MIRA INFORM REPORT

 

 

Report Date :

25.01.2014

 

IDENTIFICATION DETAILS

 

Name :

AHMEDNAGAR FORGINGS LIMITED

 

 

Registered Office :

Gate No. 614,  Village Kurulikhed, Pune - 410501, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

21.03.1977

 

 

Com. Reg. No.:

11-019569

 

 

Capital Investment / Paid-up Capital :

Rs.367.500 Millions

 

 

CIN No.:

[Company Identification No.]

L28910MH1977PLC019569

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

 PNEA05185F

 

 

PAN No.:

[Permanent Account No.]

AACCA3454H

 

 

Legal Form :

A Public Limited Liability Company.  The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacture and Distribution of High-Precision Closed Die Steel Forgings and Auto Components for the Automotive, Defence and Railway Industries.

 

 

No. of Employees :

Information denied by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 29530000

 

 

Status :

Regular

 

 

Payment Behaviour :

Good

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having fine track record.

 

Management of the company has failed to file its financial for the year 2013 with the government department.

 

As per previous year financial i.e. 2012, financial position of the company appears to be sound. Performance capacity of the company seems to be good.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered good for normal 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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities = AA-

Rating Explanation

High degree of safety and very low credit risk

Date

16.04.2013

 

Rating Agency Name

CARE

Rating

Short term Bank Facilities = A1+

Rating Explanation

Strong degree of safety and carry lowest credit risk

Date

16.04.2013

 

 

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.

 

INFORMATION DENIED

 

Management Non Co-Operative (Tel No.: 91-20-66031188)

 

 

LOCATIONS

 

Registered Office :

Gate No. 614,  Village Kurulikhed, Pune - 410501, Maharashtra, India

Tel. No.:

91-20-66031188

Fax No.:

Not Available

E-Mail :

aflimited@yahoo.com

Website :

http://www.amtek.com

 

 

Head Office :

Office No.604, 6th Floor, The Great Eastern Plaza, Opposite Gunjan Theatre, Airport Road, Yerawada, Pune-411006, Maharashtra, India 

 

 

Works :

Located At :

 

·         D 95, MIDC Area, Manmad Road, P.O. Box-2, Ahmednagar - 414111, Maharashtra, India

·         Chakan, District Pune, Maharashtra, India

·         Kuruli, District Pune, Maharashtra, India

·         Nalagarh, District Solan, Himachal Pradesh, India

 

 

DIRECTORS

 

As on 30.06.2012

 

Name :

Mr. Arvind Dham

Designation :

Chairman

 

 

Name :

Mr. S. Rajagopalan

Designation :

Whole Time Director

 

 

Name :

Mr. D. S. Malik

Designation :

Director

 

 

Name :

Mr. S. E. Krishnan

Designation :

Director

 

 

Name :

Mr. B. Lugani

Designation :

Director

 

 

Name :

Mr. Gautam Malhotra

Designation :

Director

 

 

Name :

Mr. Vivek Kumar Agarwal

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Ms. Swati Ahuja

Designation :

Company Secretary

 

 

Name :

Mr. P T Garwadkar

Designation :

Accounts Manager

 

 

SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

23804492

64.77

http://www.bseindia.com/include/images/clear.gifSub Total

23804492

64.77

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

23804492

64.77

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

3134217

8.53

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

208066

0.57

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

3526974

9.60

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

600

0.00

http://www.bseindia.com/include/images/clear.gifForeign Financial Institutions / Banks

600

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

6869857

18.69

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

2047569

5.57

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 millions

2680762

7.29

Individual shareholders holding nominal share capital in excess of Rs.0.100 millions

1006641

2.74

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

340679

0.93

http://www.bseindia.com/include/images/clear.gifClearing Members

19593

0.05

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

62483

0.17

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

257853

0.70

http://www.bseindia.com/include/images/clear.gifTrusts

750

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

6075651

16.53

Total Public shareholding (B)

12945508

35.23

Total (A)+(B)

36750000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

36750000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Distribution of High-Precision Closed Die Steel Forgings and Auto Components for the Automotive, Defence and Railway Industries.

