MIRA INFORM REPORT

 

 

Report Date :

05.10.2007

 

IDENTIFICATION DETAILS

 

Name :

SABIN ENTERPRISES

 

 

Registered Office :

28, 3rd Floor, Sucheta Niwas, 285, SBS Road, Fort,  Mumbai – 400 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

1993

 

 

Legal Form :

Sole Proprietory concern

 

 

Line of Business :

Manufacturer of Manual Machines, Vibrating Machines, Hydraulic type machine, Manual Cum Vibrating Machine, Hydraulic Cum Vibrating Normal machine, Mini Type machine, Concrete mixers, Moulds.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 4000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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

 

Registered Office/Factory:

28, 3rd Floor, Sucheta Niwas, 285, SBS Road, Fort,  Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-66317787 / 66317789 / 22703684

Mobile No.:

91-9820154283

Fax No.:

91-22-22703685

E-Mail :

sabin93@vsnl.net

Website :

www.blockmachines.com

Area :

150 sq.fts (Office)

1 Acres (Factory)

Location :

Owned

 

 

SOLE PROPRIETOR

 

Name :

Mr. Sasidharan Govindan

Designation :

Proprietor

Date of Birth/Age :

51 Years

Qualification :

Graduate

Experience :

30 Years

 

 

BUSINESS DETAILS

 

Line of Business :

 Manufacturer of Manual Machines, Vibrating Machines, Hydraulic type machine, Manual Cum Vibrating Machine, Hydraulic Cum Vibrating Normal machine, Mini Type machine, Concrete mixers, Moulds.

 

 

Products:

·         Manual Machines

·         Vibrating Machines

·         Hydraulic type machine

·         Manual Cum Vibrating Machine

·         Hydraulic Cum Vibrating Normal machine

·         Mini Type machine

·         Concrete mixers

·         Moulds

 

 

Exports :

 

Products :

All Products

Countries :

Yemen, Syria, Guyana, Bahamas, Trinidad, Tobago, Jamaica. All countries worldwide except European countries.

 

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

22 (5 in Office and 17 in Factory )

 

 

Bankers :

·         Karnataka Bank Limited

Address: Overseas Branch

 

·         Kotak Mahindra Bank

Address: Fort Branch

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Mukesh Mehta and Associates

Chartered Accountants

Address :

Mumbai – 400 003, Maharashtra, India

Tel. No.:

91-22-23453648

 

 

Associates/Subsidiaries :

Saurabh Industrial Services

Address: 28, 3rd Floor, Sucheta Niwas, 285, SBS Road, Fort,  Mumbai – 400 001, Maharashtra, India

Activity: Manufacturer of packing materials

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs. 1.000 million

Borrowed :

---

Total :

Rs. 1.000 million

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

31.03.2007

31.03.2006

Sales Turnover

 

20.000

15.000

 

Expected Sales (2007-08) : Rs. 35.000 millions

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

TRADE REFERENCE:

 

·         Florizel Campel, Jamaica

·         Providence Enterprises, West Indies

·         Southern Construction Company Limited, Sri Lanka

 

WEBSITES DETAILS:

 

Subject is a young organization, established in 1993, with a view to export various packaging machinery from India since there was very good demand in all types of packing machine during that time.

 

They have started exporting packing machine from small  packing unit of 5 gm up to 5 kg capacity to different continents of the world. The products range from powder, liquid, paste and commodities like rice, coffee, sugar, pulses, etc. This they were purchasing from reputed companies with ISO recognition. During middle of the last decade of the 20th century i.e. 1995-96, there was a very good demand in that type of machinery and hectic competition in various parts of the world and the business was very tough. Suppliers offered substandard quality of  machines in very cheap prices, as in this field, many companies came up and started manufacturing without implementing any good technology. One who manufactured good machines were forced to close down because of not getting good prices for the good quality offered by them.

 

During that time, The founder  of the company, namely Sasidharan Govindan, a commerce graduate, thought of the diversification of the products. He did a market research of the upcoming market, experimenting which field of products and material is in the top list in India. Sasidharan immediately came out with a conclusion that their technology and machines in the field of 'Construction Machinery' is going up tremendously and there was a very strong buying market all over the world. Needless to say Sasidharan is having a high profile track record in handling all types of engineering goods, especially complete plants and machinery for plastic processing, tin container machinery, sheet metal machinery and wood working machinery and exported lots of complete plants and machinery to East African and Middle East countries since 1976. He also had a vast knowledge in the technical field and of marketing the various goods in the international market including the tastes and preferences of buyers and regions where they can cater the goods in a big way. They have exported their goods to Kenya, Tanzania, Uganda, Ethiopia in the east part of Africa, Durban, Johannesburg of the south of Africa and Benin, Iberia, Senegal, Ghana, Togo, Guinea, Nigeria, Zambia, and presently concentrating in the region of USA, and South American countries like Barbados, Jamaica, St. Vincent, Guyana, West Indies, Suriname, Curacao, The Grenadines, etc.

 

In 1998, they started a new unit in the South India, namely – Coimbatore – where there is plenty of easy availability of raw material and free labours. They started manufacturing cement block making machinery, concrete mixers, trolleys, etc. in small range and capacity. There was huge demand in these type of machinery including paver blocks, etc. hence, they started manufacturing another type of machines mainly for paver blocks, kerbstone, design bricks and so on. They have started their exports to West African countries and South American countries, manufacturing products as per buyer's specifications like size, design, shape. They have exported more than 100 machines to various destinations. Needless to mention that during a short period of time they have made all types of block making machinery like manual, vibration, vibration cum manual, vibration cum hydraulic, egg laying type and also now the semi automatic conveyorized type machine. Soon, they will be making the fully automatic system provided they get good market and high profile buyers who can give them good prices for the good technology machines. Their Production Manager, a Mechanical Engineer, had worked with many types of machines including the famous 'Zenith' machine from Germany and he has track record of working in various Gulf countries like Saudi Arabia with known machines and had vast knowledge in making any type of machines and moulds as per buyers' requirements.


Recently, they have also started manufacturing semi automatic conveyorised type block machines of medium capacity and high capacity machines and they have exported ¾ machines to USA, Libya , etc.

 

In  2006, they planned of another manufacturing unit to make big and high capacity versions of machines, since the existing factory, they were not able to make about 40 ft conveyor type of machines. They have now opened a new unit on 27th AUGUST 2006, very near to the existing factory, and now they can cater any number of machines within a short period of time.

 

Needless to say that today they are getting many orders and their style of working is quite different. They are committed to supply machines within the stipulated short delivery period, even within 7 days. This is the reason that they are getting more orders from the existing buyers regularly.


They have their factory spread at one acre of land and their shed is spread at 3500 sq. ft., outfitted with a tool room, workshop, office, workers' residence facilities, etc. Also they have their own fully air-conditioned and sophisticated office in the heart of Mumbai city (Fort) with 120 square feet of built up area and having a mezzanine floor of about 70 square ft where they can accommodate about 10-12 staff members. They have 24 hours online e-mail facility, fax, Xerox and have about 4 latest version of personal computers having all accessories like scanning. They have also the website facility and anybody from any corner of world can see their sites. Presently, they also have made an E-catalogue to their existing catalogue

 

They are manufacturers and exporters of HOLLOW BLOCK MACHINES of various types including manual machines, vibrating machines, hydraulic type, manual cum vibrating, hydraulic cum vibrating normal, mini type etc. They also make strong and good quality Concrete mixers and moulds for any type at very competitive prices. They have been manufacturing machines for the past 8 years and are exporting them since 1998.

 

Their clients hail from various countries such as Yemen, Syria, Guyana, Bahamas, Barbados, St. Lucis etc and they are developing their exports to countries like Trinidad,Tobago, Jamaica and Dominica. Their technical people were working in International companies who are manufacturing quality machines and have vast technical knowledge of different types of machines from different countries / companies.

 

They can also make machines as per the buyers requirements, for example if the machines can produce 4 stroke per cycle and if the client requires 5 stroke per cycle, the same can be accomodated in their machines and moulds can be updated accordingly as per their valued customers requirement.

 

They are making the machines from 1/4" thickness raw material whereas others are using lower thickness material than above and hence their machines are very strong and can make production for two shifts continuously and also put in long time use provided they give proper maintenance.

 

Recently they had developed a new version of their model SHM 105 M860 which can give 16 Block per stroke and make about 2500 nos of Blocks per 8 Hour shift of size 400 x 200 x 200 (16 x 8 x 8).

 

 

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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.39.56

UK Pound

1

Rs.80.30

Euro

1

Rs.55.76

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

---

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions