MIRA
INFORM REPORT
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Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
JITEEN ENGINEERING WORKS |
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Registered Office : |
681/1, Landewadi, Bhosari, Pune– 410039, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 [Provisional] |
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Year of Established : |
1985 |
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PAN No.: [Permanent
Account No.] |
AAHPN3756F |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Existing : Manufacturing of Engineering / Machined components and sub
assemblies. Proposed : Manufacture of Forged Components |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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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 records. Proprietor is reported as experienced, respected and having
satisfactory means of their own. Trade relations are fair. General financial
position is satisfactory. Payments are reported as usually correct and as per
commitments. The concern can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
681/1, Landewadi, Bhosari, Pune– 410039, Maharashtra, India |
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Tel. No.: |
91-20-27111588 / 27122963 |
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Mobile No.: |
91-9373328583 / 49922921620 |
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Fax No.: |
91-20-27122963 |
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E-Mail : |
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Area : |
Rented |
SOLE PROPRIETOR
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Name : |
Mr. Tukaram Ghanshyam Naik |
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Designation : |
Proprietor |
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Date of Birth/Age : |
03.10.1953 [54 Years] |
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Qualification : |
10th Standard |
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Experience : |
30 Years |
BUSINESS DETAILS
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Line of Business : |
Existing : Manufacturing of Engineering / Machined components and sub
assemblies. Proposed : Manufacture of Forged Components |
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Products : |
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Terms : |
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Selling : |
Credit [60 days] |
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Purchasing : |
Credit [30 days] |
PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Engineering Components |
Not
Ascertainable |
NA |
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Forged Components [Proposed] |
3000 MTs |
70 % |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
OEM’s
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No. of Employees : |
27 [In Office : 2 and in Factory : 25] |
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Bankers : |
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Facilities : |
TL Rs. 3.000 Millions Cash Credit limit Rs. 3.000 Millions
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Shailesh R Shah Chartered Accountants |
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Address : |
Pimpri, Pune – 411018 |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS ON 31.03.2008
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Capital Investment : |
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Owned : |
Rs. 12.752 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 12.752 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2008 [Provisional] |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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12.752 |
8.129 |
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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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12.752 |
8.129 |
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LOAN FUNDS |
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1] Secured Loans |
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11.351 |
15.385 |
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2] Unsecured Loans |
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3.385 |
0.000 |
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TOTAL BORROWING |
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14.736 |
15.385 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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27.488 |
23.514 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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19.608 |
17.674 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.244 |
0.243 |
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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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3.916 |
3.446 |
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Sundry Debtors |
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11.450 |
9.476 |
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Cash & Bank Balances |
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0.406 |
0.067 |
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Other Current Assets |
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1.923 |
4.302 |
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Loans & Advances |
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0.973 |
0.716 |
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Total
Current Assets |
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18.668 |
18.007 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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10.006 |
11.426 |
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Provisions |
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1.026 |
0.984 |
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Total
Current Liabilities |
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11.032 |
12.410 |
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Net Current Assets |
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7.636 |
5.597 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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27.488 |
23.514 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2008 [Provisional] |
31.03.2007 |
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Sales Turnover |
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98.643 |
83.748 |
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Net Profit |
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4.886 |
3.165 |
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Expenditures : |
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Interest |
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1.591 |
2.024 |
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Insurance Expenses |
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0.060 |
0.068 |
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Depreciation & Amortization |
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3.057 |
3.260 |
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Other Expenditure |
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89.049 |
75.231 |
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Total Expenditure |
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93.757 |
80.583 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 [Provisional] |
31.03.2007 |
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PAT / Total Income |
(%) |
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4.95 |
3.78 |
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Net Profit Margin (PBT/Sales) |
(%) |
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4.95 |
3.78 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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12.77 |
8.87 |
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Return on Investment (ROI) (PBT/Networth) |
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0.38 |
0.39 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.02 |
3.42 |
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Current Ratio (Current Asset/Current Liability) |
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1.69 |
1.45 |
LOCAL AGENCY
FURTHER INFORMATION
GENERAL
OBSERVATION
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Reference : |
John Deere Equipment Limited |
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Name of the Person : |
Mr. Mahesh Mohol |
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Contact Number : |
91-9850001981 |
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Since How Long Known : |
5 Years |
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Experience : |
Satisfactory |
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Reference : |
Tata Motors Limited |
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Name of the Person : |
Mr. Manish Motha |
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Contact Number : |
91-9922926904 |
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Since How Long Known : |
5 Years |
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Experience : |
Satisfactory |
BUSINESS
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Sector : |
S S I Sector |
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Guarantors offered |
Mr. Santosh Hosalkar |
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Present Proposal |
The unit has requested for following credit limits for purchase of
ready build Forging unit and additional machineries for catering to the Auto
/ Engineering Industries. |
Brief History and Management
This unit was established in the year 1985 for
the manufacture of Engineering Components mainly used by Automobile Industry.
The main person behind this venture, Mr. T G Naik is well experienced in
Engineering Industry. He started his career as machine operator with Kores
India Limited and worked on various machines, during the period from 1976 to
1983. He gathered very good exposure in operations of various machines and
manufacturing processes. He left job in 1983 and started his own unit with
single lathe machine. After gaining the foothold in the market, he established
the present unit viz. Jiteen Engineering Works in the year 1985. Since then he
has never looked back and the unit has shown steady growth in business. The
unit is mainly engaged in manufacturing of various products such as Gears, Gear
shift level assembly, Break lever assembly, Gear Shifter, Steering worm gear
assembly, Synchronizing ring etc. The Unit is supplying its products mainly to
Tata Motors Limited ad John Deere Equipments Private Limited
The manufacturing facilities of the unit
consist of CNC machines, Lathe machines, Milling Machines, Broaching machine,
Gear cutting machine, Gear chamfering machine etc, suitable for carrying out
various machining operations from pre- machining stage to finishing stage. The
company’s products meet the high quality standards and competitive pricing set
by their customers. The unit has also obtained ISO certification.
The unit has achieved a gross sales turnover
of Rs. 98.643 Millions during the last financial year 2007-08, as against Rs.
83.748 Millions achieved during 2006-07, showing growth of about 18 %. The
trend in sales turnover is continuing during this year also.
The party is now proposing to purchase ready
built forging unit located at industrial belt of Chakan from Swastik Stamping
Private Limited. This unit is a new unit set up recently and due to the
misunderstanding among the directors the unit could not function properly. This
unit is dealing with Bank of Maharashtra, Chakan and enjoying credit limits to
the tune of Rs. 23.000 Millions. This unit is having all the infrastructure for
forging in place and ready to go in production. The directors have decided to
sell the unit to Mr Naik for total consideration of Rs. 32.500 Millions. The
price offered is attracted and it will be advantageous for Jiteen Engineering
as this will be backward integration of existing process. The unit can fulfill
its forging requirements and thereby increase the profit margin. The clients
like Tata Motors and John Deere encourage nits having both forging and
machining facilities.
Further, the party is also proposing to
purchase certain machineries like Hammer, CNC lathe, Generator set and weight
bridge etc costing Rs. 6.000 Million.
The unit is presently dealing with Rupee
Co-operative Bank, Chinchwad Branch, for the past 12 years and availed Term
Loan and Cash Credit facilities. The present liability is in the range of about
Rs. 6.000 Millions. The party has informed that they are experiencing
difficulty is getting timely sanctions from Rupee Bank due to their weak funds
position and the Bank is not able to take further exposure.
In view of above, the party has decided to
approach a Nationalised Bank for take over existing liability with Rupee Bank
and sanction additional Term Loan of Rs. 28.800 Millions and enhanced working
capital limit of Rs. 13.200 Millions. The total exposure will be about Rs.
45.000 Millions
The unit is having purchase open orders from
its customers and targeting a net sales turnover of Rs. 140.666 Millions during
current FY year 2008-09 and Rs. 170.700 Millions for the next FY 2009-10, which
is well within reach.
TECHNICAL ASPECTS
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Nature of Activity |
Manufacture of Forgings, Machined components
and sub assemblies, as per customer’s design. |
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Land and Building |
Machining Division : The unit is presently
functioning from three different rental premises having area of about 800-900
sq. ft. each. These are located in the same lane at landewadi, Bhosari. These
premises are having all the infrastructural facilities. Forging Division : The unit ha proposed to
purchase ready built forging unit located at Gat No 343, Plot No 2 and 11
Mhalunge Village, Near HP Gas Depot, Chakan 410501. The Plot size is about
24000 sq. ft. has been constructed. This forging unit is having 200 Mts per
month capacity and the premise is having all the infrastructural facilities.
There is sufficient space for further expansion of forging capacity. |
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Plant and Machineries |
Machining Division : The unit is already
having various machineries suitable for mass production of Engineering
components. Forging Division : The forging unit is
having 1.00 MT and 1.25 MT Harmer and other supporting machineries. All these
machineries are in good working condition and ready for production. The unit proposing to purchase 0.50 MT
hammers for forging smaller items. There is also need to CNC lathe for
machining purpose due to increase in demand. Further weight bridge is
required to weight the material in and out of forging unit to have better
control on material movement and to avoid delay due to weighment from outside
parties. Generator set is required to tackle power cut if any. Then total
cost of these machineries is about RS. 6.000 Millions |
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Arrangements for Utilities |
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Raw Materials |
Machining Division : Major machining
operations will be done on forgings received from forging division. Further
machining will also carried on CRS grade steel rods / bars, having 20 mm – 70
mm dia. Which are easily available from local dealers, the party will be
required to purchase consumables such as cutting oils, coolants, cutting
tools and tackles etc which are easily available through local dealers. Forging division : Forging / alloy Steel is
available from the local dealers. |
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Power and Fuel |
Machining Division : The power connection
available at the premises is 52 HP, which is sufficient for running the
existing and as well as new machineries. The unit has also installed Diesel generator
set. Forging Division : The Power connection
available at the premises is 260 HP, which is sufficient for operating the
forging machineries set up. The unit proposes to add one generator set
to tackle power cuts in the area. The unit will be requiring furnace oil for
firing the oil- fired furnace for which necessary arrangements are in place
at the site. |
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Water |
The manufacturing process does not require
water in large quantities. However required water is available at both the
premises. |
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Transport |
As both the units are located in Industrial
belt of Bhosari and Chakan, required transport facility is easily available.
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Manufacturing process, in brief : |
Machining Division : The manufacturing
process involves Cutting, forming, turning, Milling drilling of forged
components, bar stock etc. as per the design and drawing provided by the
customers. Quality check is made before dispatch. Forging Division : The manufacturing process involves cutting
of alloy / carbon steel bars / rods heating to red – hot conditions in the
oil – fired furnace, giving the required shape with the help of dies / moulds
and drop hammer. The forged components in not condition are then taken to
trimming press to remove protruded portion of flashes. There after the forged
components are set for heat treatment for stress relieving and restarting its
mechanical properties. The forgings are then shot blasted to get desired
surface finish. The forged components are then machined to get accurate
desired dimension. The promoter are well experienced in the manufacturing
processes Process Flow Chart : Cutting of Row Material | Heating of the Row Material | Application of pressure in forming press | Trimming of forging Flashes | Heat Treatment
| Shot Blasting / Coining | Finish Machining | Quality Check | Dispatch |
MARKET POTENTIAL
Present Scenario in India
Forging industry is a basic industry and such
industries tend to grow in a country in relation to the rate of growth of its
GDP. As far as India is concerned, GDP is continuing to growth and therefore,
the basic industries will grow and so will the forging industry. Since it is
largely dependent on the automotive sector, the forging industry will also
continue to grow and do well. An increasing number of companies from all over
the world are coming to India to procure components and products. There are tow
growth drives one is the domestic growth in the automotive sector ad the other
one is industry because the opportunities are quite a lot and SMEs generally
have much nimbler and more agile organizations – driven by the owner who
usually is a technocrat entrepreneur.
The forged products that find application in
automobiles are front and rear hubs, differential cases and housing, engine and
control mounting rackets, levers, spring shackles, cam shaft, crank shaft,
spring hanger rackets, intake and exhaust manifolds, leveling gear box, clutch
release fork, bearing cage, life rod yoke, axle housing, steering gears,
propeller shafts, rake assembles, transmission shafts, connecting rods, axle
beams etc.
PERFORMANCE
OF THE INDIAN FORGING INDUSTRY DURING THE YEAR 2006-07
The year 2006-07 (April-March) was a good year for the Forging
industry. The revival which
started in October 2002 picked up momentum since last few years. Overall production of forgings increased to
reach about 9,83,000 tonnes
in the year. Capacity utilization also improved considerably from
40-50 percent in earlier years
to 65 per cent of the additional capacity
added during the last two years (1.5 Million approx) inclusive of overseas
aquisitions. This was
largely due to the revival in
demand from the
automotive sector and particularly the passenger car segment which
recorded an excellent performance in
both the domestic market and exports.
