|
Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDIAN ORDNANCE
FACTORIES |
|
|
|
|
Corporate Headquarters : |
Ayudh Bhawan, 10-A, S.K. Bose Road,
Kolkata – 700 001, West Bengal |
|
|
|
|
Country : |
|
|
|
|
|
Year of
Establishment : |
1775 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Not Available |
|
|
|
|
Legal Form : |
Industrial setup which
functions under the Department of Defence Production of the Ministry of
Defence |
|
|
|
|
Line of Business
: |
Subject engaged in
production, testing, logistics, research, development and marketing of a comprehensive
product range in the area of land, sea and air systems. |
|
|
|
|
No. of Employees
: |
Information declined by the Management |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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 DECLINED BY
|
Name : |
Mr. Y. Somra |
|
Designation : |
Additional General Manager |
|
Contact No.: |
91-512-2241994 |
|
Date : |
04.03.2014 |
LOCATIONS
MANAGEMENT
|
Name : |
Mr. M. C. Bansal |
|
Designation : |
DGOF and Chairman, OFB |
|
Joined IOFS on : |
28.03.1977 |
|
Chairman Since : |
01.03.2014 |
|
|
|
|
Name : |
Mr. Sudhakar Asthana |
|
Designation : |
Additional DGOF/OEFHQ |
|
Joined IOFS on : |
22.01.1978 |
|
Member Since : |
30.08.2013 |
|
|
|
|
Name : |
Mr. S. Yamdagni |
|
Designation : |
Member/PER |
|
Joined IOFS on |
06.01.1978 |
|
Member Since : |
30.08.2013 |
|
|
|
|
Name : |
Mr. Ashwani Kr. Prabhakar |
|
Designation : |
Member/WV&E |
|
Joined IOFS on |
20.04.1978 |
|
Member Since : |
30.08.2013 |
|
|
|
|
Name : |
Mr. N. M. Kalanee |
|
Designation : |
Member/P&MM |
|
Joined IOFS on |
19.09.1977 |
|
Member Since : |
30.08.2013 |
|
|
|
|
Name : |
Mr. M. K. Jain |
|
Designation : |
Member/PEDB and TS |
|
Joined IOFS on : |
26.09.1977 |
|
Member Since : |
30.08.2013 |
|
|
|
|
Name : |
Ms. Sanhita Kar |
|
Designation : |
Member/Finance |
|
Member Since : |
16.11.2012 |
KEY EXECUTIVES
|
Name : |
Mr. Y. Somra |
|
Designation : |
Additional General Manager |
BUSINESS DETAILS
|
Line of Business : |
Subject engaged in
production, testing, logistics, research, development and marketing of a
comprehensive product range in the area of land, sea and air systems. |
|
|
|
|
Products : |
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
No |
|
12) Profitability for last three years |
No |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
No |
|
16) Details of sister concerns |
No |
|
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 |
No |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
No |
|
28) Incorporation details, if applicable |
No |
|
29) Last accounts filed at ROC |
No |
|
30) Major Shareholders, if available |
No |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
WEBSITE DETAILS:
HISTORY:
The Beginning
The history and development of
Indian Ordnance Factories is directly linked with the British reign in India.
East India company of England for their economic interest in India and to
increase their political hold considered military hardware as vital element.
During 1775 British authorities accepted the establishment of Board of Ordnance
in Fort William, Kolkata. This marks the official beginning of the Army
Ordnance in India.
In 1787 a gun powder factory was
established at Ishapore which started production from 1791 (at which location
Rifle Factory was established in 1904). In 1801 a Gun Carriage Agency at
Cossipore, Kolkata (presently known as Gun and Shell Factory, Cossipore) was
eatablished and production started from 18th March, 1802. This is the first
Industrial establishment of Ordnance Factories which has continued its
existence till date.
Growth of Indian Ordnance Factories
The growth of the Ordnance
Factories leading to its present setup has been continuous but in spurts. There
were 18 ordnance factories before India became independent in 1947. 21
factories have been established after independence - mostly, in wake of defence
preparedness imperatives caused by the three major wars fought by the Indian
Armed forces. 40th Factory is under establishment at Nalanda, Bihar.
Main Events
Main events in the evolution of
Ordnance Factory can be listed as below:
1801 - Establishment of Gun Carriage
Agency at Cossipore, Kolkata.
1802 - Production started from
18th March 1802 at Cossipore.
1906 - The Administration of
Indian Ordnance Factories came under a separate charge as 'IG of Ordnance
Factories'.
1933 - Charged to 'Director of
Ordnance Factories'.
1948 - Placed under direct control
of Ministry of Defence.
1962 - Dept. of Defence Production
was set up at Ministry of Defence.
1979 - Ordnance Factory Board came
into existence from 2nd April.
Profile:
The Indian Ordnance Factories organisation - a family of 41 Ordnance Factories under the aegis of its corporate headquarters Ordnance Factory Board, Kolkata - possesses the unique distinction of over 200 years experience in defence production. They are engaged in production, testing, logistics, research, development and marketing of a comprehensive product range in the area of land, sea and air systems.
The patronage they receive both in India and abroad speaks of their quality of products and services. Undoubtedly, they are the force behind armed forces.
Indian Ordnance Factories is the oldest and largest industrial setup which functions under the Department of Defence Production of the Ministry of Defence. The ordnance factories form an integrated base for indigenous production of defence hardware and equipment, with the primary objective of self reliance in equipping the armed forces with state of the art battlefield equipments.
Introduction
Indian Ordnance Factories is a
giant industrial setup which functions under the Department of Defence
Production of the Ministry of Defence. Indian Ordnance Factories, headquartered
at Kolkata, is a conglomerate of 41 Factories, 9 Training Institutes, 3
Regional Marketing Centres and 4 Regional Controller of Safety.
Today OFB along with its 41 factories
spread over India provide
·
a broad and versatile
production base with multi-technology capabilities
·
state of the art
manufacturing facilities
·
large reservoir of
skilled and professionally qualified manpower and managerial personnel
·
strict adherence
to quality standard (all the units are ISO-9000 certified)
·
original as well as
adaptive research and development to make need based refinement and
modifications
·
project engineering
capability
·
a strong base for
industrial training facilities
·
ready market access
due to convenient location
Geographical Spread
There are 41 Ordnance
Factories geographically distributed all over
the country at 24 different locations. A visual idea of how their factories and
headquarters are distributed can be had from their location
map.
|
Name of State/
Union Territory |
Number of
factories |
|
Maharashtra |
10 |
|
Uttar Pradesh |
8 |
|
Madhya Pradesh |
6 |
|
Tamil Nadu |
6 |
|
West Bengal |
4 |
|
Uttaranchal |
2 |
|
Andhra Pradesh |
1 |
|
Chandigarh |
1 |
|
Orissa |
1 |
Their Product Range
Items produced in Ordnance
Factories are highly sophisticated and complex in nature. Also the range of
products is simply astonishing. Their products, as is evident from the list
below, span across a wide and exhaustive range of requirements of any armed
forces.
Their products must be safe in
handling, reliable and perform consistently during actual operation with equal
efficiency under varying and extreme conditions of climate. The plant and
technologies have been so chosen as to ensure high degree of quality and
reliability and is a unique blend of old and the most modern state-of-the-art
CNC technologies. The manufacturing process covers wide spectrum of engineering
- Mechanical, Electrical, Metallurgical, Chemical, Textile, Leather, Optics and
Electronics.
It is their endeavour to
manufacture world class products without compromising with the safety aspects
of products and processes. Adherence to safety standards is given highest
priority and a well laid down safety norm as well as diaster management plan
exists in the organisation.
The prime customers of Indian Ordnance Factories are the Indian Armed Forces. Apart from supplying armaments to the Armed Forces, Ordnance Factories also meet the requirement of other customers viz. Central Paramilitary Forces and State Police Forces in respect of Arms, Ammunition, Clothings, Bullet Proof Vehicles and Mine Protected Vehicles etc. Increase in volume of Export, as an extension to its functioning remains an important objective of Ordnance Factories.
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.61.86 |
|
|
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Report Prepared
by : |
SMN |
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.