MIRA
INFORM REPORT
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Report Date : |
17.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NUTAN ENGINEERING |
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Registered Office : |
284/12, Kakade Angan, Flat A/10, Opposite Talera Hospital,
Chinchwadgaon, Pune – 411033, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 [Provisional] |
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Year of Incorporation : |
2001 |
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PAN No.: [Permanent
Account No.] |
ABKPP7070N |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturing of Heavy and Light Fabrication Structure Chimney Tank
etc., C.M.S. and S.S. Boilar Accessories, All types of Heavy and Light
Machining Works for Fabrication |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern having satisfactory
track. Trade relations are fair. Business is active. General financial
position is satisfactory. 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. K B Patil |
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Designation : |
Proprietor |
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Contact No.: |
91-9422328276 |
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Date : |
18.04.2008 |
LOCATIONS
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Registered Office : |
284/12, Kakade Angan, Flat A/10, Opposite Talera Hospital,
Chinchwadgaon, Pune – 411033, Maharashtra, India |
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Tel. No.: |
91-20-32540554 / 27612065 |
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Mobile No.: |
91-9422328276 |
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Fax No.: |
91-20-32540554 / 27691451 |
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E-Mail : |
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Factory : |
Gat No. 69, Sonawane Wasti, Jyotibanagar, Talawade, Pune – 412114,
Maharashtra, India |
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Tel. No.: |
91-22-27612065 |
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Mobile No.: |
91-9422328276 |
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Area : |
8500 sq. ft. [Rented] |
SOLE PROPRIETOR
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Name : |
Mr. Kumar Balagonda Patel |
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Designation : |
Proprietor |
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Address : |
284/12, Kakade Angan, Flat A/10, Opposite Talera Hospital,
Chinchwadgaon, Pune – 411033, Maharashtra, India |
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Date of Birth/Age : |
10.06.1963 [45 Years] |
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Qualification : |
DME [1982] |
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Experience : |
24 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Heavy and Light Fabrication Structure Chimney Tank
etc., C.M.S. and S.S. Boilar Accessories, All types of Heavy and Light
Machining Works for Fabrication |
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Products : |
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Terms : |
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Selling : |
Credit [30 days] |
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Purchasing : |
Credit [30 days] |
GENERAL
INFORMATION
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Customers : |
End Users |
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No. of Employees : |
15 [In Office : 2 and In Factory : 13] |
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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 : |
Shreeni and Shreeny Chartered Accountants |
CAPITAL STRUCTURE
As on 31.12.2007 [Provisional]
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Capital Investment : |
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Owned : |
Rs. 1.379 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 1.379 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
|
31.12.2007 [Provisional] |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Proprietor’s Capital |
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1.379 |
0.798 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1.379 |
0.798 |
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LOAN FUNDS |
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1] Secured Loans |
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1.715 |
1.176 |
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2] Bank OCC a/c |
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0.000 |
0.851 |
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3] Unsecured Loans |
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0.497 |
0.212 |
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TOTAL BORROWING |
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2.212 |
2.239 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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3.591 |
3.037 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.224 |
1.713 |
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Capital work-in-progress |
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0.000 |
0.000 |
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DEPOSITS |
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0.083 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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2.151 |
0.489 |
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Sundry Debtors |
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1.008 |
1.356 |
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Cash & Bank Balances |
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0.079 |
0.074 |
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Other Current Assets |
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0.007 |
0.176 |
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Loans & Advances |
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0.268 |
0.018 |
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Total
Current Assets |
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3.513 |
2.113 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.229 |
0.609 |
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Provisions |
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0.000 |
0.180 |
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Total
Current Liabilities |
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1.229 |
0.789 |
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Net Current Assets |
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2.284 |
1.324 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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3.591 |
3.037 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.12.2007 [Provisional] |
31.03.2007 |
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Sales Turnover |
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9.152 |
4.758 |
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Profit/(Loss) Before Tax |
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0.812 |
0.361 |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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0.812 |
