MIRA
INFORM REPORT
|
Report Date : |
18.09.2007 |
IDENTIFICATION DETAILS
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Name : |
FRIENDS AUTO INDIA LIMITED |
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Registered Office : |
B-222, Layak Ram Complex, Badarpur, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.07.1997 |
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Com. Reg. No.: |
55-88642 |
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CIN No.: [Company
Identification No.] |
U34300DL1997PLC088642 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELF02410C / DELF02662C |
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PAN No.: [Permanent
Account No.] |
AAACF1926D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Spring Leaves, Rear Axle Shaft, Auto Cylinder Liner Sleeve,
Piston, Ring, etc. |
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 263600 |
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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 experienced and respectable businessmen. Trade relations are
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 : |
B-222, Layak Ram Complex, Badarpur, |
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E-Mail : |
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Website : |
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Administrative
Office/ Factory : |
38-A, Industrial Area, |
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Tel. No.: |
91-129-5029995, 5029996,
5029997, 5029998, 2232950 |
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Fax No.: |
91-129-2233329 |
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Email : |
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Sales Office : |
Ankit Industrial
Estate, Plot No.3, N.H. 8b, Gondal Road, |
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Tel. No.: |
91-281-2782032 |
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Mobile No.: |
91-94272 55211 |
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Fax No.: |
91-281-2782123 |
DIRECTORS
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Name : |
Mr. Amir Chand Mendiratta |
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Designation : |
Managing Director |
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Address : |
2B/ 97, NIT, |
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Date of Birth/Age : |
13.01.1937 |
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Date of Appointment : |
25.09.1971 |
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Name : |
Mr. Meher Singh Chawla |
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Designation : |
Director |
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Address : |
1-A/ 258, NIT, |
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Date of Birth/Age : |
05.11.1936 |
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Date of Appointment : |
25.09.1971 |
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Name : |
Mr. Dalip Kumar Mendiratta |
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Designation : |
Director |
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Address : |
H. No. 687, Sector 15, |
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Date of Birth/Age : |
21.12.1959 |
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Date of Appointment : |
30.09.1995 |
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Name : |
Mr. Amarjeet Singh Chawla |
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Designation : |
Director |
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Address : |
1-A/ 258, NIT, |
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Date of Birth/Age : |
16.10.1965 |
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Date of Appointment : |
30.09.1995 |
KEY EXECUTIVES
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Name : |
Sougat Sinha and Associates |
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Designation : |
Company Secretary |
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Address : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Meher Singh |
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1000 |
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Mr. Amir Chand |
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52110 |
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Mr. Dalip Kumar |
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19530 |
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Unik Spring (I) Private Limited |
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540 |
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Mr. Paramjeet Singh |
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37325 |
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Mr. Amarjeet Singh |
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31594 |
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Mr. Arvind Kumar |
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1800 |
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Mr. Sudhir Mendiratta |
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7698 |
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Mr. Jitendra Mendiratta |
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7776 |
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Mr. Sanjay Mendiratta |
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6659 |
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Mr. Amarjeet Singh Karta |
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27250 |
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Master Sarabjeet Singh |
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3319 |
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Master Harjot Singh |
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3318 |
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Names of Shareholders |
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Percentage of
Shareholding |
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Bodies Corporate |
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0.27 |
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Directors and Relative of Directors |
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99.73 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Spring Leaves, Rear Axle Shaft, Auto Cylinder Liner
Sleeve, Piston, Ring, etc. |
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Products : |
§
Spring Leaves §
Rear Axle Shaft §
Auto Cylinder Liner Sleeve §
Piston §
Ring |
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Exports : |
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Products : |
All products |
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Countries : |
USA, Africa, Asia,
Caribbean, East Europe, Middle East, North Europe, Oceania |
PRODUCTION STATUS
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Particulars |
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Unit |
Actual
Production |
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Spring Leaves |
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Nos. |
340165 |
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Spring Assembly |
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Nos. |
158755 |
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Axle |
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Nos. |
14927 |
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Piston |
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Nos. |
1508 |
GENERAL INFORMATION
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No. of Employees : |
-- |
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Bankers : |
+
Canara Bank, 8A, Nehru Ground, NIT, +
ICICI Bank Limited |
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Facilities : |
Secured Loan (Rs. In
millions)
Unsecured Loan (Rs. In
millions)
The Company enjoys Mortgage Loan facility of Rs. 25.000 millions from
Canara Bank. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Hitkari and Hitkari Chartered Accountant |
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Address : |
3/ 13-B, |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200000 |
Equity Shares |
Rs. 100/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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199919 |
Equity Shares |
Rs. 100/- each |
Rs. 19.992 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
19.992 |
19.992 |
19.992 |
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2] Reserves & Surplus |
45.898 |
29.316 |
16.665 |
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NETWORTH |
65.890 |
49.308 |
36.657 |
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LOAN FUNDS |
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1] Secured Loans |
42.698 |
22.520 |
2.246 |
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2] Unsecured Loans |
57.352 |
32.712 |
26.502 |
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TOTAL BORROWING |
100.050 |
55.232 |
28.748 |
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DEFERRED TAX LIABILITIES |
3.870 |
2.807 |
2.362 |
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TOTAL |
169.810 |
107.347 |
67.767 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
36.957 |
27.809 |
21.055 |
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Capital work-in-progress |
0.000 |
3.714 |
0.000 |
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INVESTMENT |
1.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
39.771
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24.444 |
20.823 |
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Sundry Debtors |
102.602
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85.995 |
66.488 |
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Cash & Bank Balances |
15.199
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33.618 |
11.215 |
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Loans & Advances |
110.199
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48.201 |
9.385 |
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Total
Current Assets |
267.771
|
192.258 |
107.911 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
118.437
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106.663 |
58.271 |
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Provisions |
17.481
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9.771 |
2.928 |
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Total
Current Liabilities |
135.918
|
116.434 |
61.199 |
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Net Current Assets |
131.853
|
75.824 |
46.712 |
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TOTAL |
169.810 |
107.347 |
67.767 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
809.983 |
905.476 |
1051.689 |
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Other Income |
0.519 |
0.483 |
0.000 |
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Total Income |
810.502 |
905.959 |
1051.689 |
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Profit/(Loss) Before Tax |
25.354 |
19.939 |
7.563 |
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Provision for Taxation |
0.000 |
0.000 |
2.094 |
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Profit/(Loss) After Tax |
25.354 |
19.939 |
5.489 |
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Total Expenditure |
785.148 |
886.020 |
527.690 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.13
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2.20 |
0.55 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.13
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2.20 |
0.72 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.29
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8.91 |
5.86 |
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Return on Investment (ROI) (PBT/Networth) |
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0.38
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0.40 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.63
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4.54 |
3.52 |
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Current Ratio (Current Asset/Current Liability) |
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1.97
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1.65 |
1.76 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
FRIENDS AUTO
INDIA LIMITED |
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Presented By |
FRIENDS AUTO
INDIA LIMITED |
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1) Date and description of instrument creating the change |
Supplement Common Hypothecation Agreement dated 20.01.2005 agreement
re: advances against book debts as prime security dated 20.01.2005 registered
on 01.02.2005 charge modified on 20.01.2005 and registered on 01.02.2005
charged modified on 22.07.2005 to enhance the limit from Rs. 20.000 millions
to Rs. 30.000 millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 20.000 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 |
All the book debts, outstandings, money receivables, claims and bills
which are now due owing or which may at any time hereafter during the
continuance of the security become due and owing to the borrower in the
course of the business by any person, firm, company as also the security are
hypothecated to the bank vide the Principal Common Hypothecation Agreement. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
First charge to secure ODBD limit of Rs. 20.000 millions interest
shall be paid at a minimum of 10.75% per month calculated on daily Debt
Balance Margin 40%. |
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5) Name and Address and description of the person entitled to the
charge. |
Canara Bank 8A, Nehru Ground, NIT, |
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6) Date and brief description
of instrument modifying the charge |
Letter evidencing deposit of title deeds alongwith dated 22.07.2005 |
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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.
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The enhanced ODBD limit of Rs. 30.000 millions stands collaterally
secured by way of equitable mortgage of the landed properties of he company
situated at Plot No. 38, Industrial Area, NIT, Faridabad, Haryana, India
measuring 260x68. Other terms and conditions remain the same. |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U34300DL1997PLC088642 |
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Name of the company |
FRIENDS AUTO INDIA LIMITED |
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Address |
B-222, Layak Ram Complex, Badarpur, |
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This Form is for |
Modification of charge |
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Type of Charges |
Hypothecation equitable mortgage or mortgage of property by depositing the title deeds. |
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Particular of the charge holder |
Canara Bank 8A, Nehru Ground, NIT, |
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Nature or description of the instrument creating charge |
-- |
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Date of the instrument creating charge |
-- |
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Amount Secure by the charge |
Rs. 20.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
-- |
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Description of the property charge whether it is a charge on |
Immovable properties, plant and machinery, furniture and fixtures, stock in trade, book debts |
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Modification charge Charge identification number of the charge to be modified |
90058865 |
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Date of instrument modifying the charge |
08.05.2006 |
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Particulars of the Property charged |
All the book debts, outstanding, money receivables, claims and bills which are now due owing or which may at any time hereafter during the continuance of the security become due and owing to the borrower in the course of the business by any person, firm, company as also the security are hypothecated to the bank vide the Principal Common Hypothecation Agreement. |
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Particular of the present modification |
The enhanced ODBD limit of Rs. 30.000 millions stands collaterally
secured by way of equitable mortgage of the landed properties of he company
situated at Plot No. 38, Industrial Area, NIT, Faridabad, Haryana, India
measuring 1900 sq. meters. |
The Company’s Fixed Assets of Important value
includes:
+
Land
+
Buildings
+
+
Dwelling Unit
+
Tubewell
+
Electric Installations
+
Plant and Machinery
+
Furniture and Fixtures
+
Laboratory Equipments
+
Fire Extinguishers
+
Office Equipments
+
Computers
+
Coolers and Air
Conditioners
+
Cars
+
Scooters
+
Cycles
As Per Web:
Profile
They are very Pleased to Introduce ourselves that they are one
of the Leading and Pioneer Manufacturer and Exporter of high quality Auto
Cylinder Liner Sleeve, Piston, Ring for light and Heavy commercial vehicle and
Tractor and other Diesel Engine with tremendous experience in the Business
since 1989. The ultra high Quality Production of the goods are being run under
the supervision of Qualified staff and this success can be attributed to
dedicated team of engineers, technicians, and skilled workers. Due to good
quality and workmanship, they become very famous in many states throughout
"A company's best
salesmen are its products and services."
Realising this, at UNIK our philosophy has been to ensure consistantly high
standards. The product is well accepted in the replacement market and we are
supplying the goods to various state transport undertakings, TATA MOTORS,
EICHER MOTORS as O.E up to the entire satisfaction.
Their magnificient obsession with quality has won for important international markets. An obsession that has enabled us to export to various asian, African, European Countries through direct and indirect sources.
The company is also expanding its market in europe and
Leaf Springs and Assemblys for:
HCV, MCV, LCV Trailors, Tractor Trollies, Propeller Shaft & its Components, Axel Shaft, U.J.cross, U bolts, HUB bolts etc. for HCV, MCV & LCV.
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.39.91 |
|
|
1 |
Rs.79.88 |
|
Euro |
1 |
Rs.55.88 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--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 |
|