MIRA INFORM REPORT
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Report Date : |
14.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HRITHIK TOOLS PRIVATE LIMITED |
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Registered Office : |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.08.2000 |
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Com. Reg. No.: |
15206 |
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CIN No.: [Company
Identification No.] |
U29299PN2000PTC015206 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEH04341B |
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PAN No.: [Permanent
Account No.] |
AAACN9291F |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing and Regrinding of Cutting Tools and also Trading of
Kennametal Products. |
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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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 fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Anand Mittal |
|
Designation : |
Director |
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Contact No.: |
91-9850073333 |
|
Date : |
07.03.2008 |
LOCATIONS
|
Registered Office / Factory : |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra, India |
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Tel. No.: |
91-20-27111871, 30621873/4/5 |
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Mobile No.: |
91-9822024765 [Mr. S. L. Mittal] |
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Fax No.: |
91-20-27111872 |
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E-Mail : |
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Website : |
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Area : |
18000 sq. ft. [Owned] |
DIRECTORS
|
Name : |
Mr. Suresh L. Mittal |
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Designation : |
Director |
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Address : |
55/11, Kakade Paradise, Ashok Path, Law
College Road, Pune – 411004 |
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PAN No.: |
AFBPM1875R |
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Qualification : |
B. Com. |
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Experience : |
25 Years |
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Name : |
Mrs. Ranidevi Mittal |
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Designation : |
Director |
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Address : |
55/11, Kakade Paradise, Ashok Path, Law
College Road, Pune – 411004 |
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PAN No.: |
AGUPM4720D |
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Qualification : |
B. Com. |
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Experience : |
15 Years |
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Name : |
Ms. Anjali Mittal |
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Designation : |
Director |
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Qualification : |
M. Com. |
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Experience : |
2 Years |
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Name : |
Mr. Anand Mittal |
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Designation : |
Director |
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Address : |
A/6 701, Ganga Satellite, Wanowrie, Pune -
411040 |
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Qualification : |
M. BA. |
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Experience : |
8 Years |
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Name : |
Mrs. Leena Juriasinghani |
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Designation : |
Director |
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Address : |
Flat No. E-601, 10 Kasturkunj, S. No. 132B,
ICS Colony, off University Road, Shivajinagar, Pune – 411007 |
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Qualification : |
B. Com. |
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Experience : |
5 Years |
KEY EXECUTIVES
|
Name : |
Mr. Sumesh Dalvi |
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Designation : |
Factory Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Existing Share Holding Pattern
|
Names of Shareholders |
|
Percentage of
Holding |
|
Mr. Suresh L Mittal |
|
50 % |
|
Mrs. Ranidevi S Mittal |
|
50 % |
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Total |
|
100
% |
Proposed Share Holding Pattern
|
Names of Shareholders |
|
Percentage of
Holding |
|
Mr. Suresh L Mittal |
|
19 % |
|
Mrs. Ranidevi S Mittal |
|
19 % |
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Ms. Anjali S. Mittal |
|
16 % |
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Mr. Anand I. Mittal |
|
23 % |
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Mrs. Leena S. Juriasinghani |
|
23 % |
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Total |
|
100 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Regrinding of Cutting Tools and also Trading of
Kennametal Products. |
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Products : |
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Agencies Held : |
Kennametal India Limited |
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Imports : |
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Products : |
PVD Coating System – Peripherals |
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Countries : |
The Netherlands |
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Terms : |
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Selling : |
Credit [60 days] |
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Purchasing : |
Credit [60 days] |
PRODUCTION STATUS
Installed Capacity
Present Installed Capacity Rs. 42.500 Millions
Proposed Installed Capacity Rs. 100.000 Million
Production
Capacity
At present 100 % of production capacity is being utilized.
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
End Users, OEM’s and Machine Users
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No. of Employees : |
25 [In Office : 10; In Factory : 15] |
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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 : |
Basavaraj Masanagi Chartered Accountants |
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Office Address : |
Office No. 10, 2nd Floor, Bhosale Shinde Arcade, J. M.
Road, Deccan Gymkhana, Pune, Maharashtra, India |
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Tel. No.: |
91-20-25536667 |
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Head Office
Address : |
302, 3rd Floor, Arenja Arcade, Sector – 17, Next to Apna
Bazar, Vashi, Navi Mumbai – 400703 |
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Tel. No.: |
91-22-3912 / 27890181 |
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Mobile No.: |
91-9322226236 |
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Fax No.: |
91-22-67911035 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
||
|
25000 |
Equity Shares |
Rs. 100/- each |
Rs. 2.500 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
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|||
|
23000 |
Equity Shares |
Rs. 100/- each |
Rs. 2.300 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
|
|
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1] Share Capital |
2.300 |
2.300 |
2.300 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
6.987 |
5.953 |
3.816 |
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|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
9.287 |
8.253 |
6.116 |
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|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
14.310 |
6.727 |
10.035 |
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2] Unsecured Loans |
[0.599] |
2.368 |
1.898 |
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|
TOTAL BORROWING |
13.711 |
9.095 |
11.933 |
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|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
22.998 |
17.348 |
18.049 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
18.411 |
19.879 |
14.941 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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|
|
|
|
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|
|
INVESTMENT |
0.148 |
0.085 |
0.085 |
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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 |
2.234
|
0.653 |
0.000 |
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Sundry Debtors |
7.940
|
7.021 |
4.771 |
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|
Cash & Bank Balances |
0.084
|
0.100 |
0.034 |
|
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Other Current Assets |
0.205
|
0.781 |
0.356 |
|
|
Loans & Advances |
0.203
|
0.000 |
0.396 |
|
Total
Current Assets |
10.666
|
8.555 |
5.557 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
|
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Current Liabilities |
5.797
|
9.589 |
1.695 |
|
|
Provisions |
0.467
|
1.632 |
0.901 |
|
Total
Current Liabilities |
6.264
|
11.221 |
2.596 |
|
|
Net Current Assets |
4.402
|
[2.666] |
2.961 |
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|
|
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|
MISCELLANEOUS EXPENSES |
0.037 |
0.050 |
0.062 |
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|
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|
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TOTAL |
22.998 |
17.348 |
18.049 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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|
|
|
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|
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Sales Turnover |
21.663 |
19.660 |
12.462 |
|
|
Other Income |
0.318 |
0.035 |
0.046 |
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Total Income |
21.981 |
19.695 |
12.508 |
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|
|
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|
|
|
|
Profit/(Loss) Before Tax |
1.571 |
3.093 |
1.699 |
|
|
Provision for Taxation |
0.537 |
0.955 |
0.000 |
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|
Profit/(Loss) After Tax |
1.034 |
2.138 |
1.699 |
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|
|
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|
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Expenditures : |
|
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|
|
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Manufacturing and Other Expenses |
16.537 |
12.728 |
6.753 |
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Borrowing Cost |
1.218 |
1.443 |
1.407 |
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|
Depreciation & Amortization |
2.656 |
2.431 |
2.650 |
|
Total Expenditure |
20.411 |
16.602 |
10.810 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
4.70
|
10.86 |
13.58 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.25
|
15.73 |
13.63 |
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|
|
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.40
|
10.88 |
8.29 |
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|
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|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.37 |
0.28 |
|
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Debt Equity Ratio (Total Liability/Networth) |
|
2.15
|
2.46 |
2.38 |
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|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
0.76 |
2.14 |
TENTATIVE BALANCE
SHEET
[1st
April 2007- 29th February 2008]
|
LIABILITIES |
|
AMOUNT |
ASSETS |
|
AMOUNT |
|
|
|
|
|
|
|
|
CAPITAL ACCOUNT |
|
2.300 |
FIXED ASSETS |
|
19.238 |
|
Mr. Suresh
Mittal |
1.150 |
|
|
|
|
|
Mrs. Ranidevi
Mittal |
1.150 |
|
Investments |
|
0.176 |
|
|
|
|
HDFC Prudence
Fund |
0.021 |
|
|
|
|
|
HSBC Mutual Fund
|
0.021 |
|
|
SHARE APPLICATION
A/C |
|
4.380 |
Prudential ICICI
Power |
0.027 |
|
|
Mr. Anand Mittal
|
1.380 |
|
Reliance Vision
Power |
0.027 |
|
|
Mrs. Leena
Jurasinghani |
3.000 |
|
shares |
0.080 |
|
|
|
|
|
|
|
|
|
RESERVE AND
SURPLUS |
|
5.289 |
CURRENT ASSETS |
|
13.491 |
|
|
|
|
Closing Stock |
0.753 |
|
|
LOANS
[LIABILITY] |
|
10.392 |
Deposits |
0.071 |
|
|
Bank Overdraft |
0.299 |
|
Loans and
Advances |
0.029 |
|
|
Secured loans |
2.612 |
|
Sundry Debtors |
11.180 |
|
|
Loans from
Directors |
2.605 |
|
Citibank Current
A/c |
0.654 |
|
|
Citibank Hsg
Loan |
4.876 |
|
Cash in Hand |
0.039 |
|
|
|
|
|
Bank Accounts |
0.012 |
|
|
CURRENT
LIABILITIES |
|
3.347 |
Advance Tax A.Y.
07-08 |
0.403 |
|
|
Duties and Taxes
|
2.628 |
|
Interest Accrued
on F.D. |
0.013 |
|
|
Provisions |
0.293 |
|
TDS Received |
0.335 |
|
|
Sundry Creditors
|
0.426 |
|
Tools and Equipments
|
0.002 |
|
|
|
|
|
|
|
|
|
ADVANCES |
|
1.000 |
PRELIMINARY
EXPENSES |
|
0.037 |
|
Advance against
sale of shop |
1.000 |
|
Preliminary
Expenses |
0.037 |
|
|
|
|
|
|
|
|
|
PROFIT AND LOSS
A/C |
|
6.234 |
|
|
|
|
Opening Balance |
1.441 |
|
|
|
|
|
Current Period |
4.793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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TOTAL |
|
32.942 |
TOTAL |
|
32.942 |
TENTATIVE PROFIT
AND LOSS ACCOUNT
[1st
April 2007- 29th February 2008]
|
PARTICULARS |
|
AMOUNT |
PARTICULARS |
|
AMOUNT |
|
|
|
|
|
|
|
|
Opening Stock |
|
|
Sales Accounts |
|
24.732 |
|
Stock in Hand |
0.653 |
0.653 |
|
|
|
|
|
|
|
Closing Stock |
|
|
|
Purchase
Accounts |
|
11.445 |
Stock in Hand |
0.753 |
0.753 |
|
|
|
|
|
|
|
|
Direct Expenses |
|
|
|
|
|
|
Freight and
Octroi |
0.336 |
|
|
|
|
|
Repairs and
Maintenance |
0.118 |
|
|
|
|
|
Stores and
Consumables |
0.170 |
0.624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit c/o |
|
12.763 |
|
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|
|
|
|
|
|
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|
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TOTAL |
|
25.485 |
TOTAL |
|
25.485 |
|
|
|
|
|
|
|
|
Indirect
Expenses |
|
4.229 |
Gross profit c/o |
|
12.763 |
|
|
|
|
|
|
|
|
Salary and Wages
|
2.474 |
|
Indirect Incomes
|
|
0.195 |
|
Computer
Maintenance |
0.022 |
|
Bad Debts
Recovery |
0.009 |
|
|
Consultancy
Charges |
0.000 |
|
DSE Subsidy |
0.024 |
|
|
Electricity
Charges |
0.348 |
|
Intensives |
0.162 |
|
|
Electricity
Repair Charges |
0.016 |
|
Rounding offs |
0.000 |
|
|
Fire Protection
Fund |
0.020 |
|
|
|
|
|
Insurance A/C |
0.069 |
|
|
|
|
|
Interest on
profession tax |
0.000 |
|
|
|
|
|
Interest on
Sales Tax |
0.000 |
|
|
|
|
|
Interest on TDS |
0.001 |
|
|
|
|
|
Loan Processing
Charges |
0.021 |
|
|
|
|
|
Petrol Expenses |
0.118 |
|
|
|
|
|
Property Taxes |
0.020 |
|
|
|
|
|
ROC Filling
Charges |
0.006 |
|
|
|
|
|
Security Charges
|
0.011 |
|
|
|
|
|
Services Tax
paid A/C |
0.510 |
|
|
|
|
|
Software
Maintenance Charges |
0.001 |
|
|
|
|
|
Staff welfare
Charges |
0.137 |
|
|
|
|
|
Telephone
Expenses |
0.138 |
|
|
|
|
|
Telephone Repair
Charges |
0.000 |
|
|
|
|
|
Tours and
Traveling |
0.242 |
|
|
|
|
|
Traveling
Expenses |
0.018 |
|
|
|
|
|
Vehicles Repairs
and Maintenance |
0.012 |
|
|
|
|
|
Eater Charges |
0.016 |
|
|
|
|
|
Other Expenses |
0.029 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
2.291 |
|
|
|
|
|
|
|
|
|
|
|
Financial
Expenses |
|
0.445 |
|
|
|
|
Bank Charges |
0.150 |
|
|
|
|
|
Interest on T/L
A/c No. 2405727 |
0.197 |
|
|
|
|
|
Interest on T/L
A/c No. 2405731 |
0.098 |
|
|
|
|
|
|
|
|
|
|
|
|
Office Expenses |
|
0.419 |
|
|
|
|
Legal Expenses |
0.001 |
|
|
|
|
|
Office Expenses |
0.273 |
|
|
|
|
|
Postage and
Courier Charges |
0.054 |
|
|
|
|
|
Printing and
Stationery |
0.051 |
|
|
|
|
|
Professional
Charges |
0.040 |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
Distribution Charges |
|
0.060 |
|
|
|
|
Advertisement
Charges |
0.008 |
|
|
|
|
|
Discount Allowed
|
0.052 |
|
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|
|
|
|
|
|
|
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|
|
TDS Applicable
Expenses |
|
0.721 |
|
|
|
|
Accountancy
Professional Charges |
0.005 |
|
|
|
|
|
Commission on
Sales |
0.016 |
|
|
|
|
|
Directors
Remuneration |
0.700 |
|
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|
|
|
|
|
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|
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|
Net Profit |
|
4.793 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
|
12.958 |
TOTAL |
|
12.958 |
LOCAL AGENCY
FURTHER INFORMATION
The Registered Office of the company has been shifted from 71/1B/11,
Paras Industrial Estate, T Block, MIDC, Bhosari, Pune – 411026, Maharashtra to
the present address w.e.f. 2005
|
SERVICE
TAX |
STC / BA / BAS / 832 / PI-04 |
|
S.S.I.
Registration No. |
111925009 dt. 15.09.2000 |
|
C.S.T.
No. |
27870202442 C |
|
TIN
NO. |
27870202442 V |
|
B.S.T.
No. |
411026/S/1983 |
|
V.A.T |
27870202442 V |
|
EXCISE
REGN. NO. |
AAACH9291FXM001 AAACH9291FXD001 |
|
RANGE |
BHOSARI V.P.J. CHEMBERS,PIMPRI
/ DIVISION : PUNE V |
|
S.S.I.
Registration No. |
111925009 dt. 15/09/2000 |
|
I/Tax
Permanent A/C No. |
AAACH9291F |
|
Year
Of Commencement |
January , 2001. |
TRADE REFERENCE
|
Reference : |
Kailas Toolings Private Limited, Kolhapur |
|
Name of the Person : |
Mr. Kailash Kulkarni [Accountant Manager] |
|
Contact Number : |
91-9850899961 |
|
Since How Long Known : |
Last 3 Years |
|
Experience : |
Nice Company. Toolings are Good |
|
Maximum Limit Dealt : |
Maximum Credit Limit given by them – [45-60
days] |
|
|
|
|
Reference : |
Shelik Industries |
|
Name of the Person : |
Mr. Radhakrishnan [Accountant Manager] |
|
Contact Number : |
91-20-24352096 |
|
Since How Long Known : |
More than 5 Years |
|
Experience : |
Its Good |
|
Maximum Limit Dealt : |
Maximum Credit |
|
|
|
|
Reference : |
Alpha Industries [Said – Since last 2 years
not working with the company] |
|
Name of the Person : |
Mr. Vishal |
INTRODUCTION
Hrithik Tools is the
first of its kind set-up in India & unique in the sense that it is solely
dedicated to Manufacturing, Resharpening and Coating of Solide Carbide Cutting
Tools on a 6 Axis and 5 Axis CNC Machine.
The unit
was implemented in the month of February, 2001. The unit is headed by Mr.
Suresh Mittal, a successful business entrepreneur having 16 years experience.
The routine activities are looked after by Mr. Sumesh Dalvi [Application
manager] who is basically a Software engineer having 10 years experience in the
field of tool engineering and software. There exist well defined working
systems.
The salient features of Hrithik
Tools are as follows
- First of its kind CNC
Tool Resharpening Center in India
- Have 5 axes CNC Tool
and Cutter grinding machine, Ecogrind X5 model manufactured by Widia, Bangalore.
- The CNC m/c is supplied
with a very powerful and user friendly graphic supported software imported
from Germany
- The m/c is equipped
with Renishaw probe for precisely sensing tool and end face and tool rake
face and spiral lead.
- The m/c equipped with
Schunk, Germany make hydro grip collets chuck having superb accuracy of 3
um for run out.
