MIRA
INFORM REPORT
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Report Date : |
17.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
NAMRATHA OIL REFINERIES PRIVATE LIMITED |
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Registered Office : |
No. 56, 10th Cross, 2nd Main, 2nd Stage off West of Chord Road, Bangalore – 560 086, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
30.04.2004 |
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Com. Reg. No.: |
08-33857 |
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CIN No.: [Company
Identification No.] |
U15493KA2004PTC033857 |
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IEC No.: |
0705005682 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRN02363E |
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PAN No.: [Permanent
Account No.] |
AABCN9346G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer and Exporter of Refined Coconut Oil, Coconut Cake and
Coconut Powder |
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 62000 |
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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 an established company in its field. Trade relations are
fair. Business is active. Payments are reported as usually made and as per
commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Ravindra |
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Designation : |
Director |
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Contact No.: |
91-9343720916 |
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Date : |
15.10.2008 |
LOCATIONS
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Registered Office : |
No. 56, 10th Cross, 2nd Main, 2nd Stage off West of Chord Road,
Bangalore – 560 086, Karnataka, India |
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Tel. No.: |
91-80-23593400 / 23593401 / 23593402 |
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Mobile No.: |
91-9343720916 |
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Fax No.: |
91-80-23192521 |
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E-Mail : |
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Website : |
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Area : |
700 Sq. ft. |
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Location : |
Owned |
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Factory : |
3rd Mile stone,
Hassan Road, Tiptur - 572 202, Karnataka,India |
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Tel. No.: |
91 8134-254493/94 |
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Fax No.: |
91-8134-294611 |
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Area : |
6 Acres |
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Location : |
Owned |
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Branch Office : |
SY No. 27/1, Huchanahalli, Kalkere Road, Annpura, Tiptur – 572 201,
Karnataka, India |
DIRECTORS
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Name : |
Mr. B S Arun Kumar |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
01.09.1963 |
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Qualification : |
Under Graduate |
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Previous Experience : |
He was the proprietor of Tejas Agro Tech and Ravi Industries (not
operational now) for 19 years. |
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Relevant Experience : |
23 Years including previous experience |
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Date of Appointment : |
30.04.2004 |
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Name : |
Mr. B S Shiva Prasad |
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Designation : |
Director |
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Address : |
No. 56, 10th Cross, 2nd Main, 2nd Stage off West of Chord
Road, Bangalore – 560 086, Karnataka, India |
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Date of Birth/Age : |
08.08.1965 |
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Qualification : |
Under Graduate |
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Previous Experience |
He was the proprietor of Ravi Traders (not operational now) for 17
Years. |
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Relevant Experience : |
21 Years including previous experience |
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Date of Appointment : |
30.04.2004 |
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Name : |
Mr. B S Ravindra |
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Designation : |
Director |
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Address : |
No. 56, 10th Cross, 2nd Main, 2nd Stage off West of Chord
Road, Bangalore – 560 086, Karnataka, India |
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Date of Birth/Age : |
20.07.1968 |
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Qualification : |
B.Sc. |
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Previous Experience |
He was the proprietor of Ravi Trading Corporation (not operational
now) for 16 years. |
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Relevant Experience : |
20 Years including previous experience |
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Date of Appointment : |
30.04.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
No. of Shares |
|
B S Arun Kumar |
103500 |
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B S Shiva Prasad |
103500 |
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B S Ravindra |
103500 |
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B A Jayasree |
1000 |
|
Lakshmi Satish |
1000 |
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B S Prema Leela |
1000 |
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B R Priya |
1000 |
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B S Radhika |
1000 |
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B S Ravindra, HUF |
1000 |
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E K Satish |