The industry's exports recorded a
growth of almost 20% in 2006-07 and
have reached a level of US$ 360
million. about 30-35 manufacturing
units are currently directly engaged in exports.
Efforts of AIFI
are to attract more
manufacturing units to
export. The industry’s major markets are USA, Europe and China. The
technology gap is therefore, being sought to be bridged so that companies are
prepared to face challenges of global markets.
In a nutshell, this industry has a tremendously bright
future. India is definitely emerging as a globally competitive supply base and
if companies upgrade their technology levels and modernise themselves, it is
opined by experts that there is no limit to what they can achieve in terms of
growth.
Jiteen Engineering is vendor of Total Motors Limited and
John Deere Equipment Limited [OEMs] for the past several years and recorded
steady growth in sales turnover. The unit has also developed new clients
Kinetic Engineering Limited and Bhavani Industries Limited, Rajkot. With the
addition of forging facility the unit will be able to achieve higher growth
figures in the coming years. In view of the established business and ever
increasing market demand, the unit may not face any difficulty in achieving the
projected level of growth in business.
During the current financial year 2008-09 a net sales
turnover of Rs. 140.612 Millions and during next FY 2009-10 a net sales
turnover of Rs. 170.718 Millions has been estimated. The sales target has been
estimated on conservative basis keeping in view the promoters experience and
market demand.
SWOT
Analysis
Strengths
- The proprietor of the unit has wide experience as Entrepreneur and
successfully running Auto –Component manufacturing unit over the years. He
has very wide and established contacts and network in the Auto =-
Component sector in Bhosari and Chakan.
- There is backward integration of all processes of manufacturing
i.e. Forging – Machining – Sub assemblies. Therefore unit will make enough
value addition to absorb any temporary price fluctuations in the market.
- The unit enjoys Locational advantages of being located at Bhosari
and Chakan, Pune. It has good connectivity in terms of roads and rail.
Further all the worlds leading automobile and auto component manufacturers
are setting up their shop at Chakan area.
- Raw material required for forging and machining is easily
available.
- Since a ready built Forging unit is proposed to be acquired and
which is already under production, the basic infrastructure is in place
thereby making the development of project speedy and fruitful.
- The unit is having vendor code from Tata Motors and John Deere
Equipments Limited and hence work orders will be received directly form
these OEMs.
- Presently the unit is rated as excellent vendor by Tata Motors on
account of least rejection rate. The unit has obtained ISO Quality
Certification.
Weaknesses
- The unit is having its production facilities spread out at various
places, which may cause difficulty is proper supervision.
Other the year, the proprietor
has evolved systems for monitoring production at different places, which is
working out smoothly.
- The proprietor is not academically qualified, which may pose
difficulty in implementing new management techniques.
The
services of professionally qualified persons will be sought whenever required.
Opportunities
- Increased outward focus of Domestic Automobile Manufacturers :
Leading Indian auto OEM’s are aggressively pursuing their Export plans.
- Auto OEM’s betting on big Exports : Automobile exports from India
clocked CAGR of 35-30 % over the last five years. Global OEM’s like
Hyundai, Ford, Fiat, Toyota, Honda and Yamaha are increasingly using their
India operations as a manufacturing hub for their global requirement.
- Trend towards outsourcing : Auto OEMs have started outsourcing most
of the forgings requirements.
- Short supply of quality products : the industry is general is
facing problems because of short supply and quality products. Such
customers could be tapped to increase the sales.
- Newer clientele – there is a potential demand from civil Nuclear
programmes, Power and Refinery projects for supply of specialized forging
components.
- Product range for General Engineering sector – the unit is also
looking towards growing General Engineering Industry, where is products
can be used to reduce the unit’s dependency on Automobile secotr.
Threats
- The industry has been volatile in term of demand supply, though
present demand for the products is very high, the future continue to
remain uncertain. With additional capacities coming up, only the players
with competitive edge would be able to survive in the long run.
The Proprietor has planned cost
reduction on one hand and value addition on the other hand. Further the
proprietor is also targeting other sector like General Engineering Industry to
remain in the business
- The cost of raw materials are witnessing upward trend in recent
times. Any downward movement in the sales price of finished goods without
proportionate reduction in the raw material prices will have bearing on
the viability of the unit.
With backward integration of all
processes of manufacturing i.e. Forging Machining – Sub assemblies, the unit is
ready to face any temporary price fluctuations in the market.
- High bargaining power of OEM’s constant pressure to reduce
prices.
The unit is looking at ways
improving the efficiency of plant and machineries and also implementing cost cutting measures to keep the costing
competitive.
- Threat of substitutes : Use of lightweight synthetic material
forging in never lightweight car models.
The
unit will have to develop its R & D and take technical assistance, if any
to face this threat at later stage.
Cost of project and means of finance
Cost of Project
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Particulars |
Already
Incurred |
To
Be Incurred |
Total
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Land and Building |
0000 |
20.000 |
20.000 |
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Plant and Machineries |
0000 |
16.000 |
16.000 |
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Electrification |
0000 |
2.500 |
2.500 |
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Deposits [Premises and other] |
0000 |
0.000 |
0.000 |
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Misc Fixed Assets |
0000 |
0.000 |
0.000 |
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Total cost of the Project |
0000 |
38.500 |
38.500 |
Means of Finance
|
Particulars |
Already
Incurred |
To
Be Incurred |
Total
|
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Capital Introduced |
0.000 |
5.000 |
5.000 |
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Internal Accruals |
0.000 |
4.700 |
4.700 |
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Fresh term Loan from Bank |
0.000 |
28.800 |
28.800 |
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Total |
0.000 |
38.500 |
38.500 |
Term Loan requirement :
The company proposes to acquire
ready built Forging unit a Chakan for the total consideration of Rs. 32.500
millions. Further the unit also proposes to purchase machineries such as Hammer
[0.50 MT], CNC lathe, generator set and weight bridge etc costing Rs. 6.000
Millions. Keeping 25 % margin on total amount of Rs. 38.500 Millions the eligible
Term Loan component works out to Rs. 28.800 Millions
Further, the existing Term loan
liability with Rupee bank, Chinchwad is about Rs. 3.000 Millions and same is
required to taken over by the new bank. Considering this amount, the total term
loan requirement works out Rs. 31.800 Millions
Out of the total margin
requirement of Rs. 9.700 Millions, the party will be introducing additional
capital of Rs. 5.000 Millions and balance amount of Rs. 4.700 Millions by way
of internal cash accrual.
