MIRA
INFORM REPORT
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Report Date : |
10.05.2007 |
IDENTIFICATION DETAILS
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Name : |
PREET AGRO INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.08.1997 |
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Com. Reg. No.: |
16-020361 |
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CIN No.: [Company
Identification No.] |
U24219PB1997PTC020361 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLP10012C |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Agriculture Implements, Combine Harvests, Earth Moving Machinery Parts and Other Agriculture Equipments. |
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 91000 |
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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 company can be considered normal for business dealings at usual
trade term and conditions |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-1765-220400, 222609, 229800 |
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Fax No.: |
91 - 1765 - 221619 |
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E-Mail : |
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Website : |
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Head Office: |
Post Box No.29, |
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Factory 1 : |
Purani Anaj Mandi, |
DIRECTORS
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Name : |
Mr.Hari Singh |
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Designation : |
Director |
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Address : |
Kaushal Vihar Cantt. Road. Nabha |
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Date of Appointment : |
14.08.1997 |
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Name : |
Mr. S. Gurcharan Singh |
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Designation : |
Director |
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Address : |
Kaushal Vihar Cantt. Road. Nabha |
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Date of Appointment : |
14.08.1997 |
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Name : |
Mr. S. Sarabjit Singh |
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Designation : |
Director |
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Address : |
V.P.O. Saron (Dhuri) |
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Date of Appointment : |
29.10.2001 |
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Name : |
Smt. Manjit Kaur |
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Designation : |
Director |
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Address : |
Kaushal Vihar Cantt.Road, Nabha |
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Date of Appointment : |
19.04.2002 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
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No. of Shares |
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S. Hari Singh |
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1100 |
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S. Gurcharan Singh |
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1200 |
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S. Ram Murti |
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1200 |
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Bhagwan Kaur |
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3000 |
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Sinderpal Kaur |
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2500 |
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Manjit Kaur |
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3000 |
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Sinderpal Kaur |
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2000 |
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Paramjit Singh |
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1500 |
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Sarabhit Singh |
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2000 |
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Bhagwan Singh |
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3000 |
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Joginder Singh |
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4000 |
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Labh Singh |
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1500 |
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Lakhbir Singh |
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1000 |
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Major Singh |
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3000 |
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Pritam Singh |
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2000 |
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Sukhdev Singh |
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1500 |
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Sukhdev Singh |
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4500 |
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Kulwnat Singh |
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3000 |
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Puran Singh |
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2000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Agriculture Implements, Combine Harvests, Earth
Moving Machinery Parts and Other Agriculture Equipments |
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Products : |
Preet Tractors Preet Combines |
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Exports : |
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Products : |
Combine Harvesters |
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Countries : |
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Imports : |
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Products : |
Plant and Machinery, Harvester Combine Parts |
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Countries : |
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Terms : |
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Selling : |
L/C and Cash and Credit |
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Purchasing : |
L/C Cash |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Harvester Combines |
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850 Units |
400 Units P.a |
GENERAL INFORMATION
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Suppliers; |
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Customers : |
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No. of Employees : |
59 |
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Bankers : |
Canara Bank-
Nabha Centurion Bank Bank of Punjab
Limited ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B.S. Goyal and Company Chartered Accountant |
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Address : |
Purani Anaj Mandi, Nabh |
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Tel. No.: |
91-1765-222916, 91-1765-225916 |
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Fax No.: |
91-1756-225916 |
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Associates/Subsidiaries : |
Preet Tractors Private Limited Manufacturing- Tractors Deep Spares Private Limited Manufacturing –Harvester combine Parts and Agricultural Implements |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000 |
Equity Shares |
Rs.100/- each |
Rs.10.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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43000 |
Equity Shares |
Rs.100/-
each |
Rs.4.300
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
4.300 |
4.300 |
4.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
18.692 |
12.344 |
8.134 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
22.992 |
16.644 |
12.434 |
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LOAN FUNDS |
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1] Secured Loans |
6.976 |
0.743 |
0.720 |
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2] Unsecured Loans |
5.778 |