0.361 |
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Total Expenditures |
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8.340 |
4.397 |
KEY RATIOS
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PARTICULARS |
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31.12.2007 [Provisional] |
31.03.2007 |
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PAT / Total Income |
(%) |
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8.87 |
7.59 |
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Net Profit Margin (PBT/Sales) |
(%) |
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8.87 |
7.59 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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17.14 |
9.44 |
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Return on Investment (ROI) (PBT/Networth) |
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0.59 |
0.45 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.50 |
3.79 |
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Current Ratio (Current Asset/Current Liability) |
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2.86 |
2.68 |
LOCAL AGENCY
FURTHER INFORMATION
Trade Reference
Mr. N. R. Navketan – Project Manager – Thermax Limited
Mobile No.: 91-9860013587
Mr. N S Ingale – Director Sourabh Engineering
Mobile No. : 9860795702
Accounting Ratio
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Gross Profit / Turnover |
1421632 4758126 |
X 100 = 29.88 % |
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Net Profit / Turnover |
360900 4758126 |
X 100 = 29.88 % |
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Stock in Trade / Turnover |
488550 4758126 |
X 100 = 29.88 % |
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Material Consumer / Finished Goods Produced |
375500 + 2388083 – 488550 4758126 |
X 100 = 29.88 % |
Fixed Assets
- Furniture and Fixture
- Mobiles
- Motor Cycle
- Motor Car
- Plant and Machinery
- Computers
- Vehicles
PROJECT PROFILE
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General Information |
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Name of the applicant |
Nutan Engineering |
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Constitution |
Proprietorship Concern |
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Sector |
IIS Unit [SSI Registration No. 111957988
dated 10.02.2006 issued by DIC, Pune] |
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Nature of Activity |
Manufacture of M S /Steel Piping, LS heavy
Fabrication, Pressure Vessel, Tanks and Heat Exchangers etc, as per
customer’s design. |
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Present Proposal |
The Unit has requested for following credit
limits for future growth of their business. |
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[A] |
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Nature of facility |
Term Loan |
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Amount required |
Rs. 1.100 Millions |
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Margin |
25 % |
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Purpose |
Rs. 0.600 Million towards purchase
Machineries as per the list enclosed and Rs. 0.500 Million for takeover of
existing term loan with UBI. |
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Security proposed |
Hypothecation of machineries to purchased
costing Rs. 0.800 Million and also existing machineries. |
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Repayment |
The loan is proposed to repaid over a period
in Equal Monthly Installments of Rs. 0.031 Million over a period of next four
years, till the closure of the loan in full. Interest to be serviced separately.
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[B] |
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Nature of facility |
Working capital limit [Cash Credit] |
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Amount required |
Rs. 2.000 Millions |
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Margin |
25 % |
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Purpose |
To meet working capital requirements. |
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Security proposed |
Hypothecation of stocks and book debts. |
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Collateral security |
Mortgage of Flat located at Plot No. 284/12,
Kakade Angan, A / 10, opposite Talera Hospital, Chinchwad, Pune, Having
market value of about Rs. 1.969 Millions |
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Current Ratio :
1.41:1 Debt Equity Ratio :
1.39:1 DSCR [Average] :
3.24:1 |
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BRIEF HISTORY AND MANAGEMENT
This a SSU unit promoted by Mr. Kumar Patil in
the year 2001, for the manufacture of MS Steel Piping, MS Heavy fabrication,
IBR pressure vessels, tanks and Heat exchangers etc as per customer’s
requirement.
Mr. Kumar Patil is a Diploma holder in
Mechanical Engineering having immense practical knowledge in production
processes of engineering components and fabrication. He belongs to Kolhapur
region having passed his DME in the year 1982, from Kolhapur Polytechnic. He
gained initial experience in Plant layout an Industrial Engineering /
processes, while working at Ganesh Engineering Works, Kolhapu. Thereafter he
shifted to Pune and started working with Deccan Mech and Chem Industries
Private Limited upto 1991. While working here he gained overall experience in
production as well as commercial departments of an Engineering industry.
Thereafter he joined Thermax Limited, Pune in the year 1991 and gained rich
experience in Boiler manufacturing, Heavy Fabrication and Project / planning
activities etc. He handled projects execution at both domestic / planning
activities etc. he handled projects execution at both domestic as well overseas
assignments. He started his own business under the name Nutan Engineering at
Talawade, in the year 2001. From the beginning he has been receiving very good
support from Thermax Limited and executing their jobs on regular basis.
The unit is engaged in the manufacture of
Pressure vessels, Heavy fabrication, Tanks, Heat exchangers etc. the unit is
mainly dealing with Thermax Limited, Thermax Engineering and Construction
Company, Pidilite Industries Limited, technocraft Industries Limited, Murbad,
Automech Handlers, Parag Milk etc. The unit has been able to achieve a gross
sales turnover of Rs. 4.758 Millions for the previous financial year 06-07.
During the current FY the unit has achieved a sales turnover of Rs. 9.152
Millions from April to December 2007.
The unit is presently functioning from factory
shed at Gat No. 69, Jyotibanagar, Pune, taken on lease for a period of 33
months, having all the infrastructural facilities.
With a view to expand the production capacity,
the party is now proposing toe purchase certain machineries suitable for
carrying out heavy fabrication work, for total consideration of Rs. 0.800
Million.
Te total cost of project is estimated to be
Rs. 0.800 Million, which will be financed by way of internal accrual of Rs.
0.200 Million. For the balance amount the party proposes to approach the Bank
for term loan facility of Rs. 0.600 Million.
The unit has achieved a sales turnover of Rs.
4.758 Millions for the previous FY 2006-07 and estimated to achieve a sales
turnover of Rs. 12.500 Millions during current FY 2007-08. The unit has work
orders of about Rs. 4.200 Millions on hand. Based on the response from existing
customers and new enquiries, the unit is confident of achieving estimated sales
turnover of Rs. 12.500 Million during 2007-08 and projected sales turnover of
Rs. 13.750 Millions during 2008-09.
The day-to-day affairs of the unit are
efficiently managed with the help of experienced and skilled workers.
Presently the party is dealing with United
Bank of India, Chinchwad, Pune branch enjoying both term loan and cash credit
limits. As United Bank is very slow in considering enhanced working capital
limit, the party is suffering form shortage of working capital. In view of this
the party has decided to approach another Bank who can respond to the needs of
the unit in timely manner. The present proposal is for takeover of existing
Term loan of Rs. 0.500 Million with United Bank and sanction of additional term
loan of Rs. 0.600 Million and enhanced working capital limit of Rs. 2.000 Millions.
TECHNICAL ASPECTS
|
Nature of Activity |
Manufacture of M S /Steel Piping, LS heavy
Fabrication, Pressure Vessel, Tanks and Heat Exchangers etc, as per
customer’s design. |
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Land and Building |
The unit is presently functioning from
factory shed at Gat No. 69, Jyotibanagar, Pune. The total plot size is about
8500 sq.ft, having constructed shed of 1000 sq.ft having constructed shed of
1000 sq.ft. and office block / store room of 1800 sw.ft. This premise is
having all the infrastructural facilities and there is sufficient space for
further expansion also. |
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Plant and Machinery |
The unit is presently having certain
machineries such as Welding rectifiers, CO2, welding machines, TIG welding,
PUG welding, ARC welding machine, Pipe welding machine, Grinders, Electric
oven, rolling machine, Chain pulley blocks, Lathe machine Band Saw,
Compressor etc. which are suitable for carrying various fabrication works.
With a view to expand the capacity. The party is proposing add additional
machineries such as Plate bending machine and Welding rectifier etc at a
total cost of Rs. 0.800 Million.
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Arrangements for Utilities |
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Raw Material |
Main raw materials Mild Plates, channels,
angle I – Beams, flats, pipes and consumable like welding electrodes. Co2
gas/spool, grinding wheels, sander, etc are easily available through local
dealers. |
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Power and Fuel |
The power connection available at the
proposed premises is 20 HP, which is sufficient for the existing and proposed
machineries set up. |
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Water |
The manufacturing process does not requires
water in large quantities. However required water is available at the
proposed site. |
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Transport |
As the unit is located Industrial zone of
Talawade, required transport facility is easily available. |
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Labour |
The required skilled and unskilled labours
are easily available. The unit has presently employed 18 skilled workers and
6 unskilled workers. Required supervisory staff / Engineers has been
appointed. |
MANUFACTURING PROCESS, IN BRIEF :
The manufacturing process involves, Cutting,
forming, turning, grinding, drilling, welding of Steel plates / bars / angles
etc. as per the design and drawing provided by the customers. Quality check is
made by the customer’s representative before dispatch.
MARKET POTENTIAL
The unit is engaged in varying out MS/Steel
piping work, Heavy fabrication work and manufacture of Pressure vessel. Tanks,
Heat exchangers etc as per customer’s requirement. The unit is mainly dealing
with reputed companies listed below and has been receiving repeat orders from
these companies
- Thermax Limited
- Thermax Engineering and Construction Company
- Pidilite Industries Limited
- Technocraft Industries Limited – Murbad
- COMP Engineering Exports
- Automech Handlers
- Parag Milk and Milk Products Private Limited
- Kalava Chemicals Limited
- Danube Fashions Limited
- Mahabal Enviro Engineers
- Thermovision Sales and Services Private Limited
- Siporex India Limited
- Zicom Security Services Private Limited
The unit is producing quality products as per
the stringent quality norms set by its customers and hence there is generation
of repeat orders. Also due to the improved economic activity in the Engineering
/ automobile sector, the demand is ever growing. It can be seen from the financial
statements that the unit has achieved as sales turnover of Rs. 4.758 millions
for the FY 2006-07, showing an increase of about 58 % over previous years
sales. During the current FY 2007-08, the unit has achieved a sales turn over
of Rs. 9.152 Millions upto December 2007 and estimated to achieve a sales
turnover of Rs. 12.500 Millions during 2007-08, showing an increase of about
160 %. The unit has work orders worth about Rs. 4.200 Millions on hand. With
this the unit is well placed to achieve sales target of Rs. 13.750 Millions
during the next financial year 2008-09.
In view of the established business contacts
and increased market demand the unit may not face and difficulty in achieving
the projected level of growth in business.
