MIRA INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
EL FORGE LIMITED |
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Registered
Office : |
84, Thiruneermalai Road, Chromepet, Chennai – 600 044, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of Incorporation
: |
18.07.1934 |
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Com. Reg. No.: |
18-669 |
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CIN No.: [Company
Identification No.] |
U34103TN1934PLC000669 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
CHEE02010B / CHEE03239F |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on
the Stock Exchange. |
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Line of Business
: |
Engaged in the business of manufacturing Rough Steel
Forgings i.e. fuel injection forgings, steering rods, tie rods, engine and
gear boxes, starter items etc. for automobile industry. |
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 850000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is
satisfactory. Payments are correct
and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered
Office : |
84, Thiruneermalai Road, Chromepet, Chennai – 600 044, Tamilnadu |
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Tel. No.: |
91-44-52009690 / 52009688 |
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Fax No.: |
91-44-52009690 |
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E-Mail : |
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Website : |
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Corporate Office : |
New No.338 (Old No.247/4), Ambujammal Street, [Off T. T. K. Road],
Alwarpet, Chennai – 600018, Tamilnadu |
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Tel. No.: |
91-44-24994115 /116/52009681-83 |
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Fax No.: |
91-44-5214708 |
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E-Mail : |
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Factory 1 : |
Unit I 84, Thiruneermalai Road, Chromepet, Chennai – 600 044, Tamilnadu |
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Tel. No.: |
91-44-52009690 / 52009688 |
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Fax No.: |
91-44-52009690 |
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Factory 2 : |
Unit II Denkanikotta Road, P. B. No. 11, Hosur – 635109, Tamilnadu |
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Tel. No.: |
91-4344-22486 |
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Fax No.: |
91-4344-22841 |
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Factory 3 : |
Unit III S-104, Oggiam Thuraipakkam, Chennai – 600 096, Tamilnadu |
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Tel. No.: |
91-44-24961398/24961469 |
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Fax No.: |
91-44-24961407 |
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Factory 4 : |
TOOL Room 65, IInd Link Road, Nehru Nagar, Off Old Mahabalipuram Road, Chennai –
600041, Tamilnadu |
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Tel. No.: |
91-44-24483821 |
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Factory 5 : |
Unit IV B-67, SIPCOT Industrial Complex, Gummidipoondi – 601 201, Tamilnadu |
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Tel. No.: |
91-95411922845 |
DIRECTORS
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Name : |
Mr. V. Srikanth |
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Designation : |
Chairman |
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Address : |
4/1, Subbaraya Avenue, Chennai – 600018 |
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Date of
Birth/Age : |
19.10.1953 |
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Date of
Appointment : |
Director from 26.08.1983. Appointed as Vice Chairman w.e.f.
05.09.1994. Appointed as Chairman w.e.f. 29.01.2001 |
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Name : |
Mr. K. V. Ramachandran |
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Designation : |
Managing Director |
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Address : |
No. 196A, St. Marys Road, Chennai – 600018, Tamilnadu, India |
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Date of
Birth/Age : |
25.03.1956 |
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Date of
Appointment : |
Director from 30.08.1991 and resigned on 05.09.1994. Rejoined on
02.11.1995. Appointed as Managing Director w.e.f. 14.03.1996 |
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Name : |
Mr. P. L. Reddy |
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Designation : |
Director |
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Address : |
Cambrey Hall, 72, Dr. P. V. Cheian Cresecent Commander in Chief Road,
Egmore, Chennai – 600105, Tamilnadu, India |
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Date of
Birth/Age : |
21.09.1927 |
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Date of
Appointment : |
10.12.1971 |
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Name : |
Mr. V. Ramachandran |
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Designation : |
Director |
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Address : |
446, 8th Cross, 5th Main, Rajmahal Vilas
Extension, HAL IInd Stage, Bangalore – 560094, Karnataka, India |
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Date of
Birth/Age : |
26.01.1948 |
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Date of
Appointment : |
14.03.1996 |
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Name : |
Mr. K. J. Ramaswmay |
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Designation : |
Director |
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Address : |
42, 1st Avenue, Shastri Nagar, Chennai – 600020, Tamilnadu,
India |
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Date of
Birth/Age : |
07.03.1946 |
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Date of
Appointment : |
14.03.1996 |
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Name : |
Mr. R. Sowmithri |
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Designation : |
Company Secretary |
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Address : |
Anmol Andal, No. 20, Ranjith Road, Kottumpuram, Chennai – 600085,
Tamilnadu, India |
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Date of Birth/Age : |
03.04.1919 |
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Date of Appointment : |
25.05.1993 |
MAJOR SHAREHOLDERS
As on 31.03.2005
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters |
2894639 |
44.0974 |
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Corporate Bodies |
814334 |
12.4057 |
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Mutual Funds |
1950 |
0.0297 |
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Banks |
1500 |
0.0229 |
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Overseas Corporate Bodies |
1655 |
0.0252 |
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Public |
2850117 |
43.4191 |
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TOTAL |
6564195 |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Engaged in the business of manufacturing Rough Steel
Forgings i.e. fuel injection forgings, steering rods, tie rods, engine and
gear boxes, starter items etc. for automobile industry. |
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Products : |
v
Engine Parts v
Transmission Parts v
Steering And Suspension Parts v
Brake Assembly Parts v
Chassis Parts v
Drive Line v
Electrical |
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Exports to : |
U.S.A., Germany, Sri Lanka and Malaysia |
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Imports from : |
Czech Republic and Russia |
GENERAL
INFORMATION
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Customers : |
v
Bosch, India v
Meritor, India
v
Rane Trw v
Sundaram Clayton v
Toyota India v
IL Jin v
Lucas TVS |
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No. of Employees
: |
About 3,000 |
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Bankers : |
Bank of Baroda, SIET College Avenue, Chennai – 600018, Tamilnadu State Bank of India, Industrial Finance Branch, Chennai – 600002,
Tamilnadu Union Bank of India, Industrial Finance Branch, Riaz Garden,
Kodambakkam High Road, Chennai – 600034, Tamilnadu UTI Bank Limited, 82, Dr. Radhakrishnan Salai, Mylapore, Chennai –
600004, Tamilnadu Industrial Development Bank of India, Chennai – 600015 SBI Factors & Commercial Services Private Limited, 23, Rajaji
Salai, Chennai – 600001, Tamilnadu |
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Banking
Relations : |
Satisfactory |
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Auditors : |
P. Rajagopalan & Company Chartered Accountants, Chennai |
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Collaborations : |
v
Bosch, Germany v
Arvin Meritor, USA v
TRW, USA v
Clayton, France v
Toyota, Japan v
Il Jin, South Korea v
Lucas, UK |
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Memberships : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000
millions |
|
300000 |
Redeemable Preference Shares |
Rs. 10/- each |
Rs. 30.000
millions |
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TOTAL |
|
Rs.
