MIRA INFORM REPORT
|
Report Date : |
16th May 2006 |
IDENTIFICATION DETAILS
|
Name : |
ARFEES INDUSTRIES
LIMITED |
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Registered Office : |
S. No. 86, Moje Vadila,
Saras Village Road, Village Orma, Taluka Olpad, District
Surat – 394 540, Gujarat, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
27/11/2002 |
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CIN No.: |
U24294GJ20002PLC041591 |
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Com. Reg. No.: |
04-41591 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
SRTA01228D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers,
wholesalers, importers and exporters
of polyester partially oriented yarn and wholesaler of grey, dyed and
oriented yarn. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 425000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track. Trade
relations are fair. General financial position is satisfactory. Payments are
usually correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
term and conditions. |
LOCATIONS
|
Registered Office /
Factory : |
S. No. 86, Moje Vadila, Saras Village Road,
Village Orma, Taluka Olpad, District
Surat – 394 540. |
|
Tel. No.: |
91- 2621- 220366,
2203667 |
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Fax No.: |
91- 2621- 220368 |
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Mobile : |
91-9377887788 (Mr. Tushar Patel, General Manager) |
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E-Mail : |
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Website : |
http://www.arf
ees.com |
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Area : |
Owned
– 28632 sq. mtrs Built
up area 264630 sq. fts. |
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|
|
|
Head Office : |
‘Arif Cottage’, 1st
floor, 223, Sheriff Devji
Street, Mumabi – 400 003. |
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Tel. No.: |
91- 22- 23421202,
3097040. |
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Fax No.: |
91- 22- 23423739. |
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Area : |
1200
sq. fts. |
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|
|
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Administrative Office / Corporate Office : |
‘GURUKRUPA HOUSE’, 1st
floor, 21st Century
Business Centre, Near World Trade Centre,
Ring Road, Surat – 395
002. |
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Tel. No.: |
91- 261- 2347722,
2347733 |
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Fax No.: |
91- 261- 2347755 |
|
Area : |
Owned
– 2000 sq. fts. |
DIRECTORS
|
Name : |
Mr. Abir Haji Arif
Noorani |
|
Designation : |
Whole Time Director |
|
Address : |
Shalimar Apartment, Shalimar Society, Adajan
Patia, Surat – 395 0053. |
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Tel No: |
0261- 2347722 |
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Email : |
info@arfees.com |
|
Date of Birth - Age : |
20/04/1972 - 34 years |
|
Qualification : |
Diploma in Entrepreneur Management |
|
Date of Appointments : |
27-11-2002
|
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Experience : |
13 years |
|
|
|
|
Name : |
Mr. Tufail
Haji Arif Noorani |
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Designation : |
Director |
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|
|
|
Name : |
Mr. Zakki
Haji Iqbal Noorani |
|
Designation : |
Director |
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|
Name : |
Mrs. Ateka Abir Noorani |
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Designation : |
Director |
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Name : |
Mrs. Mohibba Zakki Noorani |
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Designation : |
Director |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mrs. Asfoon Noorani |
1813400 |
23.07 |
|
Mr. Abir Noorani |
1225000 |
15.59 |
|
Mrs. Ateka Noorani |
130000 |
1.65 |
|
Mr. Azaz Noorani |
30000 |
0.38 |
|
M/s. Chistia Synthetics Ltd. |
400000 |
5.09 |
|
M/s. Fancy Synthetics Ltd. |
420000 |
5.34 |
|
Gujarat Sicco Textiles Pvt. Ltd. |
360000 |
4.59 |
|
Iqbal Synthetics Pvt. Ltd. |
401000 |
5.10 |
|
Mr. Khairoonbhai Noorani |
1546000 |
19.66 |
|
Mrs. Mobibba Noorani |
641500 |
8.16 |
|
Mr. Nakib Noorani |
733100 |
9.33 |
|
Mr. Tufail Noorani |
90000 |
1.15 |
|
Mr. Zakki Noorani |
30000 |
0.38 |
|
Zenab Noorani Pvt. Ltd. |
40000 |
0.51 |
|
Total |
7860000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
wholesalers, importers and exporters
of polyester partially oriented yarn and wholesaler of grey, dyed and
oriented yarn. |
|
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Imports from : |
Taiwan,
Hungary and Indonesia |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash,
Sight L/ and Credit |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Polyester Oriented Yarn
(POY) |
MTS per annum |
31688 |
15844 |
GENERAL INFORMATION
|
Customers : |
Buying
Agents, Manufacturers and Trading Firms
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No. of Employees : |
Total
170 :- at location 84 people + across country 86 |
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Bankers : |
Andhra
Bank, Nanpura Branch Surat |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
M/s. Parry & Co., Chartered Accountants, 102, Navrang Apartments,
Near Panna Tower, New Rander Road, Surat –
395 009. |
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Tel. No.: |
91-261- 2695671, |
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Mobile No.: |
91- 9825149055 |
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Group Company: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7860000 |
Equity
shares |
Rs. 10 each |
Rs. 78.600 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
Issued, Subscribed Capital |
|
|
|
7860000 |
Equity
shares |
Rs. 10 each |
Rs. 78.600 millions |
|
|
Paid-up Capital |
|
|
|
7860000 |
Equity
shares |
Rs. 10 each |
Rs. 78.600 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
78.600 |
78.600 |
|
|
2] Retained earnings Shares |
28.078 |
28.078 |
|
|
3] Reserves & Surplus |
2.846 |
0.058 |
|
NETWORTH
|
109.524 |
106.736 |
|
|
LOAN FUNDS |
|
|
|
|
1] Long Terms Secured Loans |
-- |
-- |
|
|
2] Long Terms Unsecured
Loans |
62.975 |
-- |
|
3) Short Term Secured Loans
|
100.480
|
79.744 |
|
4) Short Term Unsecured Loans
|
2.873
|
0.049 |
|
TOTAL
BORROWING
|
166.328 |
79.793 |
|
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DEFERRED TAX LIABILITIES |
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|
|
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|
|
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TOTAL
|
275.850 |
186.529 |
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APPLICATION OF FUNDS
|
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|
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FIXED ASSETS [Net Block]
|
197.385 |
136.901 |
|
Capital work-in-progress
|
1.787 |
34.321 |
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INVESTMENT
|
-- |
-- |
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DEFERREX TAX ASSETS
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
52.080
|
22.833 |
|
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Sundry Debtors
|
52.599
|
2.895 |
|
|
Cash & Bank Balances
|
12.713
|
0.081 |
|
|
Other Current Assets
|
12.513
|
14.985 |
|
|
Loans & Advances
|
0.000
|
0.000 |
Total Current Assets
|
129.905
|
40.794 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
Sundry Creditor
|
51.542
|
24.624 |
|
|
Provision for Taxes
|
0.477
|
0.011 |
|
|
Others Provisions
|
0.389
|
0.822 |
|
|
Current Liabilities
|
0.819
|
0.030 |
Total Current Liabilities
|
53.227
|
25.487 |
|
Net Current
Assets
|
76.678
|
15.307 |
|
|
|
|
|
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MISCELLANEOUS EXPENSES
|
-- |
-- |
|
|
|
|
|
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TOTAL
|
275.850 |
186.529 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
635.524 |
13.175 |
NA |
|
|
|
|
|
Profit/(Loss) Before Tax
|
5.609 |
0.125 |
NA |
Provision for Taxation
|
-- |
-- |
NA |
Profit/(Loss) After Tax
|
5.609 |
0.125 |
NA |
|
|
|
|
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Import Value
|
72.502 |
71.881 |
2.651 |
|
|
|
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Total Expenditure
|
62.991 |
13.050 |
NA |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
|
0.882 |
0.948 |
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|
Net Profit Margin
(PBT/Sales) |
(%) |
|
0.882 |
0.976 |
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Return on Total Assets
(PBT/Total Assets} |
(%) |
|
2.346 |
0.058 |
|
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Return on Investment (ROI)
(PBT/Networth) |
|
|
0.051 |
0.001 |
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Debt Equity Ratio
(Total Liability/Networth) |
|
|
0.635 |
0.986 |
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Current Ratio
(Current Asset/Current
Liability) |
|
|
2.440 |
1.600 |
LOCAL AGENCY FURTHER INFORMATION
History
M/s.
Arfees Industries Ltd. is promoted by Mr. Abir Haji Arif Noorani, an
experienced
entrepreneur
in the year 2002. The company was incorporated with Registrar of Companies,
Gujarat
on 27-11-2002 at Sr. No. 04- 41591 having its Registered Office/ Works at
Village
Orma,
Tal. Olpad, District Surat, Head Office at Arif Cottage, 1st floor,
223, Sheriff Devji Street,
Mumbai
– 400 003 and Administrative and Corporate Office is at Gurukripa House, 1st
floor,
Ring Road, Surat. The company is engaged in manufacturing of Synthetic Yarns
i.e.
Polyester
Partially Oriented Yarn and also trading in Grey, Dyes and Oriented Yarns.
AS PER WEBSITE
ARFEES AT A GLANCE
Arfees
Industries Ltd. (AIL) is closely held public limited company promoted by
Chistia and Zenab Group of Surat engaged in manufacturing of textiles since
last many years.
Andhra Bank,
Nanpura Branch, Surat is the sole banker of AIL. AIL has set up a
state-of-the-art POY (Partially Oriented Yarn) manufacturing plant with 6
manufacturing lines having production capacity of 1800 M.T. per month with the
support of the Bank at Survey No. 86, Village Orma, Tal. Olpad, Dist. Surat.
AIL has made
its manufacturing lines operative during 2004-05. The promoters of the company
are in the business since 1982 having experience of more than 20 years in this
field of manufacturing and marketing of texturised and draw twisted yarn and
other value added products in the field of synthetic textiles.
The promoters
are utilizing the POY manufactured by the company for onward value additions in
different units and accordingly, it is a project which is partly a captive
consumption based set up of the group.
AIL now has
carried out expansion in its production capacity by installing 320 winders on
existing manufacturing lines making the production capacity of 3000 MT per
month.
Team/People:
They work together as team to achieve its goals.
Following are its leaders and key personnel:
|
Name |
Designation |
Department |
|
Shri Abir Noorani |
Director |
|
|
Shri Tufail Noorani |
Director |
|
|
Shri Zakki Noorani |
Director |
|
|
Shri Nakib Noorani |
Special Advisor to Board |
|
|
Shri Ramesh Doshi |
Vice President |
Works |
|
Shri Tushar Patel |
General Manager |
Comm.& Admn. |
|
Shri P. K. Shrivastav |
DGM |
Works |
|
Shri Hiren Burkhawala |
DGM |
Purchase |
|
Shri Niraj Verma |
Sr. Manager |
Production |
|
Shri G. N. Dave |
Sr. Manager |
Electrical |
|
Shri A. K. Verma |
Sr. Manager |
Instrumentation |
|
Shri M. C. Kohli |
Sr. Manager |
Quality Control |
|
Shri K. K. Shukla |
Manager |
Mechanical |
|
Shri Rajesh Chhabra |
Manager |
Instrumentation |
|
Shri Kuldeep Singh |
Manager |
Production |
|
Miss Hina Sadrani |
Company Secretary |
Secretarial |
They
own the most precious asset of our committed human resources dedicated
to work. Its relationship and trust is the foundation of its growth. They
believe
in people and they bet on people. Apart from above, they have the team of 100
plus
other staff who contributes our growth.
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N. B.:
Deniers manufactured as per the demand
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 records 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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.45.39 |
|
UK
Pound |
1 |
Rs.85.88 |
|
Euro |
1 |
Rs.58.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
TOTAL |
|
46 |
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
|
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 |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
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 |