MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
AGRASEN ENGINEERING INDUSTRIES LIMITED |
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Registered Office : |
G -516/518, Road No. 9A, VKI Area, Jaipur 302 013, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
17.08.1983 |
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Com. Reg. No.: |
17-002784 |
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CIN No.: [Company
Identification No.] |
U29294RJ1983PLC002784 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JPRA00211B / JPRA02428G |
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PAN No.: [Permanent
Account No.] |
AABCA3401D |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer of
Forged and Turned Components for Automotive Industry |
RATING &
COMMENTS
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MIRAs 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 500000 |
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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 meetings its
normal commitments timeously. Trade relations are fair. Business is active. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
G -516/518, Road No. 9A, Vishwakarma
Industrial Area, Jaipur 302 013, Rajasthan, India |
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Tel. No.: |
91-141-2331716 |
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Fax No.: |
91-141-2332563 |
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E-Mail : |
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Website : |
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Factory : |
F 198 to 199, Road, No. 9F, Vishwakarma Industrial Area, Jaipur -302
013, Rajasthan, India |
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Tel. No.: |
91-141-2330614 |
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Fax No.: |
91-141-2332563 |
DIRECTORS
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Name : |
Mr. Vinod Agarwal |
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Designation : |
Director |
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Address : |
A -26 D, Bhartiya Path, Kanti Chandra Road, Bani Park, Jaipur 302
001, Rajasthan, India |
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Date of Birth/Age : |
20.01.1954 |
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Date of Appointment : |
17.08.1983 |
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Name : |
Mr. Namit Agarwal |
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Designation : |
Director |
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Address : |
A -26 D, Bhartiya Path, Kanti Chandra Road, Bani Park, Jaipur 302
001, Rajasthan, India |
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Date of Birth/Age : |
09.12.1978 |
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Date of Appointment : |
01.01.1997 |
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Name : |
Mr. Vineet Agarwal |
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Designation : |
Director |
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Address : |
A -26 D, Bhartiya Path, Kanti Chandra Road, Bani Park, Jaipur 302
001, Rajasthan, India |
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Date of Birth/Age : |
22.06.1982 |
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Date of Appointment : |
06.09.2004 |
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Name : |
Mr. Dilip Agarwal |
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Designation : |
Director |
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Address : |
7/46 Vidhyadhar Nagar Jaipur
302 023, Rajasthan, India |
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Date of Birth/Age : |
24.03.1964 |
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Date of Appointment : |
17.08.1983 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (As on 31.03.2007) :- |
No. of Shares |
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Mr. Vinod Agarwal |
2218800 |
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Mrs. Saroj Agarwal |
184400 |
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Mr. Vineet Agarwal |
240000 |
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Mr. Namit Agarwal |
259400 |
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Mr. Vinod Agarwal HUF |
80000 |
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Total
|
2982600 |
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Equity Shares Break up (Percentage of Total Equity) (As on 31.03.2007) |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
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List of Bonus Share Allottes( As on 20.11.2007) :- |
No. of Shares |
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Mr. Vinod Agarwal S/O Late Gajanand
Agarwal |
1109400 |
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Mrs. Saroj Agarwal W/O Mr. Vinod Agarwal |
92200 |
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Mr. Vineet Agarwal S/O Mr. Vinod Agarwal |
120000 |
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Mr. Namit Agarwal S/O Vinod Agarwal |
129700 |
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Mr. Vinod Agarwal HUF |
40000 |
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Total |
1491300 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Forged and Turned Components for Automotive Industry |
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Products : |
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Generic Names of Principal Products / Services : |
· Job Charges · Bearing Components |
GENERAL
INFORMATION
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Customers : |
·
Mico Bosch ·
SKF India
Limited. ·
Fag Bearings
India Limited. ·
NRB Bearings
Limited. ·
Tata Bearings
(A Division Of Tata Steel) |
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Bankers : |
State Bank of Bikaner and Jaipur Address: Industrial Finance Branch, Tambi Towers, S C Road, Jaipur-302
001, Rajasthan, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name 1: |
K Khemka and Company Chartered Accountants |
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Address : |
U-2/C-4, Krishna Apartment, Hathi Babu Marg, Bani Park, Jaipur 302
016, Rajasthan, India |
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Name 2: |
Prahlad Agarwal and Associates Chartered Accountants |
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Address : |
O-6, Second Floor, Amber Towers, S C Road, Jaipur 302 001,
Rajasthan, India |
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Name 3: |
Vijay Dinesh and Company Chartered Accountants |
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Address : |
Rajasthan, India |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2982600 |
Equity Shares |
Rs. 10/-
each |
Rs.29.826
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 |
29.826 |
29.826 |
29.827 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
70.065 |
58.022 |
62.874 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
99.891 |
87.848 |
92.701 |
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LOAN FUNDS |
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1] Secured Loans |
65.205 |
79.838 |
0.000 |
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2] Unsecured Loans |
56.000 |
58.000 |
56.000 |
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TOTAL BORROWING |
121.205 |
137.838 |
56.000 |
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DEFERRED TAX LIABILITIES |
15.706 |
11.252 |
4.419 |
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TOTAL |
236.802 |
236.938 |
153.120 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
169.080 |
166.968 |
39.368 |
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Capital work-in-progress |
0.000 |
0.631 |
2.092 |
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INVESTMENT |
0.005 |
15.013 |
0.405 |
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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 |
15.267
|
11.219 |
1.773 |
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Sundry Debtors |
34.475
|
11.938 |
7.732 |
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Cash & Bank Balances |
0.373
|
4.963 |
44.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
21.951
|
30.691 |
71.415 |
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Total
Current Assets |
72.066
|
58.811 |
125.420 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
2.213
|
3.946 |
13.309 |
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Provisions |
2.136
|
0.539 |
0.856 |
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Total
Current Liabilities |
4.349
|
4.485 |
14.165 |
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Net Current Assets |
67.717
|
54.326 |
111.255 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
236.802 |
236.938 |
153.120 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
184.418 |
61.498 |
41.478 |
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Other Income |
2.774 |
2.971 |
0.879 |
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Total Income |
187.192 |
64.469 |
42.357 |
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Profit/(Loss) Before Tax |
18.755 |
2.156 |
2.524 |
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Provision for Taxation |
6.712 |
7.009 |
0.966 |
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Profit/(Loss) After Tax |
12.043 |
4.853 |
1.558 |
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Expenditures : |
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Raw Material Consumed |
58.125 |
10.590 |
2.341 |
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Consumption of stores and spares parts |
6.734 |
6.574 |
1.717 |
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Increase/(Decrease) in Finished Goods |
0.386 |
[0.759] |
0.002 |
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Salaries, Wages, Bonus, etc. |
7.892 |
2.739 |
1.693 |
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Managerial Remuneration |
3.090 |
0.000 |
0.000 |
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Payment to Auditors |
0.024 |
0.015 |
0.015 |
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Interest |
5.764 |
2.067 |
0.000 |
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Insurance Expenses |
0.156 |
0.130 |
0.003 |
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Power & Fuel |
13.769 |
5.003 |
1.181 |
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Depreciation & Amortization |
8.263 |
4.099 |
1.009 |
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Other Expenditure |
64.234 |
31.855 |
31.872 |
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Total Expenditure |
168.437 |
62.313 |
39.833 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
6.43
|
7.53 |
3.68 |
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Net Profit Margin (PBT/Sales) |
(%) |
10.16
|
3.51 |
6.09 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.78
|
0.89 |
1.51 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.02 |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.26
|
1.62 |
0.75 |
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Current Ratio (Current Asset/Current Liability) |
|
16.57
|
13.11 |
8.85 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Corporate identity
number of the company |
U29294RJ1983PLC002784 |
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Name of the
company |
AGRASEN
ENGINEERING INDUSTRIES LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
G -516/518, Road No. 9A, Vishwakarma
Industrial Area, Jaipur 302 013, Rajasthan, India |
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This form is for |
Creation of
charge |
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Type of charge |
· Immovable property · Any interest in immovable property · Book Debts · Movable property |
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Particular of
charge holder |
State Bank of
Bikaner and Jaipur Address:
Industrial Finance Branch, Tambi Tower, S Road, Jaipur 302 001, Rajasthan, India E-mail: sbbj10781@sbbj.co.in |
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Nature of
instrument creating charge |
· Supplemental agreement of hypothecation of goods and assets for increase in the overall limit · Supplemental agreement of loan for increase in the overall limit · Letter of confirmation for extension of mortgage of title deeds · Letter regarding grant of individuals limits within overall limits · Board resolution. |
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Date of
instrument Creating the charge |
29.03.2008 |
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Amount secured by
the charge |
Rs. 83.500
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : Term Loan
interest to be charge @1.75% below
BPLR presently 11.25% p.a with monthly
rests subject to reset after two years the change in benchmark rate will be effected on pricing of
terms loans from the date the benchmark is revised. Terms of Repayment : Repayable in 24
quarterly installments, first 20 quarterly of Rs. 3.475 millions and 4
quarterly installments of Rs. 3.500 millions. Margin : 34.56% Extent and Operation of the charge : The charge
operates on first charge basis. Others : A new Term Loan
of Rs. 83.500 millions sanctioned in addition to cash credit limit of Rs.
40.000 millions, outstanding balance of old term loan Rs. 31.000 millions.
