MIRA INFORM REPORT
|
Report
Date : |
28th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
P. A.
TIME INDUSTRIES |
|
|
|
|
Registered
Office : |
Unit II,
Kasuli Road, Dharampur – 173209, Solan, Himachal Pradesh, India |
|
|
|
|
Country: |
India |
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|
|
|
Financials
as on: |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
1993 |
|
|
|
|
TAN
No.: [Tax Deduction & Collection Account No.] |
PTLP11515A |
|
|
|
|
Legal
Form : |
Partnership Concern with an Unlimited Liability of the
partners |
|
|
|
|
Line
of Business : |
Manufacturing of Quartz and Watch Components |
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 17500 |
|
|
|
|
Status
: |
Satisfactory
|
|
|
|
|
Payment
Behaviour : |
Slow but
Correct |
|
|
|
|
Litigation
: |
Clear |
|
|
|
|
Comments
: |
Subject is a well established and reputed concern having
mediocre track. Partners are resourceful, qualified and experienced
businessmen. Their trade relations are fair. General financial position is
satisfactory. Payments are as slow by average 30 days. However, the concern can be considered normal for business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Unit II,
Kasuli Road, Dharampur – 173209, Solan, Himachal Pradesh, India |
|
Tel.
No.: |
91 - 1792
– 264033/ 264177/ 264752/ 264753 |
|
Fax
No.: |
91 - 1792
– 264362 |
|
E-Mail
: |
|
|
Website
: |
|
|
Area : |
Owned |
|
|
|
|
Factory
1 : |
Kasuli Road, Dharampur – 173209, Solan, Himachal Pradesh |
|
Tel.
No.: |
91 - 1792 – 264033 / 264177 / 264752 / 264753 |
|
Fax
No.: |
91 - 1792 - 264362 |
|
Email: |
|
|
Area : |
4000 sq.ft |
|
|
|
|
Central
Marketing Office: |
H-22, Jangpur Extension, New Delhi – 110 014 |
|
Tel.
No.: |
91 – 11 – 24316537 / 24316538 / 24316539 |
|
Fax
No.: |
91 – 11 - 24316540 |
|
E-Mail
: |
PARTNERS
|
Name : |
Mr. H S
Purewal |
|
Designation
: |
Partner |
|
|
|
|
Name : |
Mr.
Manjot Singh Purewal |
|
Designation
: |
Partner |
|
|
|
KEY EXECUTIVES
|
Name |
Mr.H S Purewal |
|
Designation |
Partner |
|
Age |
40 Years |
|
Qualification |
Electrical Engineer |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing of Quartz and Watch Components. |
GENERAL INFORMATION
|
No. of
Employees : |
Total 160 : 150 persons in factory and 10 persons in
office |
|
|
|
|
Bankers
: |
State Bank of Patiala, Dharampur, Himachal Pradesh |
|
|
|
|
Facilities : |
The concern is reported to enjoy substantial facilities
from it’s Bank |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Group
Companies : |
Ø P. A. Pinions Ø Purewal and Associates Limited Ø P. A. Precision Components Ø P. A. Button Cells Ø P. A. Watch Components Private
Limited Ø P. A. Magnets |
|
|
|
|
Memberships
: |
Ø
Industries
Association, Himachal Pradesh. Ø
Director
of Industries, Simla |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
4.400 millions |
|
Borrowed : |
-- |
|
Total : |
4.400 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
|
Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
|
|
|
|
Sales
Turnover |
350.000 |
340.00 |
300.000 |
LOCAL AGENCY FURTHER INFORMATION
The
production capacity of the concern is worth Rs. 0.3 to 0.4 millions material
per day.
Subject
imports machinery from Hong Kong and China against L/C & CAD terms.
The concern
is in trade terms with:
Ø
Khanna
Watches Private Limited
Ø
Tanmax,
Hongkong
PA Group
comprises of:
1.
P A
Time Industries – Maxima Watches
2.
P A
Pinions
3.
Purewal
and Associates Limited
4.
P A
Precision Components
5.
P A
Button Cells
6.
A
Watch Components Private Limited
7.
P A
Magnets
Its
Partners :
The
spiraling success of Maxima has further gained momentum with its partners Mr
H.S. Purewal, who is an Electronic Engineer and MBA from Houston University,
U.S.A. and Mr. M.S. Purewal, who is MBA from New York University, U.S.A. ,
bringing in new ideas and modern marketing methods.
Its
commitment to quality has got the coveted ISO 9002 certification for P A Time
Industries
Its Plant
Maxima
Watches are manufactured at Dharamapur in Solan District of Himachal Pradesh.
Its
Distribution
Maxima is a
product of the masses and it has always been its endeavor that its product
reaches the nooks and concern of the country. Today it has 56 distributors,
covering all parts of the country and it has 5000 loyal retailers across the
country.
Exclusive
Outlets
It has
opened its First Company exclusive outlets in Chandigarh. It is the first of a
chain of outlets that it plans in the coming month.
After Sales
Services
In order to
ensure that its consumers get the best of after sales service, it has opened a
series of services centres at all distributor outlets in the country. It has
also opened its Company Service Centre at Delhi and Franchise service centre at
Mumbai.
Group
Turnover : 800.000 millions
Group Manpower : 800
PUREWAL AND ASSOCIATES LIMITED
|
Board of Directors |
Designation |
|
Mr. G. S.
Purewal |
Chairman |
|
Mr. M. S.
Purewal |
Managing
Director |
|
Mr. S.
D. Varma |
Director |
|
Mr.
Surinder Kaur (Mrs.) |
Director |
|
Mr. Dewan
Gobind Sahaj |
Director |
|
Mr. H. S.
Purewal |
Director |
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2002 |
31.03.2001 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
|
19.616 |
19.616 |
|
|
3]
Reserves & Surplus |
|
14.842 |
14.969 |
|
|
4]
(Accumulated Losses) |
|
-- |
(3.198) |
|
NETWORTH
|
|
34.458 |
31.387 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1] Secured
Loans |
|
0.523 |
0.00 |
|
|
2]
Unsecured Loans |
|
0.403 |
0.525 |
|
TOTAL
BORROWING
|
|
0.926 |
0.525 |
|
|
DEFERRED
TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
35.384 |
31.912 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
27.182 |
25.903 |
|
Capital work-in-progress
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
|
|
0.005 |
0.005 |
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
|
|
|
|
Sundry Debtors
|
|
|
|
|
|
Cash & Bank Balances
|
|
38.246 |
30.117 |
|
|
Other Current Assets
|
|
|
|
|
|
Loans & Advances
|
|
|
|
Total Current Assets
|
|
38.246 |
30.117 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities and
|
|
30.048 |
24.113 |
Total Current Liabilities
|
|
30.048 |
24.113 |
|
Net
Current Assets
|
|
8.197 |
6.004 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
-- |
-- |
|
|
|
|
|
|
|
TOTAL
|
|
35.384 |
31.912 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2002 |
31.03.2001 |
Sales Turnover [including other income]
|
|
100.063 |
131.337 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
3.316 |
33.715 |
Provision for Taxation
|
|
1.570 |
8.672 |
Profit/(Loss) After Tax
|
|
1.746 |
25.043 |
|
|
|
|
|
Total Expenditure
|
|
97.623 |
96.747 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2002 |
31.03.2001 |
PAT / Total Income
|
(%)
|
|
1.744 |
19.067 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
3.313 |
25.670 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
|
5.067 |
60.178 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.096 |
1.074 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
|
0.898 |
0.784 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
|
1.272 |
1.248 |
AS PER WEBSITE:
Their Chairman
Mr GS Purewal, Chairman PA Group of Industries with
his "Never Say Die" spirit overcame repeated problems and
difficulties, over the years, to establish one of the foremost brands in the
Indian watch industry. Today, his vision is respected not only by the Indian
watch manufacturers but also by international players. He is known as an
idealistic individual and not as a shrewd businessman, he has earned tremendous
respect for himself, through his straightforward dealings, honesty and
fairness.
Born in Pakistan, he arrived in India in 1948. He moved to Mumbai and worked as
a sales agent selling watch spares. He then moved to Hyderabad in 1950 were he
started making watch spares. He was awarded by the director of industries and
was awarded for further training abroad. He moved to England in 1956 where he
worked in different factories learning the minor details of the industry.
In 1962, he returned with imported machines and set up P.A. Pinions, which
today holds the distinction of being the largest manufacturer of spares in
India. In 1977, he established Purewal & Associates that is today engaged
in manufacturing watch movements that are sold in India and exported to Hong
Kong and China.
In the early 1990, he set up P.A. Time Industries to manufacture electronic
watch components and quartz wristwatches.
Birth of
Maxima:
Maxima was
born in 1996 out of the vision to serve the economically weak segments of their
society. Until then, the vast majority of people had the option of buying
either an expensive wristwatch at above Rs 500 or be fleeced by the smuggled or
duplicate watches selling at throwaway prices but with no assurances of quality
or service. Maxima was the result of a vision to serve this vast majority
through a product that was accurate, reliable, guaranteed for quality, backed
by after sales service, a national brand but more importantly honestly priced
at Rs 350. The success of their single point communication of "India's
first guaranteed waterproof watch at Rs 350" has created history of sorts
in establishing high brand awareness and recall amongst their target audience.
Mr GS Purewal has twice been awarded the "Trade Post Man of the Year"
in 1986 and 1997. In fact, he is recognized as the person who pioneered the
quartz movement in India.
Their
Partners:
The
spiraling success of Maxima has further gained momentum with their partners Mr
HS Purewal, who is an Electronic Engineer and MBA from Houston University, USA
and Mr MS Purewal, who is an MBA from New York University, USA, bringing in new
ideas and modern marketing methods.
ISO
9001-2000:
Their
commitment to quality has got us the coveted ISO 9001-2000 certification for PA
Time Industries.
Their
Products:
Maxima had
about 250 models in 1998/99 and today they are touching 1000 models in plastic
and metal.
Aqua
Collection:
They have
the Aqua collection for consumers who seek reliability and affordability. The
Aqua collection today has over 350 models with another 100 in the pipeline for
the current year.
Gold
Collection:
They offer
the Gold collection for formal occasions for consumers who look for
international designs at affordable prices. Their Gold collection has over 500
models in both Gents and Ladies models.
Scuba
Collection:
They offer
the Scuba aimed at the sporty trends amongst the youth. These watches are not
only of international style and quality but they are priced keeping in mind the
Indian youths pocket money. Scuba today has over 50 models to offer. They have
also introduced their first chronograph.
Their
Plant:
Maxima
watches are manufactured at Dharampur in Solan district of Himachal Pradesh.
Not only, do they use state of the art technology in manufacturing of their
watches, but to maintain high standards of quality, every single watch is
tested, before it is ready for dispatch. They use state of the art computer aided
design packages, which enhances their capability of making products of
international designs available in the fastest time.
The
Changing Face of Maxima:
Maxima began with the most
memorable commercial of the watch falling in the pool. They followed later,
with the commercial that could not have reinforced any better the strength of
their watches, with an elephant stamping on the watch. They introduced the Gold
commercial to declare the entry of Maxima into metal dress watches. They also
went on air with the slick Scuba collection commercial, catching the eye of the
youngsters.
Today, Maxima communicates
of an organization that stands tall in its claim for addressing all needs of
the Indian consumers and offering an enviable range at prices that are pleasantly
surprising, given the international styling. The new commercial with Malaika
Arora and Cyrus Barocha carries this element of "Life main what a surprise
- (With) Maxima".
Their
Distribution:
Maxima is a
product of the masses and it has always been their endeavor to ensure that
their product reaches the nooks and corners of the country. They today have a
strong support of 56 distributors, covering all parts of the country and they
are proud to say that they have over 5000 loyal retailers across the country.
Exclusive
Outlets:
They have
opened their First Company exclusive outlet in Chandigarh. It is the first of a
chain of outlets that they plan in the coming months. The brand Maxima is today
represented on all Time Zones across the country.
After
Sales Services:
In order to
ensure that their consumers get the best of after sales service, they have
opened a series of service centers at all distributor outlets in the country.
They have also opened their Company service center at Delhi and franchise
service center at Mubai.
Makers of Maxima plan new brand
Their
Bureau
NEW
DELHI: P.A Time Industries, manufacturers of the Maxima brand of watches are
set to roll out a new brand of watches. According to the company, it has
completed the product development for the new brand to be launched in January.
Targeted at the youth, the brand promises to be fashionable, trendy and
affordable.
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 |
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 |
YES |
|
--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 |
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 |