MIRA
INFORM REPORT
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Report Date : |
08.09.2007 |
IDENTIFICATION DETAILS
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Name : |
FURNACE AND FOUNDRY EQUIPMENT COMPANY |
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Registered Office : |
Plot No. 1, Sub Survey No.1, Off |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1972 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMF00181G |
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PAN No.: [Permanent
Account No.] |
AAAFF0228M |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners. |
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Line of Business : |
Manufacturer of EOT, Grabing and Gantry Crane upto 500 Capacity and other Material Handling Equipment like Linches, Haulages
Skip Hoist, Transfer Trolley. |
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 268620 |
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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 concern having satisfactory
track records. Partners are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active.
Payments are usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 1, Sub Survey No.1, Off |
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Tel. No.: |
91-22-28571466 / 28572364 |
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Fax No.: |
91-22-28571793 |
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E-Mail : |
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Website : |
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Area : |
20,000 sq.fts |
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Factory : |
41-42 D, Sardar Udyog Nagar, |
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Tel. No.: |
91-265-2200343 / 2234241 |
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Fax No.: |
91-265 2208330 |
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E-Mail : |
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Area : |
30,000 sq.fts |
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Branch 1 : |
601, |
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Tel. No.: |
91-80-22274398 / 2243905 |
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91-9341967322 / 9845273670 |
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Fax No.: |
91-80-22274398 |
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E-Mail : |
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Website: |
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Location : |
Owned |
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Branch 2: |
MIGMA Apartment, 3rd Floor, Flat No. 31,22, Ashutosh
Chowdhury Avenue, Kolkata – 700 019, West Bengal. |
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Tel. No.: |
91-33-32435464 |
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Fax No.: |
91-33-24614842 |
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E-Mail : |
PARTNERS
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Name : |
Mr. Moti K Ramchdandani |
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Designation : |
Parner |
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Address : |
Satgur Simran, Flat No. 801/802, 8th Floor, 3rd |
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Date of Birth/Age : |
69 Years |
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Qualification : |
BE Mechanical / BE Electrical |
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Experience : |
47 Years |
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Name : |
Mr. M.S. Gurnani |
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Designation : |
Partner |
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Address : |
Band Stand Apartment, Co –Operative,
212 Byramji Jijibhoy Road, Band Stand, Bandra ( West), Mumbai – 400 050,
Maharashtra |
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Date of Birth/Age : |
85 Years |
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Qualification : |
BE Mechanical |
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Experience : |
60 Years |
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Name : |
Mr. Shyam M. Gurnani |
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Designation : |
Partner |
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Address : |
11 Le Cheteau Plot No. 90, |
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Date of Birth/Age : |
47 Years |
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Qualification : |
BE Mechanical |
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Experience : |
24 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of EOT, Grabing and Gantry Crane upto 500 Capacity and other Material Handling Equipment like Linches,
Haulages Skip Hoist, Transfer Trolley. |
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Products : |
All types of papers |
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Brand Names : |
“FAFECO” |
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Agencies Held : |
IMES Limited (Water Weight Division) |
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Exports : |
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Products : |
Water Weight Bags |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash |
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Purchasing : |
L/C, Cash, Credit ( 30 - 90 Days) |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
230 Persons ( 30 in Office and 200 in Factory) |
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Bankers : |
Canara Bank, Kalbadevi, Mumbai |
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Facilities: |
Cash Credit
Facility:
Current Year Cash Credit Facility from Canara Bank 2129.510 Cash Credit Facility from Indus Ind Bank
3.743 [ Secured against assets of the firm] Deferred Payments Credit: Deferred payments facility from ICICI Bank 0.857 [secured against vehicles financed]
Total
6.730 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. Gandhi and Associates Chartered Accountants |
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Address : |
2nd Floor, Mumbai – 400 001, |
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Tel. No.: |
91-22-2266-4510 / 2266-5559 |
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Fax No.: |
91-22-2266-3391 |
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E-Mail : |
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Associates/Subsidiaries : |
FAFECO Engineers Private Limited Activity: Erection / Commissioning and Servicing Cranes. |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Partners Capital Accounts |
67.155 |
28.933 |
6.054 |
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2] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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3] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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4] Land Revaluation Reserve |
0.000 |
0.000 |
21.711 |
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NETWORTH |
67.155 |
28.933 |
27.765 |
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LOAN FUNDS |
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1] Secured Loans |
6.730 |
27.323 |
13.568 |
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2] Unsecured Loans |
30.503 |
62.449 |
56.588 |
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TOTAL BORROWING |
37.233 |
89.772 |
70.156 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
104.388 |
118.705 |
97.921 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
25.398 |
26.089 |
24.133 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT ( Shares in Society) |
0.003 |
0.003 |
0.003 |
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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 |
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Sundry Debtors |
227.675
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160.111 |
135.447 |
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Cash & Bank Balances |
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Other Current Assets |
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Loans & Advances |
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Total
Current Assets |
227.675
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160.111 |
135.447 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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67.498 |
61.662 |
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Provisions |
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Total
Current Liabilities |
148.688
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67.498 |
61.662 |
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Net Current Assets |
78.987
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92.613 |
73.785 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
104.388 |
118.705 |
97.921 |
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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 |
275.862 |
195.696 |
104.786 |
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Other Income |
1.146 |
5.834 |
3.958 |
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Total Income |
277.008 |
201.530 |
108.744 |
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Profit/(Loss) Before Tax |
37.338 |
9.237 |
[8.962] |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
37.338 |
9.237 |
[8.962] |
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Export Sales |
5.921 |
0.000 |
13.984 |
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Expenditures : |
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Raw Material Consumed |
170.810 |
123.477 |
64.881 |
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Excise Duty Paid |
13.458 |
14.967 |
12.102 |
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Manufacturing and Erection Expenses |
25.830 |
25.193 |
19.274 |
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Personnel Expenses |
9.853 |
9.344 |
9.922 |
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Office and Administration Expenses |
7.920 |
6.532 |
5.552 |
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Selling and Distribution Expenses |
10.731 |
9.785 |
12.100 |
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Finance Expenses |
8.046 |
10.631 |
9.438 |
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Depreciation |
0.984 |
1.217 |
0.914 |
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Total Expenditure |
247.632 |
201.146 |
134.183 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
13.84
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4.58 |
[8.55] |
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Net Profit Margin (PBT/Sales) |
(%) |
13.53
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4.72 |
8.24 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
14.75
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4.96 |
[5.61] |
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Return on Investment (ROI) (PBT/Networth) |
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0.55
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0.31 |
0.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.76
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5.43 |
4.74 |
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Current Ratio (Current Asset/Current Liability) |
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1.53
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2.37 |
2.19 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS:
- Land
- Free – hold Land
- Building
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- Plant and
Machinery
- Plant and
Equipments
- Computer
Systems
- Computers
- Vehicles
- Motors Cars
- Furniture and
Fixtures
- Furnitures and
Fittings
- Intangible
Rights
- Non compete
Rights
FAFECO PROFILE
FAFECO GROUP, one of
ISO-90001:2000 and focused quality crane
manufacture has ensured steady growth over the years and the FAFECO GROUP’s two
manufacturing units, at Mumbai ND Vadodara an overall capacity of 150 cranes/ year and individual crane upto
500 T Capacity is presently possible.
High level of Quality Culture and Quality
Consciousness at each stage has ensured repeat orders persistently. Quality and
Technology standards are constantly upgraded to International Standards. Non
Standard special purpose Cranes, state – of – the art PLC Controls etc. are a
speciality.
Now FAFECO MATERIAL HANDLING SUPERMARKET
offers Innovative Material Handling products and accessories from around the
world, like Rubber Tyred Gantry Cranes upto 800 T from USA, Hydraulic Boom
Gantries upto 1800 T from USA, Tower Cranes upto 16 T from Spain, Special
Purpose Transporters upto 14000 T from Germany, Water Bags for proof load test
upto 1000 T from UK, shrouded Electric Power supply Conductors/ DSL system from
France etc.
In the late fifties Mr. M.K. Ramchandani,
Managing Director / Managing Partner, after Electrical and Mechanical
Engineering Graduation with distinction, entered the Crane Industry
specializing in Manufacture and Design.
Mr. M.S. Gurnani, Chairman / managing
Partner, a post Graduate Mechanical Engineer from Indian Institute of Science,
Mr. Shyam Gurnani, Director / Partner, a 1st
Class Mechanical Engineering Graduate of 1980, after extensive experience in
each area of crane design design, manufacture, erection, etc. has taken a
leading role in FAFECO’s Design Growth. He has spear-headed the
conceptualization, design and development of hi-technology cranes alongwith the
team of ingenous engineers at FAFECO. He has also contributed a lot towards
Modernization, Developments and Quality Standards of the company and is
presently on the Advisory Committee of IS : 3177-1999 for cranes.
Mr. M.K Ramchandani was appointed Technical
Adviser to GARLICK ENGINEERING for the first 4 years to impart crane
manufacturing technology. He Ahs been to Europe on crane knowledge exchange
meetings with well known manufacturers like Voest Alpine,
In recognition of his vast specialized
experience of over 40 years in Crane and Material Handling field Mr.
Ramchandani was invited to Chair the RESEARCH ORGANISATION, Sriharikota in
January 1985 which was attended by renowned Engineers / Consultants and
scientists from all over the country.
Mr. J MASAND, Director / Partner, a
Mechanical Engineering Graduate of 1960 from Banaras Hindu University with long
experience at MECON, Ranchi and sent to Europe to specialize, joined the team.
Mr. L T WANWARI , Director / partner
with experience in Purchase and Accounts with one of the Leading Crane
Manufacturing Company of
Mr. Ravi Malani, a Mechanical Engineer of
1971 was invited to join as Director in
1978 and heads Sales from his base at
Branches at
FAFECO has designed and Manufactured not
only High Capacity Steel Mill Duty, Power House ( Upto 200 T Capacity) and
other Cranes but also develop[ed Sophisticated and Hi – Technology cranes
including Four GIRDER 100 + 30 T EOT CRANES for Steel MILL LADLE Handling
APPLICATION incorporating Thyristor and
VVVF/PLC Controls, Electronic Weighing Systems, Radio Remote Control, Caliper
Brakes, etc.
FAFECO is backed by qualified and enormously
experienced work force, which has in depth knowledge of crane manufacture since
the Last three to four decades. Due to this strength too FAFECO enjoys the confidence of all Clients and Consultants
who place repeat orders without any
hesitation.
Due to FULL TIME active role of all Partners
/ Directors in the factories, not only excellent quality of Cranes but also
excellent relationship is maintained between employer and employee. There is no
external
With required infrastructure and high
technological back – up FAFECO is registered upto 250 Tonnes capacity cranes
with SAIL / RSP and also with all reputed Consultants and Organisations like
DASTURCO, MECON, TATA CONSULTING ENGINEERS, DCL, DESEIN, EIL, PDIL, EPIL,
TISCO, NTPC, BHEL, BARC, STEEL PLANTS, HAL, ISRO, ELECTRICITY BOARDS, etc.
FAFECO is well set
to lay milestones of success of vital importance in a Developing nation like
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.40.85 |
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1 |
Rs.82.54 |
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Euro |
1 |
Rs.55.76 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
YES |
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--AFFILIATION |
YES/NO |
YES |
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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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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
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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 |
|
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 |
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