Total Exposure Rs. 154.500 millions. |
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Short Particulars
of the present modification |
First charge by
way of hypothecation of movable assets and new plant of Aluminium pressure
die casting. Hypothecation of
first charge basis raw materials, stock in process, finished goods, stores,
spares including in transit and book debts and entire other current and fixed
assets present and future. Equitable
mortgage of land and building at G 516 to 518, Road No. 9 A, VKIA and F
198-199 Road No. 9 F VKIA Jaipur as security on first charge basis. |
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Name of the company |
AGRASEN ENGINEERING INDUSTRIES LIMITED |
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Presented By |
Director, Agrasen Engineering Industries
Limited and State Bank of Bikaner and Jaipur Jointly |
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1) Date and description of instrument creating the change |
09.04.2005 · Agreement of hypothecation of goods and assets · Agreement of pledge of goods and assets · Letter regarding the grant of individuals · Limit within the overall limit. · Memorandum of equitable mortgage. (All the
agreement constitutes a single charge.) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 40.000
millions
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation on
first charge basis all present and future goods, raw materials , work in
progress, finished goods, book debts and all other movable assets of the company, including document of
title to the goods, outstanding monies, receivables bills, invoices,
documents, contracts, guarantee, engagements, securities, investment, rights
, present and future plant and machinery belonging to or in possession of the
company. Equitable
mortgage created on all land and building plant and machinery situated at i) G 516 -518,
Road No. 9A, VKI Area, Jaipur Ii) F-198 -199,
Road, No. 9 A, VKI Area Jaipur iii) 7/82,
Vidhyadhar Nagar, Jaipur as security on first charge basis. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest to be
charge @ 0.75% below BPLR at monthly rests presently 10% subject to change from time to time Margin Raw
material 25%, stock in process 30%, finished goods 30%, book debts 50% Repayable on
Demand |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
Bikaner and Jaipur Industrial
Finance Branch, S C Road, Jaipur 302 001, Rajasthan, India |
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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 |
COMPANY PROFILE:-
Subject is in the
business of manufacturing forged and turned components for automotive industry.
By integrating itself with the quality principles, it caters to the need and requirements
of its customers with latest manufacturing facilities and testing equipments.
With an experience of over 35 years, the group is credited with developing
bearings race industry in the state of Rajasthan - India.
With an installed capacity of 100 million Bearing rings and Automobile
Components per annum, their manufacturing facilities are among the best in the
industry to provide their customers with world class products.
Subject has installed World class Forging Plant from HATEBUR, Switzerland..
HATEBUR machines are considered as Worlds Best Machines in forming technology.
Almost all automobile manufacturers around the world use HATEBUR, be it Daimler
Chrysler, Nissan, Toyota, General Motors, Citrogen, Volkswagen, Opel, Fiat,
Isuzu, etc.
Credentials :-
They are committed to
engineer, manufacture and deliver products and services on time fulfilling
customers requirements. They have to their credit :
Mr. Vinod Agarwal, M.D
receiving FAG Certificate merit for outstanding services from Shri J.R.Patel, Chairman, FAG Bearings
India Limited
Continuously 0.00 PPM quality rating
by their customers.
Constantly 100% delivery rating by
their customers.
Awarded Prestigious
Supplier Award in the year 2005 from MICO BOSCH.
Awarded Certificate of Merit
for outstanding services may times from FAG
Introduction of Trepanning
operation for small diameter bars in 1988 resulting in savings in raw material
and processing cost upto 30%
For the first time in bearing races
industry, Drilling and Part-off operations were shifted from conventional
lathes to single spindle automats in 1978 resulting in cent percent rise in
productivity
Manufacturing
Facilities :-
Their manufacturing facility, spread in an area of 50000 sq. ft., is
equipped with latest manufacturing machines, equipments and facilities to cater
to the requirements of their customers and to ensure that they become
"Partners in their Quest for Quality"
Their machine shop include machines like : -
Hatebur Hotformer - AMP 30 S
Annealing Furnaces
Sophisticated Tool Room
Crack Detection Machine
Microstructure Testing Lab
Automatic Turning Machines
CNC Machines and VMC Machines
Kirloskar Turn Master And 1550 Lathes
Bar Peeling Machines
Single Spindle Automats
Auto Gauging System for critical parameters
Tool Cutter Grinders
Duplex Grinding Machines
Centerless Grinding Machines
In an effort to provide their customers with world class products they
keep upgrading their selves with the change in technology and process
requirements. By integrating the latest technology with conventional skills
they are able to achieve desired standards at minimum possible cost.
Subject has developed
core-competency in manufacturing bearing races for :
Products: -
Ball Bearings
Needle Roller Bearings
Taper Roller Bearings
Cylindrical Roller Bearings
Double Row Deep Groove Ball
Bearings
Angular Contact Bearings
Thrust Ball Bearings
Spherical Roller Bearings
In addition to the
above they also undertake forging operation for:
Square and Hex Nuts
Union Nuts
Collar Nuts
Castellated Nuts
Spiders /Tripods
Blanks for Gears, Flanges and
hubs
Bevel Pinion Blank
Screw Couplings
Bevel Gear
Gear Blank for drive Lugs
Engineering Components
Various gear parts for car and
Motor cycles
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 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 Intl
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 companys 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.43.34 |
|
UK Pound |
1 |
Rs.86.53 |
|
Euro |
1 |
Rs.68.54 |
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
This score serves as a reference to assess SCs 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 |
|