MIRA
INFORM REPORT
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Report Date : |
12.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHREE MAHALAXMI STEEL INDUSTRIES |
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Registered Office : |
Khasra No. 76, Village Ranholla, Nangloi, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
2001 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS29386A |
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PAN No.: [Permanent
Account No.] |
ABCFS6128C |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacturer and Exporter of Cable Trays and |
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.
Partners are 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 : |
Khasra No. 76, Village Ranholla, Nangloi, |
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Tel. No.: |
91-11-28364243 / 28365216 |
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Mobile No.: |
91-9810153439 / 9810030839 (Mr. Anish Gupta) |
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Fax No.: |
91-11-28365216 |
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E-Mail : |
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Website : |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Bal Krishan Gupta |
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Designation : |
Partner |
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Date of Birth/Age : |
58 Years |
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Qualification : |
Graduate |
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Experience : |
32 Years |
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Name : |
Mr. Saurabh Gupta |
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Designation : |
Partner |
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Date of Birth/Age : |
24 Years |
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Qualification : |
Graduate |
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Experience : |
3 Years |
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Name : |
Mr. Anish Gupta |
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Designation : |
Partner |
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Date of Birth/Age : |
28 Years |
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Qualification : |
Graduate |
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Experience : |
3 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Cable Trays and |
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Products : |
·
Cable Trays and ·
Slotted Angles and Racks ·
Perforated & Ladder Type Cable Trays ·
Pallet Racks ·
Mezzanine Floors
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Display Racks ·
Two Tier Structures |
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Exports : |
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Countries : |
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Terms : |
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Selling : |
Cash or 30 – 45 days Credit |
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Purchasing : |
Cash or 30 days Credit |
GENERAL INFORMATION
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Suppliers : |
Purchase of Raw Material form Local Market |
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Customers : |
All Leading Showrooms and Malls |
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No. of Employees : |
20 |
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Bankers : |
Syndicate Bank Dev NAgar, |
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Banking
Relations : |
Satisfactory |
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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35.000 |
30.000 |
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Gross Profit |
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12% |
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Profit After Tax |
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8% |
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Expected Sales (2007-08) : Rs.50.000 millions
LOCAL AGENCY FURTHER INFORMATION
History of the
Company:
Started in 1987 as trading of Slotted Angles and Cables Trays Raw in
2001 and started manufacturing.
Future Programs of
Company:
Wanted to increase Export
With the products that are designed for optimum performance, offering
compatibility and cost minimization; subject
have grown tremendously to become a name reckoned with appraise. Having more
than ten decades of uncompromising endeavor towards customer satisfaction and
impeccable quality, they have become the premier manufacturer and exporter of Cable Trays and
With
high economical production procedures, they have managed to keep their prices
reasonable. As a result, subject has developed a wide business network in its
country as well as across the globe. Their untiring dedications for
technological excellence and prompt services have gone a long way in
establishing an everlasting business relationship with their esteemed clients.
Along with an international reach, application experience, engineering
expertise and an equally large research and development commitment, they
deliver enhanced profitability and reliability to their customers. They employ
a reliable network of marketing personnel, distributors and agents to ensure
safe and timely delivery of products for them.
Products
In
collaboration with some of the well established suppliers and distributors of
raw materials, they produce optimum quality finished products to address the
technical needs of their clients. They manufacture and export products, keeping
in mind the customers requirements and modern industrial challenges.
Infrastructure
Their
robust infrastructure equipped with sophisticated machines enables them to
handle orders of various size and specifications. They have erected a
world-class production house where their team members get full facilities to
showcase their talent and skills. Their production process is executed by
modern technologies with latest computerized machineries. subject infrastructure
and workforce together deliver a superior range of products that have witnessed
increasing demands in the competitive market. They are on the leading edge of
technology with their fully equipped research center, which is working round
the clock to develop new and innovative products.
Quality
They
are a pro-active company, innovating and researching new production techniques
to revolutionize the industry. Their venture into this business has provided
solutions to the diversified needs of their clients via integrating innovative
production techniques and impeccable quality at each stage of product
development subject team of quality control inspectors work with utmost
dedication and utilize their skills to nurture quality at all the levels of production
stage. Their sophisticated warehouse is the backbone of the company with the
capacity to execute and store bulk amount of orders as per the specific
requirements of the customers.
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.39.33 |
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1 |
Rs.79.74 |
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Euro |
1 |
Rs.55.74 |
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 |
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/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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