MIRA INFORM REPORT

 

 

Report Date :

06.02.2008

 

IDENTIFICATION DETAILS

 

Name :

HANS MACHINERIES PRIVATE LIMITED

 

 

Registered Office :

Satyen Bose Road, Banipur, P S Sankrail, Howrah,- 711 304, West Bengal,

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

13.04.1994

 

 

Com. Reg. No.:

21-62931

 

 

CIN No.:

[Company Identification No.]

U74999WB1994PTC062931

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALH01325C

 

 

PAN No.:

[Permanent Account No.]

AAACH7484E

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Drawing machines for Jute processing components as per customers drawing and specification, Rollers, Pins, Shafts, Housings, Cams, etc.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 87000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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 terms and conditions.

 

LOCATIONS

 

Registered Office /

 Factory :

Satyen Bose Road, Banipur, P S Sankrail, Howrah,- 711 304, West Bengal, India

Tel. No.:

91-33-26792105

Mobile No.:

91-9331020398

Fax No.:

91-33-26793036

E-Mail :

machineries@hansmachineries.com       

ajcandco@gmail.com

machineries@hanspl.com

Website :

www.hansmachineries.com

Area :

15575 Sq. fts.

Location :

Owned

 

DIRECTORS

 

Name :

Mr. Chandrajit Kundu

Designation :

Director  / Finance  Manager

Address :

Satyen Bose Road, Banipur, Howrah – 711 304, West Bengal, India

Date of Birth/Age :

33 years

Qualification :

Graduate

Experience :

10 years

Date of Appointment :

01.04.2001

 

 

Name :

Mr. Samik Sett

Designation :

Director / Quality Assurance Manager

Address :

Satyen Bose Road, Banipur, Howrah – 711 304, West Bengal, India

Date of Birth/Age :

17.07.1980

Qualification :

B.Tech

Experience :

4 years

Date of Appointment :

15.10.2003

 

 

Name :

Mrs. Minakshi Sett

Designation :

Director

Address :

Satyen Bose Road, Banipur, Howrah – 711 304, West Bengal, India

Date of Birth/Age :

54 years

Qualification :

B.A.

Experience :

13 years

Date of Appointment :

01.06.1995

 

 

Name :

Mr. Pradeep Kumar Das

Designation :

Director / Production Manager

Address :

Jhorehat, Andul, Howrah – 711 302, West Bengal, India

Date of Birth/Age :

08.04.1948

Date of Appointment :

01.04.2006

 

 

Name :

Mrs. Sukla Samir Sett

Designation :

Director

Address :

Satyen Bose Road, Banipur, Howrah, West Bengal – 711 304, India

Date of Birth/Age :

08.04.1948

Date of Appointment :

01.04.2006

 

KEY EXECUTIVES

 

Name :

Mr. S. K. Sett

Designation :

Design and Planning Manager

 

 

Name :

Mr. R. Roy

Designation :

Marketing and Sales Manager

 

 

Name :

M/S S A Associates

Designation :

Company Secretary

Tel No:

91-33-25342445/25343481

Mobile No:

91-9630018001

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Mr. Swapan Kumar Sett

 

81500

Mrs. Minakshi Sett

 

114000

 

Equity Shares Breakup (Percentage of Total Equity):

 

Sr No.

Category

Percentage

1

Directors or relative of directors

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Drawing machines for Jute processing components as per customers drawing and specification, Rollers, Pins, Shafts, Housings, Cams, etc.

 

 

Products :
  • High Density Precision Cross Winding Machine (chain Traverse Type) for Jute and Textile Mills
  • Heavy package Ring Twisting machine for Jute and Textile Mills.
  • Rotary Faller Gill Draw Head machine for Jute Mill
  • Rotary Faller Fill First Drawing machine for Jute Mill
  • Rotary Faller Gill Second Drawing machine for Jute Mill
  • Rotary Faller Gill Third Drawing Machine for Jute Mill
  • Different Precision Engineering Components for engineering

      Organizations.

 

 

Exports :

 

Products :
  • Spacers
  • Drawing Machines

Countries :

USA, Nepal, Bangladesh

 

 

Terms :

 

Selling :

L / C, Credit (30 days)

 

 

Purchasing :

L / C, Credit (30 days)

 

PRODUCTION STATUS

 

Particulars

 

 

Installed Capacity

Actual Production

Drawing Machines

 

 

96 mac / year

76 mac / year

 

GENERAL INFORMATION

 

Customers :

India:

  • Alliance Mills (Lessees) Limited,
  • Bally Jute Mill.(Bally, Howrah, West Bengal0
  • Birla Jute Mills (Birlapure, 24 – Paraganas, West Bengal)
  • Gondalpara Jute Mill. (Chandannagar, Hooghly, West Bengal)
  • India Jute Mill (Sreerampore, Hooghly, West Bengal)
  • Kelvin Jute Mill (Titagarh, 24 – Paraganas (N), West Benmgal)
  • Mangalpur Jute Mill (Ranigunj, West Bengal)
  • Northbook Jute Company Limited (Baidyabati, Hooghly, West Bengal)
  • Surya Twines Private Limited (Gardhappa, Panjipara, Uttar Dinajpur, West Bengal)
  • The Empire Jute company Limited (Talpukur, 24- Paraganas (N), West Bengal)
  • Tirupati Jute Industries Limited (Ghusuri, Howrah, West Bengal)
  • Victoria Jute Works (Telinipara, Hooghly, west Bengal)
  • Reliance Jute Mills (International) Limited, (Bhatpara, 24 – Paraganas (N), West Bengal)
  • Dharmesh Textiles Private Limited, (Industrial Area, Bhiwani, haryana)
  • Bhagtara jute Industries (Private) Limited (Palkhed Road, Dindori, Nasik, Maharashtra)
  • The Mahabir Jute Mill (Gorakhpur, Uttar Pradesh)
  • Mahadeo Jute and Industries Limited (Bally, Howrah, West Bengal)
  • Shree hanuman Jute Mill (Ghusuri, Howrah, West Bengal)
  • Wavery Jute Mill (Shyamnagar, 24 – Paraganas (N) West Bengal)
  • Aruna Jute mill (Vizianagarm, Andhra Pradesh)
  • Bobbili Jute Mill (Vizianagarm, Andhra Pradesh)
  • East Coast jute Mill (Vizianagarm, Andhra Pradesh)

 

Abroad:

  • Ariahant Multi Fibres (Sonapur, Biratnagar, Nepal)
  • . M. Jute Mill (Biratnagar, Nepal)
  • Al Haz Jute Mill (Jamalpur, Bangladesh)
  • B S Jute Mill (Faridpur, Bangladesh)
  • Noapara jute Mill (Jessore, Bangladesh)
  • Papular Jute Mill (Jamalpur, Bangladesh)
  • Supreme Jute Mill (Tejpur, bangladesh0
  • Sagar jute Mill (Jessore, Bangladesh)

 

Precision Engineering Equipment:

  • Stone India Limited (16, Taratala Road, Kolkata, West Bengal)
  • C N C Machining Centre Private Limited (Jalan Industrial Complex, Alampore, Howrah, West Bengal)
  • Premium Energy Transmission (/Falta, 24 Paraganas (S), West Bengal)
  • Diesel Locomotive Works (Baranasi)
  • C B F manufacturing LLC (U S A, Indiana)

 

 

No. of Employees :

42  (Office: 6; Factory: 36)

 

 

Bankers :
  • UCO Bank, Banipur Branch
  • State bank of India
  • Indian Overseas Bank

 

 

Financial Institutions:

Small Industries Development Bank of India

SIDBI Tower, 15, Ashok Marg, Lucknow – 226 -001, and Branch office at 8th Floor, 11, Dr. U N Brahmachari Street, Kolkata – 700 017

 

 

Facilities :

Credit Limit of Rs. 3.00 millions

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Agrawal Jajodia and Company

Chartered Accountants

Address :

40, Weston Street, 3rd Floor, Kolkata – 700 013, West Bengal, India

Registration No.:

62931

 

 

Associates/Subsidiaries :

M/s Hans Enterprise

Address: Satyen Bose Road, Howrah – 711 304, West Bengal

Line of Business: Jute machinery Spares

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

200000

Equity Shares

Rs. 10.00 each

Rs. 2.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

197500

Equity Shares

Rs. 10.00 each

Rs. 1.975 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1.975

1.955

1.955

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

19.769

16.849

11.851

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

21.744

18.804

13.806

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

2.917

0.000

2] Unsecured Loans

12.115

9.700

0.000

TOTAL BORROWING

12.115

12.617

0.000

DEFERRED TAX LIABILITIES

2.642

1.721

1.356

 

 

 

 

TOTAL

36.501

33.142

15.162

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

27.977

14.598

9.877

Capital work-in-progress

0.000

13.190

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3.107

4.265

1.807

 

Sundry Debtors
3.496

2.043

1.755

 

Cash & Bank Balances
0.662

0.283

0.248

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
8.025

8.151

6.154

Total Current Assets
15.290

14.742

9.964

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2.435

5.652

2.944

 

Provisions
4.331

3.736

1.735

Total Current Liabilities
6.766

9.388

4.679

Net Current Assets
8.524

5.354

5.285

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

36.501

33.142

15.162

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

44.773

57.896

52.940

Other Income

1.999

0.760

0.611

Total Income

46.772

 58.656

53.551

 

 

 

 

Profit/(Loss) Before Tax

4.486

6.883

5.657

Provision for Taxation

1.566

2.365

2.096

Profit/(Loss) After Tax

2.920

4.518

3.561

 

 

 

 

Expenditures :

 

 

 

 

Financial Charge

1.147

0.398

0.000

 

Depreciation & Amortization

4.082

2.556

1.804

 

Other Expenditure

31.828

45.865

44.286

Total Expenditure

37.057

48.819

46.090

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2007

31.03.2006

31.03.2005

PAT / Total Income

(%)
6.24

7.70

6.64

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
10.01

11.88

10.68

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
10.36

16.18

28.51

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.20

0.36

0.40

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.86

1.17

0.33

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.25

1.57

2.12

 

LOCAL AGENCY FURTHER INFORMATION

 

Name of the company

HANS MACHINERIES PRIVATE LIMITED

Presented By

Shri Samik Sett

Director,

(Name and Designation of the official of the Company)

1) Date and description of instrument creating the change

On 19.05.2005, Deed of Hypothecation executed by the company, in favour of small industries development of India (hereinafter referred to as ‘SIDBI’). A certified copy of the said deed of hypothecation is enclosed.

2) Amount secured by the charge/amount owing on the securities of charge

The Term Loan of Rs. 4.000 millions agreed to be lent and advanced by SIDBI to the company together with interest, additional interest, liquidated damages, costs, charges expenses and all other moneys payable by the company to SIDBI in terms of the loan Agreement dated 19.05.2005 executed between the company of the one part and SIDBI of the other part.

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

Exclusive first charge by way of hypothecation over CNC Horizontal machining Centre [Maxpro H440E] manufactured by Bharat Fritz Werner Limited situated at factory premises of Hans Machineries Private Limited at Satyen Bose Road, Banipur, Howrah. The whole of its movables, plant, machinery, machinery spares, tools and accessories and fixtures and other movables, both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuous of these presents be brought into or upon or be stored or be in or about all the Borrower’s premises, factory, showroom and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery are hereby hypothecated as an by way of exclusive charge.

4) Gist of the terms and conditions and extent and operation of the charge.

The charge operates as exclusive first charge to secure the due repayment and discharge by the company to SIDBI of its Term Loan of Rs. 4.00 millions together with interest, additional interest, liquidated damages, costs, charges, expenses and all other moneys payable by the company under the said loan agreement.

