MIRA INFORM REPORT

 

 

Report Date :

29.11.2012

 

IDENTIFICATION DETAILS

 

Name :

STANLEY ENGINEERING WORKS

 

 

Registered Office :

B-107, Shreyas Industrial Estate, Off W E Highway, Near Jay Coach, Goregaon (East), Mumbai – 400063, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

06.12.1995

 

 

Capital Investment/ Paid-up Capital:

Rs.5.000 Millions

 

 

IEC No.:

0704025019

 

 

PAN No.:

[Permanent Account No.]

AAGFS4944K

 

 

Legal Form :

Partnership Concern with an Unlimited Liability of the Partners 

 

 

Line of Business :

Manufacturer and Exporter of Diamond Polishing and Cutting Machine

 

 

No. of Employees:

35 (Approximately)

 

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 20000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established partnership concern having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The concern can be considered normal 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION PARTED BY

 

Name :

Mr. Godwin S. Soans

Designation :

Partner

Contact No.:

91-22-26855064

Date :

27.11.2012

 

 

LOCATIONS

 

Registered Office/Factory  :

B-107, Shreyas Industrial Estate, Off W E Highway, Near Jay Coach, Goregaon (East), Mumbai – 400063, Maharashtra, India

Tel. No.:

91-22-26855064 / 26854061

Fax No.:

91-22-26854177

E-Mail :

mumbai@stanleyengg.in

sale@stanleyengg.in

support@stanleyengg.in

Website :

http://www.stanleyengg.in

Area :

600 sq. ft.

Location :

Owned

 

 

Branch Office 1 :

Shop No. 117, 118, Rajhans Point, Varachha Main Road, Surat-395006, India

Tel. No.:

91-261-3236060

Email :

surat@stanleyengg.in

Area :

550 sq. ft.

Location :

Owned

 

 

Branch Office 2 :

C-393, Kiadb, Baikampady, Mangalore – 575011

Tel No.:

91-824-2406110

Fax No.:

91-824-2406110

Email :

mangalore@stanleyengg.in

Area :

43545 sq. ft.

Location :

Owned

 

 

 

PARTNERS

 

Name :

Mr. Godwin S. Soans

Designation :

Partner

Address :

H. No. 6, Crystal Palace, Link Road, Kach Pada, Malad (West), Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

51 years

Qualification :

B. Com

 

 

Name :

Mrs. Jessie G. Soand

Designation :

Partner

Address :

H. No. 6, Crystal Palace, Link Road, Kach Pada, Malad (West), Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

39 years

Qualification :

B. Com

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Diamond Polishing and Cutting Machine

 

 

Products :

·         Diamond Bruter

·         Bottom Coning Machine

·         Top Coning Machine

·         Revolution Disc

·         Compact Revolution Disc

·         Classic Top Dop Diamond Cutting Mahcine

·         Classic Bottom Dop Diamond Cutting Machine

·         Diamond Cutting Machine

·         Diamond Polisher

·         Artisan Girdle Faceter

·         Excellent Gridle

·         Groover Fancy / Round

·         Pre-Bruiting Machine

 

 

Exports :

 

Products :

·         Diamond Polishing

·         Cutting Machine

Countries :

Srilanka

 

 

Imports :

 

Products :

Motors

Countries :

·          China

·          USA

 

 

Terms :

 

Selling :

Cash and Credit

 

 

Purchasing :

Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

Wholesaler, Retailers

 

 

No. of Employees :

35 (Approximately)

 

 

Bankers :

Corporation Bank, Sarkat Palace, Amboli Branch, S. V. Road, Andheri (West), Mumbai – 400058, Maharashtra, India

 

 

Facilities :

Term Loan  –  Rs.1.400 millions

Cash Credit –  Rs.5.000 millions

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

A. Krishnamoorthy

Chartered Accountant

Address :

Sequeria Building, Kankanady, Mangalore – 575002, India

Tel. No.:

91-8242-437516

 

 

Associates/Subsidiaries :

·         R.S. Engineering Works

            Address: Plot No. 92/A, Canacona Industrial Estate , Shrithtal, Cro A-   403702.

