MIRA
INFORM REPORT
|
Report Date : |
12.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
LGB FORGE LIMITED |
|
|
|
|
Registered
Office : |
No.6/16/13, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
07.06.2006 |
|
|
|
|
Com. Reg. No.: |
18-012830 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.150.002 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27310TZ2006PLC012830 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBL03539E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCL2012K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of forged and machined components. |
|
|
|
|
No. of Employees
: |
338 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (33) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 509000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was erstwhile a relatively small scale forging unit which was
demerged from its flagship entity LGB and was reconstituted as a separate company
w.e.f. April 1, 2008. It is an established company having moderate track
record. The company possesses a below average financial profile marked by
accumulated of losses as well as deterioration in its cash reserves during FY
14. Management has witnessed a dip in its sales volume, where as reported
a minimal profit with the help of which the company has profit with the help
of which the company has wiped off a part off its accumulated losses. The rating also take into considered the corporate guarantee extended
by the subject’s creditworthy flagship company LG Balkrishnan and Bros
Limited which will be duly invoked as per the terms in case there is default
in payment by the subject. Trade relations are fair. Business is active. Payment terms are
reported as slow but correct. In view of operational, managerial and financial support from LGB, the
subject can be considered for business dealings with caution. |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual
growth and compared with 4.5 % in the last fiscal year. However, the current
account deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic
product, in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year
before.A sharp fall in gold imports due to restrictions on overseas purchases
and muted import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A Term Loans (Structured Obligation) |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
September 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
A1 Short term non fund based (Structured
Obligation) |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
September 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 (91-422-2532325)
LOCATIONS
|
Registered Office/ Factory 1 : |
6/16/13, Krishnarayapuram Road, Ganapathy, Coimbatore-641006,
Tamilnadu, India |
|
Tel. No.: |
91-422-2532325 / 225 |
|
Fax No.: |
91-422-2532333 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 2 : |
Pilliar Kovil Street, Near Power House, Kondayam Palayam,
Kottaipalayam Post, Coimbatore-641110, Tamilnadu, India |
DIRECTORS
As on: 31.03.2014
|
Name : |
Mr. B. Vijayakumar |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
22.01.1953 |
|
Qualification : |
B. Sc. |
|
Date of Appointment : |
07.06.2006 |
|
DIN No.: |
00015583 |
|
|
|
|
Name : |
Mr. V. Rajvirdhan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. K.N.V. Ramani |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.10.1931 |
|
Qualification : |
M.A., B.L. |
|
Date of Appointment : |
09.01.2008 |
|
DIN No.: |
00007931 |
|
|
|
|
Name : |
Mr. P. Shanmugasundaram |
|
Designation : |
Director |
|
Date of Birth/Age : |
10.08.1948 |
|
Qualification : |
B. Com., LLB., FCA. |
|
Date of Appointment : |
04.04.2008 |
|
DIN No.: |
00119411 |
|
|
|
|
Name : |
Mr. P.V. Ramakrishnan |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.01.1959 |
|
Qualification : |
B.E. |
|
Date of Appointment : |
04.04.2008 |
|
DIN No.: |
00013441 |
|
|
|
|
Name : |
Mr. Rajiv Parthasarathy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harsha Lakshmikanth |
|
Designation : |
Director |
|
Date of Birth/Age : |
24.08.1977 |
|
Qualification : |
B.E., M.S. |
|
Date of Appointment : |
09.05.2008 |
|
DIN No.: |
02238793 |
|
|
|
|
Name : |
Mr. K. Karthik |
|
Designation : |
Whole time Director |
|
Date of Birth/Age : |
20.04.1975 |
|
Qualification : |
B.E., PGDFT, MPIB. |
|
Date of Appointment : |
30.01.2014 |
|
DIN No.: |
06846794 |
KEY EXECUTIVES
|
Name : |
Mr. B. Hariganesh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
43596215 |
29.06 |
|
|
53166395 |
35.44 |
|
|
96762610 |
64.51 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
96762610 |
64.51 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
16020 |
0.01 |
|
|
135960 |
0.09 |
|
|
4353107 |
2.90 |
|
|
4505087 |
3.00 |
|
|
|
|
|
|
1755219 |
1.17 |
|
|
|
|
|
|
24608255 |
16.41 |
|
|
18073642 |
12.05 |
|
|
4296738 |
2.86 |
|
|
21936 |
0.01 |
|
|
2543887 |
1.70 |
|
|
1418533 |
0.95 |
|
|
312382 |
0.21 |
|
|
48733854 |
32.49 |
|
Total Public
shareholding (B) |
53238941 |
35.49 |
|
