MIRA INFORM REPORT

 

 

Report No. :

489746

Report Date :

03.02.2018

 

 

 

 

IDENTIFICATION DETAILS

 

Name :

ARFIN INDIA LIMITED                                 

 

 

Registered Office :

B-302, 3rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat

Tel. No.:

91-79-26583791 / 26583792

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

10.04.1992

 

 

Com. Reg. No.:

04-017460

 

 

Capital Investment / Paid-up Capital :

INR 121.535 Million

 

 

CIN No.:

[Company Identification No.]

L65990GJ1992PLC017460

 

 

IEC No.:

0810012634

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

GSTIN :

Not Divulged

 

 

PAN No.:

[Permanent Account No.]

AAECA1211A

 

 

Legal Form :

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

 

 

Line of Business :

The Company is engaged in the business of manufacturing, trading and supply of Aluminium Products. (Registered activity)

 

 

No. of Employees :

90 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

A+

 

Credit Rating

Explanation

Rating Comments

A+

Low Risk

Business dealings permissible with low risk of default

 

Maximum Credit Limit :

USD 1500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company incorporated in the year 1992 and it is having good track records.

 

For the financial year 2017, the company has increased its revenue from operation as compared to previous year but maintained average profitability margin of 3.79%.

 

Rating takes into consideration sound financial profile of the company marked by healthy networth base and average debt balance sheet.

 

Further, rating also derives strength from its experience of its promoters in the business of manufacturing ferrous and non-ferrous metals, established relationship with reputed clients, being an organized player in the fragmented aluminium recycling industry robust growth in its product portfolio to cater multiple requirements across varied sectors.

 

However, these strengths are partially offset by highly working capital intensive nature of operations, vulnerability of profitability to volatility in raw material prices and foreign exchange rates.

 

Trade relations are reported as fair. Business is active. Payments terms are seems to be regular.

 

In view of aforesaid, the company can be considered for 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

 

Country Name

Previous Rating

(30.06.2017)

Current Rating

(30.09.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Rating = BBB

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

16.10.2017

 

Rating Agency Name

CARE

Rating

Short Term Rating = A3+

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

16.10.2017

 

 

 

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 31-03-2016.

 

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 03.02.2018

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

INFORMATION DENIED BY

 

Name :

Mr. Vijay Lathi

Designation :

Chief Financial Officer

Contact No.:

91-9824088021

Date :

01.02.2018

 

 

LOCATIONS

 

Registered Office/ Head Office :

B-302, 3rd Floor, Pelican House, Near Natraj Cinema, Gujarat Chamber of Commerce Building, Ashram Road, Ahmedabad – 380009, Gujarat, India

Tel. No.:

91-79-26583791 / 26583792

Mobile No :

91-9824088021 (Mr. Vijay Lathi)

Fax No.:

91-79-25620620 / 26583791

E-Mail :

vijay.lathi@arfin.co.in

mahendra@arfin.co.in

info@arfin.co.in

Website :

http://www.arfin.co.in

Area :

3500 sq. ft.

Location :

Owned

Locality :

Commercial

 

 

Factory  :

118/1,2,3, and 117/3,6,7, Ravi Industrial Estate, B/h Hotel Prestige, Chhatral, Taluka Kalol, District Gandhinagar – 382729, Gujarat, India

Tel. No.:

91-2764-232620/ 21

Fax No.:

91-2764-232621

E-Mail :

jatin@arfin.co.in

info@arfin.co.in

Area :

3 Lac sq. ft.

Location :

Owned

Locality :

Industrial

 

 

DIRECTORS

 

As on 31.03.2017

 

Name :

Mr. Mahendrakumar Rikhavchand Shah

Designation :

Whole Time Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati  Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

09.03.1963

Qualification :

B.S.C

Experience :

23 Years

PAN No.:

AFDPS6796P

Date of Appointment :

30.09.1998

DIN No.:

00182746

 

 

Name :

Mr. Jatin Mahendrakumar Shah

Designation :

Managing Director

Address :

Khandwala Bunglow, Near Post Office, Dharam Nagar, Sabarmati  Ahmedabad - 380 005, Gujarat, India

Date of Birth/Age :

09.12.1983

Qualification :

B.Com

Experience :

13 Years

PAN No.:

ASMPS1116P

Date of Appointment :

12.06.2012

DIN No.:

00182683

 

 

Name :

Mrs. Pushpa Mahendra Shah

Designation :

Director

Address :

Khandwala Bunglow, Hirani Haveli Dharam Nagar, Sabarmati, Ahmedabad – 380005, Gujarat, India

Date of Birth/Age :

21.06.1966

Qualification :

B.Com

Experience :

10 Years

PAN No.:

AEAPS1693F

Date of Appointment :

05.11.2015

DIN No.:

00182754

 

 

Name :

Mr. Mukesh Shankerlal Chowdhary

Designation :

Additional Director

Address :

B-2, Punyakothi Appartment, Near C. N. Vidyalaya, Ahmedabad- 380009, Gujarat, India

Date of Appointment :

09.11.2017

DIN No.:

00025877

 

 

Name :

Mr. Dineshchandra Mangaldas Shah

Designation :

Additional Director

Address :

303,304, Arihant Nagar, Opposite Subh Complex, Canp Road, Shahibaug, Ahmedabad – 380004, Gujarat, India

Date of Appointment :

20.09.2017

DIN No.:

02479309

 

 

Name :

Mr. Shanti Lal Mehta

Designation :

Director

Address :

H. No. 1010, Sector. 46-B, Chandigarh - 160047, India 

Date of Birth/Age :

16.11.1945

Qualification :

Mechanical Engineer

Experience :

53 Years

PAN No.:

ABQPM6641L

Date of Appointment :

05.11.2015

DIN No.:

06459451

 

 

KEY EXECUTIVES

 

Name :

Mr. Vijay Lathi

Designation :

Chief Financial Officer

Address :

