MIRA
INFORM REPORT
|
Report No. : |
315267 |
|
Report Date : |
03.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
SANGHVI FORGING
AND ENGINEERING LIMITED |
|
|
|
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Registered
Office : |
244/6-7,
G.I.D.C Industrial Estate, Waghodia, Vadodara – 391760, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
16.03.1989 |
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Com. Reg. No.: |
04-012015 |
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Capital
Investment / Paid-up Capital : |
Rs.132.923 Million |
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CIN No.: [Company Identification
No.] |
L28910GJ1989PLC012015 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AADCS2903E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of forged of Lange’s and heavy forgings used in industrial
forging and precision machine components. |
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No. of Employees
: |
108 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1600000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial
risk profile and loss that company has incurred from its operational
activities during 2014. However, trade relations are fair. Business is active. Payments are
reported to be slow but correct. The company can be considered for business dealing with some 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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank
facilities = BB- |
|
Rating Explanation |
Inadequate credit
quality and high credit risk. |
|
Date |
April 01, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank
facilities = A4 |
|
Rating Explanation |
Minimal degree of
safety and very high credit risk. |
|
Date |
April 01, 2014 |
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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. V.B.Sanghvi |
|
Designation : |
Director |
|
Contact No.: |
91-265-2580644 |
|
Date : |
28.03.2015 |
LOCATIONS
|
Registered Office / Unit 1 : |
244/6-7,
G.I.D.C Industrial Estate, Waghodia, Vadodara – 391760, Gujarat, India |
|
Tel. No.: |
91-2668-264100 / 265-25680644 |
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Fax No.: |
91-2668-263411 |
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E-Mail : |
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|
Website : |
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Area : |
1500 Sq. Ft. |
|
Location : |
Owned |
|
Locality : |
Industrial |
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Head / Corporate Office : |
A-8,
Parvati Chamber, Opposite Apsara Cinema, Pratapnagar Road, Vadodara-390004,
Gujarat, India |
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Tel. No.: |
91-265-2580644 |
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Fax No.: |
91-265-2581126 |
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Location : |
Owned |
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Unit 2 : |
1401,
1402, 1403, G.I.D.C. Industrial Estate, Waghodia, District Vadodara-391760,
Gujarat, India |
|
Tel. No.: |
91-2668-264100 |
|
Fax No.: |
91-2668-263411 |
|
Location : |
Owned |
DIRECTORS
As on 31.03.2014
|
Name : |
Shri. Babulal S Sanghvi |
|
Designation : |
Chairman & Wholetime Director |
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Date of Birth/Age : |
10.04.1951 |
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|
Name : |
Shri. Jayanti B Sanghvi |
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Designation : |
Managing Director |
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Date of Birth/Age : |
04.01.1976 |
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|
Name : |
Shri. Naresh B Sanghvi |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
09.12.1977 |
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|
Name : |
Shri. Vikram B Sanghvi |
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Designation : |
Wholetime Director & Chief Financial Officer |
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Date of Birth/Age : |
20.04.1982 |
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|
|
|
Name : |
Shri. Shantaram Yarlagadda |
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Designation : |
Independent Director |
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Date of Birth/Age : |
20.06.1939 |
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Name : |
Shri. Ram C Prasad |
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Designation : |
Independent Director |
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Date of Birth/Age : |
04.03.1949 |
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Name : |
Shri. Ram S Kaushal |
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Designation : |
Independent Director |
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Date of Birth/Age : |
28.09.1947 |
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Name : |
Shri. Baba Pai |
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Designation : |
Independent Director |
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Date of Birth/Age : |
04.02.1954 |
KEY EXECUTIVES
|
Name : |
Shri. Sagar Pandya |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
9083726 |
65.39 |
|
|
9083726 |
65.39 |
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|
|
Total
shareholding of Promoter and Promoter Group (A) |
9083726 |
65.39 |
|
(B) Public
Shareholding |
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|
|
|
|
|
|
|
|
|
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|
334986 |
2.41 |
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|
|
|
|
|
1970050 |
14.18 |
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|
1760108 |
12.67 |
|
|
743397 |
5.35 |
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|
13092 |
0.09 |
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|
30324 |
0.22 |
|
|
699981 |
5.04 |
|
|
4808541 |
34.61 |
|
Total Public
shareholding (B) |
4808541 |
34.61 |
|
Total (A)+(B) |
13892267 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
13892267 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of forged of Lange’s and heavy forgings used in
industrial forging and precision machine components. |
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|
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|
Products : |
· Heavy Forging · Tube Forgings · Forged Bars · Shaft and Step Shafts · Tube Sheets · Blocks and Plates · Rings ·
Forged Flanges and components |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Cash, Advance Payment, L/C, Cheque and Credit (30/60/90 Days) |
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Purchasing : |
Cash, Advance Payment, L/C, Cheque and Credit (30/60/90 Days) |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
·
End Users, OMEs and Manufacturer
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No. of Employees : |
108 (Approximately) |
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Bankers : |
·
State
Bank of India, Industrial Finance Branch, Gujarat, India ·
Bank
of Baroda |
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Facilities : |
(Rs.
In Million)
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Statutory Auditors : |
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Name : |
Shah and Bhandari Chartered Accountants |
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Cost Auditor : |
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Name : |
Diwanji
and Associates Cost
Accountants |
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Internal Auditor : |
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|
Name : |
Jain
and Hindocha Chartered
Accountants |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Enterprises under Significant
Influence of Key Management Personnel or their Relatives : |
·
Gautam
Pipeline Product ·
Gautam
Stainless Private limited ·
Babulal
Sanghvi (HUF) ·
Jayanti
Sanghvi (HUF) ·
Naresh
Sanghvi (HUF) ·
Vikram
Sanghvi (HUF) |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13292267 |
Equity Shares |
Rs.10/- each |
Rs.132.923
Million |
Note:
Right to vote, dividend and
restriction attached to each class of issued capital to be disclosed.
All
the Shareholders whose name is entered in the Registered of Members of the
Company shall enjoy the same voting rights and be subject to the same liabilities
as all other shareholder of the same class.
Reconciliation of shares
outstanding at the beginning and at the end of the year
|
Particulars |
March 31, 2014 |
|
|
Nos. |
Rs. In Million |
|
|
Equity Shares |
|
|
|
At
the beginning of the year |
12692267.00 |
126.923 |
|
Issued
during the year |
|
|
|
(a)
Preferential Issue by conversion of warrant |
600000.00 |
6.000 |
|
Outstanding at the end of the
year |
13292267.00 |
132.923 |
Details of shares held by shareholders
holding more than 5% of the aggregate shares in the company (Equity Shares of `
10 each fully paid)
|
Name of the shareholder |
As on March 31, 2014 |
|
|
Number of shares |
% holding |
|
|
Jayanti
B. Sanghvi |
1525591 |
11.48 |
|
Babulal
S. Sanghvi |
1314283 |
9.89 |
|
Naresh
B. Sanghvi |
1432931 |
10.78 |
|
Vikram
B. Sanghvi |
1105682 |
8.32 |
|
Bhamridevi
B. Sanghvi |
682451 |
5.13 |
|
Dango
and Dienenthal GMBH and Company |
699981 |
5.27 |
As on 26.09.2014
Authorised Capital: Rs.200.000 Million
Issued, Subscribed & Paid-up Capital: Rs.138.923
Million
FINANCIAL DATA
[all figures are
in Rupees Million]
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 |
132.923 |
126.923 |
126.923 |
|
(b) Reserves &
Surplus |
419.843 |
481.189 |
467.525 |
|
(c) Money received
against share warrants |
5.625 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
558.391 |
608.112 |
594.448 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
407.185 |
250.931 |
228.289 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
21.845 |
17.705 |
|
(c) Other long term
liabilities |
23.565 |
367.732 |
-0.213 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
430.750 |
640.508 |
245.781 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
283.475 |
330.649 |
80.690 |
|
(b) Trade payables |
131.020 |
38.389 |
18.536 |
|
(c) Other current
liabilities |
602.449 |
275.341 |
390.193 |
|
(d) Short-term provisions |
0.778 |
1.122 |
10.479 |
|
Total Current Liabilities
(4) |
1017.722 |
645.501 |
499.898 |
|
|
|
|
|
|
TOTAL |
2006.863 |
1894.121 |
1340.127 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1571.132 |
1454.272 |
123.199 |
|
(ii) Intangible Assets |
4.231 |
3.777 |
2.419 |
|
(iii) Capital
work-in-progress |
77.013 |
74.424 |
541.499 |
|
(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 |
7.624 |
22.088 |
69.359 |
|
(e) Other Non-current
assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1660.000 |
1554.561 |
736.476 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
152.779 |
147.322 |
110.200 |
|
(c) Trade receivables |
117.493 |
105.612 |
91.645 |
|
(d) Cash and cash
equivalents |
20.861 |
