MIRA
INFORM REPORT
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Report Date : |
04.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
INTERFIT INDIA LIMITED |
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Registered Office : |
112/3 D, Mathapur Road, Kaniyur Village, Palladam Taluk,
Karumathampatti, Coimbatore – 641 659, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.12.1981 |
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Com. Reg. No.: |
001129 |
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CIN No.: [Company
Identification No.] |
U02411TZ1981PLC001129 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBI03161E |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Grooved Pipe Fittings, Screwed Pipe Fittings
and Valves |
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 |
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Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 499432 |
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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. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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LOCATIONS
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Registered Office / Factory 1 : |
112/3 D, Mathapur Road, Kaniyur Village, Palladam Taluk,
Karumathampatti, Coimbatore – 641 659, Tamil Nadu, India |
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Tel. No.: |
91- 421- 3293000 |
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Fax No.: |
91-
421- 2333317 |
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E-Mail : |
info@interfitindia.com |
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Website : |
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Corporate Office : |
26, Damunagar, Coimbatore 641046, Tamil Nadu, India |
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Tel. No.: |
91-422-216759 |
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Factory 2: |
SF No. 630/1, Natham Road, Reddiapatti P O Dindigul – 624 003, India |
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Factory 3 : |
426/2, Thekalur, Avanashi Taluk, Coimbatore - 638654, India |
DIRECTORS
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Name : |
Mr. A V Palaniswamy |
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Designation : |
Managing Director |
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Qualification : |
Post Graduate in Engineering and Management |
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Experience : |
15 years in Pipe Fittings Industry |
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Name : |
Mr. D S Jagannathan |
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Designation : |
Director |
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Name : |
Mr. V Baskar Rao |
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Designation : |
Director |
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Name : |
Mr. K. Ramanujam |
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Designation : |
Director |
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Date of Birth/Age : |
42 years |
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Qualification : |
Chartered Accountant |
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Name : |
Mr. S. Srinivasan |
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Designation : |
Director |
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Name : |
Mr. S.K. Narayanan |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Grooved Pipe Fittings, Screwed Pipe Fittings
and Valves |
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Products : |
·
Grooved Pipe Fittings ·
Screwed Pipe Fittings ·
Valves Item Code:
73071101 Product Description : SG Iron Pipe fittings |
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Exports : |
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Countries : |
USA |
PRODUCTION STATUS (as on 31.03.2007):- [Foundry Division – Dindigul]
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Castings |
MT |
21800 |
4000 |
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SG Iron Pipe Fittings |
MT |
---- |
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3463.09 |
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Rubber Gaskets |
Nos |
---- |
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1640111 |
DTA Division:
Capacity as declared in Industrial Entrepreneurs Memorandum :-
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Item Code |
Proposed Item |
Quantity |
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73071101 |
S G Iron Cast Fittings |
4800.00 MT |
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73259909 |
Other Cast Articles Of Iron Steel |
600.00 MT |
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73071900 |
Stainless Steel Pipe Fittings |
300.00 MT |
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84813000 |
Check Valves |
5000 Nos |
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84848003 |
Ball Valves And Butterfly Valves |
300000 Nos |
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73071109 |
Forged Fittings Made Out Of Steel |
600.00 MT |
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73071109 |
Pipe Fittings Made Out Of Steel Tube / Bar |
600.00 MT |
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73071109 |
Welded Fittings Made Out Of Steel |
600.00 MT |
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73072100 |
Flanges |
600.00 MT |
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73071101 |
Grooved Products Made Of SG Iron |
4800.00 MT |
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73071900 |
Grooved Products Made Of Stainless Steel |
600.00 MT |
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73072100 |
Flanges |
1200.00 MT |
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73259909 |
Other Cast Articles Of Iron Or Steel |
1200.00 MT |
Note: Installed capacity of DTA Division is yet to
be ascertained
GENERAL
INFORMATION
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Bankers : |
Bank of India, Main Branch, Coimbatore, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. S. Krishaan & Company Chartered Accountants |
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Address : |
10 “C” Wing , 6th Floor, Parsh Manere, 602, Anna Sali,
Chennai – 600 006, Tamil Nadu, India |
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Associates/Subsidiaries : |
· Hatima India Private Limited, Coimbatore · Hatima Textiles Limited, Coimbatore · Interfit Techno Products Limited · Merit Industries Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3800000 |
Equity Shares |
Rs. 10/- each |
Rs. 38.000 millions |
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420000 |
Preference shares |
Rs. 100/- each |
Rs. 42.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3640128 |
Equity Shares |
Rs. 10/- each |
Rs.36.401
millions |
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19386 |
15% Non Cumulative Redeemable Preference shares |
Rs. 100/- each |
Rs. 1.938
millions |
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Share Application Money |
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Rs.12.078
millions |
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Total |
Rs.50.417 millions |
Notes:
Equity Shares of
Rs. 10/- each and Preference Shares of Rs, 100/- each have been allotted to the
erstwhile share holders of Haitima Textiles Ltd., at their option and in
accordance with the scheme of amalgamation
2. Non Cumulative Redeemable
Preference Shares are redeemable after expiry of three years but before the
expiry of seven years from 29.03.2002 being the date of allotment and the
earliest date of redemption being 29.03.2006
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] Share Capital |
50.417 |
50.417 |
38.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
74.441 |
59.142 |
60.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
124.858 |
109.559 |
98.800 |
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LOAN FUNDS |
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1] Secured Loans |
24.419 |
30.494 |
77.300 |
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2] Unsecured Loans |
0.066 |
1.496 |
0.500 |
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TOTAL BORROWING |
24.485 |
31.990 |
77.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
149.343 |
141.549 |
176.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
52.132 |
51.937 |
101.600 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
47.451 |
47.451 |
47.400 |
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DEFERREX TAX ASSETS |
12.160 |
11.269 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
17.701
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17.330 |
29.300 |
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Sundry Debtors |
19.236
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6.442 |
6.300 |
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Cash & Bank Balances |
1.499
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1.705 |
2.900 |
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Other Current Assets |
70.985
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67.185 |
0.000 |
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Loans & Advances |
12.172
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4.119 |
108.300 |
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Total
Current Assets |
121.593
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96.781 |
146.800 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
70.997
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63.257 |
116.300 |
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Provisions |
13.333
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3.793 |
4.900 |
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Total
Current Liabilities |
84.330
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67.050 |
121.200 |
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Net Current Assets |
37.263
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29.731 |
25.600 |
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MISCELLANEOUS EXPENSES |
0.337 |
1.161 |
2.000 |
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TOTAL |
149.343 |
141.549 |
176.600 |
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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 |
297.296 |
252.795 |
273.700 |
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Other Income |
0.000 |
0.000 |
15.500 |
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Total Income |
297.296 |
252.795 |
289.200 |
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Profit/(Loss) Before Tax |
24.052 |
6.468 |
[7.800] |
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Provision for Taxation |
2.025 |
[1.570] |
1.500 |
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Profit/(Loss) After Tax |
22.027 |
8.038 |
[9.300] |
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Export Value |
278.693 |
230.229 |
NA |
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Import Value |
40.413 |
53.055 |
NA |
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Expenditures : |
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Finished goods |
0.190 |
2.013 |
0.000 |
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Manufacturing Expenses |
9.292 |
7.539 |
0.000 |
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Administrative Expenses |
32.761 |
24.277 |
0.000 |
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Raw Material Consumed |
111.937 |
102.683 |
149.000 |
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Selling Expenses |
21.204 |
21.066 |
33.200 |
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Increase/(Decrease) in Finished Goods |
[2.487] |
8.933 |
1.500 |
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Salaries, Wages, Bonus, etc. |
17.336 |
20.754 |
19.200 |
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Excise Duty |
0.000 |
0.000 |
1.700 |
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Interest |
0.000 |
0.000 |
13.800 |
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Miscellaneous Expenses |
0.000 |
0.000 |
10.200 |
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Power & Fuel |
42.081 |
35.998 |
32.400 |
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Depreciation & Amortization |
7.951 |
9.225 |
0.000 |
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Other Expenditure |
23.042 |
19.301 |
23.900 |
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Total Expenditure |
263.307 |
251.789 |
284.900 |
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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 |
(%) |
7.40
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3.17 |
[3.22] |
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Net Profit Margin (PBT/Sales) |
(%) |
8.09
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2.55 |
[2.84] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.31
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3.11 |
[2.63] |
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Return on Investment (ROI) (PBT/Networth) |
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0.19
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0.06 |
[0.08] |
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Debt Equity Ratio (Total Liability/Networth) |
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0.87
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0.90 |
2.01 |
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Current Ratio (Current Asset/Current Liability) |
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1.44
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1.44 |
1.21 |
LOCAL AGENCY
FURTHER INFORMATION
Performance
and Prospects
During the year, the Company had continued to undertake
manufacture and export of SG Iron Pipe Fittings.
Financial
Performances
The Company's
gross income for the financial year ended 31st March 2007 was Rs.299.784
millions compared to Rs. 243.863 millions in the previous year. The Profit
before tax of the company was Rs.24.052 millions as against Rs.6.469 millions
in the previous year. The increase in Profit is not only due to sales and also
reduction in expenses. The company repaid most of the Term Loans in the
previous year. Depreciation was at Rs.7.951millions compared to Rs.9.225
millions in the previous year.
After providing
for taxation at Rs.2.914 millions and adjusting Deferred Tax Liability of
Rs.0.889 millions, the Company's net profit stood at Rs.22.027 millions.
The company
considered the relevant details and concluded that no absorption is needed in
terms of Accounting Standard (AS-28) on impairment of assets of the company. As
required the company transferred to Rs.1.939 millions to Capital Redemption
Reserve on account of redemption of Non-Cumulative Preference Share and
Rs.2.500 millions to the General Reserve. The net worth of the company stood at
Rs.124.500 millions as on 31.03.2007 as against Rs.108.400 millions in the
previous year.
BUSINESS REVIEW
The company could
achieve better results during the year by not only increasing production but
also by reducing costs. The company is taking all steps to maintain the growth
rate, though the company is facing competition from others in the field.
Further the impact of strengthening of the Indian Rupee visa- vis the US Dollar
is also being felt.
The company is
pursuing the growth opportunities in the newer markets and is also taking steps
to keep various costs under control while conforming to globally required
Quality Standards. Claims from some customers have been received by the company
and the reasons for such claims are investigated into. In order to retain the
position in the market, the company has decided to provide for the claims and
also demanding re-imbursements from the insurers. The company is strengthening
the Quality Assurance and Quality Control means to prevent even such claims
though these are considered not irregular in the industry.
OTHER INFORMATION:
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
a) The Bankers of
the Company have issued a Guarantee For Rs. Nil (Previous years Rs. Nil) in
favour of the Government of India for which the Company has provided a Cash
Margin for Rs.0.052 millions (Previous year Rs.0.052 millions) and the same has
been counter-guaranteed by the Company.
b) Letter of
Credit established by the Bankers and outstanding as on the date of Balance
Sheet is Rs.44.791 millions (Previous
year Rs. 100.358 millions)
c) Bills
discounted with Bankers and outstanding as on 31.03.2007 - Rs.389.323 millions
(Previous year Rs.27.267 millions).
d) The Company has
executed bonds for a value of Rs 594.410 millions (Previous year Rs. 240.710
millions) towards imports made, as the same is exempted from payment of duties
and levies. The Company has fulfilled the Export obligation relating to the
earlier year and the bonds are to be redeemed. The balance relating to this
year will be fulfilled in the ensuing year.
e) The demands made
by the Income tax department towards income tax and interest pending before the
appellate authorities for which the provision if any will be made as and when
the final orders are received
|
Assessment Year |
Amount (Rs. in
millions) |
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1994-1995 |
0.892 |
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1995-1996 |
1.699 |
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1996-1997 |
2.667 |
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2000-2001 |
0.431 |
An appeal filed
for the Assessment Year 1996-97 for Rs 26.678 millions has been partly decided
in favour of the Company and the Income tax Department has preferred an appeal
against this order which is pending before the Appellate Tribunal.