B - 701, Ozone Aangan, Near Ramapeer Tekra, Nava Wadaj, Ahmedabad – 380013, Gujarat, India

Date of Appointment :

22.05.2015

PAN No.:

ABZPL9908N

 

 

Name :

Mrs. Kruti Tusharkumar Sheth

Designation :

Company Secretary

Address :

22, Mohan Morari Flat Barrage Road, Vasna, Ahmedabad – 380007, Gujarat, India

Date of Appointment :

09.11.2017

PAN No.:

GSSPS5558D

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on December 2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

(A) Promoter & Promoter Group

8832771

72.68

(B) Public

3320700

27.32

Grand Total

12153471

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares

A1) Indian

0.00

Individuals/Hindu undivided Family

8832771

72.68

Mahendrakumar Rikhavchand Shah

2047200

16.84

Jatin Mahendrakumar Shah

1826700

15.03

Pushpaben Mahendrakumar Shah

1793100

14.75

Rani Jatin Shah

1511700

12.44

Jatin Mahendra Shah HUF

541500

4.46

Pooja Mahendrabhai Shah

406500

3.34

Krish Jatin Shah

300000

2.47

Mahendrakumar Rikhavchand Huf

187500

1.54

Khushbu Mahendrabhai Shah

143571

1.18

Khwaish Jatin Shah

75000

0.62

Sub Total A1

8832771

72.68

A2) Foreign

0.00

A=A1+A2

8832771

72.68

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)

B1) Institutions

0

0.00

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

683935

5.63

Individual share capital in excess of INR 0.200 Million

1983006

16.32

Babita R Shah

125400

1.03

Gopal Shantilal Shah

249704

2.05

Khatod Vartika Vijendra

150000

1.23

Parasmal Ghewarchand Nahata

150000

1.23

Shantilal Tulsiram Khator

150000

1.23

Sumitra Lalitkumar Shah

124800

1.03

Taruben Lalitkumar Gandhi

225000

1.85

Any Other (specify)

653759

5.38

HUF

217446

1.79

NRI – Non- Repat

101806

0.84

NRI – Repat

2332

0.02

Clearing Members

312168

2.57

Urja Investment Pte. Ltd.

200000

1.65

Bodies Corporate

20007

0.16

Sub Total B3

3320700

27.32

B=B1+B2+B3

3320700

27.32

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is engaged in the business of manufacturing, trading and supply of Aluminium Products. (Registered activity)

 

 

Products :

Item Code No.

Product Description

242

Aluminium

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

PRODUCTION STATUS (As on 31.03.2016)

 

Products

Installed Capacity (MT)

Actual Production (MT

Aluminium Wire Rod

15000.00

7319.00

Aluminium Deox

20000.00

 

10572.00

 

Cored Wire

500.00

356.00

Aluminium Alloy

6000.00

 

738.00

Aluminium Draw Wire

360.00

 

41.00

 

Automobile Products

200.00

19.00

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

Customers :

 

Reference :

Not Divulged

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark:

--

 

 

No. of Employees :

90 (Approximately)

 

 

Bankers :
  • Axis Bank Limited, CBB Branch, 2nd Floor, 3-Eye Building, C.G. Road, Ahmedabad, Gujarat, India

 

  • IDBI Bank Limited, IDBI Complex, Near Lal Bunglow, C.G. Road, Ahmedabad – 380009, Gujarat, India

 

  • State Bank of India, SME Law Garden Branch, Zodiac Avenue, Opposite Commissioner Bungalow, Law Garden, Ahmedabad – 380006, Gujarat, India

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term Loans From Banks:

3.171

5.119

i) Tenure of Loan is 36 Months and Repayable in Equal Monthly Instalments. Present Rate of Interest is 9.35% per annum.

 

ii) Nature of Security: Loan is Secured by Pledge of Vehicle.

iii) Loan is Guaranteed by following Directors:

(1) Mr. Mahendra R. Shah (2) Mr. Jatin M. Shah

 

 

(ii) From Other Parties

 

 

Tata Capital Financial Services Limited - (Term Loan)

3.192

9.644

i) Tenure of Loan is 36 Months and Repayable in Monthly Instalments. Present Rate of Interest is 12.50% per annum.

ii) Nature of Security: Secured by Hypothecation of Plant and Machinery Purchased out of Bank Finance.

iii) Loan is Guaranteed by following Directors:

 

(1) Mr. Mahendra R. Shah (2) Mr. Jatin M. Shah

 

 

 

 

 

Short-term borrowings

 

 

Loan Repayable On Demand:

 

 

From Banks:

 

 

Axis Bank Limited - Cash Credit Limits

106.703

68.047

Axis Bank Limited - Buyer’s Credit Limits

60.566

80.608

IDBI Bank Limited - Cash Credit Limits

131.542

105.803

IDBI Bank Limited - Buyer’s Credit Limits

18.828

67.353

State Bank of India - Cash Credit Limits

242.522

0.000

Total

566.524

336.574

 

NOTE:

 

SHORT-TERM BORROWINGS

 

Axis and IDBI Loans are secured by following:

 

1) Nature of Security: (i) Secured by Hypothecation of Entire Current Assets Including Book Debts and Stock at Present and in Future. It is

on pari passu basis with State Bank of India (SBI).

 

2) Collateral Security: (i) Mortgage of Factory Land and Building at “118/1, Ravi Industrial Estate situated at Bileshwarpura Village, Chhatral, Gandhinagar - 382729, Gujarat, India”.

 

(ii) Mortgage of Office Building situated at “B-302, 3 Floor, Pelican House, Gujarat Chamber of Commerce Building, Ashram Road,

Ahmedabad - 380009, Gujarat, India”.

 

(iii) Fixed Deposit of INR 20.000 Million with Axis Bank Limited.

 

SBI Loan is secured by following:

1) Nature of Security: (i) Secured by Hypothecation of Entire Current Assets Including Book Debts and Stock at Present and in Future. It is on pari passu basis with Axis Bank and IDBI Bank.

 

2) Collateral Security with State Bank of India: (i) Mortgage of Factory Land and Building at “118/2 and 118/3, Ravi Industrial Estate situated at Bileshwarpura Village, Chhatral, Gandhinagar - 382729, Gujarat, India”.

 

(ii) Mutual Fund of INR 41.200 Million with State Bank of India.

3) Rate of Interest on Cash Credit Loan is in Range Between 10.50% to 11.25% per annum.

 

4) All the above Short Term Cash Credit Loans are Renewable Every Year.

5) Loans are Guaranteed by following Directors:

(i) Mr. Mahendra R. Shah

(ii) Mr. Jatin M. Shah

(iii) Mrs. Pushpa M. Shah

(ii) From Other Parties

 

Auditors 1:

 

Name :

Raman M. Jain and Company

Chartered Accountants

Address :

B- 3 1 / 3 3 , Ghanshyam Avenue, Opposite, C U Shah College,  Income Tax, Ahmedabad – 380014, Gujarat, India

Tel. No.:

91-79-27542823 / 27542819

Email :

rinkesh_1983@yahoo.co.in

PAN No.:

ABHPJ8145K

 

 

Auditors 2:

 

Name :

Mukesh Rajendra and Company

Address :

A2/101, Akashnidhi Apartment, Times of India Road, Satelite, Ahmedabad – 380015, Gujarat, India

Tel. No.:

91-79-40041590

Mobile No.:

91-9712389900

Email :

Ca_mrgarg@yahoo.co.in

 

 

Secretarial Auditor :

 

Name :

Kamlesh M. Shah and Company

Address :

Ahmedabad, Gujarat, India

 

 

Cost Auditors:

 

Name :

Ashish Bhavsar and Associates,

Address :

Ahmedabad, Gujarat, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Enterprises significantly influenced by the Directors and or their relatives:
  • Mahendra Aluminium Company Limited
  • Krish Ferro Industries Private Limited
  • Mahendra Corporation

 

 

CAPITAL STRUCTURE

 

As on 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

11000000

Equity Shares

INR 10/- each

INR  110.000 Million

 

 

 

 

 

 

Issued, Subscribed and Paid Up Share Capital:

At The Beginning Period

30.183

Add: Issued During the Period

0.000

Add: Issued on Account of Merger / Conversion / Bonus / Split

10.329

Less: Deduction on Forfeiture of Shares

0.000

Issued Share Capital at the End of the Period

40.512

Less: Calls Unpaid (Showing Aggregate Value of Calls Unpaid by Directors and Members)

0.000

At the End of Reporting Period

40.512

Add: Equity Shares Forfeited

0.000

Total

40.512

 

The Reconciliation of the Number of Shares Outstanding as at March 31, 2017 and March 31, 2016 is Set Out Below

 

Equity Shares

                   31.03.2017

 

No of Shares

INR in Million

Shares Outstanding At The Beginning of The Year

3018300

30.183

Add: Shares Issued During The Year

1032857

10.329

Less: Buy Back / Forfeited Shares

0.000

0.000

Shares Outstanding At The End of The Year

4051157

40.512

 

 

The Details of Shareholder Holding More Than 5% Shares is Set out below

 

S.N.

Name of The Shareholder

                   31.03.2017

 

 

No of Shares

% of Holding

1

Mahendra R Shah

682400

16.84%

2

Jatin M Shah

608900

15.03%

3

Pushpaben M Shah

597700

14.75%

4

Rani J Shah

503900

12.44%

5

Jatin M Shah-HUF

180500

4.46%

 

The Company has only One Class of Ordinary Equity Shares and the Holders of these Ordinary Shares are entitled to receive Dividends as and when declared by the Company. All Shares rank Equally with regard to the Company’s Residual Assets.

 

During the financial year, the Company has issued 10,32,857 Convertible Warrants at INR 175/- (including INR 165/- as Securities Premium) per Warrant on Preferential Allotment basis and the same have been converted into equivalent no. of Equity Shares.

 

 

 

 

                                                                   


 

FINANCIAL DATA

[all figures are in INR Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

40.512

30.183

30.183

(b) Reserves & Surplus

498.383

207.537

146.888

(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)

538.895

237.720

177.071

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

46.214

109.490

24.710

(b) Deferred tax liabilities (Net)

17.789

11.708

9.740

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

64.003

121.198

34.450

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

560.161

321.811

311.118

(b) Trade payables

351.900

463.589

356.668

(c) Other current liabilities

11.376

10.381

2.902

(d) Short-term provisions

77.035

36.607

15.603

Total Current Liabilities (4)

1000.472

832.388

686.291

 

 

 

 

TOTAL

1603.370

1191.306

897.812

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

212.290

141.072

121.236

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

3.456

42.982

20.842

(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

3.672

1.925

1.951

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

219.418

185.979

144.029

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

41.200

0.000

0.000

(b) Inventories

713.736

618.948

440.818

(c) Trade receivables

582.890

328.981

231.814

(d) Cash and cash equivalents

32.955

39.635

38.559

(e) Short-term loans and advances

13.171

17.763

42.592

(f) Other current assets

0.000

0.000

0.000

Total Current Assets

1383.952

1005.327

753.783

 

 

 

 

TOTAL

1603.370

1191.306

897.812

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

3437.954

2728.756

2499.494

 

Other Income

9.210

9.618

9.913

 

TOTAL

3447.164

2738.374

2509.407

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2895.658

2331.748

2176.122

 

Purchases of Stock-in-Trade

3.951

1.897

44.228

 

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

(45.644)

38.629

(38.905)

 

Employees benefits expense

38.755

27.075

16.272

 

Other expenses

275.324

181.952

185.141

 

TOTAL

3168.044

2581.301

2382.858

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

279.120

157.073

126.549

 

 

 

 

 

Less

FINANCIAL EXPENSES

61.968

48.189

48.474

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

217.152

108.884

78.075

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

11.894

8.818

7.544

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

205.258

100.066

70.531

 

 

 

 

 

Less

TAX

75.081

33.968

23.818

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

130.177

66.098

46.713

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

148.985

95.836

56.839

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

Transfer to General Reserve

10.000

7.500

4.000

 

Proposed Dividend on Equity Shares

8.102

4.527

3.018

 

Residual Value of Fixed Assets Transferred

0.000

0.000

0.095

 

Tax on Dividend

1.649

0.922

0.603

 

Total

19.751

12.949

7.716

 

 

 

 

 

 

Balance Carried to the B/S

259.411

148.985

95.836

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

47.111

350.427

342.161

 

TOTAL EARNINGS

47.111

350.427

342.161

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

1271.917

805.768

710.932

 

Stores

0.066

0.061

0.000

 

Capital Goods

0.513

0.000

1.718

 

TOTAL IMPORTS

1272.496

805.829

712.650

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

40.08

21.90

15.87

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

9.620

8.918

1.643

Cash generated from operations

(215.608)

(15.212)

64.374

Net cash flow from operating activity

(215.608)

(15.212)

64.374

 

 

QUARTERLY RESULTS

 

Particulars

31.12.2017

30.09.2017

31.06.2017

Audited / Unaudited

Unaudited

Unaudited

Unaudited

 

1ST Quarter

2nd Quarter

3rd Quarter

Net Sales

1193.060

1050.370

969.390

Total Expenditure

1063.840

960.300

903.480

PBIDT (Excl OI)

129.220

90.070

65.910

Other Income

1.900

0.900

0.230

Operating Profit

131.120

90.980

66.140

Interest

17.850

14.000

14.640

Exceptional Items

NA

NA

NA

PBDT

113.270

76.980

51.500

Depreciation

3.730

3.250

4.170

Profit Before Tax

109.540

73.730

47.330

Tax

39.400

26.070

16.440

Provisions and contingencies

NA

NA

NA

Profit After Tax

70.140

47.660

30.890

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

70.140

47.660

30.890

 

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

61.88

44.00

33.85

 

 

 

 

Account Receivables Turnover

(Income / Sundry Debtors)

5.90

8.29

10.78

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

44.30

72.51

58.63

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.39

0.25

0.29

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

1.29

0.85

0.89

 

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

0.66

0.80

0.79

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

1.14

1.85

1.91

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

1.86

3.50

3.88

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

0.40

0.77

0.80

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

4.50

3.26

2.61

 

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

((PAT / Sales) * 100)

%

3.79

2.42

1.87

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

8.12

5.55

5.20

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

24.16

27.80

26.38

 

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

1.38

1.21

1.10

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.67

0.46

0.46

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

0.34

0.20

0.20

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

15.21

14.58

11.18

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

1.38

1.21

1.10

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10.00/-

Market Value

INR 510.00/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

30.183

30.183

40.512

Reserves & Surplus

146.888

207.537

498.383

Share Application money pending allotment

0.000

0.000

0.000

Net worth

177.071

237.720

538.895

 

 

 

 

Long Term borrowings

24.710

109.490

46.214

Short Term borrowings

311.118

321.811

560.161

Current Maturities of Long term debt

1.643

8.918

9.620

Total borrowings

337.471

440.219

615.995

Debt/Equity ratio

1.906

1.852

1.143

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2499.494

2728.756

3437.954

 

 

9.172

25.990

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

2499.494

2728.756

3437.954

Profit

46.713

66.098

130.177

 

1.87%

2.42%

3.79%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

Yes

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

GENERAL INFORMATION:

 

Nature of Industry

 

The Company is engaged in the business of manufacturing, trading and supply of Aluminium Products.

 

FINANCIAL HIGHLIGHTS AND STATE OF COMPANY'S AFFAIR

 

Company's revenue from the operation was INR 3867.784 Million for the Financial Year ended on March 31, 2017 which was higher by 26.03% in compare to previous year. Profit before Depreciation and Amortization, Interest and Tax (PBDIT) has been increased by 77.70% in compare to previous years' PBDIT. The Company has reported EBIDTA Margins of 8.12% of Net Sales which is higher by 236 bps as compared to previous financial year ended on March 31, 2016. Further, the Company has reported year on year increase in Profit after Tax of 96.94%. Significant increase in PBDIT and Net Profit is mainly on account of increased volume, increase in gross margins and improved operational efficiencies. In view of infrastructural development of growing Indian economy, the Directors are hopeful of even more increase in demand for Company's products resulting into satisfactory top and bottom line growth of the Company in coming years.

 

BUSINESS OVERVIEW

 

“Their customers are constantly in need to navigate their way carefully through an ocean of choices. When it comes to their requirements, they invariably look to place their trust in ethical Companies that are clear examples of quality and good standing.”

 

The year was marked by two major domestic policy developments, the passage of the Constitutional Amendment, paving the way for implementing the transformational Goods and Services Tax (GST), and the action to demonetize the two highest denomination notes. The GST will create a common Indian market, improve tax compliances and governance, and boost investment and growth. It is also a bold new experiment in the governance of India's cooperative federalism. Demonetization has had short-term costs but holds the potential for longterm benefits. Follow-up actions to minimize the costs and maximize the benefits include fast, demand-driven, re-monetization, further tax reforms, reducing tax rates and acting to allay anxieties about over-zealous tax administration. These actions would allow growth to return to trend in 2017-18, possibly making it the fastest-growing major economy in the world, following a temporary dip in 2016-17.