 

 

Products :

Product Description

ITC Code

Die Steel Forgings

7326

 

 

PRODUCTION STATUS (As on 30.06.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Steel Forgings

MT

225000

225000

112162

 

 

GENERAL INFORMATION

 

Suppliers :

 

 

 

Customers :

·         Hero Honda

·         TATA

·         Toyota

·         Yamaha

·         TVS

·         Ashok Leyland

·         Swaraj Mazda

·         Diesel Locomotive Works

·         Diesel Loco Modernisation Works

·         Timken

·         Volvo

 

 

No. of Employees :

Information denied by the management

 

 

Bankers :

·         Andhra Bank

·         Karur Vysya Bank Limited

·         IDBI Bank Limited

 

 

Facilities :

SECURED LOANS

30.06.2012

Rs. In Millions

30.06.2011

Rs. In Millions

Long Term Borrowings

 

 

Term Loan

 

 

– From Bank/Financial Institutions

3372.922

3927.146

Short Term Borrowings

 

 

From Banks Financial Institutions

1960.113

901.936

Total

5333.035

4829.082

 

Notes

 

Long Term Borrowings

 

Term debts from Financial Institutions/Banks are secured by way of first mortgage of company’s all immovable properties ranking pari passu interest and hypothecation of whole of the company’s movable properties including plant and machinery, machinery spares, tools and accessories save and book debts) present and future, subject to prior charges created/to be created in favour of the company’s bankers on inventories, book debts and other specified movables for securing the borrowing for working capital requirements and loans under EFS/HP/Lease schemes if any securing the borrowing for working capital requirements and loans under EFS/HP/Lease schemes if any are secured by way of charge on the specified assets financed under the scheme.

 

Maturity Profile of Secured Term Loans classified as Long Term Borrowings is set out below:

 

Year Amount

Rs. In Millions

2013-14

329.600

2014-15

508.300

2015-16

508.300

2016-17

677.000

2017-18

677.000

2018-19

677.000

 

Short Term Borrowings

 

Short Term Borrowings are secured by hypothecation of raw material, semi-finished goods, stock in process, consumable stores and book debts of the company

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Manoj Mohan and Associates

Chartered Accountants

 

 

Holding Company :

·         Amtek Auto Limited

 

 

Joint Venture of Holding Company :

·         Amtek Tekfor Automotive Limited

·         MPT Amtek Automotive (India) Limited

·         SMI Amtek Crankshafts Private Limited

 

 

CAPITAL STRUCTURE

 

As on 30.06.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

40000000

Equity Shares

Rs.10/- each

Rs.400.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

36750000

Equity Shares

Rs.10/- each

Rs.367.500 Millions

           

Shares Held By Holding Company

 

Name of Shareholder

Number of Shares

% holding

 

 

 

Amtek Auto Limited

20196665

54.96%

 

Reconciliation of the number of shares

 

Equity Shares

Number of Shares

Rs. In Millions

 

 

 

Shares outstanding at the beginning of the year

36750000

367.500

 

Name of shareholders holding more than 5% of equity shares

 

Name of Shareholder

Number of Shares

% holding

Amtek Auto Limited

20196665

54.96%

Warhol Limited

3456898

9.41%

Asia Investment Corporation Mauritius Limited

2201390

5.99%


FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

30.06.2012

30.06.2011

I.        EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

367.500

367.500

(b) Reserves & Surplus

 

7015.586

5849.569

(c) Money received against share warrants

 

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

 

0.000

0.000

Total Shareholders’ Funds (1) + (2)

 

7383.086

6217.069

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

 

4485.422

3927.146

(b) Deferred tax liabilities (Net)

 

1044.099

972.961

(c) Other long term liabilities

 

120.295

133.627

(d) long-term provisions

 

30.219

29.220

Total Non-current Liabilities (3)

 

5680.035

5062.954

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

1960.113

901.936

(b) Trade payables

 

959.667

616.180

(c) Other current liabilities

 

1701.475

1677.411

(d) Short-term provisions

 

99.576

87.135

Total Current Liabilities (4)

 

4720.831

3282.662

 

 

 

 

TOTAL

 

17783.952

14562.685

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

9679.180

9323.787

(ii) Intangible Assets

 

0.000

0.000

(iii) Capital work-in-progress

 

454.289

189.656

(iv) Intangible assets under development

 

0.000

0.000

(b) Non-current Investments

 

9.285

9.285

(c) Deferred tax assets (net)

 

0.000

0.000

(d)  Long-term Loan and Advances

 

911.784

19.368

(e) Other Non-current assets

 

0.000

0.000

Total Non-Current Assets

 

11054.538

9542.096

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

0.000

0.000

(b) Inventories

 

2637.129

2137.784

(c) Trade receivables

 

2826.822

2248.247

(d) Cash and cash equivalents

 

743.724

468.390

(e) Short-term loans and advances

 

519.210

165.299

(f) Other current assets

 

2.529

0.869

Total Current Assets

 

6729.414

5020.589

 

 

 

 

TOTAL

 

17783.952

14562.685

 

 

SOURCES OF FUNDS

 

 

 

30.06.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

367.500

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

4853.440

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

5220.940

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

5369.038

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

5369.038

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

10589.978

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

8906.715

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

9.285

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

 

 

1753.598

 

Sundry Debtors

 

 

987.296

 

Cash & Bank Balances

 

 

470.858

 

Other Current Assets

 

 

2.410

 

Loans & Advances

 

 

364.472

Total Current Assets

 

 

3578.634

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

 

 

581.993

 

Other Current Liabilities

 

 

1236.956

 

Provisions

 

 

85.707

Total Current Liabilities

 

 

1904.656

Net Current Assets

 

 

1673.978

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

10589.978

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

30.06.2012

30.06.2011

30.06.2010

 

SALES

 

 

 

 

 

Income

11825.647

9081.584

 

 

Other Income

358.667

290.856

 

 

 

TOTAL                                     (A)

12184.314

9372.440

6653.291

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

7985.070

5775.137

 

 

Employee benefit expense

600.185

536.236

 

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(107.051)

(61.062)

 

 

 

Other expenses

731.084

647.005

 

 

 

TOTAL                                     (B)

9209.288

6897.316

4890.166

 

 

 

 

 

Less

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

2975.026

2475.124

1763.125

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

648.460

452.303

388.634

 

 

 

 

 

 

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

2326.566

2022.821

1374.491

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

612.951

499.507

433.204

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

1713.615

1523.314

941.287

 

 

 

 

 

Less

TAX                                                                  (H)

504.886

441.761

300.425

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1208.729

1081.553

640.862

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

979.558

483.429

330.415

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

1750.000

500.000

400.000

 

 

Dividend

36.750

73.500

73.500

 

 

Corporate Dividend Tax

5.962

11.924

12.207

 

 

Dividend and Tax of Previous Year

0.000

0.000

2.141

 

BALANCE CARRIED TO THE B/S

395.575

979.558

483.429

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

85.439

65.288

12.440

 

TOTAL EARNINGS

85.439

65.288

12.440

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Components & Spares Parts

1.531

1.148

0.861

 

TOTAL IMPORTS

1.531

1.148

0.861

 

 

 

 

 

 

Earnings Per Share (Rs.)

32.89

29.43

17.76

 

QUARTERLY RESULTS

 

PARTICULARS

30.09.2012

(Unaudited)

31.12.2012

(Unaudited)

31.03.2013

(Unaudited)

30.06.2013

(Unaudited)

30.09.2013

(Unaudited)

 

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

5th Quarter

Net Sales

3026.800

2898.800

3301.800

3625.200

4762.400

Total Expenditure

2224.800

2136.300

2372.200

2640.300

3682.000

PBIDT (Excluding Other Income)

802.000

762.500

929.600

984.900

1080.400

Other Income

0.000

0.000

0.000

0.000

0.000

Operating Profit

802.000

762.500

929.600

984.900

1080.400

Interest

184.400

160.900

209.300

226.900

228.800

Exceptional Items

0.000

0.000

0.000

0.000

0.000

PBDT

617.600

601.600

720.300

758.000

851.600

Depreciation

177.200

177.200

177.200

204.800

243.100

Profit Before Tax

440.400

424.400

543.100

553.200

608.500

Tax

132.100

127.300

162.900

166.000

248.400

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

308.300

297.100

380.200

387.200

360.100

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

308.300

297.100

380.200

387.200

360.100

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

9.92

11.54

9.63

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

14.49

16.77

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

9.89

10.61

7.54

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.23

0.25

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.87

0.78

1.03

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.43

1.53

1.88

 

 

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

Yes

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

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

Yes

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

Yes

 

UNSECURED LOAN:

 

Particulars

30.06.2012

Rs. In Millions

30.06.2011

Rs. In Millions

Long Term Borrowings

 

 

External Commercial Borrowings

1112.500

0.000

Total

1112.500

0.000

 

Notes:

 

Maturity Profile of External Commercial Borrowings is set out below:

 

Year Amount

Rs. In Millions

2013-14

278.100

2014-15

278.100

2015-16

278.100

2016-17

278.100

 

Interest Rate of External Commercial Borrowing is LIBOR+3%

 

BUSINESS SNAPSHOT

 

Ahmednagar Forgings is the second largest Forging Company in India with world class manufacturing facilities. These have significant locational advantages through their proximity to the automotive manufacturer hubs in the North and West regions of India. Ahmednagar Forgings has state-of-the-art facilities with presses, hammers, up setters and ring rolling machines. It has an extensive product portfolio with a range of highly engineered components including camshafts, connecting rods, crankshaft, crown wheel pinion and front axle beam. The Company supplies components for passenger cars, light and heavy commercial vehicles, 2/3 wheelers and tractors. It also manufactures components for non-auto industry such as the railways and specialty vehicles. The Company serves diversified client base. Ahmednagar Forgings is well positioned in the Indian auto component market. The Company is also backed by number of leading investors.

 

 

FINANCIAL PERFORMANCE

 

During the year, the total income of the Company was Rs.12184.300 Millions compared to the previous year of Rs.9372.400 Millions, recording an increase of 30% year on year. The Profit after Tax of the Company for the year was Rs.1208.700 Millions as compared to the previous year of Rs.1081.500 Millions, recording an increase of 11.76% year on year. The Company has a strong reserve position of Rs.7015.600 Millions.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY OVERVIEW

 

INDIAN ECONOMY

 

The economic environment in India has deteriorated significantly over the last 12 months. In response, the Government of India has introduced a series of wide ranging reforms to facilitate foreign investment, control the fiscal deficit and improve growth prospects. These have ranged from reducing subsidies on fuel to the opening up of previously protected sectors such as multi brand retailing and insurance to foreign direct investment.

 

However, whilst these policies are implemented, controlling inflation remains a high priority. For the year ended March 2013, WPI based inflation is expected to be 7.5%. This assumes continued near term staple food price inflation and the impact of the pass-through of market based oil prices into retail fuel prices. The increases in the indirect and services tax rates in the last budget are likely to add to the inflationary pressures.

 

Inflation is also the key driver for broader fiscal policy. The Reserve Bank of India has been unable to reduce interest rates meaningfully to stimulate consumption led growth. Ongoing volatility in the foreign exchange market and the depreciation of rupee has added additional complexity for policy makers.

 

As per RBI, India’s GDP growth is estimated to be 6.5% for the year ended March 2012, lower than the 8.4% growth in Year Ending (YE) March 2011 and 10% in YE March 2010. In YE March 2012, Index of Industrial Production (IIP) registered a growth of 2.8% compared to 8.2% in YE March 2011. Except Electricity which grew by 8.2%, the remaining two sectors – Mining and Manufacturing remained under pressure at (2.0)% and 2.9% y-o-y, respectively in YE March 2012. Despite a delayed monsoon season, the agriculture sector is expected to grow by 3.0%.

 

 

AUTOMOBILE INDUSTRY

 

The long term Auto industry dynamics in India are attractive from both end market and manufacturing platform perspectives. Consumer demand has been underpinned by favorable demographic changes, in particular by ongoing urbanization and an increasing middle class. Disposable incomes have also increased and correspondingly raised vehicle ownership levels. Over the last 5 years, relatively high GDP growth and industrial activity increased the demand for commercial vehicles. Current low levels of agricultural mechanization have resulted in strong tractor demand. India is expected to be the third largest automotive market by volumes in 2015 after US and China.

 

India has also been acknowledged by many global OEMs as one of the most strategically important emerging auto markets in the world. It is not only an attractive destination for OEMs as an end customer market but also an

increasingly critically important manufacturing base. For example, global majors Ford, GM and Renault-Nissan have all announced that they will set up their manufacturing facilities in India. These manufacturing facilities will be used to service both the domestic and export markets.

 

AUTO INDUSTRY: OUTLOOK

 

In addition to an overall declining GDP growth environment, near term demand pressures have had a significant impact on the Indian passenger vehicle sector. This has been a consequence of a number of different factors including increased excise duties and fuel prices, relatively high interest rates and generally weaker consumer sentiment. Production volumes are now effectively flat year-on-year at 1.1% for 1Q FY13. This is a significant decline compared to previous two quarters which grew by +9.0% and +10.2% year-on-year.

 

Industrial activity has also experienced sequential contraction and volatility. The commercial vehicle production has had its second sequential quarter of negative growth in Q1FY13 of (5.2)% and (3.8)% in the previous quarter. This is in context of a 22.9% growth in the last year. Although LCV production volumes have shown marginal growth, MCVs volumes have declined by over 15%. 2/3 Wheeler volumes have deteriorated rapidly during the last quarter from +7.9% to -3.0% in Q1 FY13. Despite these current challenges, there are some favorable dynamics: new product launches to stimulate demand, OEMs have re-balanced inventory levels, replacement market demand is improving and import costs reduced with a depreciating rupee.

 

Looking ahead more broadly, SIAM expects domestic passenger car sales to grow at 1% to 3% for the year ending March 2013 and commercial vehicles by 3% to 5% for the same period. Longer term the Indian auto component industry is expected to reach over US$ 110 billion by 2021, growing at a CAGR of 11%. For the year ended March 2013, the overall industry is expected to grow 5-7%. Tractor production volumes are expected to reach 710,000 by 2015-16, growing at a CAGR of 2.6%.

 

AHMEDNAGAR FORGINGS: STRATEGY AND OUTLOOK

 

Ahmednagar Forgings is the second largest forging axle beam and crankshaft manufacturing company in India with world class manufacturing facilities. The Company has state of the art facilities with presses, hammers, up setters and ring rolling machines. It has an extensive product portfolio with a range of highly engineered components including camshafts, connecting rods, crankshaft, crown wheel pinion and front axle beam.

 

In the context of a volatile global economy, auto sector demand continues to be dampened as end customers adopt a conservative approach to discretionary spending. Given this ongoing uncertainty, Ahmednagar Forgings is cautious on the near term market but remains optimally positioned to capitalize on its technology and product design capabilities. India is an attractive central hub for OEM global exports and a world class manufacturing base. Continuous investments within India from major OEMs will significantly enhance mid to long term prospects of the domestic auto industry. Over the years, they continue to successfully execute their strategy of expanding the Non-Auto business across the group.

 

Ahmednagar Forgings is confident of achieving an overall higher growth than the industry norm through its focus on new product introductions, addition of significant new contracts during the past year and continued consolidation in the component industry. Management is focused on achieving operating excellence by reinforcing lean manufacturing and quality improvement programs across all production facilities. This will result in further enhancing utilization levels and productivity improvements. The Company has a long track record of successfully partnering with its high profile customer base, which is essential for managing its business going forward.

 

 

SEGMENT WISE PERFORMANCE

 

The Company deals in only one segment i.e. Automotive Components. Therefore, it is not required to give segment wise performance.

 

 

DISCUSSION ON FINANCIAL PERFORMANCE

 

During the year, the Revenue of the Company was Rs.12184.300 Millions compared to the previous year of Rs.9372.400 Millions, recording an increase of 30% year on year. The Gross profit before Interest, Depreciation and Taxation has increased to Rs.2975.000 Millions as compared to the previous year of Rs.2475.100 Millions.

 

Profit after Tax of the Company for the year was Rs.1208.700 Millions as compared to the previous year of Rs.1081.500 Millions, recording an increase of 11.76% year on year.

 

The basic and diluted EPS of the Company for the fiscal year 2011-2012 is Rs.32.89.

 

For the year 2012, the Board of Directors has recommended a dividend of Rs.1/- per share i.e 10% of the face value of Equity Share of Rs.10/- each.

 

During Financial Year 2011-2012, all the manufacturing facilities units have been operated in accordance to management’s satisfaction.

 

UNAUDITED FINANCIAL RESULTS FOR THE THREE     QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER 2013

 (Rs. In Millions)

Particulars

Quarter Ended

( Unaudited)

 

15 Months Ended (Unaudited)

 

30.09.2013

30.06.2013

30.09.2012

30.09.2013

1. Income from operations

 

 

 

 

a) Net sales/ Income from operation (net of excise duty)

4630.700

3357.900

2663.500

16457.800

b) Other operating income

131.700

267.300

235.300

1157.200

Total income from Operations(net)

4762.400

3625.200

2898.800

17615.000

2.Expenditure

 

 

 

 

a) Cost of material consumed

3296.300

2292.100

1746.200

11189.800

b) Purchases of stock in trade

0.000

0.000

0.000

0.000

c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(61.900)

(62.000)