 

The company has undertaken to keep the hypothecated goods in marketable and good condition at its own costs and to insure the same in the joint names of the Company and SIDBI.

 

All the goods hypothecated and all realizations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of SIDBI.

 

The security created under the said Deed of Hypothecation is to be a continuing security.

5) Name and Address and description of the person entitled to the charge.

Small Industries Development Bank of India

SIDBI Tower, 15, Ashok Marg, Lucknow – 226 -001, and Branch office at 8th Floor, 11, Dr. U N Brahmachari Street, Kolkata – 700 017

6) Date  and brief description of instrument modifying the charge

Not Applicable

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.

Not Applicable

 

Trade References:

 

PROFILE OF THE COMPANY:

Subject is in business since 1997 on manufacturing of Jute and Textile machineries.  The company has technically and commercially qualified Personnel and enough resources for manufacturing and development of Jute and Textile machines of any magnitude in India and abroad.  The company has already indigenously developed and marketed Jute Drawing machines at half of the price and having doubled the productivity than that of the conventional machine used in the Jute Industry.

 

The attractiveness of the Subjects includes the following:

 

  1. Established brand name
  2. Assured order from the Jute and Textile Industries
  3. Opportunity for Export
  4. Availability for diversification
  5. Developing new products (Through in house efforts)
  6. Good infrastructure and abilities engineering.

 

 

Diversification:

The company has also taken up manufacturing / machining of precision engineering components on their existing C N C Vertical machining Centre, C N C Turning Center and Induction hardening machine.  Further improvement on this subject will be achieved on receiving of already Horizontal machining Centre.

 

Laboratory and Testing Facilities Available:

  1. Hardness Testing Machine (blue Star – RAB 250)
  2. Universal Testing machine 40 Ton Capacity (Blue Star)
  3. Shore Hardness Tester
  4. Vernier height Gauge. 0 – 1000 mm
  5. Different Dial Type Bore Gauges. Range 18 – 155 mm
  6. Different Vernier range 1000mm
  7. Dial Calipers. 0 to 35 mm
  8. Different Outside Meters range 0 – 225 mm
  9. Different Feeler Gauges
  10. Tool Presetter (Zooler)
  11. Depth Meter range 150mm
  12. Depth Vernier range 200mm
  13. Sleeve Gauge Set 80 Pcs
  14. Chemical Test and Flaw Detection is carried out by outside agencies.

 

Quality Policy:

The subject is dedicated towards manufacturing of Precision Engineering Products which would meet their customer’s requirements and always adhere to the delivery schedule.

 

They will strive for improving their system and their products as well as increase their product range by continually taking customers’ feedback and thereby aim at maximum customer satisfaction.

 

WEBSITE DETAILS:

Subject situated at howrah, India and dedicated to manufacture high precision engineering components. They manufacture precision spares for engines, valves, pumps, compressors as per customer requirement. Further products include various automobile brake discs, drums, rotors, pumps, brackets, spacers, gear box housings, various valves, different shafts, rollers etc.

 

They manufacture all the products with considering them as the end user. Thus all the components are 100% checked and maintained high quality. CNC controlled machines are used to manufacture the products.

 

·         Established in the year 1997

·         Manufactures and develop Jute and Textile machines of any magnitude in India and abroad.

·         Also have a excellent setup for manufacturing high precision engineering components

·         Caters to major OEMs/Customer like Diesel Locomotive works (DLW), TATA Metalics (for TELCON), ,Stone India (for railways)

·         ISO9001:2000 certified company

 

CLIENTS:

·         Flender

·         Tata Steel

·         Crompton Greaves

·         Tata Steel Growth Shop

·         United Conveyor Corporation India Private Limited

·         Stone India

 

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.39.55

UK Pound

1

Rs.76.85

Euro

1

Rs.57.87

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

63

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions