MIRA INFORM REPORT

 

 

Report Date :

29.11.2006

 

IDENTIFICATION DETAILS

 

Name :

SHAKTI PRECISION COMPONENTS INDIA PRIVATE LIMITED

 

 

Registered Office :

20 – B, Doddanekundi Industrial Estate, White Filed Road, Bangalore – 560048, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2005

 

 

Date of Incorporation :

29.01.1999

 

 

Com. Reg. No.:

08-24691

 

 

CIN No.:

[Company Identification No.]

U34300KA1999PTC024691

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRS04270A

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers and Exporters of Precious 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 100000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are correct and as per commitments.

 

The company can be considered normal for normal business dealings at usual trade terms & conditions.

 

LOCATIONS

 

Registered Office/ Factory :

20 – B, Doddanekundi Industrial Area, Mahadevapura, K. R. Puram, Hobli, Bangalore - 560048

Tel. No.:

91-80-28524183/4440

Fax No.:

91-80-28524439

Area :

1521 Sq. ft

Location :

Owned

E-Mail :

Shaktipcl@sify.com

murthy@shaktiauto.net

 

DIRECTORS

 

Name :

Mr. C. R. Narasimha Murthy

Designation :

Director

Address :

14, Sri Hari Nivas, Palace Guttahalli Bangalore – 560003, Karnataka, India

Date of Birth/Age :

18.5.1958

Date of Appointment :

29.01.1999

 

 

Name :

Mr. Suhas G. Tiwari

Designation :

Chairman and Director

Address :

No.1214, 4th Floor, HAL III Stage, Bangalore-560075, Karnataka, India

Date of Birth/Age :

29.12.1950

Date of Appointment :

29.01.1999

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Mr. C. R. Narasimha Murthy

204000

27.20

Mr. Suhas G. Tiwari

204000

27.20

Ms. Sharada Murthy

13500

1.80

Ms. Sandhya Tiwari

13500

1.80

Ms. Deema Devi

30000

4.00

Mr. Laxmi Chand Jain

33750

4.50

Ms. Anita L. Jain

30000

4.00

Mr. Jayanthilal Jain

30000

4.00

Ms. Manju L. Jain

30000

4.00

Mr. R. Ullas L. Jain

30000

4.00

Mr. C. R. Manjunath

56250

7.50

Mr. P. Vikram Sabbaiah

39000

5.20

Ms. P. Vindya Subbaiah

36000

4.80

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Exporters of Precious Components

 

 

Exports to :

USA, UK and other European Countries

 

 

Imports from :

Singapore

 

 

Terms :

 

Selling :

T/T and L/C (30/90 days)

 

 

Purchasing :

T/T and L/C

 

GENERAL INFORMATION

 

Customers :

Retailers & End Users

 

 

No. of Employees :

170

 

 

Bankers :

State Bank of India, ITI Ancillary Industrial Estate, Bangalore – 560048

 

 

Facilities :

Term/ Corporate Loan: Rs.10 Millions from State Bank of India as per Hypothecation Agreement dated 06.01.2005

 

It is secured against Equitable mortgage of Company’s Immovable Properties comprising of Land and Building situated at No.20-B, Doddanakkundi Industrial Area, Mahadevapura, K.R. Puram, Hobli, Banglore-560048 measuring an extent of 1521 Sq. Meters with Built up area of 9512 Sq.ft. It is further secured against all present and future goods, book debts, movable and other assets of the company and Other Assets such as Outstanding Moneys, Receivables, Claims, Bills, Invoices, Documents and Securities, Contracts, Rights and the existing Machinery and all Future Machinery

 

Details of Secured Loan (as on 31.03.2005):

Particulars

Amount (Rs. In Millions)

Term Loan from State Bank of India (Secured by Hypothecation of Plant and Machinery)

33.810

State Bank of India Cash Credit A/c (Secured by Hypothecation of Stocks and Receivables)

13.260

Total

47.070

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

Anand Shenoy & Company

Chartered Accountant

Address :

66, Infantry Road, Bangalore – 1

Tel. No.:

91-80-25320692

 

 

Associates/Subsidiaries :

Shakti Auto-Cam Private Limited

Legal Status: Private Limited Company

Date of Incorporation: 07.11.1991

CIN Number : U50300KA1991PTC012479

Paid-up Capital : Rs.3.400 Millions

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1,250,000

Equity Shares

Rs. 10/- Each

Rs. 12.500 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

750,000

Equity Shares

Rs. 10/- Each

Rs. 7.500 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2005

31.03.2004

31.03.2003

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

7.500

7.500

7.500

2) Share Deposit

1.300

0.000

0.000

3] Share Application Money

0.000

0.000

0.000

4] Reserves & Surplus

18.047

5.960

0.740

5] (Accumulated Losses)

 

0.000

0.000
NETWORTH

26.847

13.460

8.240

LOAN FUNDS

 

 

 

1] Secured Loans

47.070

36.690

46.440

2] Unsecured Loans

2.727

1.430

1.420
TOTAL BORROWING

49.797

38.120

47.860

DEFERRED TAX LIABILITIES

 

 

 
 

 

 

 
TOTAL

76.644

51.580

56.100
 

 

 

 
APPLICATION OF FUNDS

 

 

 
 

 

 

 
FIXED ASSETS [Net Block]

63.280

46.200

37.400
Capital work-in-progress

0.000

0.000

13.140
 

 

 

 
INVESTMENT

0.000

0.000

0.000
DEFERREX TAX ASSETS

0.000

0.000

0.000
 

 

 

 
CURRENT ASSETS, LOANS & ADVANCES

 

 

 
 
Inventories
7.342
7.430

5.140
 
Sundry Debtors
13.981
11.000

6.730
 
Cash & Bank Balances
3.697
2.310

1.250
 
Other Current Assets
0.000
0.000

0.000
 
Loans & Advances
7.380
2.180

1.590
Total Current Assets
32.400
22.920

14.710
Less : CURRENT LIABILITIES & PROVISIONS
 
 

 
 
Current Liabilities
17.206
17.540

8.804
 
Provisions
1.830
 

0.356
Total Current Liabilities
19.036
17.540

9.160
Net Current Assets
13.364
5.380

5.550
 

 

 

 
MISCELLANEOUS EXPENSES

0.000

0.000

0.010
 

 

 

 
TOTAL

76.644

51.580

56.100

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2005

31.03.2004

31.03.2003
Sales Turnover [including other income]

127.067

64.230

34.487
 

 

 

 
Profit/(Loss) Before Tax

13.485

5.590

(3.500)
Provision for Taxation

1.400

0.430

0.000
Profit/(Loss) After Tax

12.085

5.160

(3.500)
 

 

 

 
Expenditures

99.252

NA

37.891

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2005

31.03.2004

31.03.2003
PAT / Total Income
(%)
9.51

8.03

(10.14)
 
 
 

 

 
Net Profit Margin

(PBT/Sales)

(%)
10.63

8.70

(10.14)
 

 
 

 

 
Return on Total Assets

(PBT/Total Assets}

(%)
12.63

8.08

(6.71)
 

 
 

 

 
Return on Investment (ROI)

(PBT/Networth)

 
45.01

0.41

(0.42)
 

 
 

 

 
Debt Equity Ratio

(Total Liability/Networth)

 
1.85

4.13

6.91
 

 
 

 

 
Current Ratio

(Current Asset/Current Liability)

 
1.70

1.30

1.60
 

 
 

 

 
Quick Ratio

 
1.32

0.88

--
 

 
 

 

 
Current Liabilities/ Networth

 
0.71

1.30

--
 

 
 

 

 
Fixed Asset/ Networth

 
2.36

3.43

 
 

 
 

 

 
Average Collection Days

 
40.22

62.69

--
 

 
 

 

 
Account Receivables Turnover

 
9.08

5.82

--
 

 
 

 

 
Inventory Turnover

 
17.28

8.62

--
 

 
 

 

 
Asset Turnover

 
2.01

1.39

--

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Fixed Assets :

 

Land , Building, Furniture And Fixture, Air Conditioner, Horizontal Machine – A55 And A51, Hot CNC Fioa Boring M/C, Cranes Electrical Fitting, Generator, LCD Projector ,Computer, Plant And Machinery , Motor Car.

 

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.44.65

UK Pound

1

Rs.87.23

Euro

1

Rs.58.96

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions