MIRA
INFORM REPORT
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Report Date : |
16.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
SAURASHTRA IRON FORGING PRIVATE LIMITED |
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Registered Office : |
Survey No. 211, Plot No. 7/8, Vearaval [Shapar], Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.02.1990 |
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Com. Reg. No.: |
04-13398 |
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CIN No.: [Company
Identification No.] |
U27100GJ1990PTC013398 |
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IEC No.: |
2499003138 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTS01189G |
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PAN No.: [Permanent
Account No.] |
AADCS1608N |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Forging Products |
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 81000 |
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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 and reputed company having satisfactory
track. Trade relations are fair. Payments are usually 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 / Factory : |
Survey No. 211, Plot No. 7/8, Vearaval [Shapar], Industrial Area, |
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Tel. No.: |
91-2827-252193 / 252194 |
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Fax No.: |
91-2827-252894 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Branches : |
Gut No. 159, 3 B-1, Near Speed Age Express Cargo service, Behind Hotel
Pinala, |
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Mobile No.: |
91-9370721491 |
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Area : |
Rented |
DIRECTORS
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Name : |
Mr. Amrutlal Khimjibhai Bharadia |
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Designation : |
Director |
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Address : |
“Ronak”, 131, Astron Society, Corner of Road No. 5/6, Jaymall Parmar
Marg, Rajkot – 360004 |
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Date of Birth/Age : |
17.10.1951 |
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Qualification : |
S. S. C. |
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Experience : |
30 Years |
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Date of Appointment : |
22.02.1990 |
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Name : |
Mr. Shantilal Khimjibhai Bharadia |
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Designation : |
Director |
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Address : |
“Dhaval”, 21-22 |
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Date of Birth/Age : |
24.10.1958 |
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Qualification : |
S.S.C. |
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Experience : |
25 Years |
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Date of Appointment : |
22.02.1990 |
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Name : |
Ms. Ranjanben Khimjibhai Bharadia |
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Designation : |
Director |
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Address : |
“Ronak”, 131, Astron Society, Corner of Road No. 5/6, Jaymall Parmar
Marg, Rajkot – 360004 |
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Date of Birth/Age : |
26.10.1954 |
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Qualification : |
S.S.C. |
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Experience : |
10 Years |
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Date of Appointment : |
10.04.2004 |
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Name : |
Mr. |
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Designation : |
Director |
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Address : |
“Ronak”, 131, Astron Society, Corner of Road No. 5/6, Jaymall Parmar
Marg, Rajkot – 360004 |
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Date of Birth/Age : |
17.04.1984 |
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Qualification : |
B. Com |
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Experience : |
3 Years |
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Date of Appointment : |
10.04.2004 |
KEY EXECUTIVES
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Name : |
Ms. Priti S. Doshi |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Ranjanben A. Bharadia |
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307132 |
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198500 |
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Amrutlal K. Bharadia |
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128000 |
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Anitaben S. Bharadia |
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83608 |
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Amrutlal K. Bharadia – HUF |
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50000 |
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Anjaliben A. Bharadia |
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50000 |
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Hansaben J. Bharadia |
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44400 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Forging Products |
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Products : |
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Exports : |
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Products : |
Bearing Races [Turned] |
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Countries : |
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Imports : |
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Products : |
Wooden Boxes |
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Countries : |
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Terms : |
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Selling : |
Credit [30-60 days] |
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Purchasing : |
Cash and Credit [60 days] |
PRODUCTION STATUS
|
Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Bearing Races [Turned] |
Tones |
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3800 p.a. |
2008.245 |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
OEM’s SKF |
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No. of Employees : |
61 [In Office : 14, In Factory : 46 and In Branch :1] |
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Bankers : |
Credit Limit : Rs. 70.000 Millions [Rs.
34.000 Millions C.C. Limit, Rs. 36.000 Millions Term Loan]
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K P Bhansali and Company Chartered Accountants |
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Address : |
708 Everest Complex, |
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Tel. No.: |
91-281-2220123 |
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Fax No.: |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
1,000,000 |
Equity Shares |
Rs. 10/-
each |
Rs. 10.000
Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,000,000 |
Equity Shares |
Rs. 10/-
each |
Rs. 10.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
10.000 |
7.564 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
10.491 |
9.908 |
2.082 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
20.491 |
19.908 |
9.646 |
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LOAN FUNDS |
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1] Secured Loans |
48.286 |
31.680 |
36.742 |
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2] Unsecured Loans |
10.255 |
7.781 |
4.168 |
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TOTAL BORROWING |
58.541 |
39.461 |
40.910 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
79.032 |
59.369 |
50.556 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
48.402 |
25.281 |
19.050 |
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Capital work-in-progress |
0.788 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
35.852
|
26.496 |
29.411 |
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Sundry Debtors |
20.319
|
20.205 |
20.982 |
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Cash & Bank Balances |
0.704
|
1.567 |
0.535 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.594
|
2.567 |
4.723 |
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Total
Current Assets |
60.469
|
50.835 |
55.651 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
28.995
|
15.996 |
23.098 |
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Provisions |
1.632
|
0.751 |
1.047 |
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Total
Current Liabilities |
30.627
|
16.747 |
24.145 |
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Net Current Assets |
29.842
|
34.088 |
31.506 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
79.032 |
59.369 |
50.556 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
125.937 |
95.423 |
91.153 |
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Other Income |
1.502 |
6.694 |
2.129 |
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Total Income |
127.439 |
102.117 |
93.282 |
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Profit/(Loss) Before Tax |
0.881 |
8.799 |
3.872 |
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Provision for Taxation |
0.297 |
0.973 |
0.312 |
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Profit/(Loss) After Tax |
0.584 |
7.826 |
3.560 |
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Earnings in Foreign Currency : |
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Export Earnings [In EURO] |
6570.58 |
2775.50 |
NA |
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Expenditures : |
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Raw Material Consumed |
86.983 |
61.579 |
60.249 |
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Power & Fuel |
0.000 |
8.326 |
8.254 |
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Personnel Expenses |
0.000 |
1.553 |
1.593 |
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Repairs and Maintenance |
0.000 |
2.299 |
0.807 |
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Manufacturing Expenses |
20.920 |
11.829 |
11.445 |
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Administrative Expenses |
8.337 |
7.5667.588 |
5.940 |
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Interest |
5.831 |
4.838 |
4.973 |
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Depreciation & Amortization |
4.063 |
3.192 |
2.516 |
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Increase/(Decrease) in Finished Goods |
0.425 |
[7.886] |
[6.367] |
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Total Expenditure |
126.559 |
93.318 |
89.410 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.46
|
7.66 |
3.82 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.70
|
9.22 |
4.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.81
|
11.56 |
5.18 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.44 |
0.40 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.35
|
2.82 |
6.74 |
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Current Ratio (Current Asset/Current Liability) |
|
1.97
|
3.04 |
2.30 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
SAURASHTRA IRON
FORGING PRIVATE LIMITED |
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Presented By |
SAURASHTRA IRON
FORGING PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Letter of
hypothecation of securing goods and book debts dated 16.08.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 22.686
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The limit of Rs.
22.686 Millions is secured by hypothecation of stock of raw materials, semi finished
goods, finished goods, book debts and machineries its spares, parts and
accessories etc. and more particularly the properties mentioned in
hypothecation agreement dated 16.08.2006 |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin : 25 % on
Stock on 10 % on Book Debt Interest 11.5% on
Cash Credit Limit 15 % on term Loan
Duration : Term
loan is Repayable within 5 years and CC is repayable on demand |
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5) Name and Address and description of the person entitled to the charge. |
Indian Overseas
Bank Main Branch |
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6) Date and brief description of instrument modifying the charge |
20.10.2003 Letter of
Hypothecation for securing machineries / goods / book debts |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The credit
facility of Rs. 22.686 Millions is enhanced to Rs. 25.686 Millions by working
capital term loan of Rs. 3.000 Millions The said working
capital term loan is subject to the further terms and conditions set out in
the letter of hypothecation and sanction letter dated 20.10.2003 |
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This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
10008569 |
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Corporate
identity number of the company |
U27100GJ1990PTC013398 |
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Name of the
company |
SAURASHTRA IRON FORGING PRIVATE LIMITED |
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Address of the registered
office or of the principal place of
business in |
Survey No. 211, Plot No. 7/8, Vearaval [Shapar], Industrial Area, |
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Type of charge |
Immovable Property Book Debts Movable Property |
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Particular of
charge holder |
Bank of |
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Nature of
description of the instrument creating or modifying the charge |
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Date of
instrument Creating the charge |
26.06.2007 |
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Amount secured by
the charge |
Rs. 70.486
Millions |
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Short particulars
of the property charged |
All tangible
movable stock of raw materials, stock in process, finished goods e.g. bearing
rings wheresoever situated and transit, book debts , furniture and fixture
plant and machinery consist of power press, electric panel board etc. |
|
Date of latest
modification prior to the present modification |
14.07.2006 |
|
Particulars of the
present modification |
Total financial
facilities already granted to the company of Rs. 49 Millions now enhanced to
Rs. 70.486 Millions |
Profile
Subject as a pioneers in engineering industries with
strong foundation in the manufacturing of quality forged bearing races.
Their plant is located at Veraval - Shapar industrial area 16 Km
from
Subject has technically strong management team
having rich and diverse experience in the fabrication and erection process in
cement and engineering field leads them.
Subject have qualified professional and experience
personel in all their department, efficient management, skill team,
state-of-art infrastructure and standard process are the real strength of sif
for meeting complete customer satisfaction.
Subject continuously research to
improve their manufacturing process, engineering and quality systems,
initiatives such as ISO 9001 : 2000 (New version) ensure that SIF's technical
capabilities remains at a leading edge. All their policies and processes are
designed to provide maximum quality consitstently and delivery needs.
Subject are powered by a
best of the breed infrastructure, we have an advanced metallurgical laboratory
equipped with technologies like imported electronic microscope, electric crack
detector machines, automated machines and programe controller.
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.39.47 |
|
|
1 |
Rs.80.59 |
|
Euro |
1 |
Rs.56.18 |
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 |
NO |
|
--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. |
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 |
|