MIRA
INFORM REPORT
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Report Date : |
14.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANG AUTO LIMITED |
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Registered Office : |
1C/13, New Rohtak Road, Karol Bagh, New Delhi – 110005 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.07.1991 |
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Com. Reg. No.: |
55-45084 |
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CIN No.: [Company
Identification No.] |
L51909DL1991PLC045084 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELA04382A |
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PAN No.: [Permanent
Account No.] |
AAACA2969B |
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Legal Form : |
A public limited liability company. The company’s shares are listed on
the stock exchange. |
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Line of Business : |
Manufacturer and supplier of heavy vehicle spare parts
like axles, trailer axles, suspensions, landing gears, brake assemblies, automatic
slack adjuster, brake S-chamshafts, brake pins and rollers. |
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 2700000 |
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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.
General financial position is good. 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. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
1C/13, New Rohtak Road,
Karol Bagh, New Delhi – 110005 |
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E-Mail : |
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Website : |
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Corporate Office : |
19, Udyog Vihar,
Greater Noida, Noida – 201301, Uttar Pradesh, India |
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Tel. No.: |
91-120-2560462,
2560463, 2353054, 2353055 |
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Fax No.: |
91-120-2560462, 2560463 |
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E-Mail : |
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Secretarial
Department : |
90, Okhla Industrial Estate, Phase – III, New
Delhi - 110020 |
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Plant –I : |
B-48, Phase-II, Noida |
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Plant-II : |
19-A, Udyog Vihar,
Greater Noida, District Gautam Budh Nagar 9 (U.P.) |
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Plant-III : |
Special Economic Zone,
I - 11&12, SEZ, Noida, District Gautam Budh Nagar |
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Plant-IV : |
Village Derowal, Near Tax Barrier, P.O. Manjholi, Tehsil-
Nalagarh, District : Solan (H.P.) |
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Plant-V : |
14/6, Mathura Road,
Faridabad,(Haryana) |
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Plant-VI : |
150A, SEZ, Noida,
Distt. Gautam Budh Nagar |
DIRECTORS
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Name : |
Mr. Premjit Singh |
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Designation : |
Managing Director |
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Name : |
Mr. Manoj Gupta |
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Designation : |
Director |
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Name : |
Mr. O. P. Sharma |
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Designation : |
Director |
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Name : |
Mr. Sanjay Garg |
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Designation : |
Director |
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Name : |
Mr. G. S. Jolly |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. Rajiv Malik |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.12.2007
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Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
3444949 |
28.94 |
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Bodies Corporate |
2239978 |
18.82 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
561092 |
4.71 |
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Financial Institutions / Banks |
1000 |
0.01 |
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Foreign Institutional Investors |
2930447 |
24.62 |
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Non-institutions |
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Bodies Corporate |
783015 |
6.58 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
1251392 |
10.51 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million |
456040 |
3.83 |
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Any Other (specify) |
143954 |
1.21 |
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NRI’s |
88833 |
0.75 |
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OCB’s |
1800 |
0.02 |
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TOTAL |
11902500 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and supplier of heavy vehicle spare parts
like axles, trailer axles, suspensions, landing gears, brake assemblies,
automatic slack adjuster, brake S-chamshafts, brake pins and rollers. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Spindles made of steel, Gears, Slack Adjusters, Drop Forged Stub Axle
Forging (Machined) (Semi-Finished), Alloy Steel Forging (Machined) - Drop
Forged, Stub Axle Forging (Machined), Differential Spider, Fully Dressed
Dummy Trailer Axles, Automatic Slack Adjuster, suspensions, Clutch Collar,
Differential Pins, Brake shoes, Brake spiders, S - cam Shaft |
7462000 |
4810419 |
GENERAL
INFORMATION
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Bankers : |
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Facilities : |
Notes: (1) Securities offered
to Banks to secure Term Loamfa) Bank of Baroda :
- First charge on fixed assets'of the Company financed by the Bank - First charge
on the Company's land & building situated at B-48, Noida, Phase-ll, U.R - Second charge
on the land & building situated at 19-A Udyog Vihar, Greater Noida, U.R
(First charge of which is with Greater Noida Industrial Development Authority
for deferred installments on the land). - Personal
Guarantee of Promoters, (b) Yes Bank
Limited : - First charge
on fixed assets of the Company financed by the bank, including first charge
on building of the Company situated at 150-A, SEZ, Noida, U.R - Personal
Guarantee of Promoters. (2) Securities
offered to Banks (viz. Bank of Baroda, State Bank of India, Development
Credit Bank Limited and Yes Bank Limited) to secure working capital
facilities under multiple banking arrangement, on pari-passu basis:- (a)
Hypothecation of inventories viz raw material, stock in process, finished
goods, stores and spares etc. including the stock in transit, stocks lying
with processors & in third party godown consisting of automotive parts,
receivables and other current assets, both present and future, except
vehicles exclusively hypothecated to banks. (b) Second
charge on gross block of the Company on pari-passu basis. (c) Personal
Guarantee of Promoters. (3) GNIDA dues