                  Line of Business : Manufacturer of Dimond Polishing Machine

 

·         Stanley Industries

                  Address: C-22, Shreyash Industrial Estate, Goregaon (East), Mumbai

                  Line of Business : Manufacturer of Dimond Polishing Machine

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Capital Investment :

 

Owned :

Rs.5.000 Millions

Borrowed :

 

Total :

Rs.5.000 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

Particulars

 

 

31.03.2012

31.03.2011

Sales Turnover (Approximately)

 

90.000

85.000

 

 

 

 

 

 

Expected Sales (2012-2013) : Rs.100.000 Millions

 

The above information has been parted by Mr. Godwin S. Soans.

 

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

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Partners Capital

 

 

0.130

2] Partners Current Account

 

 

11.281

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

11.411

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

7.879

2] Unsecured Loans

 

 

0.000

TOTAL BORROWING

 

 

7.879

DEFERRED TAX LIABILITIES

 

 

0.000

 

 

 

 

TOTAL

 

 

19.290

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

13.571

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.000

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 
4.058

 

Sundry Debtors
 

 
21.602

 

Cash & Bank Balances
 

 
1.018

 

Other Current Assets
 

 
0.665

 

Loans & Advances
 

 
2.005

Total Current Assets
 

 

29.348

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
 

 
18.891

 

Other Current Liabilities
 

 
4.738

 

Provisions
 

 
0.000

Total Current Liabilities
 

 

23.629

Net Current Assets
 

 

5.719

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.000

 

 

 

 

TOTAL

 

 

19.290

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

31.03.2010

 

SALES

 

 

 

 

 

Income

 

 

73.818

 

 

Other Income

 

 

9.599

 

 

TOTAL                                     (A)

 

 

83.417

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of production

 

 

62.773

 

 

Stock of finished goods

 

 

(0.750)

 

 

Transport expenses

 

 

1.890

 

 

Salary

 

 

1.848

 

 

KVAT

 

 

1.270

 

 

Excise Duty

 

 

6.197

 

 

GVAT

 

 

0.770

 

 

Loading and Unloading Expenses

 

 

0.112

 

 

Other Expenses

 

 

3.468

 

 

TOTAL                                     (B)

 

 

77.578

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

 

 

5.839

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

 

 

0.103

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

 

 

5.736

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

 

 

0.141

 

 

 

 

 

 

NET PROFIT/LOSS  (E-F)                                 (G)

 

 

5.595

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

 

 

14.150

 

TOTAL EARNINGS

 

 

14.150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2010

 

 

 

 

 

PAT / Total Income

(%)

 

 
6.71

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

 

 
7.58

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

 

 
13.03

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

 

 
0.49

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

 

 
2.76

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

 

 
1.24

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

Available in Report [Yes/No]

Year of Establishment

Yes

Locality of the Firm

Yes

Constitution of the firm

Yes

Premises details

Yes

Type of Business

Yes

Line of Business

Yes

Promoters background

Yes

No. of Employees

Yes

Name of Person Contacted

Yes

Designation of contact person

Yes

Turnover of firm for last three years

Yes

Profitability for last one year

Yes

Reasons for variation <> 20%

-

Estimation for coming financial year

Yes

Capital the business

Yes

Details of sister concerns

Yes

Major Suppliers

Yes

Major Customers

No

Payment Terms

Yes

Export / Import Details [If Applicable]

Yes

Market Information

-

Litigations that the firm / promoter involved in

-

Banking Details

Yes

Banking Facility Details

Yes

Conduct of the banking account

-

Buyer visit details

-

Financials, if provided

Yes

Incorporation details, if applicable

No

Last accounts filed at ROC

No

Major Shareholders, if applicable

No

Date of Birth of Proprietor/Partner/Director, if available

Yes

PAN of Proprietor/Partner/Director, if available

No

Voter ID No of Proprietor/Partner/Director, if available

No

External Agency Rating, if available

No

 

 

DIAMOND INDUSTRY – INDIA

 

·         From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

 

·         The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

·         The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

·         Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

·         Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

·         The diamond jewellery industry in India today may be more than Rs 60.000 Millions and is rated amongst the fastest growing  in the world. India ranks third in the world in domestic diamond consumption.

·         Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

·         Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

·         This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 20000.000 Millions lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

·         Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 

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.55.70

UK Pound

1

Rs.89.34

Euro

1

Rs.72.35

 

 

INFORMATION DETAILS

 

 

Information Gathered by :

PJA

 

 

Report Prepared by :

BYI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

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

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

 

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

 

 

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.