MIRA
INFORM REPORT
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Report Date : |
18.06.2007 |
IDENTIFICATION DETAILS
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Name : |
FEROLITE JOINTINGS LIMITED |
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Formerly Known As : |
FEROLITE JOINTINGS PRIVATE LIMITED |
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Registered Office : |
341 Pratap Khand, Vishwakarma Nagar, Shahdra, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.10.1989 |
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Com. Reg. No.: |
55-38118 |
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CIN No.: [Company
Identification No.] |
U36999DL1989PLC038118 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTF00017D |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers and Exporters of Compressed Gasket Sheets. |
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 139000 |
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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 well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their trade relations are 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 : |
341 Pratap Khand, Vishwakarma Nagar, Shahdra, |
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Tel. No.: |
91-11-20040362 |
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E-Mail : |
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Website : |
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Head Office : |
I-1/16, |
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Tel. No.: |
91-120-24700291/24700323 |
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Fax No.: |
91-120-24701002 |
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Corporate Office : |
40, |
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Factory 1 : |
C-178, Site No. 1, |
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Tel. No.: |
91-120-2702655/2701517/2700323/2757012/2700291 |
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Fax No.: |
91-120-2701002 |
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E-Mail : |
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Location : |
Industrial |
DIRECTORS
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Name : |
Mr. Ashok Kumar Sharma |
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Designation : |
Managing Director |
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Address : |
R – 9/168, Raj Nagar, |
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Date of Birth/Age : |
30.04.1949 |
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Date of Appointment : |
28.10.1991 |
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Name : |
Mr. Suman Mishra |
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Designation : |
Director |
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Address : |
R – 9/168, Raj Nagar, |
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Date of Birth/Age : |
04.06.1962 |
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Date of Appointment : |
22.05.1999 |
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Name : |
Mr. Akshay Sharma |
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Designation : |
Director |
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Address : |
R – 9/168, Raj Nagar, |
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Date of Birth/Age : |
23.04.1976 |
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Date of Appointment : |
24.03.2000 |
KEY EXECUTIVES
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Name : |
P B and Associates |
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Designation : |
Company Secretary |
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Address : |
4993/5, Sant Nagar, Karol Bagh, |
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Tel. No.: |
91-11-20538148/ 25734223 |
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Mobile No.: |
91-9811760767 |
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E-mail: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders (29.09.2005) |
No. of Shares |
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Mr. A K Sharma |
13365 |
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Mr. A K Sharma & Sons |
4620 |
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Mr. Akshay Sharma |
9730 |
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Ms. Sudha Sharma |
1200 |
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Ms. Aarti Sharma |
1400 |
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Mrs. |
50 |
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Mr. A B Sharma |
850 |
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M/s. Superlite Auto Private Limited |
2450 |
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M/s. Sunlite Finvest Private Limited |
6335 |
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Total |
40000 |
31.03.2006
Bodies corporate (not mentioned above) –
22.00%
Directors or relatives of director – 78.00%
BUSINESS DETAILS
GENERAL INFORMATION
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Customers : |
v Wholesalers v Manufacturers |
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No. of Employees : |
35 |
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Bankers : |
Punjab National Bank ICICI Bank Limited Citi Bank Limited |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Anil Vaish and Company Chartered Accountants |
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Address : |
80 Navyug Market, |
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Tel. No.: |
91-120-2790025/ 1525 |
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Associates/Subsidiaries : |
v Superlite Auto Private Limited v Sunlite Finvest Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Shares |
Rs.100/- |
Rs. 5.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000 |
Equity Shares |
Rs. 100/- |
Rs. 4.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4.000 |
4.000 |
4.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
30.972 |
22.143 |
14.303 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
34.972 |
26.143 |
18.303 |
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LOAN FUNDS |
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1] Secured Loans |
54.646 |
49.833 |
48.651 |
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2] Unsecured Loans |
25.668 |
27.318 |
25.148 |
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TOTAL BORROWING |
80.314 |
77.151 |
73.799 |
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DEFERRED TAX LIABILITIES |
4.197 |
4.309 |
3.936 |
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TOTAL |
119.483 |
107.603 |
96.038 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
46.217 |
41.931 |
40.199 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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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 |
30.540
|
26.458 |
15.745 |
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Sundry Debtors |
87.118
