MIRA
INFORM REPORT
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Report Date : |
31.10.2006 |
IDENTIFICATION
DETAILS
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Name : |
EASTERN
ENGINEERING COMPANY |
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Registered Office : |
278, 2nd
Floor, Jeevan Udyog, Dr. D N Road, Mumbai – 400 002, Maharashtra, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1945 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME05327A |
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PAN No.: [Permanent
Account No.] |
AAAFE0104F |
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Legal Form : |
Partnership
Concern with an Unlimited Liability of the Partners. |
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Line of Business : |
Represents
as a Manufacturer of Textile Machinery. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
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Status : |
Satisfactory
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Payment Behaviour : |
Unknown
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Litigation : |
Clear |
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Comments : |
Mr. R
Anand of the concern declined business and financial details. He declined
even after divulging the client’s name Tyco Fire & Security, USA. Subject
is an old marketing concern, specialised in selling European Textile
machinery in India on commission basis. The
concern has not made much headway over the period due to unfavourable market
condition. Management is consevative in divulging their business details. The
concern can be considered for representation job at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
278, 2nd
Floor, Jeevan Udyog, Dr. D N Road, Mumbai – 400 002, Maharashtra, India. |
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Tel. No.: |
91-22-22076831 |
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Fax No.: |
91-22-22075699 |
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E-Mail : |
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Website : |
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Area : |
2000
sq. ft. |
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Location : |
Rented
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/PARTNERS
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Name : |
Mr. R
Anand |
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Designation : |
Partners
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Date of Birth/Age : |
70
Years |
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Experience : |
45
Years |
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Name : |
Mr. R
Srinivas |
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Designation : |
Partners
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Name : |
Mr. R
Jagdish |
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Designation : |
Partners
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BUSINESS DETAILS
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Line of Business : |
Represents
as a Manufacturer of Textile Machinery. |
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Agencies Held : |
Ø
Marzoli
Vouk SPA, Italy Ø
J
Zimmer, Austria Ø
Loris
Bellni, Italy Ø
Zellweger
Luwa, Switzerland |
GENERAL
INFORMATION
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Customers : |
End
Users and Textile Industry |
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No. of Employees : |
25 |
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Bankers : |
Citi
Bank, Mumbai State
Bank of India, Mumbai |
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Facilities : |
-- |
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Banking Relations : |
Unknown
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Sister Concern: |
Eastern
Engineering Works |
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Address: |
Mumbai
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Line of Business: |
Manufacturer
of Lons Table Printing Machines |
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Sister Concern: |
Ø
Luwa
India Private Limited Ø
Sanmarco
Texmac Private Limited |
FINANCIAL DATA
[all figures are in Rupees
Millions]
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Particulars |
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31.03.2006 (Estimated) |
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Order Hooking |
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100/150 |
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(On Commission Basis) |
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LOCAL AGENCY
FURTHER INFORMATION
AS
PER WEBSITE:
Subject was established in Mumbai, India during the days leading up to Independence. The country was in need of modern technology in all spheres and the textile industry was no exception.
D. Ramanna was among the earliest textile technology graduates of VJTI, Mumbai.
He used this qualification and the experience gained of apprenticing in textile
mills to form a company to source various requirements of the textile industry
including imports of machinery.
As economic focus shifted from import of machinery to import of technology, so
also did D. Ramanna change focus. His company became an agent for leading
European engineering and textile machinery companies of the time. His untimely
death in 1962 saw the mantles pass on to his sons. The business expanded to
include the representation of globally renowned producers of several items
required by the industry. Today the company represents the full spectrum
starting from heat-resistant rubber thread to textile air engineering equipment
and spans the spinning, weaving, knitting, processing and finishing sectors.
Group companies represent several renowned textile machinery manufacturers like
Marzoli - Vouk, Zellweger - Luwa, Finlane (Sant Andrea-Seydel-Cognetex), Loris
Bellini, Unionmatex, Zimmer and the like.
Joint venture companies to manufacture plant and machinery are also included in
the Group. These are Luwa India Private Limited and Sanmarco Texmac Private
Limited
On the engineering side, group companies produce top quality machine tool
components and special purpose machines for the likes of Nuclear Power
Corporation and Wipro-GE among others. Another group company, Eastern
Engineering Works also produces Long Table Printing Machines under
collaboration with Zimmer of Austria. Circular looms for HDPE sacks also form
part of their production plan.
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 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
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Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.02 |
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UK
Pound |
1 |
Rs.85.56 |
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Euro |
1 |
Rs.57.24 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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42 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and principal
sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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