MIRA
INFORM REPORT
|
Report Date : |
13.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
FORECH INDIA LIMITED |
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Registered Office : |
Hilton House, S-23, Green Park Extension,
New Delhi – 110 016 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.01.1983 |
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Com. Reg. No.: |
55-15047 |
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CIN No.: [Company
Identification No.] |
U51109DL1983PLC015047 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELF02468E |
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PAN No.: [Permanent
Account No.] |
AAACF0240N |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturing and Exporting of Compound Rubbers, Pulley Lagging,
V-Belts, Transmission Belts, Conveyor Belts and Rubber Sheets. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 297700 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Financial position is satisfactory. Payments are usually
correct and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. Management of the company remained non-cooperative during the current
investigation. |
LOCATIONS
|
Registered Office : |
Hilton House, S-23, Green Park Extension,
New Delhi – 110 016, India |
|
Tel. No.: |
91-11-26960868/26514019/26961275/26534243/26516327 |
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Fax No.: |
91-11-26862373/26534269/51755366 |
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E-Mail : |
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Website : |
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Head Office : |
17, 18 & 19, Sector 17 A, Chandigarh – 160 017, India |
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Factory 1 : |
Village Rai, G. T. Road, Tehsil & District Sonepat, Haryana, India
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Tel. No.: |
91-130-2366571/2366572/2366379] |
DIRECTORS
|
Name : |
Mr. Ravi Khanna |
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Designation : |
Managing Director |
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Address : |
B-1/40, Safdarjang Enclave, New Delhi –
110029, India |
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Date of Birth/Age : |
06.12.1955 |
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Date of Appointment : |
15.09.1995 |
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Name : |
Ms. Jyoti Khanna |
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Designation : |
Director |
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Date of Birth/Age : |
03.12.1957 |
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Date of Appointment : |
02.01.1995 |
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Name : |
Mr. Suversha Khanna |
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Designation : |
Director |
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Date of Birth/Age : |
16.06.1945 |
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Date of Appointment : |
18.06.1987 |
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Name : |
Mr. H C Garg |
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Designation : |
Director |
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Date of Birth/Age : |
21.10.1931 |
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Date of Appointment : |
18.06.1987 |
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Date of Ceasing : |
30.09.1999 |
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Name : |
Mr. Rahul Khanna |
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Designation : |
Director |
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Date of Appointment : |
03.03.1997 |
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Date of Ceasing : |
05.10.1998 |
KEY EXECUTIVES
|
Name : |
Mr. Arvind Bhatnagar |
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Designation : |
General
Manager
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Name : |
Mr. Sandeep Jawahar Gupta |
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Designation : |
Company Secretary |
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Address : |
1054, Apna Villa CGHS Limited, Plot No. 23, Sector – 10, New Delhi 110
075, India |
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Date of Birth/Age : |
28.02.1976 |
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Date of Appointment : |
11.09.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 26.08.2005
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Mr. Ravi Khanna |
800100 |
41.89 |
|
Mr. Suversha Khanna |
4984 |
0.26 |
|
Mrs. Sushila Devi Khanna |
33450 |
1.75 |
|
Mrs. Jyoti Khanna |
131000 |
6.86 |
|
Ravi Khanna – HUF |
30000 |
1.57 |
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Mr. Ravi Khanna / Mrs. Jyoti Khanna |
5943 |
0.31 |
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Meena Gandotra Family Trust |
5318 |
0.28 |
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Mrs. Neelam Vinaik F Trust |
5318 |
0.28 |
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Mr. Arun Gandotra |
5 |
0.00 |
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Mr. R L Anand |
4500 |
0.24 |
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Mrs. Shanti Devi Malhotra |
29000 |
1.52 |
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Mr. Aadist Khanna |
182750 |
9.57 |
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Mr. Bhavya Khanna |
21032 |
1.10 |
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Mrs. Kauslya Devi Mangi |
47500 |
2.49 |
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Mrs. Anju Khanna |
32000 |
1.68 |
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Bhavna Industries |
91000 |
4.76 |
|
Balkrishna Das Malhotra |
136000 |
7.12 |
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Deepak Khanna – HUF |
100 |
0.01 |
|
Hilton Tyre Private Limited |
200000 |
10.47 |
|
Eurosoft International Limited |
150000 |
7.85 |
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Total |
1910000 |
100.00 |
As on 30.09.2007
|
Names of Shareholders |
|
Percentage of
Holding |
|
Bodies Corporate |
|
24.57 |
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Directors or Relative of Directors |
|
71.66 |
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Other top fifty (50) shareholders |
|
3.77 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Exporting of Compound Rubbers, Pulley Lagging,
V-Belts, Transmission Belts, Conveyor Belts and Rubber Sheets. |
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Products with ITC Code : |
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Exports : |
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Products : |
All Products |
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Countries : |
USA, UK and other parts of the world. |
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Imports : |
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Products : |
Raw Materials. |
GENERAL
INFORMATION
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No. of Employees : |
Around 268 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shanty Prasad and Company Chartered Accountants |
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Address : |
M-96, Connaught Place, New Delhi 110 001, India |
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Associates : |
·
Hilton International Limited Hilton House,
S-23, Green Park Extension, New Delhi – 110 016 Tel. 91-11-26534243/26516327 Fax.