2000 |
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B S Shiva Prasad, HUF |
1000 |
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Sujatha Lakshmi |
1000 |
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S V Srinivas |
1000 |
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B S Arunkumar, HUF |
30000 |
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Murali Krishna Vasappa |
40000 |
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Padmini |
60000 |
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S Anitha |
20000 |
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Sathyanarayana |
100000 |
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C R Suma |
50000 |
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Venkatanarayana Balasubramanyam |
355000 |
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Total |
976500 |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2007)
|
Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Refined Coconut Oil, Coconut Cake and
Coconut Powder |
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Products : |
·
Coconut Oil in Bulk ·
Refined Coconut Oil in Bulk ·
Copra (Ball Copra /
Rajapuri-Halves) ·
Complete Coconut Oil - 'Penguin' ·
Coconut Oil Cake ·
Pure Coconut Oil in Pouches ·
Refined Coconut Oil in Pouches ·
Coconut Deoiled Cake |
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Brand Names : |
Penguin (registered) |
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Exports : |
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Products : |
·
Coconut Oil in Bulk ·
Complete Copconut Oil ·
Copra, Refined Coconut oil etc. |
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Countries : |
All over in World |
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
Sri Lanka ·
Indonesia |
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Terms : |
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Selling : |
Credit (30 days / 60 days / 90 days) |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Suppliers : |
·
Sri Nanjundeshwars Traders ·
Sri Nandi Traders ·
Gollarahalli Brothers ·
Sri Channakeshva Traders ·
Sri Jakkeshwara Traders |
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Customers : |
Direct Customers |
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No. of Employees : |
172 (In Office 7 and In Factory 165) |
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Bankers : |
State Bank of Mysore Arasikere Branch, No. 14, Hassan Road, Arasikere – 573 103, Karnataka,
India |
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Facilities : |
CC Limit Rs.0.600 million |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
·
D N Sreehari and Company Chartered Accountants Address : # 1631/4, I
Cross, 3rd Main, Opp. Vagdevi Seshappa Hall, Behind Devaiah Park, Ram
Mohanpuram, Bangalore – 560 021, Karnataka, India Tel
No.: 91-80-23520843 ·
NSVM and Associates Chartered Accountants Address : No. 63, First Floor, Railway Parallel Road, Above Canara Bank, Kumar
Park West, Bangalore – 560 020, Karnataka, India |
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Associates/Subsidiaries : |
Namratha Oil and Allied Industries
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CAPITAL STRUCTURE
(As on 30.09.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/- each |
Rs.10.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
976500 |
Equity Shares |
Rs.10/- each |
Rs.9.765
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
9.765 |
9.765 |
0.215 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2.669 |
1.204 |
0.337 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12.434 |
10.969 |
0.552 |
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LOAN FUNDS |
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1] Secured Loans |
10.250 |
0.000 |
0.00 |
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2] Unsecured Loans |
31.155 |
20.240 |
3.815 |
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TOTAL BORROWING |
41.405 |
20.240 |
3.815 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.015 |
0.033 |
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TOTAL |
53.839 |
31.224 |
4.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.518 |
0.622 |
0.786 |
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Capital work-in-progress |
42.801 |
24.062 |
7.083 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.066 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
11.631
|
1.777 |
2.338 |
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Sundry Debtors |
4.063
|
3.585 |
2.395 |
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Cash & Bank Balances |
1.825
|
0.694 |
0.037 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.110
|
3.688 |
0.570 |
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Total
Current Assets |
20.629
|
9.744 |
5.340 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
9.336
|
2.830 |
8.769 |
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Provisions |
0.902
|
0.467 |
0.165 |
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Total
Current Liabilities |
10.238
|
3.297 |
8.934 |
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Net Current Assets |
10.391
|
6.447 |
(3.594) |
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MISCELLANEOUS EXPENSES |
0.063 |
0.093 |
0.125 |
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TOTAL |
53.839 |
31.224 |
4.400 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales and Other Income |
93.303 |
47.309 |
12.776 |
|
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Total Income |
93.303 |
47.309 |
12.776 |
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Profit/(Loss) Before Tax |
2.321 |
1.313 |
0.535 |
|
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Provision for Taxation |
0.856 |
0.446 |
0.165 |
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Profit/(Loss) After Tax |
1.465 |
0.867 |
0.370 |
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Expenditures : |
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Depreciation & Amortization |
0.125 |
0.164 |
0.085 |
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Other Expenditure |
90.857 |
45.832 |
12.156 |
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Total Expenditure |
90.982 |
45.996 |
12.241 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.57
|
1.83 |
2.90 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.49
|
2.78 |
4.19 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.98
|
12.67 |
8.73 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.12 |
0.97 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.15
|
2.15 |
23.10 |
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|
Current Ratio (Current Asset/Current Liability) |
|
2.01
|
2.96 |
0.60 |
LOCAL AGENCY
FURTHER INFORMATION
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Additional
Requirement of Indiamart for Trust-Seal |
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Service Tax No. : -- |
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Excise Registration No.: -- |
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VAT / TIN : 29690223848 |
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IEC Code : 0705005682 |
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PAN / TAN : AABCN9346G |
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Bank Name : State Bank of Mysore |
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Bank Address : Arsikere Branch, Karnataka |
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Bank A/c. No.: -- |
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Account Since : -- |
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In case of any affiliations / memberships / certifications : |
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Name : -- |
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Type : -- |
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Expiry Date : -- |
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Form No. 8
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Corporate
identity number of the company |
U15493KA2004PTC033857 |
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Name of the
company |
NAMRATHA OIL REFINERIES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
No. 56, 10th Cross, 2nd Main, 2nd Stage off West of Chord
Road, Bangalore – 560 086, Karnataka, India |
|
This form is for |
Creation of
charge |
|
Type of charge |
·
Book debts ·
Movable
property (not being pledge) |
|
Particular of
charge holder |
State Bank of Mysore Arasikere Branch, No. 14, Hassan Road, Arasikere – 573 103, Karnataka,
India |
|
Nature of
instrument creating charge |
Agreement for
Cash Credit – F. No. 1180 (Hypothecation of Goods) Hypothecation of movable
machinery agreement F No. 20 (both the above pertain to the same charge) |
|
Date of
instrument Creating the charge |
25.09.2006 |
|
Amount secured by
the charge |
Rs.52.500
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of interest CC-At such rates
and rests as may be specified by the Bank from time to time MTL-1.25% below
SBMPLR with a min of 10.25% p.a. with monthly rests. Additional
interest – 2.5% above normal interest on overdue instalments. Terms of
repayment CC- on Demand MTL – In 24
quarterly instalments; first 23 instalments of Rs.0.411 million and the last
instalments of Rs.0.411 million commencing from December 2006. Margin As specified in
the terms of sanction. Extent and
operation of the charge Exclusive first
charge on stocks and machinery Hypothecation of
Stocks – Rs.42.500 millions Hypothecation of
Machinery – Rs.10.000 millions |
|
Particulars of
the property charged |
Whole of the
Borrower’s stock of raw materials, finished and unfinished goods, whether raw
or in the process of manufacture and all articles manufactured therefrom.
Hypothecation of all the machinery specified and described in the schedule
‘B’ and machinery which may at any time during the continuance of this
security belong to the borrower and be lying in or about the factory premises
at S. No. 73/1 and 123/5 Shankaranahally Gate, Anagondnahalli, Hassan Road,
Tiptur TQ, Tumkur Dist. |
Web Details
Profile
Incepted in the
year 1995, Subject are a highly acclaimed name among manufacturers and
exporters. The company is engaged in extraction and refinery activities of
edible oils predominantly Coconut Oil. They procure quality raw material from
Tiptur which is a major coconut growing area in India and thus have unbeatable
quality advantage in this sector. With consistent and regular supply of quality
products they are able to satisfy different industrial requirements from varied
sectors.
Apart from production and supply of Coconut Oil in bulk, company is also keen
in developing a marketing network for consumer packed sku’s as a major
direction of the industry. They are an organization, which is flat with only
five levels of reporting between the Managing Director and an operator on the
shop floor. They believe that a flat structure helps them in being more
responsive to the environment while providing enriched roles for the members.
Keeping in mind the fast and ever changing business environs, Subject's
structure is dynamic and constantly evolving. Keeping these factors in mind,
they continuously strive for excellence in the work and consistently innovate
and upgrade themselves to offer distinctive edible coconut oil.
RATING REPORT
Key Rating Drivers
Strengths
·
Competent promoters with 23 years of
experience in the same line of business.
·
Diverse customer base, product range and their
applications, and well-spread geographical reach add stability to revenue
streams.
·
Strong customer profile comprising Cholayil
Private Limited, Nirma Limited (rated by CRISIL as ‘AA/Stable/P1+’). Dabur
India Limited (rated by CRISIL as ‘AA+FAAA/Stable/P1+’), and Godrej Industries
Limited mitigates customer concentration risks.