COST OF PROJECT AND MEANS OF FINANCE
Cost of Project
Rs in Millions
|
Particulars |
Already Incurred
|
To be Incurred |
Total |
|
Land and Building |
0.000 |
0.000 |
0.000 |
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Plant and Machinery |
0.000 |
0.800 |
0.800 |
|
Tooling and Fixtures |
0.000 |
0.000 |
0.000 |
|
Electrification and Gen Sets |
0.000 |
0.000 |
0.000 |
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Office Equipments |
0.000 |
0.000 |
0.000 |
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Furniture |
0.000 |
0.000 |
0.000 |
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Erection and Commissioning |
0.000 |
0.000 |
0.000 |
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Total |
0.000 |
0.800 |
0.800 |
Means of Finance
|
Particulars |
Already Incurred
|
To be Incurred |
Total |
|
Promoters Contribution |
0.000 |
0.000 |
0.000 |
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Internal Accruals |
0.000 |
0.200 |
0.200 |
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Fresh Term Loan from Bank |
0.000 |
0.600 |
0.600 |
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Total |
0.000 |
0.800 |
0.800 |
Term Loan Requirement
The party proposes to purchase Plant and
Machineries as per the list enclosed at a total cost of Rs. 0.800 Million and
keeping 25 % margin the eligible Term Loan components works out to Rs. 0.600
Million. The margin will be met from internal accruals. A part from this the
unit is having term loan balance of Rs. 0.500 Million with United Bank and the
unit has requested for the takeover of the same. In view of this the total term
loan components works out to Rs. 1.100 Millions
COST OF PRODUCTION / PROFITABILITY STATEMENT
The detailed estimation of cost, performance
and profitability statements is prepared for the unit, which is enclosed.
In this type of activity, the capacity of the
manufacturing facility cannot be stated as the item manufactured / fabricated
are of non-standard type having different sizes and shapes.
The unit, during the previous financial year
06-07, has achieved sales turnover of Rs. 4.758 Millions. Further the unit has
achieved a turnover of Rs. 9.152 Millions, from April 07, December 2007 and
estimated to achieve a turnover of Rs. 12.500 Millions for the FY 2007-08.
Further orders worth Rs. 4.200 Millions are on hand. With this background, the
unit has projected conservative sales target of Rs. 13.750 Millions during next
financial year 2008-09, which is well within reach. Thereafter modest increase
of 10 % assumed during every year. Various other costs are projected at
reasonable level based on the actual past performance of the unit. The unit
would be in a position to post better performance on year – to – year basis.
Debt Service Coverage Ratio [DSCR]
The DSCR is estimated for the unit as per the following details
|
Particulars |
2007-08 [Projected] |
2008-09 [Projected] |
2009-10 [Projected] |
2010-11 [Projected] |
2011-12 [Projected] |
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Net profit after Tax |
1.169 |
1.261 |
1.520 |
1.784 |
2.045 |
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Depreciation |
0.265 |
0.284 |
0.241 |
0.205 |
0.174 |
|
Interest On: |
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Fresh Term Loan |
0.007 |
0.076 |
0.054 |
0.033 |
0.011 |
|
Existing Term Loan |
0.073 |
0.063 |
0.045 |
0.027 |
0.09 |
|
Vehicle Loan |
0.043 |
0.026 |
0.020 |
0.013 |
0.011 |
|
Personal Loan |
0.050 |
0.086 |
0.027 |
0.03 |
0.000 |
|
Total [A] |
1.607 |
1.796 |
1.907 |
2.065 |
2.250 |
|
Interest On: |
|
|
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|
Fresh Term Loan |
0.007 |
0.076 |
0.054 |
0.033 |
0.011 |
|
Existing Term Loan |
0.073 |
0.063 |
0.045 |
0.027 |
0.009 |
|
Vehicle Loan |
0.043 |
0.026 |
0.020 |
0.013 |
0.011 |
|
Personal Loan |
0.050 |
0.086 |
0.027 |
0.003 |
0.000 |
|
Annual Repayment : |
|
|
|
|
|
|
Fresh Term Loan |
0.000 |
0.150 |
0.150 |
0.150 |
0.150 |
|
Existing Term Loan |
0.063 |
0.125 |
0.125 |
0.125 |
0.125 |
|
Vehicle Loan |
0.358 |
0.153 |
0.059 |
0.066 |
0.073 |
|
Personal Loan |
0.114 |
0.207 |
0.140 |
0.060 |
0.000 |
|
Total [B] |
0.708 |
0.786 |
0.620 |
0.477 |
0.379 |
|
DSCR [A/B] |
0.227 |
0.228 |
0.308 |
0.433 |
0.379 |
|
Average DSCR |
0.324 |
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|||
The average DSCR ratio for the unit is above
1.50:1, which indicates comfortable liquidity position in the business. The
operations generate sufficient surplus to repay Term Loan over a period of Four
years with initial repayment holiday of one month and also build up required
Net working Capital in the system.
