MIRA
INFORM REPORT
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Report Date : |
03.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
VIVEK EXPORTS |
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Registered Office : |
‘Ganga Maiya’, Gor Na Kuwa, Vallabh Vidyanagar Road, Anand, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
18.06.1990 |
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PAN No.: [Permanent
Account No.] |
AABEV9976B |
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Legal Form : |
Partnership concern with an unlimited Liability of the partners. |
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Line of Business : |
Manufacturer, Trader, Exporter And Importer Of Automotive Spare Parts
For 2 Wheeler, 3 Wheeler, Car, Tractors And Trucks. |
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 20000 |
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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. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Mukesh Patel |
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Designation : |
Partner |
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Contact No.: |
91-9825026144 |
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Date : |
03.04.2008 |
LOCATIONS
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Registered Office : |
Ganga Maiya Gor Na Kuwa, Vallabh Vidyanagar Road, Anand, Gujarat,
India |
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Tel. No.: |
91-2692-240205 |
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Mobile No.: |
91-9825026144 |
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Fax No.: |
91-2692-241823 / 251917 / 240205 |
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E-Mail : |
vivekexports90@gmail.com |
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Website : |
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Area : |
4000 sq fts |
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Location : |
Owned |
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Godown : |
Subhash Road, Anand, Gujarat |
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Tel. No.: |
91-2692-250436 |
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Area : |
1200 sq ft |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Mukesh B. Patel |
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Designation : |
Partner |
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Date of Birth/Age : |
47 years |
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Qualification : |
H.S.C. |
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Name : |
Mr. Bhupesh B. Patel |
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Designation : |
Partner |
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Date of Birth/Age : |
44 years |
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Qualification : |
H.S.C |
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Name : |
Mr. Munesh B. Patel |
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Designation : |
Partner |
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Date of Birth/Age : |
41 years |
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Qualification : |
Mechanical Engineer |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Trader, Exporter And Importer Of Automotive Spare Parts
For 2 Wheeler, 3 Wheeler, Car, Tractors And Trucks. |
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Exports : |
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Countries : |
African Country, Dubai, Asian Country |
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Imports : |
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Products : |
Parts of Tractors |
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Countries : |
African Country |
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Terms : |
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Selling : |
L/C |
GENERAL
INFORMATION
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Customers : |
Wholesalers |
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No. of Employees : |
10 |
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Bankers : |
Axis bank Limited, Vidhya Nagar Branch, Anand |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Upendra K. Shah and Company (Chartered Accountant) |
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Address : |
Dina Complex, Subhash Road, anand |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 5.000 Millions (Estimated) |
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Borrowed : |
0.000 |
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Total : |
Rs. 5.000 Millions (Estimated) |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2008 |
31.03.2007 |
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Sales Turnover |
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20.000 |
15.000 |
LOCAL AGENCY
FURTHER INFORMATION
AUTO INDUSTRY
The Indian
automobile industry is going through a technological change where each firm is
engaged in changing its processes and technologies to sustain the competitive
advantage and provide customers with the optimized products and services.
Starting from the two wheelers, trucks, and tractors to the multi utility
vehicles, commercial vehicles and the luxury vehicles, the Indian automobile
industry has achieved tremendous amount of success in the recent years. The well-developed Indian automotive industry
ably fulfils this catalytic role by producing a wide variety of vehicles:
passenger cars, light, medium and heavy commercial vehicles, multi-utility
vehicles such as jeeps, scooters, motorcycles, mopeds, three wheelers, tractors
etc.
The automotive
sector is one of the core industries of the Indian economy, whose prospect is
reflective of the economic resilience of the country. Continuous economic
liberalization over the years by the government of India has resulted in making
India as one of the prime business destination for many global automotive
players. The automotive sector in India is growing at around 18 per cent per
annum.
The Indian
automotive industry started its new journey from 1991 with delicensing of the
sector and subsequent opening up for 100 per cent FDI through automatic route.
Since then almost all the global majors have set up their facilities in India
taking the production of vehicle from 2 million in 1991 to 9.7 million in 2006
(nearly 7 per cent of global automobiles production and 2.4 per cent of four
wheeler production).
The cumulative
annual growth rate of production of the automotive industry from the year
2000-2001 to 2005-2006 was 17 per cent. The cumulative annual growth rate of
exports during the period 2000-01 to 2005-06 was 32.92 per cent. The production
of the automotive industry is expected to achieve a growth rate of over 20 per
cent in 2006-07 and about 15 per cent in 2007-08. The export during the same
period is expected to grow over 20 per cent.
Advantage India
India holds huge
potential in the automobile sector including the automobile component sector
owing to its technological, cost and manpower advantage. Further, India has a
well-developed, globally competitive Auto Ancillary Industry and established
automobile testing and R&D centres. The country enjoys natural advantage
and is among the lowest cost producers of steel in the world. The Indian
automobile industry today boasts of being the largest three wheeler second
largest two wheelers manufacturers in the world, world largest motorcycle manufacturer
is in India, second largest tractor manufacturer in the world, fifth largest
commercial vehicle manufacturer in the world and third largest car market in
Asia.
Investment
Opportunities
Establishing
Research and Development Centres
Establishing Engineering
Centres
Passenger Car
Segment
Two Wheeler Segment
Heavy truck Segment
Production
One of the largest
industries in India, automotive industry has been witnessing impressive growth
during the last two decades. Abolition of licensing in 1991, permitting
automatic approval and successive liberalization of the sector over the years
have led to overall development of the automobile industry. The freeing of the
industry from restrictive environment, on the one hand, helped it to
restructure, absorb new technologies, align itself to global developments and
realize its potential and on the other hand, this has significantly increased
industry's contribution to overall industrial growth in the country. The
automobile industry witnessed a growth of 19.35 percent in April- July 2006
when compared to April- July 2005.
Domestic Sales
Ø
The figures
for April-January 2008 over April-January 2007 indicate that domestic sales of
automobiles decelerated with a negative growth rate of (-) 4.82 percent.
Ø
The cumulative
growth of the Passenger Vehicles segment during April-January 2008 was 12.79
percent. Passenger Cars grew by 12.75 percent, Multi Purpose Vehicles by 23.60
percent and Utility Vehicles by 8.95 percent in April-January 2008 compared to
the same period last year.
Ø
In April-
January 2008, the Commercial Vehicles segment grew by 2.98 percent over the
same period in 2007. Light Commercial Vehicles recorded a growth of 13.84
percent; however, Medium & Heavy Commercial Vehicles witnessed a fall by
4.55 percent.
Ø
Three Wheelers
sales fell by 8.54 percent with sales of Goods Carriers decreasing by 19.34
percent. Passenger Carriers also fell with a negative growth rate of 0.84
percent during the period.
Ø
Two Wheeler
sales registered a negative growth of 8.04 percent during April-January 2008
over April-January 2007. Though Moped and Scooter segments grew by 18.23
percent and 14.68 percent respectively, Motorcycle and Electric Two Wheeler
segments declined by 12.43 percent and 39.27 percent respectively.
Exports
Automobile Exports
saw a growth rate at 18.15 percent during April- January 2008.
Exports of two
wheelers segment grew by 27.07 percent, Commercial Vehicles exports grew by
17.88 percent and Passenger Vehicles exports at 4.89 percent in April-January
2008 over the same period last year and 3-Wheelers exports declined by 2.23
percent during this period.
Auto Components Industry
Surge in automobile
industry since the nineties has led to robust growth of the auto component
sector in the country. In tandem with the industry trends, the Indian component
sector has shown great advances in recent years in terms of growth, spread,
absorption of new technologies and flexibility. Indian auto component industry
has seen major growth with the arrival of world vehicle manufacturers from
Japan, Korea, US and Europe. Today, India is emerging as one of the key auto
components center in Asia and is expected to play a significant role in the
global automotive supply chain in the near future.
The auto parts
industry has emerged as one of India's fastest growing manufacturing sectors
and a globally competitive one. The auto components industry in India is
dominated by around 500 key players, which contribute more than 85 percent of
India's production. The industry has very deep forward and backward linkages
with almost every other engineering manufacturing sector of the economy. It
supports industries like automobiles, machine tools, steel, aluminum, rubber,
plastics, electrical, electronics, forgings and machining.
India has also
emerged as an outsourcing hub for auto parts for international companies such
as Ford, General Motors, Daimler Chrysler, Fiat, Volkswagon, and Toyota.
India enjoys cost
advantage with regard to castings and forgings. The manufacturing costs in
India are 25 to 30 percent lower than its western counterparts. India's
competitive advantage does not come from costs alone, but from its full service
supply capability.
To encourage the
smooth growth of the industry, the Government of India has allowed automatic
approval for foreign equity investment up to 100 percent of manufacture of auto
components. Further, the engineering export promotion council under the aegis
of Ministry of Commerce and Industry, Government of India, over the years has
been engaged in promoting exports of engineering goods including auto parts.
Besides, the Automotive Component Manufacturers' Association of India (ACMA)
represents the Indian auto component industry. The association is engaged in
promoting trade, technology upgradation, quality enhancement, and collection
and dissemination of information.
Exports of auto-components
India is being
preferred as low cost country by various global OEMs for sourcing auto
components for their worldwide production. As a result of this, Indian auto
component industry's export scenario has changed. Now, 75 per cent of its
export is directed to OEM and rest is feeding the after sales market overseas.
while auto component exports grew by 40 per cent in 2004-05 to a level of US$
1.4 billion, it registered a growth rate of 46 per cent in 2005-06 and crossed
US$ 2 billion mark. A high growth of over 40 per cent is expected to
materialize in 2006-07 as well. Total export was of the order of Rs. 6237 crore
during the year 2004-05 and Rs. 9127 crore during the year 2005-06.
Foreign Direct Investment
The Indian auto
industry with a turnover of US$ 12 billion and the auto parts industry with a
turnover of US$3 billion offer excellent scope for FDI. Automatic approval for
foreign equity investment upto 100 per cent of manufacture of automobiles and component is permitted. The
automobile industry is delicensed
Import of components is freely allowed
Automotive Mission Plan 2016.
The Government of
India is drawing up an Automotive Mission Plan 2016 (AMP 2016) that aims to
make India a global automotive hub. To maintain the high rate of growth of the
automotive industry and to retain the attractiveness of Indian market and
further enhancing the competitiveness of Indian companies, the Government has
prepared the mentioned ten-year Automotive Mission Plan. The idea is to draw a
futuristic plan of action with full participation of the stakeholders and to
implement it in mission mode to meet the challenges coming in the way of growth
of industry. Through this Automotive Mission Plan, Government also wants to
provide a level playing field to the players in the sector and to lay a
predictable future direction of growth to enable the manufacturers in making a
more informed investment decision.
Major players in
the automobile sector
Ø Tata
Ø Mahindra
Ø Ashok Leyland
Ø Bajaj
Ø Hero Honda
Ø Daimler Chrysler
Ø Suzuki
Ø Ford
Ø Fiat
Ø Hyundai
Ø General Motors
Ø Volvo
Ø Yamaha
Ø Mazda
Trade References:-
v
Akshar Auto Spare (Kenya)
v
Bharat Panchal (Kenya)
v
Sangara Fishnet (Tanzania)
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.39.93 |
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UK Pound |
1 |
Rs.79.34 |
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Euro |
1 |
Rs.62.55 |
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 |
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 |
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 |
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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48 |
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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