MIRA INFORM REPORT

 

 

Report Date :

24.07.2008

 

IDENTIFICATION DETAILS

 

Name :

SANDEEP ENGINEERING

 

 

Registered Office :

D-36 A, Electronic Complex, Kushaiguda, Hyderabad-500062, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date  of Establishment:

06.10.1990

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

28949270550

 

 

PAN No.:

[Permanent Account No.]

A4PD0171F

 

 

Legal Form :

Sole Proprietory Concern

 

 

Line of Business :

Manufacturer of 6 and 4 ½ Valveless /DTH Hammer , Button Bits and Associated Accessories

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 25000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is well established concern having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments.

 

Nothing adverse reported.

 

The concern can be considered normal for business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. D. Krupakaran

Designation :

Proprietor

Contact No.:

91-9391010157

Date :

11.07.2008

 

 

LOCATIONS

 

Registered Office :

D-36 A, Electronic Complex, Kushaiguda, Hyderabad-500062, Andhra Pradesh, India

Tel. No.:

91-40-27127169

Mobile No.:

91-9391010197

E-Mail :

SANDEEP.ENGINEERING@YAHOO.COM

Area :

250 Ground Floor Sq ft

Location :

Owned

 

 

Factory:

No.D-36 A, Electronic Complex, Kushaiguda, Hyderabad-500062, Andhra Pradesh, India

Mobile No.:

91-9391010197

Area:

2000 Ground Floor Sq ft

Location:

Owned

 

 

SOLE PROPRIETOR

 

Name :

Mr. D Krupakaran

Designation :

Proprietor

Address:

Secunderabad, Marakpally, Andhra Pradesh, India

Date of Birth/Age :

58 years

Qualification :

M.com

Experience:

20 years

 

 

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of 6 and 4 ½ Valveless /DTH Hammer , Button Bits and Associated Accessories

 

 

Products :
  • DTH Valved Hammers (suitable to drill 75mm to 205 dia. bores)
  • DTH Valveless hammers ( to drill from 120 mm to 305 mm dia. Bores for mining and water wells)
  • Tungsten Carbide button bits (from 75 mm to 350 mm sizes)
  • Associated drilling accessories ( for mining and water wells)

 

 

Terms :

 

Selling :

Credit (30 days), Cash (60 days)

 

 

Purchasing :

Credit (30 days), Cash (60 days)

 

PRODUCTION STATUS

 

Particulars

 

 

 

Actual Production

Per month

DTH Hammer, Button Bits (At present the production is not in full swing-low)

 

 

 

500 Nos

 

 

GENERAL INFORMATION

 

Customers :

Manufacture and Suppliers Drilling Bits

 

 

No. of Employees :

02 (In Office), 05 (In Factory)

Total: 07

 

 

Bankers :
  • Bank of Baroda, West Maripalik
  • HDFC Bank, Secunderabad Branch

Credit Limit: Current Account only

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

C. Amarnath Shekhar and Company

(Chartered Accountant)

Address :

Hyderabad, Andhra Pradesh, India

Mobile No.:

91-9848436342

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs.5.000 millions

Borrowed :

-----

Total :

Rs.5.000 millions

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions)

 

 

Particulars

 

 

31.03.2008

31.03.2007

Sales Turnover

 

1.600

1.300

 

 

 

 

Profit/Loss for the year

 

12%

12%

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

 

0.859

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

0.859

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

3.791

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

3.791

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

4.650

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

3.261

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.140

DEFERREX TAX ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

0.331

 

Sundry Debtors
 

 

0.863

 

Cash & Bank Balances
 

 

0.077

 

Other Current Assets
 

 

0.000

 

Loans & Advances
 

 

0.005

Total Current Assets
 

 

1.276

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

0.027

 

Provisions
 

 

0.000

Total Current Liabilities
 

 

0.027

Net Current Assets
 

 

1.249

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

4.650

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

 

31.03.2007

Sales Turnover

 

 

0.320

Other Income

 

 

0.999

Total Income

 

 

1.319

 

 

 

 

Profit/(Loss) Before Tax

 

 

0.149

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

0.149

 

 

 

 

Expenditures :

 

 

 

 

Salaries, Wages, Bonus, etc.

 

 

0.364

 

Payment to Auditors

 

 

0.005

 

Interest

 

 

0.243

 

Insurance Expenses

 

 

0.008

 

Depreciation & Amortization

 

 

0.079

 

Other Expenditure

 

 

0.471

Total Expenditure

 

 

1.170

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2007

PAT / Total Income

(%)
 

 

11.30

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

46.56

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

3.18

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.17

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

4.44

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

47.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

 

Manufactured Products is Distributed to the Following Companies In India namely:

 

 

 

Trade References:

 

 

Observation Points:

 

Name Board:  Shifted in front of the factory

 

Land Mark to Factory: Hardly 2 Kms Electronic Industrial Bus Terminus and 17 Kms from Secunderabad Railway Junction.

 

No of Staff Seen at office Premises:    01 Person

 

No of Employees at Factory Premises:    03 Persons

 

Office and Factory Area: Same Premiseswell Furnished in First Floor

 

Factory Area: Industrial Area

 

Name of Person Met: Mr. Chandrasekar- Quality Controller

 

Note: At present the above company is running in a bad condition. Totally only 3 machines are found in the factory premises at the time of my visit. Namely 5 ft machining lathe. Hydraulic maching and drilling machine

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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.33

UK Pound

1

Rs.84.32

Euro

1

Rs.66.75

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-----

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions