MIRA
INFORM REPORT
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Report Date : |
07.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
P. A.
PINIONS |
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Registered Office : |
Kasauli
Road, Dharampur, Solan-173209, Himachal Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1963 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLP11516B |
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Legal Form : |
Sole
Proprietory Concern |
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Line of Business : |
Manufacturers
and Exporters of Maxima Watches Digital and Quartz and Spares |
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
15000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a part of an established watch manufacturers. Trade relations are fair.
Payments are usually correct and as per commitments. The
group has established track of performance. The
concern can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
Kasauli
Road, Dharampur, Solan-173209, Himachal Pradesh, India |
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Tel. No.: |
91-1792-264033 |
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Mobile No.: |
91-9810001051 |
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Fax No.: |
91-1792-264362 |
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E-Mail : |
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Area : |
10000
Sq.ft. |
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Location : |
Owned |
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Head
Office/ Works : |
Kasauli
Road, Dharampur-173209, District Solan, Himachal Pradesh, India |
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Tel.
No.: |
91-1792-264033/
264177 |
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E-Mail
: |
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Industries
: |
P.A.
Time Industries H-22,
Jangpura Extension, New Delhi-110014, India |
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Tel.
No.: |
91-11-24316537/
24316538/ 24316539 |
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Fax
No.: |
91-11-24316540 |
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E-Mail
: |
SOLE PROPRIETOR
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Name : |
Mrs.
Bhupinder Kaur Purewal |
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Designation : |
Proprietor |
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Address : |
Dharampur,
Solan, Himachal Pradesh |
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Date of Birth/Age : |
65
years |
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Qualification : |
Graduate |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Exporters of Maxima Watches Digital and Quartz and Spares |
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Exports to : |
Singapore |
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Imports from : |
Switzerland,
China, Korea and Hong Kong |
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Terms : |
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Selling : |
L/C,
Cash Credit (30 days) and Sight |
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Purchasing : |
L/C,
Cash, Credit (30 days) and Against documents |
GENERAL
INFORMATION
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Customers : |
Local
and Foreigners, Retailers and End Users |
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No. of Employees : |
190 |
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Bankers : |
State
Bank of Patiala, Dharampur |
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Banking Relations : |
-- |
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Auditors : |
S.R.
Mittal & Company Chartered
Accountants, Ludhiana |
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Associates/Subsidiaries : |
P.A.
Times Industries, Solan Line
of Business : Watches and Spares Purewal
Associates Limited, Solan Line
of Business : Manufacturers and Exporters of Watches and Parts |
CAPITAL STRUCTURE
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Capital
Investment : |
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Owned : |
Rs.3.500
millions |
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Borrowed : |
-- |
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Total : |
Rs.3.500
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
25.000 |
NA |
NA |
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Profit/Loss for the year |
2.300 |
2.000 |
1.900 |
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Export Value |
80% |
76% |
72% |
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Import Value |
(10)% |
20% |
15% |
LOCAL AGENCY
FURTHER INFORMATION
Trade References :
Danahar
Motion India Private Limited, Mumbai
Website Details :
Their
Chairman
Mr G S 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 businessmen, 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 G S 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
Group:
Ø PA Group
today comprises of:
Ø PA Time
Industries - Maxima Watches
Ø PA
Pinions
Ø Purewal
and Associates Limited
Ø PA
Precision Components
Ø PA
Button Cells
Ø A Watch
components Private Limited
Ø P A
Magnets
Their
Partners:
The spiraling success of Maxima has further gained
momentum with their partners Mr. H S Purewal, who is an Electronic Engineer and
MBA from Houston University, USA and Mr. M S 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 youth’s 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 Mumbai.
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.44.09 |
|
UK
Pound |
1 |
Rs.86.84 |
|
Euro |
1 |
Rs.57.21 |
SCORE &
RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
|
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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 |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
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
|
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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