MIRA
INFORM REPORT
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Report Date : |
13.09.2007 |
IDENTIFICATION DETAILS
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Name : |
LUCENT ENTERPRISES |
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Registered Office : |
3, Navrang Para, Mavdi Plot, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1995 |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners. |
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Line of Business : |
Manufacturer, Exporter and Supplier of Automobile, Bearings, Diesel
Engine Parts. |
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 6700 |
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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 : |
3, Navrang Para, Mavdi Plot, |
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Tel. No.: |
91-281-2386097 |
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Mobile No.: |
91-9824288309 |
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Fax No.: |
91-281-2370811 |
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E-Mail : |
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Website : |
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Area : |
150 sq. yards (full land) |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Manoj Kumar |
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Designation : |
Partner |
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Date of Birth/Age : |
40 Years |
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Qualification : |
Automobile Engineer |
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Experience : |
18 Years |
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Name : |
Mr. Haresh T Parsana |
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Designation : |
Partner |
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Date of Birth/Age : |
38 Years |
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Qualification : |
Graduate (B Com) |
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Experience : |
12 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Supplier of Automobile, Bearings, Diesel
Engine Parts. |
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Products : |
Ø
Tapper Roller Bearing Ø
Automotive Sleeves Ø
Engine Valves Ø
Diesel Engine Spares Ø
Piston |
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Exports : |
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Countries : |
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Terms : |
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Selling : |
Cash / Credit (90 days) |
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Purchasing : |
Cash / Credit (90 days) |
GENERAL INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
12 |
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Bankers : |
Ø
Dena Bank,
Ø
Jivan Commercial Co-Op Bank,
Bhaktinagar Branch, |
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Facilities : |
C/C – Rs. 0.900 millions from Jivan Commercial Co-Op Bank |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
Mr. Sirish Trivedi Chartered Accountants |
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Tel. No.: |
91-281-2229655 |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 1.700 – 1.800 millions |
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Borrowed : |
-- |
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Total : |
Rs. 1.700 – 1.800 millions |
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] Share Capital |
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1.696 |
1.342 |
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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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1.696 |
1.342 |
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LOAN FUNDS |
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1] Secured Loans |
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1.009 |
1.042 |
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2] Unsecured Loans |
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0.016 |
0.017 |
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TOTAL BORROWING |
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1.025 |
1.059 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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2.721 |
2.401 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.885 |
0.951 |
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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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0.046 |
0.022 |
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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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1.999 |
3.149 |
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Sundry Debtors |
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4.619 |
2.943 |
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Cash & Bank Balances |
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0.724 |
0.653 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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0.926 |
0.566 |
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Total
Current Assets |
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8.268 |
7.311 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Advance form Customers |
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0.077 |
0.053 |
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Creditors |
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6.389 |
5.826 |
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Provisions |
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0.006 |
0.004 |
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Other Current Liabilities |
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0.006 |
0.000 |
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Total
Current Liabilities |
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6.478 |
5.883 |
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Net Current Assets |
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1.790 |
1.428 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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2.721 |
2.401 |
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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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2.263 |
1.478 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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2.263 |
1.478 |
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Profit/(Loss) Before Tax |
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0.822 |
0.385 |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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0.822 |
0.385 |
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Expenditures : |
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Advertising expenses |
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0.017 |
0.017 |
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Salary staff expenses |
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0.127 |
0.042 |
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Office expenses |
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0.055 |
0.050 |
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Audit fee expenses |
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0.008 |
0.000 |
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Interest |
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0.045 |
0.144 |
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Depreciation |
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0.080 |
0.135 |
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Other expenses |
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1.117 |
0.733 |
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Total Expenditure |
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1.449 |
1.121 |
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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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36.32 |
26.04 |
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Net Profit Margin (PBT/Sales) |
(%) |
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36.32 |
26.04 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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8.98 |
4.66 |
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Return on Investment (ROI) (PBT/Networth) |
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0.48 |
0.29 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.42 |
5.17 |
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Current Ratio (Current Asset/Current Liability) |
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1.27 |
1.24 |
Expected Sales (2008): Around Rs. 20.000 Millions
LOCAL AGENCY FURTHER INFORMATION
Trade References
Ø
Al – Nigom Trading,
Ø
Ø
As per website details:
Subject is very well
known in the Auto Spare Parts,
Components and Accessories industry. The company is a manufacturer,
exporter and supplier of Automobile,
Bearings, Diesel Engine Parts and dealing with topmost clients and has
been serving them for many years.
Since their inception, they have been
absolutely committed to a total quality culture and have successfully achieved
customer satisfaction. They are engaged in the manufacture and export of Bearings, Automotive Components, Diesel
Engine components etc.
All their products undergo rigorous quality
control as per industry norms to meet the specific requirements. At times, the Auto Components undergo special
testing equipment in order to check its performance and durability. They
maintain technical details and drawings for all batch of products manufactured
in order to ensure its high-quality and durability.
They have a team of skilled and trained
workforce and an efficient production unit replenished with state-of-the-art
machinery in order to undertake any sort of complex and simple manufacturing
processes. Their hard-working, experienced and expert management has enabled
them to achieve many acknowledgments.
They are committed to Total Customer Satisfaction, with
timely deliveries apart from consistency in quality and reliability.
Prime Competitive Advantages
v Better Quality Automotive parts
v Components
v Accessories
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.40.49 |
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1 |
Rs.82.38 |
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Euro |
1 |
Rs.56.14 |
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 |
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. |
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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