MIRA INFORM REPORT

 

 

 

 

Report Date :

28.12.2013

 

IDENTIFICATION DETAILS

 

Name :

INDO FARM EQUIPMENT LIMITED

 

 

Formerly Known As :

WELCUT TOOLS PRIVATE LIMITED

 

 

Registered Office :

SCO 859, NAC Kalka Road, Manimajra-160101, Chandigarh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

05.10.1994

 

 

Com. Reg. No.:

16-15132

 

 

CIN No.:

[Company Identification No.]

U29219CH1994PLC015132

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

PTLI10730G

 

 

PAN No.:

[Permanent Account No.]

AAACW1982A

 

 

Legal Form :

A Closely Held Public Limited Liability Company.

 

 

Line of Business :

Manufacturer and Exporter of
Power Generators Alternators and Cranes Forklifts.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

SCO 859, NAC Kalka Road, Manimajra-160101, Chandigarh, India

Tel. No.:

91-172-2736901/ 2736974

Fax No.:

91-172-2734913

E-Mail :

mail@indofarm.in

Website :

http://www.indofarm.in

 

 

Head Office/ Factory :

Export Promotion Industrial Park, Phase-II, Baddi-173205, Solan, Himachal Pradesh, India

Tel. No.:

91-1795-274241 (8 Lines)

Fax No.:

91-1795-274308-309

 

 

DIRECTORS

 

Name :

Mr. R S Khadwalia

Designation :

Chairman cum Managing Director

Address :

H. No. 102, Sector 6, Panchkula-134109, Haryana, India

Date of Birth/Age :

31.10.1960

Date of Appointment :

01.07.2008

 

 

Name :

Ms. Sunita Saini

Designation :

Whole Time Director

Address :

H. No. 102, Sector 6, Panchkula-134109, Haryana, India

Date of Birth/Age :

09.06.1969

Date of Appointment :

01.01.2009

 

 

Name :

Mr. S P Mittal

Designation :

Director

Address :

H. No. 334, Sector 10, Panchkula-134109, Haryana, India

Date of Birth/Age :

15.04.1959

Date of Appointment :

05.10.1994

 

 

Name :

Mr. Mewa Singh Turan

Designation :

Director

Address :

E 6, University Campus, Guru  Jambheshwar University, Hissar-125001, Himachal Pradesh, India

Date of Birth/Age :

15.04.1957

Date of Appointment :

16.04.2006

 

 

Name :

Mr. Raghbir Singh

Designation :

Director

Address :

H. No. 289, Mansa Devi Complex, Sector -4, Panchkula-134114, Haryana, India

Date of Birth/Age :

12.06.1937

Date of Appointment :

16.04.2006

 

 

Name :

Mr. Yogesh Chander Aggarwal

Designation :

Director

Address :

# 838, Sector 2, Panchkula-134109, Haryana, India

Date of Birth/Age :

01.11.1947

Date of Ceasing :

15.01.2009

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

R S Khadwalla

 

6009000

Sunita Saini

 

1699120

S P Mittal

 

109990

Futuristic Mining and Construction Solutions Limited, Chandigarh, India

 

1092990

K and A Forge Limited, Chandigarh, India

 

91800

Nirmal Mittal

 

40000

Preeti Mittal

 

21000

Attar Singh Saini

 

2000

Ritu Saini

 

2000

Total

 

9067900

 

Equity Share Breakup (Percentage of Total Equity)

As on 25.09.2010

 

Category

 

Percentage

Bodies corporate

13.07

Directors or relatives of Directors

86.93

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of
Power Generators Alternators and Cranes Forklifts.

 

 

Products :

Product Description

ITC Code

Agricultural Tractor

87019090

Agricultural Tractor

87019090

Mobile Cranes

84261200

Mobile Cranes

84261200

Power Generation Set

85021100

 

 

GENERAL INFORMATION

 

Bankers :

Canara Bank, SCO 255-256, Sector 44C, Chandigarh-160047, India

 

 

Facilities :

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Borrowings for working Capital From Bank (1)

267.656

293.355

Term Loans form Bank (2)

5.871

20.397

Against Hire Purchase (3)

5.241

2.580

Total

278.768

316.332

 

Note :

