MIRA
INFORM REPORT
|
Report Date : |
16.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
ARSHIYA RAIL INFRASTRUCTURE LIMITED |
|
|
|
|
Registered
Office : |
6th Floor, 'C' Wing, Twin Arcade, Military Road, Marol Maroshi, Andheri (East), Mumbai – 400059, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 (Profit and Loss Accounts) |
|
|
|
|
Date of
Incorporation : |
07.04.2008 |
|
|
|
|
Com. Reg. No.: |
11-180907 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.303.500 Millions (As on 31.03.2011) |
|
|
|
|
CIN No.: [Company Identification
No.] |
U45200MH2008PLC180907 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMA33413C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAGCA9648B |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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|
|
|
Line of Business
: |
The Subject is engaged in transportation of Containerised Rail
Operation and Related Services. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (13) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Arshiya International Limited’. It is an
established company having a moderate track record. There appears huge external borrowings recorded by the company. The
parent company is facing liquidity problem. It is also facing allegations of
financial irregularities. Business is active. Payment terms are slow and delayed. The company can be considered for business dealings on a safe and
secured 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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 : |
6th Floor, 'C' Wing, Twin Arcade, Military Road, Marol Maroshi, Andheri (East), Mumbai – 400059, Maharashtra, India |
|
Tel. No.: |
91-22-40485600 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
301 Ceejay House, Level 3, Shiv Sagar Estate, F-Block, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India |
|
Tel. No.: |
91-22-42305500/1/2 |
|
Fax No.: |
91-22-42305555 |
|
|
|
|
FTWZ Offices : |
Located at: · Maharashtra ·
Uttar Pradesh |
|
|
|
|
Forwarding Offices : |
Located at: · Gujarat ·
Karnataka |
|
|
|
|
Rail and Rail Infrastructure Offices : |
Located at: · New Delhi · Orissa · Tamilnadu ·
Gujarat |
DIRECTORS
As on: 17.09.2012
|
Name : |
Mr. Ajay Shankarlal Mittal |
|
Designation : |
Chairman |
|
Address : |
Mittal Bhavan, 62- A, Pedder Road, Mumbai - 400026, Maharashtra, India |
|
Date of Birth/Age : |
28.06.1965 |
|
Qualification : |
B.Com, MBA |
|
Date of Appointment : |
07.04.2008 |
|
DIN No.: |
00226355 |
|
|
|
|
Name : |
Mrs. Archana Ajay Mittal |
|
Designation : |
Director |
|
Address : |
Mittal Bhavan, 62- A, Pedder Road, Mumbai - 400026, Maharashtra, India |
|
Date of Birth/Age : |
14.04.1967 |
|
Qualification : |
B.A |
|
Date of Appointment : |
24.09.2010 |
|
DIN No.: |
00703208 |
|
|
|
|
Name : |
Mr. Ashish Bairagra |
|
Designation : |
Director |
|
Address : |
Flat No. 44, Sadhana Building, B Road, Churchagte, Mumabi – 400020,
Maharashtra, India |
|
Date of Birth/Age : |
10.02.1979 |
|
Qualification : |
C.A |
|
Date of Appointment : |
24.09.2010 |
|
DIN No.: |
00049591 |
|
|
|
|
Name : |
Mr. Rishabh Shah |
|
Designation : |
Director |
|
Address : |
7, Saranam, 7th Road, Prabhat Colony, Santacruz (East), Mumbai
– 400055, Maharashtra, India |
|
Date of Birth/Age : |
17.02.1971 |
|
Qualification : |
C.A |
|
Date of Appointment : |
24.09.2010 |
|
DIN No.: |
00694160 |
|
|
|
|
Name : |
Mr. Bishwajit Bijonendu Chakravarty |
|
Designation : |
Director |
|
Address : |
Flat 4, Nishant Lottge, Plot – 20, Sector-28, Vashi, Navi Mumbai -
400703, Maharashtra, India |
|
Date of Birth/Age : |
25.09.1955 |
|
Date of Appointment : |
13.08.2012 |
|
DIN No.: |
01962386 |
KEY EXECUTIVES
|
Name : |
Mr. Shubhendu Tewari |
|
Designation : |
Secretary |
|
Address : |
602, Sai Saman, Union Park, Chembur (East), Mumbai – 400071,
Maharashtra, India |
|
Date of Birth/Age : |
08.04.1972 |
|
Date of Appointment : |
01.07.2009 |
|
PAN No.: |
ACBPT2056N |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 17.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Arshiya International Limited, India |
|
30349400 |
|
Ajay Mittal |
|
100 |
|
Archana A Mittal |
|
100 |
|
V Shivkumar |
|
100 |
|
Sandesh R Chonkar |
|
100 |
|
Capt. Bishwajit B Chakarvarty |
|
100 |
|
Arshiya International Limited, India and V Shivkumar |
|
100 |
|
Arshiya Hong Kong Limited, Hong Kong |
|
2156704 |
|
|
|
|
|
Total |
|
32506704 |
Equity Share Break up (Percentage of Total Equity)
As on: 17.09.2012
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
6.60 |
|
Bodies corporate |
|
93.40 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Subject is engaged in transportation of Containerised Rail
Operation and Related Services. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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|
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|
Bankers : |
State Bank of India, Industrial Finance Branch, The Arcade, 2nd Floor, Cuffe Parade, World Trade Centre, Colaba, Mumbai - 400005, Maharashtra, India |
|||||||||||||||||||||
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|||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
SBICAP Trustee Company Limited, 202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai - 400005, Maharashtra, India |
|
|
|
|
Auditors : |
|
|
Name : |
Sheth Mehta Associates Chartered Accountants |
|
Address : |
701, Ganjawala Residency, Ganjawala Lane, Borivli (West), Mumbai – 40009, Maharashtra, India |
|
PAN No.: |
AAKFS4532K |
|
|
|
|
Holding Company (As
on 31.03.2011) : |
Arshiya International Limited CIN No.: L27320MH1981PLC024747 |
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|
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|
Enterprise owned or
significantly influenced by key management personnel or their relatives (As
on 31.03.2011) : |
Bhushan Steel Limited |
|
|
|
|
Subsidiaries (As on
31.03.2011) : |
· Arshiya Rail Siding and Infrastructure Limited ( w. e .f.. 10th February, 2010) · Arshiya Transport and Handling Limited (Ceased on 31-03-2011) |
|
|
|
|
Fellow Subsidiaries
(As on 31.03.2011) : |
· Arshiya Domestic Distripark Limited · Arshiya FTWZ Limited · Arshiya Supply Chain Management Private Limited · Cyberlog Technologies International Pte Limited, Singapore · Arshiya Hong Kong Limited · Arshiya International Singapore Pte Limited |
|
|
|
|
Associates (As on
31.03.2011) : |
· Arshiya Central Domestic Distripark Limited · Arshiya Eastern Domestic Distripark Limited · Arshiya Northern Domestic Distripark Limited · Arshiya Southern Domestic Distripark Limited · Arshiya Western Domestic Distripark Limited · Arshiya Central FTWZ Limited · Arshiya Eastern FTWZ Limited · Arshiya Northern FTWZ Limited · Arshiya Exim Trading Limited (Earlier Known as Arshiya Southern FTWZ Limited ) · Arshiya Western FTWZ Limited · Arshiya Logistics LLC, Oman (Ceased on 06th Dec 2010) · Arshiya Logistics LLC, Dubai · Arshiya Logistics LLC, Qatar (Ceased on 8th Jan 2011) · Cyberlog Technologies Hong Kong Limited · Cyberlog Technologies Inc. (USA) (Ceased on 31-03-2010) · Arshiya Technologies (India) Private Limited (Earlier Known as Cyberlog Technologies (India) Private Limited) (WEF 07-10-2010) · Cyberlog Technologies (UAE) FZE |
CAPITAL STRUCTURE
As on: 17.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.10/- each |
Rs.450.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
32506704 |
Equity Shares |
Rs.10/- each |
Rs.325.067 Millions |
|
|
|
|
|
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.10/- each |
Rs.450.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30350000 |
Equity Shares |
Rs.10/- each |
Rs.303.500 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
303.500 |
303.500 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
741.892 |
699.543 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1045.392 |
1003.043 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
3297.110 |
1866.518 |
|
|
2] Unsecured Loans |
|
1027.594 |
652.954 |
|
|
TOTAL BORROWING |
|
4324.704 |
2519.472 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
5370.096 |
3522.515 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
2901.266 |
2185.332 |
|
|
Capital work-in-progress |
|
1644.742 |
1072.465 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
150.531 |
0.220 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
0.000 |
0.000 |
|
|
Sundry Debtors |
|
474.122 |
184.201 |
|
|
Cash & Bank Balances |
|
192.079 |
75.988 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
322.867 |
107.381 |
|
Total
Current Assets |
|
989.068 |
367.570 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
260.228 |
84.971 |
|
|
Other Current Liabilities |
|
38.635 |
13.874 |
|
|
Provisions |
|
16.648 |
4.227 |
|
Total
Current Liabilities |
|
315.511 |
103.072 |
|
|
Net Current Assets |
|
673.557 |
264.498 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
5370.096 |
3522.515 |
|
Balance Sheet for the Year 2012 is not available, only Profit and Loss
Account is available
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2706.807 |
1692.379 |
482.291 |
|
|
|
Other Income |
10.935 |
3.253 |
1.046 |
|
|
|
TOTAL (A) |
2717.742 |
1695.632 |
483.337 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee benefit expense |
82.143 |
46.650 |
|
|
|
|
Amortisation expense |
