MIRA INFORM REPORT

 

 

Report Date :

05.07.2012

 

IDENTIFICATION DETAILS

 

Name :

ESS ENN AUTO CNC PRIVATE LIMITED

 

 

Registered Office :

No. 82, 2nd Main, 3rd Stage, Behind KEB Office, Basaveshwara Nagar, Bangalore – 560079, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

25.03.1981

 

 

Com. Reg. No.:

004157

 

 

Capital Investment / Paid-up Capital :

Rs.2.377 Millions

 

 

CIN No.:

[Company Identification No.]

U85110KA1981PTC004157

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of Precision Machined Products and Components for automotive aerospace, electrical and electronics industry

 

 

No. of Employees :

60 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (41)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 45332

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old Established company having satisfactory track. Profitability of the company appears to be low. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. H S Anand

Designation :

Director

Contact No.:

91-9845069882

Date :

25.06.2012

 

 

LOCATIONS

 

Registered Office/Factory  :

No. 82, 2nd Main, 3rd Stage, Behind KEB Office, Basaveshwara Nagar, Bangalore – 560079, Karnataka, India

Tel. No.:

91-80-23326272

Fax No.:

91-80-41288272

E-Mail :

snworks@gmail.com

Website :

www.essennancpl.com

Area :

8000sq.fts

Location :

Owned

 

 

DIRECTORS

 

AS ON 30.09.2011

 

Name :

Mr. Hosmane Desikachar Srihari

Designation :

Director

Address :

43/C, 20th A Main, R Block, Rajajinagar, Bangalore – 560010, Karnataka, India

Date of Birth/Age :

24.04.1940

Date of Appointment :

25.03.1981

 

Other Directorship:

 

Top of Form

Bottom of Form

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U85110KA1981PTC004157

ESS ENN AUTO CNC PRIVATE LIMITED

Director

25/03/1981

25/03/1981

-

Active

NO

 

 

Name :

Mr. Hosmane Srihari Rathnamala

Designation :

Director

Address :

43/C, 20th A Main, R Block, Rajajinagar, Bangalore – 560010, Karnataka, India

Date of Birth/Age :

14.02.1949

Date of Appointment :

20.08.1985

 

Other Directorship:

 

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U85110KA1981PTC004157

ESS ENN AUTO CNC PRIVATE LIMITED

Whole-time director

01/04/2010

20/08/1985

-

Active

NO

Top of Form

Bottom of Form

 

 

Name :

Mr. Hosmane Srihari Anand

Designation :

Director

Address :

43/C, 20th A Main, R Block, Rajajinagar, Bangalore – 560010, Karnataka, India

Date of Birth/Age :

16.02.1976

Date of Appointment :

01.12.2004

 

Other Directorship:

 

Top of Form

Bottom of Form

S.No.

CIN/LLPIN

Name of the Company/ LLP

Current designation of the Director/ Designated Partner

Date of appointment at current designation

Original date of appointment

Date of cessation

Company/ LLP Status

Defaulting status

1

U85110KA1981PTC004157

ESS ENN AUTO CNC PRIVATE LIMITED

Whole-time director

01/12/2004

01/12/2004

-

Active

NO

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.09.2011

 

Names of Shareholders

 

No. of Shares

Hosmane Desikachar Srihari

 

13000

Hosmane Srihari Rathnamala

 

667

Hosmane Srihari Anand

 

10100

Total

 

23767

 

AS ON 30.09.2011

 

Category

Percentage

Directors or relatives of Directors

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Precision Machined Products and Components for automotive aerospace, electrical and electronics industry

 

 

Terms :

 

Selling :

Cash, Credit 

 

 

Purchasing :

Cash, Credit 

 

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

Unit

Actual Production

Precision Machined Components

Nos

3538970

 

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

60 (Approximately)

 

 

Bankers :

·         State Bank of India, Industrial Estate Branch, Rajajinagar, Bangalore - 560044, Karnataka, India

·         Small Industries Development Bank of India, 5th Floor, East Wing, Khanija Bhawan, 49, Race Course Road, Bangalore - 560001, Karnataka, India

·         Standard Chartered Bank, Bangalore 

 

 

Facilities :

 

SECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Term Loans from State Bank of India

5.508

4.318

Hire Purchase loans from ICICI Bank

0.000

0.076

Loan against property from HDB Financial Services

14.685

0.000

Cash credit from State Bank of India

0.000

8.383

TOTAL

20.193

12.777

 

1.       Term loans and Hire purchase loans have been

2.       Secured by hypothecation of machinery and vehicles purchased there against.

3.       Loan from H. D. B. Financial Services has been secured by immovable property of the directors.

4.       Working capital facilities have been secured by inventories and book debts.

 

UNSECURED LOAN

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

From directors

0.918

0.918

Credit Balance in Current A/c with Standard Chartered Bank

0.000

0.031

TOTAL

0.918

0.949

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

K V Shenoy and Company

Chartered Accountant

Address :

'Sowmya Sadan', 1st Floor, BMP Colony, Govindarajnagar, Bangalore – 560003, Karnataka, India

 

 

Associates/Subsidiaries :

NA

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

Authorised Capital :

No. of Shares

Type

Value

Amount

25000

Equity Shares

Rs.100/- each

Rs.2.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

23767

Equity Shares

Rs.100/- each

Rs.2.377 Millions

 

 

 

 

 

[Of the above, 22,767 (Previous year : 22,767) Equity shares of Rs.100/- each were allotted as fully paid-up for consideration other than cash pursuant to contract for taking over the business of Ess Enn Industries]

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

52.500

 

 

 

 

 

Expected Sales (2012-2013) : Rs.70.000 Millions

 

The above information has been parted by Mr. H S Anand (Director)

 

Note : Sole Proprietory and Partnership concerns are exempted from filing their financials with the Government Authorities or Registry Records.

 

 


ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.377

2.377

2.377

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8.956

8.277

7.990

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

11.333

10.654

10.367

LOAN FUNDS

 

 

 

1] Secured Loans

20.192

12.776

14.895

2] Unsecured Loans

0.918

0.949

0.917

TOTAL BORROWING

21.110

13.725

15.812

DEFERRED TAX LIABILITIES

0.298

0.000

0.000

 

 

 

 

TOTAL

32.741

24.379

26.179

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

17.214

10.682

11.809

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

1.000

1.000

1.000

DEFERREX TAX ASSETS

0.000

0.006

0.076

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

4.831

5.830

3.392

 

Sundry Debtors

10.189

6.027

6.865

 

Cash & Bank Balances

3.207

0.987

1.919

 

Other Current Assets

0.00

0.000

0.178

 

Loans & Advances

4.196

5.004

7.093

Total Current Assets

22.423

17.848

19.447

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

5.966

3.652

3.523

 

Other Current Liabilities

1.672

1.418

1.264

 

Provisions

0.258

0.087

1.366

Total Current Liabilities

7.896

5.157

6.153

Net Current Assets

14.527

12.691

13.294

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

32.741

24.379

26.179

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

TOTAL                                    

34.940

23.276

27.100

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

TOTAL                                    

33.736

22.883

28.206

 

 

 

 

 

 

PROFIT BEFORE TAX

1.204

0.393

(1.106)

 

 

 

 

 

Less

TAX                                                                 

0.525

0.108

0.287

 

 

 

 

 

 

PROFIT AFTER TAX

0.679

0.285

(0.819)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

21.390

15.110

NA

 

TOTAL EARNINGS

21.390

15.110

NA

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

1.94

1.22

(3.02)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

NA

NA

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

3.04

1.38

2.62

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.11

0.04

(0.11)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.56

1.77

2.12

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

2.84

3.46

3.16

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

 Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

Yes

5) Type of Business

 Yes

6) Line of Business

Yes

7) Promoter's background

Yes

8) No. of employees

 Yes

9) Name of person contacted

Yes

10) Designation of contact person

Yes

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

 --

14) Estimation for coming financial year

Yes

15) Capital in the business

Yes

16) Details of sister concerns

No

17) Major suppliers

No

18) Major customers

No

19) Payments terms

Yes

20) Export / Import details (if applicable)

No

21) Market information

 --

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

 --

26) Buyer visit details

 --

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

 

FUTURE OUTLOOK:

 

The Company continues to explore various new business segments for identifying profitable growth opportunities. With the foundation work well laid to market the company's products, sales volumes can be expected to grow in the coming years.

 

FORM 8:

 

Corporate identity number of the company

U85110KA1981PTC004157

Name of the company

ESS ENN AUTO CNC PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

No. 82, 2nd Main, 3rd Stage, Behind KEB Office, Basaveshwara Nagar, Bangalore – 560079, Karnataka, India

This form is for

Creation of charge

Type of charge

Movable Property

Particular of charge holder

Small Industries Development Bank of India

Nature of instrument creating charge

1. Deed of Hypothecation dated 26.03.2010.

2. Loan Agreement dated 26.03.2010.

Date of instrument Creating the charge

26/03/2010

Amount secured by the charge

Rs.6.000 Millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of Interest

The Borrower shall pay to SIDBI interest at the rate of 9.75% p,a., with monthly rests, on the principal amount of the Loan outstanding from time to time, payable on first day of each month.

 

Terms of Repayment

The Loan shall be repaid by the borrower to SIDBI in 84 equated monthly installment of Rs. 0.100 Million commencing after an initial moratorium of 6 months from the date of first disbursement of the loan.

 

Margin

Internal Accruals: Rs. 2.500 Millions

 

Extent and Operation of the charge

To cover entire loan amount and other incidentals.

Short particulars of the property charged

All the movables (save and except book debts) detailed in the Schedule A of the Deed of Hypothecation dated 26.03.2010 situated at the Borrower's factories, prernises, and godowns or wherever else.

 

 


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.54.55

UK Pound

1

Rs.85.48

Euro

1

Rs.68.70

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

SDA


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

4

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

41

 

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

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

-

NB

                                       New Business

-

 

 

 

 

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.