4.613 |
5.941 |
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TOTAL BORROWING |
12.754 |
5.356 |
6.661 |
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DEFERRED TAX LIABILITIES |
0.401 |
0.316 |
0.139 |
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TOTAL |
36.147 |
22.316 |
19.234 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
11.800 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
12.726 |
12.225 |
15.893 |
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Sundry Debtors |
11.208 |
23.725 |
7.259 |
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Cash & Bank Balances |
42.894 |
23.116 |
12.416 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
5.047 |
4.807 |
4.270 |
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Total
Current Assets |
71.875
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63.873 |
39.838 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
71.980 |
61.630 |
(32.425) |
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Provisions |
0.000 |
0.000 |
0.000 |
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Total
Current Liabilities |
71.980
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61.630 |
(32.425) |
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Net Current Assets |
(0.105)
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2.243 |
7.414 |
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MISCELLANEOUS EXPENSES |
0.012 |
0.016 |
0.020 |
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TOTAL |
36.147 |
22.316 |
19.234 |
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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 |
274.917 |
224.984 |
109.463 |
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Other Income |
1.097 |
0.228 |
0.600 |
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Total Income |
276.014 |
225.212 |
110.063 |
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Profit/(Loss) Before Tax |
8.474 |
5.620 |
3.305 |
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Provision for Taxation |
2.013 |
1.233 |
(0.900) |
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Profit/(Loss) After Tax |
6.434 |
4.387 |
2.405 |
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Earnings in Foreign Currency : |
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Export Earnings |
USD 61600 |
USD 52000 |
0.000 |
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Total Earnings |
USD
61600 |
USD
52000 |
0.000 |
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Imports : |
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Raw Materials |
3.259 |
3.949 |
0.000 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.436 |
0.000 |
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Total Imports |
3.259 |
4.385 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
229.041 |
190.120 |
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Material Consume and Trading Material |
0.000 |
0.000 |
91.921 |
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Manufacturing Expenses |
0.000 |
0.000 |
3.988 |
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Administrative Expenses |
15.166 |
12.658 |
0.000 |
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Interest |
1.222 |
0.976 |
0.000 |
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Depreciation & Amortization |
3.541 |
2.680 |
0.000 |
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Total Expenditure |
248.970 |
206.434 |
95.909 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
2.33 |
1.94 |
2.18 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.08 |
2.94 |
3.01 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.83 |
6.69 |
6.40 |
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Return on Investment (ROI) (PBT/Networth) |
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0.36 |
0.33 |
26.58 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.13 |
3.70 |
(2.60) |
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(1.22) |
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Current Ratio (Current Asset/Current Liability) |
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0.99 |
1.03 |
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LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
Preet Agro
Industries Private Limited |
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Presented By |
Sh. Gurcharan
Singh (Director) |
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1) Date and description of instrument creating the change |
19.08.1998 Cash Credit Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.2.350 Millions |
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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, present and future in the name of the company
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4) Gist of the terms and conditions and extent and operation of the charge. |
-- |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank-
Nabha |
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6) Date and brief description of instrument modifying the charge |
Draft of Ledtd
for to be used where additional limit is granted on the very security |
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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. |
The first charge
of Rs.2.350 Millions was enhanced to Rs.5.000 Millions regd. On 13.04.2000
and enhanced to Rs.7.500 Millions regd. On 18.10.2001and the same was
enhanced to Rs.9.500 Millions only vide agreement date 04.06.2003. The charge
of Rs.9.500 Millions enhanced to Rs.9.500 enhanced to Rs.20.000 Millions regd
on 13.01.2006. The charge is further secured on the total facilities of the
company up to Rs.51.500 Millions on the assets agreement dated 16.12.2005. The company
provided additional guarantee of Rs.34.500 Millions on the immovable
properties in favor of Preet tractors Private Limited Nabhe regd. On date
05.05.2003 and enhanced to Rs.39.500 Millions regd on 19.04.2005. The additional
guarantee is now enhanced to Rs.67.50 Millions as per schedule attached
agreement dated 19.01.2006 |
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Corporate identity
number of the company |
16-20361 |
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Name of the
company |
Preet Agro
Industries Private Limited |
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Address of the
registered office or of the principal place of business in |
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This form is for |
Modification of
charge |
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Type of charge |
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Particular of
charge holder |
Canara Bank |
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Nature of
instrument creating charge |
Hypothecation
Agreement/ cash Credit Agreement dt:19.08.1998 |
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Date of
instrument Creating the charge |
19.08.1998 |
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Amount secured by
the charge |
2.300-5.000
Millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
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Description of
the property charged |
-- |
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Particulars of
the property charged |
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Fixed assets:
Land
Building
Plant and Machinery
Misc. Fixed assets
Jeeps
Handlings and Testing Equipment
Pump Set
Petterns
Tractors
PhotoState Machine
Water Cooler
Tempo TATA 709
Machine Tools
Computer
Generator Set
Cars
Cysle Scoooter and Motor Cysle
Air Conditioners
Furniture and Fixture
As per web site:
About Them
The company was founded In 1980, when the nation was needed one type of machine which could harvest & thresh the crop simultaneously to reduce the losses of farmers, Hari Singh, Managing Director was working on a machine for the same along with his tractor mechanic work. After three years, he established a small scale unit of Harvesting Reapers, Threshers, Agricultural parts. Later his brother named Gurcharan Singh, Director joined him 1985 & they made Tractor Driven Combines in 1986.