Cost of Production / profitability
statement
The detailed estimation of cost,
performance and profitability statements is prepared for the unit, which is
enclosed.
Machining Division : In this type
of activity, the capacity of the manufacturing facility can not be stated as
the item manufactured on various machines are of different size and shapes and
are large in numbers. Keeping in view the past performance of the unit twenty
percent increase in the sales turnover has been assumed during current financial
year.
Forging Division : The forging
unit is having installed capacity of 2400 MTs p.a. and same will be increased
to 3000 MTs p.a. after addition of 0.50 MT hammer.
DEBT SERVICE COVERAGE RATIO [DSCR]
The DSCR is estimated for the unit
as per the following details
Calculation of DSCR Rs
in Millions
|
Particulars |
Projected
|
||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
Net profit after tax |
6.672 |
10.681 |
14.168 |
17.975 |
18.945 |
|
Deprecation |
6.133 |
5.237 |
4.479 |
3.831 |
3.280 |
|
Interest on Fresh Term Loan |
3.615 |
3.588 |
2.886 |
1.950 |
0.702 |
|
Interest on Existing T L [Rupee
BK] |
0.100 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Interest on Electronica Loan |
0.164 |
0.067 |
0.006 |
0.000 |
0.000 |
|
Interest on Vehicle Loans |
0.050 |
0.007 |
0.000 |
0.000 |
0.000 |
|
Interest on Personal Loans |
0.217 |
0.140 |
0.065 |
0.015 |
0.000 |
|
Total [A] |
16.951 |
19.720 |
21.604 |
23.771 |
22.927 |
|
Interest on Fresh Term Loan |
3.615 |
3.588 |
2.886 |
1.950 |
0.702 |
|
Interest on Existing T L [Rupee
BK] |
0.100 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Interest on Electronica Loan |
0.164 |
0.067 |
0.006 |
0.000 |
0.000 |
|
Interest on Vehicle Loans |
0.050 |
0.007 |
0.000 |
0.000 |
0.000 |
|
Interest on Personal Loans |
0.217 |
0.140 |
0.065 |
0.015 |
0.000 |
|
Annual Repayment |
|
|
|
|
|
|
Fresh Term Loan |
1.800 |
4.800 |
6.000 |
8.400 |
10.800 |
|
Existing T L [Rupee BK] |
0.300 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Electronica Loan |
1.481 |
0.591 |
0.213 |
0.000 |
0.000 |
|
Vehicle Loans |
0.405 |
0.190 |
0.000 |
0.000 |
0.000 |
|
Personal Loans |
0.602 |
0.505 |
0.505 |
0.170 |
0.000 |
|
Total [B] |
8.734 |
9.888 |
9.675 |
10.535 |
11.502 |
|
SCDR [A/B] |
0.194 |
0.199 |
0.223 |
0.226 |
0.199 |
|
Average DSCR |
0.194 |
|
|
|
|
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 the Term Loan
facility over a period of 60 months with initial repayment holiday of 3 months
and also build up required Net working capital in the system.
WORKING CAPITAL REQUIREMENT
Rs in
Millions
|
Anticipated net sales during the
FY 2008-09 |
140.612 |
|
Net profit before tax |
9.532 |
|
Consumption of raw materials |
70.492 |
|
Cost of production |
121.053 |
|
Cost of sales |
121.053 |
|
Total cost including interest
and selling and admn. Cost |
10.027 |
|
Item |
Norm |
Amount
- Rs in Millions |
|
Current Assets |
|
|
|
-
Raw Material |
1.00 Months Consumption |
5.874 |
|
-
Consumable stores |
|
0.000 |
|
-
Stock in process |
|
0.000 |
|
-
Finished goods |
|
0.000 |
|
-
Receivables |
1.50 Month’s gross Sales |
18.581 |
|
-
Advance to suppliers |
|
0.300 |
|
-
Other current assets |
|
2.195 |
|
TOTAL
[A] |
|
26.950 |
|
Current Liabilities |
|
|
|
-
Creditors for purchases |
1.00 Month’s Purchase |
5.874 |
|
-
Advance from customers |
|
0.700 |
|
-
Outstanding expenses |
|
0.000 |
|
-
Other current liability |
|
0.254 |
|
-
Term loan installments due
within one year |
|
0.000 |
|
TOTAL
[B] |
|
6.828 |
|
Working capital gap [A-B] |
|
20.122 |
|
Less : |
|
|
|
Margin required / provided |
|
6.922 |
|
Permissible bank Finance |
|
13.200 |
Remarks on working capital :
The levels of holding of various
items of current assets and current liabilities have been projected on
realistic basis keeping in view promoter’s experience.
The net working capital is projected
to be at Rs. 6.922 Millions as on 31.03.2009, which corresponds to current
ratio 1.35:1. The comfortable position of NWC indicates sufficient generation
of long-term surplus in the business. The unit will require Cash Credit limit
of Rs. 13.200 Millions, against hypothecation of Stock of raw materials, WIP,
FG consumable stores and receivables, with 25 % Margin.
Conclusion
The proprietor Mr. T G Naik, is
having rich experience in running industrial unit for the past two decades. He
is having contacts in Auto / Engineering industries, will be responsible for
all the technical matters as well as business development.
The party is presently dealing
with Rupee Bank enjoying Cash Credit limit of Rs. 3.000 Millions and Term Loan
liability with present balance of Rs. 3.000 Millions, Rupee Bank is a
financially wear Bank and has not been able to meet genuine credit requirement
of the unit. In view of this, the party has decided to shift its banking to a
nationalized bank who can respond to the credit requirement of the unit in a
timely manner.
The unit is presently carrying out
machining operation of various engineering jobs from rented premises at
Landewadi, Bhosari, Currently the unit is purchasing its forging requirements
of about 100 MTs per month from Ahmednagar Forging. The unit is required to
depend on the forging supplier company for timely supply of forgings. It will
be advantageous for any machine ship to have its own forging facility, so that
timely supply can be ensured and as well as the margins can be improved.
Keeping this in mind the
proprietor has decided to acquire a ready built forging unit having 2400 MTs
capacity, from Swastik Stampings Private Limited, Chakan. The total
consideration agreed between the parties is Rs. 32.500 Millions. This forging
activity will complement the Machining activity and it will be convenient for
the unit to supply fully machined forgings to the end user. The unit has taken
possession of this unit by paying taken amount and trial production is being taken.
The documentation formalities will be completed in due course while making
payment of the agreed amount.
The total term loan requirement of
the unit is Rs. 31.800 Millions inclusive term loan balance with Rupee Bank.
Further enhanced working capital limit of Rs. 13.200 Millions is required to
achieve the projected business growth.
The industrial climate in the
country is in healthy condition and manufacturing sector is doing well. On
account of this, the demand for the engineering parts is increasing day to day
and the engineering industry is doing well. Further the industrial belt of
Chakan is on a robust growth path as may automobile MNCs are establishing their
set up in this area. The party has very good experience and contacts in the
automobile and engineering industries and will not face difficulty in
developing the market the unit has projected a net sales turnover of Rs.
140.612 Millions during 2008-09 and Rs. 170.718 Millions during next FY
2009-10. the projected level of business is estimated on conservative basis and
the same is well within reach.
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 and working capital facilities.
Notes on Profitability Statements
- The party has taken possession of Forging
unit and trail run is progress. During current financial year 10 months
production – has been considered while estimating sales turnover for
forging division. During the current year 70 % capacity utilization has
been considered.
- The existing machining division is
expected to growth at 20 % during current year. For subsequent years it is
assumed that the sales of this division will increase by Rs. 20.000
Millions every year.
- It may take 3 months time for
stabilization of entire activity and hence, repayment holiday of 3 months
has been sought from the date of release and it has been proposed to
commence the repayments from October 2008. Interest during moratorium
period has been provided in the P/L of current year.
- The major portion of forgings
manufactured will be machined at Machining division, before supplying to
the end user. The surplus forgings will be directly sold to the outside
parties.
The
current level of forging requirement of the unit is estimated to be 1080 MT per
annum. Considering 20 % increase in machining division sales turnover additional
requirement of forging will be to an extent of 240 MTs. keeping this in view,
forging requirements for current year is estimated to be 1320 MTs Furhter
increase in self consumption of forgings is estimated in line with increase in
sales of machining division as under:
|
Particulars |
Projected |
||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
Capacity [MTs] |
3000.00 |
3000.00 |
3000.00 |
3000.00 |
3000.00 |
|
Capacity Utilization |
70.00 % |
70.00 % |
80.00 % |
90.00 % |
90.00 % |
|
Production [MTs] |
1725.00 |
2100.00 |
2400.00 |
2700.00 |
2700.00 |
|
Less : Forgings for sell
consumption |
1320.00 |
1540.00 |
1780.00 |
2000.00 |
2230.00 |
|
Production for outside Clients |
405.00 |
560.00 |
620.00 |
700.00 |
470.00 |
- In their estimates year to year increase
in prices has not been considered in cost of raw material, consumables,
electricity and other costs. Similarly the sales price has been considered
to be same through out. These estimates are prepared on conservative basis
keeping in view the promoters experience in the line and the same are
achievable.
- Various other items of expenditure are
projected at reasonable level taking into account actual level of
consumption and promoter’s experience.
- The interest on Term Loan of Rs. 31.800
millions is calculated @ 13.00 % p.a. on average balance. Interest on cash
credit is calculated @ 13.00 % p.a.
- The depreciation is estimated on WDV
basis as per the IT act
- Income Tax is calculated as per the I.T.
Rules applicable to proprietorship firm. Presently assumed IT rate is @ 30
%.
ASSUMPTION FOR PROJECTED FINANCIALS
|
Installed Capacity -
Machining Division -
Forging Division |
Not Ascertainable 3000 MTs p. a. |
|
|
|
|
Operating Capacity -
Machining Division -
Forging Division |
Not Ascertainable 70 % during 2008-09 and 2009-10 10 % increase every year
thereafter [max of 90 %] |
|
|
|
|
Sales turnover -
Machining Division -
Forging Division |
20 % increase in sales during
2008-09 and 20 Millions thereafter. Forgings produced over and above
self consumption will be sold to the outside parties, at estimated sales
price of Rs. 0.065 Millions per MT |
|
|
|
|
Raw material consumption |
Rs. 0.042 per MT |
|
|
|
|
Processing charges |
11 % of gross sales of machining
division |
|
|
|
|
Electricity -
Machining Division -
Forging Division [Electricity] [Furnace
Oil] |
0.7 % of gross sales of
machining division Rs. 1250 per MTs production Rs. 3750 Per MTs Production |
|
|
|
|
Labour / Wages -
Machining Division -
Forging Division |
3.0 % of gross sales of
machining division Rs. 1750 per MTs production |
|
|
|
|
Repairs and maintenance |
On realistic basis |
|
|
|
|
Other manufacturing Expenses -
Machining Division -
Forging Division Heat
Treatment Shot
Blasting |
1.0 % of gross sales of chining
division Rs. 3000 per MTs production Rs. 1000 per MTs Production |
|
|
|
|
Depreciation |
WDV method as IT act |
|
|
|
|
Interest on WC |
13.00 % p.a. |
|
|
|
|
Interest on Term Loan |
13.00 % p.a. on avg. balance |
|
|
|
|
Sales and Admn. Expenses |
3 % of Net Sales |
|
|
|
|
Non operating Income |
Nil |
|
|
|
|
Tax |
30 % of taxable profit, after
allowing depreciation as per IT act |
|
|
|
|
Raw Material |
1 Months consumption |
|
|
|
|
Stores / Spares |
Nil |
|
|
|
|
Work in Process |
Nil |
|
|
|
|
Finished Goods |
Nil |
|
|
|
|
Receivables |
1.50 months Gross Sales |
|
|
|
|
Creditors for Purchases |
1.00 Months Purchases |
Estimation of Installed Capacity in MTs for Forging Activity
|
Machineries |
Approx. Net Weight of Forging [In Kgs] |
No. of Pcs. Per Minute |
Out Put Per minute [In Kgs] |
Out Put Per Hour [In MTs] |
Out Put Per Day [In MTs] |
Efficiency at 90.00 % [In MTs] |
Out Put Per Month [In MTs] |
Out Put Per Year [In MTs] |
|
|
|
|
|
|
|
|
|
|
|
1 MT Hammer |
1.50 |
2.00 |
3.00 |
0.18 |
4.32 |
3.89 |
101.09 |
1213.06 |
|
|
|
|
|
|
|
|
|
|
|
1.25 MT Hammer |
3.00 |
1.00 |
3.00 |
0.18 |
4.32 |
3.89 |
101.09 |
1213.06 |
|
|
|
|
|
|
|
|
|
|
|
0.50 MT Hammer |
0.75 |
2.00 |
1.50 |
0.09 |
2.16 |
1.94 |
50.54 |
606.53 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
3032.64 MT |
Rs in
millions
|
Particulars |
Projected |
||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
Fresh Term Loan |
|
|
|
|
|
|
Loans taken during the year > |
31.800 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Loans repaid : Term Loan |
[1.800] |
[4.800] |
[6.000] |
[8.400] |
[10.800] |
|
|
|
|
|
|
|
|
Total Repayments during the year
|
[1.800] |
[4.800] |
[6.000] |
[8.400] |
[10.800] |
|
|
|
|
|
|
|
|
Closing Balance |
30.000 |
25.200 |
19.200 |
10.800 |
0.000 |
|
|
|
|
|
|
|
|
Interest for the year [13.00 %
p.a.] |
3.615 |
3.588 |
2.886 |
1.950 |
0.702 |
|
RATIOS
|
|||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
|
|
|
|
|
|
|
Operating Profit Margin [PBDIT] |
0.15 |
0.15 |
0.15 |
0.15 |
0.14 |
|
Return on Capital Employed
[ROCE] |
0.23 |
0.31 |
0.35 |
0.40 |
0.41 |
|
Current Ratio [without considering TL instl] |
1.35 |
1.74 |
2.43 |
3.13 |
3.31 |
|
Current Ratio [Considering TL instl due within
one year] |
1.03 |
1.29 |
1.58 |
1.78 |
3.31 |
|
Debt Equity Ratio |
1.49 |
0.92 |
0.53 |
0.26 |
0.05 |
|
|
|
|
|
|
|
|
TOL/ TNW |
2.33 |
1.52 |
0.90 |
0.52 |
0.27 |
|
|
|
|
|
|
|
|
Debtors collection period [days] |
46.00 |
46.00 |
46.00 |
46.00 |
46.00 |
|
RM holding period [days] |
30.00 |
30.00 |
30.00 |
30.00 |
30.00 |
|
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 |
PROJECTED SUMMARISED BALANCE SHEET
Rs in
Millions
|
Particulars |
Projected |
||||
|
|
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Shares Capital |
9.211 |
9.211 |
9.211 |
9.211 |
9.211 |
|
|
|
|
|
|
|
|
Reserve and Surplus |
14.613 |
22.794 |
33.662 |
46.037 |
54.982 |
|
|
|
|
|
|
|
|
Term loans |
30.000 |
25.200 |
19.200 |
10.800 |
0.000 |
|
|
|
|
|
|
|
|
Bank Borrowings for W C |
13.200 |
11.000 |
6.500 |
3.700 |
3.000 |
|
|
|
|
|
|
|
|
Unsecured Loans |
3.400 |
3.400 |
3.400 |
3.400 |
3.400 |
|
|
|
|
|
|
|
|
Vehicles Loan and other T L |
2.174 |
0.888 |
0.170 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Total |
72.598 |
72.493 |
72.143 |
73.148 |
70.593 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Block |
70.133 |
70.133 |
70.133 |
70.133 |
70.133 |
|
|
|
|
|
|
|
|
Depreciation |
19.339 |
24.576 |
29.055 |
32.886 |
36.166 |
|
|
|
|
|
|
|
|
Net Block |
51.976 |
46.739 |
42.260 |
38.429 |
35.149 |
|
|
|
|
|
|
|
|
Investments |
0.500 |
0.500 |
0.500 |
0.500 |
0.500 |
|
|
|
|
|
|
|
|
Net Current Assets |
20.032 |
25.154 |
29.273 |
33.367 |
34.034 |
|
|
|
|
|
|
|
|
Cash and Bank Balance |
0.090 |
0.100 |
0.110 |
0.852 |
0.910 |
|
|
|
|
|
|
|
|
Total |
72.598 |
72.493 |
72.143 |
73.148 |
70.593 |
ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
OPERATING STATEMENT
Rs in
Millions
|
Particulars |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
|
[Estimated] |
Projected |
|||
|
1. Gross Sales |
|
|
|
|
|
|
i] Domestic Sales |
115.799 |
135.799 |
155.799 |
175.799 |
195.799 |
|
ii]Labour Charges |
2.573 |
2.830 |
3.113 |
3.424 |
3.767 |
|
Iii]Sales [Forging] |
30.274 |
41.860 |
46.345 |
52.325 |
35.133 |
|
Total |
148.646 |
180.489 |
205.257 |
231.548 |
234.699 |
|
|
|
|
|
|
|
|
2. Less : Excise Duty |
8.034 |
9.771 |
11.118 |
12.547 |
12.701 |
|
|
|
|
|
|
|
|
3. Net Sales []1-2 |
140.612 |
170.718 |
194.139 |
219.001 |
221.998 |
|
|
|
|
|
|
|
|
4. % rise [+] or fall [-] in net
sales as compared to previous year |
46.41 % |
21.41 % |
13.72 % |
12.81 % |
1.37 % |
|
|
|
|
|
|
|
|
5. Cost of Sales |
|
|
|
|
|
|
i] Raw Materials [Including
stores and other items used in the process of manufacture] |
|
|
|
|
|
|
[a] Imported |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
[b] Indigenous |
70.492 |
87.062 |
99.743 |
112.349 |
113.319 |
|
Processing charges |
13.021 |
15.249 |
17.480 |
19.715 |
20.952 |
|
ii] Other Spares |
|
|
|
|
|
|
[a] Imported |
|
|
|
|
|
|
[b] Indigenous |
6.299 |
7.477 |
8.562 |
9.648 |
10.260 |
|
iii] Power and Fuel |
9.454 |
11.470 |
13.112 |
14.755 |
14.897 |
|
iv] Direct labour |
6.570 |
7.836 |
8.972 |
10.110 |
10.523 |
|
[Factory Wages and Salaries] |
|
|
|
|
|
|
v] Other Manufacturing Expenses |
9.084 |
10.986 |
12.489 |
14.092 |
14.396 |
|
vi] Depreciation |
6.133 |
5.237 |
4.479 |
3.831 |
3.280 |
|
|
|
|
|
|
|
|
vii] SUB TOTAL [i to iv] |
121.053 |
145.317 |
164.837 |
184.500 |
187.627 |
|
|
|
|
|
|
|
|
viii] Add : Opening Stocks – in
– process |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
121.053 |
145.317 |
164.837 |
184.500 |
187.627 |
|
|
|
|
|
|
|
|
ix] Deduct : Closing Stock – in
– Process |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
x] Cost of production |
121.053 |
145.317 |
164.837 |
184.500 |
187.627 |
|
|
|
|
|
|
|
|
xi] Add : Opening Stock of
finished goods |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Sub – total |
121.053 |
145.317 |
164.837 |
184.500 |
187.627 |
|
xii] Deduct: Closing Stock – in
- finished goods |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
xiii] SUB TOTAL [total cost of
sales] |
121.053 |
145.317 |
164.837 |
184.500 |
187.627 |
|
|
|
|
|
|
|
|
6. Selling general and
administrative expenses |
4.418 |
5.122 |
5.374 |
6.370 |
6.360 |
|
|
|
|
|
|
|
|
7. SUB – TOTAL [5+6] |
125.471 |
150.439 |
170.211 |
190.870 |
193.987 |
|
8. Operation profit before
interest [3-7] |
15.141 |
20.279 |
23.928 |
28.131 |
28.011 |
|
|
|
|
|
|
|
|
9. Interest |
5.609 |
5.021 |
3.688 |
2.453 |
0.946 |
|
10. Operating profit after
interest [8-9] |
9.532 |
15.258 |
20.240 |
25.679 |
27.065 |
|
11. i] Add : other non-operating
income |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Sub – total [Income] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
ii] Deduct other non-operating
expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Sub total [Expenses] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
iii] Net of other non-operating
income / expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
12. Profit before tax / Loss
[10+11[iii]] |
9.532 |
15.258 |
20.240 |
25.679 |
27.065 |
|
13. Provision for taxes |
2.860 |
4.577 |
6.072 |
7.704 |
8.120 |
|
|
|
|
|
|
|
|
14. Net profit / loss [12-13] |
6.672 |
10.681 |
14.168 |
17.975 |
18.945 |
|
|
|
|
|
|
|
|
15 [a] Withdrawal |
0.600 |
2.500 |
3.300 |
5.600 |
0.000 |
|
[b] Dividend Rate |
|
|
|
|
|
|
16. Retained profit [14-15] |
6.072 |
8.181 |
10.868 |
12.375 |
18.945 |
|
17. Retained profit / Net profit
[%] |
91% |
77% |
77% |
69% |
100% |
ANALYSIS OF BALANCE SHEET
Rs. In
Millions
|
Particulars |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
2012-13 |
|
|
[Estimated] |
Projected |
|||
|
CURRENT LIABILITIES |
|
|
|
|
|
|
01 Short – Term borrowings from
banks [including bill purchased, discounted and excess borrowings placed on
repayment basis] |
|
|
|
|
|
|
I] From applicant Bank |
13.200 |
11.000 |
6.500 |
3.700 |
3.000 |
|
II] From other banks |
|
|
|
|
|
|
III] [of which BP and BD] |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub Total [A] |
13.200 |
11.000 |
6.500 |
3.700 |
3.000 |
|
|
|
|
|
|
|
|
02 Short Term borrowings from
others |
|
|
|
|
|
|
03 Sundry creditors [Trade] |
5.874 |
7.255 |
8.312 |
9.362 |
9.443 |
|
04 Advance payments from
customers |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
liabilities for expenses |
0.700 |
0.770 |
0.847 |
0.932 |
1.025 |
|
05 Provision for tax [net of Tax
paid] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
06 Dividend and Dividend Tax
payable |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
07 other statutory liabilities
[due within one year] |
0.254 |
0.279 |
0.307 |
0.338 |
0.372 |
|
08 Deposits / Installments of
term loans / DPGs / debentures, etc [due within one year] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
09 Other current liabilities and
provisions [due within one year] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Sub – Total [B] |
6.828 |
8.304 |
9.466 |
10.632 |
10.840 |
|
10 TOTAL CURRENT LIABILITIES
[Total of 1 to 9] |
20.028 |
19.304 |
15.966 |
14.332 |
13.840 |
|
|
|
|
|
|
|
|
11 Debentures [not maturing
within one year] |
|
|
|
|
|
|
12 Term loans [excluding install
stalments payable within one year] |
|
|
|
|
|
|
a. Fresh Term Loan |
30.000 |
25.200 |
19.200 |
10.800 |
0.000 |
|
b. Existing Term Loan [Rupee BK] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
c. Electronica Finance Limited |
0.804 |
0.213 |
0.000 |
0.000 |
0.000 |
|
d. Other Unsecured Loans |
3.400 |
3.400 |
3.400 |
3.400 |
3.400 |
|
e. Vehicle Loans |
0.190 |
0.000 |
0.000 |
0.000 |
0.000 |
|
f. Personal Loans |
1.180 |
0.675 |
0.170 |
0.000 |
0.000 |
|
13 Deferred Payment Credits
excluding installments due within |
|
|
|
|
|
|
14 Term deposit [repayable after
one year] |
|
|
|
|
|
|
15 other Term Liabilities
Retirement Benefits |
|
|
|
|
|
|
17 TOTAL TERM LIABILITIES [Total of 11 to 16] |
35.574 |
29.488 |
22.770 |
14.200 |
3.400 |
|
18 TOTAL OUTSIDE LIABILITIES [10
+ 17] |
55.602 |
48.792 |
38.736 |
28.532 |
17.240 |
|
|
|
|
|
|
|
|
NET WORTH |
|
|
|
|
|
|
19 Ordinary Share Capital |
9.211 |
9.211 |
9.211 |
9.211 |
9.211 |
|
20 General Reserve |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
21 Revaluation Reserve |
|
|
|
|
|
|
22 Other Reserves |
|
|
|
|
|
|
Investment all Reserve |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Subsidy |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
[excluding provisions] |
|
|
|
|
|
|
23 Surplus [+] or deficit [-] in
Profit and Loss Account |
14.613 |
22.794 |
33.662 |
46.037 |
54.982 |
|
|
|
|
|
|
|
|
24 NET WORTH |
23.824 |
32.005 |
42.873 |
55.248 |
64.193 |
|
25 TOTAL LIABILITIES [18+24] |
79.426 |
80.797 |
81.609 |
83.780 |
81.433 |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
26 Cash and Bank Balance |
0.090 |
0.100 |
0.110 |
0.852 |
0.910 |
|
27 Investments [Other than long
term investments] |
|
|
|
|
|
|
I] Government and other Trustee
securities |
|
|
|
|
|
|
II] Fixed deposit with bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
28 I] Receivables other than
deferred and exports [Including bills purchased and discounted by banks] |
18.581 |
22.561 |
25.657 |
28.944 |
29.337 |
|
II] Export receivables
[Including bills purchased / discounted by banks] |
|
|
|
|
|
|
29 Instalments of Deferred receivables [due within one year] |
|
|
|
|
|
|
30 Inventory |
|
|
|
|
|
|
I] Raw materials [Including
stores and other items used in the process of manufacture] |
|
|
|
|
|
|
Imported |
|
|
|
|
|
|
Indigenous |
5.874 |
7.255 |
8.312 |
9.362 |
9.443 |
