MIRA
INFORM REPORT
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Report Date : |
22.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
SATARA STEELS |
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Registered Office : |
B – 1, MIDC, Satara - 415004, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
August 1983 |
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PAN No.: [Permanent
Account No.] |
ABPPT7589R |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturers of Industrial Fabrication and Engineering Goods |
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 17000 |
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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 concern having satisfactory
track. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Anand Vishwanath Tembe |
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Designation : |
Proprietor |
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Contact No.: |
91-9923883131 |
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Date : |
10.03.2008 |
LOCATIONS
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Registered Office : |
B – 1, MIDC, Satara - 415004, Maharashtra, India |
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Tel. No.: |
91-2162-46194 |
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Mobile No.: |
91-9923883131 / 9371310780 |
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Fax No.: |
91-2162-46194 |
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E-Mail : |
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Area : |
2100 sq. m. [Leased MIDC Land] |
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Factory : |
B – 1, MIDC, Satara - 415004, Maharashtra, India |
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Tel. No.: |
91-2162-46194 |
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Fax No.: |
91-2162-46194 |
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E-Mail : |
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Area : |
6000 sq. ft. [Owned] |
SOLE PROPRIETOR
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Name : |
Mr. Anand Vishwanath Tembe |
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Designation : |
Proprietor |
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Address : |
439/9, First Floor, Kaustubh, Opposite Sainik School, Sadar Bazar,
Satara – 415001, Maharashtra, India |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B. Tech |
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Experience : |
30 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Industrial Fabrication and Engineering Goods |
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Products : |
Electronic Weighting Machines
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Imports : |
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Products : |
Aerogenerators |
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Countries : |
USA and China |
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Terms : |
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Selling : |
Credit [60 days] |
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Purchasing : |
Credit [30 days] |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
End Users and OEM’s
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No. of Employees : |
24 [In Office : 2; In Factory : 22] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ashutosh Godbole Chartered Accountants |
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Address : |
Sai Chambers, 410, Gurwar Peth, Satara |
CAPITAL STRUCTURE
AS ON 31.03.2008
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Capital Investment : |
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Owned : |
Rs. 3.248 Millions |
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Borrowed : |
Rs. 0.915 Million |
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Total : |
Rs. 4.163 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Proprietor’s Capital |
3.248 |
0.119 |
0.119 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.318 |
0.318 |
0.318 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3.566 |
0.437 |
0.437 |
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LOAN FUNDS |
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1] Secured Loans |
0.915 |
1.071 |
1.245 |
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2] Unsecured Loans |
0.000 |
2.673 |
2.693 |
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TOTAL BORROWING |
0.915 |
3.744 |
3.938 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4.481 |
4.181 |
4.375 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4.276 |
2.701 |
2.533 |
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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 |
1.307
|
1.448 |
1.112 |
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Sundry Debtors |
1.444
|
1.602 |
0.605 |
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Cash & Bank Balances |
0.012
|
0.109 |
0.051 |
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Other Current Assets |
0.310
|
0.017 |
0.017 |
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Loans & Advances |
0.428
|
0.002 |
0.016 |
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Total
Current Assets |
3.501
|
3.178 |
1.801 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
3.296
|
2.185 |
0.569 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
3.296
|
2.185 |
0.569 |
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Net Current Assets |
0.205
|
0.993 |
1.232 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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Proprietor’s Current Account |
0.000 |
0.487 |
0.610 |
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TOTAL |
4.481 |
4.181 |
4.375 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Turnover / Income |
8.466 |
6.133 |
0.760 |
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Profit/(Loss) Before Tax |
0.574 |
0.197 |
[0.298] |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
0.574 |
0.197 |
[0.298] |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
0.571 |
0.470 |
0.443 |
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Professional Charges |
0.036 |
0.024 |
0.022 |
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Bank Charges |
0.027 |
0.024 |
0.004 |
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Interest on Loan |
0.018 |
0.000 |
0.000 |
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Insurance Expenses |
0.014 |
0.000 |
0.024 |
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Electricity Charges |
0.056 |
0.087 |
0.066 |
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Depreciation & Amortization |
0.540 |
0.361 |
0.100 |
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Other Expenditure |
6.630 |
4.970 |
0.399 |
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Total Expenditure |
7.892 |
5.936 |
1.058 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
6.78
|
3.21 |
[39.21] |
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Net Profit Margin (PBT/Sales) |
(%) |
6.78
|
3.21 |
[39.21] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.38
|
3.35 |
[6.88] |
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Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.45 |
[0.68] |
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Debt Equity Ratio (Total Liability/Networth) |
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1.18
|
13.57 |
10.31 |
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Current Ratio (Current Asset/Current Liability) |
|
1.06
|
1.45 |
3.17 |
LOCAL AGENCY
FURTHER INFORMATION
PROPRIETOR’S
CAPITAL ACCOUNTS FOR THE YEAR ENDED ON 31.03.2008
Mr. A.V. Tembe
|
DR. |
Rs
in Millions |
CR. |
Rs
in Millions |
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To Proprietor Current A/c Balance |
0.487 |
By Balance b/d |
0.119 |
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To Drawings |
0.134 |
By Net Profit |
0.574 |
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|
0 |
By Addition [Sales of Land] |
0.279 |
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To balance C/D |
3.248 |
By Quasi Equity Capitalalised |
2.897 |
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Total |
3.869 |
Total |
3.869 |
Introduction
Brief History
Satar Steels was started as a partnership firm in 1983-84 at Plot No. B
– 1, MIDC Area Satara. On 14th May 2005, the constitution was
changed to Proprietorship and Mr. Anand tool over the management as a sole
proprietor.
