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This report was published on 9th sept09 by CARE.Pl read and give your comments
CARE ASSIGNS ‘A’ RATING TO THE NCD ISSUE OF
AFTEK LTD.
CARE has assigned a ‘CARE A’ (Single A) rating to Aftek’s proposed Non Convertible
Debentures (NCD) aggregating Rs.50 crore.
Instruments with this rating are considered to offer adequate safety for timely servicing of debt obligations. Such instruments carry low credit risk.
CARE assigns `+` or `-` signs to be shown after the assigned rating (wherever
necessary) to indicate the relative position within the band covered by the rating
Rating Rationale
The rating is based on Aftek’s more than twenty year track record, comfortable
liquidity position, low debt levels and high interest coverage ratio, high profit margins,strength of Aftek’s technical team, diversification efforts undertaken and the company’s capacity to generate cash.The rating, however, is constrained by the dependence on uncertain export market,technology & product life-cycle risk and negative outlook of the industry in the shortto-medium term.
The ability of the company to launch its new products successfully and to effectively integrate its acquisitions remains the key rating sensitivities
Company Profile
Aftek was established in 1986 when it started with selling assembled computers and peripherals. Post 1995, after gaining substantial exposure in the IT industry, Aftek started offering software services which form more than 90% of its offerings. Aftek is mainly engaged in providing services in Information Technology, embedded systems,hardware engineering, testing services and solutions.
Aftek was traditionally engaged in the capacity of an intermediary between the
customer and the testing-services provider. The company has planned to introduce product/offerings of its own to the customers, which will help Aftek diversify its business and improve margins. Moreover, the new offerings are primarily aimed at domestic market which would not carry the foreign exchange risk posed by a highly export dependent revenue structure in the past.Aftek had reported a total income of Rs.392.54 crore and earned a PAT of Rs.80.94crore in FY08.
The gearing ratios of the company were comfortable as at end of FY07, FY08 and FY09 (provisional). Interest coverage has been fairly adequate due to strong operation margin and low gearing levels.
In FY09, (as per provisional results) Aftek reported a loss of Rs.6.95 crore due to diminution in value of investments of its subsidiary Arexera AG, which was notional in nature. Notwithstanding the above, Aftek’s liquidity position was comfortable as it had high level of cash balances.Analyst Contact
Name: Umeshpratap Singh
Email: umesh.singh@careratings dot com
...
Which rally r u talking about !!!...
Where is 360 Crore
Posted by :
pr_stock_expertNo body discusses where is 360 crore. Is that 360 Crore on paper?...
aftek
Posted by :
stocktobuylet the rally start it will surely tocuh the expected levels.. ...
BSE Announcements on Aftek
Posted by :
dk_bbsThanks a lot for ur views....
BSE Announcements on Aftek
Posted by : Barat
No one is supreme than the promoters. If they become a pain during the audit, they ll be promptly shown the doors.
Its been a trend to change auditors frequently so that promoters can achieve their goals
Cheers
Barat...
BSE Announcements on Aftek
Posted by : dk_bbsSorry, but can the auditors change the promoters attitude! May be they will get changed! Thanks...
BSE Announcements on Aftek
Posted by : vbrtc01
I had read somewhere that the promoters of seekport were Indian and directly or indirectly related to the promoters of AFTEK. AFTEK had paid more than 100 times the reasonable value of SEEKPORT to the promoters of seekport. The same strategy was also adopted in respect of purchase of ELVEN which had common promoters. It is a good thing that the auditors have asked for provision to be made in respect of investment in seekport. Any value realised for IPs in seekport will be a type of secret reserve. Hope the current auditors continue for few more years. Their accounts are becoming more transparent.
Cheers...
BSE Announcements on Aftek
Posted by : Barat
Dear fds,
Cash balance is a nice factor but its all left to the crooked promoters. We have seen such types of reserves vaporized in one Qtr results.
We all hoped that at some point these type of promoters will fill their belly and take it up to reward themselves big and in the process we too get rewarded. Hence its a patience game.
But one doesnot know how much big is their belly.. So much of greed on the expense of investors... Our regulators can humble kumbakarn....
BSE Announcements on Aftek
Posted by :
fds
Erlier they tried to postpone the AGM giving reason of financial data corruption
which was rejected by ROC.Now they purposely delay the annual reports.once the auditors certify the cash balance of 350+ crores the stock price will zoom above 50 in no time.mean while they may work some scheme to take benefit of the current stock price...
BSE Announcements on Aftek
Posted by : fds
Dear friends
They have deliberatly thrown the ball to the retail investors to play and periodically injecting fear and confusion
in the minds so that the price is under control.now one need to wait for annual report of directors,auditors and the status of cash balance of 350+ crores
No need to panic.there is nothing wrong with the company....
BSE Announcements on Aftek
Posted by : karshin
dear dear barat,
Yes I was tired when I returned from Africa. Now enjoying this Board and interaction with old friends like you.
I had purchased this share at 147 and afterwards tried to average it. Any way I know their promoters. I am sure they will give me a chance to exit. It is in their interest to jack up the price. They will do it as they are expert manipulators. Only we will have to keep patience...
BSE Announcements on Aftek
Posted by : Barat
Dear Karshin,
Guess your back with renewed energy.
i was so tempted to pick it up some during 2009 lows but couldn`t afford two of its kind in my kity at that time.
Its heartening to see what they had done to seekport. Vapourised in one announcement.
cheers
Barat...
BSE Announcements on Aftek
Posted by : karshinI am not so sure about its fundamental but I am sure about the ability of its promoters. They will not miss the opportunity....
BSE Announcements on Aftek
Posted by : racetrack2002How can u be sure of it ,,,when the index was 7500 it came to 6.00 only and when it was 18000 it hardly touched 22 ..this is just a illusion .i think it a worst stock to invest in...
