MIRA
INFORM REPORT
|
Report Date : |
11.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
J M
TEXTILES LIMITED |
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Registered Office : |
401,
Arcadia, Nariman Point, Mumbai – 400021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
2001 |
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Date of Incorporation : |
01.02.1979 |
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Com. Reg. No.: |
11-20978 |
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CIN No.: [Company
Identification No.] |
U17120MH1979PLC020978 |
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Legal Form : |
A
closely held public limited liability company. |
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Line of Business : |
Manufacturers
and Traders of Polyester Yarns, Poly Vinyl Alcohol, Cloths, Polyester
oriented / Filament yarns and Polyester Chips. |
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 : |
Moderate
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Payment Behaviour : |
Slow
by average 45 days |
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Litigation : |
Clear |
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Comments : |
Subject
is an old and established company having moderate track. Company’s
profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow by average 45 days. The
company can be considered for small business dealings at usual trade terms
and conditions with slight caution initially. |
LOCATIONS
|
Registered Office : |
401,
Arcadia, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel. No.: |
91-22-22834838 |
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Fax No.: |
91-22-22851086 |
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Corporate
Office : |
801,
Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel.
No.: |
91-22-22834838
/ 22835002 |
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Fax
No.: |
91-22-22851085 |
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E-Mail
: |
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Factory
1 : |
Plot
No. J – 13, MIDC Industrial Area, Tarapur, Thane |
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Tel.
No.: |
91-2525
-272616 |
DIRECTORS
|
Name : |
Mr.
Mohanlal R. Jatia |
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Designation : |
Director
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Address : |
81,
Jatia Sea Face, Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
01.05.1940 |
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Date of Appointment : |
21.02.1979 |
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Name : |
Mr.
Sanjay M. Jatia |
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Designation : |
Director
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Address : |
81,
Jatia Sea Face, Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
21.07.1967 |
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Date of Appointment : |
21.12.1987 |
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Name : |
Mr.
Sudhir M. Jatia |
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Designation : |
Director
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Address : |
81,
Jatia Sea Face, Worli, Mumbai – 400025, Maharashtra, India |
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Date of Birth/Age : |
21.03.1969 |
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Date of Appointment : |
28.04.1988 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Satyanarayan
R. Jatia |
|
3000 |
|
Ramgopal
investment and Trading Company Private Limited |
|
149600 |
|
Mohanlal
R. Jatia |
|
200 |
|
Sanjay
M. Jatia |
|
300 |
|
Sudhir
M. Jatia |
|
300 |
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Sharad
S. Jatia |
|
100 |
|
Sanjay
M. Jatia |
|
30400 |
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Siddharth
M. Jatia |
|
100 |
|
Ramgopal
Synthetics Limited |
|
46000 |
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Ramgopal
Textiles Limited |
|
120000 |
|
Nostalgia
Invest Private Limited |
|
150000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Traders of Polyester Yarns, Poly Vinyl Alcohol, Cloths, Polyester
oriented / Filament yarns and Polyester Chips. |
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GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory
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Auditors : |
Lodha
and Company Chartered
Accountants 6,
Karim Chambers, 40, Ambalal Doshi Marg, Mumbai - 400023 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000 |
Equity
Shares |
Rs. 100/- each |
Rs. 50.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000 |
Equity
Shares |
Rs. 100/- each |
Rs. 50.000 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
No
financials subsequent to 2001 could be available from any sources. .
Management
remained non-cooperative during current investigation.
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2001 |
31.03.2000 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
|
50.000 |
50.000 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
6.540 |
6.540 |
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|
56.54 |
56.54 |
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4] (Accumulated Losses) |
|
[32.453] |
[30.107] |
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NETWORTH |
|
24.087 |
26.433 |
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LOAN FUNDS |
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1] Secured Loans |
|
0.000 |
0.000 |
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2] Unsecured Loans |
|
12.878 |
3.019 |
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TOTAL BORROWING |
|
12.878 |
3.019 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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36.965 |
29.452 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
0.745 |
1.045 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
6.985 |
6.985 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
21.939 |
16.632 |
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Sundry Debtors |
|
26.339 |
40.491 |
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Cash & Bank Balances |
|
0.463 |
2.201 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
24.049 |
16.537 |
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Total Current Assets |
|
72.790 |
75.861 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
43.555 |
54.473 |
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Provisions |
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Total Current Liabilities |
|
43.555 |
54.473 |
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Net Current Assets |
|
29.235 |
21.388 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.034 |
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TOTAL |
|
36.965 |
29.452 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2001 |
31.03.2000 |
|
Sales Turnover [including other income] |
|
117.868 |
334.805 |
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Profit/(Loss)
Before Tax |
|
[2.346] |
2.896 |
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Provision
for Taxation |
|
|
0.002 |
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Profit/(Loss)
After Tax |
|
[2.346] |
2.894 |
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Import
Value |
|
99.102 |
260.228 |
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Total
Expenditure |
|
120.214 |
331.909 |
KEY
RATIOS
|
PARTICULARS |
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|
31.03.2001 |
31.03.2000 |
|
PAT / Total Income |
(%) |
|
[2.00] |
0.86 |
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Net
Profit Margin (PBT/Sales) |
(%) |
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[2.00] |
0.86 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
[3.19] |
3.77 |
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Return
on Investment (ROI) (PBT/Networth) |
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|
[0.10] |
0.11 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
|
2.34 |
2.18 |
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Current
Ratio (Current
Asset/Current Liability) |
|
|
1.67 |
1.39 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
asset
v
Leasehold
Land
v
Office
Equipments
v
Computer
Equipments
v
Factory
Building
v
Residential
Flat
During
the year under report, the turnover has decreased considerably from Rs. 341.332
Millions to Rs. 112.314 millions due to slackness in the Textile industry. The
company mainly concentrated in Trading activities. The company mainly imported
the POY / PFY, Nylon Yarn etc. and sold in the local market. Due to bad market
conditions, the margins were squeezed and hence the company had incurred the
losses. However, the management of the company is hopeful that the trend will
improve and hopeful of making profit in future year.
|
Name of the company |
J M TEXTILES LIMITED |
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Presented By |
-- |
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1) Date and description of instrument creating the change |
The borrower has by declaration created the hypothecation of stock and book debts in favor of the standard chartered bank on 24.01.2005. the certified copy of the agreement of hypothecation of stock and book debts is enclosed. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 60.000 millions |
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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 All the stock in trade both present and future consisting or raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever, being movable properties nor or at any time hereafter belonging to the borrower or at the borrower disposal and now or any time and from time to time hereafter stored or be stored or brought into0 or upon or in course of transit to the borrowers factory or premises or at any other place whatsoever and whosesoever in the borrowers possession or occupation or at any other premises or place. All the present and future book debts, outstanding moneys receivable claims and bills which are now due the owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any person, firm company or body corporate or by the government department or office or any Municipal or local or public or semi government body or authority or any body corporate or undertaking or project wharever in the public sector. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Security for letter of credit and overdraft facility granted to the company and charge operate as first and paramount charge in favour of the bank as security for all dues under the above facility. |
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5) Name and Address and description of the person entitled to the charge. |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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Name of the company |
J M TEXTILES LIMITED |
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Presented By |
-- |
|
1) Date and description of instrument creating the change |
The borrower has by declaration created the hypothecation of stock and book debts in favor of the standard chartered bank on 24.01.2005. the certified copy of the agreement of hypothecation of stock and book debts is enclosed. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 60.000 millions |
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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 All the stock in trade both present and future consisting or raw materials, finished goods, goods in process of manufacturing and other merchandise whatsoever, being movable properties nor or at any time hereafter belonging to the borrower or at the borrower disposal and now or any time and from time to time hereafter stored or be stored or brought into0 or upon or in course of transit to the borrowers factory or premises or at any other place whatsoever and whosesoever in the borrowers possession or occupation or at any other premises or place. All the present and future book debts, outstanding moneys receivable claims and bills which are now due the owing or which may at any time hereafter during the continuance of this security become due and owing to the borrower in the course of its business by any person, firm company or body corporate or by the government department or office or any Municipal or local or public or semi government body or authority or any body corporate or undertaking or project wharever in the public sector. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Security for letter of credit and overdraft facility granted to the company and charge operate as first and paramount charge in favour of the bank as security for all dues under the above facility. |
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5) Name and Address and description of the person entitled to the charge. |
Standard Chartered Bank 23-25, MG Road, Mumbai – 400001 |
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6) Date and brief description of instrument modifying the charge |
Supplementary hypothecation agreement of stock and book debts dated 25.01.2006 |
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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. |
The bank having at the request of the borrower agreed to extend / enhance the limit / amount of the within mentioned accommodation / credit facility granted by the bank to borrower by way of : Overdraft facility [Enhanced from Rs. 10.000 Millions to Rs. 20.000 Millions Letter of credit Rs. 50.000 Millions to Rs. 65.000 Millions From Rs. 65.000 Millions to Rs. 85.000 Millions in the aggregate the borrower hereby agrees, undertake and confirm to the bank that security of first hypothecation charge by the borrower in favour of the bank over the said hypothecated assets, shall from the date hereof constitute security to the bank nor only for the said credit facility but also for the enhanced credit facility of Rs. 25.000 millions. Save and except as enlarged and modified by these present, the terms, conditions and provisions of the said principal agreements of hypothecation as amended by the said supplemental agreeme4nt of hypothecation shall remain unchanged and the borrower hereby specifically confirm in all other respects the provisions thereof. |
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.45.34 |
|
UK
Pound |
1 |
Rs.85.82 |
|
Euro |
1 |
Rs.58.05 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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 |
|