electric Holding Inc., USA |
|
|
|
|
Fellow
subsidiaries: |
• Lincoln Electric Cyprus Holdings, LLC • The Lincoln Electric Company (Asia Pacific) Pte. Limited, Singapore • The Lincoln Electric Company (Australia) Pty Limited, Australia • The Lincoln Electric Company, USA • Lincoln Electric France, S.A.S., France • The Shanghai Lincoln Electric Co., Limited, China • The Nanjing Lincoln Electric Co., Limited, China • Lincoln Electric Heli (Zhengzhou) Welding Materials Co., Limited, China • Lincoln Electric (U.K.) Limited, UK • Lincoln Electric Harris Calorific SRL, Italy • Lincoln Electric Italia S.r.l • Lincoln Electric do BrasilIndustria e Comercio Ltda., Brazil • Lincoln Smitweld B.V, The Netherlands • Lincoln Electric Bester Sp. Z O.O., Poland • Lincoln Electric (Jinzhou) Welding, China • Harris Product Group, USA • TechalloyInc, USA • Metrode Products Ltd, UK • Lincoln Electric CIFE, Italty • Lincoln Electric Electro Arco S A – Portugal • KaliburnInc • ARC Products INC • Lincoln Electric Middle East FZE • PT Lincoln Indoweld |
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
INR 10/- each |
INR 1000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
INR 10/- each |
INR 1000.000 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
INR Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
(b) Reserves & Surplus |
(150.980) |
(436.705) |
(543.593) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
849.020 |
563.295 |
456.407 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
174.175 |
263.085 |
407.642 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
174.175 |
263.085 |
407.642 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
177.297 |
80.436 |
106.047 |
|
(c) Other
current liabilities |
80.829 |
202.384 |
101.465 |
|
(d) Short-term
provisions |
22.013 |
11.118 |
8.467 |
|
Total Current
Liabilities (4) |
280.139 |
293.938 |
215.979 |
|
|
|
|
|
|
TOTAL |
1303.334 |
1120.318 |
1080.028 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i) Tangible
assets |
549.639 |
602.507 |
660.151 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
2.774 |
11.562 |
0.343 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
94.400 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
46.349 |
32.093 |
28.419 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
693.162 |
646.162 |
688.913 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
185.144 |
131.085 |
141.448 |
|
(c) Trade
receivables |
312.472 |
223.658 |
186.034 |
|
(d) Cash
and cash equivalents |
73.621 |
73.153 |
11.846 |
|
(e)
Short-term loans and advances |
38.935 |
46.260 |
51.787 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
610.172 |
474.156 |
391.115 |
|
|
|
|
|
|
TOTAL |
1303.334 |
1120.318 |
1080.028 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
1823.129 |
1424.375 |
1341.410 |
|
|
Other Income |
11.103 |
2.803 |
4.038 |
|
|
TOTAL |
1834.232 |
1427.178 |
1345.448 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
714.076 |
554.736 |
644.241 |
|
|
Purchases of
Stock-in-Trade |
442.054 |
301.165 |
280.434 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(31.709) |
17.483 |
14.203 |
|
|
Employees benefits
expense |
132.533 |
108.047 |
77.186 |
|
|
Other expenses |
297.074 |
249.397 |
215.205 |
|
|
TOTAL |
1554.028 |
1230.828 |
1231.269 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
280.204 |
196.350 |
114.179 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
8.804 |
9.941 |
20.850 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
271.400 |
186.409 |
93.329 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
80.074 |
79.522 |
88.016 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
191.326 |
106.887 |
5.313 |
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
191.326 |
106.887 |
5.313 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
Export Sales |
14.059 |
12.229 |
21.030 |
|
|
Freight |
22.604 |
17.106 |
15.416 |
|
|
TOTAL EARNINGS |
36.663 |
29.335 |
36.446 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
365.633 |
229.181 |
222.293 |
|
|
Components and Stores
parts |
15.354 |
14.189 |
13.617 |
|
|
Capital Goods |
16.982 |
2.480 |
1.368 |
|
|
TOTAL IMPORTS |
397.969 |
245.850 |
237.278 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
1.91 |
1.06 |
0.05 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
41.686 |
170.328 |
80.100 |
|
Cash generated from operations |
115.679 |
238.639 |
128.528 |
|
Net cash flows from (used in) operating activity |
112.403 |
246.956 |
149.133 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
62.56 |
57.31 |
50.62 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
5.83 |
6.37 |
7.21 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
55.97 |
34.30 |
41.86 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
1.51 |
1.50 |
0.81 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.51 |
0.32 |
0.17 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.38 |
0.65 |
0.65 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.25 |
0.77 |
1.07 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
0.33 |
0.52 |
0.47 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.65 |
1.09 |
1.45 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
31.83 |
19.75 |
5.48 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
10.49 |
7.50 |
0.40 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
14.68 |
9.54 |
0.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
22.53 |
18.98 |
1.16 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
2.18 |
1.61 |
1.81 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
1.52 |
1.17 |
1.16 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.65 |
0.50 |
0.42 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.22 |
0.43 |
0.49 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
2.18 |
1.61 |
1.81 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
1000.000 |
1000.000 |
1000.000 |
|
Reserves & Surplus |
(543.593) |
(436.705) |
(150.980) |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
456.407 |
563.295 |
849.020 |
|
|
|
|
|
|
long-term borrowings |
407.642 |
263.085 |
174.175 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Current maturities of
long-term debts |
80.100 |
170.328 |
41.686 |
|
Total
borrowings |
487.742 |
433.413 |
215.861 |
|
Debt/Equity
ratio |
1.069 |
0.769 |
0.254 |
%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image008.gif)
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
1341.410 |
1424.375 |
1823.129 |
|
|
|
6.185 |
27.995 |
%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image009.gif)
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales |
1341.410 |
1424.375 |
1823.129 |
|
Profit |
5.313 |
106.887 |
191.326 |
|
|
0.40% |
7.50% |
10.49% |
%20PRIVATE%20LIMITED%20-%20494323%2026-Feb-2018_files/image010.gif)
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
Yes |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
No |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
No |
|
21 |
Banking facility details |
No |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last two/ three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
No |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
COMPANIES PERFORMANCE
AND FUTURE ASPECTS:
The Company has established itself as leading manufacturer of MIG Welding wire in domestic Market in India as well as South Asia. The Company has undertaken initiatives for further improving its presence in other markets by improving export sales and expects good growth in sales and profit in the future.