|
77.647 |
68.940 |
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Cash & Bank Balances |
6.630
|
2.102 |
7.408 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
14.542
|
11.924 |
6.035 |
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Total
Current Assets |
138.830
|
118.131 |
98.128 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
59.130
|
46.775 |
39.411 |
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Provisions |
6.434
|
5.684 |
2.878 |
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Total
Current Liabilities |
65.564
|
52.459 |
42.289 |
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Net Current Assets |
73.266
|
65.672 |
55.839 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
119.483 |
107.603 |
96.038 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
202.115 |
297.892 |
222.189 |
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Other Income |
133.105 |
147.134 |
2.048 |
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Total Income |
335.220 |
445.026 |
224.237 |
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Profit/(Loss) Before Tax |
15.035 |
13.936 |
7.624 |
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Provision for Taxation |
0.000 |
5.412 |
2.566 |
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Profit/(Loss) After Tax |
15.035 |
8.524 |
5.058 |
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Earnings in Foreign Currency : |
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Other Earnings |
NA |
89.356 |
68.316 |
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Total Earnings |
NA |
89.356 |
68.316 |
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Imports : |
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Others |
NA |
59.988 |
37.748 |
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Total Imports |
NA |
59.988 |
37.748 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
40.409 |
31.631 |
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Administrative Expenses |
0.000 |
16.353 |
13.218 |
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Raw Material Consumed |
206.131 |
183.079 |
132.266 |
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Consumption of stores and spares parts |
4.079 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
13.384 |
0.000 |
0.000 |
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Managerial Remuneration |
1.080 |
0.000 |
0.000 |
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Payment to Auditors |
0.100 |
0.000 |
0.000 |
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Interest |
6.405 |
6.913 |
7.304 |
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Insurance Expenses |
1.826 |
23.599 |
18.148 |
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Power & Fuel |
30.774 |
0.000 |
0.000 |
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Depreciation & Amortization |
6.415 |
5.543 |
5.742 |
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Other Expenditure |
50.859 |
7.781 |
7.620 |
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Total Expenditure |
321.053 |
283.677 |
215.929 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
4.48
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1.91 |
2.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
4.48
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3.13 |
3.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.12
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8.70 |
5.51 |
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Return on Investment (ROI) (PBT/Networth) |
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0.42
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0.53 |
0.41 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.17
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4.95 |
6.34 |
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Current Ratio (Current Asset/Current Liability) |
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2.11
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2.25 |
2.32 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
FEROLITE JOINTINGS LIMITED |
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1) Date and description of instrument creating the change |
Agreement of hypothecation of movable block assets forming part of
fixed block assets on 27.11.2001 Regd. On date – 24.12.2001 further modified
to Rs. 35.984 Millions on 25.04.2003 Regd. On dt. 20.05.2003 lastly modified
to Rs. 47.475 Millions on dt. 29.09.2004 Regd. On dt. 27.10.2004 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 30.500 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 |
Entire movable/ Immovable block assets of the company |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
All the fund based/ non tund based facility existing and future to be
collaterally secured by this assets |
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5) Name and Address and description of the person entitled to the
charge. |
Punjab National Bank |
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6) Date and brief description
of instrument modifying the charge |
Agreement of hypothecation of movable block charge forming part of
fixed block assets on dated 07.01.2006 |
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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. |
The bank shall have exclusive IInd Pari Passu charge alongwith Picup
for the entire movable and assets. Fixed block assets at C – 163, and C –
178, Bulandshahr Road Industrial Area Ghaziabad to secure bank exposure of
Rs. 59.886 Millions from Rs. 47.475 Millions |
Fixed Assets
- Plant & Machinery
- Furniture & Fixture
- Office Equipment
- Cycle
- Motor Car
- Computer
- Truck
- Generator
Contigent Liabilities
Guarantee
given by banker Rs. 3.306 Millions (2005)
As per website details
PROFILE
Subject is a manufacturing unit of CAF; this
recognition was achieved in a short span of time.
Subject a technology driven company, manufactures wide range of products
suitable for a number of general and specialized applications, has been
catering to the diversified needs of core sector industries, such as
Engineering, Mining, Aerospace, Steel, Chemical, Petrochemical, Fertilizer,
Power Generation, Ship building, Atomic Energy, Electrical, Oil Exploration,
Automotive, Railways, etc.
Subject products are manufactured on the latest machines developed with the aid
of research, applied science, specialized technical knowledge and innovative
skilled experienced technocrats, with firm belief in ‘Investment for the
future’ by continuously upgrading R&D facility.
The company is certified with ISO 9002 certificate.
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.40.82 |
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|
1 |
Rs.81.18 |
|
Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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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 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
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 |
|