 

a) Working Capital Loans from Canara Bank are secured by first charge by way of floating hypothecation on current assets being raw materials, work in process, finished goods and receivables of the Company (both present and future). Further secured by a charge on the entire fixed assets (present and future) of the company. These Loans are further secured by way of equitable mortgage of factory land and building at 104-105, Industrial Estate, Baddi and equitable mortgage of of leasehold rights of Industrial Plot at EPIP, Phase II, Industrial Estate, Baddi.

b) Term Loan from Canara Bank are secured by a first charge on the entire fixed assets of the Company (present and future).

c) Vehicle Loans from banks are secured against hypothecation of specific vehicles purchased out of the proceeds of those loans.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

 Datta Singla and Company

Chartered Accountant

Address :

SCO 2935-36, Level 1, Sector  22C, Chandigarh-16022, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15000000

Equity Shares

Rs. 10/- each

Rs. 150.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9067900

Equity Shares

Rs. 10/- each

Rs. 90.679 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

90.679

90.679

90.679

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1009.842

852.997

831.951

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1100.521

943.676

922.630

LOAN FUNDS

 

 

 

1] Secured Loans

278.768

316.332

402.026

2] Unsecured Loans

0.000

0.000

50.047

TOTAL BORROWING

278.768

316.332

452.073

DEFERRED TAX LIABILITIES

46.618

41.652

36.650

 

 

 

 

TOTAL

1425.907

1301.660

1411.353

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

451.533

402.747

405.334

Capital work-in-progress

3.610

10.785

7.464

 

 

 

 

INVESTMENT

0.215

0.215

0.035

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

454.246

399.112

305.078

 

Sundry Debtors

535.117

580.089

813.914

 

Cash & Bank Balances

23.478

30.283

67.923

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

160.348

109.788

108.262

Total Current Assets

1173.189

1119.272

1295.177

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

124.918

136.109

182.980

 

Other Current Liabilities

39.833

67.024

88.053

 

Provisions

37.889

28.226

25.622

Total Current Liabilities

202.640

231.359

296.655

Net Current Assets

970.549

887.913

998.520

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1425.907

1301.660

1411.353

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1229.722

661.083

1170.007

 

 

Other Income

65.265

69.047

36.538

 

 

TOTAL                                     (A)

1294.987

730.130

1206.545

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Materials, Finished and Semi Finished Goods

801.947

429.655

796.597

 

 

Manufacturing, administrative and other expenses

143.935

83.175

90.863

 

 

Personnel Expenses

103.079

95.489

91.637

 

 

Prior period adjustment

0.818

[4.058]

0.621

 

 

TOTAL                                     (B)

1049.779

604.261

979.718

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

245.208

125.869

226.827

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

35.086

50.426

36.249

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

210.122

75.443

190.578

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

28.649

26.817

25.705

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

181.473

48.626

164.873

 

 

 

 

 

Less

TAX                                                                  (I)

8.716

6.362

12.184

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

172.757

42.264

152.689

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

13.602

--

0.000

 

 

Tax on Interim Dividend

2.312

--

0.000

 

 

Proposed dividend

--

18.136

13.602

 

 

Tax on corporate dividend

--

3.082

2.312

 

 

Transfer to General reserve

10.000

10.000

100.000

 

 

Proposed Dividend Reverses

--

--

[9.068]

 

 

Tax on proposed dividend Reversed

--

--

[1.541]

 

BALANCE CARRIED TO THE B/S

146.843

11.046

47.384

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

32.588

36.719

7.887

 

TOTAL EARNINGS

32.588

36.719

7.887

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1.227

10.420

0.225

 

 

Capital Goods

0.743

0.000

0.000

 

TOTAL IMPORTS

1.970

10.420

0.225

 

 

 

 

 

 

Earnings Per Share (Rs.)

19.05

4.66

16.84

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

13.34

5.79

12.66

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

14.76

7.36

14.09

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

11.17

3.19

9.70

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.14

0.05

0.18

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.44

0.58

0.82

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

5.79

4.84

4.37

 

 

LOCAL AGENCY FURTHER INFORMATION

 

BUSINESS PERFORMANCE:

 

During the fiscal year 2009-10, The Company has sold 2722 tractors as against 1561 tractors in the previous year registering a growth of 74%. Sales and operating income amounted to Rs. 1294.987 Millions as against Rs. 730.130 Millions in the previous year. The Tractor industry is gaining its strength gradually which has mitigated, to an extent, adverse impact of recession during period of 2007-08 and 2008-09.

 

Profit before interest and depreciation has also grown from Rs. 121.800 Millions, in the previous year to Rs. 246.000 Millions, registering an increase of 102%.