- The m/c has a
resolution of 0.001 mm for linear axes and 0.001 degree for rotary axes
resulting into superfine interpolation.
- The resharpened tools
are 100 % inspected and a copy of inspection report is given to the
customer.
- The Standards Room is
equipped with a versatile profile projector with magnifications 10X, 20X,
and 50X. It has Episcope and Diascopic illumination facility. The
multifunction Delta microprocessor can compute up to 9 functions.
- Resharpening and
recoating service offered by them is well appreciated by the customers all
over. It is beneficial to the customer because of savings on cost of paper
work, follow-up lead time and people involved therein.
PROFILE
- Hrithik Tools was
incorporated in February 2001, as an authorized Resharpening Centre of
Kennametal [India] Limited. Subject is an ISO 9001:2000 Certified Company
- The company is having a
good tool manufacturing and regrinding facility with 3 CNC Tool and Cutter
grinding Machines cool inspection equipments required.
- The company has a tie
up with Balzinspection equipments required.
- The company has a tie
up with Balzers India, Pune and Ionbond, Pune for coating of tools
- Efficient and skilled
manpower of 24 personnel consisting of well qualified engineers team.
Aggressive marketing and administrative team and skilled machine
operators
- The company is working
in 2 shifts presently at a capacity of 100 % and plans to introduce new
machineries as soon as possible
- The company is having a
strong customer base of over 1000 customers including big and reputed
customers like Hero Honda, Bharat Forge, Kalyani Group, Kirloskar Group,
Lumax, Thermax, etc. other than these, customers in the small scale
industry are also having good working relations with Hrithik Tools.
- Resharpening and
Recoating services are well appreciated by customers all over.
INTRODUCTION OF DIRECTORS
Mr. Suresh Mittal – Managing
Director
Mr.
Suresh Laxminarayan Mittal is in cutting tool business form last 7 years. He is
Managing Director of Hrithik Tools Private Limited established in 2001 having a
turnover of Rs. 20 Millions. Mr. Suresh Mittal is a very dynamic personality
who posses knowledge of cutting tool market and is a financial expert of the
company, looks after total banking, fund management, taxation matters, most
profitable deployment of surplus funds, tapping the potential of National and
International markets. Office administration and related formalities, which is
of tremendous help for the growth of the company. He also looks after the
management. Coordination and maintenance of machineries of factory and is also
involved in search for new process through latest market research and machines
and also handles factory problems.
Mrs. Rani Mittal – Director
She is
wife of Mr. Suresh Mittal and one of the Directors of Hrithik Tools Private
Limited. Prior to this she successfully handled a business in the name of Pooja
Suppliers which was supplying uniforms to various schools, hotels and
industries in Pune for 10 years. Now she is involved in all important decision
making process for the future growth of the company. She always supported them
with her remarkable experience and knowledge in manufacturing business. She
believes that “Sky is not the limit”.
Introduction of New
Directors
Mr. Anand ishwarchand Mittal
He is a
post graduate M.B.A. degree in marketing and finance. Has a work experience of
above 4 years and is the project in charge for PVD coating plant. He already
has investments to the tune of Rs. 5.000 Millions which will be invested in the
new project.
Ms. Anjali Suresh Mittal
She is
the daughter of Mr. Suresh Mittal, the Managing Director of Hrithik Tools
Private Limited. She is currently employed in Hrithik Tools Private Limited as
Asst. Accountant. Currently pursuing M. Com. Degree from Symbiosis College.
Pune she will be taken as the new director in the company. Mr. Suresh Mittal
will be investing on her behalf from his personal savings.
Mrs. Leena Sham Jurasinghani
She is a
housewife by profession and has investments and properties worth above 10
millions. Her husband Mr. Sham Jurasinghani is a family friend of Mr. Suresh
Mittal and is a successful businessman who recommended his wife as a director
in Hrithik Tools Private Limited. She will be investing up to Rs. 9.000
Millions in the new project.
NEW PROJECT AND COATING PLANT
Hrithik
Tools sub contract the recoating of tools to other companies. As these
companies have a hug workload of tools for coating. They are not able to
deliver the coated tools before 4 to 5 days. This period affects the production
and delivery period. As delivery period of goods has become a very important
subject in industry, subject is looking for quick delivery to its customers. So
is has decided to set up its own PVD coating plant for its own in house tools
and as a service provider to other tool manufacturers and tool users.
PURPOSE OF PUTTING A COATING
PLANT
- To break the monopoly
of major players in PVD Coating.
- High Potential growth
in tool coating market.
- To provide better
service at competitive price to exiting and new customers.
- To research and develop
of new coating types for higher productivity.
ABOUT PVD
Physical
Vapour Disposition, PVD a group of vacuum coating techniques that are used to
deposit thin film coatings that enhance the properties and performance of tools
and machine components.
PVD
coatings are used in a vast array of industries and hundreds if not thousands
of application as diverse as "self-cleaning"
windows, medical implants, cutting tools, decorative fittings and Formula 1
racing parts. Here is a quick introduction to two of the main application areas for PVD coatings.
PVD COATINGS
PVD coatings are generally into
two sub divisions, “hard” coatings and low friction coatings.
Hard PVD ceramic coatings
- What are they made of?
Hard materials suitable for thin films are predominantly but
not entirely carbides, nitrides, borides and silicides of the IVth, Vth and
VIth groups of the periodic table. Such materials are formed by introducing
nitrogen, hydrocarbon, or silicide during the sputtering process. It is thought
that the compound is formed at the surface of the substrate. An example being
titanium aluminium carbo-nitride, TiAlCN.
Artists's impression of
the structure of TiAlCN
Hard PVD ceramic
coatings are used in many
applications because of their outstanding wear resistant properties. They have
continually developed but can be divided into four distinct generations.
Hard PVD ceramic coatings
- Single metal nitride PVD coatings e.g. TiN, CrN, ZrN
The first generation of hard PVD coatings were
single metal nitrides such as TiN, CrN and ZrN. They have been exploited
commercially since the middle of the 80’s in cutting applications because of
their higher hardness compared to high speed steel and cemented carbide and for
decorative purposes because of their attractive appearance. TiN has a
distinctive yellow-gold colour, CrN looks unsurprisingly like chrome and ZrN
has a green-gold colour. ZrCN is used to simulate gold in decorative
applications such as watch cases.
Hard PVD ceramic coatings
- Alloyed elements improve oxidation resistance, e.g. TiAlN
This improvement in temperature resistance was
achieved by introducing other elements such as Cr, Al or Y, into the TiN lattice.
Hard
PVD ceramic coatings - The development of superlattices
Further improvement to the properties of hard PVD coatings was
achieved in the third generation of hard
PVD coating development through
the deposition of multilayers and superlattices. These are thin films formed by
alternately depositing two
different components to form layered structures. Multilayers become
superlatices when the period of the different layers is less than 100Ĺ.
Hard
PVD ceramic coatings - The recent development of nanocomposite coatings
A nanocomposite coating consists
of at least two phases: a
nanocrystalline phase and an amorphous phase, or two nanocrystalline phases. The basic idea for the design of
nanocomposites is based on the thermodynamically driven segregation in binary
(ternary, quaternary) systems. The segregation leads to the spontaneous
self-organization of a stable nanoscale structure. This generic concept has
recently led to the development of nanocomposite PVD coatings. These
PVD coatings have nanometer sized grains and exhibit enhanced yield
strength, hardness and toughness properties as a result of the well-known
Hall-Petch effect . The only PVD
nanocomposite coating currently commercially available is supplied by Unimerco,
Platit and SHM.
PVD coatings for tooling.
In the areas of machining and tooling PVD coatings are widely used to increase the life and
productivity of production tools saving companies billions of dollars
worldwide. The use of PVD coatings saves companies money in three ways.
Firstly PVD
coated tools can be run faster
reducing cycle times and enabling the production
of more components in less time.
Secondly PVD coatings reduce wear and pickup
reducing downtime due to tool replacement.
Finally PVD coatings reduce the need for cutting
fluid. Cutting fluids cost companies
today up to 15% of their total production
costs. PVD coatings can be run dry or with very
limited amount of fluid.
PVD
coatings for cutting tools
The introduction of PVD coatings for cutting tools in the
metal cutting industry is one of the main success stories in the industrial
application of modern coating technology over the last 30 years. The first PVD
coating material to have a commercial application on cutting tools was TiN in
the early 1980s and since the 1990s most cutting tools are PVD coated
particularly in applications where sharp edges are required, e.g.
threading, grooving, end-milling, etc. and in cutting applications that have a
high demand for a tough cutting edge, e.g. drilling. In solid carbide
cutting tools (end-mills and drills) PVD is the standard coating technology.
The TiAIN PVD Coating is currently the most widely deposited PVD coating for
cutting tools but other coatings such as TiCN and CrN offer better solutions in
certain applications.
