MIRA
INFORM REPORT
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Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
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Name : |
DRASTIC FORGING PRIVATE LIMITED |
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Registered Office : |
Stephen House, 4 BBD Bag [East], 3rd Floor, Room No. 51-B,
Kolkata – 700001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.12.1982 |
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Com. Reg. No.: |
21-35501 |
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CIN No.: [Company
Identification No.] |
U99999WB1982PTC035501 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALD01672G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufactures all types of Railway Track Fitting &
Fixing items |
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 30000 |
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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 experience 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 / Factory : |
Stephen House, 4 BBD Bag [East], 3rd Floor, Room No. 51-B,
Kolkata – 700001, West Bengal, |
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Tel. No.: |
91-33-22314497 / 4498 / 26654772 |
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Mobile No.: |
91-9830036189 |
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Fax No.: |
91-33-22427685 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Devendra Kumar Jain |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
18.10.1956 |
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Date of Appointment : |
01.04.1991 |
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Name : |
Ms. Manju Jain |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
16.03.1963 |
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Date of Appointment : |
01.04.1991 |
KEY EXECUTIVES
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Name : |
S A and Associates |
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Designation : |
Company Secretary |
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Address : |
‘Swastik’, 334/157, |
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Tel. No.: |
91-33-2534245 / 65215998 / 25343481 |
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Mobile No.: |
91-9830016001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Deep Chand Jain |
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25410 |
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Virendra Kumar Jain |
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61710 |
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Asha Devi Jain |
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73810 |
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Itesh Kumar Jain |
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24200 |
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Bharat Kumar Jain |
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24200 |
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Kamla Devi Jain |
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61710 |
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Devendra Kumar Jain |
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61710 |
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Kamna Jain |
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157300 |
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Total |
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490050 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufactures all types of Railway Track Fitting &
Fixing items |
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Products : |
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Exports : |
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Countries : |
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GENERAL INFORMATION
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Customers : |
In ·
Ministry of Railway - Indian ·
All Indian Railways ·
Steel Plants ·
Defence ·
Railway Coach Factories ·
Railway Electrification Overseas ·
·
Sri Lanka Railways ·
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·
·
·
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·
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No. of Employees : |
100 |
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Bankers : |
Punjab National Bank, |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Rajiv Kumar Mahajan Chartered Accountants |
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Address : |
14/2, |
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Associates/Subsidiaries : |
Engineering Export Promotion Council of |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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490,050 |
Equity Shares |
Rs. 10/- each |
Rs. 4.901
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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4.900 |
4.900 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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2.560 |
2.324 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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7.460 |
7.224 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.104 |
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TOTAL |
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7.460 |
7.328 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.387 |
1.544 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.414 |
0.048 |
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DEFERREX TAX ASSETS |
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0.083 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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4.710 |
0.000 |
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Sundry Debtors |
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4.854 |
1.445 |
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Cash & Bank Balances |
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1.732 |
3.324 |
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Loans & Advances |
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5.991 |
1.425 |
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Total
Current Assets |
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17.287 |
6.194 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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11.655 |
0.444 |
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Provisions |
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0.056 |
0.014 |
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Total
Current Liabilities |
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11.711 |
0.458 |
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Net Current Assets |
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5.576 |
5.736 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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7.460 |
7.328 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover including Other Income |
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16.398 |
12.167 |
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Total Income |
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16.398 |
12.167 |
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Profit/(Loss) Before Tax |
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0.105 |
0.172 |
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Provision for Taxation |
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[0.131] |
[0.071] |
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Profit/(Loss) After Tax |
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0.236 |
0.101 |
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Expenditures : |
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Depreciation & Amortization |
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0.174 |
0.197 |
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Other Expenditure |
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16.119 |
11.798 |
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Total Expenditure |
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16.293 |
11.995 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.44 |
0.83 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.64 |
1.41 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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0.56 |
2.22 |
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Return on Investment (ROI) (PBT/Networth) |
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0.01 |
0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.57 |
0.06 |
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Current Ratio (Current Asset/Current Liability) |
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1.48 |
13.52 |
LOCAL AGENCY FURTHER INFORMATION
AS PER WEBSITE
Profile
Railways are being used by
90% of their countrymen considering that they are the cheapest mode of
transport for outstation travelling. Hence, their construction along with the
tracks remains the biggest concern for the railways sector. With an aim of
serving this mainstream sector, subject
was incepted in the year 1974. Armed with an ISO 9001:2000 certification,
they are a renowned manufacturer, supplier and exporter of a premium range of railway track fittings and
overhead electric line hardware like Rolling Mill, Fish Plates & Forging Components,
Points & Crossings, Switches & Glued Joints, Rubber Moulded Products,
Electrical Pole Line Hardware, Joint Plates/Fish Plates Rolled Section,
Fasteners, Rail Clips & Rail Clamps, Nylon Fittings, and many such allied
products. Their product
line is characterized by superior strength, longevity and durability. Made with
modern and sophisticated techniques, these products have been thoroughly
approved by the Indian Railways. Their organization has also been awarded with
the "Certificate of Export Excellence" and "Shield of Highest
Exporter" for three successive years.
They are a quality
driven company, always paying utmost importance to the quality of the products.
As they are manufacturing products that cast a major impact on people's lives,
they make certain to maintain their quality so that they are safe to use.
Timely delivery and competitive prices are some other features that make these
products a hit amongst their customers. They feel immense pleasure in knowing
that their products have satisfied all of them and they will continue to serve
them wholeheartedly with their quality product range. Owing to such a large
scale popularity, they have started to export them to regions like
Quality Assurance
Quality is the focal
point around which the whole manufacturing process is centered at Drastic
Forging (P) Ltd. They make sure that all their products are of the best quality
and safe to use. Stringent and accurate quality supervision is undertaken by
their quality inspectors who possess an in-depth knowledge of the railway track
fittings & overhead electric line hardware products and their functions.
Their standard of quality goes even beyond the usual inspection of the
products. These products epitomize the exact requirements and expectations of
the Indian Railways. They are repeatedly tested for assessing their performance
and durability. Strictly conforming to national and international railway
quality standards, they make sure that they turn out to be of top notch
quality.
Infrastructure
Subject takes pride in
having a robust infrastructure capable of meeting any kind of requirement.
Their company has already acquired land of approx. 10.4 million sq. ft. for
exports. They have a blend of the most modern, state of the art machines as
well as highly skilled engineers and technicians. With adequate technical know
how, they are able to always stay ahead in the race in terms of having the
latest technology. Their manufacturing unit is also empowered with the latest
technology and equipped with all the required facilities. They have a Research
& Development team which always makes all the efforts in coming up with
cost effective and innovative products, serving the railways sector in a better
way. With a capacious warehousing facility having full ventilation, there is no
problem in meeting the bulk orders at any time.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.39.73 |
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1 |
Rs.81.37 |
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Euro |
1 |
Rs.56.63 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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