MIRA
INFORM REPORT
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Report Date : |
19.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDIA FORGE AND DROP STAMPINGS LIMITED |
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Registered Office : |
5, Srinivasa Nagar, Kottivakkam, Chennai – 600096, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.06.1960 |
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Com. Reg. No.: |
004192 |
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CIN No.: [Company
Identification No.] |
L28910TN1960PLC004192 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer of Forge and Drop Stampings |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 550800 |
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Status : |
Good |
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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. |
LOCATIONS
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Registered Office : |
5, Srinivasa Nagar, Kottivakkam, Chennai – 600096, Tamilnadu, India |
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E-Mail : |
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Corporate Office/ Factory : |
54 Facit Avenue, Kandan Chavadi, Chennai – 600096, Tamilnadu, India |
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Tel. No.: |
91-44-24964980 |
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Fax No.: |
91-44-24960380 |
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E-Mail : |
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Website : |
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Manufacturing
Units : |
Located at: ·
Faridabad ·
Pune ·
Chennai |
DIRECTORS
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Name : |
Mr. Dipak Raj Sood |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. V. Dwaraknath Reddy |
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Designation : |
Director |
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Name : |
Mr. V. R. Ramakrishnan |
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Designation : |
Nominee Directors (LIC) |
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Name : |
Mr. G. Krishnan |
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Designation : |
Director |
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Name : |
Mrs. Rupa Sood |
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Designation : |
Director |
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Name : |
Mr. Amarnath Lulla |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. Subramanian |
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Designation : |
Company Secreatry |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Forge and Drop Stampings |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Kannan and Ram Chartered Accountant |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2978800 |
Equity Shares |
Rs.10/- each |
Rs.29.788 Millions |
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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 |
29.800 |
29.800 |
33.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
107.900 |
98.000 |
85.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
137.700 |
127.800 |
119.500 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
137.700 |
127.800 |
119.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
94.900 |
85.500 |
89.400 |
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Capital work-in-progress |
7.300 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
40.000
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41.500 |
58.400 |
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Sundry Debtors |
89.200
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66.700 |
41.700 |
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Cash & Bank Balances |
13.300
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2.200 |
4.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
46.300
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43.200 |
39.600 |
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Total
Current Assets |
188.800
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153.600 |
143.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
125.300
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88.800 |
101.800 |
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Provisions |
28.000
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22.500 |
12.000 |
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Total
Current Liabilities |
153.300
|
111.300 |
113.800 |
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Net Current Assets |
35.500
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42.300 |
30.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
137.700 |
127.800 |
119.500 |
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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 |
991.100 |
957.600 |
860.100 |
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Other Income |
1.300 |
3.000 |
3.900 |
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Stock Adjustments |
(3.900) |
3.900 |
3.300 |
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Total Income |
988.500 |
964.500 |
867.300 |
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Profit/(Loss) Before Tax |
13.400 |
26.600 |
17.300 |
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Provision for Taxation |
3.500 |
13.300 |
7.800 |
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Profit/(Loss) After Tax |
9.900 |
13.300 |
9.500 |
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Expenditures : |
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Raw Material Consumed |
609.300 |
611.800 |
575.400 |
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Excise Duty |
0.000 |
0.000 |
0.000 |
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Power & Fuel |
80.800 |
73.000 |
60.200 |
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Manufacturing Expenses |
189.300 |
159.000 |
132.200 |
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Employee Cost |
27.200 |
33.500 |
28.900 |
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Selling and Administrative Expenses |
35.500 |
29.100 |
25.900 |
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Miscellaneous Expenses |
10.900 |
13.000 |
9.700 |
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Interest and Financial Charges |
1.000 |
0.800 |
0.800 |
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Depreciation & Amortization |
21.100 |
17.700 |
16.900 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
975.100 |
937.900 |
850.000 |
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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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Debt-Equity Ratio |
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0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
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0.00 |
0.00 |
0.00 |
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Current Ratio |
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1.29 |
1.32 |
1.28 |
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TURNOVER
RATIOS |
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Fixed Assets |
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2.96 |
3.00 |
2.85 |
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Inventory |
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24.32 |
19.17 |
18.11 |
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Debtors |
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12.71 |
17.67 |
16.83 |
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Interest Cover Ratio |
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14.40 |
34.25 |
22.63 |
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Operating Profit Margin (%) |
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3.58 |
4.71 |
4.07 |
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Profit Before Interest And Tax Margin (%) |
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1.45 |
2.86 |
2.10 |
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Cash Profit Margin (%) |
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3.13 |
3.24 |
3.07 |
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Adjusted Net Profit Margin (%) |
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1.00 |
1.39 |
1.10 |
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Return On Capital Employed (%) |
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10.85 |
22.16 |
15.77 |
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Return On Net Worth (%) |
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7.46 |
10.76 |
8.28 |
LOCAL AGENCY
FURTHER INFORMATION
Performance:
The Company achieved a turnover of Rs.990.000 Millions
against Rs.960.000 Millions in the previous year. The increase was mainly due
to escalation in the cost of inputs. In the absence of corresponding increases
in selling prices, the margins stand eroded.
The Company's major customers viz. Tata Motors and Mahindra and Mahindra have
set up manufacturing facilities at Rudrapur in the state of Uttaranchal and
they have directed the company to shift part of their manufacturing activities
from Pune and Faridabad to Rudrapur. Although the customers have provided
marginal assistance, the Company had to incur huge expenditure to erect sheds
and structures and shift part of their plant to Rudrapur.
Outlook:
Despite efforts taken by the Company to bring down cost of manufacture,
continuous increase in the cost of raw material makes it’s impossible for the
company to register higher profit margin.
The Company expects a reasonable profit margin from its newly established unit
at Rudrapur due to concessions offered by the Government in taxes and duties at
Uttranchal.
Registered
Office:
The Company was having its registered office on a rental premises at 54, Facit
Avenue, Old Mahabalipuram Road, Chennai - 600096. The owner of the premises
requested the Company to vacate the premises and handover vacant position.
Accordingly the Company vacated the premises and shifted its registered office
to another place at No.5, Srinivasa Nagar, Kottivakkam, and Chennai
600096.
Manufacturing
Units:
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Faridabad |
Pune |
Chennai |
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Address: |
28, Sector -6 Faridabad – 121006, India |
T-76, MIDC, Bhosari Pune – 411026, India |
54 Facit Avenue, Kandan Chavadi, Chennai – 600096,
Tamilnadu, India |
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Phone: |
91-129-2212245/ 2212248 |
91-20-27122819/ 7122841 |
91-44-24964980 |
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Fax
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91-129-5065006 |
91-20-27122287 |
91-44-24960380 |
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Email
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Operating Head |
Mr. Sanjiv Kumar |
Mr. Ajay Joshi |
Mr. R. Deenadayal |
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Mobile No. |
91-9811213290 |
91-9822479475 |
91-9840075690 |
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Employees |
300 |
100 |
50 |
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Manufacturing Capabilities |
Sheet Metal and Fabricated Components Precision machined Components Automotive Sub Assemblies Press Forgings Plastic Injection Moulded Components |
Closed Die Forgings – up to 25 kg Rolled Rings upto 250 dia CNC Turned
Components |
Rolled Rings 100 to 1200 dia Hot Extrusion 70 kg Closed Die Forging up to 250 kg Open Die Forgings 500 kg. Precision Machining |
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Range of Products |
Car Rear Axle and Tractor Front Axles Front Wheel Hubs for Cars and Jeeps Cross Member Suspn Mounting Bkt. Side Impact Beams, Spindle |
Shifter Sleeves Bearing Races Transmission Gears and Shafts Yokes and Knuckles |
Spindle Axle Beam Ring Joint Gaskets
and Flanges Planetary and Starter Ring Gears Axle Shafts, Crown Wheels |
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Customers and Industries Services |
Maruti Udyog Car Escorts Tractor Fiat India Car Dana India Axles Exports Mining Others Plastics |
Tata Motors
LCV, MCV BAjaj Tempo 3-
Wheelers Indica
Transmission Mahindra
Jeep, UV’s Exports
Earth Moving Others
Engine |
Axles India Spindle BEML, Catepiller Dozers Bharat Heavy Elc. Oil Field Audco India Valves Defence Tank MIP Pipeline |
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Quality |
QS 9000 - Certified by |
QS 9000 - |
ISO 9001: 2000 - |
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System |
AIB- Vincottee International Limited, Belgium. |
Certified by |
Certified by |
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Certification: |
Upgrading to ISO/TS 16949 |
AQSR International, USA |
AQSR International, USA |
As per website
Business Overview:
Subject headquartered in madras, was founded as a Tier I
manufacturer of forgings to supply the automobile industry. Just as the
automobile industry has evolved, so have the Group and its product lines.
Originally producing die forging, the India Forge 's manufacturing capabilities
now encompass fully machined forgings, bearing races and automotive
subassemblies as the rear axle, front axle , and three-point linkages for the
tractor industry for which the Group is the largest supplier in India. The
Group's facilities are located in Chennai, Faridabad and Pune, which are fast
developing into key automotive manufacturing centers in India. The proximity of
the Group's manufacturing facilities to its customers has enabled the Group to
offer its customers just-in-time supply.
Subject was founded in 1958, by Late Shri. K. C. Sood, who
was a pioneer in the Indian forging industry. Subject has
since expanded its manufacturing operation to Chennai, Pune and
Faridabad, which are fast developing into automotive manufacturing centers
in India.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.39.96 |
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UK Pound |
1 |
Rs.78.66 |
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Euro |
1 |
Rs.63.31 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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PAID-UP CAPITAL |
1~10 |
7 |
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OPERATING SCALE |
1~10 |
7 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
8 |
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--CREDIT LINES |
1~10 |
7 |
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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 |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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67 |
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 |
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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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