The Activities of
The Concern
After the change in constitution, the concern continued the business activities,
as earlier, of industrial fabrication of various equipments and other allied
items. The main products which the firm continued to manufacture being :
- Semi
automatic machine bodies for Abhijat Equipments Private Limited, Satara
- Bag filter
Plenums, Housing, Hoppers etc for Rieco Limited, Pune
- Various types
of Trollies, Machine Bodies, Storage Rack systems etc for Granite
Corporation Private Limited, Satara
All these items were fabricated as per customer’s specifications and in
most cases using raw materials supplied by the customers [On Labour Charges
Basis]
For the F.Y. 2006-07, equipment fabrication orders from Naik
Environmental Engineers Private Limited Navi Mumbai, were secured. These orders
were for manufacturing of Waste Water Treatment Plants as per the customer’s
specifications, but using all raw materials purchased by them. This new
activity involved value added work of Fibre Glass Lining and finish Painting of
the manufactured items. For F. Y. 2006-07 and in the current year, on an
average 2 nos of such plant were supplied by them per month. The Labour Charge
Based fabrication activates were also continued on similar quantities as in
F.Y. 2005-06 in both the years.
The installed capacity of the unit has to be increased to take up this
additional activity. The factory shed was renovated, height of the shed was
increased from 4m to 7m to accommodate over head manual cranes – 2 nos of 5MT
capacity each. New electrical installation was made to enable addition of new
equipments like : Welding machines of higher capacity, compressor for painting,
over head manual cranes for ease in material handling, etc. In addition a new
office building has also been built in order to streamline the systems in the
unit and attend the prospective customers and other visitors. The building is
almost ready.
The above capital expenditure was done through internal accruals, during
the last three financial years. This has put a strain on the cash flow, but the
turnover and the profitability of the concern could be improved dramatically.
During the F.Y. 2006-07 a lot of effort was made to develop their
products and they have been successful in developing wind power generating
systems for captive generation and consumption of electric power. Towards the
end of Feb 07, their first order for installation of a wind power system was
secured and during the current financial year 2007-08 they have already
installed and commissioned three wind power system successfully. Many other
order for such system are in pipeline. They are waiting for availability of
funds for taking up these orders.
Commercial
Viability
The wind energy is non conventional and renewable energy is non
conventional and renewal energy resource and it is also no polluting resource.
Due to current crises of electricity, the demand for alternative source of
power is souring. People have shown great curiosity and interest in their wind
energy systems. Thy customize the system and per the requirements of customers.
Hence, customer gets system of exactly right capacity and has to pay only
optimum price. Presently, they have already installed three systems which are
running very well and they have about 10 nos of such systems in advance level
of finalization. These can immediately taken up and completed in short term is
the funds for working capital are made available to them.
They are planning to book orders and install one such wind energy
systems per month for the F.Y. 2008-09. The regular manufacturing activity for
Waste Water Treatment Plants for Naik Enviro would continue for this financial
year @ 4 nos of plants per month. The Labour charge base orders would continue
as in the earlier financial years.
Electric Power
Required
65 HP electric connection already available. It is proposed to install a
wind power system of capacity 5 kw to independently run the single lighting
load of the office and factory shed.