Total (A)+(B) |
150001551 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
150001551 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of forged and machined components. |
GENERAL INFORMATION
|
No. of Employees : |
338 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Andhra Bank · Axis Bank Limited · Corporation Bank · ICICI Bank Limited ·
IDBI Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
Notes: LONG TERM BORROWINGS Rupee Term loan from ICICI Bank carries interest @ base rate plus 3.25% (i.e. 13.25 % p.a.), payable on monthly basis. The loan is repayable in 11 quarterly installments of Rs.25.000 Millions each. The loan is secured by way (a) hypothecation(first charge) of whole movable properties including its movable plant and machinery, machinery spares, tools and accessories and other movable asset (except current assets), both present and future located at Belagola Industrial Area, Hebbal village, Mysore (Hot forging unit),Pillaiappanpalayam, Coimbatore (Hot and Warm forging unit) and Kondayampalayam, Coimbatore(Cold forging unit); and (b) first charge by way of deposit of title deeds in respect of immovable properties situated at (i) Kariyampalayam Village, Pillaiappanpalayam, Coimbatore; and (ii) Hebbal Village, Kasaba Hobli, Mysore. Loan is further secured by corporate guarantee of M/s. L.G. Balakrishnan and Bros Limited. SHORT TERM
BORROWINGS Working Capital/ Cash Credit loan from Axis Bank carries interest @ 13.25% p.a and are secured by first pari passu charge on entire current assets and second pari passu charge on the entire movable fixed assets of the Company, both present and future. Working Capital/Cash Credit loan from Corporation Bank carries interest @ 14.85% p.a. and are secured by: (i) pari passu materials, first charge on entire stock of raw materials, work-in-process, finished goods including goods held for exports, stores and spares, book debts and other chargeable current assets of the Company; and (ii) pari passu second charge on the entire fixed assets of the Company. Working Capital/Cash Credit loan from ICICI Bank carries interest @ 13.00 % p.a. and are secured by first charge by way of hypothecation of the Company’s entire stock of raw materials, semi finished and finished goods, consumable stores and spares and such other movables including book debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari passu with other participating banks (viz., Andhra Bank, Corporation Bank, Axis bank). Working Capital/Cash Credit loan from IDBI bank carries interest @ 14.50% and are secured by pari passu first charge over the current assets of the Company. Collateral second pari passu charge over the fixed assets of the Company except those that are exclusively charged to term lenders. Working Capital/Cash Credit loan from Andhra Bank carries interest @ 15.50% p.a and are secured by pari passu first charge on all current assets of the company such as stock of raw materials, semi finished goods, finished goods, packing materials and book debts. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors
: |
|
|
Name : |
Haribhakti and Company Chartered Accountants |
|
Address : |
Shree Shanmugappriya”, 2nd Floor, 454, Ponnaiyan Street, Cross Cut Road, Gandhipuram, Coimbatore – 641012, Tamilnadu, India |
|
Tel. No.: |
91-422-2237793/ 2238793 |
|
|
|
|
Cost Auditor : |
|
|
Name : |
G.L. Sankaran Cost Accountants |
|
Address : |
82, EB Colony, Vadavalli,
Coimbatore – 641 041, Tamilnadu, India |
|
Tel. No.: |
91-422-2400767 |
|
|
|
|
Others :
(Enterprise over which key management personnel are able to exercise
significant influence) : |
· L.G. Balakrishnan and Bros Limited · Elgi Automotive Service (PRIVATE) Limited · L.G.B Auto Products (PRIVATE) Limited · LG Farm Products (PRIVATE) Limited · L.G. Balakrishnan and Bros - Karur · LG Sports Limited · Super Speeds Private Limited · Super Transports Private Limited · Silent Chain India Private Limited · LGB Fuel Systems Private Limited · BCW V Tech India Private Limited · Rolon Fine Blank Limited · LGB Rolon Chain Limited · South Western Engineering India Limited · Tribe Investments and Services Private Limited ·
Renold Chain India Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170000000 |
Equity Shares |
Rs.1/- each |
Rs.170.000 Millions |
|
300000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.30.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150001551 |
Equity Shares |
Rs.1/- each |
Rs.150.002 Millions |
|
|
|
|
|
a. Terms/Rights
attached to Equity shares
The Company has one class of issued shares referred to as equity shares having a par value of ` 1. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the board of Directors, if any, is subject to the approval of shareholders in Annual General Meeting. In the event of liquidation of the Company the holder of the equity shares will be entitled to receive remaining assets of the Company after settlement of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the equity shareholders.
