MIRA
INFORM REPORT
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Report Date : |
17.10.2007 |
IDENTIFICATION DETAILS
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Name : |
ARMSEL MHE PRIVATE LIMITED |
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Formerly Known As : |
MATERIAL HANDLING ENGINEERS PRIVATE LIMITED |
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Registered Office : |
# 24, Koramangala Industrial Layout, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.06.1981 |
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Com. Reg. No.: |
08-4248 |
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CIN No.: [Company
Identification No.] |
U72206KA1981PTC004248 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRA05276F |
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PAN No.: [Permanent
Account No.] |
AABCM1443P |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing,
importing, exporting and trading of all kinds of cranes, hoists, tankers,
weight lifting and material handling 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 82000 |
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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 records. Directors are reported as experience 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 terms and conditions. |
LOCATIONS
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Registered Office : |
# 24, Koramangala Industrial Layout, |
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Tel. No.: |
91-80-2553 0439 / 2553 0440, 4110
4897 / 98 |
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Fax No.: |
91-80-2553 0411 |
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E-Mail : |
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Website : |
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Factory: |
78/A, KIADB Industrial Area, Jlgini, Anekal Taluk, |
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Tel. No.: |
91-80-27825252 / 27825351 |
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Fax No.: |
91-80-27825796 |
DIRECTORS
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Name : |
Mr. A C Heri |
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Designation : |
Managing Director |
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Address : |
Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, |
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Date of Birth/Age : |
06.11.1942 |
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Date of Appointment : |
03.06.1981 |
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Name : |
Mr. Preet H Heri |
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Designation : |
Director |
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Address : |
Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, |
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Date of Birth/Age : |
19.10.1977 |
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Date of Appointment : |
15.06.1998 |
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Name : |
Mr. Sushil C Heri |
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Designation : |
Director |
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Address : |
No. 6, New No. 13, Norris Road, Richmond Town, Bangalore – 560025,
Karnataka, India |
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Date of Birth/Age : |
30.09.1968 |
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Date of Appointment : |
25.09.1990 |
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Name : |
Mrs. D. M. Heri |
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Designation : |
Director |
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Address : |
Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, |
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Date of Appointment : |
01.04.2003 |
KEY EXECUTIVES
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Name : |
Ganapathi and Mohan |
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Designation : |
Company Secretary |
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Address : |
No. 53, Gandhi Bazaar main Road, |
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Name : |
Mr. Sham Sundar |
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Designation : |
Export Manager |
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Name : |
Mr. S Ranganath |
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Designation : |
Marketing manager |
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Name : |
Mr. A. Vinaya Shetty |
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Designation : |
Purchasing Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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A. C. Heri |
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119860 |
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D. M. Heri |
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1150 |
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Sushil C. Heri |
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4990 |
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Preet H. Heri |
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3000 |
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C. S. Furtado |
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6000 |
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Total |
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135000 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing,
importing, exporting and trading of all kinds of cranes, hoists, tankers,
weight lifting and material handling equipments. |
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Products : |
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Exports : |
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Countries : |
China, France, Italy, Germany, Indonesia, Nigeria, Ghana,
United Arab Emirates, Yemen, Zambia, Oman and Saudi Arabia |
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Imports : |
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Countries : |
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GENERAL INFORMATION
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No. of Employees : |
54 [Group Employees : 150] |
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Bankers : |
· Vijaya Bank, Address: · HDFC Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. P. Krishnamurthy and Company Chartered Accountants |
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Address : |
No 36/162, 4th Main, 14th Cross,
Vylikaval, |
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Tel. No.: |
91-80-331 2859 |
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Fax No.: |
91-80-344 9580 |
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Associates/Subsidiaries : |
Ř
Power Gear ( - No. 24, Koramangala Industrial Layout, - Manufacturers
of cranes and hoists works
Sarakki
Industrial Estate, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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140000 |
Equity Shares |
Rs.100/-
Each |
Rs.14.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
135000 |
Equity Shares |
Rs.100/-
Each |
Rs.13.500
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 |
13.500 |
13.500 |
13.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
7.129 |
5.433 |
4.322 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
20.629 |
18.933 |
17.822 |
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LOAN FUNDS |
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1] Secured Loans |
28.672 |
21.612 |
14.681 |
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2] Unsecured Loans |
14.681 |
11.759 |
10.204 |
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TOTAL BORROWING |
43.353 |
33.371 |
24.885 |
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DEFERRED TAX LIABILITIES |
3.245 |
3.245 |
3.192 |
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TOTAL |
67.227 |
55.549 |
45.899 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
26.646 |
26.429 |
21.708 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.006 |
0.006 |
0.006 |
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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 |
22.200
|
25.275 |
16.906 |
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Sundry Debtors |
43.656
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27.386 |
17.685 |
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Cash & Bank Balances |
4.664
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4.313 |
3.367 |
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Other Current Assets |
0.841
|
1.085 |
0.935 |
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Loans & Advances |
2.751
|
1.290 |
1.912 |
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Total
Current Assets |
74.112
|
59.349 |
40.805 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
32.478
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29.709 |
15.706 |
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Provisions |
1.059
|
0.526 |
0.914 |
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Total
Current Liabilities |
33.537
|
30.235 |
16.620 |
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Net Current Assets |
40.575
|
29.114 |
24.185 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
67.227 |
55.549 |
45.899 |
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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 |
121.601 |
85.041 |
79.297 |
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Other Income |
1.198 |
0.588 |
5.666 |
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Total Income |
122.799 |
85.629 |
84.963 |
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Profit/(Loss) Before Tax |
2.755 |
1.690 |
4.869 |
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Provision for Taxation |
1.059 |
0.579 |
1.149 |
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Profit/(Loss) After Tax |
1.696 |
1.111 |
3.720 |
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Earnings in Foreign Currency : |
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Total Earnings |
0.911 |
0.118 |
NA |
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Imports : |
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Total Imports |
3.875 |
0.494 |
NA |
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Expenditures : |
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Material Consumed |
0.000 |
45.453 |
37.814 |
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Manufacturing Expenses |
0.000 |
25.770 |
25.090 |
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Financial Charges |
3.768 |
3.739 |
3.304 |
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Selling Expenses |
0.000 |
6.140 |
5.541 |
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Administrative Expenses |
0.000 |
5.753 |
6.427 |
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Depreciation & Amortization |
1.690 |
1.543 |
1.288 |
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Increase/(Decrease) in Finished Goods |
0.000 |
[4.458] |
0.629 |
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Total Expenditure |
5.458 |
83.940 |
80.093 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.38
|
1.30 |
4.38 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.26
|
1.99 |
6.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.73
|
1.97 |
7.79 |
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Return on Investment (ROI) (PBT/Networth) |
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0.13
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0.09 |
0.27 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.73
|
3.36 |
2.33 |
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Current Ratio (Current Asset/Current Liability) |
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2.21
|
1.96 |
2.46 |
LOCAL AGENCY FURTHER INFORMATION
history
The company was incorporated on 3rd June, 1981 at
The company is in trade terms with the following :
Ř
Tata Iron and Steel Company,
Ř
Rourkela Steel Plant,
Ř
Ř
TRF Limited,
Ř
Alloy Steel Plant,
Ř
Engines (
Ř
Airliquide Engineering (
Ř
M. N. Dastur and Company,
Ř
Western Coal Fields, Bilaspur, Madhya
Pradesh
Ř
Hindustan Motors Limited, Chennai,
Tamilnadu
Ř
Spic Group, Chennai, Tamilnadu
Ř
Gas Authority of India Limited, Mumbai
Ř
Mecon,
Ř
Mecon Limited,
Ř
Greaves Limited, Chennai, Tamilnadu
Ř
K. E. B.,
Ř
Indomag Steel,
Ř
Hipoten Biochem, Tumkur, Karnataka
Ř
Indian Oil Limited, Mumbai
Ř
HAL,
Ř
Bharat Heavy Engineering Limited,
Ř ISRO,
The company's fixed assets of important value include land,
building, plant and machinery, tools, electrical installations, office equipments,
furniture and fixtures, ve0hicles, hoists, R and D equipments, etc.