13.929 |
0.000 |
|
|
|
|
Other expenses |
2035.263 |
1260.632 |
|
|
|
|
TOTAL (B) |
2131.335 |
1307.282 |
359.783 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
586.407 |
388.350 |
123.554 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
380.375 |
232.962 |
82.286 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
206.032 |
155.388 |
41.268 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
129.082 |
102.498 |
36.947 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
76.950 |
52.890 |
4.321 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
15.396 |
10.541 |
0.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
61.554 |
42.349 |
3.621 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
48.259 |
5.910 |
2.289 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
48.259 |
5.910 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.99 |
1.40 |
0.12 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.26 |
2.50 |
0.75 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.84 |
3.13 |
0.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA |
1.36 |
0.17 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA |
0.05 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
NA |
4.14 |
2.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
NA |
3.13 |
3.57 |
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 |
No |
|
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:
The Registered Office of the company has been shifted from 3rd Floor,
Plot NO. 61, Road No. 13, M.I.D.C., Andheri (East), Mumbai – 400093,
Maharashtra, India to the present address w.e.f. 25.01.2013
UNSECURED LOAN
(Rs.
In Millions)
|
|
As on 31.03.2011 |
As on 31.03.2010 |
|
Other debt unsecured |
1027.594 |
652.954 |
|
|
|
|
|
Total |
1027.594 |
652.954 |
OPERATIONS: (As on:
31.03.2011)
The Company is Category I license holder from Ministry of Railways. Through the acquisition of this license, Arshiya Rail Infrastructure Limited (Rail vertical of Holding Company i.e. Arshiya International Limited ) has become a Private Containerized Train Operator (PCTO). The business of the Company is primarily transportation of domestic and EXIM cargo in containerized form through rail as the medium. In addition, it provides container handling services at the terminals/sidings and door to door services to offer clients a complete suite of rail related services. The Company provides a pan-India customized container rail freight and rail terminal services and facilities. Specifically, it provides the full rail infrastructure assembly, including modern rakes, customized containers, sidings and pan-India connectivity. The comprehensive setup enables the Company capability to provide quick, economical and efficient handling and evacuation of large scale cargo from ports, client sidings, Domestic Distriparks, and FTWZs.
The Company is currently the fastest growing Private Container Train Operator (PCTO) in India possessing [15] rakes, [3,400] containers and a rail terminal siding at Khurja (New Delhi). It is ranked 2nd in terms of number of rakes amongst all the PCTOs and stands 1st in the domestic cargo segment. With Arshiyas fully integrated business model, FTWZs and Domestic Distriparks serve as cargo consolidation and aggregation hubs ensuring captive cargo for ARIL, leading to increased load factors and rake utilization rates. Further each FTWZ is designed to include dedicated and proprietary rail connectivity to both East and West freight corridors. Needless to state that rail connections improve efficiency by permitting faster aggregation and movement of goods whilst assisting the substitution of cargo transportation from road to rail.
Contingent
Liabilities not provided for:
(a) The Company has procured certain Capital goods under EPCG Scheme at concessional rate of duty. As on 31st March, 2011, the Company is contingently liable to pay differential Custom Duty of Rs. 284.202 Millions (Previous Year Rs. 138.482 Millions) along with interest thereon on such procurement. In view of performance in 2010-11 and future projections, the management is hopeful of completing the Export Obligation within stipulated time and expect no cash outflow on this account.
(b) Bank Guarantees in lieu of security deposit Rs. 2.500 Millions (Previous Year Rs. 2.500 Millions).
(c) Amount outstanding towards Letters of Credit given to bank Rs. 28.344 Millions (Previous Year Rs NIL) for procurement of capital goods. Rs 9.000 Millions (Previous Year Rs NIL) given to Indian Railways towards standby arrangement for Electronic Payment of haulage etc.
(d) Claim against the company not acknowledged as debts Rs. 4.563 m Millions.
FIXED ASSETS
Tangible Assets
· Land
· Building
· Factory Building
· Plant Machinery
· Factory Equipments
· Furniture and Fixtures
· Vehicles
· Leasehold Properties
· Livestock
· Railway Sidings
Intangible Assets
· Knowhow
· Goodwill
· Computer Software
· Patents Trademarks Design
· Licenses
AS PER WEBSITE DETAILS:
Press Release
ARSHIYA INTERNATIONAL
MAY SACK WORKERS AMID STRIKE
Wednesday, January 09
2013. 07 38 PM IST
Mumbai: Logistics firm Arshiya International Limited said it may sack employees amid a strike at the company.
The company also sought to clarify media recent reports in a statement released on Wednesday.
These are “misleading and not true,” it said. “Arshiya International Ltd has real assets that it has created in the west and north of India, including pan-India rail assets. All of these assets created by the company are operational and continue to remain operationally strong.”
The Mumbai-based company has sacked several senior employees since Saturday on shrinking orders, according to some newspaper reports.
“At least 200 employees in Panvel (near Mumbai) and 25 in Khurja (Uttar Pradesh) are on strike,” said a senior official of the company, who didn’t want to be identified.
The stock fell 19.97% to Rs.97.40 on BSE on Wednesday, while the benchmark Sensex lost 0.38%, or 75.93 points, to 19,666.59.
The Arshiya statement didn’t elaborate on the number of jobs that would be terminated or mention the strike.
ARSHIYA INTERNATIONAL
IN TALKS WITH BANKS TO RECAST DEBT: SOURCES
January 18, 2013
17:42 (IST)
Logistics and warehousing service provider Arshiya International, which is facing allegations of financial irregularities and has terminated the services of about 20 per cent of its workforce, is now in talks with its lenders to restructure about Rs. 25000.000 Millions in gross debt, including working capital loans, banking sources told NDTV Profit.
The company may also consider approaching the corporate debt restructuring cell
for the recast, the sources added.
SBI Caps has prepared a preliminary restructuring proposal for about Rs.
10400.000 Millions worth of loans, involving 12 bankers, after a joint lenders'
meeting last week with the company's top management. The company also has four
other NBFCs as non-CDR parties to the proposal, sources said.
Punjab National Bank, State Bank of India, UCO Bank, Oriental Bank of Commerce
and Axis Bank are among the lenders to the company.
"We are evaluating several options and cannot comment on whether we will
go for CDR," Ajay Mittal, managing director and founder of the company,
told NDTV Profit. "We are currently meeting our bankers to address all
issues and reassure them of all incorrect allegations recently made in the
media against the company. We are also planning to revoke pledged shares worth
about Rs. 990.000 Millions -- we have already made a payment of Rs. 300.000
Millions and will make the balance payment in the next 10 days."
Mr. Mittal has pledged nearly two-thirds of his 44.6 per cent stake in the
company to borrow Rs. 990.000 Millions.
The decision to raise more money comes nearly three days after Mr Mittal
decided to infuse an additional Rs. 420.000 Millions as part payment towards
warrants issued to him.
According to a filing with the Bombay Stock Exchange, the company's board is
slated to meet on January 19 to discuss the financial affairs and initiatives
to address these concerns. The board will also seek the appointment of
chartered accountants to independently investigate and submit a report on the
recent allegations.
ARSHIYA
INTERNATIONAL: ONE OF KOTAK’S TOP 5 PICKS FOR 2013, DOWN 50% IN 3 DAYS
Kotak had put this as one of the top picks of 2013 along
with ICICI Bank and Marico, even though the stock was exactly at the same level
as it was in December 2011, when the Sensex was 15,455, as compared to 19,664
now
We have often mentioned that securities analysts and fund managers are often blind
about corporate governance issues. Here is one more excellent example of that.
Kotak Securities picked Arshiya International as one of the top five stocks for
2013. This company which is largely unknown to the investing public was placed
in the august company of such blue chip stocks as ICICI Bank, Marico, Petronet
and Engineers India as one of the tops picks for 2013. Arshiya is into a
business called Foreign Trade & Warehousing Zone (FTWZ). Importers can
import and stock products in the FTWZ and draw their stocks as per their needs.
Kotak touted the stock as “unique business model, new in India, and adopted by
Arshiya. The company is also ramping up its container rail business which will
effectively complement its FTWZ business. The business model of Arshiya is
completely integrated and a one-stop-shop to cater to the point-to-point
logistics requirement of the customers”. Well argued by Kotak analysts as
usual, and backed by excel wizardry that would pinpoint the exact profit the
company would make five years later. But alas, instead, the stock is in a
downward spin. It hit the lower circuit for three days in a running including
today, crashing from Rs121.70 on 8th January to Rs70.20 today. Kotak has
promptly suspended its coverage of the stock—whatever that means. What went
wrong?
