MIRA
INFORM REPORT
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Report Date : |
09.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
HI
TECH INVESTMENT CASTINGS LIMITED |
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Registered Office : |
Plot no. 204/A, Phase-II, G.I.D.C. Estate, S.No.81P&82P, Sihor-364240, Bhavanagar, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.04.1989 |
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Com. Reg. No.: |
04-12127 |
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CIN No.: [Company
Identification No.] |
U27320GJ1989PLC012127 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMH01079B |
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Legal Form : |
Closely held public limited liability
company |
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Line of Business : |
Business of Polymers and Industrial
Products |
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
225000 |
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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 fine track. Trade relations
are fair. Financial position is satisfactory. Payments are usually correct
and as per commitments. The
company is faring well. It can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office/ Factory : |
Plot no. 204/A, Phase-II, G.I.D.C. Estate, S.No.81P&82P, Sihor-364240, Bhavanagar, Gujarat, India |
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Tel. No.: |
91-2846-222427/
223923/ 223924 |
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Fax No.: |
91-2846-222971/
2202854 |
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E-Mail : |
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Website : |
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Area : |
4709.87 Sq.Mtrs. |
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Location : |
Owned |
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Factory
1 : |
306, Madhav Complex, Shastri Nagar, Bhavnagar - 364 003, Gujarat,
India. |
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Tel.
No.: |
91-278-421035/426204 |
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Fax
No.: |
91-278-413199 |
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Area : |
2000 Sq. ft. |
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Location : |
Owned |
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Factory
2 : |
Plot no. 256, CST No.494, Ward No.01 Shed No.62, Bhavnagar-Rajkot Road, Sihor. |
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Area : |
668.56 Sq.Mtrs. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Kishore Kumar Bhikalal Virani |
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Designation : |
Director |
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Address : |
64, Kumudwadi, Snanta Bhavan, Near Railway Hospital, Bhavnaga-364002, Gujarat, India. |
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Date of Birth/Age : |
28.12.1952 |
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Date of Appointment : |
17.04.1989 |
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Name : |
Mr. Vikas Manilal Shah |
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Designation : |
Director |
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Address : |
Plot No.1577 A, Mangal, Champa Park, Rupani, Bhvnagar-364002, Gujarat, India |
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Date of Birth/Age : |
28.09.1954 |
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Date of Appointment : |
07.05.1996 |
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Name : |
Mr. Tarun Kapurchand Vora |
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Designation : |
Technical Director |
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Address : |
11, Varsha Society, Subhash Nagar , Bhavnagar-364001, Gujarat, India. |
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Date of Birth/Age : |
19.05.1960 |
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Date of Appointment : |
17.04.1989 |
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Name : |
Mr. Jatin Bhupendra Bhai Thakkar |
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Designation : |
Managing Director |
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Address : |
1248, Mangal, Ghogha Circle, Bhavnagar-364001, Gujarat, India. |
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Date of Birth/Age : |
26.03. 1957 |
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Date of Appointment : |
17.04.1989 |
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Name : |
Mr.
Rajiv Vaidya |
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Designation : |
Manager
- Marketing |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
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Mr.
Kishor Kumar Bhikhalal Virani |
1 |
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Mr.
Haset Mehta |
1 |
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Mr.
Tarun Vora |
1 |
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Mr.
Jatin Thakkar |
1 |
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Total |
4 |
BUSINESS DETAILS
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Line of Business : |
Business of Polymers and Industrial
Products |
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Products : |
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Exports to : |
USA, Japan, Ireland, Germany and
Singapore |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
-- |
PRODUCTION
STATUS
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Particulars |
Unit |
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Actual Production |
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Castings and Machinery Parts |
Kg. |
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339310.146 |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
State Bank of Saurashtra, Krishna Nagar Branch, Bhavnagar - 364 009, Gujarat State
Bank of Saurashtra, Nilambaug Chowk Branch, Nilambaug Circle, Bhavnagar,
Gujarat HDFC
Bank Limited |
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Facilities : |
Secured Loans :
Unsecured Loan :
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Banking Relations : |
Satisfactory |
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Auditors : |
Jatin Parekh & Associates Chartered Accountants, B-705, 7th Floor, Nirman Complex, Opposite Havmor Restaurant, Navrangpura, Ahmedabad-380009, Gujarat |
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Associates/Subsidiaries : |
v Karp Lease & Finance Private Limited v Golden Plastic Industries, Sihor |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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2500000 |
Equity Shares |
Rs. 10/- each |
Rs. 25.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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1171100 |
Equity Shares |
Rs. 10/- each |
Rs. 11.711 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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11.711 |
11.711 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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44.092 |
31.439 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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55.803 |
43.150 |
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LOAN FUNDS |
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1] Secured Loans |
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23.419 |
12.569 |
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2] Unsecured Loans |
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3.741 |
4.752 |
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TOTAL BORROWING |
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27.160 |
17.321 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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82.963 |
60.471 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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50.918 |
34.574 |
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Capital work-in-progress |
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0.314 |
0.000 |
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INVESTMENT |
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0.006 |
0.006 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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10.825 |
9.007 |
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Sundry Debtors |
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41.480 |
33.995 |
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Cash & Bank Balances |
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1.025 |
1.182 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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12.878 |
9.937 |
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Total Current Assets |
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66.208 |
54.121 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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21.503 |
16.948 |
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Provisions |
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12.980 |
11.282 |
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Total Current Liabilities |
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34.483 |
28.230 |
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Net Current Assets |
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31.725 |
25.891 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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82.963 |
60.471 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover [including other income] |
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164.036 |
129.017 |
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Profit/(Loss)
Before Tax |
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22.145 |
15.567 |
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Provision
for Taxation |
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7.473 |
5.834 |
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Profit/(Loss)
After Tax |
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14.672 |
9.733 |
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Export
Value |
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120.389 |
96.242 |
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Import
Value |
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1.634 |
0.908 |
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Total
Expenditure |
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141.891 |
113.450 |
KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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8.94 |
7.54 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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13.50 |
12.06 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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18.90 |
17.55 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.39 |
0.36 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.10 |
1.05 |
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Current
Ratio (Current
Asset/Current Liability) |
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1.92 |
1.92 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of
charges
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Name of the company |
HI-TECH
INVESTMENT CASTINGS LIMITED |
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Presented By |
Mr. Jatin B.
Thakkar |
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1) Date and description of instrument creating the change |
Memorandum of Deposit of Title Deeds dated 16.12.1998 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.23.450 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Immovable properties of the company such as land and building situated at Leasehold Plot No.204/A, Phase II, GIDC Estate, S. No.81P, Adm.470987 Sq.Mts. at Sihor Leasehold Plot No.256, Adm.668.56 Sq.Mts. Bearing CTS No.494 Ward No.1, Sheet No.62 at Bhavnagar, Rajkot Road, Sihor |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The securities described in Col. No.3 covered the following finance availed by the company.
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Saurashtra, Nilambaug Chawk Branch, Bhavnagar. |
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6) Date and brief description of instrument modifying the charge |
Bank certificate dated 07.01.2004 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Principal charge of Rs.23..450 millions on 16.12.1998 more subsequently modified for Rs.28.850 millions on 28.07.1991 for Rs.24.260 millions on 08.09.2000 for Rs.29.156 millions on 05.01.2004 is now further modified and reduced due to MTL for Rs.0.450 millions and Demand loan for Qualis car for Rs.0.410 millions has loan liquidated. Hence total charges reduced from Rs.29.156 millions to Rs.21.896 millions as per details below :
The terms and conditions remain same as per original agreement dated 16.12.1998. |
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Name of the company |
HI-TECH
INVESTMENT CASTINGS LIMITED |
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Presented By |
Mr. Jatin B.
Thakkar |
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1) Date and description of instrument creating the change |
Memorandum of Deposit of Title Deeds dated 08.11.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.46.760 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Immovable properties of the company such as land and building situated at Leasehold Plot No.204/A, Phase II, GIDC Estate, S. No.81P, Adm.470987 Sq.Mts. at Sihor Leasehold Plot No.256, Adm.668.56 Sq.Mts. Bearing CTS No.494 Ward No.1, Sheet No.62 at Bhavnagar, Rajkot Road, Sihor Leasehold Plot No.206/A, situated at Sihor-II, Industrial Estate Adm.2977.50 Sq.Mts. At Sihor, District Bhavanagar Leasehold Plot No.206/B, situated at Sihor II, Industrial Estate Adm.2927.50 Sq.Mts. at Sihor, District Bhavnagar. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The securities described in Col. No.3 covered the following finance availed by the company.
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Saurashtra, Nilambaug Chawk Branch, Bhavnagar. |
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6) Date and brief description of instrument modifying the charge |
N.A. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
N.A. |
BUSINESS
The company is engaged in the business of Polymers and Industrial Product. The company manufactures and sells Ferrous and Non Ferrous Investment Precession Casting.
The company is also in the business of Die Design & Development which includes Export Designing, Tooling, & Development, etc.
The company imports stores and spares from reputed manufacturers and suppliers in Europe and USA against L/C terms.
Company’s
fixed assets include land-204A, Land-206 A and B, Land-208D, Land-305, Land
Ghanghli, Sihor house land, Land (GIDC P No.206/B), Land (GIDC P. No.208/D),
Staff Quarter, Factory Building, Planmt anc Machinery, Electric Installation,
Office Equipments, Vehicles, Computer Machine, Fax Machine, Mobile Phone and
Tele sys, Air Conditioner and Staff Bus.
Operations :
During
last three years, the company has consistently achieved significant growth in
various parameters of performance. During the year under report the total sales
shows increase of 26.18% as compared to previous year. The company’s exports
continued to grow and the export revenue increased to RS.120.389 millions
during the year under report as against Rs.96.241 millions in previous year
i.e. net increase of 25.09%. due to continued efforts for enlarging customer
base in exports in Europe, the company secured the prestigious orders for
supply of castings in automotive industries. The directors look forward to
continued growth in exports.
Capacity Expansion :
During
the year the company acquired adjoining land and constructed new factory
building. The company also purchased certain automatic machineries to increase
production capacity. Due to investment made during the year under report and in
previous financial year, the capacity of the plant has also gone up by
approximately 30% as compared to last year. The directors are planning to
further increase the production capacity during the current financial year i.e.
2006-07 by acquiring most sophisticated plant and machineries.
Website Details :
Subject
was founded in 1989, with 20 employees has today flourished into a full fledged
engineering company spread over a 15000 Sq. mt. area, with a highly motivated
workforce of 175.
Subject
has established high integrity and loyalty amongst its buyers in India and the
world over. Their castings manufactured in most ferrous and non ferrous alloy
specifications live up to international standards as proven through the years,
Following are the industries they cater to :
Automobiles,
Textile Machinery, Food and Dairy Machinery, Valves and Pumps, Material
Handling, Artificial Limbs and Human Aid, Electrical Switchgear, Machine Tools
and Accessories, Compressors, Turbochargers, Marine and Building Hardware, Hand
and Crimping Tools, Pharmaceutical and Packaging Machineries, Sporting Goods
and Castings for all Engineering Industries.
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.44.09 |
|
UK
Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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/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 |
|