amount is for the deferred installments on the land at 19-A, Udyog Vihar,
Greater Noida, U.R (4) Amer Auto
Corp (USA) Inc. (Tooling Advance) is secured by the stand-by letter of credit
issued by Bank of Baroda. (5) All Vehicle
Loans are secured by Hypothecation of vehicles financed. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sandesh Jain and Company Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11335000 |
Equity Shares (During the year
14,05,000 equity Shares of Rs 10/- each issued at premium of Rs 657- each on
conversion of Share Warrants) |
Rs. 10/- each |
Rs. 113.350
Millions |
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567500 |
Convertible
Share warrant @ Rs 75 /- each
paid up @7.5 each |
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Rs. 4.256
Millions |
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Rs. 117.606 Millions |
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 |
117.606 |
114.094 |
73.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
556.408 |
263.187 |
28.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
674.014 |
377.281 |
101.500 |
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LOAN FUNDS |
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1] Secured Loans |
543.467 |
328.321 |
144.400 |
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2] Unsecured Loans |
2.717 |
1.681 |
12.200 |
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TOTAL BORROWING |
546.184 |
330.002 |
156.600 |
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DEFERRED TAX LIABILITIES |
9.720 |
5.168 |
0.000 |
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TOTAL |
1229.918 |
712.451 |
258.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
266.084 |
150.853 |
103.200 |
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Capital work-in-progress |
82.617 |
10.739 |
0.000 |
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INVESTMENT |
56.250 |
19.737 |
1.500 |
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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 |
318.888
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175.336 |
46.300 |
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Sundry Debtors |
386.165
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287.254 |
117.600 |
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Cash & Bank Balances |
93.682
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138.872 |
6.700 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
241.665
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127.473 |
17.900 |
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Total
Current Assets |
1040.400
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728.935 |
188.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
241.609
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209.902 |
37.700 |
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Provisions |
0.000
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0.000 |
2.200 |
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Total
Current Liabilities |
241.609
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209.902 |
39.900 |
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Net Current Assets |
798.791
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519.033 |
148.600 |
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MISCELLANEOUS EXPENSES |
26.176 |
12.089 |
4.800 |
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TOTAL |
1229.918 |
712.451 |
258.100 |
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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 and Other Income |
1145.408 |
459.928 |
197.300 |
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Profit/(Loss) Before Tax |
258.912 |
119.067 |
14.000 |
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Provision for Taxation |
28.807 |
25.265 |
3.900 |
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Profit/(Loss) After Tax |
230.105 |
93.802 |
10.100 |
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Expenditures : |
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Material Consumed |
597.741 |
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Manufacturing Expenses |
158.213 |
100.614 |
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Selling and Distribution Expenses |
47.767 |
31.346 |
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Administrative Expenses |
26.704 |
16.157 |
183.300 |
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Financial Expenses |
33.958 |
14.945 |
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Depreciation |
15.309 |
8.283 |
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Miscellaneous Expenses Written off |
6.802 |
3.044 |
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Total Expenditure |
886.494 |
450.862 |
183.300 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
316.100 |
288.100 |
290.700 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
316.100 |
288.100 |
290.700 |
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Total Expenditure |
239.600 |
223.900 |
224.000 |
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Operating Profit |
76.500 |
64.200 |
66.700 |
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Interest |
15.500 |
14.600 |
16.100 |
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Gross Profit |
61.000 |
49.600 |
50.600 |
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Depreciation |
4.600 |
5.200 |
6.800 |
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Tax |
6.400 |
3.300 |
4.900 |
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Reported PAT |
50.000 |
41.100 |
38.900 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
0.86 |
1.08 |
1.43 |
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Long
Term Debt-Equity Ratio |
0.14 |
0.17 |
0.39 |
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Current
Ratio |
1.45 |
1.34 |
1.31 |
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TURNOVER
RATIOS |
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Fixed
Assets |
4.75 |
3.94 |
2.34 |
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Inventory |
4.59 |
5.13 |
5.69 |
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Debtors |
3.37 |
2.81 |
1.99 |
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Interest
Cover Ratio |
7.69 |
8.27 |
2.63 |
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Operating
Profit Margin(%) |
27.58 |
25.33 |
14.16 |
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Profit
Before Interest And Tax Margin(%) |
26.23 |
23.87 |
11.89 |
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Cash
Profit Margin(%) |
21.63 |
17.97 |
7.58 |
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Adjusted
Net Profit Margin(%) |
20.28 |
16.51 |
5.32 |
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Return
On Capital Employed(%) |
32.04 |
29.49 |
11.82 |
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Return
On Net Worth(%) |
45.14 |
44.81 |
15.60 |
LOCAL AGENCY
FURTHER INFORMATION
Operations
during 2006-07:
During the year, the Company's turnover increased from Rs.570 Millions to
Rs.1145.400 Millions.
