MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
THE CORONATION FIREWORKS FACTORY |
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Registered Office : |
112, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1974 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRIT01142B |
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PAN No.: [Permanent
Account No.] |
AAAFT5790Q |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Manufacturers and Exporters of Fireworks, crackers, grenades for
defense department. |
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 200000 |
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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-established and reputed concern having satisfactory
track. Partners are reported as
experienced and respectable businessmen.
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 : |
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Tel. No.: |
91-4562-272187, 272043, 278346 |
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Fax No.: |
91-4562-272427 |
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E-Mail : |
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Administrative Office : |
112, |
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Tel. No.: |
91-4562-272187 / 272043 / 275441 |
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Mobile No.: |
91-98430 88881 |
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Fax No.: |
91-4562-272427 / 278346 |
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E-Mail : |
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Website : |
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Factory : |
112, They have 14 units manufacturing their items in Sivakasi in different
locations. |
PARTNERS
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Name : |
Mr. P. Kanagavel |
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Designation : |
Partner |
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Mobile No.: |
91-9843088881, 9443144474 |
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Name : |
Mr. K Jai Shankar |
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Designation : |
Partner |
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Tel. No.: |
91-4562-272187 |
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Name : |
Mr. K Balaji |
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Designation : |
Partner |
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Name : |
Mr. K Jeyakumar |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Fireworks, crackers, grenades for
defense department. |
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Products : |
v
One Sound Crackers v
Chorsa Electric Crackers v
Giant Electric Crackers v
v
Bijlee Crackers v
Tukkada special v
Yali Motta Tukkada v
Lar Electric Crackers v
Flower pots v
Chakkars v
Pencils v
Silver Twinkling v
Fancy Rockets v
Serpent Eggs v
Atom Bombs v
Deluxe Crackers v
Fancy Rockets v
Color Fancy Novelties v
New v
Paper Caps v
Serpents Eggs (Raj Nak) v
Toy fireworks, Display Shells, Variety of Color
Fancy items and Crackers, Sparklers, Amorces and Serpent and Serpent Eggs. |
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Brand Names: |
“ |
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Exports : |
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Products : |
Fireworks |
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Countries : |
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Imports : |
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Products : |
v
Raw Materials v
Chemicals |
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Countries : |
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PRODUCTION STATUS
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Products |
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Installed
Capacity |
Actual
Production |
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Fireworks cases assorted per month |
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10000 |
10000 |
GENERAL INFORMATION
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No. of Employees : |
3020 (Office: 20 ; Factory:
3000 – contract Labour) |
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Bankers : |
State Bank of Sivakasi, |
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Banking
Relations : |
Satisfactory |
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Memberships : |
v
Tamilnadu Fireworks and Amorces Manufacturers’ Association
(TANFAMA) v
Bureau of Indian Standards, CAPEXIL v
Tamilnadu Chamber of Commerce and American
Fireworks |
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Associates/Subsidiaries : |
v
New v
Naya Carnation Fireworks v
The Coronation Paper Caps Industries v
Sri Cornation Fireworks v
Sri Cornation Fireworks Private Limited |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 50.000 millions |
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Borrowed : |
- |
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Total : |
Rs. 50.000 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
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Particulars |
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31.03.2006 |
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Sales Turnover |
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100.000 |
LOCAL AGENCY FURTHER INFORMATION
This partnership firm is one of the premier consumer fireworks company
in
They claim they are a 10 crore company, but there is no way to assess
their financial strength. No financial
transactions recommended. Caution
advised in all financial dealings with them.
No direct supplies
recommended. Supplies against LCs
or documents thru bank recommended.
The products are sold under the exclusive brand name of CORONATION and
Subject ensures that the merchandise meets or exceeds all Consumer
Product Safety Commission Requirements.
To ensure the sale and manufacture of safe and legal fireworks. It maintains extensive in-house
product-testing programs. Using
authorized chemicals, subject was the first one to introduce colored fireworks,
crackers and sparklers. Subject is known for its quality and dependency for
beneficial return policies for any crackers/fireworks which fail to light up.
Website details attached:
Subject is one of the premier consumer fireworks company in
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One Sound Cracker Chorsa Electric Crackers Giant Electric Crackers Bijlee Crackers Tukkada Special Yali Motta Tukkada Lar Electric Crackers Flower Pots Chakkars |
Silver Twinkling Fancy Rockets Serpent Eggs Atom Bombs Deluxe Crackers Fancy Rockets Color Fancy Novelties New Paper Caps Serpents Eggs (Raj Nak) |
The products are sold under the exclusive brand name of CORONATION®
Brand and CORO SPARKLERS® Brand of fireworks products and
merchandise. Coronation's various bags, boxes and tray fireworks assortments
are filled with the top performing items in each fireworks category. Innovative
trick and novelty and Class 7 (UN0336) products have attracted a large number of
customers. The company also supplies products like Hand Grenade and Bicat
Strips to Defense Stores.
Primary
Competitive Advantages
It is the first company in
Profile
Subject is ONE of the premier
consumer fireworks company in
The award winning, full-color CORONATIONS Catalogue features 201's of fireworks items including
Coronation's exclusive CORONATION
Brand and NEW CORO’S SPARKLERS
Brand of fire works products and merchandise. Unique, versatile packaging
designs are among the best in the world. Coronation's various bag, box and toy
fireworks assortments are filed with the top performing items in each fireworks
category innovative trick and novelty and Class 7 (UN0336) products have attracted customers. Subject efforts to ensure the sale and
manufacture of safe and legal fireworks are unparalleled.
Concern maintains an extensive
in-house product-testing programme that ensures our merchandise meets or
exceeds all Consumer Product Safety Commission Requirements. In addition concern is the first fireworks company
in
Legislative and
safety concerns are reflected in the company's membership and participation in
the TAMILNADU FIREWORKS & AMORCES
MANUFACTURER'S ASSOCIATION and a host of state and local organizations
like The Bureau of Indian Standards.
Subject employs over 4000 people
year round with an additional 400 seasonal jobs created in their 14 factories.
The company is a regular contributor of E.S.I and P.F. The company is offering
20% BONUS to it s workers & six months bonus to its staff.
Subject is also supplying HAND GRENADE AND BICATSTRIPS to
Defence stores.
Millions of INDIANS
across the country celebrate 56 years old tradition of our country's
independence and religious, social ceremonies with consumer fireworks from Concern.
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. 40.55 |
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1 |
Rs. 80.89 |
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Euro |
1 |
Rs. 54.89 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
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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55 |
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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