MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
J L ENGINEERING INDUSTRIES |
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Registered Office : |
No. 47, Rajeev Gandhi Nagar Road, Vishwaneedam Post, Sunkadakatte,
Bangalore – 560091, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1996 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturer of Precision and Turned Components. |
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 80000 |
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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. Proprietor is reported as experienced and respectable businessman. 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 : |
No. 47, Rajeev Gandhi Nagar Road, Vishwaneedam Post, Sunkadakatte,
Bangalore – 560091, Karnataka |
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Tel. No.: |
91-80-23585201 / 65656296 / 23482533 / 23285319 |
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Mobile No.: |
91-9844172587 |
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Fax No.: |
91-80-23585201 |
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E-Mail : |
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Website : |
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Area : |
7000sq.fts |
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Location : |
Owned |
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SOLE PROPRIETOR
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Name : |
Mr. J.V. Achar |
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Designation : |
Proprietor |
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Date of Birth/Age : |
45 Years |
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Qualification : |
B.E. (Mech.) |
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Experience : |
20 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Precision and Turned Components |
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Products : |
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Automobile Parts ·
Electronic Components ·
Machined and Welded Sub Assemblies |
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Exports : |
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Countries : |
In process to |
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Terms : |
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Selling : |
Credit ( 30 to 60 days) |
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Purchasing : |
Credit (30 to 60 days) |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
55 (40 Technical, 15 Other) |
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Bankers : |
State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Krishnamurthy Chartered Accountants |
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Address : |
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Memberships : |
Karnataka Small Industries Association |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.20.000 millions |
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Borrowed : |
- |
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Total : |
Rs.20.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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35.000 |
30.000 |
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Profit/Loss for the year |
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Around 10 to 12% |
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LOCAL AGENCY FURTHER INFORMATION
Average value of
Inventories at any given time: Rs.2.500 millions
Company Details:
ISO: 9001:2000 Certified Company being updated to TS: 16949
Established more than a
decade ago under the Companies Act (1956), they have come a long way, and
established themselves as one of the most prominent brands in the precision
pressed and turned components industry. Subject was set
up by Mr. J. V. Achar, a highly qualified mechanical engineer with his vast
experience in electrical and automobile industries. Aided by a dedicated team
of technocrats, the status of J. L. Engineering Industries has elevated to an
outstanding manufacturer of a wide range of high
quality Precision Pressed and Turned Components such as Automobile Parts,
Electronic Components, Machined and Welded Sub Assemblies, etc.
At present, they are an ISO
9001:2000 certified company and their market base is expanded
all over the country. Their client list includes some highly reputed names like
Larson and Toubro, Mico Bosch, Bosch Rexroth, and other such prominent brands.
This extent of success is the result of their ability to satisfy the
requirements of their clients as per and even beyond their expectations. They
crave for perfection and have the reputation to introduce innovative products
more frequently in comparison to their contenders. Besides, they offer their
customers, the products manufactured as per their specific requirements and
always hold a 100% on time delivery schedule, earning their satisfaction
in every possible way.
Their Quality
They, J. L. Engineering Industries, offer high precision components and
guarantee world class quality standard in all their products. They have
in-house quality checking facility where their quality control personnel perform
stringent quality checking as per ISO 9001:2000 norms. The process starts right
from the beginning of procurement of high quality raw materials like mild
steel, alloy steel, brass, copper, etc., and ends with the final dispatch of
finished products. They also strive to reduce their manufacturing costs and any
savings that they achieve is passed on to their customers via price reduction.
Their Infrastructure
They are indebted to their sound infrastructural base for their brilliant success
in the industry dealing in a range of sophisticated products. Their
infrastructure comprises of cutting edge technology and highly skilled
workforce, the combination that helps to keep us steps ahead of their
competitors in the concerned field. The manufacturing unit of J. L.
Engineering Industries is second to none in terms of sophistication and
technology. A range of advanced technology machinery including power presses,
hydraulic presses, welding machines, etc. is used in the manufacturing process
which ensures better quality of the finished products. Their aim has always
been to be at the top in terms of quality and technology that they believe to
be the key to their success and your satisfaction.
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.40.97 |
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1 |
Rs.80.73 |
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Euro |
1 |
Rs.54.56 |
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 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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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 |
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 |
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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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