WORKING CAPITAL REQUIREMENT
|
|
Rs in millions |
|
Anticipated net sales during the FY 2007-08 |
12.500 |
|
Net profit before tax |
1.616 |
|
Consumption of raw materials |
7.590 |
|
Cost of production |
9.005 |
|
Cost of sales |
9.005 |
|
Total cost including interest and selling
and admn. Cost |
1.879 |
Current Assets
|
Item |
Norm |
Rs in millions |
|
Raw material |
2.00 Month’s Consumption |
1.265 |
|
Consumable stores |
2.00 Month’s Consumption |
0.000 |
|
Stock in process |
2.00 Month’s Consumption |
0.000 |
|
Finished goods |
2.00 Month’s Consumption |
0.000 |
|
Receivables |
2.00 Month’s Gross Sales |
2.083 |
|
Advance to suppliers |
|
0.100 |
|
Other current assets |
|
0.410 |
|
Total [A] |
|
3.858 |
|
Current liabilities : |
|
|
|
Creditors for purchases |
1.00 month’s Purchase |
0.633 |
|
Advance from customers |
|
0.000 |
|
Outstanding expenses |
1.00 month’s Purchase |
0.100 |
|
Other current liability |
|
0.000 |
|
Total [B] |
|
0.733 |
|
Working capital gap [A-B] |
|
3.125 |
|
Less : |
|
|
|
Margin required / provided |
|
1.125 |
|
Permissible Bank Finance |
|
2.000 |
REMARKS ON WORKING CAPITAL
The level of holding of various items of
current assets and current liabilities have been projected on realistic basis
keeping view the past trend.
The net working capital is projected to be at
Rs. 1.125 Millions as on 31.03.2008, which corresponds to current ratio 1.41:1.
The current ratio of 1.41 is above the accepted norm for SSI units. The
comfortable position of NWC indicates sufficient generation of long-term
surplus in the business. In view of this, the unit is eligible for working
capital limit of Rs. 2.000 Millions, which can be extended as CC against
hypothecation of stock and Receivables with 25 % margin.
Conclusion
Mr. Kumar Patil is qualified technical person
having more than twenty years experience in the manufacturing / fabrication /
production processes / purchase / marketing. He has developed good contacts in
the market and has been receiving repeat orders from its customers. The
proprietor is well experienced businessman managing unit with the help of
skilled labours.
The unit is well established in the market for
the supply of quality products at reasonable prices. The demand for the products
is increasing day by day due favorable industrial climate in the country. The
unit has achieved a sales turnover of Rs. 4.758 Millions for previous financial
year 2006-07, showing steady growth in the business. The party is set to
achieve a sales turnover of Rs. 12.500 Millions during the current FY 2007-08
and Rs. 13.750 Millions during next FY 2008-09. The party is presently
functioning from a leased premise at Gat No. 69, Jyotibanagar, Talawade, Pune
having all the infrastructural facilities, the party is now proposing purchase
additional machineries at total cost of Rs. 0.800 Million, to meet the
increased demand and to enhance the productivity.
The proprietor will be officering collateral
security of residential flat valued at Rs. 1.989 Millions.
The party has applied for Term Loan facility
of Rs. 1.100 Millions, to part finance the acquisition of the machineries and
takeover of existing term loan balance of Rs. 0.500 Million with United Bank.
The required margin will be brought in by way of internal accrual of Rs. 0.200
Million. The party is also in need of working capital limit of Rs. 2.000
Millions to ensure smooth working of the unit.
The proprietor is confident of achieving the
projected level of gross income and repay the Bank loan promptly as suggested
in the project report.
The activity is both technically feasible and
economically viable and deserve due consideration for sanction of term loan.
Notes on Profitability Statements
- It may take 1 month time for receiving and installation of new
machineries. As such repayment holiday of 1 month has been sought from the
date of release and it has been proposed to commence the repayments from
April 2008.
- The unit has achieved a sales turnover of Rs. 4.758 Millions for the
financial year 2006-07 and sales turnover of Rs. 9.157 Millions for first
nine months period of current financial year 2007-08. the unit is having
regular work orders form its clientele and orders worth Rs. 4.200 Millions
on hand for the current financial year. By the new addition of proposed
machineries. Keeping this in view, a net sales turnover of Rs. 12.500
Millions has been targeted during current financial year 2007-08 and Rs.
13.750 Million during next financial year 2008-09. thereafter a modest
increase of 10 % in sales turnover has been considered on conservative
basis for the future years.
- The interest on Term Loan of Rs. 1.100 Millions is calculated @
14.50 % per annum on average balance and on working capital limits of Rs.
2.000 Millions @ 14.50 % P.A.
- The depreciation is estimated on WDV basis as per the applicable
norms.
