MIRA
INFORM REPORT
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Report Date : |
14.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
R. S. SPRING INDUSTRIES |
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Registered Office : |
10-A, Village Gokulpur, Delhi 110094 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Year of Establishment : |
1980 |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturer of Industrial Springs. |
RATING &
COMMENTS
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MIRAs 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 8000 |
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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. Proprietor is
reported as experienced and respectable businessman. 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 : |
10-A, Village Gokulpur, Delhi 110094, India |
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Tel. No.: |
91-11-22811750 |
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Mobile No.: |
91-9810393838,9810039925,9911111039,9811221727 |
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Fax No.: |
91-11-22812195 |
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E-Mail : |
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Website : |
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Area : |
600 sq. mt [Owned] |
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Factory : |
C 11, Village Gokulpur, New Delhi 110094, India |
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Tel. No.: |
91-11-22811222 |
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Mobile No.: |
91-9911111039, 9911000011 ,9810393838 |
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E-Mail : |
91-11-22811222 |
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Area : |
180 sq mt. [Owned] |
SOLE PROPRIETOR
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Name : |
Mr. Ram Sanjeeven Vishkarma |
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Designation : |
Proprietor [Chairman] |
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Date of Birth/Age : |
53 Years |
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Qualification : |
Graduate |
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Experience : |
27 Years |
KEY EXECUTIVES
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Name : |
Mr. Madan Chand Vishkarma |
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Designation : |
Chief Executive Officer |
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Date of Birth/Age : |
28 Years |
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Qualification : |
Graduate |
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Experience : |
5 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Industrial Springs. |
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Products : |
ISO 9001:2000 certified company |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
PRODUCTION STATUS
Capacity to increase production by: 50 %
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
15 |
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Bankers : |
Union Bank of India, Krishna Nagar, New Delhi 110051 |
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Banking
Relations : |
Satisfactory |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 2.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 2.000 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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7.000 |
6.000 |
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Profit/Loss for the year |
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12% |
12 % |
Expected Sales (2007-08) : Rs. 10.000 millions
LOCAL AGENCY
FURTHER INFORMATION
Subject wanted to start export.
AS PER WEBSITE
Profile
Established in 1980, R.S. Spring is an ISO - 9001:2000 certified company engaged in production and supply of precision engineered springs for different industrial requirements. They have gained huge reputation for minute expertise, utilizing the advance technology in the production of quality springs. Since their inception, they started the company with the objective of putting their customers first and delivering the best products and services and that is exactly what happened. Today the company is working on a firm tradition of bringing you high quality springs and service solutions, which are among the best in every class. They are a customer oriented company and work with the objective of offering maximum customer satisfaction.
Products
Their collection of complete range of springs include all types of metal springs, circlips and washers. They believe in production-persistent improvement and increasing process yield and reaching flawless production. They are always at the service of their clients to give them a great deal. These following two factors are primary responsible for their success
1. Automation for production
facilities
2.
Computerized management system
Infrastructural Base
They have two manufacturing plants in Delhi with state-of-the-art facilities. Using this sophisticated infrastructure, they can manufacture products to satisfy custom made requirements. Their Proficient engineers are capable of designing and improving the manufacturing process and hence the quality by utilizing their superior skills and experienced background.
Quality Control System
R.S. Spring is an ISO - 9001:2000 certified company, effectively maintaining and improving ISO their quality assurance system. They regularly carry out improvement, modification and prevention programs to make their products and services better. Another reliability factor that is associated with them is 'after-sale system'. It has enabled them to multiply their client's list remarkably. They have established consistent working procedure through feeding, manufacturing and examination of finished products.
Subject is committed to manufacture springs meeting all client requirements and
supplying their products on time. They have a evolved delivery system in order
to ensure customer satisfaction. They are a company that functions under strict
work ethics dedicated towards quality measures.
Quality Measures
- Setting up
quality management system in accordance with ISO 9001:2000 for the
assurance of effective system operation and enforcement.
- Prime focus
on design and development and skill advance; pursuing excellent quality
and making upper-quality products.
- Assuring
on-time delivery and reliable after-sale service.
- They tend to
put special emphasis on customer comments that increases customer satisfaction.
- Keep on
improving, making the progress in product properties.
- Drawing up
annual quality plan and goal as a standard for continuous improvement.
Professional Management
They are company particularly emphasizing on teamwork and HR
efficiency. They make sure that all their members undergo strict training
programs that benefit them significantly in their career. They make them
possess considerable experiences in spring industry. Here are two aspects of
their management capabilities-
1. Functional and flat organizational
structure.
2.
Adopting MBO (Management By Objectives ), conducting system examination and
improvement program periodically.
R & D-continuous innovation
They are a very dynamic organization in a sense that they seek
continual improvement in the standard of their company and in the quality of
products and services they supply. To achieve this, they maintain the autonomy
of technical development. For this they have a well developed R & D
department making vital breakthroughs in the field of section of industrial
springs. Two major reasons supporting this departments are-
1. Material structure research
2.
