MIRA
INFORM REPORT
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Report Date : |
21.09.2007 |
IDENTIFICATION DETAILS
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Name : |
ANDHRA FERRO ALLOYS LIMITED |
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Registered Office : |
501, Swagruhi Coral, Pandurangapuram, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.03.1986 |
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Com. Reg. No.: |
006292 |
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CIN No.: [Company
Identification No.] |
L27101AP1986SGC006292 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNA00104G |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacture of high Carbon Ferro Chrome, Manganese 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 257204 |
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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 reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
501, Swagruhi Coral, Pandurangapuram, |
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Tel. No.: |
91-891-2552998 / 2567625 |
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Mobile No.: |
91-9440662646 / 9849339113 (MR. Brajendra Khandelwal) 91-9810155695 ( Mr. Babu Khandelwal) 91-9393107922 (Mr. M.Dinkar Shetty) |
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Fax No.: |
91-891-2552998 |
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E-Mail : |
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Head Office : |
303, B.D.Chambers, 10/54, |
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Tel. No.: |
91-011-23527544 / 23527545 / 27538714 |
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Fax No.: |
91-011-23680431,23557606 |
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Unit 1 : |
Garbham, Merakamudidam Mandal,
Vizianagaram District - Andhra Pradesh |
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Tel. No.: |
91-8952-288344,288408 |
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Unit 2 : |
Srinivasanagar, Chinthalapalem
(PO), Pendurthi (SO), Via |
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Tel. No.: |
91-8966-273311,273289 |
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Fax No.: |
91-8966-273344 |
DIRECTORS
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Name : |
Mr. Brajendra Khandelwal |
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Designation : |
Director |
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Address : |
Flat No. 401, Swagruha Coral, |
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Date of Birth/Age : |
05.10.1984 |
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Date of Appointment : |
01.04.1997 |
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Name : |
Mr. Babu Khandelwal |
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Designation : |
Director |
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Address : |
C – 18, Phase – 2, Ashok Vihar, |
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Date of Birth/Age : |
10.03.1962 |
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Date of Appointment : |
01.04.1997 |
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Name : |
Mrs. Manjubala Khandelwal |
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Designation : |
Director |
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Address : |
Flat No. 401, Swagruha Coral, |
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Date of Birth/Age : |
29.10.1954 |
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Date of Appointment : |
22.12.1999 |
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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. Ramji Lal |
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4000 |
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Mr. Ramswarup |
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4000 |
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Mr. Dinesh |
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4000 |
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Mr. Rakesh |
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4000 |
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Mr. Surender |
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4000 |
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Mr. Prem Narayan |
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4000 |
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Mr. Babu Lal |
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4000 |
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Mr. Ratanlal Jain |
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4200 |
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Mr. Hra Lal |
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4000 |
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Mr. Vinod |
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4000 |
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Mr. Mahesh Kumar |
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4000 |
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Lucent Software Synthetics Limited |
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25000 |
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Wrack Electronics Private Limited |
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25000 |
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Knop Trading Company Private limited |
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30000 |
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J K M Securities Private Limited |
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20000 |
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Mr. Sangeeta Khandelwal |
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80200 |
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Category |
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Percentage of Holding |
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Directors or relatives of directors |
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72.00 |
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Other top fifty shareholders |
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28.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of high Carbon Ferro Chrome, Manganese etc. |
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Products : |
» Ferro Alloys |
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GENERAL INFORMATION
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Bankers : |
Citi Corp Finance ( |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Murthy Associates Chartered Accountants |
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Address : |
Flat No. 102, Lakshmi Apartments, Facor Layout, Waltair Upland, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs.10/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1853690 |
Equity Shares |
Rs.10/- each |
Rs.18.536
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 |
18.538 |
8.538 |
8.538 |
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2] Share Application Money |
0.098 |
0.098 |
0.098 |
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3] Reserves & Surplus |
45.665 |
33.816 |
20.451 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
64.301 |
42.452 |
29.087 |
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LOAN FUNDS |
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1] Secured Loans |
140.440 |
31.209 |
16.833 |
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2] Unsecured Loans |
64.032 |
60.899 |
49.960 |
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TOTAL BORROWING |
204.472 |
92.108 |
66.793 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
268.773 |
134.558 |
95.880 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
114.060 |
101.035 |
47.110 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.048 |
0.048 |
0.048 |
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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 |
54.963
|
29.320 |
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Sundry Debtors |
66.925
|
18.609 |
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Cash & Bank Balances |
15.967
|
12.978 |
79.963 |
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Other Current Assets |
2.576
|
0.235 |
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Loans & Advances |
52.708
|
34.526 |
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Total
Current Assets |
193.139
|
95.668 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
35.202
|
53.967 |
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Provisions |
3.272
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8.225 |
31.241 |
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Total
Current Liabilities |
38.474
|
62.192 |
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Net Current Assets |
154.665
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33.476 |
48.722 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
268.773 |
134.558 |
95.880 |
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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 |
611.529 |
552.908 |
340.842 |
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Other Income |
19.272 |
1.672 |
1.202 |
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Total Income |
630.801 |
554.580 |
342.044 |
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Profit/(Loss) Before Tax |
12.496 |
21.590 |
4.436 |
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Provision for Taxation |
2.739 |
5.600 |
1.186 |
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Profit/(Loss) After Tax |
9.757 |
15.990 |
3.250 |
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Earnings in Foreign Currency : |
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Export Earnings |
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4.624 |
2.593 |
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Expenditures : |
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Manufacturing Expenses |
NA |
NA |
174.485 |
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Raw Material Consumed |
236.553 |
199.776 |
118.643 |
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Purchases made for re-sale |
34.754 |
87.259 |
36.234 |
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Consumption of stores and spares parts |
7.035 |
8.246 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.583 |
4.170 |
0.0000 |
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Salaries, Wages, Bonus, etc. |
5.136 |
4.956 |
5.984 |
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Managerial Remuneration |
3.600 |
3.600 |
0.000 |
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Payment to Auditors |
0.102 |
0.091 |
0.000 |
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Interest |
5.045 |
0.568 |
1.100 |
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Insurance Expenses |
1.374 |
1.053 |
0.000 |
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Power & Fuel |
229.327 |
122.283 |
0.000 |
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Depreciation & Amortization |
7.930 |
4.026 |
2.940 |
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Other Expenditure |
86.861 |
96.955 |
0.000 |
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Total Expenditure |
618.300 |
532.983 |
339.386 |
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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 |
(%) |
1.98
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2.89 |
0.95 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.04
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3.90 |
1.30 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.06
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10.95 |
3.49 |
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Return on Investment (ROI) (PBT/Networth) |
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0.19
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0.50 |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.59
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1.46 |
1.07 |
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Current Ratio (Current Asset/Current Liability) |
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5.01
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1.53 |
2.55 |
LOCAL AGENCY FURTHER INFORMATION
Form 8:
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Name of the company |
ANDHRA FERRO
ALLOYS LIMITED |
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Presented
By |
Mr. Brajendra Khandelwal |
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1) Date and description of instrument creating the change |
Loan cum
hypothecation agreement dated 3.11.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.0.833 million |
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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 |
First exclusive
charge on the assets mentioned in the schedule 3 in loan cum hypothecation
agreement dated |
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4) Gist of the terms and conditions and extent and operation of the charge. |
As per the terms
and condition mentioned in the loans cum hypothecation dt. 3.11.2004 |
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5) Name and Address and description of the person entitled to the charge. |
Citi Corp Finance
( |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
As Per Web Details
Company Profile:
The
ISO 9002 company was commissioned under the scheme of Small Scale Sector. It has
the rare distinction of being the first company among all those companies
commissioned under Small Scale scheme to export products to developed countries
like
Awards
The company in its two decades of operation has been bestowed with hosts of
awards. Some of the most prestigious awards that stands out from the rest are
Regional export Award and Export Excellence Award (Southern Region), which were
presented to the company in the year 1998 and 1999 respectively.
Products
The company has made a mark for itself in the domestic and international market
with its quality products. Apart from the products, the company is known for
its timely delivery of products in a specially made double gunny bags, which
reduces the impact of transportation.
Quality
What puts the company consistent pedestal from the rest of companies is its
consistent delivery of superior quality, complete customer satisfaction and
timely delivery of products. It is ensured that the products are made from best
raw materials so that the final products come out with an unmatched quality. Andhra
Ferro Alloys Limited has a team of qualified quality inspectors who ensures
that only those products reach the market that meets the company's quality
standards.
Infrastructure
The company has a well equipped state-of-the-art laboratory where a team of
experienced metallurgist works round the clock to improve the products further.
Clients
The company enjoys the trust and confidence of a vast number of clients. The
clients of the company are spread throughout the
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.39.87 |
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|
1 |
Rs.80.11 |
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Euro |
1 |
Rs.56.19 |
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 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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 |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
48 |
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 |
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