MIRA
INFORM REPORT
|
Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
FABER
HEATKRAFT INDUSTRIES LIMITED |
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|
|
|
Registered Office : |
37/1, Kondhwa – |
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Country : |
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|
Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
11.04.1997 |
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Com. Reg. No.: |
107240 |
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CIN No.: [Company
Identification No.] |
U99999PN1997PTC107240 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNEF00532A |
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|
|
PAN No.: [Permanent
Account No.] |
AAACF4002G |
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|
Legal Form : |
A
closely held public limited liability company |
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|
|
|
Line of Business : |
Manufacturers
of Kitchen Hoods, Gas Hobs and Cooking Ranges. |
RATING
& COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 721008 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and progressive company of Faber SpA. Directors are reported as experienced,
respectable and resourceful businessmen.
Their trade relations are reported as fair. Financial
position is satisfactory. Payments are
usually correct and as per commitments. The
company can be considered good for any normal business dealings. It can be regarded as a promising business
partner in a long-run. We
spoke to Mr. Bhaskar, who has agreed to part with latest details, and if he
provides, we shall send a. |
LOCATIONS
|
Registered Office/Factory : |
37/1, Kondhwa – |
|
Tel. No.: |
91-20-26930408
/ 26930073 / 26930893 |
|
Mobile No.: |
91-9890011763 |
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Fax No.: |
91-20-26930893 |
|
E-Mail : |
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|
Location : |
Owned |
|
|
|
|
Corporate
Office : |
425,
Sterling Centre, 4th Floor, |
|
Tel.
No.: |
91-20-2636334 |
|
Fax
No.: |
91-20-2632985 |
DIRECTORS
|
Name : |
Mr.
Prahlad Badrinarayan Bhutada |
|
Designation : |
Managing Director |
|
Address : |
H –
1004, Renoir Maestros, Next to Salunke Vihar, Wanwadi, Pune 411 040, |
|
Date of Birth/Age : |
04.12.1965 |
|
Date of Appointment : |
15.06.2006 |
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|
|
|
Name : |
Mr.
Alvaro Abramo Galassi |
|
Designation : |
Director |
|
Address : |
Via Flaminia, 64, Fossato Di Vico, |
|
Date of Appointment : |
11.04.1997 |
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|
|
|
Name : |
Mr.
Raffaele Astrolfo Baldasserini |
|
Designation : |
Director |
|
Address : |
Via
Gentile, 36, Fabriano Ancona |
|
Date of Appointment : |
11.04.1997 |
|
|
|
|
Name : |
Mr.
Giancarlo Pilade Cennini |
|
Designation : |
Director |
|
Address : |
Via Don.
Minzoni, 148 60044, Fabriano (AN), Fabriano 60044 |
|
Date of Appointment : |
11.04.1997 |
|
|
|
|
Name : |
Mr.
Dilip Raghunath Shringarpure |
|
Designation : |
Whole
Time Director |
|
Address : |
501,
Victory CHSL, 5th Floor, Plot No. 24, Off. Subhash Road, Vile
Parle (East), Mumbai 400 057, Maharashtra, |
|
Date of Birth/Age : |
30.06.1955 |
|
Date of Appointment : |
11.04.1997 |
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|
|
|
Name : |
Mr. Bruno Galileo Bigaran |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Antonio Francesco Scarcella |
|
Designation : |
Director |
KEY
EXECUTIVES
|
Name
: |
Mr.
Bhaskar S Soman |
|
Designation
: |
Company
Secretary |
|
Address
: |
A –
12, Shree Ram Residency, Shuvarnabaug Colony, Kothrud, Pune 411 038, |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
|
|
1714308 |
|
Andreas
Hausuirthy Jointly with Faber spa |
|
1 |
|
Bruno
Galileo Bigaran Jointly with Faber spa |
|
1 |
|
Jean
Claude Michaud Jointly with faber spa |
|
1 |
|
Juerg
Fischer Jointly with Faber spa |
|
1 |
|
Monika
Egli Jointly with Faber spa |
|
1 |
|
Wolfganag
Kemmerling Jointly with Faber spa |
|
1 |
|
Total |
|
1414314 |
Equity
share breakup (percentage of total equity)
|
S.
