MIRA INFORM REPORT
|
Report Date : |
10.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
STUMPP SCHUELE AND SOMAPPA SPRINGS PRIVATE LIMITED (w.e.f 06.12.2007) |
|
|
|
|
Formerly Known
As : |
ALLEVARD SPRINGS (INDIA) PRIVATE LIMITED |
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|
Registered Office
: |
139/2, Hosur Road, Koramangala, Bangalore – 560095, Karnataka |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
12.08.1996 |
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|
|
|
Com. Reg. No.: |
08-038742 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.30.100
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29299KA1996PTC038742 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRS28339D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AALCS7347E |
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|
|
|
Legal Form : |
Private Limited Liability Company |
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|
|
Line of Business
: |
Manufacturer and Supplier of Stabilizer Bars and all Varieties of
Springs, all type of Automobile Components, Spare Parts and Accessories etc. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1100000 |
|
|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is a subsidiary of “Stumpp Schuele and Somappa Private
limited”. It is an established company having a moderate track record. Management has filed form 66 i.e. compliance certificate whereas
failed to file the latest financial information for 2014 with the government
department. The profit of the company has dipped drastically during 2013. Profit
margin of the company also appears to be low. However, trade relations are reported as fair. Business is active.
Payment terms are reported as slow but correct. The company can be considered for business dealings with 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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
N E W S
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated
losses, recently approached the Delhi high court for relief in two separate
cases. The airline challenged a notice by Punjab & National Bank alleging
that It had illfully defaulted on Rs 7700 mn of loans and sought more time to
comply with the requirements under the listing agreements with the Stock
Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating = BB+ (Suspended) |
|
Rating Explanation |
Moderate risk of default regarding timely servicing of financial
obligations |
|
Date |
17.09.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating = A4+ (Suspended) |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
17.09.2014 |
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
31-03-2014.
INFORMATION DECLINED
Management Non Co-operative (91-80-25532335)
LOCATIONS
|
Registered Office : |
139/2, |
|
Tel. No.: |
91 80 25532335 (8 lines) / 40707400 / 25532858 |
|
Fax No.: |
91 80 25530622 /
25532379 |
|
E-Mail : |
ravi@ssssprings.com
(International Sales – Ravi Machani) amarbabu@ssssprings.com
(Domestic Sales – Amar Babu) |
|
Website : |
|
|
|
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|
Sales Office : |
PO Box 275, New |
|
Tel. No.: |
+1 (248) 4123367 |
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Fax No.: |
+1 (248) 2645000 |
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E-Mail : |
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Regional Offices : |
Located at : Pune : 91-20-5898956 / 656 Chennai : 91-4426810028 / 0727 Kolkata : 91-33-4222265 Tel. No. : 91 124 2210821/820 |
DIRECTORS
As on 30.09.2013
|
Name : |
Mr. Ramanna Gangadhar Machani |
|
Designation : |
Director |
|
Address : |
M. G. Brothers Automobiles Private Limited, Dargamitta, |
|
Date of Birth/Age : |
18.09.1958 |
|
Date of Appointment : |
04.06.2009 |
|
DIN No.: |
00267779 |
|
|
|
|
Name : |
Mr. Ramesh Ramanna Machani |
|
Designation : |
Whole-time Director |
|
Address : |
No.456, Kothanur Cross, |
|
Date of Birth/Age : |
15.03.1946 |
|
Date of Appointment : |
12.08.1996 |
|
DIN No.: |
00319941 |
|
PAN No.: |
AAXPR8906K |
|
|
|
|
Name : |
Mr. Satish Ramesh Machani |
|
Designation : |
Managing Director |
|
Address : |
No.456, Kothanur Cross, |
|
Date of Birth/Age : |
01.10.1971 |
|
Date of Appointment : |
04.06.2009 |
|
DIN No.: |
00320532 |
|
PAN No.: |
AEOPS9018L |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Whole-time Director |
|
Address : |
No.456, Kothanur Cross, |
|
Date of Birth/Age : |
08.08.1973 |
|
Date of Appointment : |
04.06.2009 |
|
DIN No.: |
00320603 |
|
PAN No.: |
ABEPR3804I |
|
|
|
|
Name : |
|
|
Designation : |
Director |
|
Address : |
7C, Sukhi Apartments, |
|
Date of Birth/Age : |
28.05.1945 |
|
Date of Appointment : |
12.08.1996 |
|
DIN No.: |
00471801 |
|
PAN No.: |
AJXPS7902B |
|
|
|
|
Name : |
Mr. Machani Ramanna Ganganna |
|
Designation : |
Director |
|
Address : |
1/1400, HSB Colony, Yemmiganur, 518360, |
|
Date of Birth/Age : |
03.02.1944 |
|
Date of Appointment : |
04.06.2009 |
|
DIN : |
02063513 |
|
|
|
|
Name : |
Mrs. Deepa Anil Kumar |
|
Designation : |
Director |
|
Address : |
No.456, Kothanur Cross, |
|
Date of Birth/Age : |
03.03.1976 |
|
Date of Appointment : |
06.09.2010 |
|
DIN : |
02741980 |
|
PAN No.: |
ABGPS2479R |
|
|
|
|
Name : |
Mr. Sudhakar Machani |
|
Designation : |
Additional Director |
|
Address : |
No 404, 5th Cross, RBI Layout, 7th Phase, J P Nagar, Bangalore
- 560078, Karnataka, India |
|
Date of Birth/Age : |
05.08.1956 |
|
Date of Appointment : |
05.12.2012 |
|
DIN : |
02534695 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Stumpp Schuele and Somappa Springs Private Limited, India |
|
3009990 |
|
M R Ramesh |
|
10 |
|
Total |
|
3010000 |
As on 30.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage |
|
Bodies corporate |
99.90 |
|
Directors or relatives of Directors |
0.10 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Supplier of Stabilizer Bars and all Varieties of
Springs, all type of Automobile Components, Spare Parts and Accessories etc. |
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Products : |
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
|
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|
Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Brahmayya and Company Chartered Accountants |
|
Address : |
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|
PAN No.: |
AAASB9147R |
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Holding
Company : |
Stumpp Schuele and Somappa Private Limited |
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Enterprises which
are owned, or have significant influence of or are partners with Key
management personnel and their relatives : |
|
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000 |
Equity Shares |
Rs.10/- each |
Rs.75.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3010000 |
Equity Shares |
Rs.10/- each |
Rs.30.100
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
30.100 |
30.100 |
30.100 |
|
(b) Reserves & Surplus |
362.777 |
345.492 |
313.837 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
392.877 |
375.592 |
343.937 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
165.663 |
135.741 |
86.878 |
|
(b) Deferred tax liabilities (Net) |
7.658 |
9.297 |
12.705 |
|
(c) Other long term
liabilities |
2.024 |
2.124 |
17.514 |
|
(d) long-term
provisions |
31.743 |
25.039 |
20.484 |
|
Total Non-current
Liabilities (3) |
207.088 |
172.201 |
137.581 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
668.407 |
866.611 |
823.896 |
|
(b) Trade
payables |
471.575 |
481.999 |
322.058 |
|
(c) Other
current liabilities |
153.917 |
178.195 |
130.660 |
|
(d) Short-term
provisions |
8.036 |
7.332 |
22.825 |
|
Total Current
Liabilities (4) |
1301.935 |
1534.137 |
1299.439 |
|
|
|
|
|
|
TOTAL |
1901.900 |
2081.930 |
1780.957 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
595.540 |
585.378 |
466.816 |
|
(ii)
Intangible Assets |
1.631 |
1.112 |
1.854 |
|
(iii)
Capital work-in-progress |
29.918 |
30.593 |
12.464 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.100 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
144.429 |
290.063 |
270.706 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
771.618 |
907.146 |
751.840 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
427.128 |
460.955 |
374.145 |
|
(c) Trade
receivables |
601.909 |
588.444 |
513.288 |
|
(d) Cash
and cash equivalents |
56.025 |
66.300 |
83.958 |
|
(e)
Short-term loans and advances |
45.220 |
59.085 |
57.726 |
|
(f) Other
current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
1130.282 |
1174.784 |
1029.117 |
|
|
|
|
|
|
TOTAL |
1901.900 |
2081.930 |
1780.957 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2843.844 |
2779.796 |
2491.293 |
|
|
|
Other Income |
15.626 |
8.983 |
6.462 |
|
|
|
TOTAL (A) |
2859.470 |
2788.779 |
2497.755 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
1685.057 |
1602.970 |
1393.500 |
|
|
|
Change In inventories |
(3.015) |
(30.684) |
(22.052) |
|
|
|
Employee benefit expenses |
371.022 |
356.786 |
305.139 |
|
|
|
Other expenses |
543.275 |
552.372 |
484.842 |
|
|
|
TOTAL (B) |
2596.339 |
2481.444 |
2161.429 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
263.131 |
307.335 |
336.326 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
136.476 |
150.050 |
106.118 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
126.655 |
157.285 |
230.208 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
108.367 |
128.550 |
106.931 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
18.288 |
28.735 |
123.277 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(1.638) |
(11.666) |
34.494 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
19.926 |
40.401 |
88.783 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export on FOB Basis |
48.077 |
38.002 |
26.154 |
|
|
TOTAL EARNINGS |
48.077 |
38.002 |
26.154 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
CIF Value of Imports |
648.408 |
662.638 |
NA |
|
|
TOTAL IMPORTS |
648.408 |
662.638 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.62 |
13.42 |
29.50 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Net Profit Margin (PAT / Sales) |
(%) |
0.70 |
1.45 |
3.56 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
9.25 |
11.06 |
13.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.98 |
1.40 |
6.97 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.08 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.12 |
2.67 |
2.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.87 |
0.77 |
0.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
30.100 |
30.100 |
30.100 |
|
Reserves & Surplus |
313.837 |
345.492 |
362.777 |
|
Net worth |
343.937 |
375.592 |
392.877 |
|
|
|
|
|
|
long-term borrowings |
86.878 |
135.741 |
165.663 |
|
Short term borrowings |
823.896 |
866.611 |
668.407 |
|
Total borrowings |
910.774 |
1002.352 |
834.070 |
|
Debt/Equity ratio |
2.648 |
2.669 |
2.123 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
2491.293 |
2779.796 |
2843.844 |
|
|
|
11.580 |
2.304 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
2491.293 |
2779.796 |
2843.844 |
|
Profit |
88.783 |
40.401 |
19.926 |
|
|
3.56% |
1.45% |
0.70% |
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
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 |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE AND
FUTURE OUTLOOK:
During the year the Company recorded a turnover of Rs.2859.469 Millions as against Rs.2788.779 Millions in 2011-2012. Profit for the years is Rs.18.288 Millions.
COMPANY OVERVIEW
Subject is
(originally incorporated on 12-08-1996 as Allevard Springs(India) Private
Limited) to carry on the business of manufacturers and supply of Stabilizer
bars and all varieties of Springs, all type of automobile components, spare
parts and accessories etc.
During the Financial
Year 2009-10 the Company entered into a Business Transfer Agreement with
Stumpp, Schuele and Somappa Private Limited, the parent company, to purchase
its Springs Division with effect from 1st Aug 2009.
The Company has
commenced the generation of windmill energy, 600 KW on 22nd September 2010 and
1.2 MW on 30th September, 2011. The objective of this project is to generate
the power for captive consumption.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10319786 |
08/11/2011 |
80,000,000.00 |
STATE BNAK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, SHERIFF HOUSE,, INDUST |
B26095133 |
|
2 |
10314219 |
31/12/2010 |
200,000,000.00 |
STATE BANK OF TRAVANCORE |
RESIDENCY ROAD BRANCH, AISHWARYA CASTLE, # 10,, C |
B14239719 |
|
3 |
10246298 |
24/03/2011 * |
340,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, "SHERIFF HOUSE", 1ST FLOOR, 85, RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
B11880358 |
|
4 |
10233602 |
20/06/2011 * |
875,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, RESIDENCY PLAZA, RESID |
B17256165 |
|
5 |
10208143 |
26/02/2010 |
190,000,000.00 |
INDUSIND BANK LIMITED |
DU PARC TRINITY, WEST WING, I FLOOR, NO. 17, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
A81584559 |
* Date of charge modification
FIXED ASSETS
· Plant and Machinery
· Computers
· Electrical Installations
· Furniture and Fixture
· Vehicles
·
Know-how
AS PER WEBSITE
PRESS RELEASE
LOCKOUT AT STUMP,
SCHUELE, AND SOMAPPA: A CITIZENS’ FACT-FINDING REPORT
June 27, 2014
Stumpp, Schuele and Somappa Springs Private Limited (SSSPL), a leading manufacturer of springs for cars, two-wheelers and commercial vehicles, declared a lockout at its Hosur Road factory for its contract workers on 1st March 2014, and five days later, also for its permanent workers. All these workers who were also union members were suddenly rendered jobless. Concerned about the lock-out incident, a group of citizens formed a team and decided to undertake a fact-finding investigation; the following are the details from the report.
In order to understand what exactly brought about the lockout since March 6th, one has to look at the work conditions of contract workers in the factory vis-à-vis work conditions of permanent workers. In the factory, there are only 88 permanent workers, while there are 240 contract workers. According to the workers, although contract workers, permanent workers, and workers designated by the company as ‘engineers’ do the same work on the same machine, the differences in their remuneration are huge, ranging from Rs.6000 for contract workers to Rs.12 – 15000 for permanent workers and Rs.20000+ for workers designated as engineers. Contract workers are also denied benefit of many of the 14 components of wages given to permanent workers.
In order to fight this blatant imbalance in the remuneration among different workers, the union felt the need to bring together the contract and permanent workers and create a common union. In September 2012, the union filed a petition before the Labour Commissioner seeking payment of the same wages as the permanent workers for contract workers as per Rule 25 of the Contract Labour (Regulation and Abolition) Act, as both the workers were doing the same work. The union was told by the management to keep out the contract workers from the Union and withdraw its support to their demands. When the Union stood by their demands, the Management declared a lock-out for the 240 contract workers on 1 March 2014, and refused to allow them into the factory to work, and refused to come forward for any talks. In solidarity with the contract workers, on 6th March 2014, the permanent workers issued a notice for a tool down strike to the Management seeking for them to come for negotiations. However, enraged by the support given by the permanent workers, the Management declared a lock-out on 6th March 2014.
In the meanwhile, a surprise inspection, by a team of officials from the Revenue Department, found that the management after declaring a lockout illegally brought in more than 100 workers from other states and northern districts of Karnataka. The team found that they were being made to work under ‘inhuman conditions’ and were treated like bonded labourers.
The Labour Department then initiated a conciliation to resolve the crisis, but it failed due to the obstinate stance of the management, and the matter was referred to the government. The Labour Secretary referred the dispute to the Labour Court and passed an order on 7th April 2014, prohibiting the lockout by the management.
On 10th April 2014, the management stated that only the permanent workers would be allowed inside the factory; when the union protested, they assured the Union and the Deputy Labour Commissioner that they would be willing to allow the contract workers to resume work within a short period. With this understanding, the permanent workers were allowed to resume their work on 11th April 2014.
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 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.61.52 |
|
|
1 |
Rs.97.39 |
|
Euro |
1 |
Rs.76.16 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
31 |
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.