MIRA
INFORM REPORT
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Report Date : |
01.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
HAPPY
FORGINGS PRIVATE LIMITED |
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Registered Office : |
B-XXIX-2254/1,
Kanganwal Road, Post Office Jugiana, Ludhiana – 141120, Punjab, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
02.07.1979 |
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Com. Reg. No.: |
16-4008 |
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CIN No.: [Company
Identification No.] |
U28910PB1979PLC004008 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDH00525A |
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PAN No.: [Permanent
Account No.] |
AAACH4369J |
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Legal Form : |
Closely
Held Public Limited Liability Company. |
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Line of Business : |
Manufacturer
of Forge Products and all types of Heavy Forging. |
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 : |
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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 : |
B-XXIX-2254/1,
Kanganwal Road, Post Office Jugiana, Ludhiana – 141120, Punjab, India |
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Tel. No.: |
91-161-2511423
/ 2510421 / 2510522 |
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Mobile No.: |
91-9814216313 |
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Fax No.: |
91-161-2510050 |
DIRECTORS
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Name : |
Mr
Paritosh Kumar Garg |
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Designation : |
Managing
Director |
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Name : |
Mr
Chanan Ram Garg |
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Designation : |
Executive
Director |
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Name : |
Mr
Chanan Ram Garg |
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Designation : |
Executive
Director |
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Name : |
Ms
Sheena Garg |
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Designation : |
Executive
Director |
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Name : |
Mrs
Suman Garg |
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Designation : |
Executive
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
of Forge Products and all types of Heavy Forging. |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Rough Steel Forging and Auto Parts |
Matrix Tonnes |
NA |
31.03.2005 - 20000 31.03.2004 - 14000 |
31.03.2005-12567.8 31.03.2004-10397.2 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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Bankers : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Gupta
Sharma and Associates Chartered
Accountants |
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Associates : |
A G
Exports |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
60,00,000 |
Equity
Shares |
Rs 10/- each |
Rs 60.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
58,87,270 |
Equity
Shares |
RS 10/- each |
Rs 58.872 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
58.873 |
44.491 |
43.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
99.850 |
47.899 |
35.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
158.723 |
92.390 |
78.700 |
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LOAN FUNDS |
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1] Secured Loans |
276.336 |
114.487 |
91.200 |
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2] Unsecured Loans |
17.504 |
13.232 |
7.000 |
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TOTAL BORROWING |
293.840 |
127.719 |
98.200 |
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DEFERRED TAX LIABILITIES |
29.673 |
20.541 |
0.000 |
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TOTAL |
482.236 |
240.650 |
176.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
168.393 |
97.692 |
89.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.100 |
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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 |
188.252 |
120.958 |
71.800 |
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Sundry Debtors |
152.720 |
92.942 |
77.600 |
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Cash & Bank Balances |
9.470 |
2.666 |
2.700 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
14.248 |
14.289 |
8.100 |
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Total Current Assets |
364.690 |
230.855 |
160.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities and Provisions |
53.973 |
88.949 |
73.800 |
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Total Current Liabilities |
53.973 |
88.949 |
73.800 |
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Net Current Assets |
310.717 |
141.906 |
86.400 |
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MISCELLANEOUS EXPENSES |
3.126 |
1.052 |
1.400 |
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TOTAL |
482.235 |
240.650 |
176900 |
PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover [including other income] |
996.916 |
625.060 |
403.500 |
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Profit/(Loss)
Before Tax |
93.916 |
29.281 |
8.700 |
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Provision
for Taxation |
33.908 |
10.616 |
2.700 |
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Profit/(Loss)
After Tax |
60.008 |
18.665 |
6.000 |
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Export Value |
17.101 |
0.000 |
NA |
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Total
Expenditure |
890.494 |
585.699 |
NA |
KEY
RATIOS
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PARTICULARS |
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31.03.2005 |
31.03.2004 |
31.03.2003 |
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PAT / Total Income |
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6.02
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2.98 |
1.49 |
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Net
Profit Margin(PBT/Sales) |
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9.42
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4.68 |
2.15 |
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Return
on Total Assets(PBT/Total Assets} |
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17.61
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8.91 |
3.49 |
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Return
on Investment (ROI)(PBT/Networth) |
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0.59 |
0.31 |
0.11 |
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Debt
Equity Ratio(Total Liability/Networth) |
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2.19 |
2.34 |
2.18 |
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Current
Ratio(Current Asset/Current Liability) |
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6.75
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2.59 |
2.17 |
LOCAL AGENCY
FURTHER INFORMATION
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A Term Loan |
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Rs in Millions |
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From Financial
Institutions I.D.B.I. Chandigarh - MTL II |
0.00 |
16.964 |
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From Banks |
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ABN
Amro Bank Limited – car Loan |
0.474 |
1.010 |
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ICICI Bank
Limited – Car Loans |
3.724 |
1.687 |
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ING Vysya
Bank Ltd. - Machinery T/L |
0.000 |
16.657 |
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State Bank of
Bikaner & Jaipur T/L I |
10.368 |
0.000 |
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State Bank of
Bikaner & Jaipur T/L II |
23.907 |
0.000 |
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State Bank of
Bikaner & Jaipur T/L III |
34.496 |
0.000 |
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State Bank of
Bikaner & Jaipur C.L I |
11.332 |
0.000 |
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B Cash
Credit Limits : |
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From Banks: |
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State Bank of Bikaner & Jaipur C/C Hyp. &
Book Debt |
192.029 |
0.000 |
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The Vysya Bank Ltd. C/C Hyp. & Book Debt |
0.000 |
78.167 |
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276.336 |
114.487 |
Fixed Assets
- Land
- Building
- Plant and Machinery
- Furniture
- Scooter
- Car
- Office Equipments
- Electric Fittings
- Generator
- Work Lifter
- Building U/ Construction
- Busher Type Furnace U/In
- Land at G T Road Ludhiana
The Company had
revalued fixed assets by Rs.18.955 Millions during the year 1993-94 &
1994-95 by
crediting the
equal amount to capital reserves. Out of this an amount of Rs. 18.939 Millions
had been utilized by the company for issue of 1893900 equity shares of Rs.10/-
each. Further out of that revalued amount of Rs.18.955 Millions, the company had already recovered an amount
of Rs. 10.808 Millions on sale of such fixed assets during the year 1999-2000.
Accordingly an amount of Rs.8.146 Millions is still pending out of the revalued
amount of Rs.18.955 Millions and is reflected by the increased book value of
Land at Kanganwal by the equal amount.
Except in so for as mentioned above Fixed
assets are stated at actual cost. The actual cost is inclusive of, freight,
installation, duties, taxes and other incidental expenses but net of Cenvat
credit received and
receivable in coming financial years.
Financial cost of Rs.1.346 Millions relating to borrowed funds attributable to
the period before the assets was put to use is included in the value of
respective fixed assets.
Depreciation:
Depreciation on
the assets of the company has been provided for on straight-line basis at the
rate
determined by
the management considering the useful life of the assets as follows:
Plant &
Machinery 7.50%
Building 10.00%
Furniture &
Fixtures 10.00%
Office
Equipment & Misc. Fixed Assets 10.00%
Depreciation on
additions to assets is calculated pro-rata from the month in which such assets
are actually put to use.
Contingent
Liabilities not provided for:
a) Excise duty disputed by the company Rs.
0.196 Millions (Rs.0.350 Millions)
b) Bills discounted with banks Rs.56.418
Millions (Rs.48.566 Millions).
c) An appeal preferred by the Company before
the CIT (A) was decided in its favour. The
department has agitated the matter before the
Income Tax Appellate Tribunal. The financial
implications of the matter, in the case the
issue is decided against the Company, is estimated to be
Rs.,2.382 Millions (Rs.2.382 Millions). The
Company is hopeful of succeeding before the IT AT also.
Secured Loans:
a) State Bank of Bikaner & Jaipur
C/C (Hyp. and Book Debts) and Corporate Loan is primaril secured by:
Hypothecation of all current assets including raw materials,
Stock-in-process, finished goods,
stores and spares, Book Debts etc. and
collaterally secured by 2nd Charge on all the fixed
assets of the company of Kanganwal Unit
including factory land and building measuring
around 16770 sq. yards only.
b) State Bank of Bikaner & Jaipur MTL -I,
II & HI are primarily secured by:
First
& exclusive charge on all the fixed assets of the company at Kanganwal Unit
(including
factory land measuring around 16770 sq. yards
only in the name of company along with
building constructed thereon at Kanganwal Road,
PO Jugiana Ludhiana and collaterally
secured by 2nd charge on the entire current
assets of the company.
All the above loans are collaterally secured by
the Land of the Company measuring around 7653.25 sq.
yards only situated at village Pawa, Main G.T.
Road, Ludhiana which is included in Land of Unit
situated at G T Road, Ludhiana in Schedule 4.
All the above loans are further secured by the
personal guarantees of all the executive directors of the
Company except Ms. Sheena Garg and third party
guarantee of Mr. Parveen Kumar Garg.
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.44.17 |
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UK
Pound |
1 |
Rs.86.60 |
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Euro |
1 |
Rs.57.25 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
49 |
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 |
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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 |
|
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 |
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