The IT department
demand for Rs 4.318 millions as Income Tax and interest under related sections
for the Assessment year 2000-2001 has been contested by the Company and is
pending before the appellate authorities.
f) The Company has
obtained stay order from the Labour Court of Coimbatore against the levy of ESI
payables raised by the ESI Corporation. However Rs 2.689 millions has been
remitted against the levy of ESI demand of Rs. 0.537 millions.
g) Claims against
the Company not acknowledged as debts for Rs.6.244 millions (Previous year Rs
6.244 millions)
Secured Loans and Security:
From A Bank
1) Term Loans are
secured by creation of equitable mortgage by deposit of title deeds relating to
Land and Buildings and Hypothecation of the block assets of the company.
2) The working
capital loans availed by the Company are secured by hypothecation of stocks and
book debts and further secured by a charge on the block assets of the Company.
3) The above loans
are guaranteed personally by the Managing Director, his wife, a Director and a
former Director of the Company.
Segment Report:-
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Region |
Asia |
USA |
Rest of the world |
Total Exports |
Local Sales |
Grand Total |
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Segment Revenue |
179.071 |
98.358 |
13.203 |
290.632 |
4.624 |
295.256 |
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Segment Results |
37.400 |
24.071 |
4.717 |
66.187 |
4.017 |
70.205 |
BUSINESS
Subject is a 100% Export Oriented Unit in collaboration with Aljen
Corporation, 7359, West Jubilee Drive, Glendale, Arizona, U.S.A. They are engaged in the manufacture of
Spheroidal Graphite Iron Fittings viz . Flexible Pipe Couplings, Valve
Fittings, Castings of all types and other components for exports.
It is one of the first 100% Export oriented units in the country to be
established outside Free Trade Zone.
The company has started 2 more units in the group namely, Kumar
Malleables Private Limited, Dindigul and Allied Piping Products Private
Limited, (supplies of castings to the company.)
The company’s collaborators for manufacturing of Flexible pipe
couplings, valves, fittings and castings of all types and components for export
have undertaken the production for export.
The Company operates from the caption owned factory, which is fitted
with modern machinery and equipment.
FIXED ASSETS:
· Land
· Building
· Plant and Machinery
· Electrical Fitting
· Furniture
· Technical Books
· Fire Extinguisher
· Vehicles
· Office Equipments
· Lab Equipments
· Computer
WEBSITE DETAIL:
The company a Government of India recognized Export
House and an ISO 9001 certified manufacturer, has been a quality producer of
economic piping products to the world for a quarter century. For 20 years,
Subject exported 100% of their products to the quality conscious U.S.A. and
JAPAN and recently the company has expanded their markets to Middle East,
Australia and other countries. The current thrust is on the domestic market to
cater to the growing needs of the infra-structure development projects in
India. The company is committed to innovative product design, state of the art
production engineering and continuous monitoring of quality.
The company manufactures products to exacting
recognized International Standards such as ANSI, ASTM, DIN, BS and JIS and many
products have been tested and approved for specific applications by several
International Laboratories and agencies.
The company products have been approved by International quality assurance agencies
like Underwriters Laboratories, U.S.A., Underwriters Laboratories, Canada,
Factory Mutual, U.S.A. and Board of Standards, New York, U.S.A.
The company has a S.G. Iron foundry unit at Dindigul and the finishing division at
Kaniyur. Products offered are grooved and threaded ductile iron pipe fittings,
ductile iron body ball valves and butterfly valves and carbon steel weldable
outlets (branchlets).
The company also offers Screwed and Socket-weld Fittings, Couplings and Fittings
for grooved piping system, Ball Valves and Butterfly Valves in Carbon Steel,
Stainless Steel and Alloy Steel through its subsidiary company The company
Techno Products Limited and these are made from investment castings produced in
a world class mechanized foundry utilizing Lost Wax Process. Special purpose
machines and CNC machines assure precision machined components for end
products.
The companies’ Iron foundry unit has a capacity of 8000 Tons per year and the
Investment Casting foundry unit has a capacity of 750 Tons per year and the
capacity can be increased with minor additions.
The company Headquarters is at Kaniyur, 15 KM from Coimbatore airport.
Product:
Grooved Pipe Fittings
Screwed Pipe Fittings
Valves
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The
Courts, India Prisons Service, Interpol, etc.
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.39.93 |
|
UK Pound |
1 |
Rs.79.34 |
|
Euro |
1 |
Rs.62.55 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
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 |
|