110.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7260000 |
Equity Shares |
Rs. 10/- each |
Rs. 72.600
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 |
72.600 |
65.641 |
78.591 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
147.900 |
71.742 |
66.663 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
220.500 |
137.383 |
145.254 |
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LOAN FUNDS |
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1] Secured Loans |
469.700 |
340.878 |
233.189 |
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2] Unsecured Loans |
22.800 |
66.481 |
7.830 |
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TOTAL BORROWING |
492.500 |
407.359 |
241.019 |
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DEFERRED TAX LIABILITIES |
0.000 |
1.792 |
0.138 |
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TOTAL |
713.000 |
546.534 |
386.411 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
206.300 |
149.921 |
143.122 |
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Capital work-in-progress |
144.100 |
0.000 |
0.000 |
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INVESTMENT |
24.700 |
8.341 |
8.341 |
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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 |
333.300
|
263.602 |
177.580 |
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Sundry Debtors |
187.200
|
145.935 |
114.872 |
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Cash & Bank Balances |
11.400
|
21.862 |
6.969 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
71.500
|
41.541 |
20.251 |
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Total
Current Assets |
603.400
|
472.940 |
319.672 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities & Provisions |
294.800
|
115.107 |
120.820 |
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Total
Current Liabilities |
294.800
|
115.107 |
120.820 |
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Net Current Assets |
308.600
|
357.833 |
198.852 |
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MISCELLANEOUS EXPENSES |
29.300 |
30.439 |
36.096 |
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TOTAL |
713.000 |
546.534 |
386.411 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover
[including other income] |
1015.800 |
840.327 |
521.949 |
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Profit/(Loss) Before Tax |
74.000 |
47.378 |
13.939 |
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Provision for Taxation |
7.700 |
3.715 |
1.072 |
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Profit/(Loss) After Tax |
66.300 |
43.663 |
12.867 |
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Export Value |
N.A. |
181.592 |
89.772 |
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Import Value |
N.A. |
5.307 |
N.A. |
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Total Expenditure |
941.800 |
792.948 |
508.009 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st
Qtr.) |
30.09.2006 (2nd
Qtr.) |
31.12.2006 (3rd
Qtr.) |
|
Sales Turnover |
225.300 |
253.800 |
243.300 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Total Income |
225.300 |
253.800 |
243.300 |
|
Interest |
14.800 |
18.000 |
15.900 |
|
Gross Profit |
22.300 |
25.300 |
26.400 |
|
Depreciation |
6.500 |
6.900 |
6.200 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
15.800 |
18.400 |
20.200 |
200606 Quarter 1
Notes
EPS ia basic 1. The above results for the quarter ended 30th June 2006,
which have been subjected to a 'Limited Review' by the statutory auditors of
the Company, as per the listing agreements with the stock exchanges have been
reviewed by the Audit Committee and approved by the Board of Directors at its
meeting held on 24th July 2006. 2. The Company has only one business segment of
manufacture and sale of steel forgings. 3. The company has incurred expenditure
of Rs.24.45 Crores upto 30th June 2006, towards its on going forging and
machining capacity expansion programme. Production is anticipated by the end of
2nd quarter of this year. 4. Funds raised through preferential issue are kept
in the working capital account pending utilisation for projects. 5. Number of
complaints from share holders received during the quater 8 and disposed off
during the quarter 8. There were no pending complaints at the beginning or end
of the quarter. 6. Figures have been regrouped/rearranged wherever necessary.
200609 Quarter 2
Notes:
EPS is Basic & Diluted 1.The above results for the quarter ended
30th September,2006 which have been subjected to a 'Limited Review' by the
statutory auditors of the company as per the listing agreement with the stock
exchange have been reviewed by the Audit Committee and approved by the Board of
Directors at its meeting held on 31st October,2006. 2.The Company has only one
business segment for manufacture and sale of steel forgings. 3.Number of
Complaints from shareholders received during the quarter-19 and disposed off
during the quarter-19. 4. The Company incurred an expenditure of Rs.290
millions upto 30th September 2006 towards is ongoing forging machining capacity
expansion programme. The trial production expected to start on 30th Nov 2006.
5. Previous Year /Period's figures are regrouped wherever necessary. 6.
Shakespeare Forging Limited UK has become a 100% subsidiary of EL Forge Limited
during the above quarter. 7. Provision for Taxation will be made in the Year
end.
