Submitted By:Jaspreet Singh

Manager (Credit)PF No 304701

Firm Name : M/s Super Agencies Business : The firm had been engaged in the

business of trading in Industrial gases and welding material & accessories. Now the firm is putting up a manufacturing plant to manufacture industrial gases at the present location.

Constitution : Partnership Firm Rating : A Existing Facilities : CC Limit of 35 Lac. Proposed Facilities : Term Loan of 93 Lac.

M/s Super Agencies, a partnership concern was established in 1976. The partnership was reconstituted in the year 1998 and since then the firm is having two partners. Both the partners are sharing profit and losses of the firm equally. The firm had been engaged in the business of trading in Industrial gases and welding material & accessories. Now the firm is putting up a manufacturing plant to manufacture industrial gases at the present location.

Land Owned

Building Renovation 16.00

Plant and Machinery 124.64

Misc. Fixed Assets 1.50

Lab Equipments 1.00

Security 5.50

Working Capital 1.00

TOTAL 149.64

Sources

Term Loan 93.00

Capital 49.75

USL 6.89

TOTAL 149.64

Activity Starting Date Completion DateBuilding October 2010 28 Feb 2011Advance for Machinery

Already given

Arrival of Machinery

28th Feb 2011

Installation 28th Feb 2011Trial Run March 2011Commercial Production

April 2011

5 Years repayable in 60 equal monthly installments of Rs.1.55 Lacs each starting w.e.f April 2011.

Documents Submitted With Proposal: Photocopies of Quotations of plant & Machinery. Photocopies of Audited B/S of Super Agencies

(Promoter Firm) Demand Notice regarding required power

connection Consent from pollution control committee Approval from chief controller of explosion Photocopy of SSI Registration ITRs of previous years

The firm is engaged in trading of industrial gases such as Oxygen, CO2, D.A, Argon, Nitrogen, Hydrogen, and Helium. The party has requisite explosive license to store the gasses. There is no dearth of buyers as the party has established business for more than 35 years and with the industrialization, the demand is rising day by day.

After Getting Satisfactory CIBIL reports of partners and firm the TEV Study was completed on 20th January 2011. As per the report the proposed unit of oxygen is technically feasible and economically viable. The details of TEV Study is as follows

Water As per the TEV study the unit will require water for drinking and for chiller plant, water will be available through tap water supplied by the Chandigarh Public health.

Quality ControlThe product shall meet the required specification, required in the domestic and industrial market of gases

Manpower The unit will employ skilled workers, semiskilled workers unskilled workers. Besides this, persons who are technically qualified and experienced shall be appointed to suitable positions. Party is having vast experience in trading of industrial gases and all the partners are educated and they will manage the manpower without any hindrance.

POWER The Unit will require 274 KW power load and Chandigarh administration has issued demand notice for 274.78 KW power load to the unit. Power shall be made available to the unit after the completion of the civil work.

 

Raw Material The unit will require only atmospheric air and spares of the plant for which party will not face any problem as air is available free and spares are to be arranged from the plant supplier. The requirement of spares is essential for the smooth working of the plant.

Financial Analysis : Sales

The sales of the firm as at 31.03.08 was Rs 333.55 lacs & it has increased to Rs 385.96 lac. The sales has slightly declined to Rs 376.26 lacs due to short supply from suppliers. The party has projected sales of Rs 413.88 lac for the current financial year and achievement of sales of Rs. 322.49 lac up to 31.12.2010

ProfitabilityThe profit of the firm was Rs 5.62 lacs as at 31.03.08 & it has increased to Rs 11.59 lacs as at 31.03.09.The profit as at 31.03.10 has declined to Rs 8.28 lacs. The decline in the same is due to high level of depreciation

Other incomeThe party is having other income in the shape of cylinder receipts/Misc Income & bank charges recovered from buyers

Current ratio/Debt Equity RatioThe Current ratio is above bench mark level for the last three years. The ratio has declined slightly but is above bench mark level. The decline is due to availing bank limit

Debt Equity RatioThe debt equity ratio as at 31.03.08 was 2.91 and it has declined to 1.34 as at 31.03.09 & further to 1.24 as at 31.03.10.The DER is satisfactory

Net Working CapitalThe net working capital of the firm was Rs 33.31 lacs as at 31.03.08. It has increased to Rs 45.21 lac as at 31.03.09.The NWC has declined to Rs 39.79 lacs during the year ended 31.03.10.The decline is on account of investment of funds toward acquiring fixed assets for the firm.Overall financial position is satisfactory

Stand Alone Project

Debt-Equity Ratio 2.35:1

Average DSCR 1.73:1

Minimum DSCR 1.34:1

The affairs of the business are managed by both the partners actively and they don’t have any other business interest. Both the partners are being helped by their sons in the business. The party has requisite support staff.

Primary :Hypothecation of plant and machinery worth Rs.

127.14 lacs. Collateral :# 902 Sector 2 Panchkula (Realizable value 175

lac) Personal Guarantee :Madhu Gupta (Wife of one of the partners)Net Means : 84.80 lac

After Loan Approval Plan layout of building Undertaking (acceptance of terms & conditions) Title deeds of property Hypothecation of moveable assets Term loan agreement Agreement of Guarantee

A Rating The party has its own premises. Both the partners are well experienced

and running the trading activity successfully for last more than 36 years.

Party has an established market High demand of gases in market Availability of raw material, power and

customers nearby.

Partners have no experience in mfg. of gases although they are in trading of gases for long time.

High cost of manufacturing equipment.

The main observation points in the sanction of loan were

A rating Conduct of CC account The securities offered TEV Study