ADVANTAGES
FOR CUTTING TOOLS
PVD coatings on cutting tools - Saves companies billions
In the areas of machining and tooling PVD coatings are widely used
to increase the life and productivity of production cutting tools saving
companies billions of dollars worldwide. The use of PVD coatings on cutting
tools saves money in three ways.
PVD coated cutting tools - Run tools faster
Firstly PVD coated cutting tools can be run faster reducing cycle
times and enabling the production of more components in less time.
PVD coatings on cutting tools - Reduce the need for cutting
fluid
Cutting fluids cost companies today up to 15% of their total
production costs. High speed cutting and dry machining involve extremely high
temperatures at the cutting edge. PVD coatings such as TiAIN have incredible
thermal stability, hot hardness and oxidation resistance. PVD coatings can
therefore be run dry or with very limited amount of cutting fluid.
PVD coated cutting tools - Cut hard materials
PVD coated cutting tools can cut extremely hard materials e.g. 63
HRC.
Re-sharpening and re-coating of cutting tools
Companies such as Unimerco offer a re-sharpening and re-coating service for
cutting tools. The cutting tools achieve the same performance as new coated
tools.
PVD
coatings for components
In the area of machine components low friction coatings
reduce energy losses and the need for lubricant. Hard [2000 VHN], wear
resistant, low frication coatings can be deposited with a frication coefficient
<1/2 that possible using oil lubrication therefore eliminating the need for
lubricant. These coatings are used extensively in motor sport.
WHY DO
PVD COATINGS IMPROVE PERFORMANCE ?
Low deposition temperature
PVD coatings can be deposited at temperatures below 500 deg.C. This allows
substrates such as bearing steels and titanium or aluminium alloys to be
coated. This would not be possible using chemical vapour deposition, CVD. The
coating temperature can even be reduced to such a level that polymers can be
coated.
Smooth coatings
Magnetron sputtered coatings follow the exact surface roughness of the
substrate material. If a fingerprint was present before coating you will see it
after coating. Smooth coatings are vital for applications such high precision
forming
High hardness
PVD coatings are deposited while under concurrent ion bombardment. These
energetic ions allow the deposition of dense, hard films by supplying the
sputtered neutrals with sufficient energy to find a suitable nucleation site
and inducing high compressive stress.
MARKET
CONDITION FOR PVD COATING
PVD coatings applications - cutting tools is the leading
application
Tool coatings continue to represent a significant proportion of
the applications for PVD technology. However recently, the application of low friction,
wear resistant PVD coatings in the area of components has expanded. Typical
specific applications are fuel injection systems, roller and plain bearings for
harsh environments, gears, pumps and compressors. A BMBF study published in
1996 estimated the market for wear protective coatings as 83 billion €.
PVD coatings applications - Market volume
This has expanded to the point that the world-wide market
for coatings produced under vacuum is estimated to be well over 200 million €.
No figures are in the public domain for the component market but in 2000 it was
estimated to be worth approximately 1.5 billion €. Future growth of the machine
tooling market is difficult to predict but market forecasters expected a growth
of at least 8% by 2008.
CONCLUSION
Importance of coating of tool
Machining
of mechanical parts has changed drastically over the past few years in India.
Globalization of market has led to increasing competition and demands for
productivity, flexibility and cost reduction.
In order
to keep pace with new performance levels, tool manufacturers have to innovate
and develop new methods to get higher productivity form tools. Coating of tools
is one and important method to get higher productivity from tools.
Coating
tools and precision components increases their performance by several orders of
magnitude. The coating
opens new dimensions in manufacturing and design with clear cost advantages in
numerous applications.
Coated tools
- Improving productivity
- Reduce production costs
- Increase process
reliability
- Improve products
quality
- Shorten delivery times
- reduce the environmental impact
save resources
In
short, coated tools gives the performance you need to meet the
increasing demands of modern manufacturing technologies. Make use of these
advantages for cutting, punching, forming, metal die casting and plastics
processing.
Coating on precision components
- Makes higher
performance available with smaller dimensions and weight
- Increases
service life and functional reliability
- Enables
expensive special materials to be replaced
- Reduces
lubricant consumption and maintenance costs
- Protects when
running dry
- Improves corrosion resistance
For example,
coatings make gearboxes run more reliably and able to accept higher loads,
reduce engine fuel consumption, increase the performance of pumps and
compressors and make them more environmentally friendly.
SURVEY DONE BY HRITHIK TOOLS REGARDING
COATING OF TOOLS
Market survey was
carried out to assess requirement of coating services for cutting tools. Along
with this, survey was also carried out to get information on customers
satisfaction from the two coating companies who are already in coating
services. Namely Balzers India and Ionbond.
A list of 100
companies was prepared who preferred using coated tools than the uncoated
tools. Many companies were physically visited and discussions took place with
the buyer as well as the user of the tools in the company. where physical visit
was not possible, questionnaires were mailed to them and responses were taken.
RESULTS OF MARKET SURVEY
- After having discussions with the end
user of tools and machine operators, results were found that coated tools
were giving at least 50 % higher productivity than the uncoated
tools.
- At big companies like Bharat Heavy
Electrical Limited, Hindustan Aeronautic Limited, Sandvik Tata Motors,
Bajaj Auto, Bharat Forge, etc. only coated tools were used. If the tools
are uncoated, operators do not use them.
- Even in small scale industries, to
increase productivity of tools, maximum companies are using coated tools,
sub contractors and sub vendors are insisted to use coated tools for
precise operation.
- Survey indicates that currently there is
huge potential for coating of tools not only in Pune of Maharashtra but
industries all over India.
- In Pune region, there are around 1000
companies which use under of tools daily. Tools are either manufactured as
per their requirements and old tools are regrinded. Hrithik Tools already
has this both facilities. Later tools are sent for coating.
- Indian industry is transiting to world
class manufacturing, which means high productivity and quality on state of
art machinery. Last few years statistics show that there is a growth of 20
% in sale of CVC machines in India. More machinery will result in more use
of tools. On can see a significant growth in metal cutting tools and
coated tools. Therefore it is not difficult to obtain a coating business
of thousands of tools per months.
MARKET SURVEY BY HRITHIK TOOLS
HIGH POTENTIAL IN THE MARKET
[HAL] Hindustan Aeromatic Limited [Korraput]
There is a
requirement of 12500 Tools for manufacturing and resharpening with coating per
month
Bharat Heavy Electrical Limited [BHEL]
Hyderabad
Future expansion of
15 new CNC machine. Which will require per hour one tool.
Means per day 900
i.e. 22500 for resharpening or manufacturing with coating per month form one
unit. Likewise there are more 6 units of BHEL all over India.
Hrithik Tools is in
finalization stage to have tie up with BHEL and HAL.
RESULT OF MARKET SURVEY
Other Tools Manufacturing And Regrinding
Companies
Like Hrithik Tools,
there are many other companies who are in the business of tool manufacturing
and regrinding. These companies also have to get there tools coated. Presently
they get their tools coated form the other coating companies in Pune
List of Tools
Manufacturing and Regrinding Companies
- CARB TOOLS
- ACCU SHARP
- UTTAM TOOLS
- K C TOOLROOM
- OMEGA INDUSTRIES
- S BHANJAN
- RIGICUT
- SPIRAL TOOLS
- OM TOOLS
- UNQUIE TOOLING
- KIRLOSKAR CUMMINS
Considering that
Hrithik Tools have a tie up with the above companies for tools coating, they
can get at least 5000 tools per month from each company which is above 50000
tools per months.
Companies Who Are Manufacturing Dies and
Moulds
Dies and moulds also
need coating for higher productivity. In Pune itself there are above thousand
companies who manufacture dies and moulds. For coating dies and moulds there is
a higher profitability than in coating of tools. Although there is less
quantity as compared to cutting tools, due to higher profitability coating of
dies and mould is profitable business.
- SAVITRI AUTOMATION
- DIVGI WARNER
- ACME TOOLS
- ALPHA INDUSTRIES
- APEX DIES AND MOULDS
- INTEGRAL TOOLING
- FINE DIES AND MOULDS
- FORBES MARSHALL
- K C TOOLROOM
- OMKAR DIES
PRICING OF COATING OF TOOLS
During the survey,
when asked about the pricing for coating of tools, most companies responded
that they were unhappy with the prices which are being quoted by the present coating
companies. But they would be much happier if the prices come down by 10 to 15
%. But companies also mentioned that quality of coating should not be
compromised for price reduction.
NEED FOR COATING CENTRES
As per the market
survey, companies which were communicated implied that there are very less
coating centers in Pune. Due to huge work load these coating centre are not
able to deliver coated tools before 4 to 5 days. As mentioned above companies
are not happy with the price and delivery period. Therefore most of the
companies are in favor of more coating centers in Pune.