26.888 |
211.072 |
|
(e) Short-term loans and
advances |
55.730 |
59.738 |
190.734 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
346.863 |
339.560 |
603.651 |
|
|
|
|
|
|
TOTAL |
2006.863 |
1894.121 |
1340.127 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
538.188 |
452.255 |
507.313 |
|
|
Other Income |
4.365 |
8.665 |
7.927 |
|
|
TOTAL |
542.553 |
460.920 |
515.240 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
281.027 |
246.585 |
320.054 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(3.915) |
(2.904) |
(25.973) |
|
|
Employees benefits
expense |
37.622 |
29.095 |
21.888 |
|
|
Other expenses |
161.904 |
114.740 |
108.408 |
|
|
TOTAL |
476.638 |
387.516 |
424.377 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
65.915 |
73.404 |
90.863 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
94.133 |
35.223 |
14.182 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE TAX,
DEPRECIATION AND AMORTISATION |
(28.218) |
38.181 |
76.681 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
71.451 |
19.271 |
7.117 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(99.669) |
18.910 |
69.564 |
|
|
|
|
|
|
|
Less |
TAX |
(21.823) |
5.247 |
22.001 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
(77.846) |
13.663 |
47.563 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
96.254 |
82.056 |
130.244 |
|
|
TOTAL EARNINGS |
96.254 |
82.056 |
130.244 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
5.690 |
48.613 |
5.952 |
|
|
Capital Goods |
37.315 |
491.081 |
274.491 |
|
|
TOTAL IMPORTS |
43.005 |
539.694 |
280.443 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
(5.86) |
1.03 |
3.58 |
Expected Sales (2014-2015): Rs.720.000 Million
The above information has been parted by Mr. V. B. Sanghvi (Director).
QUARTERLY RESULTS
|
Particulars (Rs.
In Million) |
30.06.2014 1st Quarter |
30.09.2014 2nd Quarter |
31.12.2014 3rd Quarter |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
Net Sales |
144.400 |
211.000 |
257.500 |
|
Total Expenditure |
130.900 |
173.900 |
200.200 |
|
PBIDT (Excl OI) |
13.600 |
37.100 |
57.300 |
|
Other Income |
0.800 |
1.800 |
1.200 |
|
Operating Profit |
14.400 |
38.900 |
58.400 |
|
Interest |
36.800 |
35.800 |
42.900 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(22.500) |
3.200 |
15.500 |
|
Depreciation |
19.500 |
19.800 |
19.800 |
|
Profit Before Tax |
(42.000) |
(16.700) |
(4.300) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(42.000) |
(16.700) |
(4.300) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(42.000) |
(16.700) |
(4.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
(14.46) |
3.02 |
9.38 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
12.25 |
16.23 |
17.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.16) |
1.04 |
8.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.18) |
0.03 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.24 |
0.96 |
0.52 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.34 |
0.53 |
1.21 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
126.923 |
126.923 |
132.923 |
|
Reserves & Surplus |
467.525 |
481.189 |
419.843 |
|
Net worth |
594.448 |
608.112 |
552.766 |
|
|
|
|
|
|
long-term borrowings |
228.289 |
250.931 |
407.185 |
|
Short term borrowings |
80.690 |
330.649 |
283.475 |
|
Total borrowings |
308.979 |
581.580 |
690.660 |
|
Debt/Equity ratio |
0.520 |
0.956 |
1.249 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
507.313 |
452.255 |
538.188 |
|
|
|
(10.853) |
19.001 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
507.313 |
452.255 |
538.188 |
|
Profit |
47.563 |
13.663 |
(77.846) |
|
|
9.38% |
3.02% |
(14.46%) |
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 |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
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 |
UNSECURED LOAN
(Rs.
In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
LONG TERM
BORROWING |
|
|
|
From Directors and their relatives |
26.872 |
30.345 |
|
Inter Corporate Deposits |
7.000 |
7.000 |
|
Total |
33.872 |
37.345 |
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10511697 |
03/07/2014 |
1,094,800,000.00 |
STATE BANK OF INDIA |
MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA, Gujarat - 390007, INDIA |
C14143374 |
|
2 |
10478795 |
18/02/2014 |
1,094,800,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, BARODA, Gujarat - 390007, INDIA |
B96854245 |
|
3 |
10303386 |
31/07/2014 * |
1,653,300,000.00 |
STATE BANK OF INDIA - LEAD BANK |
MID CORPORATE GROUP INDUSTRIAL FINANCE BRANCH, MARBLE ARCH, RACE COURSE CIRCLE,, VADODARA, Gujarat - 390007, INDIA |
C17834961 |
|
4 |
10272554 |
29/03/2014 * |
1,653,300,000.00 |
STATE BANK OF INDIA |
STATE BANK OF INDIA, MARBLE ARCH, RACE COURSE CIRCLE, VADODARA, Gujarat - 390007, INDIA |
C02137065 |
* Date of charge modification
FINANCIAL AND OPERATIONAL
PERFORMANCE
The
Company has successfully started commercial production of its new plant having installed
capacity of 15,000 MTPA. Your Company has achieved a turnover of Rs.538.188
Million and a net loss of Rs.77.847 Million for the financial year ended March
31, 2014 as against a turnover Rs.452.256 Million and net profit of Rs.13.663
Million respectively during the previous year, representing a topline growth of
19%.
Depreciation
and amortization charge increased from Rs.19.272 Million in 2012-13 to
Rs.71.451 Million on account of the capitalization of the new project cost
during the FY 2013-14.
Interest
charges increased from Rs.35.223 Million to Rs.94.133 Million due to repayment
of loan in relation to the new project.
Raw
material consumed for manufacturing increased from Rs.246.585 Million in
2012-13 to Rs.281.027 Million, resulting an increase of 13.96%. Total sales
increased by 17.71% whereas raw material consumption increased by 13.96%.
Employee
benefit expenses increased from Rs.29.095 Million in 2012-13 to Rs.37.622
Million, resulting an increase of 29.31%. This increase in intellectual capital
indicates the investment by the Company in attracting experienced professionals
in the organisation.
The
performance of the Company during the year indicate the future-preparedness of
the organisation and strength in its business model, towards a sustainable
future.
OUTLOOK
The
Company continued its focus on strengthening local manufacturing capabilities.
However, it also analyzed the trends in the steel industry and adapted to rapid
development occurring in the world of steel. The Company has adopted strategic
measures to minimise the adverse macro-economic implications.
The
Company has taken a number of steps to sustain its leadership position in the
market and has been strengthening its relationships with its customers. In
addition it is also making constant efforts to add new customers and widen its
customer base.
The
Company has also been in touch with major supplies so to ensure availability of
all critical inputs on time does not pose any problem in future.
The
combination of additional capacity of their new plant and integration has had a
positive impact on the Company’s
operating margins. Their new plant becomes fully operational this year and your
Company believes to strengthen its topline and margins in the coming years.
They have received all approvals from different customers that validate our
product quality.
COMPANY OVERVIEW
SFEL
is today one of the country’s
fastest growing forging companies, diversifying into a wider product profile.
SFEL
has also built its business to such a scale for the benefit of its customers
and shareholders, and it has succeeded over time.
The
Company has world-class infrastructure manufacturing facilities, and various
forging and machined components for procedural and heavy industrial application.
The Company has carved a niche for itself with its quality products and has
also received the approval for the new plant.
The
Company plans to focus on maximum capacity utilisation for the new plant and
improve its existing capacity. The aim is to increase the orders and
simultaneously bring home the profits in the coming years.
They
are expecting a good export potential and hope to be an import substitute once
our new plant achieves maximum capacity utilisation. The Company has also
received approvals from the nuclear and the defence sectors.
FIXED ASSETS
·
Free
hold land
·
Buildings-Factory
·
Plant
and Machinery
·
Electrical
Installation
·
Office
Equipment
·
Computers
·
Furniture
and Fixtures
· Vehicles
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.62.59 |
|
|
1 |
Rs.92.45 |
|
Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
|
Information
Gathered by : |
SAN |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PNM |
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 |
|
--PROFITABILITY |
1~10 |
--- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.