BUSINESS AND MANAGEMENT
STRENGTHS
Organizational stability coupled with management expertise: An
established track record and management expertise of 08 years indicates
the firm’s ability to maintain business viability and steer the business
through operational hurdles.
Good business certainty:
- The firm has demonstrated secular growth in revenues for the past
Three financial years which is reflected in increase in net sales to
Rs.650 lakhs during 2022-23 from Rs.207 lakh during 2020-21 and
Rs.59 lakh during 2020-19.
- It has also significantly recorded the net sales of Rs 800 lakh from 1st April 2021to March 31st 2022. Moreover, it has future
projects in hand of worth Rs.1200-1900 lakh projects in our hands
RISK FACTORS
Tender-based business: Business certainty inherently depends on the
tenders floated during the year and competition from other bidders as the
entire business is tender-based; however, the success ratio on average,
stands at 24.00 per cent
Margin may be constrained in future due to:
- Volatility in the price of materials
- Increasing competition from other market players
FINANCIAL
STRENGTHS
Good working capital management: Receivables were in line with the
firm’s credit terms from 2019-20 to 2020-21.& Bank financers
RISK FACTORS
Moderate profitability: The firm’s ability to enhance operational efficiency
while scaling up operations remains to be seen, as it registered a
moderate operating profit before depreciation, interest, and tax (OPBDIT)
margin of 5.55 per cent, profit after tax (PAT) margin of 3.08 per cent, and
return on capital employed (ROCE) of 30.39 per cent in 2019-20.
High reliance on external debt: The firm’s debt-equity ratio (not including
promoter loans as debt) of 4.39 times as on March 31, 2020 leaves its net
worth vulnerable to decline in asset values
Stretched payables : for the last three financial years may strain supplier
relationships and impact raw material availability.
| Name of the firm |
: |
KML SOURCEING SOLUTIONS |
| Year of establishment |
: |
2013 |
| Commencement of operations |
: |
October 3 rd , 2013 |
| Legal status |
: |
Proprietorship |
| Legal history |
: |
- The firm was established in 2013 as a proprietorship firm by Ms. KML Sourceing Solutions
- There has been no change in the name, management, constitution and business of the firm, since inception. |
| Registered with |
: |
R&B , IRRIGATION , TTD |
| GSTN Registration number |
: |
37BUIPD5607B1Z0 |
| MSME Number |
: |
UDYAM-AP-10-0016704 |
| TAN Number |
: |
VPNK03380G |
| Proprietary |
: |
Mrs. Dadi Kanaka Durga |
| Category of entrepreneur |
: |
General |
Registered office, Administrative office
and service facility address |
: |
Flat-101 ,D.num :49-54-15/1/4 Sree Keerhi Apartments , Radha Krishna Layout Seethammadhara Visakhapatnam Andhra Pradesh – 530013,
Mob: +91-9701841289, Email: kmlsspl@gmail.com, info@kmlsspl.com |
| Number of employees |
: |
Permanent: 16, Contractual: 62 |
Certifications and awards
Brands |
: |
TIRUMALA TIRUPATHI DHAVASTHANAMS, DBL ,ABL,GVR,GDCL,KNR,TTK,SPL,BSR |
| Nature of business |
: |
Construction Services |
| Industry |
: |
Structures Construction – All kinds of Projects |
| Industry prospects |
: |
Strong |
| Business description |
: |
Business : The firm undertakes civil construction work and earthwork, which include; construction of irrigation canals |
| Construction Equipment |
: |
01. The firm owns the following equipment
02. AUTO level instruments,
03. JCB/EX70
04. Hydraulic Rotary Piling rigs 04nos MAIT 180 ,SANY-155,BG-28VL,26H With Different Torques
05. Heavy duty Socketing tools
06. Vibro Hammers
07. Excavator& Brakers
08. Excavators
09. Tire mounted & Crawlers cranes
10. Test pile equipments.
11. Tippers or dumpers
12. Shuttering materials
13. Scaffolding materials |
| Project Execution |
: |
- The number of projects undertaken by the company varies annually depending on the volume of ongoing projects.
- The company can simultaneously undertake 4 projects at a time.
- The minimum execution team required is of 50 members
- The average time taken for construction ranges from 2 months to 36 months. |
| Payment |
: |
- The firm adopts a percentage completion method to account for revenue earned from construction contracts. Vouchers submitted by the firm undergo technical and financial inspection by various committees appointed by the respective government/public sector department, post which the amount is disbursed.
- The average time gap between submission of vouchers and receipt of amount by the company is between 45- 60 days. |
| Time and cost overruns |
: |
- The firm is penalised for delays in projects due to unforeseen circumstances to the extent of 5.00 per cent of total cost of raw material.
- It does not maintain price escalation clause in its Contracts. |
| Technical Experience |
: |
23 years |
| Product range |
: |
Diverse |
| Degree of competition |
: |
High; entry barriers are low |
| Plans |
: |
The firm does not have any expansion or diversification plans for the near future. |
| Customer profile |
: |
Direct customers |
| |
|
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