MIRA
INFORM REPORT
|
Report Date : |
25.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NEW TECH FORGE AND FOUNDRY LIMITED |
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Registered Office : |
“New Tech Zone” Behind Kishan Petrol Pump, 8/B, National Highway, Kangashiyali,
Rajkot – 360002, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
14.10.2002 |
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Com. Reg. No.: |
04-41410 |
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CIN No.: [Company
Identification No.] |
U27104GJ2002PLC041410 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RKTN00696D |
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PAN No.: [Permanent
Account No.] |
AABCN5826B |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer of Iron and Steel Products |
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 1800000 |
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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 fine track.
Directors are reported as experienced and respectable businessmen. Trade relations
are reported as 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 / Factory : |
“New Tech Zone” Behind Kishan Petrol Pump, 8/B, National Highway,
Kangashiyali, Rajkot – 360002, Gujarat, India |
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Tel. No.: |
91-281-2782903 / 4 / 5 |
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Fax No.: |
91-281-2782901 / 2 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rasikbhai Ghusabhai Patel |
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Designation : |
Director |
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Address : |
“Shantiniketan”, 6, Parnakuti Society, nana Mava Road, Rajkot –
360005, Gujarat, India |
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Date of Birth/Age : |
01.05.1960 |
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Date of Appointment : |
14.10.2002 |
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Name : |
Mr. Mukeshbhai Khodabhai Patel |
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Designation : |
Director |
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Address : |
“Nijanand”, 3, Parnakuti Society, nana Mava Road, Rajkot – 360005,
Gujarat, India |
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Date of Birth/Age : |
29.05.1973 |
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Date of Appointment : |
14.10.2002 |
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Name : |
Mr. Gordhanbhai Ghusabhai Patel |
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Designation : |
Director |
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Address : |
“Nijanand”, 1-A, Parnakuti Society, nana Mava Road, Rajkot – 360005,
Gujarat, India |
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Date of Birth/Age : |
08.03.1958 |
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Date of Appointment : |
28.06.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
|
No. of Shares |
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Gordhanbhai G. Patel – HUF |
|
1209000 |
|
Micro Forge [India] Limited |
|
2299800 |
|
Avdesh Eng Company |
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1204200 |
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New Tech Fittings Private Limited |
|
487500 |
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Gujarat Narmada Flyash Company Limited |
|
166500 |
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Rasikbhai G. Patel – HUF |
|
269800 |
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Bina Bharat Padia |
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125000 |
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Dinesh Vighalji Mithani |
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100000 |
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Indumati Babulal |
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100000 |
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Jayantkumar Mohanlal Rikhav |
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150000 |
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Jignasha Prashid Lodhiya |
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125000 |
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Mahendra Mansukh Bavishi |
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102500 |
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Manojkumar Bhupatlal Kothari |
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200000 |
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Mayur Shasikant Damani |
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200000 |
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Vinesh Thakkar |
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300000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
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18.37 |
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Directors or relatives of directors |
|
81.63 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Iron and Steel Products |
GENERAL
INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. B. Thummar and Company Chartered Accountants |
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Address : |
Gurukurpa, Anant Nagar, Street No. 4, Kalawad Road, Rajkot – 360004,
Gujarat, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 160.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15,172,100 |
Equity Shares |
Rs. 10/- each |
Rs. 151.721
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
151.721 |
151.721 |
105.011 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
297.536 |
150.282 |
95.011 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
449.257 |
302.003 |
200.022 |
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LOAN FUNDS |
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1] Secured Loans |
1161.017 |
1089.308 |
221.266 |
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2] Unsecured Loans |
213.863 |
214.454 |
76.040 |
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TOTAL BORROWING |
1374.880 |
1303.762 |
297.306 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1824.137 |
1605.765 |
497.328 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1092.480 |
1131.677 |
469.810 |
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Capital work-in-progress |
35.693 |
43.657 |
0.000 |
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INVESTMENT |
0.010 |
0.010 |
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 |
689.868
|
356.079 |
0.000 |
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Sundry Debtors |
116.936
|
126.280 |
0.000 |
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Cash & Bank Balances |
19.704
|
6.319 |
35.616 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
130.549
|
72.219 |
0.371 |
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Total
Current Assets |
957.057
|
560.897 |
35.987 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
236.471
|
82.113 |
25.413 |
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Provisions |
25.561
|
49.407 |
0.000 |
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Total
Current Liabilities |
262.032
|
131.520 |
25.413 |
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Net Current Assets |
695.025
|
429.377 |
10.574 |
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MISCELLANEOUS EXPENSES |
0.929 |
1.045 |
16.944 |
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TOTAL |
1824.137 |
1605.765 |
497.328 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
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1773.558 |
481.133 |
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Other Income |
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1.122 |
0.024 |
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Total Income |
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1774.680 |
481.157 |
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Profit/(Loss) Before Tax |
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166.164 |
9.492 |
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Provision for Taxation |
|
18.910 |
0.931 |
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Profit/(Loss) After Tax |
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147.254 |
8.561 |
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Expenditures : |
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Raw Material Consumed |
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1185.208 |
291.016 |
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Consumption of stores and spares parts |
|
39.523 |
26.951 |
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Increase/(Decrease) in Finished Goods |
|
[429.851] |
[141.717] |
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Salaries, Wages, Bonus, etc. |
|
64.239 |
24.456 |
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Managerial Remuneration |
|
4.680 |
0.710 |
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Payment to Auditors |
|
0.200 |
0.200 |
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Interest |
|
141.998 |
60.787 |
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Insurance Expenses |
|
1.133 |
1.112 |
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Power & Fuel |
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450.906 |
141.467 |
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Depreciation & Amortization |
|
85.327 |
43.302 |
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Other Expenditure |
|
65.153 |
23.381 |
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Total Expenditure |
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1608.516 |
471.665 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
8.30
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1.78 |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
9.37
|
1.97 |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.11
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0.56 |
NA |
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Return on Investment (ROI) (PBT/Networth) |
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0.37
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0.03 |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
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3.64
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4.75 |
1.61 |
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Current Ratio (Current Asset/Current Liability) |
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3.65
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4.26 |
1.42 |
LOCAL AGENCY
FURTHER INFORMATION
The Registered office of the company has been
shifted from 208, Ajanta Commercial Complex, Gondal Road, Rajkot – 360002 to
the present address w.e.f. 25.10.2004
Bankers Charges
Report as per Registry
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Name of the company |
NEW TECH FORGE
AND FOUNDRY LIMITED |
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Presented By |
Rasikbhai G. Patel, Director |
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1) Date and description of instrument creating the change |
22.03.2005 Joint deed of
hypothecation Equitable
mortgage, and Common loan
agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
Total financial
assistance of Rs. 1360.000 Millions granted by State Bank of India and
Oriental Bank of Commerce and The Corporation Bank |
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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 |
Primary security For Term Loan of
Rs. 760.000 Millions 1st
Charge over the Fixed Asets of the Company situated at Survey No. 529/1,
529/2, 530, 531, 532/1, 532/2, 533, 534, 538/1 paikee land – 210841-00 sqm.
At Samakhiyali, Bhachau, Kutch, Gujarat For Fund based
and Non Fund Based W. C. facilities of Rs. 600 Millions Hypothecation of entire Current assets of the company
situated at factories, premises and godowns at village Samakhiyali, Bhachau,
Kutch, Gujarat Collateral Security For term loan of
Rs. 760.000 Millions Second charge on
current assets of the company at
factories, premises and godowns at village Samakhiyali, Bhachau,
Kutch, Gujarat For fund based
and non-fund based W.C. facilities of Rs. 600.000 Millions 2nd
Charge over the Fixed Asets of the Company situated at Survey No. 529/1,
529/2, 530, 531, 532/1, 532/2, 533, 534, 538/1 paikee land – 210841-00 sqm.
At Samakhiyali, Bhachau, Kutch, Gujarat |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Terms and
conditions as to repayment, margin, securities etc, shall be as specified in the
Common Loan agreement, Equitable mortgage and joint deed of hypothecation all
dated 22.03.2005 and sanctioned letter issued by the respective banks. |
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5) Name and Address and description of the person entitled to the charge. |
Following banks
are entitle for Pari –passu charge on the properties mentioned in colum No. 3
above in the proportion of their assistance
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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 |
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.39.43 |
|
UK Pound |
1 |
Rs.77.06 |
|
Euro |
1 |
Rs.57.65 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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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 |
9 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
7 |
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--LEVERAGE |
1~10 |
7 |
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--RESERVES |
1~10 |
7 |
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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 |
NO |
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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 |
|
64 |
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 |
|