MIRA
INFORM REPORT
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Report Date : |
21.09.2007 |
IDENTIFICATION DETAILS
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Name : |
A R ENGINEERING WORKS |
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Registered Office : |
22 Okhla Industrial Estate, Phase-III, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1949 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELA05381F |
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Legal Form : |
Partnership Concern with an unlimited liability of the partners. |
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Line of Business : |
Manufacturer of Medium and Heavy Mechanical Engineering Equipments |
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 : |
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
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 : |
22 Okhla Industrial Estate, Phase-III, |
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Tel. No.: |
91-11-41612686, 41612764 |
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Mobile No.: |
91-9811018306 / 9811018305 |
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Fax No.: |
91-11-41612339 |
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E-Mail : |
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Website : |
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Area : |
3000 sq. meters |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Ashok Khanna |
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Designation : |
Partner |
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Date of Birth/Age : |
47 Years |
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Qualification : |
Graduate |
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Experience : |
25 Years |
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Name : |
Mr. Anil Khanna |
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Designation : |
Partner and Marketing Manager |
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Date of Birth/Age : |
45 Years |
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Qualification : |
Graduate |
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Experience : |
23 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Medium and Heavy Mechanical Engineering Equipments |
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Products : |
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Exports : |
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Products : |
All Products |
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Countries : |
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Terms : |
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Selling : |
Advance, LC and Cash / Credit basis
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Purchasing : |
Cash and Credit basis |
PRODUCTION STATUS:
Capacity to increase production by: 30%
GENERAL INFORMATION
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Suppliers : |
Own Manufacturing ( purchase of raw material from open market ) |
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Customers : |
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No. of Employees : |
About 160 |
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Bankers : |
Federal Bank Limited, |
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Banking
Relations : |
Satisfactory |
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Memberships : |
Okhla Industrial Estate Manufacturers Association |
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Group Companies |
A. R. Gears Private Limited E-2, Sector 17, Kavinagar Industrial Area,
Tel. No : 91-120-2701797 CIN : U74899DL1985PTC021030 Authorised Capital : Rs. 7.500 Millions Paid Up Capital : Rs. 7.486 Millions Incorporation Date : 25-05-1985 |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 6.000 millions |
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Borrowed : |
Nil |
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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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30.000 |
27.000 |
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Profit/Loss for the year |
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12% |
12% |
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Expected Sales (2007-08):Rs. 35.000 Millions
LOCAL AGENCY FURTHER INFORMATION
As Per Web :
History:
Started since 1949 with the name of Prem Engineering Works as a Partnership Concern. The Concern was divided in 1984-85 among five (5) brothers. Manufacturing of Rolling Mills equipment, Gears and Gear Boxes was established under the name of A.R. Engineering Works.
In 1989, A.R. Engineering Works established another sister organisation under
the name of A.R. Gears Private Limited, at
Profile:
A R Group of Companies are manufacturer of medium and heavy mechanical engineering equipments. They specialise in design, manufacture and supply Rolling Mill items and other steel plant equipments, as well as machinery for various other industries, specially Sugar, Cement and Power.
The A R Group of Companies strive to achieve highest level of satisfaction of
its clients ensuring quality products, manufactured by its two divisions
namely, A.R. Engineering Works and A.R. Gears Private Limited, each having
separate manufacturing facilities.
Products:
Apart from manufacturing and supplying machinery and equipments, they also provide consultancy and design for Bar, Wire Rod, Structural Hot Rolling Mills and Cold Rolling Mills. They manufacture Gears, Gear Boxes and Gear Coupling of all types for Rolling Mills and other application.
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.39.87 |
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1 |
Rs.80.11 |
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Euro |
1 |
Rs.56.19 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
8 |
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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 |
6 |
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--LEVERAGE |
1~10 |
6 |
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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 |
YES |
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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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50 |
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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