MIRA
INFORM REPORT
|
Report Date : |
26th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
PRABHU
SOAP WORKS |
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|
|
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Registered Office : |
3/A1,
Thayir Ittari Road, Kannappan Nagar, Rathinapuri (P. O), Coimbatore – 641027,
India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
1986 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBPO3124C |
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|
|
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Legal Form : |
A sole
proprietorship concern |
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|
|
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Line of Business : |
Manufacturers,
exporters and importers of detergent soaps and detergent powder. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
10000 |
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|
|
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed concern having satisfactory track.
Proprietor is reported as experienced and respectable businessman. His trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
3/A1,
Thayir Ittari Road, Kannappan Nagar, Rathinapuri (P. O), Coimbatore – 641027,
India |
|
Tel. No.: |
91-422-2331075
/ 531075 |
|
Fax No.: |
91-422-2331075
/ 532245 |
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E-Mail : |
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|
Website : |
http://www.arasansoap.com |
SOLE PROPRIETOR
|
Name : |
Mr.
Arul Singh |
|
Designation : |
Proprietor |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
exporters and importers of detergent soaps and detergent powder. |
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|
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|
Products : |
Soaps
and Detergent Powder |
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Brand Names : |
ARASAN |
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Imports from : |
China |
PRODUCTION
STATUS
|
Particulars |
Installed Capacity |
Actual Production |
|
Soaps and Detergent Powder |
10000 Tonnes per year |
8355 Metric per year |
GENERAL
INFORMATION
|
No. of Employees : |
Total 64 = In Office 4 + in factory 60 |
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|
|
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Bankers : |
Tamilnadu
Mercantile Bank Limited Coimbatore |
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Banking Relations : |
-- |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
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Owned : |
Rs.
2.500 millions |
|
Borrowed : |
-- |
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Total : |
Rs.
2.500 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
|
|
31.03.2005 |
|
Sales Turnover |
|
|
20.000 |
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|
|
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LOCAL AGENCY
FURTHER INFORMATION
Subject
imports chemicals.
Product
Range :
Detergent
Soaps – Arasan Soaps
- Yellow Detergent Cake
- Blue detergent Cake
- Detergent powder – Arasan
Powder
Prabhu
Soap Works - A leading manufacturer of Arasan branded soap and detergent power…
Prabhu
Soap Works, one of the leading manufactures of detergent cake and powder in
southern part of India, was established it wide presence since 1986. This huge
industrial factory being perfectly equipped with up-to –date machinery and
technology, qualified engineers, expert technicians and experienced staff, has
embarked in the enterprise of manufacturing of detergent cake and powder.
A period
of upper 18 years of experience in detergent field has made to achieve
successfully a large production capacity of detergent cake and powder. Now the
company is capable of covering domestic and international market with it bran
name “ARASAN”.
All this
could not have been achieved without a fully up- to –date laboratory and R
& D department, which is periodically upgraded to keep up with any new
development in the industry. With setting up of new plants and production lines
in the near future we are hoping to increase our production capacity to increase
our share in domestic and international market.
Thus
this company is playing and important and effective part in making the country
self sufficient and independent.
There is
no person on Tamilnadu who will not know Arasan brand of soaps. Catering to the
lower middle class of people they have almost captured the entire market of
that catergory by their advertisement in the TV and other media.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.46.20 |
|
UK
Pound |
1 |
Rs.84.57 |
|
Euro |
1 |
Rs.58.12 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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/normal. |
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 |