Bankers Charges
Report as per Registry
|
Name of the company |
MATERIAL
HANDLING ENGINEERS PRIVATE LIMITED |
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Presented
By |
A C Heri |
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1) Date and description of instrument creating the change |
10.07.1982 –
agreement for overdraft |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.150 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 |
Pledge of supply
bills |
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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. |
Vijaya Bank, |
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6) Date and brief description of instrument modifying the charge |
02.08.1984
Agreement for overdraft |
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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. |
Increased from
Rs. 0.150 Million to Rs. 0.450 Million interest rate reduced from 17.5 % to
16.5 % other conditions remain unaltered. |
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This form is for |
Modification of charge |
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Charge
identification number of the charge to be modified |
90194700 |
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Corporate
identity number of the company |
U72206KA1981PTC004248 |
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Name of the
company |
ARMSEL MHE PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
# 25, Koramangala Industrial Layout, |
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Type of charge |
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Particular of
charge holder |
Vijaya Bank, |
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Date of
instrument Creating the charge |
15.02.2007 |
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Amount secured by
the charge |
Rs. 69.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest WCL at VBPLR with
a minimum of 11.75 % p.a. rising of falling therewith on daily products with monthly
rests, pre eff rate 11.75 % p.a. penal interest for non compliance of terms
of sanction: Max 2 % p.a. over the normal rate. Terms of
repayment Working capital
facility repayable on demand facility for a period of one year. Margin Raw materials :
Semifinished goods / finished goods 25 % CC MISC 15 % DBD 25 % Bank Guarantee 20
% Foreign letter of
credit 10 % Extent operation
of the charge Exclusive first
charge on the assets of the company and to the full extents. Others : Cash credit
[Hypothecation] : Rs. 12.500 Millions Bank Guarantee :
Rs. 30.00 Millions |
WEBSITE DETAIL:
Subject is a provider of lifting solutions with a track record in pioneering, leading and shaping the developments in the lifting industry.
Subject lifting equipment keep production
processes up and running around the country, meeting tough end-user demands for
increased uptime, reliability, safety, top performance and the lowest possible
lifetime costs. They have the right equipment – large and small – to help their
customers run their operations very efficiently, whatever the field they are
in, from paper, primary metals, mining, ports, and shipyards to power
generation, waste management, plastics, defence, automotive manufacturing, and
numerous other applications.
Their extensive maintenance network provides
them with a valuable source of experience and know-how, and they use this input
in further developing their expertise. In particular, they focus on areas such
as advanced automation, preventive maintenance, remote monitoring, product
design, operator ergonomy and safety, and environmentally sound solutions.
Established in 1974 as Proprietorship concern,
Armsel started business in the line of manufacturing Material Handling
Equipment in a small way. The Firm followed the natural growth pattern because
of commitment to Quality, Delivery and Competitive Price and therefore, has
become a reputed and leading supplier of Material Handling Equipments in
Promoters
The
Founder Mr. A.C.Heri a Mechanical Engineer after serving in major industries
like M/s. Morris and Brady Engineering Company Ltd, M/s. Chemtex Engineering of
India Limited and others in
Milestones
1974 The company was founded by Mr. A.C.Heri, as a
SSI unit at Koramangala Industrial Estate, in the City of
1977
Started manufacturing Wire King model, electric wire rope hoists.
1978
Introduced Single Girder and Double Girder EOT cranes at
1980 Introduced
Co-Axial model EPITRANS Hoists with micro speed attachments for general-purpose
use.
1981
Introduced Precision Electric Chain Hoists with machined and heat treated load
wheel and Grade - 80, lifting chains.
M/s. The copmany (earlier name Material Handling Engineers Private Limited) - A
Company specially floated with full fledged facilities for manufacturing heavy
duty Cranes, Winches and Pressure Vessels, was incorporated and registered.
Mrs. D.M.Heri joined the group as a Director.
1982
Introduced Heavy Duty Goliath Cranes with overhang on both ends, specially
designed to work in ports, Granite Plants, Warehouses,
1984
Introduced Jib Cranes of all type, including motorized boom swivel.
1986
Introduced Winches for Steel Plants and General use.
Mr.
SUSHIL C. HERI - the eldest son of founder Director Mr. A.C. HERI also joined
the group as Executive Director in-charge of manufacturing at the new plant at
Jigani.
1990
Introduced Grabs and Tongs mainly for steel plants.
1992
Introduced Wall Mounted Cranes upto a capacity of 5000 Kgs., to service local
areas in the bay under the EOT Cranes.
1994
Introduced Hand Chain Hoists (Chain Pulley Blocks) with traveling trolleys and
improved version of chain hoists, coded pressure vessels, etc.
1995
Introduced - LPG Industrial Storage and Handling Systems, LPG Industrial
Installations and Bottling / Filling Plants.
Bureau of Indian Standards elected Mr. A.C. Heri in the Sectional Committee
ME-14 On Cranes, Lifting Chains and Related Equipments for drafting and
Modifying BIS standards for lifting equipment.
1997
Continued to improvise, standardize and economize the production to offer total
customer satisfaction.
1998
Mr. Preet Heri after completing his Masters Degree in Manufacturing Technology
from RMIT,
1999
The business of M/s. Armsel (
2000
The entire manufacturing activities were shifted to Jigani Industrial Area,
wherein the company developed full fledged manufacturing facilities adding 3
huge crane bays cater to vast manufacturing requirements.
2002
Expanded the facility by constructing the third bay, which has added to their
production capacity.
2003
Supplied many numbers of explosion proof cranes suitable for Gas Group IIC to
prestigious customer like IOCL, CPCL, GAIL, etc.
2004
Executed a prestigious project of Rail Handling System for SAIL- Bhilai Steel
Plant through M/s. Vai Engineering and Automation Limited, Kolkata, the order
value was approx. Rs.17.5 Million.
2005
Mr. Preet Heri – Technical Director was inducted as an alternate Committee
member of Bureau of Indian Standards in the Sectional Committee ME-14 on
Cranes, Lifting Chains and Related Equipments for drafting and modifying BIS
standards.
2005
Constructed a new
Introduced standard cranes with imported SWF Crane Kits into the market
executed number of Double Girder and Single Girder Crane orders for machine
tool and automotive industries.
Product
- Hand Chain Hoist
- Electric Chain Hoist
- Electric Wire Rope Hoist
- Light Crane System
- Jib Crane
- Semi-Portal Crane
- Canti lever Crane
- Underslung Crane
- Rail Mounted Overhead Crane
- Gantry Crane
- Custom made Cranes and Hoists
- Explosion proof Cranes and Hoists
- Winches
- Crane accessories
- Festoon Systems
- Totally enclosed Power Conductors
- Shrouded Bus Bar System
- Push Button Pendents
- Engery Chain Systems
- Tongs
- Grabs Buckets/Grabs
- Spreader Beams
- Radio Remote Controls
Reference
- Aircraft Manufacturing
- Aluminium Processing Industries
- Atomic Power
- Automotive
- Construction Sites
- Consultants
- Defence
- EPC Contractors
- General Engineering
- Granite Processing
- Machine Tool Industry
- Mining
- Other Industries
- Paper Processing
- Ports
- Power
- Railways
- Refineries
- Space
- Steel Plants
- Sugar Factories
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.39.33 |
|
|
1 |
Rs.79.74 |
|
Euro |
1 |
Rs.55.74 |
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 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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. |
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 |
|