b. Reconciliation of
the number of Shares outstanding and the amount of Share Capital as at March
31, 2014 and March 31, 2013.
|
Particular |
As at 31.03.2014 |
|
|
Equity shares
(Issued Capital) |
In numbers |
Rs. In Millions |
|
Shares outstanding at the beginning of the
year |
150001551 |
150.002 |
|
Shares Issued during the year |
- |
- |
|
Shares bought back during the year |
- |
- |
|
Shares outstanding at the end of the year |
150001551 |
150.002 |
c. Details of
Shareholders holding more than 5% shares in the Company :
|
Particular |
As at 31.03.2014 |
|
|
Name of Shareholder |
No. of Shares held |
% of Holding |
|
L.G. Balakrishnan and Bros Limited |
29000000 |
19.33 |
|
V. Rajsri |
15000000 |
10.00 |
|
B. Vijayakumar |
15000000 |
10.00 |
|
V. Rajvirdhan |
10500000 |
7.00 |
|
Elgi Automotive Services Private Limited |
8437950 |
5.63 |
d. There are no bonus shares, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceeding the reporting date.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
150.002 |
150.002 |
100.001 |
|
(b) Reserves & Surplus |
(22.555) |
(53.262) |
(97.158) |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
127.447 |
96.740 |
2.843 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
175.000 |
278.275 |
384.819 |
|
(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 |
0.023 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
175.023 |
278.275 |
384.819 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
79.216 |
139.710 |
281.722 |
|
(b) Trade payables |
116.487 |
130.910 |
147.366 |
|
(c) Other current liabilities |
140.671 |
151.809 |
78.222 |
|
(d) Short-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Current Liabilities (4) |
336.374 |
422.429 |
507.310 |
|
|
|
|
|
|
TOTAL |
638.844 |
797.444 |
894.972 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
193.820 |
318.990 |
424.688 |
|
(ii) Intangible Assets |
0.365 |
0.611 |
1.019 |
|
(iii) Capital work-in-progress |
0.000 |
3.657 |
1.172 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
11.442 |
12.792 |
13.488 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
205.627 |
336.050 |
440.367 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
179.703 |
184.242 |
177.778 |
|
(c) Trade receivables |
239.389 |
258.877 |
253.946 |
|
(d) Cash and cash equivalents |
0.349 |
0.468 |
2.257 |
|
(e) Short-term loans and
advances |
13.776 |
13.307 |
16.124 |
|
(f) Other current assets |
0.000 |
4.500 |
4.500 |
|
Total
Current Assets |
433.217 |
461.394 |
454.605 |
|
|
|
|
|
|
TOTAL |
638.844 |
797.444 |
894.972 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
865.441 |
1080.097 |
1271.289 |
|
|
Other Income |
21.407 |
31.562 |
21.136 |
|
|
TOTAL
(A) |
886.848 |
1111.659 |
1292.425 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
434.867 |
531.581 |
642.291 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
3.320 |
(6.073) |
2.883 |
|
|
Employees benefits expense |
90.472 |
99.988 |
108.647 |
|
|
Other expenses |
272.735 |
347.602 |
387.638 |
|
|
Exceptional items |
(86.252) |
6.537 |
0.000 |
|
|
TOTAL
(B) |
715.142 |
979.635 |
1141.459 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
171.706 |
132.024 |
150.966 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
60.884 |
78.782 |
102.331 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
110.822 |
53.242 |
48.635 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
80.115 |
96.847 |
101.612 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
30.707 |
(43.605) |
(52.977) |
|
|
|
|
|
|
|
Less |
TAX
(I) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
30.707 |
(43.605) |
(52.977) |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(430.648) |
(387.043) |
(334.066) |
|
|
|
|
|
|
|
|
BALANCE
CARRIED TO THE B/S |
(399.941) |
(430.648) |
(387.043) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
116.033 |
145.042 |
142.022 |
|
|
TOTAL
EARNINGS |
116.033 |
145.042 |
142.022 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
0.20 |
(0.30) |
(0.53) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
3.46 |
(3.92) |
(4.10) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.55 |
(4.04) |
(4.17) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.81 |
(5.49) |
(5.93) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24 |
(0.45) |
(18.63) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.99 |
4.32 |
234.45 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29 |
1.09 |
0.90 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
100.001 |
150.002 |
150.002 |
|
Reserves & Surplus |
(97.158) |
(53.262) |
(22.555) |
|
Net
worth |
2.843 |
96.740 |
127.447 |
|
|
|
|
|
|
long-term borrowings |
384.819 |
278.275 |
175.000 |
|
Short term borrowings |
281.722 |
139.710 |
79.216 |
|
Total
borrowings |
666.541 |
417.985 |
254.216 |
|
Debt/Equity
ratio |
234.450 |
4.321 |
1.995 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1271.289 |
1080.097 |
865.441 |
|
|
|
(15.039) |
(19.874) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1271.289 |
1080.097 |
865.441 |
|
Profit |
(52.977) |
(43.605) |
30.707 |
|
|
(4.17%) |
(4.04%) |
3.55% |
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 |
Yes |
|
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 |
Yes |
PERFORMANCE OF THE
COMPANY
During the year, the Company’s Gross Revenue is Rs. 886.848 Millions [Previous Year: Rs. 1111.659 Millions]. Gross Profit / (Loss) before interest, depreciation and tax amounted to Rs. 85.454 Millions [Previous Year (Rs. 138.561 Millions]. The Net profit stood at Rs. 30.707 Millions [Previous Year Net Loss Rs. 43.605 Millions].