200612 Quarter 3
NOTES:
EPS is Basic. 1.The above results for the quarter ended 31st December
2006 which have been subjected to a ' Limited Review ' by the statutory
auditors of the company as per the listing agreements with the stock exchange
have been reviewed by the Audit Committee and approved by the Board of
Directors at its meeting held on 31st January 2007. 2.The company has only one
business segment of manufacture and sale of steel forgings. 3.The Company has
incurred expenditure of Rs.300 millions upto 31 December, 2006, towards its on
going forging and machining capacity expansion programme. The trial production
is expected to start on February 2007. 4.Number of complaints from shareholders
received during the quarter - 9 and disposed off during the quarter- 9. There
were no pending complaints at the beginning of the quarter. 5. Figures have
been regrouped/rearranged wherever necessary. 6. Provision for Taxation will be
made in the year end.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
2.46 |
2.31 |
1.67 |
|
Long
Term Debt-Equity Ratio |
1.20 |
0.99 |
0.69 |
|
Current
Ratio |
1.21 |
1.25 |
1.15 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed
Assets |
3.23 |
3.66 |
2.49 |
|
Inventory |
3.28 |
4.22 |
3.60 |
|
Debtors |
5.87 |
7.14 |
6.28 |
|
Interest
Cover Ratio |
2.60 |
2.11 |
1.30 |
|
Operating
Profit Margin(%) |
12.17 |
11.36 |
12.07 |
|
Profit
Before Interest And Tax Margin(%) |
10.17 |
9.68 |
10.38 |
|
Cash
Profit Margin(%) |
7.59 |
6.38 |
3.90 |
|
Adjusted
Net Profit Margin(%) |
5.59 |
4.69 |
2.22 |
|
Return
On Capital Employed(%) |
17.15 |
22.08 |
19.75 |
|
Return
On Net Worth(%) |
31.04 |
32.66 |
10.35 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.88.00/- |
|
Low |
Rs.83.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was incorporated on 18th July, 1934 at Chennai in
Tamilnadu having Company Registration Number 669.
Engaged in the business of manufacturing Rough Steel
Forgings i.e. fuel injection forgings, steering rods, tie rods, engine and gear
boxes, starter items etc. for automobile industry. The company exports its
products to the US, Germany, Srilanka and Malaysia. It has became the largest
manufacturer of forgins in South India after the merger of Chendur Forge
Export, a company in the same line of business with the company (with effective
from April 1, 1995). To fund this acquisation of Chendur Forgings and financing
the cost of machinery & to augment long-term working capital, the company
came out with a rights issue at a premium of Rs.30 aggregating Rs.35.1 millions
in 1995.
Ashok Leyland and MICO are the major clients of EL Forge.
These two companies are roughly giving around 40% of the companies total
turnover. Other customers include Hindustan Motors, Lucas TVS, Rane, Sundaram
Clayton, VST Tillers, Sahney Paris and Audio India.
In 1995-96, the installed capacity of forging was expanded from 10,200
tpa to 18,200 tpa. and during 1998-99, the company has put up an additional
state of the art machinery and software in the tool room at a cost Rs. 16.775
millions.
On Quality front, the company’s factories/plants are ISO 9000
accredited. Apart from this one of the plant is QS 9000 approved. Two more
factories have been certified for QS 9000 and it is anticipated that all the
five factories will be QS 9000 approved by March, 2002.
Year
in Retrospect
During the year under report, the company, in keeping with the economic
globalization has formulated and implemented certain strategies to position
itself for the coming period as a global manufacturer of forged products. These
strategies include the setting up of a machine shop to machine forgings for
M/s. Motor Industries Company Limited (MICO), the setting up of a world class
manufacturing facility at Appur Village on the highway connecting Sriperambadur
and Singaperumal Koil, and marketing initiatives through the UK subsidiary M/s.
Shakespeare Porgings Limited.
Expansion and Modernisation
A Modernization programme had been initiated last year for which
an amount equivalent to Rs.210 millions has been spent, In order to exploit the
growing demand of Auto Components evidenced by the economic growth in that
sector, your Company has embarked an a modernization cum expansion programme,
as stated earlier, at the Appur Village. This investment is to ensure that the
Company is able to meet its growth obligations in keeping with the expanding
economy. The new plant is anticipated to start operation by the end of
September 2006 and shall be fully in production by March, 2007.