CONCLUSION
In conclusion, this
snapshot survey has clearly indicated a vacuum in the tool coating market,
which must be filled up urgently by a Tool coating certre [i.e. Hrithik Coating
Centre, Pune] which uses high quality equipments and coats and reasonable
price.
CURRENT PVD COATING CENTRES IN INDIA
Currently there are only major PVD coating
centre in India
- Oerlikon Balzers Coating India
- Ionbond Coating India
- Other Small Coating Centres
MARKET SHARE OF COATING IN INDIA
OERLIKON BALZERS COATING INDIA
Introduction of Oerlikon Balzer’s
Oerlikon Balzer, the Coating Services segment is supplier of coating processes for tools and precision components. Key customer segments are the automotive industry and its suppliers, the aircraft industry, the general engineering industry, tool manufacturers as well as the metalworking and plastics processing industries. Oerlikon Balzers Coating operates with 4 coating centers and employs around 300 people.
As per the financial data collected, overall turnover of Oerlikon Balzers India in the year 2005-06 was Rs. 400 Millions and in 2006-07 it reached to Rs. 600 Millions. There future turnover prediction for the year 2007-08 is a growth of 40 % compared to previous year. And due to high potential in the tool coating market they are confident to achieve it.
Introduction of Ionbond
Ionbond Coating Services segment is supplier of coating processes for tools and precision components. Key customer segments are the automotive industry and its suppliers, the aircraft industry, the general engineering industry, tool manufacturers as well as the metalworking and plastics processing industries. Ionbond Coating operates with 3 coating centers and employs around 200 people.
As per the financial data collected, overall turnover of Ionbond Coating India in the year 2005-06 was Rs. 200 Millions and in 2006-07 it reached to Rs. 400 Millions. There future turnover prediction for the year 2007-08 is a growth of 40 % compared to previous year. And due to high potential in the tool coating market they are confident to achieve it.
PRICES QUOTED IN THE
MARKET
DIFFERENCE IN PRICE
|
PRICES QUOTED BY BALZERS AND IONBOND
TO CUTTING TOOL COMPANIES |
PRICES QUOTED BY CUTTING TOOL
COMPANIES TO END CUSTOMERS |
|||||
|
DIA |
UP TO 80 mm |
UPTO 160 mm |
DIA |
UP TO 80 mm |
80 TO 130 mm |
130 TO 160 mm |
|
03 to 06 |
45 |
55 |
03 to 06 |
65 |
100 |
195 |
|
06 to 12 |
70 |
85 |
06 to 12 |
105 |
160 |
315 |
|
12 to 16 |
120 |
160 |
12 to 16 |
130 |
195 |
390 |
|
16 to 20 |
145 |
255 |
16 to 20 |
210 |
315 |
625 |
|
20 to 25 |
185 |
315 |
20 to 25 |
260 |
390 |
780 |
|
25 to 30 |
300 |
470 |
25 to 30 |
520 |
780 |
1570 |
As they had conducted survey, companies were very unhappy with high coating prices. Company’s really need competitive prices only 65 % of the tool users are actually getting their tool coated.
So subject’s motive is to give good quality coatings at competitive prices so that it should be convenient to the customers who are already coating their tools and as well as customers who are not coating there tools due to high prices in the market.
HAUZER TECHNO COATING
[HOLLAND]
Hauzer, a leading supplier of technology for PVD ( physical
vapour deposition) and PACVD ( Plasma assisted chemical vapour deposition)
since 1983 .More than sixty companies, many with multiple systems
Hauzer
PVD and PACVD technology add value to products by:
- Increased lifetime, higher productivity finishing (cutting and
forming tools)
- Reduced coefficient of friction and reduced wear (precision
components such as used in automotive engines)
- Specially engineered properties
Hauzer Competence
Center
- Surface engineering for customer
application
- Technology transfer to industrial scale
PVD/PACVD
- Supporting customer with qualification
and pilot runs
- Support customer with start up of full
production
Hauzer
provides processes and systems with the following deposition technologies:
- Patented Unbalanced Magnetron Sputter deposition (UBM) in closed
field configuration
- Arc deposition by Advanced Controlled Arc (ACA)
- Patented combination of sputtering and arc deposition in one system
- Plasma Assisted Chemical Vapour deposition (PACVD)
- RF Sputter deposition
HAUZER TECHNO COATING
Coatings for tools, tribological and
decorative applications
Hauzer offers turn key solutions including
pre treatment, QC, post treatment, layout design
Hauzer PVD coating
technology is used for deposition of a thin layer of hard coating on metal or
plastic parts.
Tools
Cutting and forming
tools, moulds and dies. Hard coating with high wear resistance, low friction
and non-sticking properties , increase life time and operational performance,
reduce down time the use of cooling lubricants. Typical coatings: TiN, TiCN,
AITiN, DLC, CrN
Turnkey Projects
Hauzer also supplies
turn key projects such as complete coating centre’s including training to
personnel. As excellent coating quality and colour reproducibility, short
cucle-times, high uptime and high loading capacity characterize the Houzer
PVD-coating systems. The design of the equipment also allows for the
implementation of new processes and other improvements in a later stage, after
some time of operation. Above mentioned characteristics lead to an excellent
price / performance ratio of the coated product. Hauzer Techno Coating’s total
commitment to the needs of its customers worldwide has been crucial to its
success. More than sixty companies. Many with multiple systems, enjoy the
benefit of this commitment, from process development up to customer service
support. Some global companies own their prominent market position to Hauzer
technology.
Quotation for Hauzer PVD Turn Key coating
system
Proposal for a Turn
Coating Centre, Covers :
- PVD
coating system : Rapid
Tool Coater RTC 850
- Peripheral
equipment, consisting
of :
Washing Machine : Ultrasonic, water based cleaning line,
chamber
Quality control system : consists of ball crater wear tester, stereo
microscope and digital camera with computer.
Stripping unit for the de-coating of AITiN coated tools : 3 tanks of 25
liters with heater and chemicals
Chiller unit to remove the heat from the PVD system
Tool finish system : allows debarring, edge rounding, polishing
and droplet removal [OTEC]
Consumables package : consisting of Ti, AITi and AICr targets,
chemicals for cleaning line. The contents should last 100 batches.
Spares package : recommended spares for PVD system, washing
machine
- Training,
support and warranty
Training of
operators at their competence centre, installation and commissioning, first two
year free process support, two year full warranty.
PVD COATING PLANT
Estimated cost of project
The proposed project
is for an authorized coating centre for cutting tools which is a very high
technology process. The coating plant includes the main coating machine which
estimated cost is Rs. 30 Millions. It equals to around 50 % of the total
project cost.
Along with the main
coating machine, there are various other process line machines as mentioned
previously which costs around Rs. 10 million. There are consumable and spares
package for the coating plant coating around Rs. 2.500 Millions.
All the machines and
consumables have to be imported from Europe by ship. As Hrithik Tools Private
Limited is not an export oriented company, it will have to pay customs and
import duty on all the machines. The duty cost will be around Rs. 16.000
Millions. CIF cost for Mumbai port is estimated at Rs. 1.000 Millions.
Cost of
transportation of machines from Mumbai port to Pune premises is estimated at
Rs. 0.100 Million. Octroi charges of P.C.M.C. are 2.5 % on the machine cost.
The estimated octroi cost is Rs. 1.000 Million.
Hrithik Tools is
already set up in a spacious owned building in MIDC Bhosari on a land measuring
22000 sq. ft. Therefore there is no investment in land. Separate building will
have to be constructed for coating plant. Requirement of building area is 3500
sq. ft. Estimated construction cost is Rs. 1000 per sq. ft. equals to Rs. 3.500
millions. Office furniture cost is estimated at Rs. 1.500 Millions.
Coating machine
requires UPS and transformer costing Rs. 1.500 Millions. Generator Bank up is
required for the coating plant estimated cost Rs. 1.200 Millions. Tools and
fixtures will have to be purchased at an cost of Rs. 0.300 Million. Power load
required will be 135 kvA. Cost of electrical installations is estimated at Rs.
1.000 Million, including MSEB deposit and connection charges.
MEANS OF FINANCE
The company is
expecting Bank finance of 75 L% of the total project cost.
Remaining 25 %
investment will be contributed by the current directors Mr. Suresh Mittal and
Mrs. Rani Mittal and by the new directors Mr. Anand Ishwarchand Mittal, Ms.
Anjali Suresh Mittal and Mrs. Leena Sham Jurasinghani.
Coating plant
manufacturers are giving a prolonged payment schedule as they are selling their
first PVD coating plant in India.
The payment terms
are as follows :
Down payment : 30 %
of system price, by TT
60 % of system
price, on shipment by LC
10 % of system
price, after installation by LC
The company is
expecting bank finance at lowest possible rate of interest.
