MIRA
INFORM REPORT
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Report Date : |
28.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
RANA
POLYCOT LIMITED |
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Registered Office : |
SCO 49
– 50, Sector 8C, Chandigarh – 160009 |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
05.07.1993 |
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Com. Reg. No.: |
53-13489 |
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CIN No.: [Company
Identification No.] |
U17111CH1993PLC013489 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLR10065G
/ PTLR11764E |
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PAN No.: [Permanent
Account No.] |
AAACR7623M |
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Legal Form : |
Closely
Held Public Limited Liability Company |
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Line of Business : |
Manufacturing of Cotton Yarn. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow
by average 30 days |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having moderate track. Profit margin is under severe
pressure. Payments are slow by
average 30 days. The
company can be considered normal for business dealings at usual trade terms
and conditions with slight caution. |
LOCATIONS
|
Registered Office : |
SCO 49
– 50, Sector 8C, Chandigarh – 160009, India |
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Tel. No.: |
91-172-2540007/2549217/2541904/2779565/2773422/2549509/2780580/2541505 |
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Fax No.: |
91-172-2546809/2549510 |
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E-Mail : |
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Website : |
http://www.ranagroup.com |
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Factory
: |
Sugar
Plant Village Butter Seviyan, Tehsil Baba Bakala,
District Amritsar (Punjab), India Telefax : 91-1853-257604/257610/257611 Mobile : 91-9815900940 Contact Person : Mr. A. S.
Jaspal (Vice President) Email: info@ranagroup.com Village Alamgir, The Rajpura, District Patiala, Punjab, India |
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Branches
: |
Rana
Fabrics Limited Village Samalheri, Post Office Lalru,
District Patiala, Punjab |
DIRECTORS
|
Name : |
Mr.
Ranjit Singh Rana |
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Designation : |
Managing
Director |
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Address : |
H. No.
53, Sector 4, Chandigarh – 160001, Uttar Pradesh |
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Date of Birth/Age : |
23.08.1957 |
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Date of Appointment : |
05.07.1993 |
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Name : |
Mr.
Raj Bans Kaur |
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Designation : |
Director
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Address : |
H. No.
53, Sector 4, Chandigarh – 160001, Uttar Pradesh |
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Date of Birth/Age : |
03.10.1952 |
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Date of Appointment : |
05.07.1993 |
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Name : |
Mr.
Malkiat Singh |
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Designation : |
Director
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Address : |
H. No.
944, Phase IV, Sas Nagar, Ropar, Punjab |
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Date of Birth/Age : |
13.05.1947 |
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Date of Appointment : |
22.12.2000 |
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Name : |
Mr. D.
S. Dhaliwal |
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Designation : |
Director
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Address : |
H. No.
154, Sector 8A, Chandigarh – 160018, Uttar Pradesh |
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Date of Birth/Age : |
08.04.1951 |
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Date of Appointment : |
31.03.1997 |
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Name : |
Mr. S.
K. Singla |
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Designation : |
Director
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Address : |
H. No.
945, Sector 41A, Chandigarh – 160040, Uttar Pradesh, India |
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Date of Birth/Age : |
10.01.1962 |
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Date of Appointment : |
22.12.2000 |
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Name
: |
Mr. S.
K. Duggal |
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Designation
: |
Director
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Address
: |
H. No.
1013, Sector 43 B, Chandigarh, Uttar Pradesh |
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Date
of Birth/Age : |
06.05.1937 |
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Date
of Appointment : |
22.12.2000 |
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Name
: |
Mr. S.
A S Bajwa |
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Designation
: |
Director
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Address
: |
Naya
Gaon, Near Sector – 2, Chandigarh, Ropar, Punjab |
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Date
of Birth/Age : |
01.06.1934 |
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Date
of Appointment : |
22.01.1996 |
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Name
: |
Mr.
Naveen Atrishi |
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Designation
: |
Director
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Address
: |
H. No.
1308, Sector 15, Faridabad, Haryana |
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Date
of Birth/Age : |
31.05.1969 |
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Date
of Appointment : |
09.12.2002 |
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Name
: |
Mr. A.
S. Sodhi |
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Designation
: |
Director
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Address
: |
H. No.
2282, Sector 21 C, Chandigarh, Uttar Pradesh |
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Date
of Birth/Age : |
09.01.1930 |
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Date
of Appointment : |
09.12.2002 |
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Name
: |
Mr. P.
K. Sethi |
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Designation
: |
Director
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Address
: |
H. No.
1502A, Sector 38 B, Chandigarh – 160038, Uttar Pradesh |
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Date
of Birth/Age : |
06.09.1957 |
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Date
of Appointment : |
13.10.2003 |
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Name
: |
Mr.
Inderpratap Singh Rana |
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Designation
: |
Director
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Address
: |
H. No.
53, Sector 4, Chandigarh – 160001, Uttar Pradesh |
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Date
of Birth/Age : |
09.02.1980 |
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Date
of Appointment : |
26.12.2003 |
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Name
: |
Mr.
Gurvindu Singh |
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Designation
: |
Director
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Address
: |
IFCI
Limited, Plot No. 1-C, Sector 27A, Chandigarh |
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Date
of Appointment : |
16.12.2005 |
KEY EXECUTIVES
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Name
: |
Mr.
Manoj Gupta |
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Designation
: |
Secretary
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Address
: |
H. No.
5739 – B, Sector 38 B, Chandigarh – 160038, Uttar Pradesh |
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Date
of Birth/Age : |
17.02.1969 |
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Date
of Appointment : |
06.09.2002 |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
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No. of Shares |
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Mr.
Gurjeet Singh Rana |
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14369066 |
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Mr.
Ranjit Singh Rana |
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11535013 |
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Mr.
Daljit Singh Rana |
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1 |
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Mr.
Raj Bans Kaur |
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80001 |
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Mr.
Sukhjinder Kaur |
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1 |
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Mr.
Rattan Kaur |
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1 |
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Mr. S.
J. Randhana |
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140000 |
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Mr.
Rajbir Kaur Randhawa |
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5757 |
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Mr.
Jaswant Singh |
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50000 |
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Mr.
Harkewal Singh |
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50000 |
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Mr.
Ajit Singh |
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45000 |
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Mr.
Sukhjit Singh |
|
50000 |
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Mr.
Kuljit Singh |
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50000 |
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Chadha
Finlease Limited |
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320000 |
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Punjab
State Industrial Development Corporation Limited |
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11500000 |
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TOTAL |
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38194840 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Cotton Yarn. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Spinning : |
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Cotton Yarn |
Kgs. |
35280 |
35280 |
8085241.20 |
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Knitting : |
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Garments |
-- |
N.A. |
8 No. |
141631 in Pcs. |
GENERAL
INFORMATION
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Suppliers : |
Essel
Industries Dass
Associates Janta
Industrial Corporation Marriya
Energy System & Services Sainsons
Paper Industries Limited |
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No. of Employees : |
2000 |
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Bankers : |
Canara Bank Andhra Bank Industrial
Development Bank of India |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Kansal Singla & Associates Chartered Accountants, SCO 80 – 81, 4th Floor, Sector
17 – C, Chandigarh – 160017 |
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Tel. No.: |
91-172-5078401-02 |
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Fax No.: |
91-172-5072903 |
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E-Mail : |
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Associates : |
Rana
Sugars Limited Rana
Informatics Limited Rana
Leathers Limited Sri
Hargobindpur Sugars [Private] Limited R. G.
S. Traders Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 400.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
38195640 |
Equity
Shares |
Rs. 10/- each |
Rs. 381.956 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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381.956 |
381.956 |
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2] Share Application Money |
|
61.500 |
2.500 |
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3] Reserves & Surplus |
|
74.266 |
48.261 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
|
517.722 |
432.717 |
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LOAN FUNDS |
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1] Secured Loans |
|
650.616 |
663.130 |
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2] Unsecured Loans |
|
10.205 |
65.080 |
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TOTAL BORROWING |
|
660.821 |
728.210 |
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DEFERRED TAX LIABILITIES |
|
48.166 |
37.577 |
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TOTAL |
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1226.709 |
1198.504 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
823.542 |
859.746 |
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Capital work-in-progress |
|
7.854 |
4.265 |
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INVESTMENT |
|
0.000 |
0.500 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
239.682 |
221.026 |
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Sundry Debtors |
|
45.243 |
60.466 |
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Cash & Bank Balances |
|
62.622 |
29.639 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
126.983 |
124.993 |
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Total Current Assets |
|
474.530 |
436.124 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
Current Liabilities & Provisions |
|
81.595 |
105.565 |
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Total Current Liabilities |
|
81.595 |
105.565 |
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Net Current Assets |
|
392.935 |
330.559 |
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MISCELLANEOUS EXPENSES |
|
2.378 |
3.434 |
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TOTAL |
|
1226.709 |
1198.504 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
1066.532 |
1030.489 |
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|
Profit/(Loss)
Before Tax |
|
42.780 |
1.505 |
|
Provision
for Taxation |
|
0.967 |
0.116 |
|
Profit/(Loss)
After Tax |
|
41.813 |
1.389 |
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Export
Value |
|
744.777 |
673.897 |
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Import
Value |
|
19.418 |
28.144 |
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|
|
|
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Total
Expenditure |
|
1023.752 |
1028.984 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
3.92 |
0.13 |
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|
Net
Profit Margin (PBT/Sales) |
(%) |
|
4.01 |
0.14 |
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|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
3.29 |
0.11 |
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|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.08 |
0.00 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.43 |
1.92 |
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|
Current
Ratio (Current
Asset/Current Liability) |
|
|
5.81 |
4.13 |
LOCAL AGENCY
FURTHER INFORMATION
TEXTILE
INDUSTRY & FUTURE OUTLOOK :
The
textile industry in India accounts for nearly 14% of the total industrial
production, contributes to nearly 30% of the total exports and is the second
largest employment generator after agriculture. The government of India has granted various concessions in
interest rates by way of TUF Scheme and reduced interest rates on loans and by
declaring capital subsidies on various equipments to be imported for process
houses up to the year 2007. The
Multifibre Agreement [MFA] from 1st January, 2005 wherein the import
quotas on textile products have been abolished which has offered Indian Textile
industry open access to world markets.
The company is also reaping the benefits of reduction in interest rates
on loans and is expanding into the dyed yarn production and knitted garment
production by availing loans at very low rate under TUFS. This will significantly reduce the financial
burden on the company thereby adding to the overall profitability.
The
company has planned to expand the manufacturing capacity of its Knitting Unit
from existing 800 – 1000 garments per day to 4000 garments per day in order to
meet the growing demands of its clients in domestic as well as international
market. The expansion plan is proposed
to be financed by way of Term Loan [under TUF], Promoters Contribution and
Public Issue.
Looking
at all the positive factors for the current and the coming year the company is
hopeful of achieving better results in the coming year.
The company’s fixed assets of important value includes Land & Site Development, Building & Civil Work, Plant & Machinery, Electrical Installation, Furniture & Fixture, Miscellaneous Fixed Assets, Vehicles, Computers and Office Equipments.
