MIRA INFORM REPORT
|
Report Date : |
15.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
AIR WORKS INDIA ENGINEERING PRIVATE LIMITED |
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Registered
Office : |
Mumbai International Air Port, Gate No. 8,
Santacruz, Mumbai - 400 029, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
11.09.1986 |
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Com. Reg. No.: |
11-40889 |
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CIN No.: [Company
Identification No.] |
U74210MH1986PTC040889 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
MUMA19638D |
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PAN No.: [Permanent
Account No.] |
AABCA1069P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Overhauls, Repairs and Modifications of airframes, engines and
ancillaries, air supply drop, infra red scanning, aerial photography, aerial
spraying, artificial rainmaking, aero export and air charters. |
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 350000 |
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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 having satisfactory
track. Directors are reported as
experienced, respectable and having substantial means of their own. Their trade relations are reported as
fair. Payments are correct and as per
commitments. The company can be considered normal for business dealings at
usual trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Ashok Shah |
|
Designation : |
Finance Manager |
|
Date : |
10.11.2008 |
LOCATIONS
|
Registered
Office : |
Mumbai International Air Port, Gate No. 8,
Near Kalina Military, Santacruz, Mumbai - 400 029, Maharashtra, India |
|
Tel. No.: |
91-22-26157213 /26124448/9911/ 26157256 /
26157296 / 26157221 |
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Mobile No.: |
91-9324805202 |
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Fax No.: |
91-22-26115232/ 26157069 |
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E-Mail : |
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Branches : |
Located at: ·
Delhi ·
Hyderabad ·
Cochin ·
Chennai ·
Calicut ·
Mumbai ·
Hosur |
DIRECTORS
|
Name |
Mr. Shivdas Parakkal Menon |
|
Designation |
Chairman |
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Date of Birth |
27.09.1921 |
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Date of
Appointment |
11.09.1986 |
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Address |
‘Valhala’, 3/1660, Paropody, Mari Kunj,
Calicut – 673012, Kerala, India |
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|
|
|
Name |
Mr. Ravi Shivdas Menon |
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Designation |
Director |
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Address |
Flat # 105/106, Premium Tower, Lokhandwala Complex, Versova Road,
Andheri (West), Mumbai – 400058, Maharashtra, India |
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Date of Birth |
27.11.1953 |
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Qualification : |
AME |
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Date of
Appointment |
11.09.1986 |
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|
|
|
Name |
Mr. Sahadev Gopinath Menon |
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Designation |
Director |
|
Address |
102/103, Raj Mandir, Off Yari Road,
Versova, Mumbai – 400061, Maharashtra, India |
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Date of Birth |
07.10.1955 |
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Qualification : |
BSC, DBM, AME |
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Date of
Appointment |
11.09.1986 |
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|
|
|
Name |
Mr. Raghudev Gopinath Menon |
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Designation |
Director |
|
Address |
Flat # 101/102, Magnum Tower, Lokhandwala Complex, Versova Road,
Andheri (West), Mumbai – 400058, Maharashtra, India |
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Date of Birth |
07.04.1957 |
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Qualification : |
BSC |
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Date of
Appointment |
11.09.1986 |
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|
|
|
Name |
Mr. Atul Punj |
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Designation |
Director |
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Address |
10, Prithvi Raj Road, New Delhi – 110 011,
India |
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Date of Birth |
27.10.1957 |
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Date of
Appointment |
04.02.2008 |
KEY EXECUTIVES
|
Name : |
Ragini Chokshi and Company |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
(As on 27.09.2007)
|
Names of Shareholders |
No. of Shares |
|
Shivdas P. Menon |
10000 |
|
Ravi S. Menon |
20000 |
|
Sahadev G. Menon |
10000 |
|
Gayatri D. Heble |
10000 |
|
Raghudev G. Menon |
10000 |
|
Kalpana R. Nair |
10000 |
|
Rajdev G. Menon |
10000 |
|
Jaidev G. Menon |
10000 |
|
Nalini G. Menon |
10000 |
|
Indus Age Management |
6000 |
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|
|
|
Total |
106000 |
List of Allotment (As on 21.11.2007)
|
Names of Allottees |
No. of Shares |
|
GTI Holdings LLC |
32295 |
|
Total |
32295 |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
|
Directors or relatives of directors
|
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Overhauls, Repairs and Modifications of airframes, engines and
ancillaries, air supply drop, infra red scanning, aerial photography, aerial
spraying, artificial rainmaking, aero export and air charters. |
|
|
|
|
Products : |
Maintenance and Overhauls of Air Charters |
GENERAL
INFORMATION
|
Customers : |
·
Corporate ·
Government Bodies |
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No. of Employees
: |
Around 400 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Niranjan V. Shah and Associates Chartered Accountants |
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Address : |
304, Maker Bhavan No. 3, 21, New Marine Lines, Mumbai – 400020,
Maharashtra, India |
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Tel. No.: |
91-22-56331980 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000 |
Equity Shares |
Rs.100/- each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
106000 |
Equity Shares |
Rs.100/- each |
Rs.10.600 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10.600 |
10.000 |
10.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
58.575 |
55.672 |
56.408 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
69.175 |
65.672 |
66.408 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4.833 |
0.519 |
0.612 |
|
|
2] Unsecured Loans |
1.415 |
1.415 |
1.415 |
|
|
TOTAL BORROWING |
6.248 |
1.934 |
2.027 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
Bank Overdraft |
0.549 |
0.000 |
0.000 |
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TOTAL |
75.972 |
67.606 |
68.435 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7.100 |
6.153 |
3.967 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.222 |
1.060 |
3.890 |
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|
DEFERREX TAX ASSETS |
0.086 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
0.396
|
0.000 |
0.000 |
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|
Sundry Debtors |
46.926
|
31.823 |
26.611 |
|
|
Cash & Bank Balances |
0.000
|
20.580 |
18.430 |
|
|
Other Current Assets |
30.097
|
23.321 |
29.905 |
|
|
Loans & Advances |
13.581
|
1.827 |
1.462 |
|
Total
Current Assets |
91.000
|
77.551 |
76.408 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
18.383
|
16.053 |
11.220 |
|
|
Provisions |
5.951
|
1.105 |
4.610 |
|
Total
Current Liabilities |
24.334
|
17.158 |
15.830 |
|
|
Net Current Assets |
66.666
|
60.393 |
60.578 |
|
|
MISCELLANEOUS EXPENSES |
|
|
|
|
|
Revenue Expenditure |
0.898 |
0.000 |
0.000 |
|
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|
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|
|
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TOTAL |
75.972 |
67.606 |
68.435 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
Gross Income |
|
195.100 |
146.100 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
15.800 |
1.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.44
|
0.29 |
0.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.74
|
4.52 |
4.83 |
LOCAL AGENCY
FURTHER INFORMATION
Working Results
The company’s performance has improved significantly during the year
2006-07. As a result the gross income of the company of the company has
increased from Rs.146.100 millions in the year 2005-06 to Rs.195.100 millions
in the year 2006-2007. The profit before provision for income Tax and Fringe
Benefit Tax has increased to Rs.15.800 millions in the year 2006-07 as against
Rs.1.300 millions in the year 2005-2006.
During the year the company has achieved improved results inspite of
Steep increase in salaries of Engineers and technical staff. The improved
performance is due to higher income of Maintenance Repairs and Overdrafts of
aircrafts coupled with better efficiency which has resulted in higher
profitability.
Increase in Share
Capital
During the year company has issued 6000 equity shares of Rs.100/- each
at a premium of Rs.500/- per share resulting into increase in paid up share
capital of the company by Rs.0.600 million and share premium reserve of
Rs.3.000 millions.
Business Expansion
/ Diversification
Government of India has off late liberalized the policy for Aviation
Sector in India. There is tremendous growth and scope in Aviation Sector by
permitting New Airlines in Domestic and International Roots and also allowing
private sector to start New Airlines for passenger’s and cargo transaction and
development to tourism. The existing airlines have expanded and have further
plans of adding new aircrafts for domestic and international roots for
passenger and cargo transportation. The country’s increasing share in global
trade and joint ventures, mergers and acquisitions of business in India and
abroad has necessitated for the corporate business houses and entrepreneurs to
acquire the aircrafts and avail the facility of operating, maintenance and
overhauls of the aircrafts and helicopters. This has opened the doors of New
Opportunities and Business for the company to provide Maintenance, Repairs,
Overhauls of aircrafts and other related aviation services.
Form No. 8
|
Corporate
identity number of the company |
U74210MH1986PTC040889 |
|
Name of the
company |
AIR WORKS INDIA ENGINEERING PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Mumbai International Air Port, Gate No. 8, Santacruz, Mumbai - 400
029, Maharashtra, India |
|
This form is for |
Creation of
charge |
|
Type of charge |
Hypothecation |
|
Particular of
charge holder |
Syndicate Bank Dr. Dadhich Hospital Building, Near Railway Station, Santacruz (East),
Mumbai – 400 055, Maharashtra, India |
|
Nature of
instrument creating charge |
Composite
Hypothecation Agreement |
|
Date of
instrument Creating the charge |
09.06.2006 |
|
Amount secured by
the charge |
Rs.1.000 million |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Interest @ 13.25%
p.a. |
|
Description of
the property charged indicating whether it is a charged on |
·
Stock in
trade ·
Plant and
Machinery ·
Book debts ·
Furniture
and fixtures ·
Vehicles |
|
Particulars of
the property charged |
All the goods
stocks, raw materials, finished goods, unfinished goods, movable property of any
kind plant M/C Hardwares and Office Equipments Fixtures, Impements fittings
and other installations furniture vehicles, Computers and all other Articles
and things or Borrower’s Premises at Gala No. 8 01 Sonata Guz. Airport Near
Kalina Military Camp Santacruz East Mumbai 400 029 |
History
Subject
was founded in 1951 by Mr. B. G. Menon and Mr. P. S. Menon, both considered to
be not only seasoned technocrats in aviation but also recognised as two of the pioneers
who contributed to the development of Indian Civil Aviation. Starting
with the maintenance and overhaul work on a few DC-3s in the early 1950s, their
firm, Subject, has gone on to work on an impressive number and variety of
aircraft.
Indeed
in a field totally dominated by public sector undertakings such as the two
major nationalised airlines and Hindustan Aeronautics Limited, Subject, a
totally private company with a fiercely independent outlook, has managed to
successfully carve out a niche for itself in India. The fact that subject
has continued for over 40 years by dint of its own engineering abilities speaks
highly of two Men (ons) at the helm of the company’s affairs. Subject has
the privilege of maintaining and operating aircraft of not only government
agencies like National Airports Authority, National Remote Sensing Agency,
Geological Survey of India and several State Governments but also those of
leading private sector groups like ESSAR, Reliance, Hindustan Aluminium
etc. The aircraft are also varied - from piston-engined aircraft to
modern day turbofans, from single engined aircraft to multiple engined aircraft
and Rotor Winged Aircraft. Nature of work has also varied from routine
basic maintenance to major overhauls including Check C’s of four engined
commercial airlines - no mean feat at all for a company whose strength lies in
the ability to continuously innovate.
Today
subject looks after nearly 40 aircraft, as varied as they can. It has the
ability and the resources to maintain and operate aircraft of wide variety in
size and complexity. The number of customers and the variety of aircraft
to be serviced by Air Works India, signifies the confidence which government
and private operators have in this small private sector company. It is
also to this company’s credit that it has refused to take on additional work
feeling it will not be able to do justice to all the customers, old and new, in
a service-oriented activity such as aircraft operation and maintenance.
Profile
Subject's provider of Aviation
Services with unsurpassed quality, reliability, and turnaround time
Largest independent General Aviation
and MRO company in India
·
Established
in 1951
·
Headquartered
at Mumbai International Airport (50,000 Sq ft hangar)
·
Additional
facilities in 12 airports around the country
Extensive and well-trained work
force of over 500 employees
·
200
AME's, 60 Quality Control engineers, 125 Engineering Technicians
·
Previously
set up Jet Airways' in-house MRO team in 1997 (200 ex- Air Works employees)
Currently provides a broad range of
aviation related services
·
Maintenance,
Repair, Overhaul and modifications of fixed and rotary wing
·
Charter
Operations through Non Scheduled Operator’s license
·
Flight
Service Facilitation
·
Aircraft
Sales Representation (Gulfstream)
·
Bombardier,
Gulfstream, Beech Hawker, Air India Express and Reliance
·
65
Aircraft under maintenance contract from all Tier 1 Corporate customers: Birla,
Reliance, Essar
About Air Works
Established
in 1951, Subject is the largest independent General Aviation and MRO Company in
India. With an extensive and skilled work force of over 500 employees across 12
airports in the country, Subject manages India's largest aviation technical
staff and provides comprehensive services for fixed and rotary wing aircraft.
The company has enormous experience in running India's largest MRO operation
for jet and turboprop aircraft and helicopters and was also involved in setting
up Jet Airways' in-house MRO team in 1994. In 2007, New York-based
private investment firm Global Technology Investment and construction firm Punj
Lloyd made growth equity investments in Company.
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 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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
47 |
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 |
|