Application of spring design experience and skill upgrade.
Consistent Performance
Whatever be the quantity or specification required, their expertise and quality
of service always remains the same. Modern techniques and flexible production
allow them to offer efficient service for small batch as well large orders.
Their manufacturing process is highly sophisticated and has been developed in
accordance with international standards. The entire procedure starts from
selection of raw materials and ends with the dispatch of finished goods and all
the stages passes through rigorous quality checks conducted by a team of quality
engineers and metallurgists.
Products
Designed to offer sufficient
resistance to compressive forces.
Excellent designing ensures
desired resistance to pulling forces.
Graded in spring constant and
force per unit distance displacement.
Developed to provide adequate
resistance to twist or rotation forces.
Made from variety of materials, viz.
steel, copper, bronze and alloys, as per need.
Manufacturing Facility
R S Springs has established a reckoned name in the spring
manufacturing due to its proficiency in the field and efficient product
development capabilities. The company's capabilities in this regard are well
reflected in the design & development of springs, sufficing the requirements
of distinct industrial units viz. railway, automobile, electrical equipment,
defence, etc.
The state-of-the-art manufacturing facilities, viz. production department,
testing & inspection department, warehousing facilities, packaging and
other departments have altogether contributed in enhancement of their
proficiency in the field. The complete processes involved in the sample
development, sample approval from the clients, product development, testing and
inspection of the material used, final product testing and delivery of the
ordered quantity are all carried out by a team of adept personnel.
Machinery used :
Apart from spring coiling & forming and wire bending, their machines check the quality & specification of the products developed. In addition, they make distinct springs, viz. Compression, Torsion, Extension and Wire Forming exactly to the specifications and needs. Basically, following machineries are used in the design and development of distinct springs.
Spring Coilers
Spring End Grinding Machines
Coiling Machine
Oven
Their spring coiling machines can handle distinct wire diameters. Their spring
coilers are capable of meeting customers' diverse needs and demands related to
springs.
Technical details:
Tolerance- as per customer
specifications
Wire used all type of Indian
and imported wire for spring purpose like Spring steel, stainless steel,
phosphorus bronze and ETP wire etc.
Wire diameter range - 0.15 mm
10.00 mm
Testing facilities :
They have a well equipped laboratory to test distinct springs on varying parameters. Considering the fact that a good spring design depends upon many factors in addition to dimensional and load requirements, they design & develop their spring accordingly. Here are some of the ultra modern import quality machinery that they use in testing procedures-
1. Load testing machine
2. Torque testing machine
3. UTS machine
4. Environment Test Chamber
One of the crucial elements that plays important role in spring design is environmental condition that decides the exposure of springs to corrosion. There are some other elements as well that they consider during the design and manufacture of the springs. Some of them include-
Spring
Life
The spring life is dependent on the subsistence of the spring, related to breakage or experiencing excessive permanent set. The careful designing and selection of material as well as quality control measures adopted in their testing unit ensures greater life of the spring.
Corrosion
To ensure the springs manufactured by them are of superior quality, the
uncoated steel is given corrosion protection with zinc, copper, nickel and
alloys and is further treated in their testing laboratory.
Tolerances
They ensure that sufficient tolerance is applied only on functional
requirements and dimensions of the springs.
Burrs
Their testing laboratory ensures that the burrs arising in the spring due to
distinct operations are controlled within limits, in accordance to their size,
shape, and location.
Hydrogen Embrittlement
To relieve embrittlement, the springs are baked immediately after plating to drive the hydrogen out of the material. Their testing lab ensures that the embrittlement is done in compliance with industrial standards.
Their process :
They are a company with firm belief in an organized and structured functioning
both at management and production levels. It has enabled them to achieve more
profit in a short period of time. Moreover, it enhances their efficiency as a manufacturer
and supplier. The diagram provided at the bottom explains their management
structure in details.
They commence complete designing giving proper attention to details. Few of the
primary processes involved in the production are - Wire straightening, Bending
and Ends grinding. After the primary stage is over, they go ahead with their
main manufacturing process. Using advanced machinery, they produce quality
springs under international standards.
Surface treatment :
The final stage is 'finishing' of their products and they make them available
only after quality enhancement. Their Springs undergo special 'stress relief'
procedure that determines the optimum level of stress necessary for particular
type of spring. In the end they provide Anti rust solution to their springs and
the methods include-
Oil coating
Spray paint (all colour)
Zinc plating - all passivation
done (blue, yellow, green, black as per IS and JIS standard)
Nickel plating - dull and
bright
Tin plating
Silver plating
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 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 Intl
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 companys 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.39.29 |
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UK Pound |
1 |
Rs.77.02 |
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Euro |
1 |
Rs.58.16 |
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 |
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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48 |
This score serves as a reference to assess SCs 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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