MIRA INFORM REPORT

 

 

Report Date :

04.10.2012

 

IDENTIFICATION DETAILS

 

Name :

PRECISE SMALL MOTORS PRIVATE LIMITED

 

 

Registered Office :

B-243, 2nd Stage, 6th Main, Peenya Industrial Estate, Bangalore – 560 058, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.01.1994

 

 

Com. Reg. No.:

08-015100

 

 

Capital Investment / Paid-up Capital :

Rs.2.500 millions

 

 

CIN No.:

[Company Identification No.]

U31909KA1994PTC015100

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRP01545F

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of FHP Motors. 

 

 

No. of Employees :

25 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 11000

 

 

Status :

Small Company

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a small company in its field. It’s scale of activities are limited. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

The company can be considered for business dealings with some caution.

 

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. Raja

Designation :

Production Manager

Contact No.:

91-80-28361800

Date :

14.09.2012

 

 

LOCATIONS

 

Registered Office/ Factory :

B-243, 2nd Stage, 6th Main, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India

Tel. No.:

91-80-28361800

Mobile No.:

91-9341210259 (Mr. Baliga B.N.)

Fax No.:

91-80-28362404

E-Mail :

baligabn@gmail.com

Website :

www.precisesmallmotors.tradeindia.com

Area :

1500 sq ft

Location :

Owned

 

DIRECTORS

 

As on 30.09.2011

 

Name :

Mr. Narasimha Bantwal Baliga

Designation :

Managing Director

Address :

65, 2nd Cross, Sundar Nagar, North Additional, Bangalore – 560 064, Karnataka, India

Date of Birth/Age :

11.11.1962

Date of Appointment :

04.01.1994

DIN No.:

01867463

 

 

Name :

Aravinda Bantwal Baliga

Designation :

Director

Address :

65, 2nd Cross, Sundar Nagar, North Additional, Bangalore – 560 064, Karnataka, India

Date of Birth/Age :

11.10.1964

Date of Appointment :

18.07.2009

DIN No.:

02648414

 

 

KEY EXECUTIVES

 

Name :

Mr. Raja

Designation :

Production Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2010

 

Names of Shareholders

 

No. of Shares

Heera Baliga

12500

Narasimha Baliga

17000

Aravinda Baliga

11250

Govinda Baliga

9250

Total

50000

 

As on 30.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of FHP Motors. 

 

 

Products :

FHP Motors

v      F.H.P Motors

v      Siren Motor

v      Geared Motor

v      FHP Motors for Switchgear

v      PMDC Motors for Dish Antenna

v      Circulation Pump Motor

v      Domestic FHP Motors

v      Circulation Pump Motor with Stirrer

v      Vacuum Pump Motor

v      Electric Motor

v      Electric Motors

v      Electric Induction Motor

v      FHP Induction Electric Motors

v      Electric FHP Motors

v      Electric FHP Induction Motors

v      FHP Motor Parts

v      FHP Electric Motors Parts

 

 

Exports :

 

Products :

FHP Motors

Countries :

v      Australia

v      USA

v      Russia

v      Malaysia

 

 

Imports :

 

Products :

Raw Material

Countries :

v      China

 

 

Terms :

 

Selling :

Cash and Credit 

 

 

Purchasing :

Cash and Credit 

 

 

GENERAL INFORMATION

 

Suppliers :

v      Pavan Electronics

v      Precision Castings

v      Ace Industries

v      Bakoplast

v      Nisiki Technologies Limited

v      R.V. Enterprises

 

 

Customers :

End Users

 

v      Delstar Private Limited

v      ITC Limited

v      Voltech Power Services

v      Power Gear Limited

v      The Mysore Electrical Industries Limited

v      The Maharashtra Electrical Industries

 

 

No. of Employees :

25 (Approximately)

 

 

Bankers :

v      State Bank of India, SME Branch, Peenya 2nd Stage, No.45/B, 2nd Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India

v      State Bank of India, SME City Credit Centre, Seshadripuram, Badaganadu Sangha Building, Kumara Park, Bangalore – 560 020, Karnataka, India

v      ICICI Bank Limited

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Cash Credit From State Bank of India

0.319

0.260

EPCC From State Bank of India

0.000

0.000

State Bank of India Term Loan

2.655

0.000

Car Loan From ICICI

0.000

0.014

Total

2.974

0.274

 

Unsecured Loans

31.03.2011

(Rs. In Millions)

31.03.2010

(Rs. In Millions)

Unsecured Loans

2.874

1.873

Total

2.874

1.873

 

State Bank of India Term Loan is secured by the first charge on machinery purchased.

Immovable Properties (Assets) along with Book Debts, Stock and Other Current Assets of the Company.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

K.S. Prashanth and Associates

Chartered Accountants

Address :

No.32, 1st Floor, Bugle Rock Road, Gandhibazar, Basavanagudi, Bangalore – 560 004, Karnataka, India

Tel. No.:

91-80-26622180

E-Mail :

kspaca@gmail.com

Income-tax PAN of auditor or auditor's firm :

AQQPP0593B

 

 

Sister Concerns :

v      Adpack Industries

Address: B-243, 2nd Stage, 6th Main, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India

Line of Business: Manufacturer and Exporter of FHP Motors.

 

v      Unipro Industries

v      Adcol Industries

 

 

CAPITAL STRUCTURE

 

As on 30.09.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs.10/- each

Rs.2.500 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

250000

Equity Shares

Rs.10/- each

Rs.2.500 millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2.500

0.500

0.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.299

0.300

0.351

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2.799

0.800

0.851

LOAN FUNDS

 

 

 

1] Secured Loans

2.974

0.274

0.952

2] Unsecured Loans

2.874

1.873

1.206

TOTAL BORROWING

5.848

2.147

2.158

DEFERRED TAX LIABILITIES

0.215

0.035

0.054

 

 

 

 

TOTAL

8.862

2.982

3.063

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

4.012

1.364

1.855

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.899
3.151

0.296

 

Sundry Debtors
2.321
(0.896)

1.204

 

Cash & Bank Balances
0.041
0.281

0.044

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
2.154
0.170

0.141

Total Current Assets
5.415
2.706

1.685

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
1.071
1.242

0.359

 

Other Current Liabilities
(0.506)
 (0.154)

0.100

 

Provisions
0.000
0.000

0.018

Total Current Liabilities
0.565
1.088

0.477

Net Current Assets
4.850
1.618

1.208

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

8.862

2.982

3.063

 

 

 

 

PROFIT AND LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

11.756

              2.284

              2.470

 

 

Other Income

 

0.753

NA

 

 

TOTAL                                    

11.756

3.037

NA

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Office Expenses

10.676

2.841

NA

 

 

Administrative Expenses

 

 

 

 

 

Advertising Expenses

 

 

 

 

 

TOTAL                                    

10.676

2.841

NA

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

1.080

0.196

NA

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                    

0.509

0.266

NA

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

0.571

            (0.070)

           (0.135)

 

 

 

 

 

Less

TAX                                                                 

0.422

(0.019)

(0.006)

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

0.149

            (0.051)

            (0.129)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

7.066

0.000

0.000

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

0.60

              (1.02)

              (2.59)

 

 

Particulars

 

 

 

31.03.2012

Sales Turnover (Approximately)

 

 

37.000

 

 

 

 

 

Expected Sales (2012-2013): Rs.60.000 millions

 

The above information has been parted by Mr. Raja (Production Manager).

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

1.27
(1.68)

NA

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

NA
(3.06)

(5.46)

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.06
(1.72)

(3.81)

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.20
(0.09)

(0.16)

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.29
4.04

3.10

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

9.58
2.49

3.53

 

 

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

Yes

17) Major suppliers

Yes

18) Major customers

Yes

19) Payments terms

Yes

20) Export / Import details (if applicable)

Yes

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

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

Yes

32) PAN of Proprietor/Partner/Director, if available

No

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

No

34) External Agency Rating, if available

No

 

 


Bankers Charges Report as per Registry

 

Corporate identity number of the company

U31909KA1994PTC015100

Name of the company

PRECISE SMALL MOTORS PRIVATE LIMITED

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

B-243, 2nd Stage, 6th Main, Peenya Industrial Estate, Bangalore – 560 058, Karnataka, India

E-Mail: baligabn@gmail.com

This form is for

Modification of charge

Charge identification number of the modified 

80059963

Type of charge

Immovable Property

Book Debts

Movable Property (not being pledge)

Floating Charge

Particular of charge holder

State Bank of India, SME Branch, Peenya 2nd Stage, No.45/B, 2nd Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India

E-Mail: rjr.cs69@gmail.com

Nature of description of the instrument creating or modifying the charge

Agreement of loan cum Hypothecation Form SME-4 and memorandum for recording extension of mortgage by deposit of title deeds form SME-7 (both pertain to the same charge)

Date of instrument Creating the charge

03.08.2012

Amount secured by the charge

Rs.13.585 millions

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

Rate of Interest:

WCL: At 3.00% above BR, effective rate 13.00% p.a. with monthly rests.

TL (1 and 2): At 3.15% above BR, effective rate 13.15% p.a. with monthly rests.

Penal Interest: Maximum 2% p.a. over the normal rate.

 

Terms of Repayment:

WCL: On demand. Advance is for a period of 12 months.

 

Term Loan-1 (Existing): As per existing terms of sanction.

 

Term Loan-2 (New): in 80 monthly installments, first 60 monthly installments of Rs.0.085 million each and last 20 monthly installments of Rs.0.075 million each.

 

Margin:

RM/SFG/FG/Receivables/BG/TL : 25%

 

Extent and Operation of the charge:

Exclusive first charge on the assets of the company and to the full extent.

 

Others:

Cash Credit Rs.4.000 millions; Term Loan-1 (Existing) Rs.1.760 millions; Term Loan-2 (New) Rs.6.600 millions; Bank Guarantee Rs.1.225 millions; Total Rs.13.585 millions.

Short particulars of the property charged

Hypothecation of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, etc., EM of Factory land and building situated at No.B-243, 2nd Stage, 6th Main, Peenya Industrial Estate, Bangalore – 560 058, Measuring 444.46 Sq. Mtrs.

Date of latest modification prior to the present modification

24.06.2010

Particulars of the present modification 

The amount secured by the charge stands Increased to Rs.13.585 millions. All other terms and conditions remain unchanged.

 

FIXED ASSETS:

 

v      Active Honda

v      Air Conditioner

v      Cell Phone

v      Computers

v      DG Set

v      DG Room

v      Electrical Motor

v      Electrical Installation

v      Factory Building

v      Furniture and Fixtures

v      Instruments

v      Office Equipments

v      Plant and Machinery

v      Printer

v      Security Shed

v      Vehicles

v      Welding Machine

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 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.52.33

UK Pound

1

Rs.84.30

Euro

1

Rs.67.45 

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

 

26

 

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.