 

The company also produced 1723 M.T. of casting during the fiscal 2009-10 as against 934 M.T in the previous year and all the castings were Captively consumed.

 

The company has launched new products namely Forklift, Power Generation Sets and Hydraulic Motors and Cylinders.

 

During the financial year, the Company has exported 336 Engines/Blocks to different Countries and has generated revenue to the tune of Rs. 32.184 Millions in foreign currency.

 

EXPANSION:

 

During the year 2009-10, the Company has developed Hydraulic Mobile Pick and Carry Crane with a load capacity of 9, 11 tonne and fuel efficient Crane model Indo Power-12 tonne. All the models of Indo Power Pick and Carry Crane which were introduced in the market on trial basis received a tremendous response from all over the Country. Keeping in view the enthusiasm that market has shown in Company's Mobile Crane, The Company has established a new unit namely “Construction Equipment Division” which started the commercial production in March, 2010. The new unit i.e. “Construction Equipment Division” shall manufacture the different capacity and variant of Indo Power Pick and Carry Crane and Forklifts.

 

During the year 2009-10, The Company has added up Power Generation Sets in product line and successfully launched it in the domestic market. The company has established another independent Unit at the existing land at Baddi to manufacture of Power Generation Sets which has started the commercial production in March, 2010. The response to the product is overwhelming.

 

Keeping in view the growing demand of Indo Power Pick and Carry Crane in the construction Industry. The Company has decided to go for backward integration and established a “Hydraulic Division” at plot of the Company located at HPSIDC, Baddi. “Hydraulic Division” has also started the commercial production in March, 2010 and will manufacture Hydraulic Motors, Hydraulic Cylinder and Hydraulic Winches etc. The Production from this unit will cater to the requirements of the other units of the Company and will also help in substantially reducing the manufacturing cost of Mobile Cranes. These Products will also be sold independently in the open market.

 

Infrastructure and Power being the most potential areas, the Company is committed to striving hard to make it a great success by providing the best technology and consumer friendly products at competitive price.

 

Contingent Liabilities not provided for in respect of:

 

Particulars

31.03.2010

Rs. In Millions

a) Counter guarantee to banks

2.271

b) Bond Executed by the company in favour of DGFT

0.641

c) Claims against the company not acknowledged as debts

8.132

d) Excise matters in dispute

34.464

e) Industrial Relations matters under appeal

0.177

f) Consumer cases in dispute/under appeal

11.205

g) Sales Tax matters under appeal

(Sales tax assessment is completed upto assessment year 2004-05)

0.306

h) Income tax assessment is completed upto assessment year 2007-08 and demand is

8.465

I) Bill Discounting

16.775

 

As per Export Promotion Capital Goods Scheme ('EPCG' or the 'scheme'), the Company is required to meet cumulative export obligations of Rs. 34.205 Millions (Previous year - Rs. 41.125 Millions) over a period of eight years from the date of issuance of respective licences under the scheme. In accordance with such Scheme, the Company may import capital goods on payment of concessional duties and has executed agreements and bonds amounting to Rs. 1.191 Millions (Previous year- Rs. 0.550 Million in favour of the Deputy Commissioner of Customs, Government of India. The Company has outstanding export obligations of Rs. 34.205 Millions (Previous year – Rs. NIL) under the EPCG Scheme as on the reporting date. The cumulative value of concession/remission from payment of custom duty related to such imports aggregated to Rs. 4.278 Millions (Previous year - Rs. 5.258 Millions). The Company has executed legal undertakings where it may be required to pay customs duty/central excise duty levied and liquidated damages at applicable rates, in respect of imported and indigenous capital goods and stores and spares consumed duty free, in the event certain conditions are not fulfilled.

 

 

Bankers Charges Report as per Registry

 

 

Name of the company

INDO FARM EQUIPMENT LIMITED

Presented By

Mr. S P Mittal, Director

1) Date and description of instrument creating the change

Common hypothecation agreement dated 22.08.2000

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

Rs. 52.000 Millions

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of stocks of raw materials, finished goods in transit, goods in process, consumables, spares and book debts

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

OCC Rs. 52.000 Millions payable on demand against hypothecation of stocks of raw materials, finished goods, goods in transit, goods in process, consumable, spares and stores and book  debts, margin 25% on stocks and 40% on book debts. Interest @ 15.75%

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

Canara Bank, SCO 255-256, Sector 44C, Chandigarh-160047, India

6) Date  and brief description of instrument modifying the charge

Supplemental common hypothecation Agreement Dated 27.07.2005

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The modified limits are:

 

Fund based OCC Rs. 110.000 Millions

Non Fund Based FLC/ ILC Rs. 20.000 Millions

Term Loan Rs. 40.000 Millions

 

Other term and conditions remains the same.