·
Strength of the business model reflected in
strong revenue growth at a compounded annual growth rate more than 100.00 per
cent over the past three years.
·
Strong industry prospects support the
company’s growth potential. Well-defined organizational structure coupled with
qualified and experienced second-tire management that has decision-making
powers.
·
Good working management as reflected in
receivables of 62 days, payables of 3 days and a current ratio of 1.45 times as
on March 31, 2008.
Risk Factors
·
Although the promoters are experienced in the
same line of business, the company’s ability to weather business cycle is yet
to be seen.
·
High degree of competition may pressurize
margins in the future.
·
Weak capital structure as reflected in debt to
equity ratio (not including unsecured loans) of 3.22 times and net cash
accruals to total debt (NCATD) ratio of 12.51 per cent as on March 31, 2008.
Business Description
|
Nature of Business |
Manufacturing |
|
Industry |
Refineries |
|
Industry prospects |
Strong |
|
Business description |
·
The company is into solvent extracting and
refining of copra/copra cake and other coconut by products that have
industrial, domestic and toiletry applications. ·
The company imports 5.00 per cent of its raw
material from Sri Lanka and Indonesia making payments in US dollars. |
|
Experience in the business |
4 years |
|
Product range |
Diversified |
|
Degree of competition |
High; entry barriers are low |
|
Plans |
No near-term plan to expand or diversify |
|
Customer profile |
Direct customers |
Product Profile
·
The company is engaged solvent extracting and
refining of copra/copra cake and other coconut by products that have
industrial, domestic and toiletry applications.
·
In industries, these are mainly used in the manufacture
of biscuits, chocolates and other confectionery items, ice cream,
pharmaceutical products and paints.
·
It is also used as edible oil in cooking and
other skin care purposes.
·
The manufacturing process can be explained as
under :
- Coconut peeling
- Crushing
- Refining
- Solvent extraction
- Quality check
- Packing
- Dispatch
·
The company started refining and solvent
extraction from 2007-08 (refers to financial year, April 1 to March 31). Prior
to this, the company had been selling raw oil.
·
All the manufacturing activities are done
in-house.
·
The company currently operates at 70.00 per
cent capacity in three shifts of eight hours each.
Customer Profile and Demand-Side Analysis
|
Customer name and location |
Product |
Length of
relationship |
% share in sales |
|
Cholayil Private Limited, Chennai |
Coconut Oil |
12 Years |
29.00 |
|
Nirma Limited (rated by CRISIL as
AA/Stable/P1+), Ahmedabad |
10.00 |
||
|
Godrej Industries Limited, Mumbai |
10.00 |
||
|
Sunshine Oleochem Private Limited, Mumbai |
10.00 |
||
|
Ruchi Soya Industries Limited, Mumbai |
26.00 |
||
|
Dabur India Limited (rated by CRISIL as
(‘AA+/FAAA/Stable/P1+’) |
1 month |
Data not provided to CRISIL |
|
Terms of credit |
Credit of 10 days |
|
Feedback from customers |
Customers are satisfied with the
relationship. |
|
Process of getting orders |
Regular orders from customers. |
|
Exports |
Nil |
|
Marketing network |
The company has a separate firm named ‘Namratha
Oil and Allied Industries’ (started in July 2008) for conducting its
marketing activities. Mr. B S Ravindra is the proprietor of the firm. The company is also registered with NAFED
(National Agricultural Cooperative Marketing Federation of India Limited). |
|
Geographical reach |
Well-Spread |
Note :
The company also has customers in Tamil Nadu,
Karnataka and Himachal Pradesh.
Supplier Profile and Supply-Side Analysis
|
Terms of purchase |
Cash payment |
|
Feedback from suppliers |
Suppliers are satisfied with the
relationship. |
|
Raw material availability |
Ample |
|
Raw Material price volatility |
High |
|
Ability to pass on raw material price increases Imports |
·
About 5.00 per cent of raw materials
purchased. ·
The company imports 5.00 per cent of its raw
material from Sri Lanka and Indonesia making payments in US dollars. |
Manufacturing Facilities
|
Labour-oriented operations |
No |
|
Labour union |
No |
|
Labour relationships |
Cordial |
|
CNC machines, CAD, CAM, automatiuon |
YES |
|
In-house research and development (R and D), designing facilities |
No |
|
Factory layout |
Spacious and well-organised |
Organisational Structure, Controls and Systems
|
Promoter |
Mr. B S Arunkumar |
|
Constitution |
Private limited company |
|
Second-tier management |
The Second-tier management consists of
qualified and experienced personnel heading purchase, sales, production,
quality control and accounts department. |
|
Decision-making powers |
Decentralised |
|
Reporting system or MIS |
Yes |
|
Type of reporting system |
Computerised |
|
Frequency of MIS / reporting |
Daily |
|
Litigations against the SSI |
Not applicable |
|
Litigations against the promoters |
- |
|
Severity of litigations |
- |
|
Susceptibility to foreign exchange fluctuations |
Low |
|
Hedging against foreign exchange risks |
Fully hedged at all times |
|
Susceptibility to commodity price fluctuations |
Not applicable |
|
Hedging against commodity prices |
- |
|
Asset insurance |
Adequate |
Ownership Pattern
(As on 31.03.2008)
|
Name of the shareholder |
Relationship
with Promoter |
Share in capital |
|
Mr. B S Arunkumar |
Promoter |
33.33% |
|
Mr. B S Shiva Prasad |
Brother |
33.33% |
|
Mr. B S Ravindra |
Brother |
33.34% |
|
|
Total |
100.00% |
Financial Profile
Current Financial Performance
|
Performance for the period ended |
30.09.2008 (Rs. In
millions) |
|
Net Sales |
262.000 |
|
Current order book |
30.000 |
|
|
|
|
Projected / estimated performance during |
2008-2009 |
|
Net Sales |
600.000 |
|
PBT |
20.000 |
|
PBT margin |
3.33 % |
·
The orders are to be executed within a period
of one month.
Past Financial Performance
Profit and Loss Account
|
|
2007-08 Provisional (Rs. In
millions) |
|
Number of months |
12 |
|
Net Sales |
441.272 |
|
Operating income |
441.627 |
|
Cost of sales |
412.329 |
|
OPBDIT |
29.298 |
|
Interest and finance costs |
9.226 |
|
OPBDT |
20.072 |
|
Depreciation |
5.625 |
|
OPBT |
14.447 |
|
Non-operating income / (expense) |
(0.228) |
|
PBT |
14.219 |
|
Extraordinary income / (expense) |
- |
|
Tax (including deferred taxes) |
4.650 |
|
PAT |
9.569 |
|
Dividends |
- |
Notes:
·
Non-operating expenses for the year ended March
31, 2008 include loss on sale of machinery and miscellaneous expenses.
·
The company had made additions in machineries
and building in 2007-08 owing to which the company had recorded a high sales
growth in that year.
Balance Sheet
|
|
31.03.2008 Provisional (Rs. In
millions) |
|
Liabilities |
|
|
Tangible net worth |
21.973 |
|
Deferred tax liabilities |
1.783 |
|
Long-term debt |
62.116 |
|
Short-term debt |
59.612 |
|
Current liabilities |
15.578 |
|
Total liabilities |
161.062 |
|
|
|
|
Assets |
|
|
Net Fixed Assets |
52.124 |
|
Deferred tax Assets |
- |
|
Inventory |
21.523 |
|
Receivables (total) |
74.547 |
|
Receivables greater than six months |
- |
|
Cash and bank balance |
5.326 |
|
Total Current Assets |
108.938 |
|
Non Current Assets |
- |
|
Total Assets |
161.062 |
Notes:
·
Long –term debt as on March 31, 2008 includes
unsecured loans of Rs.50.924 millions, term loan of Rs.8.835 millions from
State Bank of Mysore and balance Rs.2.356 millions from Sundaram Finance
Limited.
·
Unsecured loans carry an interest rate between
10.00 to 12.00 per cent.
·
There was an increase in cash credit
utilization as on March 31, 2008 due to increase in sales volume during the
year.
·
Current liabilities as on March 31, 2008
include outstanding liabilities and provisions.
