MIRA
INFORM REPORT
|
Report Date : |
03.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
RAMA
OVERSEAS |
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Registered Office : |
B –
25/1, Okhla Industrial Area, Phase – 2, New Delhi – 110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2007
[Projected] |
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Date of Incorporation : |
24.10.2005 |
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IEC No.: |
0505071738
[22.12.2005] |
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PAN No.: [Permanent
Account No.] |
AAIFR6119B
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Legal Form : |
Partnership
concern with an unlimited liability of the partners. |
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Line of Business : |
Manufacturers
and Exporters of Garments and Home Furnishing Fabrics |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
New
Concern |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a new concern. Trade relations are fair. Payments are usually correct and
as per commitments. The
concern can be considered normal for business dealings at usual trade terms
and conditions with slight caution. |
LOCATIONS
|
Registered Office : |
B –
25/1, Okhla Industrial Area, Phase – 2, New Delhi – 110020, India |
|
Tel. No.: |
91-11-26383106
/ 26383105 |
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Mobile No.: |
91-9871094326
/ 9811839651 |
|
Fax No.: |
91-11-41616104 |
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E-Mail : |
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Area : |
2500
sq. ft. approx |
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Location : |
Industrial
– Rented |
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Factory
1 : |
Tuglakabad, New Delhi |
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Area : |
3200
sq. ft. |
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Location : |
Industrial
– Rented |
PARTNERS
|
Name : |
Mr.
Ratneshwar Jha |
|
Designation : |
Partner
|
|
Address : |
Plot
No. 571, Shalimar Garden Extention Part – I, Sahibabad, Ghaziabad |
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Date of Birth/Age : |
33
Years |
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Qualification : |
Graduate
|
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Experience : |
12
Years |
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|
Name : |
Mrs.
Mamta Jha |
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Designation : |
Partner
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|
Address : |
Plot
No. 571, Shalimar Garden Extention Part – I, Sahibabad, Ghaziabad |
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Date of Birth/Age : |
31
Years |
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Qualification : |
Graduate
|
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Experience : |
11
Years |
KEY EXECUTIVES
|
Name
: |
Mr.
Chakravarty |
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Designation
: |
Chief
Executive Officer - Finance |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Exporters of Garments and Home Furnishing Fabrics |
|
|
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|
Products : |
Men’s
Wear Shirts
Trousers T-Shirts
Shorts
[Woven & Kints] Ladies
Wear Tops Skirts
Blouses
Dresses
Trousers
[Woven & Kints] Ladies
High Fashion Garments Sequins
Beeded Machine
Embroidery Computerised Kids
Wear Shirts
Skirts
Tops Trouser Set of Skirts Tops [Woven & Kints] Leather
Jackets
Trousers
Fabrics
Handloom
Raw
Silk Tussar
Silk Banarsi
Silk Chiffon
Crape Satin Organza |
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Exports to : |
Garments,
home Furnishing products to Australia, France, Germany, Italy, Portugal, USA,
Middle East, Canada and other European Countries |
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Import from : |
China |
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Terms : |
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Selling : |
On
irrevocable letter of credit of sight |
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Purchasing : |
On CAD
and Credit : 30 to 45 days |
PRODUCTION
STATUS
|
Particulars |
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Unit |
Actual Production |
|
Garment |
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Pieces |
25000 per month |
GENERAL
INFORMATION
|
Customers : |
v
John
Burst, Australia v
Calao,
France v
Victor,
Portugal v
GAP,
USA |
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No. of Employees : |
25 |
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Bankers : |
Punjab
and Sind Bank, Kailash Colony, New Delhi |
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Banking Relations : |
-- |
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Associates/Subsidiaries : |
v
Rama
Creations v
Rama
Elastic and Tape v
Mamta
Textile |
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
2.500 Millions |
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Borrowed : |
-- |
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Total : |
Rs.
2.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
Particulars |
|
31.03.2007 [Projected] |
31.03.2006 |
|
Networth |
|
2.500 |
2.500 |
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Sales Turnover |
|
17.500 |
6.000 |
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Profit/(Loss)
Before Tax |
|
0.263 |
0.075 |
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Profit/(Loss)
After Tax |
|
0.200 |
0.065 |
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Export Value |
|
16.600 |
5.100 |
The
subject was established in October, 2005 and the turnover for the financial
year ending March 31, 2006 pertains to 5months only. The subject claims that
the projected turnover shall be around Rs. 17.500 millions for the financial
year ending March 31, 2007
The
subject is a Non-Incorporated business entity and thus not obliged to file any
information on itself with any Official Authority (Registrar of Company) open
for public inspection. The above-mentioned information is obtained directly
from the subject itself but the subject could not substantiate it by providing
audited financial statements like Balance Sheet and Profit and Loss A/c.
