MIRA
INFORM REPORT
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Report Date : |
26.11.2008 |
IDENTIFICATION DETAILS
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Name : |
RAMCHARAN COMPANY |
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Registered Office : |
D- 5, B- 10 and 11, “RAMS”, No. 21, |
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Country : |
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Financials (as on) : |
31.03.2008 (Estimated) |
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Year of Establishment : |
1972 |
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Legal Form : |
A Partnership Concern With An Unlimited Liability of the Partner |
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Line of Business : |
Import and Trading in Carbon Black, Rubber Chemicals, Process Oils,
Synthetic Lubricants, Reclaimed Rubber and Wax Base used in various
industries. |
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 30000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established trader having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. However the concern can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered / Head Office : |
D- 5, B- 10 and 11, “RAMS”, No. 21, |
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Tel. No.: |
91- 44- 26412558/ 26412691/ 26411324 |
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Fax No.: |
91-44- 26480998 |
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E-Mail : |
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Website : |
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Area : |
2200 sq ft |
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Location : |
Owned |
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Branches : |
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Warehouse : |
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PARTNERS
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Name : |
Mr. Ajit K Palicha |
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Designation : |
Managing Partner |
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Name : |
Mr. |
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Designation : |
Partner |
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Name : |
Mr. Divyesh A Palicha |
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Designation : |
Full Time Partner |
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Name : |
Mr. Sanjay K Bhatia |
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Designation : |
Partner |
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Name : |
Mr. Kaushik A Palicha |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Import and Trading in Carbon Black, Rubber Chemicals, Process Oils, Synthetic
Lubricants, Reclaimed Rubber and Wax Base used in various industries. |
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Products : |
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Imports : |
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Countries : |
Far East and |
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Terms : |
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Purchasing : |
D/P |
GENERAL INFORMATION
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Suppliers : |
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Customers : |
TVS Group, Chennai, |
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No. of Employees : |
10 |
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Bankers : |
Punjab National Bank, Purasavakkam Branch, Chennai |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kumbhat and Company Chartered Accountant |
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Address : |
Located at Chennai - 600079 |
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Group Companies : |
Ram Charan Petro Oils, Chennai |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.6.000 Millions |
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Borrowed : |
-- |
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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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31.03.2008 |
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Sales Turnover |
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300.000 |
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Profit/Loss for the year |
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1% on Sales
Turnover |
LOCAL AGENCY FURTHER INFORMATION
GROUP PROFILE
Ram Charan Company, Ram Charan Petro-Oils and Ram Charan Oils Private Limited
form the group concerns. The Firms have been created, delineating the Products
lines, and a brief detail of the activities of the firms has been listed.
RAM CHARAN CO.
The first venture of the group and till date the flagship of the group
companies. RAM CHARAN CO, was founded in 1965 and today has offices and
Warehouse in Tamil Nadu, Kerala and
RAM CHARAN PETRO-OILS
Ram Charan Petro-Oils, as the name suggests, was incorporated with the object
of providing a improved and efficient supply of products that were petroleum
based, with a view to provide more packing options and improved produce
quality. This product area has been treated as a speciality, as the product
plays a very significant part in the manufacture of a rubber or coatings
compound.
A tie-up with Standard Oil, at Chennai, ensured that Ram Charan
Petro-Oils clients had access to products such as Rubber Process Oils and Ink
Process Fluids, with custom built specifications, to suit individual requirements.
This product line complements the firm's presence in the rubber industry,
offering customers a more improved product portfolio.
The firm today has a leading edge in the marketplace, as it has become a mooted
name for quality and specialized products, that serve the needs of an ever
maturing market in terms of quality and economy patterns. Ram Charan Petro-Oils
is also associated with specialized laboratories for testing compounds. This
allows clients to achieve an indepent view of their products, allowing for more
improvement.
OPERATIONAL DETAILS
LOGISTICS and MANAGEMENT
With over 1000 clients, located form the Middle-East to
WAREHOUSING and PACKING OPTIONS
RAM CHARAN has its warehouse, located close to the sales and administrative
control centers, to ensure proper management of products. All warehouse are
located in
RAM CHARAN WAREHOUSES ARE AT:
TAMIL NADU:
Warehouse located at Chennai and
Two warehouses are located in the city-state, with both individual firms
operating in the region. This location is geographically central in
KERALA:
God's own country as the region is known as, for it's abundant green lands, and
most important vast resources of natural rubber. The largest users of rubber
related raw materials, calls for vast and efficient storage capacities. RAM
CHARAN Co., has a total of 5 warehouses in the region, with a total capacity of
350 tones of all products.
STORAGE and PACKING OPTIONS:
Storage of a product involves the aggregate of packing, transit coverage
and fixed storage. Various products, for numerous clients, with a large
geographical coverage and fractional transport requirements, of products. The
product after being de-packed should ensure that it retains the properties,
that it was manufactured for. Chemical products change characteristics very
immensely due to the affect of foreign partials, moisture and organic growth.
Packing from manufacturers is adept to suit such requisites and ensure that
foreign particles do no contaminate the packed product. The chemical solids are
packing with 3 ply packing, and stored with due supports and obstacles to
moisture. The liquids are packing in plastic carboys for requirements up to 30
liters and larger sizes in steel barrels to ensure non-damage in packing, and
larger storage life.
All their products are packing in containers that are not environment hazards,
and we encourage their clients to provide environmental safe practices.
PEOPLE POWER:
Every year, personnel at RAM CHARAN, undergo training in areas such as
information services, financial management and self-improvement. Human
resources from a very integral portion of Ram Charan's resources and there is a
committed approach to investment in human resources.
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.49.97 |
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1 |
Rs.75.45 |
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Euro |
1 |
Rs.64.21 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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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 |
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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46 |
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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