MIRA
INFORM REPORT
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Report Date : |
12.05.2007 |
IDENTIFICATION DETAILS
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Name : |
USHA INDUSTRIAL CORPORATION |
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Registered Office : |
Post Box No. 6015, Near Ajit Mills, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1958 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMU00099B |
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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 Spinning Cans and Plastic Yarn Carriers
under the Brand Name TEXCAN |
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 50000 |
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Status : |
Good |
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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, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per
commitments. The concern can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Post Box No. 6015, Near Ajit Mills, |
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Tel. No.: |
91-79-22910344 / 22911527 |
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Mobile No.: |
91-98250 15654 |
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Fax No.: |
91-79-22910583 |
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E-Mail : |
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Website : |
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Area : |
600 Sq. mtrs. |
PARTNERS
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Name : |
Mr. Keshubhai Shah |
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Designation : |
Partner |
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Name : |
Mr. Amit shah |
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Designation : |
Partner |
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Name : |
Mrs. Gunvanti Keshubhai Shah |
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Designation : |
Partner |
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Name : |
Mrs. Kamini Amit Shah |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Spinning Cans and Plastic Yarn Carriers
under the Brand Name TEXCAN |
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Products : |
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Brand Names : |
TEXCAN |
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Exports : |
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Products : |
Spinning Cans |
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Countries : |
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Terms : |
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Selling : |
Cash or Advance payment |
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Purchasing : |
Cash or Advance payment |
GENERAL INFORMATION
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Customers : |
End Users |
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No. of Employees : |
35 |
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Bankers : |
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Facilities : |
Cash Credit Limit of Rs. 55.00 millions |
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Banking
Relations : |
Good |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 7.000 millions |
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Borrowed : |
Rs. 5.500 millions |
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Total : |
Rs. 12.500
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
55.000 |
37.000 |
30.000 |
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Profit/Loss for the year |
NA |
NA |
NA |
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Export Value |
20% of Sales |
20% of Sales |
20% of Sales |
Expected Sales (2007-08) : Rs. 80.000 millions
LOCAL AGENCY FURTHER INFORMATION
Website details attached:
Subject manufactures Spinning Cans and Plastic Yarn Carriers under the
brand name TEXCAN. Years of valuable
experience backed by technological excellence and product innovations have made
the concern, the largest exporter and manufacturer of its segment in
The company is headed by Shri. Keshubhai Shah and Mr. Amit Shah. Shri Keshubhai is the founder of the
organization and the driving force behind its success. His son, Mr. Amit Shah, Chemical Engineer
form B I TS Pilani, takes care of the day-to-day running of the company and
spearheads of the technical and product breakthroughs that keep the concern at
the forefront of excellence and expertise.
An efficient staff, strong network of agents and flexibility to accept
innovative ideas reflects the strong customer oriented policies of the
organization.
Established in the year 1958, subject
manufactures Aluminium and HDPE Spinning Cans, Box type springs and
castors. Yarn carriers include Ring
tubes, Doubling tubes, Simplex Bobbins, Cones, parallel Tubes, OE Tubes, Cheese
Windings, Texturising Tubes and package Dyeing Tubes. The Yarn carriers are designed for all stages
of yarn processing including preparatory, spinning twisting, winding and
package dyeing. All subject products are
made from Engineering Plastic such as PPCP, ABS, Polycarbonate, Glass Filled
Polyproplene, Nylon and Delrin.
PRODUCTS:
v CANS:
More than 20 lakh "TEXCAN"
spinning cans are running in
vROPE DYEING CANS:
It is especially designed
for Denim manufacturer who are having Rope Dyeing Plant, this Cans are
manufactured from HDPE cylinder with laminated wooden base. Pipe Structure with
Monkey ladder is provided for easy working of Can having 60" Dia. and
72" Height. Can with 8" Dia. wheel castors has capacity to carry One
Ton of Dyed Yarn.
INFRASTRUCTURE:
Spinning Can
Sheet Extrusion
Plant:
- Imported
Sheet Extrusion Plant with a capacity of 90 kgs per hour.
- HDPE / PP /
ABS sheet: width upto 48” and thickness upto 4 mm
Welding machine:
- Pneumatic
Sheet Welding machine for welding HDPE sheets for Spinning Cans
- Finishing
machine to give perfect joint for seamless spinning can.
Yarn Carrier
Injection Moulding
Machines:
- Moulding Machines
of Klockner Windsor having shot capacity of 450 grams and 650 grams.
- Moulding
machine having shot capacity of 1400 gms and delight of 2 mtrs.
Ancillary Machines:
- Humidifier, Hoper Dryer, Colour mixer, Grinder, Cutter,
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. 81.20 |
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Euro |
1 |
Rs. 55.42 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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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 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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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 |
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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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
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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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