In December 2006, commercial production has been started in the seventh plant
of the Company situated at 19, Udyog Vihar, Greater Nodia, District: Gautam Budh
Nagar, Uttar Pradesh.
The subsidiary company of the Company i.e. ANG Auto Tech (P) has also commenced
its commercial production in April 2007.
Future operations:
* The Company invested in the manufacturing of trailers at its new facility at
Sitargunj which commenced operations on April 1, 2007. The Company possesses a
fleet of 18 standard trailer varieties for multiple payloads and applications
to capitalise on the growing demand of these vehicles.
* The Company invested in manufacturing trailer axles at its new Greater Noida
facility based on the new friction welding technology - a first time in India.
In addition to being an important integration and a de-risking initiative for
their trailer venture, this initiative will now help them establish a strong
global foothold, which was hitherto not possible with the premium Fuwa axles.
The unit commenced operation in December 2006.
They successfully established two business verticals - auto
components/assemblies and vehicles - which will complement and provide growth
opportunities for each other. More importantly, they will provide an i adequate
de-risking for the Company against trend reversals in any one j business
segment.
A combination of these will position the Company among the leading auto-component
manufacturers in India and as the largest Indian trailer manufacturer.
US patent:
During the year, the Company has been granted a US patent
for the Automatic Slack Adjuster, by the United State Patent & Trade Mark
Office, based on the Company's application filed in 2004. The patent shall
present the Company with a great access to various OEM customers in the US and
the European markets. This grant of patent makes the Company one of the very
few companies in the world with a patented Auto-Slack. The Automatic Slack
Adjuster was developed and engineered by ANG's in-house technical team.
Merger
of ANG Auto Tech (P) Limited with ANG Auto Limited:
During the year, the Board of Directors of ANG Auto Limited and ANG Auto Tech
(P) Limited have approved the scheme of the merger of ANG Auto Tech (P) Limited
(75% subsidiary of the Company) with ANG Auto Limited
Accordingly, the petitions for the above merger have been filed before the high
court of Delhi. As per the order of the Delhi High Court dated 23rd July 2007,
meetings of shareholders, secured creditors and unsecured creditors of ANG Auto
Limited was convened on 25th August 2007 to approve the scheme of the merger
and the same was approved, subject to the final approval of the Delhi High
Court.
Incorporation
of a wholly-owned subsidiary in Hong Kong:
A company named ANG Auto (HK) Limited has been incorporated by ANG Auto Limited
as a promoter in Hong Kong, as per the laws of that country vide certificate of
incorporation j issued on 6th August 2007.
Fixed
Assets
- Land
- Buildings
- Furniture
- Vehicle
- Commercial
Vehicle
- Electrical
Equipments
- ETP Plant
- Plant &
Machinery
- Office
Equipment
- Computer
& Accessories
- Water Cooler
- Mobile
- Patent Right
Expenses
AS PER WEBSITE
Profile
o
Specialised: Their competence lies in the
forged, CNC-machined, assembly and heat treatment of automotive components for
specialized applications.
o
Scale: They are one of the largest
manufacturers in India of these components used in the manufacture of trailer
axles, transmission and air-brake systems.
