MIRA
INFORM REPORT
|
Report Date : |
22.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
SAMRAT FORGINGS LIMITED |
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Registered Office : |
SCO 2905-06, Sector 22C, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.05.1981 |
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Com. Reg. No.: |
53-4522 |
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CIN No.: [Company
Identification No.] |
L28910CH1981PLC004522 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLS11804C |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacture and distribution of crank shafts and connecting rods and
all kinds of closed-die forgings. |
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 110000 |
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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 : |
SCO 2905-06, Sector 22C, |
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Tel. No.: |
91-172-2711739 / 2708345 |
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E-Mail : |
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Factory 1 : |
Village & P O Ghollu Majra, Mohali – 140506, |
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Tel. No.: |
91-1762-555733 / 280107 |
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Fax No.: |
91-1762-280931 |
DIRECTORS
|
Name : |
Mr. Jagdish Chander Chodhary |
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Designation : |
Managing Director |
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Address : |
# 57, Sector 9-A, |
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Date of Birth/Age : |
07.11.1936 |
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Date of Appointment : |
14.05.2004 |
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Name : |
Mr. Rakesh Mohan Kumar |
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Designation : |
Deputy Managing Director |
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Address : |
# 305, Sector – 6, Panchkula – 134106, |
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Date of Birth/Age : |
22.02.1966 |
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Date of Appointment : |
01.06.2004 |
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Name : |
Ms. Bindu Choudhary |
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Designation : |
Director |
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Address : |
# 57, Sector – 9-A, |
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Date of Birth/Age : |
13.04.1940 |
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Date of Appointment : |
25.04.1990 |
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Name : |
Mr. Ajay Kapoor |
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Designation : |
Director |
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Address : |
# 255, Sector – 6, Panchkula – 134109, |
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Date of Birth/Age : |
07.11.1964 |
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Date of Appointment : |
30.01.2007 |
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Other Directorship : |
Chandigarh Realtors Private Limited U70100CH2005PTC028546 |
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Name : |
Mr. Rohit Gupta |
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Designation : |
Director |
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Address : |
S-210, Greater Kailash – I, |
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Date of Birth/Age : |
18.12.1967 |
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Date of Appointment : |
25.07.2005 |
SHAREHOLDING PATTERN
|
Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Public Financial Companies |
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14.80 % |
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Bodies corporate |
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31.87 % |
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Directors of relatives of directors |
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29.87 % |
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Other top fifty shareholders |
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18.50 % |
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Others |
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4.96 % |
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Total |
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100.00
% |
BUSINESS DETAILS
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Line of Business : |
Manufacture and distribution of crank shafts and connecting rods and
all kinds of closed-die forgings. |
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Products : |
Closed Die Steel Forgings, Spindles, Crank Shaft, Connecting Rod, Cluck
Hub, Chain Links, Crosses, Rollers, Shafts, Yokes, Crown Wheels, Bull Gears,
Trans and Gears |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
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Closed die forging |
M.T. |
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5500 |
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GENERAL INFORMATION
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Bankers : |
Andhra Bank Sector – 17, Bank Square, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Jain and Associates Chartered Accountants |
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Address : |
SCO 819-20, Sector – 22-A, |
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Associates/Subsidiaries : |
Chandigarh Realtors Private Limited U70100CH2005PTC028546 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5250000 |
Equity Shares |
Rs. 10/-each |
Rs. 52.500 Millions |
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10/-each |
Rs. 16.000
Millions |
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|
Less calls in arrear |
|
Rs. 0.196
Million |
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Total |
|
RS. 15.804 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1573800 |
Equity Shares |
Rs. 10/-each |
Rs. 15.738
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
15.804 |
15.804 |
15.804 |
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2] Share Application Money |
17.450 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1.500 |
1.500 |
1.500 |
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4] (Accumulated Losses) |
[6.963] |
[20.219] |
[60.562] |
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NETWORTH |
27.791 |
[2.915] |
[43.258] |
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LOAN FUNDS |
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1] Secured Loans |
29.017 |
61.106 |
96.305 |
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2] Unsecured Loans |
30.684 |
21.902 |
10.974 |
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TOTAL BORROWING |
59.701 |
83.008 |
107.279 |
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DEFERRED TAX LIABILITIES |
0.562 |
0.000 |
0.000 |
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TOTAL |
88.054 |
80.093 |
64.021 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
36.768 |
26.892 |
30.127 |
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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 |
6.293 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
69.129
|
51.769 |
45.709 |
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Sundry Debtors |
31.178
|
37.877 |
36.808 |
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Cash & Bank Balances |
2.510
|
3.146 |
5.028 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
8.215
|
7.083 |
2.106 |
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Total
Current Assets |
111.032
|
99.875 |
89.651 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
59.515
|
52.967 |
55.757 |
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Provisions |
0.231
|
0.000 |
0.000 |
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Total
Current Liabilities |
59.746
|
52.967 |
55.757 |
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Net Current Assets |
51.286
|
46.908 |
33.894 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
88.054 |
80.093 |
64.021 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
258.756 |
243.699 |
106.978 |
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Other Income |
2.599 |
34.690 |
23.180 |
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Total Income |
261.355 |
278.389 |
130.158 |
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Profit/(Loss) Before Tax |
20.343 |
34.050 |
2.336 |
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Provision for Taxation |
7.086 |
[6.293] |
0.000 |
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Profit/(Loss) After Tax |
13.257 |
40.343 |
2.336 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
2.058 |
Nil
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
0.000 |
0.000 |
30.580 |
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Administrative Expenses |
0.000 |
0.000 |
2.449 |
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Finance Expenses |
0.000 |
0.000 |
7.123 |
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Selling and Distribution Expenses |
0.000 |
0.000 |
2.664 |
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Raw Material Consumed |
160.274 |
158.725 |
65.771 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
27.692 |
24.613 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[7.205] |
[1.771] |
0.000 |
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Salaries, Wages, Bonus, etc. |
17.889 |
17.156 |
14.989 |
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Managerial Remuneration |
1.847 |
0.672 |
0.000 |
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Payment to Auditors |
0.064 |
0.046 |
0.000 |
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Interest |
9.398 |
7.023 |
0.000 |
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Insurance Expenses |
0.278 |
0.164 |
0.000 |
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Power & Fuel |
12.192 |
10.123 |
0.000 |
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Depreciation & Amortization |
3.194 |
2.939 |
3.124 |
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Other Expenditure |
15.389 |
24.649 |
0.407 |
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Total Expenditure |
241.012 |
244.339 |
127.107 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.07
|
14.49 |
1.79 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.86
|
13.97 |
2.18 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
13.76
|
26.86 |
1.95 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.73
|
[11.68] |
[0.05] |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.30
|
[46.65] |
[3.77] |
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Current Ratio (Current Asset/Current Liability) |
|
1.86
|
1.89 |
1.61 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
- Land
- Administrative Building
- Plant and Machinery
- Furniture and Fixture
- Computers
- Office Equipments
- Vehicles
Contingent Liability
- Sales Tax Assessment is pending since Assessment Year 2001-02. Liability
refund. If any cannot therefore be ascertained.
- Company had defaulted on payment of Sales Tax. The liability on
account of interest / damages and penalties thereon are unascertainable as
31.03.2005.
- There are pending cases with Debt Recovery Tribunal and various
court cases under section 138 of Negotiable Instrument Act 1881. The
amount of penalty under these is unascertainable.
Bankers Charges
Report as per Registry
|
Name of the company |
SAMRAT FORGINGS
LIMITED |
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Presented By |
VERINDER KAMAL
SOOD, COMPANY SECRETARY |
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1) Date and description of instrument creating the change |
Deed of
Hypothecation dated 27.02.1992 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 1.100
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 |
On second charge
basis the whole of the movable properties of the company including its
movable plant and machinery, machinery spares, tools and accessories and
other movable both present and future whether installed or not and whether
now lying loose or in cases or which are now lying or stored in to about or
shall hereafter from time to time during the continuance of the security be
brought in to or upon or be stored or be in or about Company’s factories,
premises and godowns or wherever else the same may be or be held by any party
to the order or disposition of the company or in the course of transit or on
high seas or on order or delivery however and whosesoever in the possession
of the company and either by way of substitution or addition. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
– Interest free Excise Loan Extent of
operation 100 % Repayment – Loan
repayable in 14 half yearly installments commencing from the beginning of the
4th year of the date of last disbursement. |
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5) Name and Address and description of the person entitled to the charge. |
President of Industrial
Finance Corporation of Bank of |
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6) Date and brief description of instrument modifying the charge |
10.03 92 No instruments
was executed a joint mortgage on second charge basis by deposit of title
deeds was created by the company in respect of all the immovable properties
of the company situated at Village Chollu Majra, |
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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. |
A joint mortgage
on second charge basis by deposit of title deeds was created by the company
in respect of all the immovable properties of the coampny situated at village
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This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
L28910CH1981PLC004522 |
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Name of the
company |
SAMRAT FORGINGS LIMITED |
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Address of the
registered office or of the principal place of business in |
SCO 2905-06, Sector 22C, |
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Type of charge |
|
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Particular of
charge holder |
Andhra Bank Sector – 17, Bank Square, |
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Nature of description
of the instrument creating or modifying the charge |
Composite
Agreement |
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Date of
instrument Creating the charge |
16.03.2007 |
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Amount secured by
the charge |
Rs. 16.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: Cash Credit : PLR
12.25 % Minus 50 % presently 11.75 % p.a. Terms of
repayment : Repayable on
demand Margin : 25% on
stocks 40 % on eligible Book Debts Extent and
operation of the charge : 100 % |
|
Short particulars
of the property charged |
Hypothecation of
RM, SIP, Consumable stores, tools, dies, spares FG, receivable, not older than
180 days, Hundies and second charge on Fixed assets of the company at factory
assets of the company at factory village, |
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.40.71 |
|
|
1 |
Rs.81.24 |
|
Euro |
1 |
Rs.54.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|