MIRA
INFORM REPORT
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Report Date : |
09.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZEENATH TRANSPORT COMPANY |
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Registered Office : |
Zeenath House, Cowl Bazaar, Bellary – 583 102, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Year of Establishment : |
1964 |
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Legal Form : |
Partnership Concern with an unlimited liability of the partners. |
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Line of Business : |
Exporter of Iron Ore and Mining Business |
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 250000 |
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Status : |
Good |
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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
records. Partners are reported as experienced and respectable businessmen.
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. |
LOCATIONS
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Registered Office : |
Zeenath House, Cowl Bazaar, Bellary – 583 102, Karnataka, India |
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Tel. No.: |
91-8392-241476/240085 |
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Mobile No.: |
91-9844085004 |
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Fax No.: |
91-8392-240462/240085 |
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E-Mail : |
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Website : |
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Area : |
3000 sq. ft. |
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Location : |
Owned |
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Mines : |
Sandur Taluka, Dist., Bellary, Karnataka |
PARTNERS
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Name : |
Mr. Syed Asad Ahmed |
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Designation : |
Partner |
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Date of Birth/Age : |
50 Years |
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Qualification : |
B. Com |
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Name : |
Mr. Khalid Ahmed |
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Designation : |
Partner |
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Date of Birth/Age : |
21 Years |
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Qualification : |
Engineering |
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Name : |
Mr. Farina Parvin |
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Designation : |
Partner |
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Date of Birth/Age : |
47 Years |
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Qualification : |
B. com |
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Name : |
Mr. Syed Asad Ahmed |
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Designation : |
Partner |
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Date of Birth/Age : |
24 Years |
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Qualification : |
B. E., MBA |
BUSINESS DETAILS
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Line of Business : |
Exporter of Iron Ore and Mining Business |
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Products : |
Ř Iron Ore |
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Exports : |
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Countries : |
China, Japan, Hong Kong, Singapore
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Terms : |
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Selling : |
L/C at sight |
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Purchasing : |
Credit 30-60 days basis |
GENERAL
INFORMATION
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Suppliers : |
Volvo India Private Limited |
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Customers : |
Ř Global Resources,
Hong Kong Ř Sesa Industries,
Goa, India Ř Cargil,
Singapore End Users |
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No. of Employees : |
Around 200 |
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Bankers : |
Ţ Canara Bank,
Bellary, Karnataka, India |
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Facilities : |
The concern enjoys cash credit facilities of Rs. 100.000 millions from
its banker. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
D V Sarovar and Company Chartered Accountants |
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Address : |
Bellary, Karnataka, India |
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Memberships : |
F. E. M. I. |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 50.000 millions |
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Borrowed : |
Nil |
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Total : |
Rs. 50.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2008 |
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Sales Turnover |
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2000.000 |
Expected Sales (2008-09) : Rs. 1500.000
LOCAL AGENCY
FURTHER INFORMATION
As per website
details
Zeenath group – as it is now called – started as small transport company “ZEENATH TRANSPORT COMPANY” in 60’s by Mr. Syed Abdul Thwab. By his wonderful business acumen and foresight he has developed the said firm in to Mining and exporting concern.
Subsequently Mr. Syed Ahmed joined the firm as partner, current managing partner, and with his dynamic style of management coupled with Mrs. Fareena Parveen’s (partner) strategic marketing skills nurtured the firm into result oriented firm with soft feel towards the workforce and social/ ecological responsible business firm in Mining and Exporting industry.
Recently Mr. Syed Asad Ahmed (Partner) joined hands with his father and managing Director to take the Zeenath Group to new plain. His expertise in management (He is Post graduate in management from Brunel University, Uxbridge, United Kingdom) and new innovative approach coupled with global outlook, helping group to diversify its business portfolio and to upkeep sustainable high growth. With this vast experience in the industry and modern management and marketing skills, Group stared as Zeenath Transport Company has becoming “ZEENATH GROUP”. Consisting Iron ore Mining and processing unit, 100% Export Oriented Unit and Steel Manufacturing Unit.
Resources
The Mines : Iron Ore Mines of Sandur region of Karnataka, India, encompassing Sandur, Hospet and Bellary taluks of Bellary district, are well known for qualitative high grade ore.Their mines are situated at Ramghad, of same Sandur region, and are open cast iron mines.
Plant and Machinery :Their production plant are well equipped with high efficiency machineries to facilitate mechanized and efficient and qualitative production to cater the needs of their global customers.
Transportation : Any mining industry needs efficient logistic system which can perform in time bound manner. They have well connected, efficient logistic support from their service providers and that network well handled with co-ordination.
Human Resource : Their Plants are occupied by skilled and efficient work force to handle sophisticated machineries and led by dynamic managers.
Administration Office, situated at Bellary is occupied by well experienced and
professional executives, who will supervise and co- ordinate with field staff to
achieve the targets and sustain the continuous growth. Total count of the work
force is more than 300.
PRODUCTS:
• IRON ORE FINES OF HIGH GRADE
• CALIBRATED IRON ORE
• LUMPS
• RED OXIDE
MARKET :
• The Company supplies iron ore primarily against Spot rate contracts and have
a strong customer base in overseas mainly in China and domestic market.
• It is shipping high-grade, medium-grade iron ore to overseas customers and
also domestic customers and pig iron/steel producers, demand from whom is continuously
rising.
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] 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.49.22 |
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UK Pound |
1 |
Rs.73.03 |
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Euro |
1 |
Rs.63.14 |
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 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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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54 |
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/normal. |
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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