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Competitive: More than 55 per cent of their
revenue is derived from exports to quality conscious US and European markets in
addition to Australia, Brazil and Mexico, among others.
o
Customers: Their brand-enhancing customers
comprise Tier-I and Tier-II companies across the world like Arvin Meritor
(USA), Alliance Corporation (USA), Zenus Starker – BMW (USA) and Bosch Rexroth
(UK), among others.
o
Responsive: Their sampling and prototype
development is one of the quickest, helping enhance customer competitiveness in
the shortest time
o
Operational
flexibility:
Their manufacturing presence across five facilities covers nearly 250,000 sq.
ft. across NOIDA and Faridabad,Sitarganj, Uttranchal (both adjacent to New Delhi,
India’s capital).
o
Visible: Their shares are listed on the
Mumbai
History
Growth of the
ANG group over the last decade
o
ANG
Exports (erstwhile flagship company) was engaged only in the manufacture of
air-brake components.
o
Widened
the product portfolio through privately held group companies (unlisted) like
ANG Auto Private Limited and ANG Automotive Industries Private Limited
o
In
2005, the ANG management consolidated (pop-up link to the consolidation text)
these group companies to create ANG Auto Limited.
o
This
consolidation is expected to accelerate growth and enhance stakeholder
confidence
o
The
consolidated company expects to strengthen its position as the leading
multi-product manufacturer-exporter of automobile components to developed
country OEMs.
Milestones
|
Year |
Event |
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1991 |
Established ANG Exports (P) Limited for manufacture and
export of engineering goods to various customers of North America mainly
catering to wholesaler distributors initially |
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1994 |
Converted ANG Exports (P) Limited to a Public Limited
Company |
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Purchased its first facility at B-48 Noida Phase-II, Noida |
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1995 |
Commenced operations of its Noida facility |
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First Public Issue - The company raised its capital from the
market in April 1995 by issuing 27.50 lakhs equity shares at par |
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1997 |
Selected as supplier to Rockwell Automotive, USA |
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1998 |
Commenced business relation with Dexter Axle, USA as
supplier of stub axle |
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Set up a plant at Faridabad in the name of ANG Automotive
Industries (P) Limited, to manufacture Differential Spiders |
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2000 |
Got Tier I status from Mack Trucks, USA |
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2004 |
Merger of ANG Auto with ANG Exports Limited in November |
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Selected for supply of Cylinder Blocks by M/S Hillfoot
Steel, UK, for further supply to Rexroth Bosch |
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First domestic tie-up -- Established as a source to Ashok
Leyland for Manual Slack Adjusters |
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2005 |
Alliance with Guandong Fuwa (China) for single piece dummy
axles in June |
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Started commercial production at NSEZ (Noida Special
Economic Zone) plant for manufacture of Automatic Slack Adjustors in
September |
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In November, started commercial production at Nalagarh
Plant at Himachal Pradesh, for manufacture of Single Piece Dummy Axle for
trailers |
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Took over the manufacturing activity of ANG Automotive
Industries w.e.f. December |
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2006 |
Technical Collaboration with Shanghai Fulangie Import
& Export Co. Limited Shanghai, China in March 2006 |
Alliance
THE MANUFACTURER OF
TECHNOLOGICALLY SUPERIOR PRODUCTS REPRESENTS THEIR PRINCIPAL COMPETITIVE EDGE
Collaboration with FUWA, Chinese
auto component giant
o
Collaboration
forged with Fuwa Engineering Manufacturing Co. Limited (China) for the
production and assembly of single piece dummy axles.
o
Alliance
will enable them to launch the fully-dressed single piece dummy axles for the
first time in India under the ‘ANG-Fuwa’ brand.
o
Agreement
enables them to market these axles to Pakistan, Sri Lanka, Nepal and Bangladesh
o
Proposing
to offer complete suspension systems and other components like the fifth wheel,
trailer jacks and king pins to their customers
o
Proposed
facility at Bhiwadi (Rajasthan) dedicated to the production of suspension
systems likely to go on stream by end-2006
o
Entered
into an MOU with Fuwa to set up a joint venture company (ANG Fuwa Limited) in
India for the manufacture of trailers, trailer axles and other components.
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.42.16 |
|
UK Pound |
1 |
Rs.82.28 |
|
Euro |
1 |
Rs.65.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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 |
|
|
>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 |
|