According to DNA newspaper, Arshiya is suffering from sharply reduced business, has sacked 290 employees and has not paid salaries since September. The disgruntled employees have also alleged financial irregularities. The sacked staff visited the company’s office on Tuesday and threatened the regular employees to stop working or face dire consequences. The police had to be called.
So, what does Kotak have to say about its chosen stock? According to Moneycontrol (http://www.moneycontrol.com/news/business/arshiya-down-20-for-2nd-day-kotak-suspends coverage_805825.html) Kotak said in a note to clients, “The stock has declined by 40% over the last 12 months, largely driven by slowing economic growth which has led to less than estimated growth in segments like FTWZ/Container rail and high debt position. Given the above and lack of clarity on the alleged wrongdoing by the management we are suspending coverage on the stock till clarity emerges.”
Clearly, either the brokerage is clueless about what is really going on inside the company (often analysts are) or it had some vested interest in putting Arshiya as one of top stocks of 2013. After all, economic growth did not slow down in the last two weeks to affect only this one company so badly. And to admit to recommending a stock which has problems of governance would be affect its credibility too badly.
After the stock was badly hit, the company organised a
concall where Samir Arora, the star Singapore-based fund manager, who lost a lot
of money betting on the software bubble in 2000-01, grilled the management as
did Pathik Gandhotra, partner of Don Capital. A lot of smart guys had bet on
Arshiya’s “unique business model.”
The promoters denied that there was any margin call from the bankers but, the way Arshiya stock has been hitting the lower circuit for three days in a row shows that there are indiscriminate sellers. Such indiscriminate sellers are often financiers.
Arshiya’s stock price has completely bucked the bull market of the last one year. While the Sensex was 15,455 on 30th December 2011 and is 19,664 now, a rise of 27%, Arshiya was Rs127.50 on 30th December 2011 and It was still stuck at Rs125 (on 4 January 2013) before the stock got hit. This alone should have alerted the smart analysts and fund managers.
MERRILL LYNCH SELLS
4.43 LK SHARES OF ARSHIYA INTERNATIONAL
Monday, January 28,
2013 at 07:53
On January 25, 2013 Merrill Lynch Capital Markets Espana S.A. SVB sold 443,000 shares of Arshiya International at Rs 40.12 on the NSE.
In the previous trading session, the share closed at Rs 38.70, down Rs 1.20, or 3.01%. It has touched a 52-week low of Rs 37.95.
The company's trailing 12-month (TTM) EPS was at Rs 4.29 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 9.02. The latest book value of the company is Rs 89.40 per share. At current value, the price-to-book value of the company was 0.43. The dividend yield of the company was 3.62%.
|
|
Deal Type |
Qty |
Deal Price |
|
Credit Suisse (Singapore) Limited A/C Credit Suisse (Singap |
Buy |
320,000 |
38.94 |
|
Crosseas Capital Services Private Limited |
Buy |
450,240 |
39.94 |
|
Crosseas Capital Services Private Limited |
Sell |
450,240 |
39.64 |
|
Crosseas Capital Services Private Limited |
Sell |
448,685 |
40.05 |
|
Crosseas Capital Services Private Limited |
Buy |
448,685 |
39.64 |
|
Gajanan Enterprises |
Buy |
999,830 |
38.17 |
|
Gajanan Enterprises |
Sell |
984,836 |
38.28 |
|
Gajanan Enterprises |
Buy |
719,078 |
38.14 |
|
Gajanan Enterprises |
Sell |
717,510 |
38.29 |
|
Handelsbankens Tillvaxtmarknadsfond |
Sell |
578,760 |
38.14 |
|
Merrill Lynch Capital Markets Espana S.A. Svb |
Sell |
443,000 |
40.12 |
|
Rahul Doshi |
Sell |
317,028 |
37.96 |
|
Rahul Doshi |
Buy |
317,028 |
37.94 |
|
Securities Trading Corporation Of India Limited |
Sell |
600,000 |
38.65 |
|
Sunil Capital Capital and Securities Private Limited |
Buy |
1,188,222 |
38.32 |
|
Sunil Capital Capital and Securities Private Limited |
Sell |
1,183,222 |
38.6 |
|
Swiss Finance Corporation (Mauritius) Limited |
Sell |
350,000 |
37.9 |
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 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 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.53.99 |
|
|
1 |
Rs.83.72 |
|
Euro |
1 |
Rs.72.09 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
|
TOTAL |
|
13 |
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.