Preet Combine Harvesters harvests wheat and rice in the northern and central
region of
Preet is one of the
Preet originated from a small workshop in Mandaur village in district
Company Profile
They introduce their self as leading manufacturer of Combine
harvesters with the brand name of “PREET”. M/s Preet Agro Industries Pvt. Ltd.,
an ISO 9001: 2000 certified company. M/s Preet Agro Industries Pvt. Ltd. have
been in the business of manufacturing Harvester Combines since 1987 with
different variants. The company has its plant situated at Nabha, District.
Their product range of harvester combines is as follows:
- Self-Propelled Harvester Combine model PREET- 987 with 4.2-meter size of cutter bar.
- Self Propelled Harvester Combine model PREET- 987 with specially designed five-row header for harvesting maize and sunflower.
- Self-Propelled Harvester Combine model PREET- 849 with 3.9 meters size of cutter bar.
- Self-Propelled Harvester Combine model PREET- 949 with 3.9 meters size of cutter bar Rubber track version.
- Self-Propelled Harvester Combine model PREET- 649 with 3.9 size of cutter bar.
Note: All of the above mentioned models are tested and approved by Central Farm Machinery Training & Testing Institute, Budni .
The operations of the company are in the hands of well-versed, experienced
directors and technically sound executives. PREET harvesters are exported to
Their sister concern M/s Preet Tractors
manufactures tractors in 35-70 HP range under the brand name “PREET”. These are
low cost, fuel-efficient fitted with Trem-III engines, environment friendly
tractors. The manufacturing facilities are situated at Nabha, Distt.
The necessary improvements in the Tractors have been implement from comments / experience of these Tractors.
ENGINE ASSY:
The company has setup its own engine plant in Nabha. The plant is fully equipped with ultra modernized HMC & VMC machines for manufacturing of engines with quality assurance. Tractors are fitted with their own In-house engines. The tractors are well accepted among farmer’s community.
MANUFACTURING:
After completing their research and development, the vendors and the suppliers have been selected to supply the components as per drawing and strict quality standard. The components / parts received in their plant are routed through main store. Similar exercise is done in Machine shop also before the machined components are transferred to assembly line for tractors assembly. The Tractor Assembly is done stage wise and at each stage inspection is carried out to maintain the quality. The final product as assembled tractor is tested again on dynamometer to check the ascertain P.T.O. H.P and fuel consumption before handing over the tractor to the dealer.
MARKETING:
They are
having very good marketing network all over
INFRASTRUCTURE:
PREET is one of the
Present scenario of plant: -
- Their is ISO 9001: 2000 certified company.
- Combine harvesters are manufactured on organized assembly production line.
- Plant is equipped with latest CNC turning machines for machining of components and others computerized machines i.e. shearing machines, bending press, power press, lathe, shapers and radial drill machines etc.
- Company is having one another fully computerized Turret punching machine to enhance production capacity and to maintain the quality of product.
Future Plans: -
- Company has installed Laser oscillator machine from MAZAK Japan.
- They will be first to install Robots for all type of welding jobs in their plant in next financial year.
- Dip Painting of sheet metal will be install soon.
Presently they have manufacturing capacity of 450 units of
combine harvester per annum. Soon the capacity will increase to 800-1000 unit
per annum with the above said automation in plant in 2006-2007.
AWARDS / ACHIEVEMENTS:
They participated in KISSAN MELA organized by Punjab
Agricultural University Ludhiana in September 2003 and September 2005 with
exhibition their tractors and harvester combine. In the fair all the
established manufacturers and international giants participated they were
adjudged the best performer and awarded the first prize by the organizing
authorities.
The company has participated in International Farm Equipment
Show held in
Mr. Ron Bollman from Government of
The company has also participated in international trade
exhibitions held in Sri Lanka & South Africa.
The company has also attended the multi-trade visit, in
different companies of
Participated, adjudged the best performer and awarded the
first prize in Krishi Mela 2006 held in
Participated, adjudged the best performer and awarded the first prize in Agro –Industrial Exhibition 2006 held in G B Pant University of Agricultural & Technology Pantnagar (U. S. Nagar Uttaranchal).
It is in trade terms with:-
Ř
Sangrur Sugar Mills, Sangrur,
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.41.34 |
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|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|