No. |
Category
|
Percentage |
|
1 |
Foreign holdings (foreign institutional
investor(s), Foreign companie(s), Foreign financial institution(s), Non
resident Indian(s) or Overseas corporate bodies or others |
100.00 |
|
|
Total
|
100.00 |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturers
of Kitchen Hoods, Gas Hobs and Cooking Ranges. |
|
|
|
|
Products : |
v
Built-in Hobs v
Kitchenwares |
GENERAL INFORMATION
|
No. of Employees : |
100 |
|
|
|
|
Bankers : |
Ř
IndusInd Bank Limited, IndusInd House, 2401, Ř ABN Amro Bank N V 71 / 72, 7th Floor, Sakhar Bhavan, Nariman Point, Mumbai 400 021, |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name: |
BSR
and Associates Chartered
Accountants |
|
Address: |
703, 7th
Floor, Godrej Castlemaine, Next to Ruby Hall Clinic, Bund Garden Road, Pune
411 001, Maharashtra, India |
|
Tel. No.: |
91-20-30585754
/ 30585765 |
|
Fax No.: |
91-20-30585775 |
|
|
|
|
Associates/Subsidiaries : |
Heatkraft
Electricals Private Limited Heatkraft
Appliace Limited |
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|
|
|
Holding Company: |
Address:
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
2,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 20.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,734,314 |
Equity Shares |
Rs. 10/- each |
Rs. 17.143 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.12.2006 |
31.12.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1]
Share Capital |
|
17.143 |
17.143 |
|
|
2]
Share Application Money |
|
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
|
163.109 |
102.758 |
|
|
4]
(Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
180.252 |
119.901 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
|
0.000 |
0.000 |
|
|
2]
Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
180.252 |
119.901 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
|
30.994 |
35.782 |
|
|
Capital
work-in-progress |
|
0.000 |
0.101 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX
TAX ASSETS |
|
14.920 |
4.808 |
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
113.032 |
102.222 |
|
|
Sundry
Debtors |
|
145.094 |
105.966 |
|
|
Cash
& Bank Balances |
|
92.011 |
34.569 |
|
|
Other
Current Assets |
|
0.574 |
0.000 |
|
|
Loans
& Advances |
|
34.394 |
14.672 |
|
Total Current
Assets |
|
385.105 |
257.429 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
|
172.409 |
137.766 |
|
|
Provisions |
|
78.358 |
40.461 |
|
Total Current
Liabilities |
|
250.767 |
178.227 |
|
|
Net Current Assets |
|
134.338 |
79.202 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
|
0.000 |
0.008 |
|
|
|
|
|
|
|
|
TOTAL |
|
180.252 |
119.901 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
|
|
Sales Turnover |
|
715.172 |
586.617 |
|
|
Total
Income |
|
715.172 |
586.617 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
93.710 |
54.991 |
|
|
Provision for Taxation |
|
33.359 |
20.483 |
|
|
Profit/(Loss) After Tax |
|
60.351 |
34.508 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
|
258.158 |
178.202 |
|
|
Capital Goods |
|
0.904 |
4.371 |
|
Total
Imports |
|
259.062 |
182.573 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Depreciation & Amortization |
|
11.234 |
7.307 |
|
|
Other Expenditure |
|
595.914 |
517.012 |
|
Total
Expenditure |
|
607.148 |
524.319 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
|
8.43 |
5.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
13.10 |
9.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
22.52 |
18.75 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.51 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.39 |
1.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.53 |
1.44 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporation identity number or foreign company registrations number of the company |
U99999PN1997PTC107240 |
|
Name of the company |
FABER HEATKRAFT INDUSTRIES LIMITED |
|
Address |
37 / 1, |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Book Debts, Movable Property (not being pledge), Floating Charge |
|
Particular of the charge holder |
ABN Amro Bank N V 71 / 72, 7th Floor, Sakhar Bhavan, Nariman Point,
Mumbai 400 021, |
|
Nature or description of the instrument creating charge |
a) Supplemental Facility cum Hypothecation Agreement b) Supplemental Special Hypothecation Agreement (both constitute a single charge) |
|
Date of the instrument creating charge |
02.08.2007 |
|
Amount Secure by the charge |
Rs. 32.500 millions |
|
Brief of the principal terms and conditions and extent and operation of the charge |
a) Rate of Interest: OD – At Bank’s PLR (presently 12.75% p. a. ) Less 0.75% p. a. i. e. 12% p. a. STPLR / FCNR (B) loans /cheque purchase / bill Discounting – at negotiated rates LC / Gurarantee – standard Tariff. b) Terms of Repayement: OD – repayable on demand CP – Fluctuating STPLR / FCNR (B) Loans – Max 12 months Bill discounting – Max 180 days LC – validity / usance – Max 180 days each Guarantees – Max 12 months including claim period c) Margin: 25% d) Extent and operation of the charge: The bank is having pari passu charge with other lenders (limit will be restricted to the extent of ABN Amro Bank’s shares in the multiple banking arrangement on the security offered by the company. |
|
Particulars of the Property charged |
