MIRA
INFORM REPORT
|
Report Date : |
13.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
SHREE GANESH FORGINGS LIMITED |
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Registered Office : |
5/5A, Kamnawala Chambers, 4th Floor, Sir P. M Road, Fort, Mumbai-400001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.09.1972 |
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Com. Reg. No.: |
11-16008 |
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CIN No.: [Company
Identification No.] |
U17200MH1972PLC06008 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS43499B |
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PAN No.: [Permanent
Account No.] |
AAACS7821E |
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Legal Form : |
A
public limited liability company. The
company’s shares are listed on the Stock Exchange. |
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Line of Business : |
The company is engaged in manufacturing and sale of Flange
Fittings, Automotive Components, Defence & Agriculture Components. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1250000 |
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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 company having satisfactory track. Financial position
is satisfactory. Trade relations are fair. Payments are usually correct and
as per commitments. The
company is doing well. It can
be considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
5/5A, Kamnawala Chambers, 4th Floor, Sir P. M Road, Fort, Mumbai-400001, Maharashtra, India |
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Tel. No.: |
91-22-262 4627 |
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Fax No.: |
91-22-262 5217 |
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E-Mail : |
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Website : |
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Corporate Office & Works : |
C/ 3C, Trans Thane
Creek Induatrial Area, Pawane, Thane Belapur Road, Navi Mumbai-400 705 |
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Tel.
No.: |
91-22-768 1193 / 763 2024 / 763 2026 |
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Fax
No.: |
91-22-767 0267 / 262 5217 |
DIRECTORS
|
Name : |
Mr. Deepak B. Sekhri |
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Designation : |
Chairman Cum Managing Director |
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Date of Birth/Age : |
44
Years |
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Qualification : |
B. Com. |
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Experience : |
24
Year |
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Name : |
Mrs. Anita D. Sekhri |
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Designation : |
Executive Director |
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Date of Birth/Age : |
47
Years |
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Qualification : |
B. A. |
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Experience : |
12
Year |
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Name : |
Mr. Gian Prakash Singh |
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Designation : |
Director
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Name : |
Mr. Albert D' Souza |
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Designation : |
Director
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Name : |
Mr. Pal Uppal |
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Designation : |
Director
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Name : |
Mr. Krishan Kumar Khurana |
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Designation : |
Director
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Name : |
Mr. Anand Vardhan |
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Designation : |
Director
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Name : |
Srabani Sana |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
A Promoter's holding |
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|
|
1 . Promoters* |
|
|
|
- Indian Promoters |
5945119 |
47.56 % |
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- Foreign Promoters |
0,00 |
0.00 % |
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2. Persons acting in concert # |
1554881 |
12.44 % |
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Sub-Total |
7500000 |
60.00 % |
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B. Non-Promoters Holding |
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3. Institutional Investors |
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a. Mutual Funds and UTI |
2194790 . |
17.56 % |
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b. Banks, Financial Institutions, Insurance Companies (Central/ State Govt. Institutions/ Non-government Institutions) |
2000 |
0.02 % |
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Flls |
4395 |
0.04 % |
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Sub-Total |
2201185 |
17.61 % |
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4. Others |
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|
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a. Private Corporate Bodies |
455347 |
3.64 % |
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b. Indian Public |
2201567 |
17.61 % |
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c. NRIs/OCBs |
105910 |
0.85 % |
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d. Any other (Shares in Transit) |
36465 |
0.29 % |
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Sub-Total |
2799289 |
22.39 % |
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GRAND TOTAL |