 

The Indian Economy has sustained a macro-economic environment of relatively lower inflation, fiscal discipline and moderate current account deficit coupled with broadly stable rupee-dollar exchange rate. Such a sustenance is despite continuing global sluggishness. As per the advance estimates released by the Central Statistics Office, the growth rate of GDP at constant market prices for the year 2016-17 is placed at 7.1%, as against 7.6% in 2015-16. For 2017-18, it is expected that the growth would return to normal as the new currency notes in required quantities came back into circulation and follow-up actions to demonetization are taken.

 

BUSINESS OVERVIEW

 

 “In a world full of options, their Products stand tall in the hearts and minds of their customers. They have faith in their products to be the caretakers of their interests and needs globally.This has, in turn, transformed us into a leading Aluminium Company globally, that sells top quality Aluminium products.”

 

Against this challenging environment, Arfin has delivered an exceptional performance. The Company has delivered highest ever volume, sales, EBIDTA and Net Profit. The operating efficiencies are improving following ramp up of existing furnace of Aluminium Wire Rod plant. This has improved the output and cost efficiencies to the manufacturing of Aluminium Wire Rod product. The Company's focus on value added products is also yielding desired results and is set to contribute significantly to the profitability.

 

Commercial production from Conductor and Cables plant is expected to start from second half of 2017- 18. The Company has received all regulatory approvals and is eligible for supply to State Electricity Board Companies.

 

Aluminium Alloy and Cored Wire businesses have outperformed during the year. Sales from Cored Wire business has almost been doubled and Sales from Alloy business has increased by more than 500% in compare to previous year. Aluminium Wire Rod and Aluminium Deox businesses have also performed well and have been able to maintain the level of sales and volume.

 

During the year, second plant of Cored Wire got operational and started commercial production and sales during last quarter. Also the Company has entered into new line of business through addition of new product lines of Master Alloys and Ferro Alloys. The Company has started commercial production and sales from Master Alloys and Ferro Alloys vertical during last quarter of the year. Master Alloy is a base metal such as Aluminium, Copper or Nickel combined with a relatively high percentage of one or two other elements. It is a semi-finished product and is manufactured for its usage as a raw material by the Metal Industry.

 

“Seizing new growth opportunities by adding value-added products and creating the right environment for balanced growth that will further differentiate us and drive future growth.”

 

The Company has seeded several initiatives and projects that will bear fruits in the upcoming years. The Company has diversified its businesses through addition of more product lines and covering supply to Steel Sector, Automobile Sector and Power Sector. Also, ongoing focus on continuous improvement is helping us to achieve even greater efficiencies.

 

The Company has sold 24,100 metric ton of goods registering year on year volume growth of 20.45% during the year although the market sentiment was quite slow during third and fourth quarter of the year on account of demonetization of high value notes. The last quarter of the year was bumper quarter posting highest quarterly sales and profit for the Company.

 

They are pleased to share that Arfin has been awarded under “India SME 100 Awards” amongst 41,832 nominations on the basis of 2015- 16 performance. The award was given by Shri Kalraj Mishra, Honorable Minister of MSME, Government of India at New Delhi on May 6, 2017. The Company aims to be a leader in its business segment through its product lines viz. Aluminium Wire Rod, Aluminium Deox, Cored Wire, Alloy Products, Automobile Parts,Cable and Conductors, Master Alloys and Ferro Alloys. Out of these, Aluminium Wire Rod, Aluminium Deox, Cored Wire and Alloy businesses are matured businesses. The Company started Master Alloys and Ferro Alloys business during last quarter of the year and is expecting big volumes during 2017-18.

 

During the last fiscal year, overall capacity utilization of Aluminium Producers in India has increased due to increased demand and infrastructure growth on account of government policies. Average LME prices of aluminium were increased to USD 1,950 per metric ton during last fiscal year which were higher by 11% in compare to previous year's average LME prices. However, the Indian economy will remain the world's fastest growing economy on account of policy and reform measures the government has taken in last three years.

 

 

“The Government's push on the infrastructure front will give an added incentive to the Aluminium Industry. The Company has healthy plans to positively ride this next phase of growth in India.”

 

Indian economy has a huge infrastructure demand looking at current infrastructure which will push growth of the Company. Demand for Aluminium is estimated to grow at 6%-8% per annum in view of the low per capita consumption in India. Demand for the metal is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation. The Indian aluminium demand is expected to remain robust following the steps taken by the government to boost the industrial production and infrastructure. The demand is also expected to get a boost following the focus on smart cities and improving prospects of business and construction industry. The other segments that are expected to see enhanced aluminium demand are automobile and food packaging industry. Rapid urbanization, as the country continues to develop towards a more consumer-focused economy, should augment consumer-driven demand and will help in sustaining strong growth in aluminium demand into the next decade

 

Overall, all the developments are in the positive direction and in the segments which happened to be the areas of focus for the Company. During the year, Arfin has been able to manage well due to balanced portfolio of products, improved operational efficiencies and increase in margins.

 

The success of the Aluminium Industry is attributed to the sharp focus on the product lines leading to better cost control, better customer service and consequently faster growth at higher profitability.

 

“At Arfin, their strong and energetic team helps reinforce the foundation of their business. They always try to attract, develop and maintain the best talent. They stand strong on their commitment to provide growth opportunities to every employee, hence creating a coordination between business requirements and employees.”

 

Employee training programs are integral to their HR department. Recognizing people as their biggest asset, they provide advanced quality training to employees. The Company constantly launches and takes initiatives that contribute to happier and more productive talent. It is on the belief that a happier employee has a greater drive to perform and adapt to meet changing needs. The Company always believe that its biggest asset has been the people employed in its business who come from a large cross section of social and economic backgrounds.

 

They believe an engaged work force connects better, performs better and adds better values to a business. Therefore, they organize several employee engagement activities throughout the year to remain close to employees and ensure better business performance. The themes set for the year were simplicity, happiness, satisfaction and keep growing that lead to building a performance driven culture. A performance driven culture demands higher efficiency and productivity and the key to achieving higher productivity is attraction, development and nurturing of higher caliber individuals. Keeping this objective in mind, the HR Department of the Company has taken number of innovative initiatives. The main objective is to meet the organizational goals and unless not fully sentiment with significant role of the HR, an organization cannot attain evolution through its human capital.

 

“At Arfin, They see an incredible opportunity to drive growth of all their stakeholders. By making every aspect of their business sustainable, they reaffirm their commitment to a better world. In everything they do, they ensure that they keep growing.”

 

The Company is fastest growing in its business segment and is under process of organizing its production and warehousing activities through systematic allocation of space for each of the business vertical. During the year, the Company has installed second plant of Cored Wire in new separate shed and is also planning to shift existing plant of Cored Wire to this shed. Once both the Cored Wire Plants get shifted under one shed it would be easier to manage with common manpower and common infrastructure for both the plants. It will further improve operational efficiencies and reduce the common costs. The Company has allocated separate space for warehousing of finished goods and raw materials. Separate space with separate boundaries has been allocated for warehousing of finished goods and raw materials which gives more visibility of stock position at any point of time to take business decisions. During the year, the Company has started manufacturing of Master Alloys and Ferro Alloys products. For this, the Company has allocated a separate shed for Master Alloys and Ferro Alloys production facilities. Separate allocation of space differentiates the inventories of the respective business verticals and easy to manage. The Company has separate laboratory set ups for different business verticals. There is separate laboratories for quality testing of Aluminium Deox Products, Aluminium Wire Rod, Cored Wire, Aluminium Alloys, Master Alloys and Ferro Alloys and Conductor and Cable products before sale to the customers. Each and every batch of production is tested for quality check before supplying to the customers. The Company has in-house quality testing team which is fully equipped and dedicated for inspection and testing of materials. The Company has created total production capacity of 55,400 metric tons per annum.

 

“The Company has strong information and communication network which supports and captures the exchange of information enabling the employees to efficiently carry out their responsibilities.”

 

The Company has well established internal control procedures across all business vertical commensurate with the size and nature of operations. The policies, procedures and systems are well laid out and regularly monitored by the top Management ensuring all deviations are always within control. The Company also ensures that financial and operating reporting systems are reliable and that all material risks are evaluated. The Company has strong information and communication network which supports and captures the exchange of information enabling employees to efficiently carry out their responsibilities. The Company also has a review mechanism whereby the Management regularly reviews actual performance in comparison to the plans.

 

There is a separate in-house team which constantly analyses, understands and works upon to reduce the cost of production without any impact on quality of products manufactured. Arfin envisages strong growth in near term as economic growth has picked up and the government is promoting infrastructure investments and consumption through various initiatives taken during last 3 years post formation of new government in central. The Company also envisages robust growth on the horizon too, as the sectors it cater to are not only large but also growing and it is still quite under-penetrated from the perspective of infrastructure. To ready itself for this take off in growth, the Company has put in place robust Internal Risk Management systems and processes and supportive technology.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Industry Structure and Developments

 

India is one of the huge producers of aluminium in the world and Aluminium is the largest non-ferrous industry in the world economy and also one of the significant industries in the Indian economy. The Indian industry is likely to see double digit growth over next few years due to consistently growing demand from construction and automobile sectors. The per capita consumption of aluminium metal in India is considerably lower than that in developed countries. Thus, there is vast scope for the industry to develop.

 

The Company is operating in multiple products of aluminium and this multiplicity of operations minimizes the operating eventualities. The development is visible from the improved performance of the Company. The performance, as usual, has significantly improved during the financial year 2016-17. The Company has reported year on year increase in Profit after Tax at substantial level which is mainly on account of increased volume, increase in gross margins and improved operational efficiencies. The growth shows a remarkable performance as the Company remained unaffected by deflationary scenario in global economy and factors like demonetization.

 

The yield and profitability ratios of the Company also registered consistent and visible growth in the F.Y. 2016-17. In last report for F.Y. 2015-16, the Company has referred the Power Segment as segment with most potential and also indicated that this segment would be highly beneficial to the Company in future.

 

PRODUCT / PLANT WISE PERFORMANCE

 

The Company is engaged in the business of manufacturing and trading of non-ferrous metal and does not have any other segment or activity. Hence segment wise reporting is not required to be given. Product / Plant wise performance has been given as follows:

 

Aluminium Wire Rod

 

This plant has installed capacity of 15,000 metric tons per annum. The sales from this plant during the financial year under report was INR 1321.400 Million with quantity of 7,710 metric tons. The Company expects Aluminium Wire Rod product sales volume to increase in the range of 5 to10% during financial year 2017-18.

 

Aluminium Deox

 

This plant has installed capacity of 20,000 metric tons per annum. The sales from this plant during the financial year under report was INR 1511.700 Million with quantity of 9,806 metric tons. The Company expects Aluminium Deox product sales volume to increase in the range of 5 to 10% during the financial year 2017-18.

 

Cored Wire

 

The Company is having Cored Wire Plant with total installed capacity of 1,200 metric tons per annum. During the year, the Company has installed second plant of Cored Wire with the capacity of 600 metric tons per annum. The sales from this plant during the financial year under report was INR 313.500 Million with quantity of 690 metric tons. The Company expect to increase sales from Cored Wire Products in the range of 5 to 10% for the financial year 2017-18.

 

Aluminium Alloy Ingots

 

The Company is having installed capacity of 6,000 metric tons per annum of Aluminium Alloy plant. The sales during the financial year stood at 4,464 metric tons amounting to INR 6,998 Lacs which is higher by more than 500% in compare to previous year. This business has got matured during the year

 

Outlook

 

The future for Aluminium and Aluminium products in India looks favorable with the low per capita consumption in the country coupled with chances of better opportunities. Awareness of the utility of aluminium in various industrial sectors is growing and it provides a lower cost option as compared to various metals in different sectors.