 

 

Corporate identity number of the company

U29219CH1994PLC015132

Name of the company

INDO FARM EQUIPMENT LIMITED

Address of the registered office or of the principal place of  business in India of the company

SCO 859, NAC Kalka Road, Manimajra-160101, Chandigarh, India

This form is for

Modification of Charge

Charge identification number of the charge to be modified

 90312456

Type of charge

  • Immovable Property
  • Book Debts
  • Movable Property
  • Others

Particular of charge holder

Canara Bank, SCO 255-256, Sector 44C, Chandigarh-160047, India

Nature of instrument creating charge

Supplemental common hypothecation agreement, counter indemnity, letter of renewal, guarantee agreement, pronote, guarantee covering letter, documents deposit of title deeds

Date of instrument Creating the charge

29.09.2010

Amount secured by the charge

Rs. 490.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

For OCC/ ODBD: Base Rate + 3.00% = 11.00% p.a. (Floating) (Base Rate : 8.00%)

 

Terms of Repayment

On Demand

 

Margin

As per Agreement

 

Extent and Operation of the charge

100%

Short particulars of the property charged

I.                     Prime Securities for working capital limits: 1st charge on current assets viz. Raw Material, Work in process, Finished Goods, Spares and Receivables  of the company: Exclusive the charge (Hypothecation)

II.                   Prime Securities or Term Loan of Rs. 60.000 Millions: 1st Charge on entire fixed assets including following land and building of the company (present and future) by way of hypothecation and EMT:

Exclusive Charge.

 

A)      EMT of Factory Land and Building (free hold) at Plot no. 104-105, measuring 2646 sq.mts., phase I, HPSIDC, Industrial Area, Baddi, District Solan (H.P)

B)      EMT of lease hold rights of Industrial Plot No. 26 to 30, 69 to 73, 82 to 83, 89 to 99, Export Promotioin Indusrial Park, Phase II, Village Thanna, Baddi, District Solan, H.P Measuring 110775 sq.mtrs.

C)      EMT of Factory Building (Construction Equipment Division) to be constructed on existing plot at EPIP, Industrial Area, Phase II, Baddi And Project assets to be created out of TL.

III.                  Collateral Securities: Securities available as Prime Securities for term loan are available as collateral for working capital limits and vice versa.

Personal Guarantee: i) Personal Guarantee of Sh. R.S. Khadwalia worth Rs. 894.800 Millions (basis of Net worth NF 589 Dated 23.08.2010)

 

ii) Personal Guarantee of Smt. Suntia Saini worth Rs. 293.000 Millions (Basis of Net Worth: NF 589 Dated 23.08.2010)

iii) Personal Guarantee of Sh. S.P. Mittal Worth Rs. 50.600 Millions (Basis of Net Worth : NF 589 Dated 23.08.2010)

 

Corporate Guarantee: Corporate Guarante of Futuristic Mining and Construction Solutions Limited.

Particulars of the present modification

The limits are modified as below:

 

OCC = Rs. 340.000 Millions, sub limit ODBD (Rs. 200.000 Millions), Sub Limit PC = (Rs. 10.000 Millions), BULC/ FDB/ FBE/ BE = Rs. 50.000 Millions, Term Loan = Rs. 60.000 Millions, ILC = Rs. 35.000 Millions, Bank Guarantee = Rs. 5.000 Millions, Total Credit Facilities = Rs. 490.000 Millions.

 

 

Fixed Assets:

 

·         Freehold Land

·         Leasehold Land

·         Factory Building

·         Residential Building

·         Plant and Machinery

·         Electrical Installation

·         Tools and Dies

·         Office Equipments

·         Computers

·         Furniture and Fixtures

·         Vehicles

·         Office Building

·         Moulds

·         Patterns

 


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 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 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.62.06

UK Pound

1

Rs.102.03

Euro

1

Rs.85.27

 

 

INFORMATION DETAILS

 

Information Gathered by :

--

 

 

Report Prepared by :

SDA

 

 

 

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.