MIRA
INFORM REPORT
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Report Date : |
27.08.2007 |
IDENTIFICATION DETAILS
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Name : |
SRI SAI INDUSTRIES |
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Registered Office : |
P – 24, (By the side of Shed No. 114), ‘C’ Main, 4th Cross,
3rd Stage, Peenya Industrial Estate, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1997 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturers of fabricated steel metal pressed parts and components
and structural fabrications. |
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 : |
USD 80000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-establishing and reputed concern having satisfactory
track. Proprietor is reported as experienced and reputed businessman. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory 1 : |
P – 24, (By the side of Shed No. 114), ‘C’ Main, 4th Cross,
3rd Stage, Peenya Industrial Estate, |
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Tel. No.: |
91-80-28361920 / 28364275 / 23490632 (R) |
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Mobile No.: |
91-9880116171 |
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Fax No.: |
91-80-28364265 |
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E-Mail : |
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Website : |
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Factory 2 : |
B – 107, “C” Main, 6th Cross, 3rd Stage, Peenya Industrial
Estate, Bangalore – 560 058, Karnataka, India |
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Area : |
222500 Sq. fts. (Unit 1 and Unit 2) |
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Location : |
Owned |
SOLE PROPRIETOR
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Name : |
Mr. R. V. S. Reddy |
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Designation : |
Proprietor |
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Date of Birth/Age : |
40 years |
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Qualification : |
Engineering Background |
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Experience : |
Experienced in Technical and Commercial aspects. |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of fabricated steel metal pressed parts and components
and structural fabrications. |
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Products: |
v Fabricated Sheet Metal Components v Structural Fabrications |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Credit (60 days) |
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Purchasing : |
Credit (60 days) |
PRODUCTION STATUS
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Products |
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Actual
Production |
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Fabricated Sheet Metal Components Structural Fabrications |
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As per
Customers’ Demand |
GENERAL INFORMATION
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Suppliers : |
v
(Machinery) Amada ( v
G. K. Steels ( v
Steel House ( v
Kanuga Extrusions ( |
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Customers : |
v
Ace Manufacturing Systems Limited ( v
Ace Designers Limited ( v
Hind High Vacuum Company Limited ( v
ABC Trading Company Private Limited ( v
Export orders from regular exporters
for overseas customers from countries like |
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No. of Employees : |
67 (Production/Technical: 62; Other: 5) |
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Bankers : |
Union Bank of SBI Branch, Yeshwantpur, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
C. K. Katari and Company Chartered Accountants |
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Address : |
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Memberships : |
v
Peenya Industries Association v
Karnataka Industries Association |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 20.000 millions |
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Borrowed : |
- |
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Total : |
Rs. 20.000 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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53.000 |
27.000 |
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Profit/Loss for the year |
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5% - 8% |
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Average Value of Inventories at any given time: Rs. 5.000 millions to
Rs. 6.000 millions
LOCAL AGENCY FURTHER INFORMATION
Website details attached:
Subject manufactures a wide range of fabricated Sheet Metal Components and laser cutting for various industries. Incepted in 1997, the company has been promoted
by Mr. R.V.S. Reddy who is having enormous experience in the Technical and
Commercial Management.
Product Line
They manufacture fabricated Sheet Metal Components and Structural Fabrications widely used in
the industries of Automobiles, Railways,
Telecommunications, Engineering, etc. The installed machines are
extremely versatile and are capable to manufacture/fabricate a wide range of
products conforming to varied specifications with in-house Laser Cutting &
Power Coating units.
Quality Assurance
They do not compromise on quality of the products. They have
an in-house Quality Assurance Program, which is
worked out to complete the job. Further, they are in the process of getting ISO 9002
Certificate to
further assure the quality. Their company administers good quality control
equipment such as Ultrasonic Testing Instrument, Pressure Testing
Equipment and Dye Penetrate.
Technology
The company has developed in-house technology in all the
areas of its operations. They are constantly upgrading their technology through
strict inspection and quality control programs. A professional team comprising
of Mechanical Engineers has been engaged and entrusted to implement Quality
Control Programs and continuously improve the technology.
Manufacturing Facilities
Their company's existing plant is located in
In-House
Facilities
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AMADA Laser
Cutting |
AMADA Press
Brake |
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WELDOR make
Shearing Machine |
WELDOR make
Press Brake |
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SHAILESH make
Power Press |
Crane with 2
tonnes capacity |
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ESAB make
MIG-250 Welding Machine |
HMT make Milling
machine |
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Hand Tools like
Jig Saws, Grinding, Sandring, Tapping, Magnetic Based Drilling, etc. |
KRITON make Spot
Welding Machine |
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ESAB make
MIG-400 Welding Machine |
ESAB make
Rectifier with TIG attachment |
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ESAB make
TRANSWELD Welding Machine |
Stud Welding
Machine |
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SIDDAPUR make
Drilling Machine |
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Strengths
- Team Work
- Quality
Product
- Upgradation
of Technology
- Personalized
Services.
Primary Competitive Advantages
They have all in-house
facilities such as laser cutting, press brake with auto back gauge
and powder coating.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 41.12 |
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1 |
Rs. 82.43 |
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Euro |
1 |
Rs. 56.03 |
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 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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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 |
YES |
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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 |
NO |
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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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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
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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. |
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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