MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
EASTMAN CAST AND FORGE LIMITED |
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Registered Office : |
RB-06, Inderpuri New Delhi, Delhi-110012 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.07.1986 |
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Com. Reg. No.: |
024925 |
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CIN No.: [Company
Identification No.] |
U27109DL1986PLC024925 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE02705D |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock exchange. |
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Line of Business : |
Manufacturer of Hand Tools and Forging |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 310000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
A-3 Marble Arch Appt. 9, Prithvi Raj Road, New Delhi:110011, India |
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Tel. No.: |
91-11-24648925 |
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E-Mail : |
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Website: |
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Corporate Office / Factory : |
G.T. Road, Near Aitrport, Lundhiana -141120(indi) |
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Tel. No.: |
91-161-2511440 / 2511441 / 2511442 / 2511443 |
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Fax No.: |
91-161-2511444 |
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E-Mail : |
sales@eastmanhandtools.com
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DIRECTORS
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Name : |
Mr. Jagdish Rai Singal |
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Designation : |
Managing Director |
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Address : |
610-11 B, Aggar Nagar, Ludhiana, Punjab |
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Date of Birth/Age : |
03.01.1946 |
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Date of Appointment : |
24.07.1986 |
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Name : |
Mr. O.P. Sahni |
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Designation : |
Director |
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Address : |
317, F, Kitchul Nagar, Civil Lines, Ludhiana, Punjab |
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Date of Birth/Age : |
16.12.1941 |
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Date of Appointment : |
28.09.1991 |
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Name : |
Mr. Darhana Singal |
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Designation : |
Whole Time Director |
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Address : |
610-11, B, Aggar Nagar, Ludhiana, Punjab |
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Date of Birth/Age : |
11.08.1947 |
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Date of Appointment : |
19.12.1995 |
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Name : |
Ms Reema Jain |
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Designation : |
Director |
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Address : |
87-L, Model Town, Ludhiana, Punjab |
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Date of Birth/Age : |
29.11.1974 |
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Date of Appointment : |
10.06.1996 |
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Name : |
Mr. Ranjodh Singh |
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Designation : |
Director |
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Address : |
4-209, Dew Drop, Randhir Singh Naga, Ludhiana, Punjab |
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Date of Birth/Age : |
03.06.1965 |
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Date of Appointment : |
30.09.1997 |
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Name : |
Mr. Joginder Singh Juneja |
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Designation : |
Director |
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Address : |
E-9/4, Vasant Vihar,New Delhi |
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Date of Birth/Age : |
19.07.1937 |
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Date of Appointment : |
30.09.1997 |
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Name : |
Mr. Surinder K Singhal |
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Designation : |
Director |
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Address : |
h-No 86 Lakshmi Ladi Es Club, Rakh Bagh Civil Lines Ludhiana, Punjab |
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Date of Birth/Age : |
16.03.1935 |
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Date of Appointment : |
30.09.1999 |
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Name : |
Mr. Satish Kumar Vadera |
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Designation : |
Director |
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Address : |
132, Basant Vihar, Jawadi, Ludhiana, Punjab |
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Date of Birth/Age : |
10.3.1944 |
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Date of Appointment : |
09.06.2004 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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Sh. J.R. Singal |
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1494380 |
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Sh. Ashwani Kumar Garg |
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10 |
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Sh. Ram Krishna Gupta |
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10 |
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Smt. Darshana Singal |
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1000 |
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Ms. Nidhi Singal |
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100 |
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Sh. Shekar Singal |
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3000 |
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Ms. Vandana S Aggarwal |
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100 |
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Ms. Reemka Jain |
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100 |
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Sh. Harshit Rai Singal U/G Ms. Shreya Singal |
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100 |
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Ms. Shreyaa Singal |
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100 |
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Ms. Vanda Aggarwal U/G Ms. Vandana S. Aggarwal |
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100 |
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Sh. Abhishek Aggarwal U/G Ms. Vandana S. Aggarwal |
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100 |
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Sh. Alok Aggarwal |
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100 |
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Ms. Meenakshi Jain. |
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100 |
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Ms. Ishani Jain U/G Ms. Meenakshi Jain |
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100 |
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Sh. Rishab Jain U/G Ms. Meenaksh Jain |
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100 |
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Sh. Vineet Jain |
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100 |
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Ms. Shruti Garg U/G Ms. Monika Garg |
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100 |
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Ms. Monika Garg |
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100 |
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Varun Garg U/G Ms. Monika Garg |
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100 |
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Sh. Rajesh Garg. |
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100 |
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Total: |
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1500000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hand Tools and Forging |
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Products : |
Hand Tools Other Hand Tools Scrap |
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Exports : |
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Countries : |
France, Belgium,Panama, Peru, Portugal and sell through export hose to
Japan, Germany, Switzerland, Holland and OEM’s such as Hero Honda, TAFE,
Swaraj, HMT, Kirloskar Bajaj Auto, Mahindra and Mahindra. |
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GENERAL
INFORMATION
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No. of Employees : |
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Bankers : |
State Bank of India Overseas Branch, Savitri complex, Ludhiana |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
R. D. Khanna Chartered Accountant |
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Address : |
Dass Khanna and company B-XX-771, first floor, Gurdev Nagar, Pakhowal Road, Ludhiana:141001
Punjab |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/-(each) |
Rs.15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/-(each) |
Rs.15.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15.000 |
15.000 |
15.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
63.589 |
44.169 |
36.291 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
78.589 |
59.169 |
51.291 |
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LOAN FUNDS |
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1] Secured Loans |
105.293 |
85.264 |
34.373 |
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2] Unsecured Loans |
6.000 |
1.500 |
1.700 |
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TOTAL BORROWING |
111.293 |
86.764 |
36.073 |
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DEFERRED TAX LIABILITIES |
5.614 |
4.160 |
3.722 |
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TOTAL |
195.496 |
150.093 |
91.087 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
51.308 |
38.519 |
27.964 |
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Capital work-in-progress |
0.287 |
0.000 |
0.592 |
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INVESTMENT |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
84.030
|
76.809 |
26.390 |
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Sundry Debtors |
107.730
|
87.071 |
68.132 |
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Cash & Bank Balances |
15.952
|
12.211 |
11.094 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
28.950
|
18.658 |
9.990 |
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Total
Current Assets |
236.662
|
194.749 |
115.606 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
82.411
|
78.935 |
52.025 |
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Provisions |
10.350
|
4.240 |
1.050 |
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Total
Current Liabilities |
92.761
|
83.175 |
53.075 |
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Net Current Assets |
143.901
|
111.574 |
62.531 |
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MISCELLANEOUS EXPENSES |
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TOTAL |
195.496 |
150.093 |
91.087 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
482.663 |
396.811 |
246.650 |
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Other Income |
14.580 |
12.887 |
15.390 |
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Total Income |
497.243 |
409.698 |
262.04 |
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Profit/(Loss) Before Tax |
31.386 |
12.551 |
3.479 |
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Provision for Taxation |
11.965 |
4.672 |
1.159 |
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Profit/(Loss) After Tax |
19.421 |
7.879 |
2.320 |
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Expenditures : |
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Raw Material Consumed |
73.409 |
71.309 |
54.799 |
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Manufacturing Expenses |
0.000 |
0.000 |
43.376 |
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Hand Tools |
0.000 |
0.000 |
77.360 |
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Personal Expenses |
0.000 |
0.000 |
30.059 |
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Administrative and other Expenses |
0.000 |
0.000 |
12.899 |
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Financial Expenses |
0.000 |
0.000 |
2.448 |
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Selling Expenses |
0.000 |
0.000 |
32.736 |
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Purchases made for re-sale |
181.688 |
141.108 |
0.000 |
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Consumption of stores and spares parts |
52.917 |
51.932 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.0000 |
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Salaries, Wages, Bonus, etc. |
39.310 |
37.878 |
0.000 |
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Managerial Remuneration |
1.379 |
0.859 |
0.000 |
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Payment to Auditors |
0.116 |
0.102 |
0.0000 |
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Interest |
8.817 |
4.635 |
0.000 |
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Insurance Expenses |
1.911 |
1.589 |
0.000 |
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Power & Fuel |
25.520 |
20.508 |
0.000 |
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Depreciation & Amortization |
4.563 |
3.857 |
3.880 |
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Other Expenditure |
76.227 |
63.370 |
0.000 |
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Total Expenditure |
465.857 |
397.147 |
257.557 |
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KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.90
|
1.92 |
0.88 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.50
|
3.16 |
1.41 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.89
|
5.38 |
2.42 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.21 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
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11.80
|
1.40 |
1.03 |
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Current Ratio (Current Asset/Current Liability) |
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2.55
|
2.34 |
2.17 |
LOCAL AGENCY
FURTHER INFORMATION
The registered office of the company has been
shifted from A 3 Marble Arch Apartments 9 Prithvi Raj Road,
New Delhi: 110011 Delhi India to the
present address w.e.f 01/12/2006
Eastman Industries Limited has been recognized as Trading House
(Exports) by ministry of Commerce, government of India. As per para 12.5 of
EXIM policy of Government of India, FOB value of USS 24 million in Prceding
financial is required to become a trading house (Exports). The Group :Eastman
Cast and Forge Limited.
Fixed Asset:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Vechicle
- Trade Mark
|
Name of the company |
Eastman Cast and
Forge Limited |
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Presented By |
J.R. Singal-
Managing Director |
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1) Date and description of instrument creating the change |
Agreement of hypothecation of Goods and assets dtd. 27th April,
1994 and Letter regarding the grant of individual limits and registered on 27th
May, 1994. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.40.100
Millions as Per Details Givern Below:
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
Stocks of raw materials, stores, stock in progress finished goods, bills
receivables and other rights and assets of the company |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest-
As applicable to SBI-1 rate units |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of
India, Overseas Branch, Savitri complex, Lundhiana |
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6) Date and brief description of instrument modifying the charge |
Supplemental
general agreement for the grant fo Small Scale Industrial Advancd and
Hyp. Of Movables, Book Debt and other
assets dtd.25.04.2005 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Now increasing
the Limits of Rs.128.000 Millions for 123.200 Millions as under:
*EPC Sub limits
is enchased to Rs.60.000 Millions from 36.000 Millions with in CC(Hyp) limits
under “SBI Exporters Gold Card Scheme”. # Within II C/FLC
Usance limits.
Rate of Interest: Working capital
for Comestic BusinessL: As applicable to SB-1 rated account. The rate of
interest on export finance will be charged as per bank’s extant instructions
under Exporters Gold Card scheme for EPC limits cover under “SBI Exporter
Gold Card Scheme.” |
Their Mission
To provide Competitive Quality Product with Maximum Customer Satisfaction by active participation of all members of the organization.
Company Profile
Eastman Cast & Forge Ltd." is a Twelve year old
company with a manufacturing facility on sprawling 70,000 sq ft. covered area.
The ECFL plant in Ludhiana, manufacturers a wide range of Carbon Steel and
Chrome Vanadium Hand-Tools.
An ISO-9001:2000 certified facility to manufacture, ECFL started with an edge
when it bagged prized O.E. accounts like Mahindra & Mahindra, Bajaj Auto - World's largest manufacturers of
scooters having collaboration with Kawasaki of Japan for Motor Cycles, Hero Honda
Ltd., New Holland Tractors-(India), a unit of world known Ford Tractors,
H.M.T., TAFE, Swaraj Tractors, Kirloskar, Birla Yamaha & others. In
a nut shell ECFL is fully equipped to satisfy all kind of customers.
Besides O.E.M. Supplies, Tools are widely accepted across the Nation and in
International Markets.
The company takes pride in declaring that it has also earned "German
Product Safety Standard" Certification by TUV Rheinland, and other step
forward on its path of continual improvement towards total customer
satisfaction.
A great deal of customization, tailored packaging and professional services
place 
in a selected Brand of vendors for host
of buyers across the globe.
The Company
Eastman Industries Limited was incorporated in the year 1982 by Mr. J.R. Singal. Ever since, its establishment the company has moved itself to the position of an ISO 9002 company, certified by KPMG world wide quality registars. The simple entrepreneurial Philosophies and integrated corporate policies have mobilized the company to become a government approved Training House, entirely focusing on international trade.
Product Profile
Eastman industries Limited is a manufacturer exporter of a diversified range of bicycles, components and accessories, suitable to both conventional & contemporary bicycles. The company delivers complete bicycle, single speed & multispeed chain wheels, free wheels, axels, hubs, pedals, chains, cframes, and other parts & accessories.
Business Structure & The Market Presence
The company has its own established brand 'Eastman' in Latin America countries including Panama.Eastman maintains pace with the technological development , changing consumer behaviour, marketing and distributing strategies, to remain a competent brand in the international market. For its excellent quality & time management along with price actualization, Eastman has become a naturalm preference in the territories of Latin America, Europe(encircled Mediterranean region ), and Middle East. The company forsees to deliver the same or better, in a much wider market.
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
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.59 |
|
UK Pound |
1 |
Rs.85.53 |
|
Euro |
1 |
Rs.58.14 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|