MIRA
INFORM REPORT
|
Report Date : |
25.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
PRAKASH INDUSTRIES |
|
|
|
|
Registered Office : |
110/ B, Tejpal Industrial Estate, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
1971 |
|
|
|
|
Legal Form : |
Sole Proprietory Concern |
|
|
|
|
Line of Business : |
Manufacturer and Supplier of Switchgear components like MCCB housings
(many with moulded in brass & metal inserts), ACB components, Fuse switch
body and covers, Contact carriers, Contactor housings, Energy meter
components etc. |
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 20000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and reputed concern having satisfactory track. Proprietor is
reported as experienced and respectable businessman. Trade relations are 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
|
Registered Office : |
110/ B, Tejpal Industrial Estate, |
|
Tel. No.: |
91-22-28510591,
28513339 |
|
Mobile No.: |
919821222798 |
|
Fax No.: |
91-22-28510591,
28513339 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
1000 sq. ft. |
|
Location : |
Owned |
|
|
|
|
Factory 1 : |
Located at: Ahmednagar, |
|
Area : |
16000 sq. fts. |
|
Location : |
Owned |
|
|
|
|
Units : |
5 Units located at Sakinaka, Mumbai, |
|
Area : |
4000 – 5000 sq. ft. |
SOLE PROPRIETOR
|
Name : |
Mr. Prakash Sheregar |
|
Designation : |
Sole Proprietor |
|
Date of Birth/Age : |
35 Years |
|
Qualification : |
Graduate |
|
Experience : |
10 Years |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Supplier of Switchgear components like MCCB
housings (many with moulded in brass & metal inserts), ACB components,
Fuse switch body and covers, Contact carriers, Contactor housings, Energy
meter components etc. |
|
|
|
|
Products : |
|
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit upto 90 days basis |
|
|
|
|
Purchasing : |
Cash and Credit upto 90 days basis |
GENERAL INFORMATION
|
Customers : |
|
|
|
|
|
No. of Employees : |
About 50 |
|
|
|
|
Bankers : |
Bank of Sakinaka Branch, Mumbai, |
|
|
|
|
Banking
Relations : |
Satisfactory |
CAPITAL STRUCTURE
|
Capital Investment : |
|
|
Owned : |
Rs. 5.000 millions |
|
Borrowed : |
Nil |
|
Total : |
Rs. 5.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
|
Particulars |
|
31.03.2007 |
31.03.2006 |
|
Sales Turnover |
|
100.000 |
50.000 |
Expected Sales (2007-08) : Rs. 200.000 millions
LOCAL AGENCY FURTHER INFORMATION
Trade References:
§
Larsen and Toubro Limited ( Division : Powai,
Ahmednagar,
§
Evergreen Engineering Company Limited
§
Supra Exports
§
Dancal India Limited
§
Voltas Switchgear Works Limited
- Powertherm Capacitors Private Limited
As Per Web
Profile
Subject is a leading manufacturer, and supplier of Thermoset and Thermoplastic Moulding Products for Switchgear Industry. Established in 1981 with one hydraulic moulding machine, Prakash Industries has grown to over 23 machines ( from 30 tons to 150 tons clamping force), located in 5 units, fully equipped with comprehensive facilities for Thermoset & Thermoplastic processing (Compression, Transfer & InIjection) and with complete tool room support.
Quality control is maintained at all stages from raw material verification to
final packing, ensuring that all mouldings conform to international standards
of quality so that customers are duly satisfied. The raw material processed are
INDUSTRIAL PLASTICS, SMC, DMC and PF
Powders with Cotton and Woodflour fillers.
Many critical switchgear components like MCCB housings (many with mouldings-in brass & metal inserts), ACB components, Fuse switch body and covers,
Contact carriers, Contactor housing, Energy meter components, Insulator,
connectors, busbars & supports, coil formers. Bakelite Handles and Knobs
etc. are supplied to ISO 9000
companies. They also manufacture and export quality bakelite handles and
knobs required for cookware industries across the world. Many of the
components are used in products which are exported and used all over the world.
Prakash Industries also makes full products with testing as value added
services for its customers. The company stocks ejector pins and other
consumables to ensure interruption-free supplies to its customers.
They have Central Excise and S.S.I Registration.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.24 |
|
|
1 |
Rs.83.04 |
|
Euro |
1 |
Rs.55.60 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 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 |
|