MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MODERN LOCKS MANUFACTURING COMPANY |
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Registered Office : |
Ramson House, Banna Devi, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Year of Incorporation : |
1976 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AGRM10848F |
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PAN No.: [Permanent
Account No.] |
AABFM8671N |
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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 all type of locks. |
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 22104 |
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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 records. 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 / Factory : |
Kothe No.1, Banna Devi, |
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Tel. No.: |
91-571-2403213, 2407808, 2405105, 2420154 |
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Mobile No.: |
91-9837007320 |
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Fax No.: |
91-571-2409126 |
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E-Mail : |
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Website : |
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Area : |
10,000 Sq. mtrs. |
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Location : |
Owned |
PARTNERS
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Name : |
Mrs. Sarla Kumari |
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Designation : |
Partner |
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Address : |
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Age : |
68 years |
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Qualification : |
Matric |
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Experience : |
H/W |
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Name : |
Mr. Umesh Kumar |
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Designation : |
Partner |
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Address : |
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Age : |
50 years |
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Qualification : |
Graduate |
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Experience : |
26 years |
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Name : |
Mr. Rakesh Kumar |
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Designation : |
Partner |
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Address : |
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Age : |
52 years |
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Qualification : |
Graduate |
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Experience : |
30 years |
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Name : |
Mrs. Shikha Kumar |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and exporters of all type of Locks |
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Products : |
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Brand Names : |
Lock and Door Fitting |
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Exports : |
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Products : |
Locks |
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Countries : |
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Imports : |
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Products : |
Raw Material, Drawer Channels, Tubular locks |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash or Credit (30 days), Advance D/P |
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Purchasing : |
L/C, Cash or Credit (30 days) |
GENERAL INFORMATION
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Customers : |
Local and Foreigners, Retailers and End Users |
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No. of Employees : |
4 office |
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Bankers : |
State bank of I C I C I Bank, |
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Facilities : |
Credit Limit upto Rs. 1.000 million (State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. H. Singal and Company Chartered Accountant |
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Address : |
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Associates/Subsidiaries : |
Name: Modern Overseas Address: Line of Business: Locks Manufacturers Name: Modern Manufacturers Address: Line of Business: Locks Name: Ramson Locks Address: |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 6.500 millions |
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Borrowed : |
- |
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Total : |
Rs. 6.500 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] Partners Capital |
5.526 |
5.329 |
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2] Share Application Money |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
5.526 |
5.239 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
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TOTAL |
5.526 |
5.239 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.885 |
0.759 |
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Capital work-in-progress |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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Sundry Debtors |
6.418
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5.601 |
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Cash & Bank Balances |
0.090
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0.086 |
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Other Current Assets |
0.426
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0.000 |
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Loans & Advances |
1.296
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1.405 |
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Closing stock |
3.729
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4.601 |
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Total
Current Assets |
11.959
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11.693 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.318
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7.213 |
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Provisions |
0.000
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0.000 |
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Total
Current Liabilities |
7.318
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7.213 |
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Net Current Assets |
4.641
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4.480 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
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TOTAL |
5.526 |
5.239 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
22.603 |
18.712 |
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Other Income |
0.000 |
0.000 |
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Total Income |
22.603 |
18.712 |
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Profit/(Loss) Before Tax |
0.118 |
0.025 |
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Provision for Taxation |
0.078 |
0.016 |
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Profit/(Loss) After Tax |
0.040 |
0.009 |
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Expenditures : |
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Cost of Goods Sold |
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Establishment Expenses |
0.674 |
0.670 |
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Administrative Expenses |
0.523 |
0.470 |
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Repair and maintenance |
0.287 |
0.207 |
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Financial expenses |
0.661 |
0.484 |
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Audit and other professional fees |
0.074 |
0.086 |
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Selling expenses |
0.693 |
0.199 |
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Managerial Remuneration |
0.246 |
0.246 |
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Other Expenditure |
0.217 |
0.245 |
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Total Expenditure |
3.375 |
2.607 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
0.17
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0.04 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.52
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0.13 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
0.91
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0.46 |
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Return on Investment (ROI) (PBT/Networth) |
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0.02
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0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.32
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1.37 |
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Current Ratio (Current Asset/Current Liability) |
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1.63
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1.62 |
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Particulars |
31.03.2006 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
100.000 |
95.800 |
95.000 |
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Profit for the year |
1.450 |
1.415 |
1.250 |
LOCAL AGENCY FURTHER INFORMATION
Website details attached:
Subject made a humble beginning in the year 1972 with brand names RAMSON
AND HORSEMAN in the field of locks. Its founder
a great visionary Late Mr. K. L. Kumar during his short span of life gave the
much needed direction and impetus for the growth of the company. The mantle from then onwards was carried by
three sons of the founder who by the grace of God and hard work transformed the
still blossoming company into a leading trading house, dealing in all types and
hardware.
Thus, the with its vast range of door fittings endowed with numerous
finishes and excellent workmanship on different metal crafts evolved as a household
choice, catering to all sections of the society.
Subject by sheer elegance changed hardware products to art ware which
adds glamour to the home they occupy.
The patronage extended by the customers and the faith reposed in the
concern compelled the trading house to setup a manufacturing base in the name
of the concern in 1984, equipped with sophisticated machinery and skilled
technical staff conforming the products to the highest standards. The vast experience as a trading house
enhanced the acceptability of the self manufactured products and the unit soon
evolved as the largest manufacturer of Mortice Locks in
With the economy spreading its arms wide open, Modern Overseas emerged as
a global player in 1994, making subject’s presence felt in the international
arena and also importing foreign items in the concern range.
Market appreciation and customer’s undeterred confidence in subject’s
products is the only motivation and inspiration which makes the concern more
burdened with a greater sense of responsibility and duty to provide products
which are real value for money.
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. 40.93 |
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1 |
Rs. 80.76 |
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Euro |
1 |
Rs. 54.46 |
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 |
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 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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 |
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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49 |
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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