The Company has been able to generate Profit before Tax amounting to INR 191.326 million for the year 2016-17 as compared to previous year of INR 106.887 million, which indicates that the Company is in Fast Forward mode in highly competitive market segment and also when the Industry in India is itself growing at lower Single digit.
In order to enhance the market share of welding Sector in India, Company has a focused approach towards the growing Industry Segments and aligning all its efforts to grab the higher share in those growing segments to beat the competition and grow at higher pace then the Industry in India. In further the Company have striven hard to expanding its business across the globe by exporting products to all round world like Dubai, Thailand, Australia, Bangladesh, Sri Lanka and Indonesia. In further increasing the profit, the Company have various cost cutting measures to mitigate hidden costs and other incidental expenses and has also implemented various other measures to improve operational efficiency.
CORPORATE INFORMATION
('Lincoln' or 'the Company’) is a private limited company incorporated on January 02, 1997 under the provisions of the Companies Act, 1956 and domiciled in India. The Company is a wholly owned subsidiary of Lincoln Electric Cyprus Limited which is in turn a wholly-owned subsidiary of Lincoln Electric Holdings Inc., a public limited company incorporated in the United States and listed on the NASDAQ Stock Exchange.
Lincoln is primarily engaged in the business of manufacture of welding wires. The Company’s manufacturing facility for welding wires is located at Chengalpattu, Kancheepuram District in Tamil Nadu. The Company commenced its commercial production in May 2009.
Lincoln started its trading activities from April 2012. Trading warehouse is located at Chengalpattu, Kancheepuram District in Tamil Nadu.
UNSECURED LOAN
(INR
In Million)
|
Particulars |
As
on 31.03.2017 |
As
on 31.03.2016 |
|
LONG TERM
BORROWING |
|
|
|
Loans and advances from others |
174.175 |
263.085 |
|
Total |
174.175 |
263.085 |
INDEX OF CHARGES: NO
CHARGES EXISTS FOR COMPANY
CONTINGENT
LIABILITIES:
(i) The Company received Sales Tax Assessment Order for Financial Year 2012-13 on June 6, 2015. The Assessing Officer issued demand notice of INR 0.552 million for Non Submission "C" Forms and sales return of FY 2011-12 set off in FY 2012-13. The Company filed an appeal on 10th July 2015 for granting time limit to submit "C" forms. On 12th August 2015, the Appellate Authority grated one month time to submit the pending "C" forms. After submission of "C” form the expected final tax liability of INR 0.211 million which has already been accrued.
(ii) During October 2015, Enforcement Wing Officer, Commercial Tax conducted VAT audit of the company. Subsequent to the audit in December 2015, Company received notice for payment of differential VAT for the FY 2007 - 2015 for INR 638.860 million. In February 2016, Company clarified that VAT is not payable on ground alleged. Subsequently in May 2016 Commercial tax officer clarified certain points and for which Company submitted the relevant documents in June 2016. The Company has received a notice from the department on October 18, 2016 providing clarifications on issues requested by the Company. Subsequent to which, the Company has filed a response on 22nd December 2016 with the Commercial Tax Department. Per best judgment of the company, the expected liability of INR 2.269 million has been accrued.
FIXED ASSETS
- Land
- Building
- Furniture and
Fixture
- Computer
- Plant and
Machinery
- Vehicle
- Office equipment
- Computer
Accessories
- Computer
Software
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 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
|
INR |
|
US Dollar |
1 |
INR 64.82 |
|
|
1 |
INR 90.40 |
|
Euro |
1 |
INR 79.76 |
INFORMATION DETAILS
|
Information
Gathered by : |
AKY |
|
|
|
|
Analysis Done by
: |
VRS |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.