MIRA
INFORM REPORT
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Report Date : |
16.10.2007 |
IDENTIFICATION DETAILS
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Name : |
HILTON METAL FORGING LIMITED |
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Registered Office : |
701, Palmspring, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.07.2005 |
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Com. Reg. No.: |
154986 |
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CIN No.: [Company
Identification No.] |
U28900MH2005PLC154986 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH0920E |
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Legal Form : |
A closely held public limited company. The company is planning IPO,
soon. |
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Line of Business : |
Manufacturer and Exporter of Stainless steel pipe fittings, flange, seam
Stubends, Forged Ball, Valve Body, Chokes, Bonnets. |
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 378800 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. The company intends to raise substantial sum through its IPO, Soon. It can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office / Head Office : |
701, Palmspring, |
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Tel. No.: |
91-22-40426565 |
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Fax No.: |
91-22-40426566 |
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E-Mail : |
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Website : |
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Administrative Office : |
60, Whispering |
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Tel. No.: |
91-22-28863359 |
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Fax No.: |
91-22-28865488 |
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E-Mail : |
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Websites: |
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Works : |
Plot No. 21,25, 28, 29, Shah and Mehta industrial Estate, Village
Ghonsal, Tal Wada, District Thane |
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Tel. No.: |
91-2526 222 444 /222 555 |
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Fax No.: |
91-2526 222 666 |
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E-Mail : |
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Branches : |
D -51103 KOLN, Tel No: 0049 1772804798 M/s Evenort Limited Address: Tel No: 0044 190 9569361 |
DIRECTORS
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Name : |
Mr. Yuvraj Malhotra |
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Designation : |
Managing director |
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Address : |
9D/504 Alika Nagar, |
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Mobile No: |
91-9820147638 |
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Tel No: |
91-22-28842135 |
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Name : |
Mr. Navraj Hiralal Malhotra |
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Designation : |
Whole time Director |
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Address : |
H/703 |
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Mobile No: |
91-9422668478 |
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Tel No: |
91-22-6573268 |
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Name : |
Mr. Harmohinder Singh Dhingra |
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Designation : |
Director |
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Address : |
3A/101 Whishpering Palm Centre, |
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Tel No: |
91-22-28871697 |
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Name : |
Mr. Manoj Kumar More |
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Designation : |
Director |
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Address : |
A /202 Sangeet Complex Building No.11, |
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Mobile No: |
91-9820157235 |
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Name : |
Mr. Sanjay Jain |
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Designation : |
Director |
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Address : |
L-2, priya Apartments, D Block, Vikar Puri, |
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Mobile No: |
91-9811579069 |
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Name : |
Mr. Navin Choksi |
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Designation : |
Director |
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Address : |
D-7, shanty Society, mogul Lane, mahim, Mumbai – 400 016, |
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Mobile No: |
91-9323467852 |
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Name : |
Mr. Joe Mckay |
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Designation : |
Director |
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Address : |
Houghton Road, North Anston Trading Estate, North Anston, Sheffield, S
31 7 JN, UK |
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Tel No: |
1909 569 961 |
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Name : |
Mr. Ram Prosad Ghosh |
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Designation : |
Director |
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Address : |
S/o Prahlad Chandra Ghosh, B -44, Flat No. 103 |
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Tel No: |
91-22-24591734 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Stainless steel pipe fittings, flange,
seam Stubends, Forged Ball, Valve Body, Chokes, Bonnets. |
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Exports : |
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Countries : |
Middle East, Europe, United |
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GENERAL INFORMATION
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No. of Employees : |
100 |
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Bankers : |
· Saraswat Bank Address: Mumbai ·
State Bank of Address: Mumbai |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R K Chaudhary and Associates Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity shares |
Rs.10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6993000 |
Equity shares |
Rs.10/- each |
Rs.69.930
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 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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68.400 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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26.300 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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94.700 |
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LOAN FUNDS |
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1] Secured Loans |
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133.200 |
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2] Unsecured Loans |
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0.000 |
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TOTAL BORROWING |
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133.200 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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227.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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68.700 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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114.000 |
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Sundry Debtors |
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46.000 |
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Cash & Bank Balances |
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9.000 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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62.100 |
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Total
Current Assets |
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231.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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71.900 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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71.900 |
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Net Current Assets |
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159.200 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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227.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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426.000 |
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Other Income |
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30.900 |
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Stock adjustments |
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21.500 |
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Total Income |
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478.400 |
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Profit/(Loss) Before Tax |
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53.400 |
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Provision for Taxation |
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16.800 |
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Profit/(Loss) After Tax |
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36.600 |
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Expenditures : |
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Raw materials |
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303.000 |
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Other manufacturing expenses |
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81.300 |
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Employee Cost |
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5.100 |
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Selling and administrative expenses |
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22.300 |
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Interest and financial charges |
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9.500 |
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Depreciation |
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3.800 |
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Total Expenditure |
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425.000 |
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QUARTERLY RESULTS
|
Year |
30.06.2007 |
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Type
|
1st Quarter |
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Sales Turnover |
143.500
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Other Income |
11.900
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Total Income |
155.400
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Total Expenditure |
132.800
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Operating Profit |
22.600
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Interest |
6.300
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Gross Profit |
16.300
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Depreciation |
0.000
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Tax |
5.500
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Reported PAT |
10.800
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KEY RATIOS
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Year |
31.03.2006 |
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Debt-Equity Ratio |
1.41 |
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Long Term Debt-Equity Ratio |
1.41 |
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Current Ratio |
3.21 |
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TURNOVER RATIOS |
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Fixed Assets |
5.52 |
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Inventory |
3.74 |
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Debtors |
9.26 |
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Interest Cover Ratio |
6.62 |
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Operating Profit Margin(%) |
15.66 |
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Profit Before Interest And Tax Margin(%) |
14.77 |
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Cash Profit Margin(%) |
9.48 |
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Adjusted Net Profit Margin(%) |
8.59 |
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Return On Capital Employed(%) |
27.60 |
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Return On Net Worth(%) |
38.65 |
LOCAL AGENCY FURTHER INFORMATION
WEBSITE DETAILS:
SUBJECT is one of the technology leaders in the
forging industry providing the highest quality products and services for a one stop
solution to cater to all the forging needs. With an enviable reputation for
quality products they are fully equipped to carry their reputation as “forging
leaders”.
They stand among the
elite along with their engineers and application experts and since their
inception in 1997 they have undergone continuous development and their
commitment is reflected by their meticulous application of monitoring
procedures which ensures complete material traceability during the production
cycle. All their Products And Processes Are Certified And Their Quality Is
Second To None And They’re Proud Of It. At company, The Combination Of
Inventory, Product Knowledge And Value Added Services Combine To Provide Their
Clients With
An HMFL Solution.
· Fair Pricing
· Extensive Inventory
· Fast Delivery
· Special Finishes
· Close Tolerance
· Special Chemistry
Over the years
subject has been investing in creating state of art facilities and its forging
and machining is comparable to the best in the industry. Subject is one of the
most innovative and exciting companies to emerge and they are proud to say that
all their products embody highest international standards because they are
built with expertise. Every HMFL product
is as per the customer’s specification and a result of their dedication. as the
company continues to grow and expand their goal and commitment increases and
they hereby promise that they will remain competitive and keep delivering the
same quality products because they at company understand and know that quality
and quantity goes hand in hand.
The company believes in continuous improvisation of
manufacturing process through advanced technology to meet customer’s
requirement by proper training and development programmed.
The company has got imported as well as indigenously
developed machinery and manufacturing facilities to Produce All Kinds Of Its
Products. The Company Has Got In House Capability And Facilities To
Meet The Forging Process, Heat Treatment, Machining Process And Testing
Laboratory. The Process Control And Monitoring Is Primary Concern To
Regulate The Important Parameters Of The Manufacturing Process. The Timely
Calibration Of Instruments And Maintenance Schedule Helps Not Only To Increase
The Production But Also It Ensures A Good Quality Product.
SUBJECT is also more concerned about the health and
safety of its employees by providing safety equipment to its
employees. Adequate fire extinguishers are provided for safety precautions. And
also a detailed training has been given to its employees regarding safety is
concerned. All necessary such facilities are available in the plant.
Subject has been recognized in the world wide market
for the supply of flanges, stub ends and various forged products and also has
been appreciated by various customers for not only the good quality products
but also timely deliveries. Subject is maintaining a very good
relation with its customers since past decades. it has also achieved
certifications like iso 9001:2000 from rwtuv –
Corporate
Manufacturing Plant At Wada
Hilton Metal
Forging Ltd. Is A Government
Recognized Export House And Leading Manufacturer And Exporter Of Alloy Steel
And Stainless Steel Forged Components Ranging In Size From 0.5 Kg To 750 Kg Per
Piece In Closed-Die.
SUBJECT Manufactures a
Incorporated In
1997, SUBJECT Has Built A Solid Reputation By Exporting To Challenging
And Highly Competitive Markets Like
They Procure Quality
Raw Material From Leading Steel Mills And Use State-Of-The-Art Machinery
Resulting In Better Quality Products. Exhaustive Quality Checks At Every Stage
Right From Conception, Designing And Manufacturing Ensures High Accuracy In
Terms Of Composition, Dimensions, Measurements And Delivery.
HILTON METAL
FORGING Limited
GOVT. RECOGNIZED
EXPORT HOUSE
Customer service is
proactive.
They at company
believe that customer satisfaction means getting off to a new good start
understanding the urgency and setting their targets accordingly.
Quality first
reputation then customer first goodwill then
Customer
satisfaction is the ultimate goal and the bottom line is to increase quality
while lowering per unit cost to the end user. The company works as
a partner to solve all the steel problems and create solutions. They have
strived hard over the years and this has been reflected by the recent acclaim
awarded to us the export excellence certificate by engineering export promotion
council. Their responsibility increases and The Company does not
intend resting on its laurels. Their goal is to be more than
successful.
Hilton Metal Forging
to raise Rs 381.5 mn via IPO:-
Hilton Metal Forging plans to raise Rs 381.5 million via an IPO, while, an additional sum to the tune of Rs 100 million will be raised through a term loan from State Bank of Hyderabad, said the draft prospectus of the company. The loan amount constitutes 20.77% of the total project cost.
The company has
mooted an expansion of its existing capacity from 11,100 MTA to 24,900 MTA by
installing additional plant and machinery in order to augment the existing
manufacturing facilities.
The company`s target customers are primarily OE manufacturers and they contract
their sales on direct sales basis, both in domestic and international market.
It has already established a strong relationship with the leading automobile
manufacturers and OE manufacturers in
The company is one
of the two Indian forging companies having US approval for 0.89% import duty as
against anti-dumping duty of 160% imposed on other units. This has opened a
very big market for the company.
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.39.68 |
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|
1 |
Rs.80.53 |
|
Euro |
1 |
Rs.56.23 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
--- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|