MIRA
INFORM REPORT
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Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
PURUSHOTHAM ENGINEERING INDUSTRIES |
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Registered Office : |
A- 16, HMT Industrial Estate, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1965 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRP00231A |
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Legal Form : |
Partnership Concern with and Unlimited liability of the partners. |
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Line of Business : |
Manufacturers of products for shop inspection equipment,
machines tool accessories and M/C Tool components / Job works |
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 26000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a small concern in it’s field. 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/Factory : |
A-16, H M T Industries Estate, |
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Tel. No.: |
91-80-28389240 |
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Mobile No.: |
91-9845541008 |
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Fax No.: |
91-80-28389240 |
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E-Mail : |
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Area : |
10000sq.fts Build up 5000sq.fts |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. P.N. Purushotham |
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Designation : |
Partner |
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Date of Birth/Age : |
81 years |
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Qualification : |
LME |
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Experience : |
55 years |
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Name : |
Mr. P. Sarvottum |
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Designation : |
Partner |
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Date of Birth/Age : |
48 years |
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Qualification : |
B.E. (Mech) |
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Experience : |
25 years |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of products for shop inspection equipment, machines tool accessories and M/C Tool components / Job works |
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Products : |
Shop
Inspection Equipment like – ²
Cast- iron Surface plates ²
Angle plates,Sine Plates ²
Bench centres, Straight edges etc. Machine Tool
Accessories in particular Milling machine Cutter holding equipment like - ²
Stub Arbors ²
Long Milling Arbors ²
Reduction & extension Sleeves ²
ISO/Morse Taper adopters ²
Boring bars & Low cost vertical drilling ²
Milling cum boring machines ²
Wheel Balancing Stands for Grinding Machines. |
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Terms : |
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Selling : |
Credit (30 to 60 days) |
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Purchasing : |
Credit (30 to 60 dyas) |
GENERAL INFORMATION
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Suppliers : |
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D.F. Iron and Steel Company, ²
Alloy Steel Enterprises, ²
J.K.H. Enterprises, |
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Customers : |
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Ace Designers Limited, ²
Batlibois SPM Private Limited, ²
Micromatic Grinding Technology Limited, |
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No. of Employees : |
10 (Technical) |
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Bankers : |
Central Bank of |
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Facilities : |
C/C – Rs.0.650 million |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Shanmugaiah and Pandurang Associates Chartered Accountants |
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Address : |
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Memberships : |
²
Peenya Industries Association ²
KAASIA ²
PIA |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.0.650 million |
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Borrowed : |
-- |
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Total : |
Rs.0.650 million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
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Particulars |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
4.200 |
3.900 |
3.600 |
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Profitability: indicated around 15%
Expected Sales (2007-08) : Rs.4.500 millions
LOCAL AGENCY FURTHER INFORMATION
Average value of stock in trade: Rs.0.900 million
As Per Web Details
Company Profile:
Subject is a small scale industry,
an ancillary to the well known Indian Machine Tool Manufacturer M/s HMT Ltd.,
situated in
- Shop
Inspection Equipment: such as cast-iron surface plates, angle plates,
sine plates, bench centres, straight edges, manufactured to relevant
Indian and ISO standards. The material used is close grained machine tool
grade cast iron grade 20 having a BHN of 180-220, which is stress relieved
before finishing.
- Machine
Tool Accessories: in particular milling machine cutter holding
equipment like stub arbors, long milling arbors, reduction and extension
sleeves, ISO/M Taper adopters, boring bars and special to customer
requirement. These accessories are made out of alloy steel such as EN353,
EN354 which is case hardened to 55-58 HRC, threads maintained soft. The company
also manufactures Wheel Balancing Stands for Grinding Machines.
- The
company also manufactures low cost vertical drilling, milling cum
boring machine with co-ordinate table with ISO 40 spindle taper with
speed ranges of 63 to 2800 rpm. The company manufactures various
sub-assemblies and components as per customer specifications. Presently
the company are suppliers of a variety of machine tool spindles and
components to M/S Batliboi Engineers (SPM Division) and M/S Ace Designers
of Bangalore who one of the well known manufacturers of machine tools in
the country.
Potential
The products are well known in Indian market for their high standard of
workmanship and accuracy and well accepted by Public and Private Sector like
M/S H M T Ltd., BEL, BHEL, Ordnance Factory, Ashok Leyland Ltd., TVS Group of
Industries, Ace Designers, Batliboi Engineers (Bangalore) Ltd., B.F.W Bangalore
etc.
The company is well equipped with all the necessary inspection equipment’s to
produce a quality product.
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 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.40.26 |
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1 |
Rs.81.15 |
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Euro |
1 |
Rs.56.28 |
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 |
4 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
4 |
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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 |
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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41 |
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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