MIRA
INFORM REPORT
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Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
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Name : |
MICRON INDUSTRIES INC |
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Registered Office : |
F – 3/8, Okhla Industrial Area, Phase – 1, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1986 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Marketing of Rail Clips, Rail spike and screw spike. |
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 20000 |
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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 : |
F – 3/8, Okhla Industrial Area, Phase – 1, |
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Tel. No.: |
91-11-26813816, 26813517 |
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Mobile No.: |
91-9310715404 |
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Fax No.: |
91-11-26813816, 26224855 |
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E-Mail : |
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Area : |
500 Sq. fts. |
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Location : |
Rented |
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Corporate
Office: |
G – 503, |
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Tel. No.: |
91-11-4288490 |
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Branch: |
5263, |
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Tel. No.: |
770-394-6737 |
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Fax No.: |
770-770-394-0187 |
SOLE PROPRIETOR
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Name : |
Mr. Ravi Sharma |
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Designation : |
Proprietor / Chief Executive Officer |
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Date of Birth/Age : |
58 years |
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Qualification : |
Graduate |
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Experience : |
32 years |
BUSINESS DETAILS
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Line of Business : |
Marketing of Rail Clips, Rail spike and screw spike. |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
PRODUCTION STATUS
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Capacity to increase production by 50% |
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GENERAL INFORMATION
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Customers : |
Railways |
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No. of Employees : |
10 |
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Bankers : |
HDFC Bank Janak Puri, |
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Facilities : |
- |
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Banking
Relations : |
Satisfactory |
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Associates/Subsidiaries : |
v
Line of
Business: Manufacturers of Printed circuit boards. v
Prakash
Electromers Private Limited CIN No.:
U74899DL1985PTC022458 Authorized Capital:
Rs. 0.500 Million Paid up Capital:
Rs. 0.325 Million Date of
Incorporation: 06.11.1985 |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 5.000 Millions |
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Borrowed : |
- |
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Total : |
Rs. 5.000 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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20.000 |
18.000 |
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Profit/Loss for the year |
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12% |
12% |
Expected Sales (2007-08): Rs. 25.000 Millions
LOCAL AGENCY FURTHER INFORMATION
Additional
Information:
©
Subject wants to start manufacturing of railway
sleepers.
©
Factory will be in Faridabad and Rai, Haryana
©
Project Cost: Rs. 20.000 Millions
Website details attached:
Subject has been established in the business of
resilient rail fastening since 1986. The simple rail fastening is known as
Elastic Rail Clips (they are quite similar in function and purpose to the world
known as Pandrol Clips, Tension Fastners, HM Fastening, etc.). This rail
fastening is suitable for all applications on concrete, timber, steel sleeper,
slabtrack and for use under all types of traffic conditions from simple
industrial, mining track work rapid transit, high speed passenger applications
and to the heaviest freight railways.
The product is designed for each Railway application. Micron is not just
a manufacturer but all the engineering solutions for the track problems are
provided. They are approved by RDSO (Research & Development Standards
Organization, Ministry of Indian Railways) a technical wing of Ministry of
Indian Railways, Government of India.
They manufacture all type of railroad fasteners including type, PR type,
Rail Clips MK-I, MK-II, MK III, MK-IV, MK-V, pilfer proof rail clips, screw
spike, track spike, and many others to RDSO, AREA
The
They manufacture all types of clips in ‘PR’, 'e' and 'MK' series.
The pilfer proof clips are automatically locked into the heel seat
during insertion and can only be removed with a special extraction tool.
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. 39.73 |
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1 |
Rs. 81.37 |
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Euro |
1 |
Rs. 56.63 |
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 |
NO |
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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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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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