 

BUSINESS HIGHLIGHTS

 

The Company has shown significant growth during the financial year ended on March 31, 2017. Increased Volume, Change in Product Mix, Increased Customer Demand, Increased Margins and Improved Operational Efficiencies during the financial year 2016-17 have resulted consistent growth for the Company. Better Market Sentiments and New Product Lines have resulted increase in volume and sales during the year. Aluminium Alloy and Cored Wire Businesses have contributed significantly along with Aluminium Wire Rod and Aluminium Deox verticals during the year. The salient points for the business overview of the Company during the financial year 2016-17 are as follows:

 

• Total Income from Operations of INR 3438.000 Million with year on year growth of 25.99%

• EBIDTA of INR 279.100 Million

• EBIDTA Margins of 8.12% of Net Sales (higher by 236 bps as compared to previous year)

• Year on year increase in Profit After Tax of 96.94%

• Increase in basic EPS from INR 21.90 to INR 40.08 per share

• Set up of Master Alloys and Ferro Alloys Plant

• Operationalization of the second Cored Wire Plant

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Loans and Advances From Related Parties:

 

 

Mr. Mahendra R. Shah

1.428

13.572

Mr. Jatin M. Shah

2.585

13.665

Mrs. Pushpa M. Shah

0.338

10.990

Other Loans and Advances:

 

 

Inter Corporate Deposits

35.500

56.500

 

 

 

Total

39.851

94.727

 

 

INDEX OF CHARGES:

 

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Date of Satisfaction

Amount

Address

1

G72127269

100089149

State Bank of India

14/03/2017

30/11/2017

-

370000000.0

SME Law Garden Branch, Zodiac AvenueOpposite Commissioner Bungalow, Law GardenAhmedabadGJ380006IN

2

G72127780

100089147

State Bank of India

14/03/2017

30/11/2017

-

370000000.0

SME Law Garden Branch, Zodiac AvenueOpposite Commissioner Bungalow, Law GardenAhmedabadGJ380006IN

3

G11145240

100048672

HDFC BANK LIMITED

17/08/2016

-

-

1450000.0

HDFC Bank HouseSenapati Bapat Marg, Lower Parel (West)MumbaiMH400013IN

4

C75991463

10613468

HDFC BANK LIMITED

22/12/2015

-

-

7950000.0

HDFC Bank House, Senapati Bapat MargLower Parel WestMumbaiMH400013IN

5

C65723736

10594080

TATA CAPITAL FINANCIAL SERVICES LIMITED

23/09/2015

-

-

50000000.0

One Forbes,Dr. V. B. Gandhi Marg, FortMumbaiMH400001IN

6

G42662684

10527050

IDBI Bank Limited

30/08/2014

14/03/2017

-

180000000.0

IDBI Tower, WTC Complex,Cuffe ParadeMumbaiMH400005IN

7

C30638159

10478261

AXIS BANK LIMITED

20/01/2014

08/10/2014

-

378700000.0

CORPORATE BANKING BRANCH, 2ND FLOOR,3RD EYE ONE, NR. PANCHVATI CIRCLE, C.G. ROAD,AHMEDABADGJ380009IN

8

G42971747

10335497

Axis Bank Limited

11/01/2012

14/03/2017

-

198700000.0

CORPORATE BANKING BRANCH, 2ND FLOOR3RD EYE ONE, NR. PANCHVATI CIRCLE, C.G. ROADAHMEDABADGJ380009IN

9

G06186951

10332800

Axis Bank Limited

03/06/2010

25/02/2013

06/04/2016

695700000.0

TRISHUL 3RD FLOOR OPP SAMARTHESHWAR TEMPLELAW GARDEN ELLISBRIDGEAHMEDABADGJ380006IN

10

C66731134

10385514

Axis Bank Limited

21/09/2012

-

20/09/2015

2307360.0

RAC Ahmedabad, CV/ CE Department, 4th FloorShivalik Ishan, Nr. C. N. Vidhyalaya, AmbawadiAHMEDABADGJ380006IN

 

 

CONTINGENT LIABILITIES:

 

(INR in million)

PARTICULARS

31.03.2017

31.03.2016

Claims against the Company / Disputed Liabilities not acknowledged as debts

3.709

0.000

Guarantees issued by Bank to Custom Department

6.931

0.000

Note:

 

During the year, till the month of August 2016, the Company has imported raw material Throb Ingots and paid custom duty as per the applicable rate i.e. 2.50% of material value, considering as it is raw material for the Company. From the month of August 2016, the Company has imported same material and Custom department (Mundra Port and Ahmedabad ICD) has issued notice considering the same material as finished goods and demanded custom duty @7.50% of material value. The matter went for debate and only for the clearance of material from custom department, the Company has deposited difference amount as extra custom duty of INR 3.709 Million (At Mundra Port) and given Bank Guarantee for extra custom duty of INR 6.931 Million (At Ahmedabad ICD) at the cost of litigation against the custom department.

 

Company has filed appeals before Commissioner of Custom Appeals, Ahmedabad, against the custom demand and according to lawyer’s opinion, the Company has sufficient merit to succeed in due course of litigation. The Company has not provided provision for the above since as the Company’s Management does not consider that there is any probable loss.

 

 

FIXED ASSETS

 

  • Freehold Land
  • Factory Land
  • Factory Building
  • Plant and Machineries
  • Computer
  • Furniture and Fixtures
  • Vehicles
  • Office Equipment
  • Office Building Pelican House

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2017

 

        

 

 

Particulars

QUARTER ENDED

9 months ended

 

 

 

31.12.2017

30.09.2017

31.12.2017

1

 

Income from Operations

 

 

 

 

 

Sales/Income from Operations (Gross)

1193.062

891.885

3054.333

 

 

b) Other Income

1.897

0.895

3.017

 

Total Income from Operations (Net)

1194.959

892.780

3057.350

2

Expenses

 

 

 

 

a)

Cost of Materials consumed

982.064

731.808

2412.907

 

b)

Purchase of Stock-in-trade

0.000

0.000

0.000

 

c)

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

(40.880)

(1.128)

(11.688)

 

d)

Excise Duty

0.000

0.000

108.139

 

e)

Employee benefit expenses

16.539

13.601

39.159

 

f)

Finance Costs

17.845

13.998

46.480

 

g)

Depreciation and amortization expense

3.725

3.248

11.143

 

h)

Other expenses

106.126

62.879

220.620

 

Total Expenses

1085.419

819.060

2826.760

 

 

 

 

 

7

Profit /(Loss) from ordinary activities after finance costs but before exceptional items

109.540

48.230

230.590

8

Exceptional Items

--

--

--

9

Profit /(Loss) from ordinary activities before tax

109.540

48.230

230.590

10

Tax Expense

39.403

26.065

81.904

11

Net Profit /(Loss) from ordinary activities after tax

70.137

47.655

148.686

 

Other Comprehensive Income

0.307

0.804

1.969

 

Total Other Comprehensive Income for the period

70.444

48.459

150.655

 

 

 

 

 

12

Paid up equity share capital (Eq. shares of  INR 10/- each)

121.535

40.512

121.535

13

Reserve excluding revaluation reserves

 

 

 

14

 

Earnings per share (before/after extraordinary items) of  INR 10/- each

 

 

 

 

 

Basic & Diluted

8.04

11.76

26.49

 

Note:

 

1. The Company has adopted Indian Accounting Standards ("IND AS") w.e.f. April 1, 2017 and accordingly these Financial Results have been prepared in accordance with recognition and measurement principles laid down in the IND AS 34 "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and the other accounting principles generally accepted in India. Financial Results for all the periods presented have been prepared in accordance with the


2. The statement does not include Ind AS compliant result for the previous year ended March 31, 2017 as the same is not mandatory as


3. The Company is engaged in a single segment of manufacturing and trading of Non Ferrous Metals.


4. Consequent to the introduction of GST w.e.f. July 1, 2017, the Excise Duty is subsumed under GST. In accordance with Ind AS 18, Revenue from Operations for the quarter ended December 31, 2017 is presented net of GST whereas the Excise Duty for the previous periods were included in the Revenue from Operations, and thus it is not comparable with previous periods.


5. The above Financial Results have been reviewed by the Audit Committee and approved and taken on record by the Board of Directors in their meetings held on Wednesday, January 24, 2018.


6. The Financial Results and other financial information for the quarter ended December 31, 2016 have been reviewed and have been presented based on the information compiled by the management after making the necessary adjustments to give a true and fair view.


7. Pursuant to the recommendation made by the Board of Directors at their meeting held on Sunday, September 10, 2017 and subsequent approval of shareholders therefor, the Company has, on Friday, November 3, 2017, issued and allotted 81,02,314 equity shares of INR 10/- each to the shareholders holding shares as on the record date fixed for this purpose, i.e. Thursday, November 2, 2017 in the ratio of 2:1 i.e. in the proportion of 2 (Two) new fully paid-up equity share of INR 10/- (Rupees Ten Only) each for every 1 (One) existing fully paid-up equity share of INR 10/- (Rupees Ten only) each. Consequent to the aforesaid allotment of bonus equity shares, the share capital of the Company stands increased to INR 121.535 Million divided into 12.153 Million fully paid up equity shares of INR 10/- each. The


8. Subsequent to receipt of no objection / observation letter from the Bombay Stock Exchange dated Thursday, August 17, 2017 and pursuant to the requirements of the order made on Friday, October 13, 2017 by the Hon'ble National Company Law Tribunal (NCLT), Ahmedabad Bench, meetings of shareholders of Arfin India Limited and of secured and unsecured creditors of both Arfin India Limited and Mahendra Aluminium Company Limited (Transferor Company) have been duly convened and held on Wednesday, December 13,


9. Mr. Bherulal Lalchand Chopra resigned and thus ceases to be a Director of the Company w.e.f. Friday, November 3, 2017. The Board of Directors, at its meeting held on Thursday, November 9, 2017, has appointed Mr. Mukesh Shankerlal Chowdhary (DIN: 00025877) as an Additional Independent Director of the Company and Ms. Kruti Sheth as Company Secretary and Compliance Officer of the Company.


10. The Board has accorded its approval for raising of funds through further issue of shares or convertible securities of any nature through one or more modes, including but not limited to a further public or private offerings, rights issue, qualified institutions placement, issue of american depository receipts or global depository receipts etc. up to an amount not exceeding INR. 1500.000 Million


11. Figures for the previous periods are re-classified / re-arranged / re-grouped, wherever necessary, to correspond with the current


12. The Company doesn't have any exceptional or extraordinary item to report for the above periods.


13. The Statutory Auditors of the Company have carried out "Limited Review" of the above Unaudited Financial Results.

14. Reconciliation of profit reported in accordance with previous Indian GAAP (IGAAP) to Total Comprehensive Income in accordance.

 

 

 

 

PRESS RELEASE

 

ARFIN INDIA RECOMMENDS BONUS ISSUE

 

Arfin India Limited has informed BSE that the Board of Directors of the Company at its meeting held on September10, 2017 has, subject to further approval of members of the Company, recommended issuance of Bonus Shares to the members of the Company by Capitalization of its reserves in the ratio of 2(Two) bonus equity share of Rs. 10/- each fully paid-up for every 1(One) existing equity share of INR 10/- each fully paid-up (i.e. in the ratio of 2:1) held by the members as on 'Record date' to be fixed hereafter for the purpose.

 

 

 

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 records 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 records 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

INR

US Dollar

1

INR 63.61

UK Pound

1

INR 90.17

Euro

1

INR 78.94

 

 

INFORMATION DETAILS

 

Information Gathered by :

GYT

 

 

Analysis Done by :

PRD

 

 

Report Prepared by :

SUJ

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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