- Income Tax is calculated as per the I.T. Rules applicable to
proprietorship firms. Presently assumed IT rate is @ 30.90 % inclusive of
surcharge.
Assumption for projected Financials
|
Installed Capacity |
Not ascertainable |
|
|
|
|
Operating Capacity |
Not ascertainable |
|
|
|
|
Sales Turnover |
Rs. 12.500 Millions during 2007-08, Rs. 13.750 Millions during 2008-09 And 10 % increase every year from FY 2009-10
onwards. |
|
|
|
|
Raw Materials Consumption |
66 % of sales |
|
|
|
|
Electricity / Water / Fuels |
Estimated on realistic basis |
|
|
|
|
Labour / Wages |
6.00 % of Net sales |
|
|
|
|
Stores and Spares |
Nil |
|
|
|
|
Repairs and Maintenance |
Estimated on realistic basis |
|
|
|
|
Other manufacturing expenses |
Estimated on realistic basis |
|
|
|
|
Depreciation |
WDV method |
|
|
|
|
Interest on WC |
14.50 % p.a. |
|
|
|
|
Interest on Term Loan |
14.50 % p.a. on avg. balance |
|
|
|
|
Sales and Administrative Expenses |
12.00 % on sales |
|
|
|
|
Non Operating Income |
Estimated on realistic basis |
|
|
|
|
Tax |
30.90 % of taxable profit |
|
|
|
|
Raw Material |
2.00 months consumption |
|
|
|
|
Stores / spares |
Nil |
|
|
|
|
Work in process |
Nil |
|
|
|
|
Finished goods |
Nil |
|
|
|
|
Receivables |
2.00 months Gross Sales |
|
|
|
|
Creditors for Purchases |
1.00 Months Purchases |
PROJECTED SUMMARISED BALANCE SHEET
[Rs in millions]
|
|
Estimated |
Projected |
|||
|
LIABILITIES |
31.03.2008 |
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
|
|
|
|
|
|
|
Equity Shares Capital |
0.300 |
0.300 |
0.300 |
0.300 |
0.300 |
|
|
|
|
|
|
|
|
Reserves and Surplus |
1.002 |
1.566 |
2.142 |
2.717 |
3.307 |
|
|
|
|
|
|
|
|
Fresh Term Loan |
0.600 |
0.450 |
0.300 |
0.150 |
0.000 |
|
|
|
|
|
|
|
|
Existing Term Loan |
0.500 |
0.375 |
0.250 |
0.125 |
0.000 |
|
|
|
|
|
|
|
|
Bank Borrowings for Working Capital |
2.000 |
2.000 |
2.000 |
2.000 |
2.000 |
|
|
|
|
|
|
|
|
Unsecured Loans |
0.048 |
0.048 |
0.048 |
0.048 |
0.048 |
|
|
|
|
|
|
|
|
Vehicles Loan |
0.256 |
0.203 |
0.144 |
0.078 |
0.005 |
|
|
|
|
|
|
|
|
Personal Loans |
0.407 |
0.200 |
0.060 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5.113 |
5.142 |
5.244 |
5.418 |
5.660 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Block |
2.598 |
2.598 |
2.598 |
2.598 |
2.598 |
|
|
|
|
|
|
|
|
Depreciation |
0.685 |
0.969 |
1.210 |
1.415 |
1.589 |
|
|
|
|
|
|
|
|
Net Block |
1.913 |
1.629 |
1.388 |
1.183 |
1.009 |
|
|
|
|
|
|
|
|
Investments |
0.075 |
0.075 |
0.075 |
0.075 |
0.075 |
|
|
|
|
|
|
|
|
Net Current Assets |
3.040 |
3.350 |
3.691 |
4.068 |
4.481 |
|
|
|
|
|
|
|
|
Cash and Bank Balance |
0.085 |
0.088 |
0.090 |
0.092 |
0.095 |
|
|
|
|
|
|
|
|
Preliminary and Pre-operating Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5.113 |
5.142 |
5.244 |
5.418 |
5.660 |
BALANCE SHEET- PROJECTED
Rs in Millions
|
|
Estimated |
Projected |
|||
|
|
31.03.2008 |
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
|
|
|
|
|
|
|
Proprietor’s Share Capital |
0.300 |
0.300 |
0.300 |
0.300 |
0.300 |
|
General Reserve |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Share premium |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Subsidy |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
P
& L A/c |
1.002 |
1.566 |
2.142 |
2.717 |
3.307 |
|
|
|
|
|
|
|
|
Fresh Term Loan |
0.600 |
0.450 |
0.300 |
0.150 |
0.000 |
|
Existing Term Loan |
0.500 |
0.375 |
0.250 |
0.125 |
0.000 |
|
Working Capital Loan [CC] |
2.000 |
2.000 |
2.000 |
2.000 |
2.000 |
|
Vehicle Loans |
0.256 |
0.203 |
0.144 |
0.078 |
0.005 |
|
Other Unsecured Loans |