Outsourcing
For waste water treatment plant manufacturing activity, all raw material
like Steel, hardware, stainless steel wire mesh, ball bearings and housing,
paints, etc available locally and has been organized. Machined components are
being procured from local vendors as per their drawings and specifications.
For wind Power systems, the batteries of required specification are
locally available. The inverter and other electrical accessories are being
outsourced from vendors as per their specification. The towers to be fabricated
in house, the wind machines would be imported in CKD condition as per their
specifications.
The financial
Requirements
The turnover the concern for the year ended on 31.03.2007 was Rs. 6.746
Millions. This turnover was from Waste Water Treatment Plants manufactured for
Naik Enviro of with material basis and fabrication work on labour charges basis
for old customers. During the current year the firm has done turnover of around
Rs. 7.500 Millions as on 31.12.2007 and it will be Rs. 10.000 Millions for the
entire year ended on 31.03.2008. the turnover could have been much higher in
the current year but they were forced to limit it to this level due to acute
shortage of working capital limit. However fort the coming year there are
almost confirmed orders for wind power systems and the regular order for Waste
Water Treatment Plant has doubled. Due this the estimated turnover of the
concern is Rs. 2.000 Millions p.m. on an average. Currently the firm is
financing its working capital requirements out of its own sources and internal
accruals. But the working capital required for estimated turnover can not be
achieved without working capital finance from Bank. Availability, of funds for
working capital will be critical for achieving the potential level. Unless
working capital is available it is nor possible to achieve the desire
turnover.
|
Monthly Turnover
Planned |
|
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|
Monthly Turnover
[Rs in Millions] |
|
Labour Charge based Orders : |
0.040 |
|
Waste Water Treatment Plants : [3 Nos @ average cost Rs. 0.300 Million each] |
0.900 |
|
Wind Power Systems [1 Nos @ average cost Rs. 1.100 Millions each] |
1.100 |
|
Total |
2.040 |
Considering the estimated turnover, the working capital requirement will
be much higher as compared to current level. The main raw materials required in
steel. They can get very good discount if payment for steel can be made
immediately. Currently they are buying on long credit period which is affecting
their profitability. The payment terms of Naik Enviro the credit period is 60
days. The part payment for wind mill will be taken in advance but the remaining
payment will be received after commissioning the system. Considering the time
required for the manufacturing and commissioning of system, the average
collection period for wind mill is also 60 days.
Due to the shortage of working capital funds the creditors of the firm
are pilled up and they have to be regularized in order to insure regular supply
from them. Thus the minimum working capital requirement estimated for the year
ended on 31.03.2009 is Rs. 4.534 Millions. Detailed statement showing working
capital requirement is enclosed herewith. Considering the current crises they
propose to raised the finance by way of term loan for working capital. The
required finance is proposed to be raised as under :
|
|
Rs in Millions |
|
Cash Credit from Bank |
3.500 |
|
Own Capital |
1.034 |
|
Total |
4.534 |
Securities Offered
fro the Loan
Equitable Mortgage in favour of Bank of :
Lease hold MIDC land 2100 sq. m. with all four sides compound wall.
Factory Sheds 2 Nos. of area approx 6000 sq. ft.
New Office block under construction 1500 sq. ft.
Approximate market value of the property mentioned above is 8.000
Millions
Hypothecation to
Bank of
- All
manufacturing equipments
- All raw
material stocks
- All
Debtors
SWOT Analysis
Strengths :
- Proprietor
has through technical knowledge of the new products.
- Confirmed
orders on hand for at least 2-3 months
- Good trained
and experience skilled Labour available in house.
- Proper
infrastructure for material handling available in house.
- Engineering
Design support available in house.
- No serious
market competition as their products are innovative.
Weaknesses
No cash credit availed from banks as yet. Hence, purchases for raw
materials has to be made from market on credit. This is expensive and adversely
affects the profitability.
Opportunities
- Solar Power Generating
equipments can be added to their Products List any time in future in
addition to Wind Power system also Solar / Wind power hybrid systems can
also be added.
- Sewage
Treatment Plants / Reverse Osmosis water softner plant can be added to
their products list any time in future.
- Both these
precuts have great potential due to increased awareness regarding
environment and importance give to green energy.
Threats to their
concern
If bank finance is not availed hence forth, then the projected turn over
cannot be achieved.
WORKING CAPITAL
REQUIREMENT
Rs in Millions
|
PARTICULAR |
|
31.03.2009 Projected |
31.03.2010 Projected |
|
|
|
|
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|
A. Current
Assets |
|
|
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|
Value of
Inventory |
|
|
|
|
Closing Stock |
30 days |
1.726 |
1.899 |
|
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|
Sundry Debtors |
|
|
|
|
[Assuming 60 days credit] |
60 days |
4.932 |
5.425 |
|
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Total |
|
6.658 |
7.324 |
|
|
|
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|
B. Credit
Liability |
|
|
|
|
[Other than Bank Borrowings] |
|
|
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|
Sundry Creditors |
30 days |
1.381 |
1.519 |
|
|
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|
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Outstanding Expenses |
|
|
|
|
[Wages, Power Charges, Salary] |
1 month |
0.180 |
0.198 |
|
|
|
|
|
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Total |
|
1.561 |
1.717 |
|
|
|
|
|
|
Net Working
Capital [A-B] |
|
5.097 |
5.607 |
|
|
|
|
|
|
Maximum Possible Bank Finance |
|
3.823 |
4.205 |
|
[75 % of net working capital gap] |
|
|
|
|
|
|
|
|
|
Proposed Working Capital Finance |
|
3.500 |
3.500 |
|
Margin for Working Capital |
|
1.597 |
2.107 |
WORKING CAPITAL REQUIREMENT
Operating
Statement
Rs. in Millions
|
PARTICULAR |
Estimates for the year ending |
|
|
2008-09 Projected |
2009-10 Projected
|
|
|
1. Gross Sales |
|
|
|
Domestic Sales |
30.480 |
33.528 |
|
Scrap Sales |
-- |
-- |
|
Total |
30.480 |
33.528 |
|
|
|
|
|
2. Less : Excise Duty |
-- |
-- |
|
|
|
|
|
3. Net Sales |
30.480 |
33.528 |
|
|
|
|
|
4. % age rise [+] or fall [-] in net sales as compared to previous |
246 % |
10 % |
|
|
|
|
|
5. Cost of sales
|
|
|
|
|
|
|
|
i] Raw materials [including stores and other items used in the process
of manufacture] |
|
|
|
A] Imported |
-- |
-- |
|
B] Indigenous |
21.226 |
23.273 |
|
ii] Other Spares |
|
|
|
A] Imported |
-- |
-- |
|
B] Indigenous |
-- |
-- |
|
iii] Power and fuel |
0.300 |
0.330 |
|
iv] Direct Labour |
2.100 |
2.310 |
|
[Factory wages and salaries] |
|
|
|
v] Other manufacturing Expenses |
2.940 |
3.234 |
|
vi] Depreciation |
0.486 |
0.373 |
|
|
|
|
|
vii] SUB LOTAL |
|
|
|
|
|
|
|
viii] Add : Opening Stocks-in – Process and Raw Materials |
1.306 |
1.726 |
|
Sub Total |
|
|
|
ix] Deduct : Closing Stocks – in – Process and Raw Material |
1.726 |
1.899 |
|
|
|
|
|
x] Cost of Production |
26.632 |
29.347 |
|
|
|
|
|
xi] Add : Opening stock of finished goods |
-- |
-- |
|
|
|
|
|
Sub-total |
26.632 |
29.347 |
|
|
|
|
|
xii] Deduct : Closing Stock of Finished Goods / Scrap |
-- |
-- |
|
|
|
|
|
xiii] SUB TOTAL [Total cost of sales] |
26.632 |
29.347 |
|
|
|
|
|
6. Selling, General and Administrative Expenses |
1.224 |
1.346 |
|
|
|
|
|
7. Sub total [5+6] |
27.856 |
30.693 |
|
|
|
|
|
8. Operating Profit after interest [3-7] |
2.624 |
2.835 |
|
|
|
|
|
9. Interest |
0.518 |
0.500 |
|
|
|
|
|
10. Operating profit after interest [8-9] |
2.106 |
2.335 |
|
|
|
|
|
11. i] Add : other non-operating income |
|
|
|
A] Interest |
-- |
-- |
|
B] Discount |
-- |
-- |
|
C] Sales Tax Refund |
-- |
-- |
|
Sub Total [income] |
|
|
|
ii] Deduct : Other non-operating expenses |
|
|
|
A] Prel/Pre-op Expenses |
|
|
|
Sub Total [Expenses] |
-- |
-- |
|
Net of other non- operating income / expenses [net of 11 [i] and [ii]] |
-- |
-- |
|
12. Profit before tax / [loss] [10 + 11 [iii]] |
2.106 |
2.335 |
|
Income Tax |
0.556 |
0.633 |
|
|
|
|
|
Net Profit / [Loss] [12-13] |
1.550 |
1.702 |
|
|
|
|
|
15. a] Equity divided paid |
0.180 |
0.210 |
|
B] Dividend rate [Drawing] |
-- |
-- |
|
16. Retained Profit [14-15] |
1.370 |
1.492 |
|
|
|
|
|
Retained profit / Net profit [% age] |
88 % |
88 % |
STATEMENT SHOWING
PROJECTED BALANCE SHEET
|
PARTICULAR |
FOR THE YEAR
ENDED ON |
|||||
|
|
|
31.03.2009 Projected |
31.03.2010 Projected |
31.03.2011 Projected |
31.03.2012 Projected |
31.03.2013 Projected |
|
|
|
|
|
|
|
|
|
SOURCES OF FUNDS
|
|
|
|
|
|
|
|
CAPITAL |
|
5.691 |
7.201 |
8.942 |
10.652 |
12.387 |
|
RESERVES AND SURPLUS |
|
0.318 |
0.318 |
0.318 |
0.318 |
0.318 |
|
CASH CREDIT |
|
3.500 |
3.500 |
3.500 |
3.500 |
3.500 |
|
TERM LOAN [OLD] |
|
0.775 |
0.775 |
0.775 |
0.775 |
0.775 |
|
UNSECURED LOANS |
|
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
SUNDRY CREDITORS |
|
1.381 |
1.619 |
1.781 |
1.781 |
1.781 |
|
OUTSTANDING EXPENSES |
|
0.180 |
0.198 |
0.218 |
0.218 |
0.218 |
|
|
|
11.845 |
13.611 |
15.534 |
17.244 |
18.979 |
|
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
FIXED ASSETS |
|
|
|
|
|
|
|
Opening WDV |
|
4.561 |
4.026 |
3.612 |
3.247 |
2.923 |
|
Less : Depreciation |
|
0.534 |
0.414 |
0.365 |
0.323 |
0.287 |
|
Closing WDV |
|
4.026 |
3.612 |
3.247 |
2.923 |
2.636 |
|
INVESTMENTS |
|
0.770 |
1.240 |
1.340 |
1.440 |
1.540 |
|
DEPOSITS AND ADVANCES |
|
0.019 |
0.019 |
0.019 |
0.019 |
0.019 |
|
CLOSING STOCK |
|
1.726 |
1.899 |
2.088 |
2.088 |
2.088 |
|
SUNDRY DEBTORS |
|
4.932 |
5.425 |
5.968 |
5..968 |
5.968 |
|
CASH AND BANK BALANCE |
|
0.372 |
1.416 |
2.872 |
4.806 |
6.728 |
|
|
|
11.845 |
13.611 |
15.534 |
17.244 |
18.979 |
|
PROPRIETORS’ CAPITAL A/C |
||||||
|
PARTICULAR |
|
31.03.2009 Projected |
31.03.2010 Projected |
31.03.2011 Projected |
31.03.2012 Projected |
31.03.2013 Projected |
|
|
|
|
|
|
|
|
|
Opening Balance |
|
3.247 |
5.691 |
7.201 |
8.942 |
10.652 |
|
Add : Addition |
|
1.300 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
|
1.324 |
1.720 |
1.981 |
2.010 |
2.035 |
|
|
|
5.871 |
7.411 |
9.182 |
10.952 |
12.687 |
|
|
|
|
|
|
|
|
|
Less : Withdrawals |
|
0.180 |
0.210 |
0.240 |
0.300 |
0.300 |
|
Closing Balance |
|
5.691 |
7.201 |
8.942 |
10.652 |
12.387 |
STATEMENT SHOWING
ESTIMATED PROFITABILITY
|
PARTICULAR |
FOR THE YEAR ENDED ON |
|||||
|
|
|
31.03.2009 Projected |
31.03.2010 Projected |
31.03.2011 Projected |
31.03.2012 Projected |
31.03.2013 Projected |
|
|
|
|
|
|
|
|
|
INCOME |
|
|
|
|
|
|
|
Sales |
|
30.000 |
33.000 |
36.300 |
36.300 |
36.300 |
|
Servicing Charges |
|
0.480 |
0.528 |
0.581 |
0.581 |
0.581 |
|
|
|
30.480 |
33.528 |
36.881 |
36.881 |
36.881 |
|
|
|
|
|
|
|
|
|
DIRECT EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
|
21.000 |
23.100 |
25.410 |
25.410 |
25.410 |
|
Outside Labour Charges |
|
2.400 |
2.640 |
2.904 |
2.904 |
2.904 |
|
Wags |
|
2.100 |
2.310 |
2.541 |
2.541 |
2.541 |
|
Electricity |
|
0.300 |
0.330 |
0.363 |
0.363 |
0.363 |
|
Transport and Freight |
|
0.480 |
0.528 |
0.581 |
0.581 |
0.581 |
|
Factory Expenses |
|
0.060 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Direct Expenses |
|
26.340 |
28.908 |
31.799 |
31.799 |
31.799 |
|
GROSS PROFIT |
|
4.140 |
4.620 |
5.082 |
5.082 |
5.082 |
|
INDIRECT EXPENSES |
|
|
|
|
|
|
|
Bank Charges |
|
0.030 |
0.033 |
0.036 |
0.036 |
0.036 |
|
Bonus |
|
0.150 |
0.165 |
0.182 |
0.182 |
0.182 |
|
ESIC |
|
0.072 |
0.079 |
0.087 |
0.087 |
0.087 |
|
Grampanchayat Tax |
|
0.060 |
0.066 |
0.073 |
0.073 |
0.073 |
|
Labour Welfare |
|
0.072 |
0.079 |
0.087 |
0.087 |
0.087 |
|
Legal and Professional Fees |
|
0.048 |
0.053 |
0.058 |
0.058 |
0.058 |
|
Office Expenses |
|
0.072 |
0.079 |
0.087 |
0.087 |
0.087 |
|
Postage and Courier |
|
0.030 |
0.033 |
0.036 |
0.036 |
0.036 |
|
Printing and Stationery |
|
0.021 |
0.023 |
0.025 |
0.025 |
0.025 |
|
Provident Fund |
|
0.150 |
0.165 |
0.182 |
0.182 |
0.182 |
|
Repairs and Maintenance |
|
0.090 |
0.099 |
0.109 |
0.109 |
0.109 |
|
Telephone Expenses |
|
0.060 |
0.066 |
0.073 |
0.073 |
0.073 |
|
Traveling Expenses |
|
0.300 |
0.330 |
0.363 |
0.363 |
0.363 |
|
Vehicles Maintenance |
|
0.048 |
0.053 |
0.058 |
0.058 |
0.058 |
|
Water Charges |
|
0.021 |
0.023 |
0.025 |
0.025 |
0.025 |
|
Depreciation |
|
0.534 |
0.414 |
0.365 |
0.323 |
0.287 |
|
Indirect
Expenses |
|
1.758 |
1.760 |
1.846 |
1.804 |
1.768 |
|
OPERATING PROFIT
|
|
2.382 |
2.860 |
3.236 |
3.278 |
3.314 |
|
Less : Interest on |
|
|
|
|
|
|
|
Cash Loan |
|
0.018 |
-- |
-- |
-- |
-- |
|
Cash Credit |
|
0.500 |
0.500 |
0.500 |
0.500 |
0.500 |
|
|
|
0.518 |
0.500 |
0.500 |
0.500 |
0.500 |
|
Net Profit Before Tax |
|
1.864 |
2.360 |
2.736 |
2.778 |
2.814 |
|
Less : Income Tax |
|
0.540 |
0.640 |
0.755 |
0.768 |
0.779 |
|
Net Profit |
|
1.324 |
1.720 |
1.981 |
2.010 |
2.035 |
|
Details of Fixed Assets |
W.D.V. Rs. In Millions |
|
Land and Building |
2.990 |
|
Plant and Machinery |
0.423 |
|
Furniture and Fixture |
0.372 |
|
Other Assets |
0.490 |
General Information
|
Location of Plot, accessibility, proximity to other units |
MIDC Area, Satara |
|
Principal raw materials and sources |
Steel Seatrains |
|
Manufacturing Process |
Fabrication and Assembly |
|
Power : Connected loan and back up availability |
64 HP |
Fixed Assets
- Land and Building
- Furniture
- Plant and Machinery
- Electric Fitting
- Computers
- Car
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.89 |
|
UK Pound |
1 |
Rs.79.65 |
|
Euro |
1 |
Rs.63.06 |
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 |
NO |
|
--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 |
|