MIRA
INFORM REPORT
|
Report Date : |
04.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAX AEROSPACE AND AVIATION LIMITED |
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Registered
Office : |
Hangar No.C-1, Juhu Aerodrome, Mumbai-400 054, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
12.07.1994 |
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Com. Reg. No.: |
11-79577 |
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CIN No.: [Company Identification
No.] |
U35300MH1994PLC0079577 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM10816B |
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PAN No.: [Permanent Account No.] |
AABCM9671M |
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Legal Form : |
A closely held public limited liability company |
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Line of Business
: |
Repairs and Maintenance of Aircraft parts. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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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 320000 |
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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 an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Kirit Mehta |
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Designation : |
Chief Financial Officer |
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Date : |
03.01.2011 |
LOCATIONS
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Registered Office : |
Hangar No.C-1, Juhu Aerodrome, Mumbai-400 054, |
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Tel. No.: |
91-22-26609723/27/28/29 |
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Fax No.: |
91-22-26609724 |
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E-Mail : |
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Website : |
SOLE PROPRIETOR
As on 30.09.2010
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Name : |
Mr. Malkani H.
Bharat |
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Designation : |
Chairman Cum Managing Director |
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Address : |
Bindiya, |
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Date of Birth/Age : |
29.10.1965 |
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Date of Appointment : |
12.07.1994 |
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Name : |
Mr. Malkani H. Pravin |
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Designation : |
Director |
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Address : |
Bindiya, |
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Date of Birth/Age : |
04.07.1968 |
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Date of Appointment : |
12.07.1994 |
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Name : |
Ms. Malkani B. Jyoti |
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Designation : |
Whole Time DIRECTOR |
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Address : |
Bindiya, |
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Date of Birth/Age : |
21.01.1966 |
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Date of Appointment : |
12.07.1994 |
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Name : |
Mr. Chinai B.
Jaimini |
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Designation : |
Director |
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Address : |
305,405, Vasant, |
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Date of Birth/Age : |
01.02.1946 |
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Date of Appointment : |
28.07.2005 |
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Name : |
Mr. Purushotham
Baliga Bantwal |
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Designation : |
Director |
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Address : |
603.604, |
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Date of Birth/Age : |
04.04.1933 |
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Date of Appointment : |
28.07.2005 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Malkani H. Bharat |
|
650000 |
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Malkani B. Jyoti |
|
150000 |
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Mlkani Bindiya |
|
100 |
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Malkani H. Pravin |
|
159600 |
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Malkani Bharat Mechna |
|
200 |
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Malkani Pravin Babita |
|
100 |
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Malkani Bharat Anushka |
|
40010 |
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Total |
|
1000010 |
As on 30.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Repairs and Maintenance of Aircraft parts. |
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Exports : |
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Products : |
Service Air Craft Engineer |
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Countries : |
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Imports : |
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Products : |
Aircraft Spares |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS (As on 30.09.2010)
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Particulars |
Unit |
Licensed
Capacity |
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Avionics |
Nos. |
300 |
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Military Aircrafts |
Nos. |
100 |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
75 Approximately |
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Bankers : |
State Bank of |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
C. B. Pokle and Company Chartered Accountants |
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Address : |
201, Chitrakooot, |
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Tel. No.: |
91-22-24322223/24 |
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Fax No.: |
91-22-24322225 |
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E-Mail : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
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 |
|
1000000 |
Equity Shares |
Rs.10/- Each |
Rs.10.000
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
10.000 |
10.000 |
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2] Share Application Money |
17.500 |
25.000 |
0.000 |
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3] Reserves & Surplus |
53.745 |
29.126 |
15.007 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
81.245 |
64.126 |
25.007 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
13.426 |
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2] Unsecured Loans |
22.992 |
18.992 |
13.792 |
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TOTAL BORROWING |
22.992 |
18.992 |
27.218 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.337 |
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TOTAL |
104.237 |
83.118 |
52.562 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
19.255 |
21.692 |
22.828 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.016 |
1.016 |
0.016 |
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DEFERREX TAX ASSETS |
1.755 |
0.706 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
33.753
|
33.308 |
7.392 |
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Sundry Debtors |
52.939
|
23.027 |
17.754 |
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Cash & Bank Balances |
3.422
|
3.223 |
0.648 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
23.556
|
23.892 |
22.213 |
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Total
Current Assets |
113.670
|
83.450 |
48.007 |
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|
Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
21.833
|
18.161 |
13.891 |
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Other Current Liabilities |
2.327
|
1.830 |
0.457 |
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Provisions |
7.445
|
3.945 |
4.175 |
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Total
Current Liabilities |
31.605
|
23.936 |
18.523 |
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Net Current Assets |
82.065
|
59.514 |
29.484 |
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MISCELLANEOUS EXPENSES |
0.146 |
0.190 |
0.234 |
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TOTAL |
104.237 |
83.118 |
52.562 |
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PROFIT & LOSS
ACCOUNT
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|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
133.756 |
107.605 |
92.768 |
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Other Income |
1.306 |
1.995 |
5.632 |
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TOTAL (A) |
135.062 |
109.600 |
98.400 |
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Less |
EXPENSES |
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Material |
43.929 |
32.155 |
56.380 |
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Personal |
23.383 |
22.425 |
19.093 |
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Sales, General and Administrative Expense |
39.150 |
31.526 |
15.939 |
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TOTAL (B) |
106.462 |
86.106 |
91.412 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
28.600 |
23.494 |
6.988 |
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Less |
FINANCIAL
EXPENSES (D) |
0.651 |
5.203 |
2.332 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
27.949 |
18.291 |
4.656 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2.874 |
3.258 |
3.275 |
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PROFIT BEFORE
TAX (E-F) (G) |
25.075 |
15.033 |
1.381 |
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Less |
TAX (H) |
0.550 |
(0.914) |
0.478 |
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PROFIT AFTER TAX
(G-H) (I) |
24.525 |
15.947 |
0.903 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
18.126 |
4.007 |
3.599 |
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Less |
APPROPRIATIONS |
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|
Transfer to General Reserve |
10.000 |
0.000 |
0.300 |
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BALANCE CARRIED
TO THE B/S |
22.745 |
18.126 |
4.007 |
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EARNINGS IN
FOREIGN CURRENCY |
35.824 |
40.895 |
36.745 |
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IMPORTS |
35.498 |
16.101 |
9.112 |
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Earnings Per
Share (Rs.) |
24.62 |
14.12 |
0.71 |
|
Expected Sales (2010-2011) : Rs.170.000 millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
18.16
|
14.55 |
0.92 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
18.75
|
13.97 |
1.49 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
18.86
|
14.30 |
1.95 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.23 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.67
|
0.67 |
1.83 |
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Current Ratio (Current Asset/Current Liability) |
|
3.60
|
3.49 |
2.59 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs.
in millions) |
31.03.2009 (Rs.
in millions) |
31.03.2008 (Rs.
in millions) |
|
Creditors for
Goods |
10.176 |
8.041 |
9.765 |
|
Creditors for
Expenses |
8.212 |
5.232 |
3.148 |
|
Creditors for
others |
3.445 |
4.887 |
0.977 |
OPERATIONS AND
OVERVIEW
Over the years,
the Company has emerged as the largest player in the Private Sector 3rd Party
Component MRO in the country and built up capability to service divergent
Aircraft systems and sub systems. Already equipped with DGCA and CEMILAC
approvals, the Company is in process of obtaining EASA approval to service
overseas clients. They believe, this step will significantly strengthen the
company’s market position globally and serve as a robust bedrock of the growth in coming years.
Year 2009-10 was a satisfying one as they performed well in a challenging
environment. Despite the external challenges, they grew revenue and Earnings.
Overall economic revival in general and Defence and Aviation sectors in
particular, is expected to create manifold opportunities.
Commercial Production
of Defence Aerospace Aviation products commenced in August 2009.
DEMERGER
In terms of the
Order dated 28th August, 2009 issued by the Mumbai High Court, undertakings
related to Max Defence Aerospace Division and Max Defence Systems Division are
transferred to Max Defence Aerospace Limited and Max Defence Systems Limited (
collectively referred to as “ the Transferee Companies) respectively. The
Company has approached Ministry of Industries to take on record transfer of the
undertakings and the industrial licence. The said approval is awaited.
Trade Reference:
·
Jet Airways
·
King Fisher
Fixed Assets:
·
Building
·
Plant and machinery
·
Furniture and Fixture
·
Computers
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.81 |
|
|
1 |
Rs.69.29 |
|
Euro |
1 |
Rs.59.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
|
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
5 |
|
--BUSINESS SCALE |
1~10 |
|
|
--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 |
|
45 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.