0.048 |
0.048 |
0.048 |
0.048 |
0.048 |
|
Personal Loan |
0.407 |
0.200 |
0.060 |
0.000 |
0.000 |
|
TOTAL |
5.113 |
5.142 |
5.244 |
5.418 |
5.660 |
|
Fixed Assets |
|
|
|
|
|
|
Gross Block |
2.598 |
2.598 |
2.598 |
2.598 |
2.598 |
|
Depreciation |
0.685 |
0.969 |
1.210 |
1.415 |
1.589 |
|
|
1.913 |
1.629 |
1.388 |
1.183 |
1.009 |
|
|
|
|
|
|
|
|
Investments |
0.075 |
0.075 |
0.075 |
0.075 |
0.075 |
|
Current Assets : |
|
|
|
|
|
|
Stocks-Rawmat. |
1.265 |
1.392 |
1.531 |
1.684 |
1.852 |
|
Stock-Stores |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Stock – WIP
|
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Stock – Finished Goods |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Debtors |
2.083 |
2.292 |
2.521 |
2.773 |
3.050 |
|
Bank |
0.050 |
0.050 |
0.050 |
0.050 |
0.050 |
|
Cash |
0.035 |
0.038 |
0.040 |
0.042 |
0.045 |
|
Advance Income Tax [Vet] |
0.225 |
0.237 |
0.274 |
0.318 |
0.365 |
|
Loans and Advances |
0.100 |
0.125 |
0.140 |
0.155 |
0.170 |
|
Other Current assets |
0.100 |
0.125 |
0.140 |
0.155 |
0.170 |
|
|
3.858 |
4.259 |
4.696 |
5.177 |
5.702 |
|
|
|
|
|
|
|
|
Current Liabilities : |
|
|
|
|
|
|
Creditors for Purchases |
0.633 |
0.696 |
0.765 |
0.842 |
0.926 |
|
Advance from customers |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Liabilities for Expenses |
0.100 |
0.125 |
0.150 |
0.175 |
0.200 |
|
Provision for Taxation [Net] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Statutory Liabilities |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Dividend Payable |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Others |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
0.733 |
0.821 |
0.915 |
1.017 |
1126 |
|
Net current assets |
3.125 |
3.438 |
3.781 |
4.160 |
4.576 |
|
Preliminary and Pre operating Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5.113 |
5.142 |
5.244 |
5.418 |
5.660 |
Rs in Millions
|
|
Estimated |
Projected |
|||
|
|
31.03.2008 |
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
SALES : |
|
|
|
|
|
|
Domestic Sales |
11.500 |
12.650 |
13.815 |
15.307 |
16.838 |
|
Labour charges |
1.000 |
1.100 |
1.210 |
1.331 |
1.464 |
|
Deduct : Excise Duty |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Receipts |
12.500 |
13.750 |
15.125 |
16.638 |
18.302 |
|
EXPENDITURE |
|
|
|
|
|
|
Raw Materials : Imported |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Indigenous |
7.590 |
8.349 |
9.184 |
10.103 |
11.113 |
|
Electricity Charges |
0.075 |
0.083 |
0.091 |
0.100 |
0.110 |
|
Direct Labour and Wages and Processing
Charges |
0.750 |
0.825 |
0.908 |
0.998 |
1.098 |
|
Consumable stores / spares |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Repairs and Maintenance |
0.125 |
0.138 |
0.152 |
0.167 |
0.184 |
|
Other Misc. Expenses |
0.200 |
0.220 |
0.242 |
0.266 |
0.293 |
|
Depreciation |
0.265 |
0.284 |
0.241 |
0.205 |
0.174 |
|
Total |
9.005 |
9.899 |
10.818 |
11.839 |
12.972 |
|
Opening Stock |
|
|
|
|
|
|
Finished |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Semi Finished |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Total |
9.005 |
9.899 |
10.818 |
11.839 |
12.972 |
|
Gross Profit |
3.495 |
3.851 |
4.307 |
4.799 |
5.330 |
|
Interest |
|
|
|
|
|
|
On Fresh Term loan |
0.007 |
0.076 |
0.054 |
0.033 |
0.011 |
|
On Existing Term Loan |
0.073 |
0.063 |
0.045 |
0.027 |
0.009 |
|
On Working Capital |
0.206 |
0.200 |
0.200 |
0.200 |
0.200 |
|
On Vehicle Loan |
0.043 |
0.026 |
0.020 |
0.013 |
0.011 |
|
On other Loans |
0.050 |
0.086 |
0.027 |
0.003 |
0.000 |
|
Total Interest |
0.379 |
0.451 |
0.346 |
0.276 |
0.231 |
|
Selling and Other admn. Expenses |
1.500 |
1.650 |
1.815 |
1.997 |
2.196 |
|
Non-operating Income |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit before Taxation |
1.616 |
1.750 |
2.146 |
2.526 |
2.903 |
|
Provision for Taxes |
0.447 |
0.489 |
0.626 |
0.742 |
0.858 |
|
Net Profit |
1.169 |
1.261 |
1.520 |
1.784 |
2.045 |
|
Depreciation added back |
0.265 |
0.284 |
0.241 |
0.205 |
0.174 |
|
Net Cash Accruals |
1.434 |
1.545 |
1.761 |
1.989 |
2.219 |
|
Repayment Obligations |
|
|
|
|
|
|
Fresh Term Loan |
0.000 |
0.150 |
0.150 |
0.150 |
0.150 |
|
Existing Term Loan |
0.063 |
0.125 |
0.125 |
0.125 |
0.125 |
|
Vehicle Loan |
0.358 |
0.053 |
0.059 |
0.066 |
0.073 |
|
Other Term loans |
0.114 |
0.207 |
0.140 |
0.060 |
0.000 |
|
Interest on Term Loans |
0.173 |
0.251 |
0.146 |
0.076 |
0.031 |
|
|
0.708 |
0.786 |
0.620 |
0.477 |
0.379 |
|
Debt Services Ratio |
2.27 |
2.28 |
3.08 |
4.33 |
5.94 |
|
Break even value |
8.012 |
8.885 |
9.188 |
9.669 |
10.305 |
|
Cash Break Even Point |
7.309 |
8.132 |
8.548 |
9.124 |
9.844 |
|
B/F Surplus |
0.542 |
1.002 |
1.566 |
2.142 |
2.717 |
|
Transf. from
Reserves |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Available for appropriation |
1.711 |
2.263 |
3.086 |
3.926 |
4.762 |
|
Appropriation |
|
|
|
|
|
|
General Reserve |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Withdrawal |
0.709 |
0.697 |
0.944 |
1.209 |
1.455 |
|
Corporate
Dividend Tax |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Balance C/F |
1.002 |
1.566 |
2.142 |
2.717 |
3.307 |
|
Particulars of Existing Term Loans |
|
|
|
|
|
|
Loans taken during the year > |
0.500 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Loans repaid :
Term Loan |
0.000 |
[0.125] |
[0.125] |
[0.125] |
[0.125] |
|
|
|
|
|
|
|
|
Total Repayments during the year |
0.000 |
[0.125] |
[0.125] |
[0.125] |
[0.125] |
|
|
|
|
|
|
|
|
Closing balance |
0.500 |
0.375 |
0.250 |
0.125 |
0.000 |
|
|
|
|
|
|
|
|
Interest for the year [14.50 % p.a.] |
0.073 |
0.063 |
0.045 |
0.027 |
0.009 |
|
|
|
|
|
|
|
|
Particulars of Fresh Term Loans |
|
|
|
|
|
|
Loans taken during the year > |
0.600 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Loans repaid :
Term Loan |
0.000 |
[0.150] |
[0.150] |
[0.150] |
[0.150] |
|
|
|
|
|
|
|
|
Total Repayments during the year |
0.000 |
[0.150] |
[0.150] |
[0.150] |
[0.150] |
|
|
|
|
|
|
|
|
Closing balance |
0.600 |
0.450 |
0.300 |
0.150 |
0.000 |
|
|
|
|
|
|
|
|
Interest for the year [14.50 % p.a.] |
0.007 |
0.076 |
0.054 |
0.033 |
0.011 |
|
|
|
|
|
|
|
|
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin |
0.18 |
0.18 |
0.18 |
0.18 |
0.18 |
|
|
|
|
|
|
|
|
Return on Capital Employed |
0.57 |
0.64 |
0.71 |
0.76 |
0.80 |
|
|
|
|
|
|
|
|
Current Ratio |
1.41 |
1.51 |
1.61 |
1.72 |
1.82 |
|
|
|
|
|
|
|
|
Debt Equity Ratio |
1.39 |
0.68 |
0.33 |
0.13 |
0.01 |
|
|
|
|
|
|
|
|
TOL / TNW |
1.95 |
1.12 |
0.70 |
0.47 |
0.33 |
|
|
|
|
|
|
|
|
Debtors
collection Period [days] |
61.00 |
61.00 |
61.00 |
61.00 |
61.00 |
|
RM holding Period [days] |
61.00 |
61.00 |
61.00 |
61.00 |
61.00 |
|
WIP holding Period [days] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
FG holding period [days] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Creditors payment period [days] |
30.00 |
30.00 |
30.00 |
30.00 |
30.00 |
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.42.64 |
|
UK Pound |
1 |
Rs.83.00 |
|
Euro |
1 |
Rs.66.00 |
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 |
NO |
|
--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 |
|