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND DEVELOPMENT:
Current year forging industry is likely to see a marginal fall in production this fiscal from last year’s level following tepid off-take from its principal customer - the automotive sector. The non-automotive sector will continue its characteristic purchase pattern with both indigenous and export related markets.
OPPORTUNITIES:
During the Year 2013-2014, LGB Forge Limited had systematically identified and executed cost control measures. These measures implemented during the last years have helped the company grow on a much leaner cost structure with less reliance on power, aiding the ability for the company to concentrate on diverse portfolios. Indian auto Industry is expected continue to show same growth rates against previous year estimates but is expected to show an upward trend during 2014-2015, with the new government formation as a growth indicator. With these Positive indicators LGB Forge Limited growth opportunities are encouraging in the coming years.
UNSECURED LOAN
(Rs. In Millions)
|
Particular |
As on 31.03.2014 |
As on 31.03.2013 |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred payment
liabilities |
|
|
|
Sales tax deferral scheme loan |
0.000 |
1.607 |
|
Loans and Advances
from related parties |
|
|
|
Tribe Investments and Services Private Limited |
0.000 |
1.668 |
|
|
|
|
|
Total |
0.000 |
3.275 |
Notes:
· Interest free Sales tax deferral scheme loan in respect of Karnataka Sales Tax amounting to Rs. 10.438 Millions and Karnataka VAT amounting to Rs. 5.623 Millions, is repayable in 1 half yearly installment of Rs. 1.044 Millions and Rs. 0.562 Millions respectively ending with June 2014.
· Intercorporate deposit of Rs. 5.000 Millions received from M/s. Tribe Investments and Services Private Limited carries interest @ 14% p.a and is repayable in 2 quarterly installments of Rs. 0.833 Millions. Interest is payable on monthly basis.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Guarantee given by Bankers and outstanding |
5.000 |
15.000 |
|
Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for (Net after advance payments) |
0.705 |
0.730 |
|
Letter of Credits |
26.193 |
10.244 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10323875 |
10/05/2012 * |
50,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA |
B42801993 |
|
2 |
10275761 |
19/05/2011 * |
400,000,000.00 |
ICICI BANK LIMITED |
1090, CHERAN PLAZA, TRICHY ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
B12953527 |
|
3 |
10134474 |
12/12/2008 |
120,000,000.00 |
IDBI Bank |
COIMBATORE BRANCH, 72, MAYFLOWER 'E' CASTLE, DR. BALASUNDARAM ROAD, OFF AVINASHI ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
A53189908 |
|
4 |
10120630 |
11/02/2013 * |
70,000,000.00 |
Axis Bank Limited |
"VIGNESHWAR CRESTA" 1095, AVANASHI ROAD, PAPPANAI CKENPALAYAM, COIMBATORE, TAMIL NADU - 641037, INDIA |
B72339732 |
|
5 |
10115363 |
04/09/2008 * |
90,000,000.00 |
ICICI BANK LIMITED |
CHERAN PLAZA, I FLOOR, 1090, TRICHY ROAD, COIMBAT ORE, TAMIL NADU - 641018, INDIA |
A48976534 |
* Date of charge modification
FIXED ASSETS
Tangible Assets
· Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office equipment
· Data Processing machine
· Electrical installation
· Pipeline fitting
· Lab equipment
· Fire equipment
· Canteen Equipments
· Tools and Die sets
Intangible Assets
· Computer Software
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.60.19 |
|
|
1 |
Rs.103.15 |
|
Euro |
1 |
Rs.81.87 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
33 |
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.