MIRA
INFORM REPORT
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Report Date : |
15.10.2007 |
IDENTIFICATION DETAILS
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Name : |
KARTHIK INDUSTRIES |
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Registered Office : |
B – 105, Industrial Estate, Peenya 3rd Stage, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1994 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRK05904D |
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PAN No.: [Permanent
Account No.] |
AAHFK0827C |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacturer of Precision CNC Machine components, Keys, Keyway
Broached Components and Tooling Components. |
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. Partners are reported as experienced and respectable businessmen. 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/Factory : |
B – 105, Industrial Estate, Peenya 3rd Stage, |
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Tel. No.: |
91-80-28361211 |
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Mobile No.: |
91-9448510751 |
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E-Mail : |
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Area : |
5700sq.fts |
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Location : |
Owned |
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PARTNERS
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Name : |
Mr. R. Suresh |
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Designation : |
Partner |
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Date of Birth/Age : |
42 years |
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Qualification : |
B.E. |
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Experience : |
15 years |
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Name : |
Mr. R. Girish |
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Designation : |
Partner |
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Date of Birth/Age : |
38 years |
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Qualification : |
B.E. |
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Experience : |
13 years |
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Name : |
Mrs. Suma Suresh |
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Designation : |
Partner |
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Date of Birth/Age : |
37 years |
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Qualification : |
B.Sc |
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Experience : |
10 years |
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Name : |
Mrs. Sandhya Girish |
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Designation : |
Partner |
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Date of Birth/Age : |
28 years |
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Qualification : |
B.Com |
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Experience : |
6 years |
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BUSINESS DETAILS
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Line of Business : |
Manufacturer of Precision CNC Machine components, Keys, Keyway
Broached Components and Tooling Components. |
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Exports : |
Deemed Exports to |
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Terms : |
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Selling : |
Credit (30 days) |
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Purchasing : |
L/C, Cash, Against Supply and Immediate Payment |
GENERAL INFORMATION
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Suppliers : |
³
Ideal Ferro Alloys, ³
Steel Grade industries, |
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Customers : |
³
Wendt India Limited, Hosur ³
SKF Bearings Limited, ³
Motors industries Company Limited, |
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No. of Employees : |
10 ( 8 Technical, 2 Others) |
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Bankers : |
State Bank of Yeshwanthpur, |
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Facilities : |
Rs.0.400 million |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
T. S. Nagaraj and Rajsekar Chartered Accountants |
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Address : |
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Memberships : |
Peenya Industries Association |
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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14.000 |
12.000 |
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Profit/Loss for the year |
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Indicated around
8% |
NA |
Expected Sales (2007-08) : Rs.15.000 millions
LOCAL AGENCY FURTHER INFORMATION
Average Value of Inventories at any given time: Rs.0.500 million
As Per Web Details
Profile:
The liberalization of the Indian economy from the restrictive environment has helped the Industrial sector to emerge as a global giant. Moreover, easy finance with aggressive marketing strategies has played a big role in boosting the demand for quality equipments, products and other related machine component needs of industry. Subject is a renowned manufacturer of a wide array of Precision CNC Turned, Jointless Components, Keyway Breached Components, etc. Their company believes in delivering technology-driven business solutions that meet the strategic objectives of their clients. They have catered to the needs of some of the most well known MNCs.
They deliver unmatched business value to their customers
through a combination of process excellence, quality frameworks and service
delivery innovation. Their spirit is an indivisible synthesis of manifesting
earnestness to win, acting with sensitivity and being unyielding on quality.
This spirit is the core of their company; it is rooted in current reality, but it
also represents what they aspire to be – thus making them future active. With
over a decade of experience, they have established themselves as a leader and
pioneer in global mechanical engineering products with a proven track record of
delivering superior services and solutions to clients.
Quality Assurance
Subject holistic, enterprising and fine quality approach integrates multiple
quality processes. Their processes are structured for quality - their process
documentation and consulting tools ensure that they have everything on record,
their automation tools automate the complete product management or engineering
process, their tools build the necessary quality orientation and their
visibility tools help monitor projects on a real-time basis and ensure that the
customer is never out of touch. They procure premium quality raw materials such
as the requisite ferrous and non-ferrous metals and plastics from reliable
vendors under the supervision of quality inspectors.
Infrastructure
Subject constantly invests in the upgradation and modernization of the
manufacturing facilities. Their sophisticated manufacturing facility comprises
of highly advanced technology such as
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 |
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 |
NO |
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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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