12500474 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacturing and sale of Flange
Fittings, Automotive Components, Defence & Agriculture Components. |
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Products : |
v
Flange Fittings v
Automotive Components v
Defence & Agriculture Components |
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Export to : |
USA, Canada, U.K., Ireland, Europe ( Germany, Netherlands,
Belgium, Denmark, Spain, France, Greece, Austria, etc ) and Middle East
markets |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Steel and Other Goods |
MT |
-- |
11000 |
3444 |
|
Steel Forgings |
MT |
-- |
-- |
2944 |
GENERAL
INFORMATION
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No. of Employees : |
1500 |
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Bankers : |
Central Bank of India Nariman Point, Mumbai – 400 021, Maharashtra, India State Bank of Indore 214, Empire House, D. N Road, Fort, Mumbai
Branch State Bank Of Hyderabad Overseas Branch, Ashok Mahal, 1204, Tulloch
Road, Colaba, Mumbai-400039 |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
D.R Khanna & Company Chartered Accountants 53-55, Bagdi Niwas, Nath Madhav Path, Khattar
Galli, Mumbai - 400 002 |
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Tel. No.: |
91-22-23888805 |
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Fax No.: |
91-22-23885764 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
13250000 |
Equity Shares |
Rs. 10/-- each |
Rs. 132.500 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,25,00,474 |
Equity Shares |
Rs. 10/-- each |
Rs. 125.005 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
125.005 |
75.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
215.612 |
86.474 |
66.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
340.617 |
161.474 |
116.500 |
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|
LOAN FUNDS |
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|
|
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1] Secured Loans |
273.076 |
134.241 |
102.100 |
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2] Unsecured Loans |
0.000 |
0.000 |
23.100 |
|
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TOTAL BORROWING |
273.076 |
134.241 |
125.200 |
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DEFERRED TAX LIABILITIES |
4.826 |
2.295 |
0.000 |
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TOTAL |
618.519 |
298.010 |
241.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
176.237 |
132.561 |
97.500 |
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Capital work-in-progress |
16.211 |
4.145 |
0.000 |
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INVESTMENT |
3.407 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
358.177
|
193.320 |
136.100 |
|
|
Sundry Debtors |
247.148
|
72.106 |
55.000 |
|
|
Cash & Bank Balances |
107.858
|
18.138 |
17.500 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
132.029
|
87.824 |
36.900 |
|
Total Current Assets |
845.212
|
371.388 |
245.500 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
|
|
|
Current Liabilities |
384.420
|
192.890 |
94.600 |
|
|
Provisions |
44.922
|
18.186 |
6.700 |
|
Total Current Liabilities |
429.342
|
211.076 |
101.300 |
|
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Net Current Assets |
415.870
|
160.312 |
144.200 |
|
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MISCELLANEOUS EXPENSES |
6.794 |
0.992 |
0.000 |
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|
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|
|
|
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TOTAL |
618.519 |
298.010 |
241.700 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
948.648 |
573.502 |
456.800 |
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|
|
|
|
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Profit/(Loss)
Before Tax |
66.930 |
36.227 |
17.900 |
|
Provision
for Taxation |
19.364 |
8.127 |
5.400 |
|
Profit/(Loss)
After Tax |
47.566 |
28.100 |
12.500 |
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|
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Export
Value |
480.439 |
358.731 |
NA |
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Import
Value |
3.351 |
-- |
NA |
|
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|
|
|
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Total
Expenditure |
881.718 |
537.275 |
416.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 1st
Quarter |
30.09.2006 2nd
Quarter |
|
Sales Turnover |
|
235.900 |
307.400 |
|
Other Income |
|
2.300 |
0.500 |
|
Total Income |
|
238.200 |
307.900 |
|
Total Expenditure |
|
214.300 |
265.000 |
|
Operating Profit |
|
23.900 |
42.900 |
|
Interest |
|
7.500 |
8.500 |
|
Gross Profit |
|
16.400 |
34.400 |
|
Depreciation |
|
4.300 |
7.500 |
|
Tax |
|
2.200 |
3.100 |
|
Reported PAT |
|
9.900 |
23.800 |
200606 Quarter 1 –
1. The above results were reviewed and recommended by the
Audit committee for approved by the Board at its meeting held on 30.06.2006. 2.
During the quarter 01.04.2006 to 30.06.2006 status of investor grievances
complaince are pending -Nill, Received -05, Resolved -05 Pending-Nill. 3.
Figures of the previous years are regrouped and rearranged wherever necessary.
4.Auunal General Meeting of the company is rescheduled from 18.08.2006to
22.09.2006,So Printed copy of Annual report with notice proxy form &
Attendance slip will be despatch latest by 28.08.2006 to all members of the
company. 5. Therefore revised books closer date is 16-09-2006 to 22-09-2006
(both the days inclusive ) which is already annoced & Submitted to the
Stock Exchange.
