|
Report Date : |
13.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
LIKHITA PROCESS INDUSTRIES |
|
|
|
|
Registered
Office : |
Plot No. A-59/1, Part, IDA Kukatpally, Gandhinagar, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Year of
Establishment : |
2005 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.17.999 Millions |
|
|
|
|
TIN No.: |
28671714550 |
|
|
|
|
IEC No.: |
0909011818 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACFL5757F |
|
|
|
|
Legal Form : |
Partnership Concern with an unlimited liability of the Partners |
|
|
|
|
Line of Business
: |
Manufacturer of |
|
|
|
|
No. of Employees
: |
53 (Approximately) [In Office 8 + In Factory 45] |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 76000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established partnership concern having a moderate track
record. Site visit was conducted at the site our executive traced the subject.
Trade relations are fair. Business is active. Payment terms are slow
but correct. The concern can be considered for business dealings at usual trade
terms and condition/ 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in
agriculture, industry and services. Dampening sentiment led to a cut-back in
investment as well as private consumption expenditure. Inflation remained
at high levels fuelled by the pressure from the food and fuel sectors. The
large fiscal and current account deficit s continued to cause grave concern. It
is imperative that India regains its growth trajectory of 8-9 % sooner than
later. This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
B+ (Cash Credit) |
|
Rating Explanation |
High risk of default. |
|
Date |
31.12.2012 |
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 : |
P.V. Sagar Reddy |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-9849911936 |
|
Date : |
07.08.2013 |
LOCATIONS
|
Registered Office/ Factory : |
Plot No. A-59/1, Part, IDA Kukatpally, Gandhinagar, Hyderabad –
500037, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23720194 |
|
Mobile No.: |
91-9849911936 (P.V. Sagar Reddy) |
|
Fax No.: |
91-40-23720192 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
1645 Sq. ft. |
|
Location : |
Owned |
PARTNERS
|
Name : |
Mr. T. Yellamanda |
|
Designation : |
Partner |
|
Address : |
Plot No.20, Raashi Developers Kukatpally, Hyderabad, Andhra Pradesh,
India |
|
Date of Birth/Age : |
48 Years |
|
Qualification : |
B. Tech |
|
Experience : |
15 Years |
|
|
|
|
Name : |
Mr. T. Anantha Lakshmi |
|
Designation : |
Partner |
|
Address : |
Plot No.20, Raashi Developers Kukatpally, Hyderabad, Andhra Pradesh,
India |
|
Date of Birth/Age : |
42 Years |
|
Qualification : |
Graduate |
|
Experience : |
8 Years |
KEY EXECUTIVES
|
Name : |
P.V. Sagar Reddy |
|
Designation : |
Accounts Manager |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Wind Tower Generator Components. |
|
|
|
|
Product : |
·
Windmill Tower Internal ·
Solar Structures ·
Power Substation Equipments |
|
|
|
|
Exports : |
|
|
Products : |
Windmill Towers |
|
Countries : |
Vietnam |
|
|
|
|
Terms : |
|
|
Selling : |
Credit (60 Days) |
|
|
|
|
Purchasing : |
Credit (60 Days) |
GENERAL INFORMATION
|
Customers : |
OEM’s ·
Suzlon Energy Limited ·
Regen Powertech Private Limited ·
CR. Reddys Limited ·
Tata BP Solar Limited ·
Aurobindo Pharma ·
Covalant Labs ·
Nfity Labs ·
GE |
|
|
|
|
No. of Employees : |
53 (Approximately) [In Office 8 + In Factory 45] |
|
|
|
|
Bankers : |
State Bank of Hyderabad, Sanath Nagar, Hyderabad – 500018, Andhra
Pradesh, India |
|
|
|
|
Facilities : |
Rs.45.000 Millions (From State Bank of Hyderabad) |
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
G. Pulla Reddy Chartered Accountants |
|
Mobile No.: |
91-9848533996 |
|
|
|
|
Sister Concerns : |
·
Likhita Energy Systems Private Limited Address: APIIC Growth Centre,
Gullapally, Ongole, Andhra Pradesh, India Line of
Business: Manufacturers of Windmill towers for Non-conventional energy. ·
Likhita Fabtech Engineers Address: A – 15, IDA,
Gndhinagar, Kukatpally, Hyderabad – 500037, Andhra Pradesh, India Line of Business: Manufacturers
of Chemical Plant Equipments. ·
Future Infra Projects ·
Connect Globe IT Solutions Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
|
Capital Investment : |
|
|
Owned : |
