MIRA
INFORM REPORT
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Report Date : |
20.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAJEEV METAL INDUSTRIES |
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Registered Office : |
C-6, Textile Colony, Industrial Area, Ludhiana – 141993, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1968 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDR00866F |
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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 Lubricating Equipments and Hand Tools |
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 26000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established concern having satisfactory track
records. Trade relations are fair. Payments are usually correct and as per
commitments. Nothing adverse reported. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
3-C, Textile Colony, Industrial Area - A, Ludhiana – 141993, Punjab,
India |
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Tel. No.: |
91-161-2665266 / 2661762 / 2668442 / 2425055 / 2675699 |
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Mobile No.: |
91-9815615090 |
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Fax No.: |
91-161-2609430 / 2674701 |
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E-Mail : |
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Area : |
1000 sq. yds. – Owned |
PARTNERS
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Name : |
Mr. M. L. Sayal |
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Designation : |
Partner |
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Date of Birth/Age : |
68 Years |
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Qualification : |
Matric |
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Experience : |
38 Years |
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Name : |
Mr. S. K. Sayal |
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Designation : |
Partner |
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Date of Birth/Age : |
67 Years |
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Qualification : |
Matric |
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Experience : |
35 Years |
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Name : |
Mr. Rajeev Sayal |
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Designation : |
Partner |
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Date of Birth/Age : |
42 Years |
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Qualification : |
MBA |
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Experience : |
15 Years |
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Name : |
Mr. Sanjeev Sayal |
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Designation : |
Partner |
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Date of Birth/Age : |
32 Years |
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Qualification : |
Graduate |
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Experience : |
8 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Lubricating Equipments and Hand Tools |
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Products : |
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Exports : |
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Products : |
Hand Tools and Lubricating Equipment |
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Countries : |
USA, Mexico, UK, Germany, France, Italy, Belgium and Brazil |
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Imports : |
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Products : |
Machinery |
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Countries : |
Taiwan |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Credit [60 days] and at Sight |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
155 [In Office : 15 and In Factory 140] |
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Bankers : |
Credit Limit Rs. 5.000 Millions
Credit Limit Rs. 10.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chatley Mehra and Company Chartered Accountants |
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Address : |
Ludhiana |
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Associates/Subsidiaries : |
Sayal Impex
Private Limited Address : Ludhiana Lin of Business : Manufacturers of Hand Tools |
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]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
78.900 |
75.000 |
69.000 |
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Profit/Loss for the year |
5.600 |
5.200 |
4.850 |
LOCAL AGENCY
FURTHER INFORMATION
Trade Reference
- Harbour
Freight – USA
- Samoaa – UK
AS PER WEBSITE
The success story of Prima began with its inception in
the industrial town of India 'Ludhiana' in the year 1968. The founder of
the industry Mr. M.L. Sayal started the unit from a single machine with the
unflinching support of his younger brother.
By sheer hard work they set up a manufacturing unit
for Oil Cans, Grease Guns, Rotary Pumps and its accessories in 1969, since then
there is no looking back. By hiring the best tool makers, a keen eye for
selective purchase of raw materials and stringent quality control Prima became
a leading O.E. supplier. Slowly but steadily they kept on increasing the
product range to meet the market demands.
In 1990 the company got a major boost in its
marketing strategy with the joining of Rajeev Sayal as its Executive
Exports. During his higher study in America, he noticed the tremendous
demand of hand tools in USA and Western Europe.
Within a short span of one year the company's Export
sales increased by 125%. Thereafter, the export sales graph is ever
rising.
With the increasing dependence of western countries
on the Indian market for their supply of hand tools, the demand for the same
experienced an expotential increase, leading to setting up of three new units
by Prima. These modern forging plants with automatic induction hardening
machine, a machine shop with belt grinders, drill machines, broaching machines,
pneumatic and hydraulic presses works round the clock to turn the raw forging
into finished products.
The strength of Prima lies in its dedicated and
professional workforce. Teamwork is the major criteria behind the
successful running of all Prima units, for they strongly in 'Unity is
strength'.
Today the name of Prima is synonymous with
Lubricating equipment's & Hand tools. It is only possible because
they believe in the philosophy of customer's satisfaction. Despite
phenomenal growth in recent years, the company is still continuing to upgrade
and extend its range.
By continuously monitoring customer's needs, they
have been streamlining processes, cutting costs, and their quick response to
changing customer's demands has enabled them to conquer the worlds future
market place today.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.39.34 |
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UK Pound |
1 |
Rs.80.72 |
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Euro |
1 |
Rs.57.71 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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 |
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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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. |
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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