MIRA INFORM REPORT
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Report Date : |
20.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RELIANT CEMENT PRODUCTS |
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Registered Office : |
Lobo Complex, Munnur, Mangalore – 575017, Karnataka |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1992 |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the partners. |
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Line of Business : |
Manufacturer of Cement Products |
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 24000 |
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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 well established concern having steady business. Trade
relations are fair. Payments are usually correct and as per commitments. The company concern can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Lobo Complex, Munnur, Mangalore – 575017, |
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Tel. No.: |
91-824-2461880 |
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Mobile No.: |
91-9343567718 |
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Fax No.: |
91-824-2461406 |
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E-Mail : |
PARTNERS
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Name : |
Mr. Donald Lobo |
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Designation : |
Partner |
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Date of Birth/Age : |
52 years |
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Qualification : |
Electrical Engineer |
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Experience : |
25 years |
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Name : |
Mrs. Irene Lobo |
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Designation : |
Partner |
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Date of Birth/Age : |
70 years |
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Name : |
Ms. Mitilda Lobo |
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Designation : |
Partner |
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Name : |
Mr. M. Lobo |
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Designation : |
Partner |
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Name : |
Mr. S. Lobo |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cement Products |
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Products : |
³
RCC Door & Window Frames of Standard Sizes ³
RCC Spun Pipes ³
Precast Concrete Material ³
Building Materials like Portland Cement ³
Kadaba Slabs ³
Asbestos Sheets ³
Clay Tiles for Roofing ³
Design Clay Tiles for Walls & Roofing ³
Clay Bricks ³
Hollow & Solid Cement Blocks ³
Hardware for Buildings |
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Terms : |
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Selling : |
Credit (15 – 20 days) |
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Purchasing : |
Credit (15 days) |
GENERAL INFORMATION
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Suppliers : |
²
T. K. Enterprises, Mangalore ²
Karnataka Cement Sales, Mangalore |
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Customers : |
³ Reliance Infocom ³ Reliance Petroleum ³ Siemens ³ L & T ³
NMPT (New ³
³ Mangalore Refinery |
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No. of Employees : |
50 (8 Technical, 42 Other) |
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Bankers : |
Karnataka Bank Limited, Tokkottu, Mangalore |
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Facilities : |
Rs.1.200 millions |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Chartered Accountants |
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Memberships : |
Builders Association, Mangalore |
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Associates/Subsidiaries : |
Reliant Construction, Mangalore |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.6.000 millions |
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Borrowed : |
-- |
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Total : |
Rs.6.000 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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6.500 |
6.000 |
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Profit/Loss for the year |
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15% |
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LOCAL AGENCY FURTHER INFORMATION
Average value of inventories at any given time: Rs.2.500 millions
As per Web Details
Company Profile:
Subject is a leading trading company engaged in the manufacture of cement products, cement spun pipes, cement tanks, RCC chambers, RCC doors and windows, etc. Keeping pace with the technological advancement of raw material suppliers, extensive research and development and providing innovative solutions to difficult installation challenges, they have become one of the most diversified traders in the market.
Their Products
They are engaged in the manufacture of the following products:
³ RCC Door and Window Frames of Standard Sizes using M25 concrete after casting in rigid steel moulds with required vibration and compression and dip curing making provision for required fittings
³ RCC Spun Pipes as per IS 458 of 150 mm to 1200 mm diameter of NP2 & NP3 class, of standard length up to 2.5m
³ Precast Concrete Material as per customer requirements and specifications depending on the quantity required
³ They trade in Building Materials that include Portland Cement, Kadaba Slabs, Asbestos Sheets, Clay Tiles for Roofing, Design Clay Tiles for Walls & Roofing, Clay Bricks, Hollow & Solid Cement Blocks, Hardware for Buildings, etc.
Their Infrastructure
The unit started initially with the manufacture of RCC Doors
and Window Frames. The unit brought a revolution in the district of South
Kanara in the use of RCC Door and Window Frames, replacing the Traditional
Wooden Frames. Today, there are 6 new units coming up to meet the local demand.
In 1998, they diversified into production of RCC Spun Pipes and Water Tanks as
per market demand. They have supplied bulk material throughout the states of
Karnataka, Kerala and
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 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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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