|
II] Stock – in – process |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
II] Finished Goods |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
IV] Other consumable spares |
|
|
|
|
|
|
Imported |
|
|
|
|
|
|
Indigenous |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
31 Advances recordable in Cash
or kind |
0.300 |
0.400 |
0.500 |
0.600 |
0.700 |
|
32 Advance payment of taxes
[NET] |
1.405 |
2.342 |
3.170 |
3.793 |
3.894 |
|
33 Excise and Sales Tax Refund |
0.400 |
0.500 |
0.600 |
0.700 |
0.800 |
|
Other current assets |
0.300 |
0.400 |
0.500 |
0.600 |
0.700 |
|
34 TOTAL CURRENT ASSETS [Total
of 26 to 33] |
26.950 |
33.558 |
38.849 |
44.851 |
45.784 |
|
35 Gross Block [Land and
Building Machinery, Work in Progress ] |
70.133 |
70.133 |
70.133 |
70.133 |
70.133 |
|
|
|
|
|
|
|
|
36. Depreciation to date |
19.339 |
24.576 |
29.055 |
32.886 |
36.166 |
|
Add : Advance paid for flat |
1.182 |
1.182 |
1.182 |
1.182 |
1.182 |
|
37 NET BLOCK [35-36] |
51.976 |
46.739 |
42.260 |
38.429 |
35.149 |
|
|
|
|
|
|
|
|
OTHER NON – CURRENT ASSETS |
|
|
|
|
|
|
38 Investments / book / debts /
advances / deposits which are not Current Assts |
|
|
|
|
|
|
I] [a] Investments in subsidiary
companies / affiliates |
|
|
|
|
|
|
[b] Shares of Co-Operative Bank |
0.243 |
0.243 |
0.243 |
0.243 |
0.243 |
|
II] Advances to suppliers of
capital goods and contractors |
|
|
|
|
|
|
III} Deferred receivables
[maturity exceeding one year] |
|
|
|
|
|
|
IV] Others [Electronica] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
39 Security deposit |
0.257 |
0.257 |
0.257 |
0.257 |
0.257 |
|
40 Other non – current assets
including dues from directors |
|
|
|
|
|
|
|
|
|
|
|
|
|
41 TOTAL OTHER NON – CURRENT
ASSETS [total of 38 to 40] |
0.500 |
0.500 |
0.500 |
0.500 |
0.500 |
|
42 Intangible assets [Patents,
goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.] |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
43 TOTAL ASSETS Total of 34, 37, 41 and 42 |
79.426 |
80.797 |
81.609 |
83.780 |
81.433 |
|
44 TANGIBLE NET WORTH [24-22] |
23.824 |
32.005 |
42.873 |
55.248 |
64.193 |
|
45 NET WORKING CAPITAL |
|
|
|
|
|
|
[17 + 24]-[37+41+42] |
6.922 |
14.254 |
22.883 |
30.519 |
31.944 |
|
to tally with [34-10] |
6.922 |
14.254 |
22.883 |
30.519 |
31.944 |
|
|
|
|
|
|
|
|
46 Current Ratio [Items 34/10] |
1.35 |
1.74 |
2.43 |
3.13 |
3.31 |
|
|
|
|
|
|
|
|
47 Total Outside Liabilities / Tangible
Net Worth [18/44] |
0.233 |
0.152 |
0.090 |
0.052 |
0.027 |
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Motor Vehicle
- Tools and Equipments
- Office Equipments
- Furniture and Fixture
- Computer
- Plastic Tray
- Stores and Racks
- Air Conditions
- Generator Set
- Stabilizers
- Tea Machine
- Tools and Equipments
- Bajaj Calibar
- Bajaj Pickup Van
- Car Swift
- Car WagonR
- Cycle
- Hero Honda
- Maruti Van
- Maruti Zen
- Minidoor Piaggio Tempo
- Electricals Installation
MR.
TUKARAM G NAIK [GOA]
PERSONAL
BALANCE SHEET
[Harshal
M. Oswal – Chartered Accountants]
Rs In Millions
|
SOURCES OF FUNDS |
|
|
31.03.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
0.643 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
0.000 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
0.643 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
2.308 |
|
|
2] Unsecured Loans |
|
|
0.000 |
|
|
TOTAL BORROWING |
|
|
2.308 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2.951 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
2.816 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
0.000 |
|
|
Sundry Debtors |
|
|
0.000 |
|
|
Cash & Bank Balances |
|
|
0.021 |
|
|
Other Current Assets |
|
|
0.056 |
|
|
Loans & Advances |
|
|
0.150 |
|
Total
Current Assets |
|
|
0.227 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
|
0.080 |
|
|
Provisions |
|
|
0.012 |
|
Total
Current Liabilities |
|
|
0.092 |
|
|
Net Current Assets |
|
|
0.135 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
2.951 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2007 |
|
|
Hire Charges Received |
|
|
0.573 |
|
|
Other Income |
|
|
0.056 |
|
|
Total Income |
|
|
0.629 |
|
|
|
|
|
|
|
|
Net (Loss) |
|
|
[0.184] |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Repairs and Maintenance |
|
|
0.007 |
|
|
Salary – Driver |
|
|
0.096 |
|
|
Depreciation |
|
|
0.497 |
|
|
Interest on Term loan |
|
|
0.208 |
|
|
Travelling and Conveyance |
|
|
0.005 |
|
Total Expenditure |
|
|
0.813 |
|
KEY RATIOS
|
PARTICULARS |
|
|
|
31.03.2007 |
|
PAT / Total Income |
(%) |
|
|
[29.25] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
|
[32.11] |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
|
[6.05] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
|
[0.29] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
|
3.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
|
2.47 |
AS PER WEBSITE
Profile
Concern is established in 1985 at
Pune, is a regular supplier to Bajaj Auto Limited, and Telco. Mr. T.G. Naik is
the proprietor of the company.
They manufacture turned parts
required for auto industries. They have a Gear Cutting and Copy turning shop of
an area about 1000 Sq.ft., CNC Grinding Shop of 1000 Sq.ft., Inspection and
office of 800 Sq.ft. they have one more works unit of 10000 Sq.ft.
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] 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.42.84 |
|
UK Pound |
1 |
Rs.84.78 |
|
Euro |
1 |
Rs.67.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
57 |
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 |
|