MIRA
INFORM REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
EUROTHERM HEMA RADIATORS INDIA LIMITED |
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Registered Office : |
170A, Western Avenue, Sainik Farms, New Delhi – 110062 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.2004 |
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Com. Reg. No.: |
55-128719 |
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CIN No.: [Company
Identification No.] |
U28133DL2004PLC128719 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE03378E |
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PAN No.: [Permanent
Account No.] |
AABCE3677R |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing and supplying Heating Ovens, Bath Raditors, Steel Panel Radiators,
Aluminium Radiators and its full accessories. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
New Company |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a new company promoted by strong promoters. Company has incurred some losses during
the first year of its operations.
Payments are reported as slow but correct. The company can be considered for small business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
170A, Western Avenue, Sainik Farms, New Delhi – 110062, India |
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Tel. No.: |
91-11-26565839 / 26565839 |
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Fax No.: |
91-11-26969677 |
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E-Mail : |
cj@hemaengineering.com |
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Website : |
http://www.eurothermhema.com |
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Factory : |
Plot No. 6 & 13,
Sector - 6 HSIDC Industrial Complex, Bawal, District Rewari, Haryana, India |
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Tel. No.: |
91-1284-264332/34/35/36 |
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Fax No.: |
91-1284-264333 |
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Branches : |
1/3 K. M. Stone,
Khandsa Road, Gurgaon – 122001, Haryana, India |
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Tel. No.: |
91-124-2370732 -
35 |
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Fax No.: |
91-124-2370747 |
DIRECTORS
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Name : |
Mr. Chandresh Jajoo |
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Designation : |
Managing Director |
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Address : |
170-A, Sainik Farms, Western Avenue, New Delhi – 110062 |
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Date of Birth/Age : |
21.11.1969 |
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Date of Appointment : |
01.10.2004 |
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Name : |
Mr. Manuel Pando Jurado |
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Designation : |
Joint Managing Director |
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Address : |
Boschstr 11, D – 71404, Korb, b. Stuttgart, Germany |
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Date of Birth/Age : |
23.07.1957 |
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Date of Appointment : |
01.10.2004 |
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Name : |
Mr. Naveen Kapoor |
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Designation : |
Director |
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Address : |
H. No. D – 075, Ridgewood Estate, DLF Phase – IV, DLF City, Gurgaon –
122001, Haryana, India |
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Date of Birth/Age : |
03.05.1969 |
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Date of Appointment : |
01.09.2004 |
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Name : |
Mr. Sascha Pando Jurado |
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Designation : |
Director |
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Address : |
Boschstr 11, D – 71404, Korb, b. Stuttgart, Germany |
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Date of Birth/Age : |
12.07.1984 |
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Date of Appointment : |
01.09.2004 |
KEY EXECUTIVES
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Name : |
Mr. Krishan Kumar |
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Designation : |
Assistant Company Secretary |
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Address : |
House No. 639, Sector – 9, Gurgaon, Haryana, India |
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Date of Birth/Age : |
10.08.1974 |
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Date of Appointment : |
25.09.2005 |
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PAN No. : |
AQPPK3301D |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Hema Engineering Industries Limited |
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5016950 |
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Eurotherm GmbH |
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2711491 |
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Mr. Chandresh Jajoo |
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10 |
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Mr. Krishan Kumar Jajoo |
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10 |
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Mrs. Monica Jajoo |
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10 |
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Mrs. Vijya Jajoo |
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10 |
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Mr. Naveen Kapoor |
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10 |
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TOTAL |
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7728491 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and supplying Heating Ovens, Bath Raditors, Steel Panel Radiators,
Aluminium Radiators and its full accessories. |
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Products : |
Heating Ovens Steel Panel Radiator |
GENERAL
INFORMATION
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Suppliers : |
Chandrasekaran Associates A B Sanwalka & Company Hindustan Industrial Security Services |
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Bankers : |
Punjab National Bank Main Branch, Fountain Chowk, Gurgaon - 122001, Haryana, India |
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Facilities : |
Secured Loans : From Punjab National Bank, Gurgaon – Rs. 65.782
millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
A. B. Sanwalka & Company Chartered Accountants |
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Address : |
38/2079, 2nd Floor, Nai Wala, Karol Bagh, New Delhi –
110005, India |
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PAN No. : |
AALFA5215A |
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Joint Ventures : |
Hema Engineering Industries Limited Eurotherm GmbH Deutchland, Germany |
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Associates : |
Kay Jay Auto Limited Kay Jay Leasing Limited Tobu India Private Limited Flash Hema Energy Devices Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14786700 |
Equity Shares |
Rs. 10/- each |
Rs. 147.867
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
147.867 |
27.841 |
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2] Share Application Money |
|
10.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
|
[10.669] |
0.000 |
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NETWORTH |
|
147.198 |
27.841 |
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LOAN FUNDS |
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1] Secured Loans |
|
275.087 |
65.782 |
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2] Unsecured Loans |
|
0.028 |
0.000 |
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TOTAL BORROWING |
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275.115 |
65.782 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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422.313 |
93.623 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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412.955 |
11.871 |
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Capital work-in-progress |
|
7.089 |
7.610 |
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Capital Advances |
|
0.000 |
57.979 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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21.791
|
0.000 |
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Sundry Debtors |
|
1.626
|
0.000 |
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Cash & Bank Balances |
|
0.560
|
6.630 |
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Other Current Assets |
|
0.000
|
0.000 |
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Loans & Advances |
|
14.704
|
23.349 |
|
Total
Current Assets |
|
38.681 |
29.979 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Current Liabilities & Provisions |
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38.241
|
17.396 |
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Total
Current Liabilities |
|
38.241 |
17.396 |
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Net Current Assets |
|
0.440 |
12.583 |
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MISCELLANEOUS EXPENSES |
|
1.829 |
3.580 |
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TOTAL |
|
422.313 |
93.623 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
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Sales Turnover |
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|
1.546 |
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Other Income |
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|
0.055 |
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Total Income |
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|
1.601 |
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Profit/(Loss) Before Tax |
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|
[10.669] |
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Provision for Taxation |
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|
0.000 |
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Profit/(Loss) After Tax |
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|
[10.669] |
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Expenditures : |
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Raw Material Consumed |
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|
3.419 |
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Consumption of stores and spares parts |
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|
1.068 |
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Increase/(Decrease) in Finished Goods |
|
|
[3.142] |
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Salaries, Wages, Bonus, etc. |
|
|
1.411 |
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Payment to Auditors |
|
|
0.003 |
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Interest |
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|
2.708 |
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Insurance Expenses |
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|
0.058 |
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Power & Fuel |
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|
1.367 |
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Depreciation & Amortization |
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|
2.406 |
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Other Expenditure |
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|
2.969 |
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Total Expenditure |
|
|
12.267 |
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KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
[666.39] |
N.A. |
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Net Profit Margin (PBT/Sales) |
(%) |
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[666.39] |
N.A. |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[2.36] |
N.A. |
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Return on Investment (ROI) (PBT/Networth) |
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[0.07] |
N.A. |
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Debt Equity Ratio (Total Liability/Networth) |
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2.12 |
2.98 |
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Current Ratio (Current Asset/Current Liability) |
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|
1.01 |
1.72 |
LOCAL AGENCY
FURTHER INFORMATION
Details about the incorporation and commencement of business :
The company has been incorporated on 1st September, 2004 and
subsequently obtained the Certificate for Commencement of Business on 26th
October, 2004 issued by the Registrar of Companies. NCT of Delhi and Haryana, New Delhi
Operations of the company :
The company had applied to HSIDC Limited for allotment of 5 acres of
Land at Bawal, District Rewari, Haryana and has been allotted two Plots [No. 6
& 13], measuring 18900 sq. mtrs. of Land and the possession of the same has
been received on 13th January, 2005 as per the communication
received from HSIDC Limited. The
construction of building for the proposed factory is going on and advances for
machinery have also been given as per the details given in the Balance Sheet.
Further the company has been registered as a 100% Export Oriented Unit
with the Development Commissioner, Noida Special Economic Zone, Ministry of
Commerce & Industry [Department of Commerce], Government of India vide
Letter of Permission [LOP] bearing No. F. No. 3/323/2004 – 100% EOU / 2073
dated 16th March, 2005 and a Green Card No. 07 dated 25.04.2005
valid upto 31.03.2010.
Contingent Liabilities :
Estimated amount of contracts entered into and remaining to be executed
on capital account and not provided for [net of advances] is Rs. 65.592
millions Building & Rs. 188.191 millions for Plant & Machinery.
Transactions carried out with the related parties in the ordinary course
of business during F.Y. 2004-05 :
|
Particulars |
Rs. In Millions |
|
Eurotherm GmbH, Germany [advance for Machinery] |
53.562 |
|
Hema Engineering Industries Limited [advance for supply of goods] |
22.091 |
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Name of the company |
EUROTHERM HEMA RADIATORS INDIA LIMITED |
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Presented By |
Mr.
Chandresh Jajoo, Managing Director |
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1) Date and description of instrument creating the change |
24.03.2005 Term Loan Agreement and Hypothecation of Assets to secure Term Loan. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 255 millions including Rs. 38.821 millions LC [DA/DP basis] equivalent to USD 0.062 million and Euro 0.636 million |
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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 |
1. First charge on all present and future block of assets of the company including all kinds of immovable and movable assets forming part of the block of assets. 2. Equitable mortgage of immovable property being factory land and building measuring 5 acres [approx.] owned by the company at Bawal, District Rewari, Haryana |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest @ 2.75% below prevailing BPLR plus term premium of 0.50% i.e. effective rate 8.5% per annum or LIBOR plus 3.50% on foreign currency Term Loan portion with monthly rest LIBOR is to be reset on yearly basis and foreign currency term loan will be subject to roll over after 3 years from the date of disbursement |
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5) Name and Address and description of the person entitled to the charge. |
Punjab National Bank Main Branch, Fountain Chowk, Gurgaon – 122001, Haryana |
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6) Date and brief description of instrument modifying the charge |
21.01.2006, Term Loan Agreement and Hypothecation of assets to secure term loans |
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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. |
Term loan of Rs. 44.600 millions by way of enhancement from Rs. 255 millions to Rs. 299.600 millions. The terms and conditions of modification will remain the same as these were at the time of creation of charge dated 24.03.2005 and later on modified dated 04.07.2005 for which charge has already been registered dated 20.04.2005 and 20.07.2005 respectively |
WEBSITE DETAILS
Eurotherm Hema Radiators India Limited is a joint venture
company of Eurotherm Gmbh Deutschland 'Germany' and Hema Engineering Limited,
Gurgaon, India situated at Plot No. 6 & 13, Sector-6, HSIDC,
Industrial complex , Bawal, Distt. Rewari (Haryana) India
Eurotherm Hema Radiators India Limited is a 100% Export Oriented Unit ,
equipped with state of art technology and facilities for manufacturing the
complete product basket of domestic heating solutions for the overseas market.
The company has a strong and wide overseas marketing network to
understand and fulfill the Customer's requirement. The company is
professionally managed by qualified trained and experienced personnel adopting
world class manufacturing (WCM) practices like Just In Time, Single Piece Flow,
Line Balancing, Mistake Proofing, 3M, 3G etc.
The company is manufacturing and supplying the full product range of
Heating Ovens, Bath Radiators, Steel Panel Radiators, Aluminum Radiators
and its full accessories, used for domestic heating purposes.
Eurotherm Gmbh,
Germany
Eurotherm Gmbh, Deutschland is a leading manufacturer and supplier of domestic heating solutions in the most part of Europe.
The company is manufacturing and supplying full product range of Bath Radiators, Steel Panel radiators, Aluminium Radiators and their full accessories, used for heating purpose in the entire Europe.
The company is a proactive, customer driven and fast growing company with core competency in identifying the changing customer requirements and promptly developing the products for customer delight.
Through the innovative products, the company has the strong market holding and widely acceptable Brand Equity
Hema Engineering
Industries Limited, India
Hema Engineering Industries Limited is a well renowned Original Equipment Manufacturer & Supplier of Auto Components to the Leading Automobile Manufacturers.
Hema Engineering Industries has specialized in mass production in Sheet Metal and other tubular components with core competency of surface treatment like Powder Coating, painting, Electroplating.
The company has more than 6 factories in North & South India and offices at different places in India to cater automobile manufacturers in most part of India.
The company adopts World Class Manufacturing Practices and International Standards on Quality Management, Environment Management, Occupational Health & Safety Management, Energy Management and Sea Worthy Packaging. The Quality Management System is ISO TS 16949: 2002 certified system and Environment Management System is ISO14000 certified system by AQSR .The products confirms to Japanese Industrial Standards and various applicable National and International Standards.
Products
Highly effective, efficient, safe and decorative heating system using waste wood or coal for fire and heating the room. System has the ability to start the fire/heating in seconds, control the fire/heating and cease the fire/heating in seconds.
Product has wide acceptability in European & Russian countries used for heating the homes/office areas.
Products are with sheet metal fabricated body equipped with insulating & firebricks for safe usage and available in Black, Mutable Grey and white color and in stone finish.
Products confirm to various national and international product and safety norms like DIN 18890.
Highly effective, efficient, safe and decorative heating
system using hot water for heating & drying the toiletry clothes. System
takes hot water from centralized heating unit and heats the room through heat
dissipation by hot water circulation. System has the ability to control the
heating through hot water circulation valve and is equipped with an Air Bleed
valve for safe functioning of the system.
Products are highly decorative by invisible weld joints and white
powder coated or plated surface finish. Company also offers the free choice of
colors as per customer requirement on extra cost.
Product has wide acceptability in European & Russian
countries used for heating bathrooms and drying the toiletry clothing.
Products are made from steel tubes and have invisible weld
joints available in wall mounting / floor mounting configuration and safe up to
13 bar water pressure available in many sizes and shapes.
Products confirm to various national and international product
and safety norms like EN 442.
Highly effective, efficient, safe and robust heating system
using hot water for heating homes / Office area. System takes hot water from
centralized heating unit and heats the surroundings through heat dissipation by
hot water circulation. System has the ability to control the heating through
hot water circulation valve and is equipped with an Air Bleed valve for safe
functioning of the system.
Products are highly robust and durable available in multiple
choice of sizes and configurations.
LENGTH: 400-to3000 mm
HEIGHT: 300 t0 900 mm
WIDTH: 59 to 147 mm (1 conductor with no Convector to 3
conductor & 3 convectors) I/P & O/P: Floor mounted (Sides / Center),
Wall Mounted
Products are made from steel strips, which are formed to
fins shape, then spot welded to make the fins and then seam welded around the
periphery to make conductor plate. Radiators are phosphated and powder coated
in white (RAL 9010) with flat surface (Optional), tested at 13 bars.
Products confirm to various national and international
product and safety norms like DIN 55900.
Aluminium Radiators
State of Art Technology of heating system using hot water for heating
homes / office area. system takes hot water from centralized heating unit and
heats the surroundings thought heat dissipation by hot water circulation.
system has the ability to control the heating thought hot water circulation
valve and is equipped with an air bleed value for safe functioning of the
system.
Products are made of Aluminium having high ability of heat dissipation.
Aluminium Radiators are made from die casting of Aluminium and have the
ability of add on modular block to suit the length and width of room & can
be rearranged when ever required.
Products confirm to various national and international product and
safety norms like EN 442.
Key Personnel
Company has appointed Mr. Chandresh Jajoo as Managing director. He is an
engineering Graduate with 15 years experience in manufacturing field and
belongs to a well known Industrial House having its Presence in automobile and
engineering products.
Company has appointed Mr. Mannuel Pando Jurado as Joint Managing
Director. He is an Engineering Graduate with 20 years experience in
manufacturing & Marketing. He is running his well established business in
the Europe.
Company has appointed Mr. Naveen Kapoor as Director Operations &
Import / Export. He is a Commerce Graduate with 15 years experience in
techno-commercial field. He had been behind a number of project conceptualization
to execution.
Company has appointed Mr. Kartikay Saini as Asst. vice President to look
after the entire day to day administration and operations of the company. He is
an Engineering Post Graduate and a MBA . He is also Chairperson of The Scottish
High International School and the Unit Head of Tobu India Private Limited.
Company has appointed Mr. Bharat Bhushan Juneja as Deputy General
Manager. He is an Engineering Post Graduate having 15 years experience in
Production, QC, R&D, Vendor Development, Product Certification, Liasoning
with Product & Systems Certification bodies.
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 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.44.49 |
|
UK Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.58.53 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
26 |
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 |
|