Attachment 1
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Report
Update On |
19th April, 2000 |
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Report on |
ARAT ELECTRO CHEMICALS PRIVATE
LIMITED |
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Formerly Known As |
ARAT ELECTRO CHEMICALS LIMITED |
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Registered Office |
Opp. Lal Bahadur Shahtri Stadium, Near Panna Estate, Bapu Nagar,
Ahmedabad – 380 023, Gujarat, INDIA |
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Tel. No. |
91-79-274 3892 / 274 0275 |
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Fax No. |
91-79-274 3056 |
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E-Mail |
-- |
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Telex |
-- |
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Gram |
HYDROGEN |
Attachment 2
S U M M A R Y
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Incorporated |
1961 |
Status |
Poor |
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Registration No. |
1048 |
Chief Executive |
Mr. Keshavlal R. Shah |
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Capital (Rs.) |
8.640 millions |
Payments |
Delayed |
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Sales (Rs.) |
29.814 millions |
Litigation |
-- |
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Net Worth (Rs.) |
(-) 12.363 millions |
Banking Reputation |
Satisfactory |
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No. of Employees |
54 |
Auditors |
Shantilal K. Shah & Company |
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Credit Rating |
C (See attachment 3) |
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INDUSTRY
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FACTORY
Opp. Lal Bahadur Shahtri Stadium, Near Panna Estate, Bapu Nagar, Ahmedabad – 380 023, Gujarat, INDIA
BRANCH
220 Samuel Street, Kapurwala Building, 3rd Floor, Mumbai – 400 003, INDIA
Tel. No. 91-22-342 3366 / 342 1425 / 344 4816 / 341 0176
Fax No. 91-22-340 1873
HISTORY
The company was incorporated on 7th April, 1961 at Ahmedabad in Gujarat having Company Registration Number 1048.
The company was originally incorporated as a Public Limited company and was converted into a Private Limited company w.e.f. 13th May, 1999.
LEGAL FORM
It is a Private Limited Liability company.
DIRECTORS
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Mr. Keshavlal R. Shah |
Managing Director |
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Mr. Govindji R. Jankharia |
Director |
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Mrs. Prabha K. Shah |
Director |
MAJOR SHAREHOLDERS
Mr. Keshavlal R. Shah
Mr. G. R. Jankharia
Mr. P. R. Shah
BUSINESS
The company is engaged in manufacturing and marketing of Zinc Metal and Zinc Sulphate.
The company produced 5,000 tons of Zinc Metal and 1,200 tons of Zinc Sulphate during the period ended 31st March, 1999. The company’s Zinc Metal producing division is presently closed down.
The unfavourable market conditions continued to be witnessed during financial year 1998-99. The gross turnover of the company for the financial year ended 31st March, 1999 was Rs.29.8 millions compared to Rs.56.7 millions in the previous year indicating a decrease of 47% in the turnover. However, company could achieve Rs.0.82 millions turnover in respect of new products i.e. Zinc Sulphate. The turnover and overall performance suffered very heavy set back owing to the company not being able to achieve full production levels mainly due to non-availability of raw materials.
The operating margins were under pressure due to higher input cost and other fixed expenses. The company continued facing ban of imports of Zinc scrap as per the guidelines issued by Director General of Foreign Trade, Ministry and Commerce. Further, company had to bear very heavy expenses such as retrenchment compensation, gratuity, etc. and a compensation on termination of their services aggregating to Rs.5.430 millions in FY 1997-98. Hence the company had to borrow finance from Directors for their discharging statutory liabilities. Hence the company had to bear financial charges of Rs.0.565 millions during the year.
Further, the company had to bear charges of Rs.0.674 millions due to fixed minimum demand charges even though company was not able to operate at full capacity. Hence cost of production continued to increase as average rate of electricity charges increased from Rs.3.88 per KW to Rs.8.18 per KW, showing an increase of about 111%.
The company had not made any new investment in Jamnagar project. The total investment made upto 31.03.1999 was Rs.0.797 millions. Depreciation shall be claimed on completion of project.
The company’s fixed assets of important value include Industrial Plot of Land (Leasehold), Jamnagar Project, Buildings, Plant & Machinery, Furniture, Fixtures & Equipments and Vehicles.
The company operates from a caption owned office-cum-factory premises.
The company employs 54 persons in its set-up.
SISTER CONCERNS
Nil
BANKERS
K Bank of Inda, Bhadra, Ahmedabad, Gujarat, India
K Standard Chartered Bank, Mumbai, India
K Union Bank of India, Mumbai, India
K Dena Bank, Mumbai, India
K Dena Bank, Gomtipur Branch, Ahmedabad, Gujarat, India
K Dena Bank, Odhav Branch, Ahmedabad, Gujarat, India
K State Bank of Saurashtra, Jamnagar, Gujarat, India
K Nutan Nagrik Sahakari Bank Limited, Maskati Market Branch, Ahmedabad, Gujarat, India
AUDITORS
K Shantilal K. Shah & Company, Chartered Accountants
A/2 Jalvihar Flats, Behind Ajanta Commercial Complex, Ashram Road, Ahmedabad, Gujarat, INDIA
FINANCIAL INFORMATION
The company's latest financial information for the period ended 31st March, 1999 is enclosed herewith.
CAPITAL STRUCTURE
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Authorised Capital : |
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100,000 |
Equity Shares of Rs.100/- each |
Rs.10.000 millions |
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Issued, Subscribed &
Paid-up Capital : |
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86,400 |
Equity Shares of Rs.100/- each |
Rs.8.640 millions |
COMMENTS
Subject company is in bad shape having substantial accumulated losses. The company’s net worth has been eroded. It’s payments are reported as slow and delayed. Ways and means position of the company are difficult.
The company can be considered for any business dealings on safe and secured trade terms and conditions.
No clean credit may be granted.
ABRIDGED BALANCE SHEET AS ON 31ST March, 1999
[figures are in Rupees Millions]
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SOURCES OF FUNDS |
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31.03.1999 |
31.03.1998 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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8.640 |
8.640 |
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2] Reserves & Surplus |
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0.000 |
0.000 |
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LOAN FUNDS |
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1] Secured Loans |
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3.350 |
3.478 |
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2] Unsecured Loans |
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27.648 |
21.267 |
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GRAND TOTAL
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39.638 |
33.385 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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4.056 |
3.967 |
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Capital work-in-progress |
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0.173 |
0.055 |
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INVESTMENTS |
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0.014 |
0.014 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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9.455 |
7.570 |
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Sundry Debtors |
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3.888 |
6.476 |
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Cash & Bank Balances |
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0.426 |
0.231 |
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Loans & Advances |
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13.777 |
15.088 |
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Total Current Assets |
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27.546 |
29.365 |
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Less : |
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Current Liabilities |
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2.797 |
6.266 |
Provisions |
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10.357 |
10.357 |
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Net Current Assets |
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14.392 |
12.742 |
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PROFIT & LOSS ACCOUNT |
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21.003 |
16.607 |
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GRAND TOTAL
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39.638 |
33.385 |
IMPORTANT FINANCIAL INFORMATION FOR LAST TWO PERIODS
[figures are in Rupees Millions]
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PARTICULARS |
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31.03.1999 |
31.03.1998 |
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Sales Turnover |
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29.814 |
56.664 |
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[including other income] |
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Profit/(Loss) Before Tax |
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(4.396) |
(10.158) |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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(4.396) |
(10.158) |
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Dividend |
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0.000 |
0.000 |
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Earnings in Foreign Currency : |
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Export Earnings |
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NA |
NA |
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Other Earnings |
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NA |
NA |
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Total Earnings |
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NA |
NA |
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Imports : |
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Raw Materials |
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NA |
NA |
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Components & Spares |
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NA |
NA |
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Capital Goods |
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NA |
NA |
Total Imports
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NA |
NA |
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Expenditures :
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Manufacturing & Other
Expenses
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25.846 |
50.384 |
Payments to & Provision
for Employees
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0.836 |
8.558 |
Administrative, Selling,
Distribution & Other Exp.
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1.224 |
1.721 |
Income Tax Written-off
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0.951 |
0.000 |
Interest
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4.529 |
3.383 |
Depreciation
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0.566 |
0.505 |
Total Expenditures
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33.952 |
64.551 |
Attachment 3
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SCORE SHEET |
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SCORE |
CREDIT RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an
extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. Maybe drawn to slightly
difficult position as unfavourable conditions arise. Minimal assurance for
timely payment on interest and principal sums |
Moderate |
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26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively limited or considered
not known. Capability to pay both interest and principal sums is doubtful |
Small |
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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 |
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<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |
Attachment 4
INDIA
INDIA, a Union of States, is a Sovereign Socialist Secular Democratic Republic with a Parliamentary System of government. It covers an area of 32872631 sq. km. Population, as on 1st March, 1991 (last counted) stood at 846.30 millions.
The value of total foreign trade increased to Rs.2,778,392.8 millions in 1997-98. During 1997-98, it’s total exports amounted to Rs.1,262,857.6 millions and imports increased to Rs.1,515,535.2 millions.
As on 20th April, 1999, Standard and Poor’s affirmed its ratings for India and said the country’s outlook was stable despite weak coalition governments. S&P affirmed its BB foreign currency and the BBB local currency ratings for India. The B foreign currency and A3 local currency short-term issuer credit ratings were also affirmed. The outlook is stable. Official foreign exchange reserves cover about 165 percent of total government, public sector and private sector external principal-repayment obligations due within the next 12 months. At $32.6 billion as on April 7, 1999, they mitigate the risk of a sudden loss of external confidence even as exports decelerate and the trade gap widens, the agency said.
LEADING EONOMIC INDICATORS
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Outstanding As On |
% Variation Over |
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Banking, M3 & Forex (Rs. mlns.) |
Feb. 26, 1999 |
End-March 1998 |
Financial Year So Far |
Year Ago |
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1997-98 |
1998-99 |
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Aggregate Deposits |
6,983,380 |
6,054,100 |
15.3 |
15.3 |
19.8 |
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Demand Deposits |
1,029,500 |
1,025,130 |
0.2 |
0.4 |
13.4 |
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Time Deposits |
5,953,880 |
5,028,970 |
18.7 |
18.4 |
20.9 |
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Investments |
2,519,660 |
2,187,050 |
12.3 |
15.2 |
17.7 |
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Government Securities |
2,203,170 |
1,869,570 |
14.2 |
17.8 |
21.4 |
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Other Approved Securities |
316,490 |
317,480 |
2.7 |
-0.3 |
-2.3 |
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Bank Credit |
3,547,420 |
3,240,790 |
12.4 |
9.5 |
13.3 |
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Food Credit |
167,320 |
124,850 |
62.4 |
34.0 |
35.6 |
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Non-food Credit |
3,380,110 |
3,115,940 |
11.0 |
8.5 |
12.4 |
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Money Supply M3 (Feb. 26, 1999) |
9,455,060 |
8,253,890 |
13.4 |
14.6 |
18.8 |
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Net Bank Credit to Government |
3,868,200 |
3,306,190 |
11.4 |
17.0 |
20.3 |
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Reserve Bank Credit to
Government |
1,543,690 |
1,351,600 |
5.1 |
14.2 |
18.3 |
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Bank Credit to Commercial
Sector |
4,651,290 |
4,321,900 |
11.8 |
7.6 |
10.6 |
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FOREX (US$ mln.) March 19, 1999 |
312,350 |
293,670 |
7.0 |
6.4 |
10.5 |
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Foreign Currency Assets |
282,560 |
259,750 |
11.1 |
8.8 |
13.7 |
FOREIGN INSTITUTIONAL INVESTMENT IN INDIA
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Financial Year |
Gross Purchases (Rs. mlns.) |
Gross Sales (Rs. mlns.) |
Net Investment (Rs. mlns.) |
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1992-93 |
175 |
40 |
135 |
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1993-94 |
55,927 |
4,665 |
51,262 |
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1994-95 |
76,310 |
28,354 |
47,966 |
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1995-96 |
96,930 |
27,520 |
69,420 |
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1996-97 |
155,540 |
69,804 |
85,746 |
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1997-98 |
186,948 |
127,373 |
59,577 |
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1998-99 |
161,150 |
176,993 |
-15,844 |
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Total |
732,980 |
434,749 |
298,262 |
FOREIGN EXCHANGE RATES
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Currency |
Unit |
Indian
Rupees |
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US Dollar |
1 |
Rs.43.30 |
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UK Pound |
1 |
Rs.67.92 |
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Euro |
1 |
Rs.40.72 |
Attachment 5
ACKNOWLEDGEMENT
Dear Sir/Madam,
As part of our control
system, please fax/email us this note
upon receipt of this report. If we do not receive the acknowledgement within 24
hours, we will assume that our report meets your requirement. If you have any
suggestion to help us improve our reports and services, please do not hesitate
to let us know.
Thank you.
________________________________________________________________________
To : MIRA INFORM PRIVATE
LIMITED
From :
To :
Feedback – Please tick
the appropriate box.
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GOOD |
FAIR |
POOR |
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Further Comments/Suggestion :
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Company’s Stamp &
Signature