Key Financial Ratio
|
For the year ended / as at |
|
31.03.2008 Provisional |
|
OPBDIT margin |
% |
6.64 |
|
PAT margin |
% |
2.17 |
|
Return on capital employed |
% |
23.54 |
|
Asset conversion cycle |
Days |
78 |
|
Days inventory (on COP) |
Days |
20 |
|
Days receivable (on gross sales) |
Days |
62 |
|
Days payable (on materials) |
Days |
3 |
|
Current Ratio |
Times |
1.45 |
|
PBDIT Interest cover |
Times |
3.15 |
|
Net Cash accruals / Total debt |
% |
12.51 |
|
Average cost of borrowing |
% |
10.38 |
|
Total outside liabilities / Tangible net
worth |
Times |
6.33 |
|
Gearing – Total debt / Tangible net worth |
Times |
5.54 |
|
Gearing (not including promoter loans as
debt) |
Times |
3.22 |
Banking Facilities
|
Name and location of the Bank |
Length of relationship |
Facilities availed |
Type of facility |
Loan amount |
Rate (%) |
|
State Bank of Mysore Arsikere Branch, Karnataka |
2 years |
Cash Credit Term Loan |
Fund-based limit |
Rs.60.000 millions Rs.10.000 millions |
11.75 13.00 |
Notes :
The outstanding loan amount as on September
19, 2008 is Rs.7.900 millions.
SITE VISIT
Site Visit 1
|
Address of the site visited |
No. 56, Tenth Cross, Second Main, Second State,
WOC Road, Bangalore – 560 010, Karnataka, India |
|
Date of site visit |
September 13, 2008 |
|
No. of floors occupied |
Ground Floor |
|
Size of premises |
700 Sq. ft. |
|
Number of employees at the location |
7 |
|
Child labour at the site |
No |
|
Locality |
Commercial and residential |
|
Location Area |
Urban |
|
Site location |
Main Road |
|
Site used as |
Administrative office Sales office |
|
Site layout |
Spacious and well-organised |
|
Space around the building / structure |
Front porch Backyard Side space |
|
Location advantages |
Easy to access business from the city |
|
State of infrastructure |
Power: Stable Back-up power : Available Water : Available Labour unions : Do not exist Transportation : Easily available Overall infrastructure : Satisfactory |
|
Electricity consumption |
Data not provided to CRISIL |
|
Building structure |
Permanent structure |
|
Ownership of premises |
Owned |
|
Sharing premises with group entities |
No |
|
Facilities available at the site |
·
Telephone ·
Internet ·
Fax ·
Name or sign boards ·
Drinking water ·
Transport arrangement ·
Boundary wall ·
Drainage and sewerage |
|
Other observations |
None |
Site Visit 2
|
Address of the site visited |
No. 3, Milestone Hassan Road, Tiptur – 572 202,
Tumkur, Karnataka, India |
|
Date of site visit |
September 12, 2008 |
|
No. of floors occupied |
Ground Floor |
|
Size of premises |
5.75 acres |
|
Number of employees at the location |
165 |
|
Child labour at the site |
No |
|
Locality |
Industrial |
|
Location Area |
Rural |
|
Site location |
Main Road |
|
Site used as |
Administrative office Sales office Factory or works Warehouse |
|
Site layout |
Spacious and well-organised |
|
Space around the building / structure |
Front porch Backyard Side space |
|
Location advantages |
Easy availability of raw material |
|
State of infrastructure |
Power: Stable Back-up power : Available Water : Available Labour unions : Do not exist Transportation : Easily available Overall infrastructure : Satisfactory |
|
Electricity consumption |
August 2008 : 106791 units July 2008 : 124787 units June 2008 : 168376 units |
|
Building structure |
Permanent structure |
|
Ownership of premises |
Owned |
|
Sharing premises with group entities |
No |
|
Facilities available at the site |
·
Telephone ·
Internet ·
Fax ·
Generator ·
Security Guards ·
Name or sign boards ·
Fire extinguisher ·
Drinking water ·
Transport arrangement ·
Boundary wall ·
Drainage and sewerage ·
Pantry and canteen |
|
Other observations |
None |
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 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.48.86 |
|
UK Pound |
1 |
Rs.84.22 |
|
Euro |
1 |
Rs.65.51 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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 |
|