29.700

(74.400)

d) Employees benefit expenses

206.400

208.600

176.900

957.400

e) Depreciation and amortization expenses

243.100

204.800

177.200

979.500

f) Other expenditure

241.200

201.600

183.500

982.800

Total expenses

3925.100

2845.100

2313.500

14035.100

3. Profit from operations before other income and financial costs

837.300

780.100

585.300

3579.900

4. Other income

0.000

0.000

0.000

0.000

5. Profit from ordinary activities before finance costs

837.300

780.100

585.000

3579.900

6. Finance costs

228.800

228.900

160.900

1010.300

7. Net profit/(loss) from ordinary activities after finance costs but before exceptional items

608.500

553.200

424.400

2569.600

8. Exceptional item

0.000

0.000

0.000

0.000

9. Profit from ordinary activities before tax Expense:

608.500

553.200

424.400

2569.600

10.Tax expenses

248.400

166.000

127.300

836.700

11.Net Profit / (Loss) from ordinary activities after tax (9-10)

360.100

387.200

297.100

1732.900

12.Extraordinary Items (net of tax expense)

0.000

0.000

0.0000

0.000

13.Net Profit / (Loss) for the period (11 -12)

360.100

387.200

297.100

1732.900

14.Paid-up equity share capital (Nominal value Re. 1/- per share)

367.500

367.500

367.500

367.500

15. Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year

 

 

 

 

16.i) Earnings per share (before extraordinary items) of Re. 1/- each) (not annualised):

 

 

 

 

(a) Basic and diluted

9.80

10.54

8.08

47.15

ii) Earnings per share (after extraordinary items)

 

 

 

 

(a) Basic and diluted

9.80

10.54

8.08

47.15

 

 

Particulars

Quarter Ended

( Unaudited)

 

15 Months Ended (Unaudited)

 

30.09.2013

30.06.2013

30.09.2012

30.09.2013

A. Particulars of shareholding

 

 

 

 

1. Public Shareholding

 

 

 

 

- Number of shares

12945508

12945508

16553335

12945508

- Percentage of shareholding

35.23

35.23

45.04

35.23

2. Promoters and Promoters group Shareholding-

 

 

 

 

a) Pledged /Encumbered

 

 

 

 

Number of shares

Nil

Nil

Nil

Nil

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

Nil

Nil

Nil

Nil

Percentage of shares (as a % of total share capital of the company)

Nil

Nil

Nil

Nil

 

 

 

 

 

b) Non  Encumbered

 

 

 

 

Number of shares

23804492

23804492

20196665

23804492

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100.00%

100.00%

100.000%

100.00%

Percentage of shares (as a % of total share capital of the company)

64.77%

64.77%

54.96%

64.77%

 

 

 

 

 

B. Investor Complaints

For the quarter ended

Pending at the beginning of the quarter

0

Receiving during the quarter

2

Disposed of during the quarter

2

Remaining unreserved at the end of the quarter

0

 

Notes:

 

1)       The above results were reviewed by the Audit Committee and taken on record by the Board of Directors of the Company at its Meeting held on Saturday 26th October, 2013. The results for the quarter and half year ended 30th September, 2013 have been reviewed by the Statutory Auditors of the Company.

 

2)       The Company obtained approval from the shareholders, by way of Postal Ballot process on 21st June, 2013 and from SEBI on 2nd July, 2013 to buy back the shares of the Company at a price not exceeding Rs. 90/- per share of upto a maximum of 7500000, fully paid up equity shares of Re. 1/- each Persuent to this the Company has bought back 6388944 shares upto 30th September, 2013. The amount utilized for buy back is Rs.504.676 Millions. Out of the said equity shares bought back, 44,919 equity shares have been extinguished post 30th September 2013

 

3)       The Company has exposure to National Spot Exchange Limited (NSEL) of Rs.13.600 Millions with respect to the funded positions. NSEL has not been able to adheretoits payment obligations over the past few months. The Group has perused legal action against NSEL and others by filing writ petition in Bombay High courtand Criminal complaint in Economic Offences Wing (EOW). Pending final outcome which is uncertain, the Company has provided for an amount of Rs.4.521 Millions in respect of its funded positions for the quarter and half year ending 30th September 2013 which is disclosed under the head “Exceptional items”.

 

4)       CRISIL has re-affirmed the rating of 'CRISILA1+' (pronounced' CRISIL Aone Plus') to the Short Term Debt Programme of the company for Rs.1.5billion. ICRA has re-affirmed the rating of “PP-MLD[ICRA]AA-“ (pronounced 'CRISIL double A minus rating with Stable Outlook') to the Long Term Debt Programme of the company for Rs.250.000 Millions.

 

5)        The Board of directors at its meeting held on October 26, 2013 has declared an interim dividend of Re.1/-per equity share (On face value of Re.1/-each equity share) for the financial year 2013-14.

 

6)       The Company is engaged in single segment of financing and other activities as defined in AS-17, hence segment reporting is not applicable to the Company.

 

7)       The previous financial quarter / period ended figures have been regrouped/rearranged wherever necessary to make them comparable.

 

 

STANDALONE STATEMENT OF ASSTES AND LIABILITIES AS ON 30.09.2013

Rs. In Millions

 

SOURCES OF FUNDS

 

 

 

30.09.2013

Unaudited

I.         EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

367.500

(b) Reserves & Surplus

 

 

8705.700

Sub-total Shareholders’

 

 

9073.200

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

 

 

 

 

(3) Non-current liabilities

 

 

 

(a) long-term borrowings

 

 

16771.100

(b) Deferred tax liabilities (Net)

 

 

1450.300

(c) Other long term liabilities

 

 

1257.400

(d) long-term provisions

 

 

44.000

Sub-total of Non-Current liabilities

 

 

19522.800

 

 

 

 

(4) Current liabilities

 

 

 

(a) Short term borrowings

 

 

2502.100

(b) Trade payables

 

 

933.700

(c) Other current liabilities

 

 

2711.300

(d) Short-term provisions

 

 

198.100

Sub-total of Current liabilities

 

 

6345.200

 

 

 

 

TOTAL

 

 

34941.200

 

 

 

 

II.       ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

26990.100

(b) Good will on pursuance of consideration

 

 

0.000

(c) other current liabilities

 

 

9.200

(e) Long term loans and advances

 

 

35.800

Sub-total of Non-Current Assets

 

 

27035.100

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.200

(b) Inventories

 

 

3016.300

(c) Trade receivables

 

 

2638.000

(d) Cash and cash equivalents

 

 

2383.300

(e) Short-term loans and advances

 

 

462.300

(f) Other current assets

 

 

6.000

Sub-total of Current Assets

 

 

8506.100

 

 

 

 

TOTAL

 

 

35541.200

 

 

INDEX OF CHARGE:

 

Sr. No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10466617

20/11/2013

3,000,000,000.00

State Bank of India

Industrial Finance Branch, 14 Floor Jawahar Vyapar
Bhawan 1, Tolstoy Marg, New Delhi, Delhi - 110001, INDIA

B92140888

2

10455327

26/09/2013

1,500,000,000.00

CORPORATION BANK

HINDUSTAN TIMES BUILDING, 10TH FLOOR, 18/20,K.G M
ARG, NEW DELHI, Delhi - 110001, INDIA

B87648002

3

10455051

26/08/2013

1,000,000,000.00

Indian Bank

NEW DELHI, MAIN BRANCH, G-41, CONNAUGHT CIRCUS, NEW DELHI, Delhi - 110001, INDIA

B87551925

4

10414367

28/03/2013

1,000,000,000.00

STATE BANK OF BIKANER AND JAIPUR

BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA

B71658843

5

10414180

26/02/2013

1,000,000,000.00

STATE BANK OF HYDERBAD

Core-6, Scope Complex, Lodhi Road, New Delhi, Delhi - 110003, INDIA

B71574990

6

10413297

29/01/2013

1,080,000,000.00

Standard Chartered Bank

(Acting as an Security Agent) C D U, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI, Delhi - 110001, INDIA

B71292700

7

10402052

27/12/2012

1,500,000,000.00

UNITED BANK OF INDIA

CORPORATE FINANCE BRANCH, 106-109, ANSAL TOWER, 38, NEHRU PLACE,, NEW DELHI, Delhi - 110019, INDIA

B67733493

8

10395156

24/12/2012

2,000,000,000.00

STATE BANK OF PATIALA

COMMERCIAL BRANCH, CHANDRALOK BUILDING, 36, JANPATH , NEW DELHI, Delhi - 110001, INDIA

B65225922

9

10394360

21/12/2012

2,750,000,000.00

IDBI Bank Limited

Red Cross Society Building, 1, Red Cross Road, New Delhi, Delhi - 110001, INDIA

B64968795

10

10422884

20/09/2012

2,400,000,000.00

BANK OF MAHARASHTRA

A-13, RING ROAD , SOUTH EXTENSION, PART-1, NEW DELHI, Delhi - 110049, INDIA

B65933020

11

10368003

22/02/2013 *

2,500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Bldg., Ground Floor, 17 R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, INDIA