200609 Quarter 2 –
EPS is Basic and Diluted Status of Investor Complaints for
the quarter ended 30.09.2005 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter 4 Complaints disposed off during the
quarter 4 Complaints unresolved at the end of the quarter Nil 1. The above
results as reviewed by audit committee, have been taken on record by the Board
of Directors at its meeting held on 3110.2006. 2. The figures of previous
quartet have been regrouped / rearranged to make them comparable, wherever
considered necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.04 |
1.58 |
2.22 |
|
Long Term Debt-Equity Ratio |
0.16 |
0.14 |
1.29 |
|
Current Ratio |
1.22 |
1.12 |
1.64 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.75 |
3.96 |
4.23 |
|
Inventory |
3.29 |
3.24 |
3.11 |
|
Debtors |
5.69 |
8.40 |
8.55 |
|
Interest Cover Ratio |
2.95 |
2.79 |
2.19 |
|
Operating Profit Margin(%) |
12.77 |
12.47 |
9.86 |
|
Profit Before Interest And Tax
Margin(%) |
11.16 |
10.56 |
8.01 |
|
Cash Profit Margin(%) |
6.85 |
7.17 |
4.88 |
|
Adjusted Net Profit Margin(%) |
5.24 |
5.26 |
3.04 |
|
Return On Capital Employed(%) |
25.56 |
26.71 |
18.71 |
|
Return On Net Worth(%) |
24.22 |
34.29 |
22.81 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.66.50/- |
|
Low |
Rs.63.25/- |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets:
The company’s fixed assets of important value include Land
(Leasehold), Factory Building, Office Flat, Plant & Machinery, Furniture
& Fixture, Office Equipment, Computer and other Vehicles.
Business
The company is engaged in manufacturing and sale of parts and
accessories for motor vehicles and their engines such as brakes, gear boxes, axles,
road, wheels, suspension shock absorbers, radiators, silencers, exhaust pipes,
clutches, steering wheels, steering columns and steering boxes and other parts
and accessories.
Operations
The Company recorded an impressive performance
which is reflecting with the following factors:
62% of Growth in Sales
65% of Growth in EBIDTA
69% of growth in Net Profit
During the year under review, the turnover of the company is Rs. 923.186
Millions as against the previous financial year of Rs.570.925 Millions recording an increase of 62%. The Profit
after tax for the financial year under review is Rs.47.564 Millions against Rs.
28.1 Millions for the corresponding previous financial year recording an
increase of 69 %.
Company Prospects
Shree Ganesh Forgings Limited, is a well recognised
brand name in the Countries like Germany, Netherlands, Belgium, France,
Denmark, Italy, Spain, Greece, U.K, U.S. A, Australia, Canada, as well as
middle east, for its quality products. A major part of the Company's turnover
(around 70%) comes from export of flanges and fittings. Global demand for
Flanges is huge and constantly increasing. The demand mainly generates from the
Gas, Oil, Petrochemicals & Dairy sectors and present investments trends in
these sectors is very high. Our Company mainly focuses on International markets
and our export growth reflects our strategy. The Company is in the process of
enhancement of capacity from 11000 MT to 22800 MT by installing 2500- MT and
4000- MT Forging Press Lines with robotic application and an addition of 54
nos. of automated C.N.C/Robotic Machining Lines. These investments will help
the Company in increasing its output and turnover in the international and
domestic markets.
Future Outlook: For the General Economy(Global
& Indian):
Economic indicators suggest that a global economic recovery is in the
offing. The US economy grew by 3.1% in 2003, surpassing all the other major
developed economies. US economic growth in 2004 is expected to be in the region
of 4.5% to 5%. The Japanese economy that had been in a state of stagnation for
the past six years, registered growth of 2.7% in 2003.China continued on its
blistering growth path, recording GDP growth of 9% in 2003. As regards the
Indian economy, the country recorded GDP growth of 8.2% in 2003-04. This makes
India the second fastest growing economy in the world. This is undoubtedly a
strong platform for the Govt. to launch the next phase of reforms(which in all
probability it will)through which past gains made by the Indian economy can be consolidated
upon and the economy placed on a path of consistent high growth.
SHREE GANESH FORGINGS LIMITED ( SGF ) commenced commercial production in the year 1982 and is managed by a young, dynamic entrepreneur, Mr. Deepak Sekhri ( Managing Director ) and highly qualified / experienced technocrafts. They have been supplying and exporting forged steel pipe flanges, fittings, auto forgings and other forgings to many of the Original Equipment Manufacturers ( OEMs ) in India and abroad in various types of stainless steel, special steel, alloy steel, carbon steel etc.
The strength of SGF is a motivated, dedicated and qualified
experienced team of Engineers, Executives and Skilled work force. Because of
SGF's commitment to quality and good manufacturing practices, its products are
comparable to the best in the world.
SGF's emphasis in on safety of men, machines and protection of
environment. It pursues the objective of customer satisfation through
continuous improvement and excellence in each area.
SGF has wide ranging capacity for manufacturing and supplying
quality forgings in the National and International market.
Shree Ganesh Forgings Limited (SGF) has total current installed
capacity of 25,0000 MT per annum and can execute orders for a wide range of forgings
weighing from 0.5 kg (1.10 lbs) to 1000 kgs. (2200 lbs).
SGF specializes in the manufacture of forgings for the OIL,
Petrochemical, Pharmaceutical, Breweries, Defense, Automobile Industries and
other Original Equipment Manufactures (OEMs).
SGF has plans to increase its capacity and expand its range of
manufactured sizes in the near future by installing bigger forging hammers,
presses and another ancillary machineries. The Company also has plans to set up
manufacturing facilities for other piping components.
Shree Ganesh Forgings Limited (SGF) is totally committed to
quality and their products confirm to the following International standard of
quality.
v
A.N.S.I (America National Standard Institue). This dimensional
standard is regarded as on international applied system and is used throughout
the world, particularly in Latin and North America.
v
EN-1092-1 is a New European Standaard.
v
D.I.N. (Deutsche Industries Norm). A respected and commonly used
international standards.
v
A.S.T.M. (American Society for testing of Material). It is one of
the commonly used international standard for material specification.
v
M.S.S. (Manufacturer’s Standardization Soceity). A commonly
international standard for material specification.
v
J.I.S. (Jpneses Industrial Standard)
v
BS-4504-Section 3.1:1989
v
BS-10:1962
v
AS 2129-2000
v
NFE 29-203-1989
v
ASME B 16.9-2001 Butt Weld Fitting.
v
ASME B 16.11-2001 Screwed & Socket Weld Fittings.
v
EN-1759-1:2004
v
API 6A-2004 Flange Fitting.
v
ASME B 16.47-1996 Large Daimeter Steel Flange.
v
ASME B16.36-1996 Orifice Flange
They provide service to customers in the Automotive Industry, Two
Wheeler Industry, Earth Moving Industry, Tractor Industry and for Defense
application.
They have the proud priviledge of serving major established
undertaking in India. To mention a few, viz,
v
Mahindra & Mahindra Limited ( Tractor Division )
v
Mahhindra & Mahindra Limited ( Automotive Division )
v
Mahindra Sona Limited
v
Voltas Limited
v
Tractor Engineers Limited
v
Greaves Limited
v
Bharat Gears Limited
v
Bharat Earth Movers Limited
v
Ashok Leylands Limited
v
Bhabha Atomic & Research Centre
v
Alfa Level
v
Termox
v
Kirloskar Ebara Limited
v
Fair field atlas Limited
v
Virgo Engg. Limited
v
NPCL
v
BARC
v
Godrej & Boyce Limited
v
KSB Pumps Limited
v
Larsen & Tuburo Limited and many others
Their products also qualify in Europe and other parts of the
world. They have, therefore, been regularly exporting their products to USA,
Canada, U.K., Ireland, Europe ( Germany, Netherlands, Belgium, Denmark, Spain,
France, Greece, Austria, etc ) and Middle East markets.
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.44.75 |
|
UK
Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.57.55 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 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 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|