Overseas Investment - Shakespeare
Forgings Limited- Subsidiary Company
As mentioned in their report to you last year, the investment in the UK
subsidiary has began to yield results. The Company has been able to approach
consumers of forgings in UK and Germany through Shakespeare Forgings Limited
and has also been visited and audited by these European Companies. It is
anticipated that bulk shipments will start in September of this year signifying
the fructification of the strategy for which the investment has been
made,
The statement pursuant to the Provisions of Section 212 of the Companies Act,
1956, containing details of the Company's Subsidiary is attached.
The company has applied to the Company Law Board U/s.212(8) of the Companies
Act 1956 seeking exemption from attaching a copy of the Balance Sheet, Profit
and Loss Account, Report of the Board of Directors and the Report of the
Auditors of the subsidiary company along with the financial statements of your
company. These documents can be requested for by any member, investor of the
company. Further, in line with the Listing Agreement and in accordance with the
Accounting Standard 21 (AS21), Consolidated Financial Statements, prepared by
the Company include financial information of its subsidiary.
Future Outlook
The future of Auto Components and forgings is very promising. The
Mc kinsey report on the Industry states that India Automotive Component
Industry stands on the verge of a boom that could result in export revenues of
US $.33 - 40 billion and millions of jobs over the next few years. The growth
will be five fold by 2015. India's low factor costs and pool of skilled,
engineering manpower as well as the maturity of the domestic supplier markets,
could help our country to build an advantage over most competiting LCCs in
Engineering skill intensive parts. It will be able to compare favourably in
manufacturing parts that are labour intensive or require significant amounts of
steels, cast iron and rubber.
Overview
The company has made a very significant move during the year 2005-06. A
subsidiary in UK had been acquired during the year. The Company has taken a
stake of 74% in the equity of the UK Company. This acquisition has been a
successful business strategy to access the European Markets, which are looking
for outsourcing forgings from India.
Another strategic initiative during the year was the focus on Value Added
Products. The Company set up a machine shop during the year to supply machined
parts to MICO. '
Further to capitalize the opportunities, your Company had embarked on an
expansion and modernization plan to set up a modern facility near
Chennai.
During the year under report growth was inorganic and the consolidated net
sales of the company was Rs.1320 millions compared to a stand alone sales of El
Forge during 2004-05 at Rs. 810 millions which shows 63% growth.
Company’s generic names of principal products/services are :-
|
Item Code No. (ITC Code) |
7326.19 |
|
Product Description |
Rough Steel Forgings |
The company’s fixed assets of important value includes Land, Leasehold
Land, Borewell, Buildings, Plant & Machinery, R&D Block, Electrical
Installation, Typewriter & Office Appliances, Computer, Furniture &
Fixtures, Air Conditioners Equipments, Laboratory Equipments, Motor Vehicles
and Fixed Tools.
|
Name of the
company |
EL FORGE LIMITED |
||||||||||||
|
Presented By |
UTI BANK LIMITED Dr. Radhakrishnan
Salai, Chennai |
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|
1) Date and
description of instrument creating the change |
Dated 12.01.2004 1. Agreement for
hypothecation of current assets 2. Deed of
hypothecation of machinery and other movable fixed assets |
||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 10 millions Facility : Cash
Credit Limit |
||||||||||||
|
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 |
a. Hypothecated
to the bank by way of 1st charge on all current assets present and
future, movable assets such as raw materials, work-in-process, finished goods
and all other current assets excluding receivables to be factored / factored
with UTI Bank Limited and / or Can Bank Factors Limited, movable properties
now or at anytime hereafter belonging to the borrower present and future. b. Pari-passu 2nd
charge on entire fixed assets of the company with other banks except the 1600
ton press and accessories excluding to UTI Bank Limited for purchase order
financing Limit. Personal
Guarantee of Directors namely. 1. Mr. V.
