MIRA
INFORM REPORT
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Report Date : |
21.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
JCB MANUFACTURING LIMITED |
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Registered Office : |
Talegaon Floriculture and Industrial Park, Village AMBI, Navlakh Umbhre,
Tal Maval, Talegaon Dabhade-410507, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
21.06.2004 |
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Com. Reg. No.: |
147067 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEJ05124A |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers of Construction Industrial Machine and Agriculture
Tools. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
-- |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is relatively small company having moderate track. Profitability
is under severe pressure. It has some accumulated losses. Payments are
reported as slow and delayed. The company can be considered for business dealings with slight
caution. |
LOCATIONS
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Registered Office : |
Talegaon Floriculture and Industrial Park, Village AMBI, Navlakh
Umbhre, Taluka Maval, Talegaon Dabhade-410507, Maharashtra, India |
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Tel. No.: |
91-2114-304000 |
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Fax No.: |
91-2114-304021/2 |
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E-Mail : |
alok.thareja@jcb.com |
DIRECTORS
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Name : |
Mr. John Smith |
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Designation : |
Head- Operations |
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Experience : |
41 years |
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Date of Appointment : |
01.06.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, UK |
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Name : |
Mr. Deniel Butler |
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Designation : |
Head |
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Date of Birth/Age : |
35 years |
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Experience : |
12 years |
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Date of Appointment : |
01.11.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, UK |
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Name : |
Mr. Ray Adama |
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Designation : |
Supervisor – Quality and Training |
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Date of Birth/Age : |
34 years |
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Date of Appointment : |
01.07.2004 |
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Previous Employment : |
JC Bamford Excavators Limited, UK |
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Name : |
Mr. Alok Thomson |
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Designation : |
Commercial Director |
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Date of Birth/Age : |
53 years |
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Experience : |
30 years |
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Date of Appointment : |
01.06.2004 |
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Previous Employment : |
JCB India Limited |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Construction Industrial Machine and Agriculture
Tools. |
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Products : |
v Agricultural
Products v Construction
Products v Construction
Equipments
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GENERAL
INFORMATION
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No. of Employees : |
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Facilities : |
Unsecured Loans
: Loan from Holding Company : Rs.411.953 millions |
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Banking
Relations : |
-- |
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Associates/Subsidiaries : |
Holding Company JCB India Limited JC Bamford Excavators Limited, UK JC Bamford Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000 |
Equity Shares |
Rs. 100/- each |
Rs.1.000 million |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000 |
Equity Shares |
Rs. 100/-
each |
Rs.0.500
million |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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0.500 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.000 |
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4] (Accumulated Losses) |
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(46.884) |
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NETWORTH |
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(46.384) |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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411.953 |
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TOTAL BORROWING |
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411.953 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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365.569 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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92.343 |
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Capital work-in-progress |
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284.952 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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39.795 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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9.271 |
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Total
Current Assets |
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49.066 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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60.581 |
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Provisions |
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0.211 |
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Total
Current Liabilities |
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60.792 |
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Net Current Assets |
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(11.726) |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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365.569 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2005 |
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Total Income |
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0.058 |
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Profit/(Loss) Before Tax |
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(46.821) |
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Provision for Taxation |
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0.063 |
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Profit/(Loss) After Tax |
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(46.884) |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
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16.044 |
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Finance Cost |
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11.124 |
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Depreciation & Amortization |
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3.333 |
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Other Expenditure |
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16.379 |
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Total Expenditure |
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46.880 |
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KEY RATIOS
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PARTICULARS |
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31.03.2005 |
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PAT / Total Income |
(%) |
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(80834.48) |
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Net Profit Margin (PBT/Sales) |
(%) |
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(80725.86) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(33.11) |
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Return on Investment (ROI) (PBT/Networth) |
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(0.01) |
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Debt Equity Ratio (Total Liability/Networth) |
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(10.19) |
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Current Ratio (Current Asset/Current Liability) |
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0.81 |
LOCAL AGENCY
FURTHER INFORMATION
YEAR IN RETROSPECT
The company has acquired 40 hectares land at Talegaon
Floriculture and Industrial Park at Talegaon District Pune from Maharashtra
Industrial Development Corporation (MIDC). They have obtained a letter of
permission from the development commissioner SEEPZ Special Economic Zone,
Mumbai for setting up an Export Oriented Unit (EOU) manufacturing Welded Steel
Fabrications having an annual capacity of 35000 MT at their site located at
Talegaon floriculture and Industrial Park.
This location offers a strategic advantage of
proximity and easy access to Jawaharlal Nehru Port Trust (JNPT) for import and
export shipments.
Construction of a 250000 Sq.ft. manufacturing
facility under phase I was completed by July 2005. Two laser cutting machines,
one plasma cutting machine and one press brake are under installation. More
than forty welder trainees have been inducted and trained. After successful
trail runs yielding quality to international standards, production has started
and initial shipments to UK have been received by UK to their satisfaction.
Maharashtra State Electricity Board (MSEB) has
sanctioned a 200 kva contract demand, which is expected to be available by this
year end. Meanwhile the company has got a connected load of maximum demand of
500 KVA frin MSEB. Also they have a captive generating capacity of 4 nos. DG
sets of 600 KVA each and one DG set of 180 KVA, i.e. total 2580 KVA.
The company is availing water connection
Maharashtra State Industrial Development Corporation (MIDC).
It is their vision and endeavor to set up a
world class manufacturing facility to cater to JCB worldwide requirements.
Civil construction of phase 2 i.e. another
250000 Sq. ft. manufacturing facility has already started and is due for
completion by end March 2006.
Company’s fixed assets include Leasehold Land,
Plant and Machinery, Furniture and Fixtures, Vehicles, Computers and Office
Equipments.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.41.67 |
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UK Pound |
1 |
Rs.83.41 |
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Euro |
1 |
Rs.56.61 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
2 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
-- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
2 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
2 |
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--CREDIT LINES |
1~10 |
2 |
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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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19 |
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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