MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SARA INCORPORATED |
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Registered Office : |
1518, Maker Chambers V, Nariman Point, Mumbai – 400 021, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.05.2003 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS42934D |
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PAN No.: [Permanent
Account No.] |
AAYES4898Q |
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Legal Form : |
Partnership concern with an Unlimited liability of the partners. |
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Line of Business : |
Distributor of Carbon Steel, stainless steel. |
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 23016 |
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Status : |
Good |
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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. Trade
relations are fair. 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 : |
1518, Maker Chambers V, Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-65746696 /7 |
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Mobile No.: |
91-9987098000 |
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Fax No.: |
91-22-66335610 |
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E-Mail : |
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Website : |
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Area : |
1000 sq.fts |
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Location : |
Owned |
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Branches Office: |
Western Region: 1st floor, Parmar Gallery, Wanowrie, Pune – 411 040, Tel No. 91-20-6601 0539 /49 Fax No: 91-20-6601 0541 Email: info@sarainc.com Area: 4000 sq.fts Location: Owned Eastern region: 33A, Tel no: 91-33-2464 4734 Fax No: 91-33-2464 4732 Email: info@sarainc.com Area: 4000 sq.fts Location: Owned Northern Region: C -1A Nizamuddin (East),. Tel No: 91-11-5182 5204 Fax No: 91-11-2692 1585 Email: info@sarainc.com Area: 4000 sq.fts Location: Owned Southern Region: 2-3-527/8/9, Tanman Apartments, Ground Floor, D V Colony, sir Ronald
Ross road, Secunderabad – 500 003, India Tel No.: 91-40-2772 0952 Fax No: 91-40-2781 4162 Email: info@sarainc.com House No. 504. Model Colony, Jwalapur,
Tel No: 91- 1334-224063 Email: info@sarainc.com |
PARTNERS
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Name : |
Mr. Neeraj Rawal |
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Designation : |
Partner |
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Address : |
101-202 Benhur Apartments, |
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Date of Birth/Age : |
56 years |
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Qualification : |
B Com |
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Experience : |
30 years |
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Name : |
Mr. Sameer Savara |
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Designation : |
Partner |
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Address : |
11 Nishant Little |
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Date of Birth/Age : |
37 years |
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Qualification : |
MBA |
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Experience : |
15 years |
BUSINESS DETAILS
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Line of Business : |
Distributor of Carbon Steel, stainless steel. |
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Agencies Held : |
Indian Agency: · Bhandari Foils and tubes Limited Foreign Agency: · AAF Limited · Tube tech · Turbine Services Limited · Wai Gin Limited · Turbec SPA · ESI EUROSILO · Sapura Mars · Stork H and E Turbo Blading Inc · BACO SPAL · Capstone Turbine · Turbo Service · Braden · Teleportation Systems Coal Combustion |
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Terms : |
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Purchasing : |
L/C |
GENERAL INFORMATION
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No. of Employees : |
30 |
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Bankers : |
Vijaya Bank Address: Andheri |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Nilesh Kapadia Chartered Accountants |
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Address : |
2104, Amrapali, RS Maharaj Marg, Mumbai – 400 069 |
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Tel. No.: |
91-22-28394345 |
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Associates/Subsidiaries : |
· S V Distributors Private limited Address: 228, Keytuo Industrial Estate, Mumbai
– 400 059, Activity: Distributors of FMCG products · Premier Liquor Distributors Private limited Address: 308, A Wing, 3rd
floor, clover Centre, Pune – 400 001 Activity: Distributor of Titan Watches |
CAPITAL STRUCTURE
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Capital Investment : |
NA |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Partners Capital |
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5.754 |
1.476 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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5.754 |
1.476 |
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LOAN FUNDS |
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1] Secured Loans |
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7.265 |
1.282 |
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2] Unsecured Loans |
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2.629 |
0.000 |
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TOTAL BORROWING |
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9.894 |
1.282 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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15.648 |
2.758 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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11.597 |
9.481 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.654 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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1.815 |
5.048 |
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Cash & Bank Balances |
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0.616 |
0.273 |
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Other Current Assets |
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2.194 |
0.913 |
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Loans & Advances |
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0.223 |
0.047 |
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Total
Current Assets |
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4.848 |
6.281 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.451 |
13.004 |
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Provisions |
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0.000 |
0.000 |
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Total
Current Liabilities |
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1.451 |
