MIRA
INFORM REPORT
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Report Date : |
18.08.2007 |
IDENTIFICATION DETAILS
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Name : |
AUNDE FAZE THREE AUTOFAB LIMITED |
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Registered Office : |
Plot No. 146, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
03.10.1997 |
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Com. Reg. No.: |
196 |
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CIN No.: [Company
Identification No.] |
L17120DN1997PLC000196 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA20407C |
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PAN No.: [Permanent
Account No.] |
AACCA4981F |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Autofabrics. |
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 986096 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 146, |
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E-Mail : |
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Corporate Office : |
1 – 2, Shiv Smriti Chambers, 49-A, Dr. A B Road, Worli, Mumbai 400
018, Maharashtra, India |
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Tel. No.: |
91-22-66604600 |
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Mobile No.: |
91-9820496150 |
DIRECTORS
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Name : |
Mr. Arvind Anand |
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Designation : |
Managing Director |
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Name : |
Mr. Rolf Konigs |
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Designation : |
Director |
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Name : |
Mr. G G Prabhu |
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Designation : |
Director |
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Name : |
Mr. Kapil Sethi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Gaurav Tongia |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A Promoter’s
Holding |
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1. Promoters |
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Indian Promoters |
4591200 |
42.82 |
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Foreign Promoters |
4591200 |
42.82 |
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2. Persons
Acting in Concert |
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B Non Promoter’s
Holding |
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3. Institutional
Investors |
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a Mutual Funds and UTI |
150 |
0.001 |
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b Banks, FIs, Insurance Cos. (Central / State Government Inst. Non
Govt. Inst) |
150 |
0.001 |
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c Venture Capital Fund |
450 |
0.004 |
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d Fils |
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4. Others |
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a Private Corporate Bodies |
381412 |
3.56 |
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b Indian Public |
1158070 |
10.80 |
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c NRIs / OCBs |
0 |
0 |
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d Any other |
0 |
0 |
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e Clearing Members |
575 |
0.005 |
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Total |
10723207 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Autofabrics. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Autofabric |
Mtrs |
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31.03.2006 |
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NA |
1927500 p. a |
1440122.41 |
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31.03.2005 |
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NA |
1360800 p. a |
905811 |
GENERAL INFORMATION
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Bankers : |
Ř
Canara Bank Ř
IDBI |
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Facilities : |
SECURED LOANS
UNSECURED LOANS
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Majibail and Company Chartered Accountants |
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Associates/Subsidiaries : |
Faze Three Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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11000000 |
Equity shares |
Rs. 10/- each |
Rs. 110.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10723200 |
Equity shares |
Rs. 10/-
each |
Rs. 107.232
millions. |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
107.232 |
107.232 |
107.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
139.292 |
99.141 |
68.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
246.524 |
206.373 |
176.000 |
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LOAN FUNDS |
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1] Secured Loans |
221.723 |
166.474 |
133.800 |
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2] Unsecured Loans |
177.518 |
127.518 |
127.500 |
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TOTAL BORROWING |
399.241 |
293.992 |
261.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
645.765 |
500.365 |
437.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
329.090 |
285.638 |
268.500 |
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Capital work-in-progress |
2.345 |
0.916 |
4.800 |
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INVESTMENT |
0.000 |
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 |
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105.400 |
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Sundry Debtors |
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87.400 |
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Cash & Bank Balances |
374.224
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245.837 |
2.500 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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4.400 |
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Total
Current Assets |
374.224
|
245.837 |
199.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
59.894
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33.409 |
38.400 |
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Provisions |
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|
0.800 |
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Total
Current Liabilities |
59.894
|
33.409 |
39.200 |
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Net Current Assets |
314.330
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212.428 |
160.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
1.383 |
3.500 |
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TOTAL |
645.765 |
500.365 |
437.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Sales Turnover |
630.984 |
378.808 |
347.400 |
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Other Income |
38.296 |
15.411 |
48.000 |
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Total Income |
669.280 |
394.219 |
395.400 |
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Profit/(Loss) Before Tax |
44.312 |
33.286 |
32.400 |
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Provision for Taxation |
4.113 |
2.834 |
2.600 |
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Profit/(Loss) After Tax |
40.199 |
30.452 |
29.800 |
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Imports : |
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Raw Materials |
65.021 |
34.312 |
0.000 |
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Components and spare parts |
1.571 |
0.898 |
0.000 |
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Capital Goods |
25.386 |
22.463 |
0.000 |
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Total Imports |
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Expenditures : |
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Material Cost |
368.647 |
195.863 |
190.400 |
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Employees Cost |
15.770 |
12.385 |
9.800 |
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Operating Expenses |
113.181 |
71.803 |
0.000 |
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Administration and Selling Expenses |
81.973 |
51.713 |
11.600 |
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Interest |
27.002 |
13.179 |
13.500 |
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Depreciation |
18.395 |
15.989 |
13.900 |
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Excise Duty |
0.000 |
0.000 |
50.200 |
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Power and Fuel Cost |
0.000 |
0.000 |
5.700 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
62.600 |
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Miscellaneous Expenses |
0.000 |
0.000 |
5.300 |
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Total Expenditure |
624.968 |
360.932 |
363.000 |
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SUMMARISED RESULTS
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PARTICULARS |
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30.06.2007 |
|
Type |
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Full
Year |
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Sales
Turnover |
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64.46 |
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Other
Income |
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|
0.47 |
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Total
Income |
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64.93 |
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Total
Expenditure |
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53.49 |
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Operating
Profit |
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11.44 |
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Interest |
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|
4.24 |
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Gross
Profit |
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|
7.20 |
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Depreciation |
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|
2.22 |
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Tax |
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|
0.56 |
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Reported
PAT |
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|
4.42 |
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Dividend
(%) |
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0.00 |
KEY RATIOS
|
Year |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Debt-Equity Ratio |
1.53 |
1.45 |
1.50 |
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Long Term Debt-Equity Ratio |
0.91 |
0.88 |
1.06 |
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Current Ratio |
1.66 |
1.53 |
1.63 |
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TURNOVER RATIOS |
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Fixed Assets |
1.58 |
1.07 |
1.07 |
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Inventory |
4.03 |
3.31 |
4.44 |
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Debtors |
4.58 |
3.99 |
4.94 |
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Interest Cover Ratio |
2.64 |
3.52 |
3.40 |
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Operating Profit Margin(%) |
14.25 |
16.50 |
17.21 |
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Profit Before Interest And Tax Margin(%) |
11.33 |
12.28 |
13.21 |
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Cash Profit Margin(%) |
9.29 |
12.28 |
12.58 |
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Adjusted Net Profit Margin(%) |
6.37 |
8.05 |
8.58 |
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Return On Capital Employed(%) |
12.49 |
9.97 |
11.55 |
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Return On Net Worth(%) |
17.76 |
15.96 |
18.50 |
LOCAL AGENCY FURTHER INFORMATION
Contingent
Liability:
|
|
2006 (in Millions) |
2005 (in Millions) |
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Bank Guarantees |
1.500 |
1.500 |
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Foreign letter of Credits |
14.977 |
12.231 |
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Estimated amount of contracts remaining to be executed on capital
account no provided for |
11.679 |
24.367 |
Turnover
The Company has achieved a total turnover of Rs. 630.984 Millions as compared to
Rs. 381.360 Millions in 2004-05, thus registering a year on year growth of
about 65%.
Profit
The Company has earned gross profit of Rs. 44.312 Millions as against Rs. 33.286 Millions in 2004-05 and profit after tax of Rs. 40.199 Millions as compared to Rs. 30.452 Millions in 2004-05.
Return on Capital Employed
The return on Capital employed continued to record consistent
increase and was 13.44% during the year under review as compared to 8.99%
during the previous year.
Expansion Program Undertaken
The Company is planning an expansion program of Rs 386.5 Millions for which
additional land (admeasuring 12.64 acres) in Saregam;
The expansion also includes acquisition and installation of additional Dobby
& Jacquard Looms, Warping Machine, Cut & Sew Machines, utilities and
other equipments. This expansion will be partly funded through their bankers
and margin money through internal accruals.
Shifting Of
Registered Office
The Registered Office of the Company was presently situated in the State of
Accordingly, pursuant to Section 192A of the Companies Act, 1956 read with the
Companies (Passing of the Resolution by Postal Ballot) Rules, 2001, consent of
the members was accorded by means of voting by Postal Ballot in respect of
shifting of Registered Office from the State of Maharashtra to Union Territory
of Dadra & Nagar Haveli i.e. within the jurisdiction of the Registrar of
Companies, Gujarat at Ahmedabad. The result of the postal ballot was declared
on 10th March 2006 at the registered office and the said resolution was
approved by requisite majority. The shifting of Registered Office from one
State to the other was subsequently confirmed by the Company Law Board, Western
Region Bench, Mumbai vide their order dated 5th June 2006. The registered
office of the Company has been, thus shifted from 102, Shiv Smriti Chambers,
49-A, Dr. Annie Besant Road, Worli, Mumbai - 400 018 to Plot No. 146, Waghdhara
Village, Dadra - 396191 at Union Territory of Dadra & Nagar Haveli with effect
from 29th June 2006. The New Corporate Identity Number (CIN) allotted to the
Company on the said shifting of Registered Office is
L17120DN1997PLC000196.
Economy &
Business Overview
The Indian economy continued to post a relatively high growth rate in the year
being reported. The growth is likely to continue in future also with RBI
revising its FY07 GDP growth target from 7.5-8% to 8% considering that no major
fiscal measures are likely to be introduced that would slow down the economy.
The automotive industry has seen double-digit growth over the past two years
though witnessed a slow-down in its growth rate to around 8% due to
uncertainties in emission legislation in the first quarter of the year, arid
lower number of new model introductions of passenger cars. The industry however
did see an upturn towards the end of the year following the announcement by the
Government of reduction in excise duty on small cars.
The Company being primarily dependent on Auto segment was accordingly benefited
by the said upturn in the Auto segment. The Company enjoys sizeable market
share in woven auto fabric segments. It is a major supplier of automobile
fabrics for OEM's like Hyundai, Maruti-Suzuki, Mahindra, General Motors, and
Ford & Volvo Bus. Further the Company is supplying fabrics for Bus segment
in North and auditorium fabrics. In addition to this, the Company is a
registered supplier for aviation sector and is registered with the Director
General of Civil Aviation & also registered suppliers for Railways and
registered with Integrated Coach Factory, Kapurthala.
Recently the Company has bagged an order for supply of fabric to Maruti's Alto
Limited Edition vehicle. Also recently the samples of the Company have been
approved for Bolero. model of Mahindra and negotiations are in advanced stages.
Further Hyundai, General Motors & Maruti are expanding their capacities,
hence there is a need to increase their capacities as well.
Further the company has submitted quotations for the export of auto fabric to
GMDAT,
Further due to opening up of private airlines from
Risk and Concerns
The later part of the fiscal 2005-06 witnessed tightening of liquidity position
and firming up of interest rates in the country (especially short term). Increasing
interest rates is likely to affect vehicle demand which could have an adverse
impact on the Company's revenues and profits as the Company is primarily
dependent on Auto segment.
Further the Management is diversifying the activities of the Company and is exploring other avenues available for growth and development to reduce the impact of reduce the impact of cyclicality of Auto segment. by strengthening its less cyclical businesses like buses, trucks, commercial vehicles and also by growing share of sales in Auditorium, Multiplexes, Railways and Aviation etc.
Expansion/enhancement: The Company currently is in midst of executing expansion
/ enhancement of existing capacities. Though the Company has taken every
possible step to forecast the demand, accurately, the same is subject to margin
of error, which could affect its business.
Fixed Assets
Ř
Land
Ř
Building
Ř
Plant
and Machinery
Ř
Furniture
and Fixtures
Ř
Office
Equipments
Ř
Electrical
Installation
Ř
Vehicles
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 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.41.57 |
|
|
1 |
Rs.87.14 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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. |
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 |
|