MIRA
INFORM REPORT
|
Report Date : |
26th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
O A
ASSOCIATES |
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|
|
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Registered Office : |
582 -
A, Katra Ishwar Bhawan, Khari Baoli, Delhi – 110 006, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
2003* |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DEL002522C |
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|
Legal Form : |
Partnership
Concern with an Unlimited Liability of Partners. |
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|
|
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Line of Business : |
Importer
& Trader of Agricultural items, Pulses, Dry Fruits, Nuts and Spices and
Exporters of Rice. |
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
25000 |
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|
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established concern having satisfactory track. Trade relations are
fair. General financial position is satisfactory. 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 : |
582 -
A, Katra Ishwar Bhawan, Khari Baoli, Delhi – 110 006, India |
|
Tel. No.: |
91-11-23923616/
23934728 |
|
Fax No.: |
91-11-27497516 |
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E-Mail : |
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|
Area : |
500
sq. ft. approx |
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Location : |
Owned |
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|
|
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Branch
Office : |
600,
Katra Ishwar Bhawan, Khari Baoli, Delhi – 110 006, India |
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Branch
Office : |
535, 1st
Floor, Katra Ishwar Bhawan, Khari Baoli, Delhi – 110 006, India |
PARTNERS
|
Name : |
Mr.
Arun Kapoor |
|
Designation : |
Partners |
|
Address : |
BN 21,
Poorvi Shalimar Bagh, Delhi – 110 052, India. |
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Date of Birth/Age : |
55
Years |
|
Qualification : |
Matriculation |
|
Experience : |
35
Years |
|
Tel. No. : |
91-11-27494461 |
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|
|
|
Name : |
Mr.
Tarun Kumar |
|
Designation : |
Partners |
|
Address : |
BN 21,
Poorvi Shalimar Bagh, Delhi – 110 052, India. |
|
Date of Birth/Age : |
28
Years |
|
Qualification : |
Graduate/
MBA |
|
Experience : |
6
Years |
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Mobile No.: |
91-9312628711 |
BUSINESS DETAILS
|
Line of Business : |
Importer
& Trader of Agricultural items, Pulses, Dry Fruits, Nuts and Spices and
Exporters of Rice. |
|
|
|
|
Exports to : |
Middle
East Countries |
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|
|
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Import From: |
Iran,
Indonesia, China and USA. |
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|
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Terms : |
|
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Selling : |
DP
& L/C Basis |
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|
|
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Purchasing : |
100%
DP Basis |
GENERAL
INFORMATION
|
Customer: |
Wholesalers
, Traders & Commission Agent |
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|
|
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No. of Employees : |
Around
15 |
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|
|
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Bankers : |
v
UTI
Bank Limited, Chandni Chowk Branch, Delhi – 110 006. v
Oriental
Bank of Commerce, Chandni Chowk Branch, Delhi – 110 006. v
HDFC Bank Limited, Chandni Chowk Branch,
Delhi – 110 006. |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Related
Parties (Subsidiary, Joint Ventures, Affiliates) |
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Name of the company: |
Om
Prakash Arunkumar |
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Date of Incorporation : |
1965 |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Trader
of Agricultural Commodities |
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Name of Proprietor: |
Mr.
Arun Kumar |
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|
|
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Name of the company: |
Lakshmi
Trading Company |
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Date of Incorporation : |
1991 |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Importer
and Trader of Agricultural Commodities |
|
Name of Proprietor: |
Mr.
Arun Kumar & Tarun Kumar |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
6.500 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.
6.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
|
31.03.2005 |
31.03.2004 |
|
Net Worth |
|
6.500 |
6.350 |
|
|
|
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Sales Turnover |
|
85.000 |
40.000 |
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|
|
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|
Profit/(Loss)
Before Tax |
|
0.638 |
0.220 |
|
Provision
for Taxation |
|
0.298 |
0.068 |
|
Profit/(Loss)
After Tax |
|
0.340 |
0.152 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
0.40 |
0.38 |
|
|
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|
Net
Profit Margin (PBT/Sales) |
(%) |
|
0.75 |
0.55 |
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Return
on Investment (ROI) (PBT/Networth) |
|
|
5.23 |
2.39 |
The
subject was established in 2003 and hence the Turnover for the financial year
ended 31.03.2004 was around Rs. 40.000 Millions approx. The Projected Turnover
for the Financial year ended 31.03.2006 shall be to the tune of Rs. 125.000
Millions approx as claimed by the subject.
Note:
The
subject is a Non-incorporated business entity and thus not obliged to file any
information on itself with any Official Authority (Registrar of Company) open
for public inspection. The above mentioned information is obtained directly
from the subject itself but the subject could not substantiate it by providing
audited financial statements like Balance Sheet and Profit & Loss A/c.
LOCAL AGENCY
FURTHER INFORMATION
Business
dealings are permissible. The subject is an Importer and Supplier of
Agricultural Items, Pulses, Dry Fruits, Nuts and Spices from Iran, Indonesia,
China and USA on the purchasing term of Document against Payment basis. The
subject is also exporting rice to Middle East countries on the selling term of
DP basis.
The
subject is doing the business since 1985 as a family business in the name of
“Om Prakash Arun Kumar”. The inquired address is the subject’s office address,
which is situated at prime commercial location, and the entire area is the
wholesale market of Dry Fruits, Pulses and Agricultural commodities.
Mr.
Tarun Kumar (Age: 28 Years), Partner is looking after imports and marketing
activities. The subject is supplying their products to wholesalers in
Maharashtra, Punjab and Delhi.
Industry Overview
The
Indian Agriculture Industry is on the brink of a revolution that will modernize
the entire food chain, as the total food production in India is likely to
double in the next ten years.
As per recent studies the turnover of the total food market is approximately
Rs.250000 crores (US $ 69.4 billion) out of which value-added food products
comprise Rs.80000 crores (US $ 22.2 billion). The Government of India has also
approved proposals for joint ventures, foreign collaborations, industrial
licenses and 100% export oriented units envisaging an investment of Rs.19100
crores (US $ 4.80 billion) out of which foreign investment is over Rs. 9100
crores (US $ 18.2 Billion). The agricultural food industry also assumes
significance owing to India's sizable agrarian economy, which accounts for over
35% of GDP and employs around 65 per cent of the population. Both in terms of
foreign investment and number of joint- ventures / foreign collaborations, the
consumer food segment has the top priority. The other attractive features of
the indian agro industry that have the capacity to lure foreigners with
promising benefits are the deep sea fishing, aqua culture, milk and milk
products, meat and poultry segments.
Sector
Overview (India):
Agriculture
accounts for 22 per cent of the GDP and provides livelihoods to 58 per cent of
the country's population. India is the largest producer of milk, fruits, cashew
nuts, coconuts and tea in the world, the second largest producer of wheat,
vegetables, sugar and fish and the third largest producer of tobacco and rice.
However, every year about 20 per cent of the crop is lost due to mishandling,
spillage, floods, droughts and pests and diseases. In fruits and vegetables the
loss is around 30 per cent.
Over the years, the agriculture sector has not
received as much attention as other sectors in services and manufacturing. The
emerging areas in agriculture like
horticulture, floriculture, organic farming, genetic engineering, food
processing branding and packaging have high potentials of growth. Development
of rural infrastructure, rural extension services, agro-based and food
processing industries too are required.
In recent years there has
been considerable emphasis on the development of horticulture and floriculture
through the creation of critical infrastructure for cold storage, refrigerated
transportation, processing, packaging and quality control. India is the largest
producer of coconut, cashew nuts, ginger, turmeric and black pepper and the
second largest producer of groundnut, fruits and vegetables. India accounts for 10 per
cent of the world fruit production with first
rank in the production of banana, sapota and acid lime. India is also the
largest producer of milk, the fifth largest producer of egg and the seventh
largest producer of egg and the seventh largest producer of meat. It is
necessary to improve cold storage and transportation facilities and develop
efficient marketing and export networks to optimize the production and export
potentialities in respect of these products.
According
to the Economic Survey 2004-05, the growth rate in the agriculture and allied
sector was 9.6 per cent in 2003-04 and is estimated to grow 1.1 per cent in the
current year. The ‘State of the Economy’ report states that the year 2004-05
witnessed strong industrial growth, with the index of industrial production
rising by 8 per cent in 2004-05, compared with 7 per cent in 2003-04.
India’s
total grain stocks grew by 7.3 per cent to 23.6 million tonnes (mt) as on
November 1, 2004, according to the Food Ministry. Rice stocks nearly doubled to
11 mt from 5.7 mt. The current level of food grain stocks is well above the
minimum buffer requirement of 18.1 mt, including 6.5 mt of rice and 11.6 mt of
wheat.
India's
food grain production is expected to rise to 208.5 million tonnes in the fiscal
year ending in March 2006, from 204.6 million tonnes last year according to the
Centre for Monitoring Indian Economy.
Agriculture
output will grow by 3 per cent in 2005-06, compared with 1 per cent last year,
according to the Confederation of Indian Industry’s (CII) latest report.
Along
with food grain production, India’s cotton production for the 2005-06 marketing
year is now seen at 18.4 million bales, compared with a previous forecast of 17
million bales, United States Department of Agriculture (USDA) said in the World
Agricultural Supply and Demand Estimates report.
Exports
India’s
basmati exports in FY05 touched an all-time high of 1,120,000 tonnes, up 45 per
cent. In value terms, exports rose to US$ 596 million compared with the
previous year’s figure of US$ 432 million.
The
non-basmati rice exports rose to 3,640,000 tonnes from 2,601,000 tonnes. In
value terms, it was US$ 880.0 million from US$ 483.8 million.
Agri Exports/Imports
The Agri Exports from India in 2004-05 comprised of Tea &Coffee $621million, Agricultural produce and products $6.03billion (of which rice and wheat alone was worth $1.9billion) and marine products accounted for $1.27billion. The exports of food grains (rice and wheat) have picked up considerably in recent years, accounting for around 20 per cent of the agri-exports. The Government's special efforts to encourage export of food grains in recent years through grant of WTO compatible subsidies has placed India as one of the leading exporters of food grains in the international market
The Key imports in the
Agricultural sector were fertilizers $1.23billion, edible oil $2.39 billion
apart from the import of cashew nuts $391million and fruits & nuts
$235million during the year 2004-05
Opportunities in India
Major products and services with the liberalisation of the Indian economy,
there is a growing awareness of imported food products. Some of the major
products/services that have potential demand in India
are:
- Dairy (butter oil, skimmed milk powder
and specialty cheese)
- Pulses (mung beans, chickpeas, lentils
and field peas)
- Fresh fruits (mainly apples followed by
pears, grapes, citrus)
- Raw cotton
- Bulk grain handling and storage
services/expertise
- Processed foods (juices, bakery
products and confectionary
- India is moving slowly towards
the organised retailing concept of supermarkets; especially in South India.
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.46.36 |
|
UK
Pound |
1 |
Rs.84.49 |
|
Euro |
1 |
Rs.58.38 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/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 |