Rs.17.999 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.17.999
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
Note : Sole Proprietory and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
17.999 |
9.304 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
1.194 |
1.194 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
19.193 |
10.498 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
57.856 |
21.468 |
|
|
2] Unsecured Loans |
|
7.056 |
8.908 |
|
|
TOTAL BORROWING |
|
64.912 |
30.376 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
84.105 |
40.874 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
26.021 |
15.683 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
19.670 |
24.359 |
|
|
Sundry Debtors |
|
53.315 |
34.417 |
|
|
Cash & Bank Balances |
|
12.633 |
0.098 |
|
|
Other Current Assets |
|
5.824 |
2.624 |
|
|
Loans & Advances & Deposits |
|
10.369 |
6.257 |
|
Total
Current Assets |
|
101.811 |
67.755 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
40.048 |
41.351 |
|
|
Other Current Liabilities |
|
3.590 |
1.122 |
|
|
Provisions |
|
0.089 |
0.091 |
|
Total
Current Liabilities |
|
43.727 |
42.564 |
|
|
Net Current Assets |
|
58.084 |
25.191 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
84.105 |
40.874 |
|
PROFIT & LOSS
A/C
|
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
316.939 |
167.839 |
|
|
|
Other Income |
|
0.000 |
0.171 |
|
|
|
TOTAL |
|
316.939 |
168.010 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
|
1.093 |
(2.539) |
|
|
|
Raw Material Consumed |
|
221.705 |
120.997 |
|
|
|
Consumables Consumed |
|
14.839 |
6.769 |
|
|
|
Electricity Charges |
|
1.168 |
|
|
|
|
Power and Fuel |
|
0 |
0.951 |
|
|
|
Personnel Expenses |
|
10.242 |
4.665 |
|
|
|
Remuneration to Partners |
|
0.360 |
0.360 |
|
|
|
Manufacturing Expenses |
|
28.882 |
16.358 |
|
|
|
Selling general and Administrative Expenses |
|
9.486 |
7.774 |
|
|
|
Interest on capital |
|
1.116 |
1.107 |
|
|
|
Financial Charges |
|
6.732 |
4.557 |
|
|
|
|
|
2.549 |
|
|
|
|
Income Tax and Provisional Tax |
|
4.757 |
1.829 |
|
|
|
TOTAL |
|
302.929 |
162.828 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
14.010 |
5.182 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
4.115 |
2.351 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
|
9.895 |
2.831 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
|
3.12 |
1.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.12 |
1.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
7.74 |
3.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.52 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
|
3.38 |
2.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.33 |
1.59 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 two years |
Yes |
|
12] |
Profitability for last two years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
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 |
Yes |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
No |
|
29] |
Last accounts filed at ROC |
No |
|
30] |
Major Shareholders, if available |
No |
|
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 |
Yes |
TRADE REFERENCE:
·
UBP Towers International
·
Suzlon Energy Limited
·
Regen Powertech Private
Limited
·
Dr. Reddys Limited
·
Aurobindo Pharma Limited
OBSERVATION POINT:
|
Name of the company
|
LIKHITA PROCESS INDUSTRIES |
|
|
91-9849911936 |
|
Address |
Plot No. A-59/1, Part, IDA Kukatpally, Gandhinagar, Hyderabad – 500037, Andhra Pradesh, India |
|
Person Contacted |
P.V. Sagar Reddy |
|
Email ID |
|
|
Website |
|
|
Tel. No. |
91-40-23720190 |
|
Fax No. |
91-40-23720194 |
|
Name Board : |
Not Sighted |
|
Location |
Difficult |
|
Locality |
Factory |
|
Approx. Market
Value of Premises |
Area 6000 Sq. ft. |
|
Area |
Neutral |
|
Visibility of Items
|
Tel Fax Computers AC |
|
No. of Employees
seen at business Premises |
20 |
|
Office Appearance |
Good |
|
Visiting Card
provided as proof of Visit |
Yes |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist oranization
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.60.80 |
|
|
1 |
Rs.94.21 |
|
Euro |
1 |
Rs.81.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
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 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.