MIRA INFORM REPORT

 

 

Report Date :

30.08.2013

 

IDENTIFICATION DETAILS

 

Name :

QUEST GLOBAL MANUFACTURING PRIVATE LIMITED (w.e.f. 24.03.2011)

 

 

Formerly Known As :

QUEST MACHINING AND MANUFACTURING PRIVATE LIMITED

MECHANICAL TRAINING ACADAMY PRIVATE LIMITED

 

 

Registered Office :

First Floor, No. 21/2, Bhattarahalli, 14th K M Old Madras Road, Bangalore- 560049, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.03.2000

 

 

Com. Reg. No.:

08-026760

 

 

Capital Investment / Paid-up Capital :

Rs. 626.015 Millions

 

 

CIN No.:

[Company Identification No.]

U80302KA2000PTC026760

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRM02575G

 

 

PAN No.:

[Permanent Account No.]

AACCM3073E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturing and trading of aerospace, automotive, oil, gas and other industrial components.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 3030000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an establishment company having moderate track record. There appears some accumulated losses by the company.

 

However, Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some cautions.

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

 

RBI DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

 

 

 

LOCATIONS

 

Registered Office :

First Floor, No. 21/2, Bhattarahalli, 14th K M Old Madras Road, Banglore- 560049, Karnataka, India

Mobile No.:

91-80-42495000

Fax No.:

91-80-42495010

E-Mail :

ravi.hugar@quest-global.com

info_sez@quest-global.com

media@quest-global.com

Website :

http://manufacturing.quest-global.com

 

 

Factory  :

No.39, No.437/A, Hattargi Village, Hukkeri Taluka, Belgaum - 591245, Karnataka, India 

Tel. No.:

91-831-3090000

Fax No.:

91-831-3090001

 

DIRECTORS

 

As on 15.05.2013

 

Name :

Mr. Aravind Shivaputrappa Melligeri

Designation :

Director

Address :

3 Ivy Pond Place, The Woodlands, TX 77381 USA

Date of Birth/Age :

24.03.1968

Qualification :

B.E., M.E.

Date of Appointment :

27.03.2000

DIN No.:

00787735

 

 

Name :

Mr. Ajay Aravind Prabhu

Designation :

Director

Address :

#67, Purva Park Ridge, Krishnarajpura, GC Palya, Off Outer Ring Road, Bangalore – 560048, Karnataka, India

Date of Birth/Age :

19.07.1968

Qualification :

B.E., MS., Ph.D.

Date of Appointment :

31.07.2003

DIN No.:

00477195

 

 

Name :

Mr. Rajeev Kaul

Designation :

Director

Address :

No.203 Vaswani Tranquil, 43 Munnekolal Kundanahalli Gate, Bangalore – 560037, Karnataka, India

Date of Birth/Age :

18.11.1971

Date of Appointment :

02.11.2011

DIN No.:

01468590

 

 

 

 

 

 

 

 

KEY EXECUTIVES

 

Name :

Mr. Ravi Hugar

Designation :

Company Secretary

Date of Appointment :

09.05.2008

DIN No. :

ACLPH2883D

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 15.05.2013

 

Names of Shareholders

 

No. of Shares

 

 

 

Ajit Arvind Prabhu

 

50

Ajay Arvind Prabhu

 

100

Jagadish ShivaputrappaMelligeri

 

50

Melligeri Private Trust(Through IL and FS Trust Company Limited), India

 

15947268

Prabhu Private Trust (Through IL and FS Trust Company Limited), India

 

21797267

Avija Investments Inc. (Formerly QMSEZ Inc.), Cayman Cayman Islands

 

9207209

Melligeri Private Family Foundation(Through IL and FS Trust Company Limited), India

 

15649374

Anasuya Melligeri

 

32400100

Appanna Patil

 

100

Avija Investments Mauritius Private Limited, Mauritius

 

8733885

 

 

 

                                                                                                    Total

 

103735403

 

 

 

As on 15.05.2013

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

17.30

Directors or relatives of directors

 

31.23

Other

 

51.47

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and trading of aerospace, automotive, oil, gas and other industrial components.

 

 

Products :

Product or Services

ITC Code

Machined Parts

88039000

 

PRODUCTION STATUS      (31.03.2012)   

 

Particulars

Unit

Installed Capacity

Actual Production

 

 

 

 

Machine Parts

Nos.

1751054

1651663

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :
  • The Federal Bank Limited., 14, Sun Flower Apartments, 3rd Gate, Khanapur, Road, Tilakwadi, Belgaum- 590006, Karnataka, India
  • State Bank of India, Industrial Finance Branch, 61, Residency Road, Bangalore – 560025, Karnataka, India

 

 

                                                                                          Rs. In Millions

Facilities :

SECURED LOAN

31.03.2013

31.03.2012

LONG TERM BORROWINGS

 

 

Term Loans from Bank

0.000

258.783

 

 

 

SHORT TERM BORROWINGS

 

 

Cash credit from Bank

199.386

192.488

 

 

 

                                           Total

199.386

451.271

 

Banking Relations :

 

 

 

Auditors :

 

Name :

S R Batliboi and Associates

 

Chartered Accountants

Address :

13th Floor, UB City Canberra Block, No.24, Vittal Mallya Road, Bangalore- 560001, Karnataka, India.

PAN No. :

AABFS3421N

 

 

Subsidiaries :
  • Aerospace Manufacturing Holdings Private Limited, India
  • Quest Global Automotive Manufacturing Private Limited, India
  • Quest Machining and Manufacturing LLC, USA

 

 

 

CAPITAL STRUCTURE

 

After 15.05.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

110000000

Equity Shares

Rs. 10/- each

Rs. 1100.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

103735403

Equity Shares

Rs. 10/- each

Rs. 1037.354 Millions

 

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

110000000

Equity Shares

Rs. 10/- each

Rs. 1100.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

62601518

Equity Shares

Rs. 10/- each

Rs. 626.015 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

626.015

462.949

318.947

(b) Reserves & Surplus

(277.808)

(306.819)

(193.369)

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

411.339

7.051

57.177

Total Shareholders’ Funds (1) + (2)

759.546

163.181

182.755

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

258.783

212.443

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.000

258.783

212.443

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

199.386

192.488

157.967

(b) Trade payables

100.540

108.047

110.116

(c) Other current liabilities

15.984

144.556

177.739

(d) Short-term provisions

6.184

15.004

5.666

Total Current Liabilities (4)

322.094

460.095

451.488

 

 

 

 

TOTAL

1081.640

882.059

846.686

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

361.230

450.338

468.576

(ii) Intangible Assets

4.202

5.352

8.651

(iii) Capital work-in-progress

3.823

0.000

0.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

93.465

65.794

32.862

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

284.656

43.285

53.163

(e) Other Non-current assets

0.345

0.351

12.501

Total Non-Current Assets

747.721

565.120

575.753

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

148.157

115.547

85.187

(c) Trade receivables

93.152

141.454

126.675

(d) Cash and cash equivalents

32.880

4.058

3.421

(e) Short-term loans and advances

59.668

54.838

55.105

(f) Other current assets

0.062

1.042

0.545

Total Current Assets

333.919

316.939

270.933

 

 

 

 

TOTAL

1081.640

882.059

846.686

 

                                            

                                                                 PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

 

 

 

 

 

 

SALES

 

 

 

 

Income

621.287

476.459

 

 

 

Other Income

12.350

4.500

 

 

 

TOTAL                                     (A)

633.637

480.959

393.859

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Office Expenses

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                     (B)

440.975

452.672

521.998

(Including Financial and Depreciation Expenses)

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

192.662

28.287

 

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

82.079

65.558

 

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

110.583

(37.271)

 

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

81.572

76.179

 

 

 

 

 

 

 

PROFIT/(LOSS) BEFORE TAX (E-F)                              (G)

29.011

(113.450)

(128.138)

 

 

 

 

 

Less

TAX                                                                  (I)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/(LOSS) AFTER TAX (G-I)                     (J)

29.011

(113.450)

(128.138)

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.46

--

--

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
4.58

(23.59)

(32.53)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.67

(23.81)

--

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
4.15

(14.68)

(17.13)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.04

(0.70)

(0.70)

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.26

2.77

2.03

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.04

0.69

0.60

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

 

NOTE : Registered Office of the company has been shifted from No.13, 21/2 Bhattarhalli, 14th KM, Old Madras Road, Bangalore,  Karnataka- 560049, India to the present address w.e.f. 23.04.2013

 

 

CORPORATE INFORMATION

 

Subject is incorporated on March 27, 2000 as a wholly owned subsidiary of Quality Engineering and Software Technologies Private Limited (Quest India). The Company is engaged in rendering training Services in engineering design software till March 31, 2006. Effective April 1, 2006, the Company has ceased rendering training services and started the business of machining and manufacturing of precision engineering products in the industries of automotive, aerospace, oil and gas.

 

On July 19, 2006, the Company obtained approval from Office of the Assistant Commissioner of Customs, Government of India to carry on the operations relating to manufacture and export of automotive machined parts under 100% Export Oriented Unit.

Commercial operation commenced in May 2007.

 

On August, 2008, the Company obtained approval from Office of the Cochin Special Economic Zone Assistant Commissioner of Customs, Government of India to carry on the operations relating to manufacture of aerospace, oil, gas and other machined parts under SEZ unit, commercial operation commenced in April 14, 2010.

 

 

OPERATIONS AND FUTURE PROSPECTS

 

The directors take this opportunity to enlighten the members of the Company on the operation of the company, its future prospects and also provide an overview of the Companys performance during the Financial Year under review.

 

During the year Company reported an overall Profit of Rs.29.011 Millions.  However, the profit position of the Company is considering both the Continuing and Discontinuing Operation of the Company for the period.

 

Comparing the financial position of the Company from the perspective of Continuing Operations there has been an increase in the loss incurred by the Company by approximately 1.96 percent, over the losses incurred in the previous financial year. However it shall be pertinent to note that revenue earned by the Company has increased by approximately 31.75% over the revenue earned during the previous Financial Year. The increase in the loss for the period under review owes primarily to increase in the cost of Depreciation, Amortization, and Finance cost incurred by the Company.

 

Further the management of the Company wish to assure the Directors of the Company that the future prospects of the industry are promising and soon the company shall start reporting profits. Furthermore the management of the Company is positively and confident that soon the company shall display considerable growth.

 

Directors of the Company are continuously looking for avenues for further growth of the Company and are evaluating various areas where it can fetch good returns for the company, including evaluating and implementing measures for reduction of costs and increase in profitability.

 

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.67.70

UK Pound

1

  Rs.105.14

Euro

1

Rs.90.03

 

 

INFORMATION DETAILS

 

Report Prepared by :

NKT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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

 

--

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.