B70208053

12

10368075

31/07/2012

200,000,000.00

ICICI Bank Limited

ICICI Branch Tower, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra - 400051, INDIA

B44703692

13

10284080

28/03/2013 *

4,000,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate,, MUMBAI, Maharashtra - 400001, INDIA

B72983331

14

10275640

06/09/2012 *

1,750,000,000.00

IDBI Bank Limited

INDIAN RED CROSS SOCIETY BUILDING, 1, RED CROSS ROAD, NEW DELHI, Delhi - 110001, INDIA

B58661661

15

10163504

08/01/2010 *

500,000,000.00

BANK OF RAJASTHAN

82 JANPATH, NEW DELHI, Delhi - 110001, INDIA

A76713346

16

90092554

16/08/2013 *

1,490,000,000.00

The Karur Vysya Bank Limited

Central Processing Cell (Loans), 65/7, First Floor, New Delhi, Delhi - 110005, INDIA

B82956152

17

90088676

10/02/2012 *

3,330,000,000.00

ANDHRA BANK

M-35, CONNAUGHT CIRCUS, NEW DELHI, NEW DELHI, Delhi - 110001, INDIA

B33718669

18

90084774

17/04/1998 *

50,000,000.00

THE INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF INDIA
LIMITED

163; BACKBAY RECLAMATION, MUMBAI, Maharashtra - 400020, INDIA

-

19

90089753

12/10/1992 *

10,000,000.00

BANK OF BARODA

MIDC BRANCH, AHMEDNAGAR, Maharashtra - 414111, INDIA

-

11

10368003

22/02/2013 *

2,500,000,000.00

IDBI TRUSTEESHIP SERVICES LIMITED

Asian Bldg., Ground Floor, 17 R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, INDIA

B70208053

* Date of charge modification

 

FIXED ASSETS

 

·         Land

·         Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Computer

 

NEWS:

CRESTA FUND BUYS 18 LAKH SHARES OF AHMEDNAGAR FORGINGS

 

Jun 17, 2013

 

On June 14, 2013 Warhol Limited sold 900,000 shares of Ahmednagar Forgings at Rs.105 on the NSE and sold 900,000 shares at Rs.105 on the BSE.

 

However, Cresta Fund bought 900,000 at Rs.105 on the BSE and bought 900,000 shares at Rs.105 on the NSE.

In the previous trading session, the share closed at Rs.104.60, up Rs.0.85, or 0.82 percent. It has touched an intraday high of Rs.106.50 and an intraday low of Rs.102.45.

 

The share touched its 52-week high Rs.164.10 and 52-week low Rs.95.15 on 26 December, 2012 and 29 April, 2013, respectively. Currently, it is trading 36.26 percent below its 52-week high and 9.93 percent above its 52-week low. Market capitalization stands at Rs.3844.100 Millions.

 

The company's trailing 12-month (TTM) EPS was at Rs.27.63 per share. (Mar, 2013). The stock's price-to-earnings (P/E) ratio was 3.79. The latest book value of the company is Rs.200.90 per share. At current value, the price-to-book value of the company was 0.52. The dividend yield of the company was 0.96 percent.

 

 

WARHOL SELLS 1.466 MILLIONS SHARES OF AHMEDNAGAR FORGINGS

 

Jun 19, 2013

 

On June 18, 2013 Cresta Fund Limited bought 732424 shares of Ahmednagar Forgings at Rs.105 on the BSE and bought 731586 shares at Rs.105 on the NSE.

 

However, Warhol Limited sold 733449 shares at Rs.105 on the BSE and sold 733449 shares at Rs.105 on the NSE.

In the previous trading session, the share closed at Rs.108.45, up Rs.1.95, or 1.83 percent. It has touched an intraday high of Rs.109.50 and an intraday low of Rs.104.70.

 

The share touched its 52-week high Rs.164.10 and 52-week low Rs.95.15 on 26 December, 2012 and 29 April, 2013, respectively. Currently, it is trading 33.91 percent below its 52-week high and 13.98 percent above its 52-week low. Market capitalization stands at Rs.3985.500 Millions.

 

 

 


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 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 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.62.18

UK Pound

1

Rs.103.38

Euro

1

Rs.85.09

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Report Prepared by :

VNT

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

6

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

63

 

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

 

 

 

 

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