13.004 |
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Net Current Assets |
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3.397 |
[6.273] |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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15.648 |
2.758 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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11.495 |
11.495 |
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Other Income |
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0.299 |
0.332 |
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Total Income |
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11.794 |
11.827 |
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Profit/(Loss) Before Tax |
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3.375 |
3.807 |
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Provision for Taxation |
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1.106 |
1.002 |
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Profit/(Loss) After Tax |
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2.269 |
2.804 |
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Earnings in Foreign Currency : |
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Export Earnings |
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11.495 |
11.495 |
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Other Earnings |
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0.299 |
0.332 |
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Total Earnings |
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11.794 |
11.827 |
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Expenditures : |
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Depreciation |
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1.008 |
1.111 |
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Interest |
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0.118 |
0.150 |
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Administrative and Selling Expenses |
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7.292 |
6.757 |
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Total Expenditure |
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8.418 |
8.018 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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19.23 |
421.79 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.29 |
33.11 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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20.52 |
24.15 |
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Return on Investment (ROI) (PBT/Networth) |
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0.58 |
2.57 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.97 |
9.67 |
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Current Ratio (Current Asset/Current Liability) |
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3.34 |
0.48 |
LOCAL AGENCY FURTHER INFORMATION
WEBSITE DETAILS:
Subject is a member of
the Sara Group of Companies. With six offices, over 300 employees and annual
revenues of over $125 million, the Sara Group is a diverse group with primary
focus on distribution of FMCG products in
The Group was
founded in 1978 by Mr. Neeraj Rawal and its other areas of activities include
manufacturing, hospitality and construction. The Group offers a wide range of
national and international products to serve a diverse group of customers
including the Government of India.
Service is an important aspect of their company. They are always
striving to provide their customers with superior service. At present they are
working with Bharat Heavy Electricals Limited, NTPC Limited, Oil and Natural
Gas Corporation of
The Group via Sara
Inc. has established itself as a dominant player in the sale of critical
equipment on behalf of leading companies of the world. Their business-related
knowledge is vast and emanates from personally developing the business with a
hands-on approach in variety of commercial activities. This enables favorable
specifications being inserted in the tender resulting in success for both their
partners and us.
The company has via
its promoters gained valuable experience in dealing with various Public Sector
Undertaking such as Bharat Heavy Electrical Limited., Mazgaon Docks Limited,
Cochin Shipyard Limited, Oil and Natural Gas Corporation of
Activities :
Their focus has been
to introduce new technologies in the power, oil, gas and telecom industries.
They have been particularly successful in supply of equipment for the oil and
gas industries.
They have also
revamped equipment sold by the erstwhile
Revamping equipment
is a complex process: One needs to understand the expected performance and
process changes while analyzing the existing equipment.
During a revamp the
equipment provides a challenge as well as an opportunity. Underutilized
potential of the existing equipment provide great opportunities. Suitable
identification of both limits and opportunities provides the best investment
opportunity. No two revamps are the same, every plant, equipment and process
has diverse limits and various opportunities.
Correctly
integrating equipment and process evaluation requires good field test data, an
accurate analysis of the same, and putting together the proper team of
generalists and specialists for a given revamp.
Projects
Undertaken...
The group via its
promoters have undertaken various projects.
The significant
ones being
a) Repair of two
offshore cranes for
b) Revamping of Ventilation
Systems of Two Solar Make Turbines
c) Supply of a new
HVAC system of 500 tonnes capacity for a control room at an offshore Platform
d) Uploading of
software for 25,000 CMDA mobile phones on an emergency basis
e) Supply of two
offshore cranes for
f) Developed
business for an American Wireless company with all of
g) Supply of Four
Air Intake Systems for V 94.2 Gas Turbines
h) Repair of Hot
Path Components for Alstom Turbines.
Company Details:
S.V.Distributors
Private Limited is the distributor of FMCG products such as Kingfisher and
McDowell’s across
Premier Liquor
Distributors Private Limited is located at Pune and distributes among others
Titan Watches and Himalayan Mineral Water.
Iced Desserts and
Food Parlours (I) Private Limited is the distributor of Baskin Robbins.
Richmond Hotels
Private Limited runs a service apartment at
Sumosons Exports
Private Limited is located at Kolkatta and distributes a wide product range in
the states of Orissa, West Bengal, Assam and Meghalaya.
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.39.79 |
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1 |
Rs.81.62 |
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Euro |
1 |
Rs.56.98 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
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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54 |
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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