MIRA
INFORM REPORT
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Report Date : |
18.05.2007 |
IDENTIFICATION DETAILS
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Name : |
EMKAY INDUSTRIES |
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Registered Office : |
195/ B, 4TH Main, 6th Cross, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1978 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRE00265G |
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Legal Form : |
Sole proprietory Concern |
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Line of Business : |
Manufacturer of Precision Turned Components and Cams for Automats. |
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 10000 |
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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 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 : |
195/ B, 4TH Main, 6th Cross, |
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Tel. No.: |
91-80-56991168 |
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Mobile No.: |
91-9845131133 |
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Fax No.: |
91-80-41536736 |
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E-Mail : |
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Website : |
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Area : |
1800sq.fts |
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Location : |
Owned |
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SOLE PROPRIETOR
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Name : |
Mr. Mitesh B. Jhaveri |
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Designation : |
Proprietor |
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Date of Birth/Age : |
30 Years |
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Qualification : |
B.Com |
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Experience : |
12 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Precision Turned Components and Cams for Automats |
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Products : |
High Precision turned Components with Sub-Assembly,
Specialization in the |
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Exports : |
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Countries : |
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Terms : |
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Selling : |
Terms of Export: L/C Local |
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Purchasing : |
Credit 45 days |
GENERAL INFORMATION
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Suppliers : |
♦
Manish Metals, ♦
South India Wire Products, ♦
Friction Controls, |
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♦
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Customers : |
♦
Bharat Electronic Limited ♦
L and T Limited ♦
Radiall Protectron private Limited ♦
VST Tillers and Tractors Limited ♦
Maini Precision Products ♦
Hinudustan Aeronautics Limited |
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No. of Employees : |
18 (16 Technical, 2 Other) |
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Bankers : |
Syndicate Bank Limited, Magad Road, Bangalore – 560023 |
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Facilities : |
Operating on own funds |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. B.P. Rao Chartered Accountants |
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Address : |
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Memberships : |
ISO: 9001:2000 Company Karnataka Small Industries Association |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.2.500 millions |
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Borrowed : |
- |
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Total : |
Rs.2.500 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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10.000 |
7.000 |
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Profit/Loss for the year |
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Indicated around
10% to 12% |
- |
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Export Value |
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2.500 |
1.000 |
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Expected Sales (2007-08) : Rs.12.500 millions
LOCAL AGENCY FURTHER INFORMATION
Average value of Inventories at any given time: Rs. Operating on almost
Zero Inventory
Company Profile:
Subject has a renowned name
in the world of precision turned components and cam manufacturing since two and
a half decades.
It was established in 1978 and is pioneer in manufacturing of highly precision
turned components with sub assembly, specialized in manufacturing of cams for
various machineries, reverse engineering and CAD/CAM solutions. Since the
establishment the company is in the process of continual improvement in
technology, quality system, employment and customers’ satisfaction.
Quality systems
They are an ISO 9001-2000 company and assure the utmost satisfaction through
high quality standard for zero rejection at customers end.
Corporate Vision
Emkay Industries vision is to be recognized globally with 100% customer
satisfaction.
Subject are the established and reputed
manufacturers of a varied range of Precision Turned Components. In 1978, they
started manufacturing High Precision
Turned Components with Sub-Assembly, Specialization in the
Product range
For their customers, they manufacture a wide range of industrial spares like:
- High Precision Turned Components with Sub-Assembly specialization in
the
- Reverse Engineering and
- CAD/CAM Solutions
Product quality
Various inspection procedures are undertaken from the first to final stage of
their products. These include techniques
like inward material inspection, periodic production inspection and final
inspection. Outsourcing is done by their chain of highly skilled and
well-equipped units for procuring CNC machining, sheet metal work, forging,
grinding and plating etc. Their Quality
Checking Techniques are latest and can be compared with the best in the
industry. Each procedure is followed in a stepwise logical process at their
company so that an unmatchable quality
is reflected in the final line of their products.
Infrastructure
An automatic line of machinery has
been introduced at their manufacturing units for the production of a varied
range of High Precision turned
Components with Sub-Assembly, Specialization in the
Corporate vision
subject has envisioned to be a globally recognized company with total customer satisfaction as
their ultimate target. They are seeking to achieve this by following logical steps
to arrive at an international quality standard for their products. By first
studying the prevailing trends in the market, they are seeking to apply the
same procedures for their products. It is their deepest wish to be counted amongst the known brands of the market and
they are working round the clock towards achieving that target.
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.40.90 |
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1 |
Rs.80.78 |
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Euro |
1 |
Rs.55.18 |
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 |
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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46 |
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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