91-11-51755366 E-mail. hilton@hilton-int.com ·
Mercury Rubber Mills ·
Hilton Renoulds Limited, Rai, Sonepat |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
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4000000 |
Equity Shares |
Rs. 10/- each |
Rs. 40.000 millions |
|
100000 |
Preference Shares |
Rs. 100/- each |
Rs. 10.000 millions |
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|
Total |
|
Rs. 50.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
2085870 |
Equity Shares |
Rs. 10/- each |
Rs. 20.858 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 |
20.858 |
19.733 |
19.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
53.577 |
37.196 |
25.719 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
74.435 |
56.929 |
44.819 |
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LOAN FUNDS |
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1] Secured Loans |
58.915 |
26.312 |
23.429 |
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2] Unsecured Loans |
64.575 |
52.993 |
43.011 |
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TOTAL BORROWING |
123.490 |
79.305 |
66.440 |
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DEFERRED TAX LIABILITIES |
5.158 |
4.938 |
0.000 |
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TOTAL |
203.083 |
141.172 |
111.259 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
69.314 |
53.589 |
43.209 |
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Capital work-in-progress |
0.465 |
0.000 |
0.000 |
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INVESTMENT |
0.350 |
0.350 |
0.350 |
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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 |
99.115
|
59.576 |
52.720 |
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Sundry Debtors |
112.223
|
61.132 |
42.437 |
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Cash & Bank Balances |
13.979
|
13.502 |
8.359 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
52.040
|
37.732 |
22.436 |
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Total
Current Assets |
277.357
|
171.942 |
125.952 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
138.943
|
80.449 |
55.452 |
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Provisions |
5.460
|
4.260 |
2.800 |
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Total
Current Liabilities |
144.403
|
84.709 |
58.252 |
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Net Current Assets |
132.954
|
87.233 |
67.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
203.083 |
141.172 |
111.259 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
800.922 |
680.928 |
165.752 |
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Other Income |
2.284 |
1.016 |
341.361 |
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Total Income |
803.206 |
681.944 |
507.113 |
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Profit/(Loss) Before Tax |
14.227 |
9.420 |
8.675 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
14.227 |
6.420 |
8.675 |
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Expenditures : |
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Raw Material Consumed |
587.508 |
502.861 |
346.068 |
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Purchases made for re-sale |
17.696 |
16.679 |
0.000 |
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Increase/(Decrease) in Finished Goods |
105.414 |
82.247 |
0.000 |
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Salaries, Wages, Bonus, etc. |
69.264 |
62.937 |
8.638 |
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Managerial Remuneration |
0.000 |
0.000 |
0.949 |
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Payment to Auditors |
0.000 |
0.000 |
0.045 |
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Interest |
0.000 |
0.000 |
3.444 |
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Insurance Expenses |
0.000 |
0.000 |
0.911 |
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Power & Fuel |
0.000 |
0.000 |
23.033 |
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Depreciation & Amortization |
9.096 |
7.799 |
0.000 |
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Other Expenditure |
0.000 |
0.000 |
115.350 |
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Total Expenditure |
788.978 |
672.523 |
498.438 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.77 |
0.94 |
1.71 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.77 |
0.94 |
1.71 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.09
|
4.17 |
5.11 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.16 |
0.19 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.67
|
3.96 |
3.78 |
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Current Ratio (Current Asset/Current Liability) |
|
1.92
|
2.03 |
2.16 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8
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This form is for |
Creation of charge |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U51109DL1983PLC015047 |
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Name of the company |
FORECH INDIA LIMITED |
|
Address |
Hilton House, S-23, Green Park Extension,
New Delhi – 110 016, India |
|
Type of Charges |
Movable property being hypothecated |
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Whether consortium finance is involved |
No |
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Whether joint charge involved |
No |
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Number of charge holder(s) |
1 |
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Particular of the charge holder |
Centurion Bank of Punjab Limited 2nd Floor, Indian Express Building, Bahadur Shah Zafar Marg, ITO, New Delhi 110 002, India |
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Nature or description of the instrument creating or modifying the charge |
Loan cum hypothecation agreement |
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Date of the instrument creating charge |
27.02.2007 |
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Whether charge created or modified outside India |
No |
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Amount Secure by the charge |
Rs. 1.450 million |
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Brief particulars of the principal terms and conditions and extent and operation of the charge |
Rate of Interest: 9.5% Terms of repayment: 36 monthly installments of Rs. 0.046 million Margin: as per agreement Extent and operation of the charge: first charge in favour of the bank and vehicle financed by the bank will be the security and borrower will pay the whole loan amount with interest and all costs, charges and expenses incurred by the bank related therewith. The bank will charge overdue interest @ upto 2% p.m. in the event of non payment of installments as per schedule on the outstanding amount. Borrower will pay all the other chares as per loan cum hypothecation agreement. |
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Short particulars of the Property charged |
Skoda Laura Engine No. 201034 CHASUS NO. 153336 |
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Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
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Name of the company |
FORECH INDIA LIMITED |
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Presented By |
Centurion Bank of Punjab Limited, L-40, Circus, New Delhi 110 001, India |
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1) Date and description of instrument creating the change |
Dt. 23.12.2005 Agreement of guarantee |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 50.000 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 |
Corporate guarantee given by the company in favour of the bank for bank having granted various credit facilities to Hilton International Limited. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The above is to collaterally secured the various credit facilities aggregating to Rs. 50.000 millions granted to Hilton International Limited. |
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5) Name and Address and description of the person entitled to the charge. |
Centurion Bank of Punjab Limited L-40, Circus, New Delhi 110 001, India |
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6) Date and brief description of instrument modifying the charge |
N A |
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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. |
N A |
It’s products range include :-
- Heat
Resistant Conveyor Belts for Cement and Steel Industry
- Cleated Belts
- Rubber Sheets
- Conveyor
Accessories
- Pulley
Accessories
- Wear
Resistant
- Repair
Bends/Patches
- Accessories
It is in trade terms with :-
v Escorts Limited,
Faridabad
v Maruti Udhyog
Limited, Gurgaon
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.41.38 |
|
UK Pound |
1 |
Rs.81.23 |
|
Euro |
1 |
Rs.64.13 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|