Hypothecation by way of pari passu charge on a) all the book debts and other tangible movable properties of the borrower including stocks, spares, finished and semi finished goods, goods in process of manufacture. b) fixed assets as detailed in the annexure to the agreement whether installed or not and whether now lying loose. (details as more described in the enclosed agreements) |
|
Particulars of present modification |
At the borrower request the total existing facility of Rs. 32.500 millions (fund and non fund based) has been modified / revised in the following manner by the bank 1) LC Rs. 32.500 millions 2) OD / STPLR / CP / FCNR (B) BD of Rs. 27.500 millions (sub limit of 1) 3) Guarantee Rs. 5.000 millions (sub limit of 1) 1) Hence there is no charge in the charge amount and other terms and conditions shall remains the same. |
|
Name of the company |
FABER HEATKRAFT
INDUSTRIES LIMITED |
|||||||||
|
Presented By |
ABN Amro BANK N V FABER HEATKRAFT INDUSTRIES LIMITED |
|||||||||
|
1) Date and description of instrument creating the change |
16.10.2003 a) Faciltiy – cum – Hypothecation agreement and b) Special Hypothecation agreement (collectively constitute a single charge for Rs. 22.500 millions ) |
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|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 22.500 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 |
a) The borrower hypothecates to and charges in favour of the bank by way of first charge all the book debts of the borrower and all other movable assets of the borrower i. e. pari passu charge over stock and book debts with other current assets of the company and all other movable properties of the borrower such as raw material, stocks, spares, semi finished and finished goods, goods in process of manufacture and all goods manufactured therefrom all such tangible movable properties belonging to the borrower which now are hereafter from time to time during the subsistence of the security hereby created be brought in or stored in or about the borrower’s factories, premises, warehouses and godown, including and such goods in the course of transit or delivery and goods lying with third parities belonging to the borrower. b) Hypothecation of the borrower’s fixed assets detailed in the annexure to the agreement whether installed or not and whether now lying loose or in cases or upon or at any item hereafter during the continuance of this security on or upon or about the premises and godowns, factory or wherever else the may be or be held by any party ot the or disposition of the borrower or of transit |
|||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
a) The above assets hypothecated to the bank as security for the payment by the borrower to the bank of all the moneys that may be due and payable by the borrower to the bank under the credit facilities of Rs. 22.500 millions with all interest charges, costs and expenses payable to and incurred by the abnk shown hereunder b) interest @ bank’s prime lending rate less 3% p. a. (presently PLR 16% pa) i. e. 13%pa
c)for other fund based at negotiated rates d)additional interest@ 25% ap or 2% higher than the normally applicable rate, whichever is higher e) the borrower further agrees that the hypothecated assets shall also be security for all other monies that may be due and payable by the borrower to the bank on any account whatsoever, whether person or future, including the liability of the borrower as a surety of co obligate along with any other person |
|||||||||
|
5) Name and Address and description of the person entitled to the charge. |
ABN Amro Bank N V 74, Sakhar Bhavan, 7th Floor, Nariman Point, Mumbai 400
021, |
Subject
plans capacity expansion
Their
Bureau
Chennai ,
Dec. 3
Subject
plans to expand capacity of its plant in Pune to keep pace with the growing
market.
The
company manufactures kitchen chimneys, gas hobs and gas ranges and has now
introduced a baffle filter that has been designed with Indian cuisine in mind.
Mr Kawal
Hira, Senior Vice-President, (Business Strategy), Faber-India, said that
traditionally Indian cooking requires a lot of oil and spices which releases a
lot of oily smoke in the kitchen. The oily smoke clogs the traditional mesh
filter of the kitchen chimney frequently and cleaning the mesh filter is
difficult, he said.
The
research and development wing of Faber-Italy has developed this new filter for
the Indian market based on the inputs from Faber-India. Faber has patented the
design of the baffle filter.
The new
assembly line will increase capacity by 70 per cent, taking the total
manufacturing capacity to 10,000 chimneys, 3,000 gas hobs and 1,000 cooking
ranges with an additional investment of Rs 40 lakh.
This year
the company plans to open another 20 to 25 mini Faber Gallerias across the
country. Mr Hira said that the company would be targeting State capitals and
smaller towns. There will 55 Faber Gallerias from the present 36. The company
also plans to set up its exclusive retail chain of kitchen appliances in the
country.
Mr Hira
said the company had registered a turnover of Rs 390.000 Millions last year and
hoped to achieve a turnover of Rs 520.000 Millions by the end of this year
(January to December). The South contributes to almost 40 per cent of its
sales, he said.
The company
is a joint venture between Faber SpA
The Italian
company is now planning to further strengthen its joint venture with new
technology and research and development support, he said.
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.39.73 |
|
|
1 |
Rs.81.37 |
|
Euro |
1 |
Rs.56.63 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|