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MIRA
INFORM REPORT
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Report Date : |
31.10.2006 |
IDENTIFICATION
DETAILS
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Name : |
DXN
HERBAL MANUFACTURING (INDIA) PRIVATE LIMITED |
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Registered Office : |
R. S.
141/4 & 142/5, Whirpool Road, Thiuvandar Koli, Madadipet Commune,
Pondicherry – 605 102, Union Territory, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.07.2001 |
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Com. Reg. No.: |
59-1607 |
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CIN No.: [Company
Identification No.] |
U24233PY2001PTC001607 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHED04659E |
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PAN No.: [Permanent
Account No.] |
AABCD4141M |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Subject
is engaged in the business of Manufacturing of Lingzhi Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
800000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair. General financial position is satisfactory. Payments are usually
correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office/ Factory/ Corporate
Office: |
R. S.
141/4 & 142/5, Whirpool Road, Thiuvandar Koli, Madadipet Commune,
Pondicherry – 605 102, Union Territory, India. |
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Tel. No.: |
91-413-2640706 |
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Fax No.: |
91-413-2640617 |
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E-Mail : |
DIRECTORS
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Name : |
Mr.
Lim. Sion Jin |
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Designation : |
Director
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Address : |
No.
213, Lebuhraya Sulton, Abdul Halim, Kedah Darul Aman, Alor Setar Kedah –
05400. |
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Name : |
Mr.
ONG Thiam Hwa |
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Designation : |
Director
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Address : |
No.
35-36, 3rd Cross Street, Perumal Raja Garden, Reddiarpalayam,
Pondicherry – 605 010, Union Territory, India. |
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Name : |
Mr.
Tan Chain Liang |
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Designation : |
Director
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Address : |
No. 4,
Jalan Alor Mehgkulu Kampung Sungai, Alor Setar Kedah. |
BUSINESS DETAILS
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Line of Business : |
Subject
is engaged in the business of Manufacturing of Lingzhi Products. |
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Products: |
Ř
Reishi
Gano (RG) Ř
Ganocelium
(GL) |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
|
DXN
International (Private) Limited |
646973 |
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DXN
International Holding Limited |
1 |
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Total: |
646974 |
GENERAL
INFORMATION
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Bankers : |
Allahabad
Bank |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory
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Auditors : |
N. C.
Rajagopal & Co. C/o N.
C. Sundararajan Chartered
Accountant |
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Address: |
22, V.
Krishnasawamy Avenue, Chennai – 600 004, Tamilnadu, India. |
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Tel. No.: |
91-44-24991569 |
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Parent Company: |
Malaysia DXN
(KL) Sdn. Bhd. |
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Tel. No.: |
03-77253388 |
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Fax No.: |
03-77251188 |
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E-Mail : |
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Website: |
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Contact Person: |
Mr. Steven Ho |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 30.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
646974 |
Equity
Shares |
Rs. 10/- each |
Rs. 6.469 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
6.469 |
4.865 |
4.865 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
198.430 |
121.702 |
70.917 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
204.899 |
126.567 |
75.782 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
51.271 |
59.742 |
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TOTAL BORROWING |
0.000 |
51.271 |
59.742 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
204.899 |
177.838 |
135.524 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
57.242 |
61.399 |
64.558 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
41.427
|
52.161 |
74.388 |
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Sundry Debtors |
0.000
|
0.000 |
0.000 |
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Cash & Bank Balances |
14.767
|
27.124 |
11.074 |
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Other Current Assets |
25.274
|
14.962 |
13.802 |
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Loans & Advances |
156.773
|
142.430 |
88.649 |
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Total Current Assets |
238.241
|
236.677 |
187.913 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
89.506
|
119.001 |
111.123 |
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Provisions |
1.197
|
1.415 |
6.062 |
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Total Current Liabilities |
90.703
|
120.416 |
117.185 |
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Net Current Assets |
147.538
|
116.261 |
70.728 |
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MISCELLANEOUS EXPENSES |
0.119 |
0.178 |
0.238 |
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TOTAL |
204.899 |
177.838 |
135.524 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
56.144 |
61.490 |
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Profit/(Loss)
Before Tax |
|
55.206 |
6.149 |
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Provision
for Taxation |
|
4.421 |
4.821 |
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Profit/(Loss)
After Tax |
|
50.785 |
1.328 |
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Total
Expenditure |
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NA |
NA |
KEY
RATIOS
|
PARTICULARS |
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|
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
|
90.45 |
2.16 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
98.32 |
10.00 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
18.51 |
2.43 |
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Return
on Investment (ROI) (PBT/Networth) |
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|
0.44 |
0.08 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.36 |
2.33 |
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Current
Ratio (Current
Asset/Current Liability) |
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|
1.97 |
1.60 |
LOCAL AGENCY
FURTHER INFORMATION
History:
DXN was
founded by Dr. Lim Siow Jin, a graduate from the famed Indian Institute of
Technology.
Dr. Lim
Siow Jin has keen interest in mushrooms and their relationship with human
health. To better understand this relationship, Dr. Lim has travelled far and
wide in search of the King of all Herbs – Lingzhi. After more than 20 years of
research and scientific analysis, Dr. Lim finally discovered the benefits of
Lingzhi, the king of all herbs, to mankind.
Realising
the importance and benefits of Lingzhi, Dr. Lim began sharing his knowledge
about this miraculous herb with his friends, and they too were greatly
impressed with its beneficial medicinal value. However, Dr. Lim did not stop
there. He believed he should form a company to make known to people about this
miraculous herb and the benefits that can be derived from it. In 1993, Dr.
Lim’s dream came true when he established DXN.
DXN
started from scratch and was initially not well known as a Network Marketing
Company. However today DXN is one of the most well known and fastest growing
Network Marketing organisations in the world by virtue of the one dragon, one
world, one market concept.
Today
DXN can boast of its world class Lingzhi Farm and GMP standards Pharmaceutical
Factory. With operations in over 86 countries, and with over three million
registered distributors world wide, DXN is solidifying its position as the
world leader in Lingzhi products.
Products
manufactured in India at Pondicherry
Reishi
Gano (RG)
Reishi
Gano (RG) is a kind of mushroom essence (Ganoderma lucidum) containing
polysaccharide, adenosine, triterpenoids, protein and fibre. The Ganoderma
lucidum used are harvested from a 91-day old red mushroom. Daily intake of
Reishi Gano (RG) assists in the maintenance of general well-being.
Ganocelium
(GL)
Gancelium
(GL) contains Ganoderma lucidum. It is different from Reishi Gano (RG) that the
Ganoderma lucidum used are harvested from a 18-day old Mycelium of Ganoderma
lucidum. The mycelium are rich in polysaccharides, adenosine, organic
germanium, triterpenes, vitamins, minerals and essential fatty acids. It has
excellent effect in improving the general well being.
Subscribers:
1.
J.
Abdul Rahonat Puvarasan (Business) S/o Jayaraman
Address: No. 3-A, 2nd Floor,
Prabhakar Apartments 36, Melony Road, Chennai – 600 017, Tamilnadu, India.
- Lee Crock Lye (Business) S/o
Lee Boon Seng
Address: 1-A, 1st Floor, Prabhakar
Apartments 36, Melony Road, Chennai – 600 017,
Tamilnadu, India.
- Daehsan Trading (India)
Private Limited
Address: 1st floor, B Block,
114, Thiagaraya Road, T. Nagar, Chennai – 600 017, Tamilnadu, India.
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. 44.93 |
|
UK
Pound |
1 |
Rs. 85.71 |
|
Euro |
1 |
Rs. 57.34 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
54 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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