The new directors
will be investing Rs. 4.000 Millions as share capital
Following amounts
will be treated as loan receivables from the new directors.
Mr. Anand I. Mittal
Rs. 3.500 Millions
Ms. Anjali S. Mittal
Rs. 2.500 Millions
Mrs. Leena S.
Jurasinghani Rs. 7.500 Millions
Interest will be
paid @ 12 % p.a. to the directors on the above loan receivables.
PROPOSED INSTALLED CAPACITY
The coating plant is
capable of running at least 2 shifts, as they can acquire loan of minimum two
shifts, so they can take a very confident approach of running two shift fro the
detailed working.
The installed
capacity shown is illustrative based on an average tool size of dia 10 mm. with
length up to 10 mm. and the same stands at Rs. 57.600 millions per year. The
capacity utilization is also estimated on a very conservative basis at 50 % in
the first year with 10 % increase every year, up to 90 % in the fifth year and
100 % in the sixth and seventh year.
Note : Market demand
for tool coating is very huge as mentioned earlier in the project and is proved
by the market study conducted. Hrithik Tools is confident to achieve break even
in the first year itself. However for the purpose of estimation the revenues
are estimated on a very conservative basis.
CAPACITY UTILIZATION
The capacity
utilization is estimated on a very conservative basis with the gradual
increment from 50 % to 90 % from 1st year to 5th year and
100 % in the sixth ad seventh year.
PRICES QUOTED FOR TOOL COATING
As mentioned above,
the market price for tool coating varies on the size of the tool. The prices
quoted the present coating companies are very high. Prices also vary customer
to customer. Small scale industries are quoted very high prices whereas in case
of large and big companies where there are tie up with rat contracts and
assurance of minimum tool loan, discounts up to 20 % are given. But still
prices are on a higher side. However on a conservative basis, they have
estimated Rs. 150 as prices for dia 10 mm tool with length up to 100 mm.
|
PRICES QUOTED BY BALZERS AND IONBOND
TO CUTTING TOOL COMPANIES |
PRICES QUOTED BY CUTTING TOOL
COMPANIES TO END CUSTOMERS |
|||||
|
03 to 06 |
45 |
55 |
03 to 06 |
65 |
100 |
195 |
|
06 to 12 |
70 |
85 |
06 to 12 |
105 |
160 |
315 |
|
12 to 16 |
120 |
160 |
12 to 16 |
130 |
195 |
390 |
|
16 to 20 |
145 |
255 |
16 to 20 |
210 |
315 |
625 |
|
20 to 25 |
185 |
315 |
20 to 25 |
260 |
390 |
780 |
|
25 to 30 |
300 |
470 |
25 to 30 |
520 |
780 |
1570 |
OPERATING COST AND ADMINISTRATION COST
Both the coating
plant manufacturers have provided the calculations for running cost for coating
a tool. Running cost sheet are already attached earlier
- Hauzer RTC 850 : running cost per tool
is 0.60 euro = Rs. 33
Above cost for
coating a tool is considered when they work for only one shift. The cost will
further reduce it two or there shifts are running.
- Cost per tool includes all expenses
except administrative and marketing expenses.
- cost per tool is divided in the
following parts :
- Running Cost [Fixed Assets] : this cost
includes depreciation on plant and machinery, salary to machine operator
and helpers on coating machine, maintenance cost which is estimated at 2
% of the investment cost yearly.
- Variable Cost : the cost includes
consumables like targets used for coating, chemicals used for coating and
cleaning of tools, gases used for coating tools and fixtures cost, power
consumption cost.
|
OPERATING COST CALCULATIONS |
|
|
|
|
|
Particulars |
Amount [in Rs.] |
|
Cost for coating
per tool |
33 |
|
No. of tools per
batch cycle |
640 |
|
Total cost per
batch cycle |
21120 |
|
No. of batch
cycles in a day |
3 |
|
Total operating
cost per day |
63360 |
|
Working days in a
year [days] |
300 |
|
Total operating
cost per year |
19008000 |
|
|
|
|
i.e. |
Rs. 19.000 Millions |
OPERATING COST DETAILS
For coating of tools
there is no requirement of raw material as there is no manufacturing process.
There are various types of consumable which are required for coating of tools.
Chemicals for cleaning unit :
Before coating, the
tools are washed in an ultrasonic cleaning unit, which requires various
chemicals. These chemicals will be provided by the machine manufacturers on a
monthly basis.
The cost of chemical
plus the cost of cooling water is 21 euro per batch = Rs. 1155 per batch.
Annual cost will be Rs. 0.693 Million
Targets for coating :
Coating is done by
targets which are fitted inside the machinery. There are 3 targets of Ti
[Titanium] material and 12 targets of AITi [Aluminium Titanium] material.
Cost of 1 Ti target
= 40 euro = Rs. 2200/- [lasts for 50 batches]
Cost of 1 AITi target
= 150 euro = Rs. 8250/- [lasts for 12 batches]
As per calculations
Target Cost per Batch = 115 euro = Rs. 6325 per batch. Annual cost will be Rs.
3.795 millions
Power Cost
As per running cost
sheet power cost is estimated at 10 euro batch = Rs. 550 per batch. Annual cost
is Rs. 0.330 Million
Fixturing cost
Estimated at 16 euro
per batch = Rs. 880 per batch. Annual cost will be Rs. 0.528 Million
Labour cost
Coating of tools
requires one machine operator and one helper in a batch. Operator’s salary is
estimated at Rs. 10000 per month and helper salary is estimated at Rs. 4000 per
month.
Labour cost per
batch comes to 26 euro i.e. Rs. 1430 per batch. Annual cost will be Rs. 0.858
million
Gas cost
Three types of gases
equal to 11 euro per batch = Rs. 605. annual cost is Rs. 0.363 Million
ADMINISTRATIVE EXPENSES
Payment to employees statement
Coating of tools is
very high technology process. The process itself includes many sub process like
cleaning of the tools, pre and post treatment, inspection, etc. to handle this
whole process, they require a very skilled and qualified team of people.
To start with, they
need a Senior Engineer who knows the minutes details of coating. For this they
have already appointed Mr. Rajesh Bhide who has a work experience of 12 years
in the field of tool coating. After that they require Quality Control Engineer
who will handle the quality of coating of tool. Two engineers will be appointed
to handle the inward and outward of materials. Operators and helpers for
coating machine are included in the tool running cost. But apart form company
they require four more operators to handle the cleaning unit and one for pre
and post treatment.
Then they require a
very strong marketing team. Marketing will take place at national level in
major cities, where there is demand for cutting tools. They require a Senior
marketing Executive who will handle the regional sales representative team of
at least 8 people.
Also, they require
Accountants to handle the financial matters of the company. One Senior Account
Manager and two Assistant Accountant.
The total strength
for a coating plant will be of 20 personnel. The total cost of payment to
employees in the first year will be Rs. 4.000 Million and the same will be
increased at 10 % per year. Apart form the payment, the entire team will be
entitled to commission of 1 % of total sales per year.
The team of people
to be appointed will also grow in case they run more than one shift. But for
now they will consider the figures given on the next page for further
calculations.
The coating plant
manufacturer has agreed to train two technical engineers at their manufacturing
plant for a period of two months.
Payment to Directors
Current directors
are withdrawing salary of Rs. 0.360 Million p.a. each. Upcoming Directors
Salary is decided as follows :
Mr. Anand I. Mittal
Rs. 0.360 Million p.a.
Ms. Anjali S. Mittal
Rs. 0.180 Million p.a.
Mrs. Leena S.
Jurasinghani Rs. 0.360 Million p.a.
Depreciation
As per Income Tax
Act amended up to date.
Bank Interest
The term loan is
expected at 12 % p.a. on their investment, i.e. 12 % on 13.500 millions = 1.620
millions p.a.
Taxation
As per Income Tax @
30 % on Taxable Income
Projected Balance Sheet
Projected balance
sheet is prepared after considering the cash flow for the respective years.
Working Capital Norms
Basic of working
Stock of consumables 30 days
Work in process 7
days
Stock of finished
goods 0
days
Sundry debtors 30
days
Other manufacturing 30
days
Trade credit on
materials 30
days
Margin money raw
materials and F.G. 25 %
Margin money work in
process 25 %
Margin money sundry
debtors 25 %
Margin money other
manufacturing expenses 100 %
Rate of interest on
working capital 13 %
Project Viability Nutshell
The appended
financial statements are only supplementary to establish the economic viability
of the project PVD Coating Plant which will be techno economically viable
project.
PROJECT AT A GLANCE
Rs in millions
|
PARTICULARS |
YEARS
|
||||||||
|
|
06-07 |
07-08 |
08-09 |
09-10 |
10-11 |
11-12 |
12-13 |
13-14 |
14-15 |
|
|
|
|
|
|
|
|
|
|
|
|
Current Ratio |
0.227 |
0.302 |
0.581 |
0.620 |
0.605 |
0.597 |
0.603 |
0.659 |
0.640 |
|
Debt Equity
Ratio |
0.145 |
-- |
0.179 |
0.138 |
0.105 |
0.072 |
0.041 |
0.017 |
0.000 |
|
Debt service Ratio
|
-- |
-- |
0.330 |
0.155 |
0.184 |
0.217 |
0.258 |
0.307 |
0.338 |
|
Break Even Sales [For new project] |
-- |
-- |
33.515 |
31.614 |
30.169 |
29.092 |
28.337 |
27.885 |
27.454 |
|
Rated Capacity [For new project] |
-- |
-- |
57.600 |
57.600 |
57.600 |
57.600 |
57.600 |
57.600 |
57.600 |
|
Break Even Sales
% to rated Capacity [For new project] |
-- |
-- |
5.819 |
5.489 |
5.238 |
5.051 |
4.920 |
4.841 |
4.766 |
|
Capacity
Utilization % [For new project] |
-- |
-- |
5.000 |
6.000 |
7.000 |
8.000 |
9.000 |
10.000 |
10.000 |
|
Net Sales |
23.100 |
27.700 |
28.800 |
34.560 |
40.320 |
46.080 |
51.840 |
57.600 |
57.600 |
|
Total Net Sales |
23.100 |
27.700 |
59.300 |
68.060 |
77.220 |
86.680 |
96.440 |
106.700 |
111.600 |
|
Total Cash Surplus
Net |
6.700 |
8.727 |
11.977 |
14.222 |
15.776 |
19.069 |
21.325 |
26.452 |
28.193 |
|
Total Gross Profit
|
14.300 |
6.673 |
16.553 |
23.346 |
29.988 |
36.464 |
42.796 |
49.102 |
50.852 |
|
% Gross Profit to
Net Sales |
6.190 |
2.409 |
2.791 |
3.430 |
3.883 |
4.207 |
4.438 |
4.602 |
4.557 |
|
Net Profit Before
Tax |
1.570 |
4.896 |
4.896 |
11.280 |
18.712 |
25.750 |
32.837 |
39.748 |
42.246 |
|
% Net Profit to
Net Sales |
0.680 |
1.520 |
0.826 |
1.658 |
2.423 |
2.971 |
3.405 |
3.725 |
3.785 |
|
% Raw Material [Average]
to Net Sales [For new project] |
-- |
-- |
2.200 |
2.200 |
2.200 |
2.200 |
2.200 |
2.200 |
2.200 |
|
Cost of New
project |
|
|
70.000 |
|
|
|
|
|
|
|
Term Loan
Requested |
|
|
56.000 |
|
|
|
|
|
|
|
Term Loan
Repayment |
|
|
0 |
9.333 |
9.333 |
9.333 |
9.333 |
9.333 |
9.333 |
|
Working Capital
Requirement From Bank |
|
|
|
7.000 |
8.000 |
9.000 |
9.000 |
10.000 |
10.000 |
ESTIMATED TURNOVER FOR EXISTING UNIT
|
ESTIMATED
TURNOVER |
[EXISTING
UNIT ] |
|
|
|
|
Years |
Rs.
In Millions |
|
2006-2007 |
23.100 |
|
2007-2008 |
27.700 |
|
2008-2009 |
30.500 |
|
2009-2010 |
33.500 |
|
2010-2011 |
36.900 |
|
2011-2012 |
40.600 |
|
2012-2013 |
44.600 |
|
2013-2014 |
49.100 |
|
2014-2015 |
54.000 |
ESTIMATED TURNOVER FOR PROPOSED UNIT
|
ESTIMATION
FOR ANNUAL TURNOVER |
||
|
Particulars |
Nos. |
Unit |
|
No. of tools
coated in one batch cycle |
640 |
Tools |
|
Estimated batch
time |
240 |
Mins. |
|
No. of batch
cycles in one shift |
2 |
|
|
One shift = 480
mins. |
|
|
|
No. of tools
coated in one shift |
1280 |
Tools |
|
No. of working
days in one year |
300 |
Days |
|
No. of tools
coated in one year |
384000 |
Tools |
|
Price quoted for
one tool [dia 10 mm.] |
150 |
Rs. |
|
Estimated turnover
per year |
Rs. 57.600 Millions |
Rs. |
OFFICE AND OTHER ADMINISTRATIVE
EXPENSES
[Existing and Proposed]
|
PARTICULARS |
YEARS
|
||||||||
|
|
06-07 |
07-08 |
08-09 |
09-10 |
10-11 |
11-12 |
12-13 |
13-14 |
14-15 |
|
|
|
|
|
|
|
|
|
|
|
|
Printing and
Stationery |
0.092 |
0.112 |
0.120 |
0.132 |
0.145 |
0.159 |
0.175 |
0.193 |
0.212 |
|
Professional Fees |
0.080 |
0.120 |
0.180 |
0.198 |
0.217 |
0.239 |
0.263 |
0.289 |
0.318 |
|
Office Expenses |
0.376 |
0.396 |
0.144 |
0.158 |
0.174 |
0.191 |
0.210 |
0.231 |
0.255 |
|
Traveling |
0.263 |
0.300 |
0.360 |
0.396 |
0.435 |
0.479 |
0.527 |
0.579 |
0.637 |
|
Postage and Telephone
|
0.144 |
0.168 |
0.180 |
0.198 |
0.217 |
0.239 |
0.263 |
0.289 |
0.318 |
|
Conveyance |
0.111 |
0.180 |
0.240 |
0.264 |
0.290 |
0.319 |
0.351 |
0.386 |
0.425 |
|
Audit Fees, etc. |
0.025 |
0.084 |
0.180 |
0.198 |
0.217 |
0.239 |
0.263 |
0.289 |
0.318 |
|
Advertisement |
0.044 |
0.060 |
0.480 |
0.528 |
0.580 |
0.638 |
0.702 |
0.773 |
0.850 |
|
Other Expense |
0.084 |
0.096 |
0.120 |
0.132 |
0.145 |
0.159 |
0.175 |
0.193 |
0.212 |
|
Total Expenses p.a.
|
1.219 |
1.516 |
2.004 |
2.204 |
2.424 |
2.667 |
2.934 |
3.227 |
3.550 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses in Rs. Millions |
1.219 |
1.516 |
2.004 |
2.204 |
2.424 |
2.667 |
2.934 |
3.227 |
3.550 |
REPAYMENT AND INTEREST SCHEDULE
|
EXISTING
UNIT TERM LOAN STATUS |
|
|
|
Rs in Millions |
|
HDFC Term Loan A/c No. 2405727 |
2.300 |
|
HDFC Term Loan A/c No. 2405731 |
1.200 |
|
[Approx. Balance on 30.09.2007] |
|
|
Total Balance |
3.500 |
|
Bank Finance for New Project |
52.500 |
|
Total Bank Finance |
56.000 |
|
Moratorium Period |
12 Months |
|
Repayment Period |
7 Years |
|
No. of Monthly Instalments |
72 Months |
|
Installment Per Annum Rs. |
93.33 |
Nature of Business
Resharpening,
Manufacturing and Recoating of Solid Carbide, Brazed Carbide, Lugged Carbide
and H. S. S. tools
Resharpening and Manufacturing
of Solid Carbide tools is done in – house on a 5 axes CNC Tool and Cutter
grinding machine.
Recoaring is
arranged from Balzers, Pune and MultiArc, Pune.
List of Machinery
|
MAKE |
RANGE |
SPECIAL FEATURES |
|
Widma Ecogrind X5 5 axes CNC Tool
and Cutter Grinding M/c 2 Nos. |
Tools from 3 – 160 mm Ř and length up to 270
mm max. |
Excellent repeatability Grinding S/C Rod and
make Blank for Drills, Reamers, End Mills |
|
Toolgrinding technology 6 Axis Cutter
grinding M/C 1 Nos. |
||
|
Cylendrical Grinder [Landies / MICR Omatic] |
2 |
|
EQUIPMENT |
RANGE |
SPECIAL FEATURES |
|
Profile Projector [Metrology Equipments,
Bangalore Make] |
Screen Ř 500 mm Magnification 10, 20 and 50 |
|
|
Granite Surface Plate [GMT make] |
‘00’ Grade 800 X 500 Size |
|
|
Dial Gauge Indicators [Mitutoyo make] |
0.002 mm LC |
|
|
Micrometers Venier Calipers [Mitutoyo make] |
0.01
mm LC 0.02
0.010 mm LC |
|
|
Height Varnier [Aditya make] |
12” |
|
|
Magnifying Glass [Lensel Optics make] |
Round with 5 X magnification |
|
|
Cylindrical grinding M/C |
Landis |
|
Present Banking Relationship [From HDFC Bank]
|
Nature of Credit facility |
Sanctioned Loan Amount |
Outstanding Balance [29.02.2008] |
EMI |
|
Term Loan A/c 2405731 |
Rs. 2.700 Millions |
Rs. 0.691 Million |
Rs. 0.099 Million |
|
Term Loan A/c 2405727 |
Rs. 3.700 Millions |
Rs. 1.772 Millions |
Rs. 0.100 million |
|
C/C A/c |
Rs. 2.000 Millions |
[Rs. 1.633 Millions] |
------------------------ |
Insurance Details
|
Units Assets Covered |
Policy No./ Cover Note |
Validity |
Sum Assured |
Risk Covered |
|
Land and Building, Plant and Machinery, Furniture and Fittings, Stocks |
OG-08-2001-4001-00006908 |
12.10.2007-11.10.2008 |
Rs. 43.000 Millions |
Standard Fire and Special perils and add on.
|
Financial Analysis
|
Last available financial statement [Year
ended dd/mm/yy] |
Financial Year Ended on 31.03.2007 |
|
Recent summary financials [up to a period not
more than two months old] |
Recent Summary up to 29.02.2008 |
|
Advance Taxes Paid |
Rs. 0.050 Million dt. 12.06.2007 ch no.
133132 Rs. 0.050 Million dt. 16.10.2007 ch no
143295 Rs. 0.050 Million dt. 11.12.2007 ch no
148732 |
|
Change in borrowings [From 31.03.2007 to
29.02.2008] |
As on 31.03.2007 Rs. 8.257 Millions As on 29.02.2008 Rs. 2.462 Millions |
|
Debtors Position [At last month end
29.02.2008 specify amount > 90 days] |
Total Rs. 11.180 Millions Amount < than 90 days Rs. 8.812 Millions Amount > than 90 days Rs. 2.368 Millions |
|
Creditors Position [at last month end
29.02.2008 specify all suppliers not paid for more than 90 days] |
Rs. 0.425 Million All creditors are paid within 90 days |
|
Stock position [at last month end] |
Stock value on 29.02.2008 Rs. 3.476 Millions |
|
Drawing Power |
Rs. 2.000 Millions |
|
Any other material development |
New project PVD Coating Plant |
|
Whether the critical ratios conforms to the
bench mark stipulation. |
|
Review of Bank Statements for the last Six Months
|
Number of Creditors / Debits, month wise August 07 September 07 October 07 November 07 December 07 January 07 |
|
||||||||||||||
|
Month wise Credits into the Account August 07 September 07 October 07 November 07 December 07 January 07 |
Rs. 2.346 Millions Rs. 1.349 Millions Rs. 2.738 Millions Rs. 2.007 Millions Rs. 2.114 Millions Rs. 5.363 Millions |
||||||||||||||
|
Cheques Bounces |
Nil |
||||||||||||||
|
Evidence of servicing existing debt
obligations |
Yes monthly EMI’s |
||||||||||||||
|
Line Utilisation – any evidence of perennial
overdrawing |
No |
||||||||||||||
|
Evidence of statutory dues being paid on
time |
Yes |
||||||||||||||
|
PF and employee related |
Salaries of the employees are transferred to
their respective accounts from bank account.
|
||||||||||||||
|
Municipal and Corporation taxes |
Municipal and corporation taxes not
applicable as factory is in MIDC |
||||||||||||||
|
Last utility payment made [Electricity] |
Rs. 0.032 Million paid to MSEDCL thru ch.
No. 0154851 dt. 17.01 |
For Manufacturing Entities / Factory Site [S] :
|
Location of Plot, accessibility, proximity
to other units |
Factory site in the industrial hub of MIDC Pune
where big companies like Tata Motors, Bajaj Auto, Thermax, Sandvik, etc are
having their companies. Easily Accessible from the twin cities of Pune and
Pimpri – Chinchwad. |
|
Principal raw materials [s] and sources |
Raw Materials availability is in abundance.
For manufacturing of solid carbide cutting tools, they require solid carbide
bars which are available in plenty from various resources in and around their
location |
|
Manufacturing Process |
The bars are first grinded on cylindrical
grinding machine and then manufactured as per drawing on CNC grinding
machines |
|
Major branded and imported machines
installed |
3 CNC grinding machines are installed, 2 Nos
of Widia, Kennametal and 1 No. of TGT Bangalore, 2 nos. of cylindrical grinding
machines of Landis and Micrometric each. Several various other conventional
machineries installed. |
|
Pollution Control : any pollutants being
generated and their disposal |
Pollution Under control certificates
received form Maharashtra Pollution Control Board. No. Major pollutants are
being generated. |
|
Power : connected load and back up
availability |
Current Connected Load of 30 HP, Additional
100 HP Loan applied for, Diesel Gensets of 250 KWA ordered for Back up |
|
Inventory / WIP / Finished Goods at the site
|
Tools coming for resharpening are processed
are returned back in 2 working days, Inventory only for Kennametal Products
and bars for manufacturing of tools.
|
|
Storage / Security / Perish ability / Susceptibility
to fire and weather |
Goods are stored in proper just in just out
policy in stores and is handled by skilled stores people. No perishable
goods. Stores and inventory is secured.
|
|
Quality Certification |
ISO 9001-2000 Certified Company |
|
Workers / Split of temporary and permanent /
any unions |
All workers are on permanent basis. No
unions. |
|
History of any strikes / any child labour /
working conditions |
No strikes in the factory, No child labour. Good
Working Conditions maintained for best output from workers. |
Other Particulars
|
Months [During
the current year] |
Purchased [Amount in
Millions] |
Sales [Amount in
Millions] |
|
April 07 |
0.792 |
2.305 |
|
May 07 |
0.968 |
2.740 |
|
June 07 |
1.491 |
2.835 |
|
July 07 |
1.421 |
3.567 |
|
August 07 |
0.859 |
2.281 |
|
September 07 |
1.241 |
2.547 |
|
October 07 |
0.817 |
2.396 |
|
November 07 |
1.005 |
1.765 |
|
December 07 |
1.276 |
2.727 |
|
January 08 |
1.275 |
2.681 |
|
February 08 |
1.092 |
2.782 |
Statement of assets and liabilities
|
Name |
Mr. Suresh Laxminarayan Mittal |
||||
|
Son of : |
Mr. Laxminarayan M. Mittal |
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|
Address [Residence] : |
55/11, Kakade Paradise, Ashok Path, Law
College Road, Pune – 411004 |
||||
|
[Office] |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra |
||||
|
Occupation |
Business |
||||
|
Annual Income |
|
||||
|
|
|
||||
|
Name |
Mrs. Ranidevi Suresh Mittal |
||||
|
Wife of : |
Mr. Suresh Laxminarayan Mittal |
||||
|
Address [Residence] : |
55/11, Kakade Paradise, Ashok Path, Law
College Road, Pune – 411004 |
||||
|
[Office] |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra |
||||
|
Occupation |
Business |
||||
|
Annual Income |
|
||||
|
|
|
||||
|
Name |
Ms. Anjali Suresh Mittal |
||||
|
Daughter of : |
Mr. Suresh Laxminarayan Mittal |
||||
|
Address [Residence] : |
55/11, Kakade Paradise, Ashok Path, Law
College Road, Pune – 411004 |
||||
|
[Office] |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra |
||||
|
Occupation |
Services |
||||
|
Annual Income |
|
||||
|
|
|
||||
|
Name |
Mr. Anand I. Mittal |
||||
|
Son of : |
Mr. Ishwarchand L Mittal |
||||
|
Address [Residence] : |
A/6 701, Ganga Satellite, Wanowrie, Pune -
411040 |
||||
|
[Office] |
EL 37/4 'J' Block, M.I.D.C Bhsari, Pune - 411026,
Maharashtra |
||||
|
Occupation |
Business |
||||
|
Annual Income |
|
||||
|
|
|
||||
|
Name |
Mrs. Leena S. Juriasinghani |
||||
|
Wife of : |
Mr. Sham Juriasinghani |
||||
|
Address [Residence] : |
Flat No. E-601, 10 Kasturkunj, S. No. 132B, ICS
Colony, off University Road, Shivajinagar, Pune – 411007 |
||||
|
Occupation |
Others |
||||
|
Annual Income |
|
FIXED ASSETS
- Land
- Building
- Machinery
- Furniture
- Electrical Equipments
- Tools and Fixtures
- Air Conditioners
- Computer
- Electrical Fittings
- Motor Vehicles
- Telephone Equipment
- Motor Car
- Hero Honda
- Honda Activa
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.40.44 |
|
UK Pound |
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.62.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
YES |
|
--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. |
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 |
|