Srikanth, Executive Chairman 2. Mr. K. V. Ramachandran,
Managing Director |
||||||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest presently @12% p.a. with monthly rests |
||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
UTI Bank Limited Dr. Radha Krishnan Salai, Chennai – 600004 |
||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Dated 28.09.2005 1. Agreement for
hypothecation of current assets CD – 13. 2. Deed of
hypothecation of machinery and other movable fixed assets CCD15. All dated
28.09.2005 and relates to one and the same charge. |
||||||||||||
|
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 credit
facility extended to the company has now been enhanced to Rs. 25 millions
comprising of
i.
Primary : Pari
passu First charge on entire current assets of the company [excluding
receivables factored/to be factored with SBI Factors] with other banks under
the multiple banking arrangement. ii.
Pari Passu second
charge on the entire fixed assets of the company with other banks under
multiple bankers [except the 1600 ton press and accessories valued at Rs.
32.800 millions which is to be exclusively charged to UTI Bank Limited, Dr.
Radhakrishnan Salai, Chennai as collateral security for all the limits
sanctioned by the bank] iii.
Exclusive charge
on the 1600 ton press and accessories valued at Rs. 32.800 millions iv.
Escrow of
receivables from Rane group of companies v.
Earlier
securities given by the company shall extend to cover the enhanced limits vi.
All other terms
and conditions remain the same vii.
Term loans of Rs.
37.500 millios was registered as a separate charge |
|
Name of the
company |
EL FORGE LIMITED |
|
Presented By |
R. Sowmithri,
Executive Director [Finance] & Secretary |
|
1) Date and
description of instrument creating the change |
31.01.2005 –
Agreement of loan for overall limit 31.01.2005 –
Agreement of hypothecation of goods and assets 31.01.2005 –
Agreement of pledge of goods and assets 31.01.2005 – Letter
regarding the grant of individual limits within the overall limit |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
CC & FBD –
Rs. 50.000 millions LC & BG – Rs.
10.000 millions |
|
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 |
Hypothecation to
the bank by way of paripassu first charge on all current assets of the
company present and future stock of raw materials, work in progress and
finished goods of the company with other banks. Hypothecation to
the bank by way of paripassu second charge on companies fixed assets with
IDBI Personal
Guarantee of Directors 1. Mr. V.
Srikant, Executive Chairman 2. Mr. K. V.
Ramachandran, Managing Director |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest : Presently 10.75% per annum subject to changes in
State Bank Advance Rate and / changes in the interest rate prescribed by RBi
from time to time |
|
5) Name and
Address and description of the person entitled to the charge. |
State Bank of India Industrial Finance Branch, 155, Anna Salai, Chennai – 600002 |
|
6) Date and brief description of instrument
modifying the charge |
09.09.2005 –
Supplemental Agreement of Hypothecation of goods and assets for increase in
the overall limit 09.09.2005 –
Supplemental Agreement of Loan for Increase in the overall limit 09.09.2005 –
Letter regarding the grant of individual limits within the overall limit |
|
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. |
Enhancement in
credit limits to Rs. 115 millions from Rs. 60 millions |
|
Name of the
company |
EL FORGE LIMITED |
|
Presented By |
R. Sowmithri,
Executive Director [Finance] & Secretary |
|
1) Date and
description of instrument creating the change |
11.08.2005 1. Hypothecation
Agreement of goods and debts [CC / Overdraft – Rs. 48.5 millions] 2. Hypothecation
[Book Debts] Agreement - [CC / Overdraft – Rs. 48.5 millions] 3. Hypothecation
[Goods] Agreement – [CC / Overdraft – Rs. 48.5 millions] 4. Packing Credit
Agreement – [Sub-Limit of Rs. 15 millions] 5. Hypothecation
Agreement of goods & debts – [Non Funded Limit of Rs. 14.500 millions] 6. Hypothecation
[Goods] Agreement – [Non Fund Based – Rs. 14.500 millions] |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Fund Based Limit Rs. 48.500
millions – Cash Credit facility Rs. 15 millions –
Packing Credit as a sub limit of each credit facility Non Fund Based
Limit Rs. 14.500
millions – Import / Inland Letter of Credit [DP/DA] [Rs. 5 millions] Bank
Guarantee limit as a sub limit of Letter of Credit Limit |
|
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 |
Hypothecation by
way of first charge of company’s all present and future book – debts,
outstanding monies, deposits, receivable claims, bills contract securities,
investments rights and assets [except property otherwise hypothecated or
charged to the bank] as security for payment to the bank on demand of the
balance at any time of the said cash credit. Hypothecation of
all raw materials, semi finished and finished goods, products and movable
properties of any kind now or at any time hereafter belonging to or at the
disposal of the company and which are now stored or being stored or which
hereafter may from time to time be brought into or stored or be in or about
the company’s premises or godowns at Chrompet, Thoraipakkam, Gummidipoondi
and Hosur Divisions of the company or any other premises or godowns that may
be taken up from time to time. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest : Presently 10.75% per annum with monthly rests or
at such other revised rates as may be prescribed by the bank from time to
time depending upon the charges in the prime lending rate of the bank or the
directives or Reserve Bank of India from time to time. |
|
5) Name and
Address and description of the person entitled to the charge. |
Union Bank of India Industrial Finance Branch, Riaz Garden, No. 12, Kodambakkam High
Road, Chennai – 600034 |
|
6) Date and brief description of instrument
modifying the charge |
20.12.2006 –
Hypothecation Agreement of goods & debts – [Rs. 60 millions] 20.12.2006 –
Hypothecation Agreement of goods & debts – [Rs. 22 millions] 20.12.2006 –
Hypothecation [Goods] Agreement – [Sub Limit – Rs. 15 millions] 20.12.2005 –
Packing Credit Agreement [Sub-Limit Rs. 15 millions] 20.12.2005 –
Letter of Hypothecation of Bills |
|
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. |
Fund Based Limit Enhancement in
credit limit to Rs. 60 millions from Rs. 48.500 millions Non Funded Limit Enhancement in
credit limit to Rs. 22 millions from Rs. 15 millions |
|
Name of the
company |
EL FORGE LIMITED |
|
Presented By |
R. Sowmithri,
Executive Director [Finance] & Secretary |
|
1) Date and
description of instrument creating the change |
31.01.2005 –
Agreement of loan for overall limit 31.01.2005 –
Agreement of hypothecation of goods and assets 31.01.2005 –
Agreement of pledge of goods and assets 31.01.2005 –
Letter regarding the grant of individual limits within the overall limit |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
CC & FBD –
Rs. 50.000 millions LC & BG – Rs.
10.000 millions |
|
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 |
Hypothecation to
the bank by way of paripassu first charge on all current assets of the
company present and future stock of raw materials, work in progress and
finished goods of the company with other banks. Hypothecation to
the bank by way of paripassu second charge on companies fixed assets with
IDBI Personal
Guarantee of Directors 1. Mr. V.
Srikant, Executive Chairman 2. Mr. K. V.
Ramachandran, Managing Director |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest : Presently 10.75% per annum subject to changes in
State Bank Advance Rate and / changes in the interest rate prescribed by RBi
from time to time |
|
5) Name and
Address and description of the person entitled to the charge. |
State Bank of India Industrial Finance Branch, 155, Anna Salai, Chennai – 600002 |
|
6) Date and brief description of instrument
modifying the charge |
09.09.2005 –
Supplemental Agreement of Hypothecation of goods and assets for increase in
the overall limit 09.09.2005 –
Supplemental Agreement of Loan for Increase in the overall limit 09.09.2005 –
Letter regarding the grant of individual limits within the overall limit |
|
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. |
Enhancement in
credit limits to Rs. 115 millions from Rs. 60 millions |
|
Name of the
company |
EL FORGE LIMITED |
|||||||||||||||||||||||||||||||||||||||
|
Presented By |
ELFORGE LIMITED BANK OF BARODA,
S.I.E.T. BRANCH, TEYNAMPET, CHENNAI – 18 |
|||||||||||||||||||||||||||||||||||||||
|
1) Date and
description of instrument creating the change |
1. Agreement for
hypothecation of goods 2. Agreement for
hypothecation of book debts 3. Supplemental
Composite Instrument of hypothecation of goods, book debts movable machinery
executed by the company in favour of Bank of Baroda |
|||||||||||||||||||||||||||||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Fund Based Limit Cash Credit [Sub
limit pc 13.5 millions] Rs. 35.500 millions Foreign bills
purchased – Rs. 22 millions Non Fund Based
Limit Letter of LC
Credit Limit – Rs. 16 millions Bank Guarantee –
Rs. 4 millions |
|||||||||||||||||||||||||||||||||||||||
|
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 |
Hypothecation to
the Bank by way of paripassu First charge on all current assets present and
future. Movables Assets such as Raw
Materials, Work-in-Progress, Finished goods and all other current assets
excluding receivables factored with SBI factors Limited/ UTI Bank Limited.
Movable properties belonging to the borrower present and future. Paripassu second
charge on entire fixed assets of the company except those exclusively charged Personal
Guarantee of Directors namely 1. Mr. V.
Srikanth, Executive Chairman 2. Mr. K. V.
Ramachandran, Managing Director |
|||||||||||||||||||||||||||||||||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest on he different facilities as per RBI guidelines |
|||||||||||||||||||||||||||||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Bank of Baroda S.I.E.T. Branch, Teynampet, Chennai - 600018 |
|||||||||||||||||||||||||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
05.01.2006 supplemental
composite agreement of hypothecation of goods, book debts, moveable machinery
and vehicles for Rs. 120 millions dated 05.01.2006 |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
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 credit
facilities enjoyed by the company is enhanced as under :
Pre shipment
packing credit limit is secured by hypothecation of stock and book debts,
margin 25% interest 6.75% p.a. subject to change as per banks guidelines. All other terms
and conditions as per documents, executed and terms of sanction. Entire Credit
facilities are secured by
|
WEBSITE DETAILS
The Company
El Forge is one of the leading forging
producers in South India with over 38 years of experience in metal forming. El
Forge serves major vehicle and automotive component manufacturers and process
industries, both domestic and overseas. The range of materials handled includes
Carbon, Alloy and Stainless Steel, and supplies are made both in as forged and
pre-machined condition.
They make
|
Milestones
First
Plant in 1964
Started operationas Hot Forge Shop at Madras
with 2400 MT
Second
Plant in 1974
Started at Hosur Capacity increased to 5600
MT
Merger
in 1995
Chendur Forge Exports Limited with EL Forge
Limited Capacity increased to 14200 MT
In
1997
State of the art CNC Tool Room
In
1999
Development of Warm and Precision Forgings
Total
Installed capacity of the company is 14200 MT.
VISION
To serve global customers by building alliances with leading forging
majors and acquiring & developing world class manufacturing technology
& practices through a continually developing humane organization to
maximize shareholder value.
INITIATIVES TAKEN BY EL FORGE TO ATTAIN GLOBAL STANDARDS
TPM
Total Productive Maintenance journey started since last 2-1/2 years, has
considerably improved uptime of machines
QS-9000 Quality Certification
Three Factories certified by UL of USA. Originally certified in the year May
24, 1999. Completed 6 times surveillance Audits
SGA
Small Group Activity organized at all Factories. Groups working on Continuous
improvements
Near Net Shape Forgings
Technical upgradation of Tooling - Flashless / Near Net Shape / Warm
forgings
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.43.39 |
|
UK Pound |
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.57.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/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 |
|