MIRA
INFORM REPORT
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Report Date : |
23.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
V.K.
VALVES PRIVATE LIMITED |
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Registered Office : |
C-106,
Focal Point Extension, Post Office Box No.509, Jalandar-144004, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.04.1994 |
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Com. Reg. No.: |
16-14396 |
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CIN No.: [Company
Identification No.] |
U29120PB1994PTC014396 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDV00233C |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Manufacturers
and Exporters of Industrial Valves, Cocks and Boiler Mountings |
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
60000 |
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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 well-established and reputed company having satisfactory track. |
LOCATIONS
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Registered Office : |
C-106,
Focal Point Extension, Post Office Box No.509, Jalandar-144004, Punjab, India |
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Tel. No.: |
91-181-2600276 |
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Mobile No.: |
91-9872666376 |
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Fax No.: |
91-181-5083349/
2600176 |
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E-Mail : |
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Website : |
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Area : |
3579
Sq.yds. |
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Location : |
Owned |
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Factory
1 : |
Post Box
No. 509, C-106, Focal Point Extension, |
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Tel.
No.: |
91-181-
2600276, 2600376 |
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Fax
No.: |
91-181-5083349 |
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E-Mail
: |
DIRECTORS
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Name : |
Mr.
Vivek Jain |
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Designation : |
Director |
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Date of Birth/Age : |
45
years |
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Qualification : |
Graduate |
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Experience : |
25
years |
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Name : |
Mr.
Vikas Jain |
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Designation : |
Director |
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Date of Birth/Age : |
40
years |
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Qualification : |
Graduate |
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Experience : |
20
years |
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Name : |
Mr.
Ramesh Kumar |
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Designation : |
Director |
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Date of Birth/Age : |
76
years |
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Qualification : |
Matric |
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Experience : |
50
years |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
and Exporters of Industrial Valves, Cocks and Boiler Mountings |
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Brand Names : |
UTAM,
UTM and VTM |
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Exports to : |
UAE,
South Africa, USA, Australia, Egypt, Iran, Oman and Nepal |
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Terms : |
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Selling : |
L/C,
Cash and Credit (30 days) |
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Purchasing : |
L/C,
Cash and Credit (30 days) |
GENERAL
INFORMATION
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Customers : |
Wholesalers,
Retailers, End Users and OEM’s |
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No. of Employees : |
162 |
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Bankers : |
Canara
Bank, SME Branch, Industrial Area, Jalandar |
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Facilities : |
Credit
Limit : Rs.12.500 millions |
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Banking Relations : |
Satisfactory |
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Auditors : |
Jain
Mahajan & Company Chartered
Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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500000 |
Equity
Shares |
Rs.10/- each |
Rs.5.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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497000 |
Equity
Shares |
Rs.10/- each |
Rs.4.970 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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4.970 |
4.970 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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10.255 |
9.051 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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15.225 |
14.021 |
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LOAN FUNDS |
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1] Secured Loans |
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19.823 |
15.071 |
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2] Unsecured Loans |
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19.142 |
15.547 |
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TOTAL BORROWING |
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38.965 |
30.618 |
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DEFERRED TAX LIABILITIES |
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1.946 |
2.234 |
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TOTAL |
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56.136 |
46.873 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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23.332 |
22.102 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.005 |
0.005 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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Sundry Debtors |
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Cash & Bank Balances |
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40.895 |
32.965 |
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Other Current Assets |
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Loans & Advances |
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Total Current Assets |
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40.895 |
32.965 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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8.096 |
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Provisions |
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Total Current Liabilities |
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8.096 |
8.199 |
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Net Current Assets |
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32.799 |
24.766 |
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MISCELLANEOUS EXPENSES |
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TOTAL |
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56.136 |
46.873 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover [including other income] |
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60.868 |
41.384 |
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Profit/(Loss)
Before Tax |
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1.134 |
0.358 |
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Provision
for Taxation |
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0.000 |
0.000 |
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Profit/(Loss)
After Tax |
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1.134 |
0.358 |
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Total
Expenditure |
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59.734 |
41.026 |
KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.86 |
0.86 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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1.86 |
0.86 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
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1.76 |
0.65 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.07 |
25.53 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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3.09 |
2.77 |
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Current
Ratio (Current
Asset/Current Liability) |
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5.05 |
4.02 |
LOCAL AGENCY
FURTHER INFORMATION
Website Details :
Subject is a family run
company, started its operation in 1988 with manufacture of Non-ferrous valves
for water application. Since the inception of the company, their commitment has
been to manufacture & supply end product to their customer to their
satisfaction with prime commitment to Quality and Timely Delivery. They now
manufacture vast range of Industrial Valves and Boiler Mountings to specific
customer's requirement of Pressure, temperature and medium to be handled in
Ferrous / Non-ferrous constructions from 8mm to 200 mm size. They also
manufacture ISI marked Non-ferrous valves and are approved by CIB for manufacture
/ supply of valves for steam application. They are equipped with all the
in-house facilities i.e. Latest Machinery, Laboratory, Foundry to ensure that
each and every parameter at various stages of manufacturing is strictly adhered
too, to the stated requirements, thus ensuring building the quality into the
product at each and every stage of manufacturing of end product. They have
sound customer base through dealer's network through-out country and direct
interaction with Govt. Departments / Public Sector Undertakings. They are also
being proud of exporters to sophisticated country like USA due to their Quality
advantage and are expecting to explore this market effectively, in near future.
They have been progressing well in all the spheres of their business activity
and aim to move at much faster pace in future.
In its determination to
produce valves of the highest quality specification, subject prides itself on
its attention to innovation and meeting and exceeding customers requirements.
This is achieved right from design to production by a combination of extensive
experience and adherence to ISO-9001
procedures and standards, assisted by Computer Aided Design of Solid
Works.
Subject has its own
Foundry which produces high quality casting using the valves their process. It
is equipped with modern equipment technology. The chemical analysis is
continually checked before each pour to ensure complete conformity to the
material specification. The highly efficient operation allows batch firing
every 20 minutes leading to a fast, well-organized production line of high
quality castings.
The Factory has its on
modern machining Facilities which in include more then 100 Lathe machines and
various other Special Purpose machines. The Factory is proud of boasting modern
Technology CNC Machines. Thus
Pioneering and Excelling in the field of Valves.
The assembly section is equipped with Air/Hydrostatic
Testing Machines Valve. Every valve is given and air-pressure and are
subjected to a hydrostatic test.
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.44.24 |
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UK
Pound |
1 |
Rs.86.95 |
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Euro |
1 |
Rs.57.33 |
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 |
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 |
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 |
YES |
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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
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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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