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2007 [Projected] |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
1.14 |
1.08 |
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Net
Profit Margin (PBT/Sales) |
(%) |
|
1.50 |
1.25 |
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Return on
Investment (ROI) (PBT/Networth) |
|
|
8.00 |
2.60 |
LOCAL AGENCY
FURTHER INFORMATION
Subject
does not imports and purchase fabrics and other raw materials from the domestic
market.
Business dealings are permissible. The subject is
doing the business since 2002 under the name of “Rama Creations”.
Mr. Ratneshwar Jha, Managing Partner is looking
after exports activities and Mrs. Mamta Jha is looking after production
activities. The subject is exporting their products on the selling terms of LC
at sight for new customers and LC 60 days for existing customers.
The
textile industry occupies a unique place in their country. One of the earliest
to come into existence in India, it accounts for 14% of the total Industrial
production, contributes to nearly 30% of the total exports and is the second
largest employment generator after agriculture. Although the development of
textile sector was earlier taking place in terms of general policies, in
recognition of the importance of this sector, for the first time a separate
Policy Statement was made in 1985 in regard to development of textile sector.
The textile policy of 2000 aims at achieving the target of textile and apparel
exports of US $ 50 billion by 2010 of which the share of garments will be US $
25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK,
Germany, France, Italy, Russia, Canada, Bangladesh and Japan.
The main objective of the textile policy 2000 is to provide cloth of acceptable
quality at reasonable prices for the vast majority of the population of the
country, to increasingly contribute to the provision of sustainable employment
and the economic growth of the nation; and to compete with confidence for an
increasing share of the global market.
Developing
countries with both textile and clothing capacity may be able to prosper in the
new competitive environment after the textile quota regime of quantitative
import restrictions under the multi-fibre arrangement (MFA) came to an end on 1st
January, 2005 under the World Trade Organisation (WTO) Agreement on Textiles
and Clothing.
As a result, the textile industry in developed countries will face intensified
competition in both their export and domestic markets. However, the migration
of textile capacity will be influenced by objective competitive factors and
will be hampered by the presence of distorting domestic measures and weak
domestic infrastructure in several developing and least developed countries.
The
elimination of quota restriction will open the way for the most competitive
developing countries to develop stronger clusters of textile expertise,
enabling them to handle all stages of the production chain from growing natural
fibres to producing finished clothing.
The
textile industry is undergoing a major reorientation towards non-clothing
applications of textiles, known as technical textiles, which are growing
roughly at twice rate of textiles for clothing applications and now account for
more than half of total textile production. The processes involved in producing
technical textiles require expensive equipments and skilled workers and are,
for the moment, concentrated in developed countries. Technical textiles have
many applications including bed sheets; filtration and abrasive materials;
furniture and healthcare upholstery; thermal protection and blood-absorbing
materials; seatbelts; adhesive tape, and multiple other specialized products
and applications. India must take adequate measures for capturing its market by
promoting research and development in this sector.
The mood in the Indian textile industry given the phase-out of the quota regime
of the multi-fibre arrangement (MFA) is upbeat with new investment flowing in
and increased orders for the industry as a result of which capacities are fully
booked up to April 2005. As a result of various initiatives taken by the
government, there has been new investment of Rs. 500000 millions in the textile
industry in the last five years. Nine textile majors invested Rs. 26000
millions and plan to invest another Rs. 64000 millions. Further, India's cotton
production increased by 57% over the last five years; and 3 million additional
spindles and 30,000 shuttle-less looms were installed. The industry expects
investment of Rs.1400000 millions in this sector in the post-MFA phase. A
Vision 2010 for textiles formulated by the government after intensive
interaction with the industry and Export Promotion Councils to capitalise on
the upbeat mood aims to increase India's share in world's textile trade from
the current 4% to 8% by 2010 and to achieve export value of US $ 50 billion by
2010 Vision 2010 for textiles envisages growth in Indian textile economy from
the current US $ 37 billion to $ 85 billion by 2010; creation of 12 million new
jobs in the textile sector; and modernisation and consolidation for creating a
globally competitive textile industry.
There
will be opportunities as well as challenges for the Indian textile industry in
the post-MFA era. But India has natural advantages which can be capitalised on
strong raw material base - cotton, man-made fibres, jute, silk; large
production capacity (spinning - 21% of world capacity and weaving - 33% of
world capacity but of low technology); vast pool of skilled manpower;
entrepreneurship; flexibility in production process; and long experience with
US/EU (European Union). At the same time, there are constraints relating to
fragmented industry, constraints of processing, quality of cotton, concerns
over power cost, labour reforms and other infrastructural constraints and
bottlenecks. E.g., cost of power was Rs. 8 per garment in India whereas in
China it was only Rs. 2 per garment.
Further, for the benefit of exporters, there should be a state-owned cargo
shipping mechanism. Several initiatives have already been taken by the government
to overcome some of these concerns including rationalisation of fiscal duties;
technology upgradation through the Technology Upgradation Fund Scheme (TUFS);
setting up of Apparel Parks; and liberalisation of restrictive regulatory
practices.
India is
presently exporting six billion U.S. Dollars worth of garments, whereas with
the WTO regime in place, they can increase the production and export of
garments to 18 to 20 billion U.S. Dollars within the next five years. This will
enable generation of employment in general and in rural areas in particular. By
tripling the export of apparels, they can add more than 5 million direct jobs
and 7 million indirect jobs in the allied sector, primarily in the cultivation
of cotton. Concerted efforts are needed in cotton research, technology
generation, transfer of technology, modernisation and upgrading of ginning and
pressing factories and an aggressive marketing strategy.
Rama's
Group is a renowned manufacturer and exporter of Garments & Fabrics. Rama's
Group has carved a niche for itself in such a short span of time frame. The
group consists of four companies, Rama Creations, Rama Elastic and Tape, Mamta
Textile & Rama Overseas. The company avidly follows consumer trends
throughtout the world adopting and innovating designs and concept computer
aided designing.
They
also offer a wide range of fabrics including:
Export quality handloom, Raw silk, Tussar Silk, Banarsi Silk, Chiffon, Crape,
Satin, Organza etc
Infrastructure
They adhere to the best sought-out production process all monitored under
strict vigilence of their managers. All their products are in accordance to the
global quality standards. They generate a large number of pattern, color
combination and texture for customer to choose from the audacity of its
pearless designs the softness of fabrics.
Sampling Unit: 10 Machines Single Needle Juki, 2 Five Thread Overlocking
Machine, 2 Steam Press with Vaccum Tables, 3 Finishing Tables
Production Unit: 260 Machines Single needle, 8 Five thread Overlock Machine, 6
Steam Press with vaccum table, 4 Cutting Table, Finishing Table, 7 Twelve head
computerised embroidery machines, 3 six head computerised embroidery machines.
Their Weavers are most experienced and anything from their deft hands is a
masterpiece. Their team of workers include their prestigious weavers, their
workman on the looms, their artisans do every bit to produce the best quality
products.
Their
customers benefit from their quality products, efficient services, competitive
price & timely deliveries.The company is committed to provide its customers
quality products and services that exceed their expectation. It is also
commited to the society to operate business facilities with a strong concern
for protection of the environment and to consider the well being of the
community in the business decisions.
Export
Markets
The exclusive business at their well established company has enabled us to make
forays in the highly competitive market across the Globe. Their rich
experience, Skilled personnel, State of art and manufacturing and finishing
machinery and designing equipment have enabled Rama's Group to make forays in
the highly competitive international Market. They export to places like
Australia (John Burst), France (Calao), Portugal (Victor), U.S.A (GAP), Europe,
Middle East & Canada.
|
Company Profile |
|
|
Business Type |
Exporter ,
Manufacturer |
|
Export Percentage |
80% |
|
Import Percentage
|
20% |
|
Sales Volume |
50 millions |
|
Import Value |
40 millions |
|
No of Staff |
20 |
|
Year of
Establishment |
2002 |
|
No of Production
Lines |
4 |
|
OEM Service
Provided |
No |
|
Production Type |
Semi - Automatic |
|
No of Engineers |
3 |
|
Monthly
Production Capacity |
As per
Requirement |
|
Product Range |
Woven &
unwoven textile, Net Fabrics, Handloom, Raw Silk, Tussar Silk, Chiffon,
Crape, Organza, Crape,Banarasi Silk, Satin,Georgette |
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 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.44.45 |
|
UK
Pound |
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.57.12 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--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 |
|