Form 8 Particular for creation or modification of charges
|
Corporation
identity number or foreign company registrations number of the company |
U17111CH1993PLC013489 |
|
Name of the
company |
RANA POLYCOT LIMITED |
|
Address |
SCO 49
– 50, Sector 8C, Chandigarh – 160009, Uttar Pradesh |
|
This Form is for
|
Modification of
charge |
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Type of Charges |
Hypothecation |
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Particular of
the charge holder |
Standard
Chartered Bank Narain Manzil,
23, Barakhamba Road, New Delhi – 110001, India E-mail : appl.helpdesk@mca.gov.in |
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Amount Secure by
the charge |
Rs. 75.000
millions |
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Brief of the
principal terms and conditions and extent and operation of the charge |
Rate of Interest
: As may be determined by the bank from time to time. Minimum asset
cover to be 1.25X. |
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Description of
the property charge whether it is a charge on |
Plant and
machinery |
|
Modification
charge Charge
identification number of the charge to be modified |
80008150 |
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Brief
description of the instrument modifying |
Agreement of
hypothecation of stocks and book debts was executed |
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Date of
instrument modifying the charge |
20.07.2006 |
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Particulars of
the Property charged |
Hypothecation by
way of first pari passu charge over entire movable plant and machinery
consisting of all such properties both present and future stored at or
installed at company’s premises, godowns, factories or wherever else
including machinery spares, tools and accessories and other movables whether
installed or not or whether lying loose or incases or which are now lying or
stored in or open or shall hereafter from time to time during the continuance
of security [as per manual form enclosed] |
|
Particulars of
the present modification |
Term loan / LC
of Rs. 75 millions shall also be secured by hypothecation of current assets
of the company in favour of Standard Chartered Bank on 2nd charge
basis [other details as per manual form enclosed] |
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Name of the company |
RANA POLYCOT LIMITED |
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Presented By |
Rana Ranjit Singh, Managing Director |
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1) Date and description of instrument creating the change |
Dated 18.03.2004 Composite Agreement |
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2) Amount secured by the charge/amount owing on the securities of charge |
The working capital limits of Rs. 256.250 millions [as per detail given below] alongwith interest and other monies payable by company to Andhra in terms of the sanction Letter issued by Andhra Bank Working Capital Facilities:
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of current assets of the borrower namely, stocks of raw materials, stocks in process, semi finished and finished goods, stores and spares, bills receivable and book debts and other movables, both present and future stored or to be stored from time to time at the factories/ premises of the borrower situated at Village Alamgir, Tehsil Rajpura, District Patiala in the State of Punjab |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest as per guidelines in force. Extent and operation of charge 100%. Other terms and conditions as per Sanction Letter No. 95/ 1/1108 dated 09.03.2004 issued by Andhra Bank |
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5) Name and Address and description of the person entitled to the charge. |
Andhra Bank Sector 17 – C, Chandigarh – 160017 |
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6) Date and brief description of instrument modifying the charge |
-- |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
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WEBSITE
DETAILS
Rana Polycot, the Textile Venture of Rana
Group is a 100% Export Oriented Spinning Unit. The unit is in proximity to the cotton belt of North India. It is
situated at a distance of 200 kms north of New Delhi on the Delhi -
Chandigarh highway. The plant is based on 35,280 spindles and
commenced production in October 1996. In a short span of four
years they have established theirselves as a reputed manufacturer and
exporter of top quality yarns. Their yarns are exported to quality conscious buyers
In Korea, China, Hong Kong, Singapore, Indonesia, Thailand,
Mauritius, Egypt, Israel, Tunisia, Turkey and Europe. The plant has got the
latest generation and state-of-the art machinery from Rieter, Schlafhorst, Zelleweger-Uster, Savio &
Luwa, the names to reckon with in Textile Industry. Rana Polycot is presently
producing 100% combed cotton yarns. The company is totally dedicated to offer
best quality yarns to its discerning overseas buyers. Their yarns meet the top
5-10% uster standards.
Raw Material: Their yarns are based on rich
and uniform mixing based on bale management to produce consistently high
quality yarns. They use top grade cotton to manufacture their yarns.
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.85.69 |
|
Euro |
1 |
Rs.57.32 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
36 |
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 |
|