MIRA
INFORM REPORT
|
Report Date : |
11.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
SHAHLON
INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
303, 3rd
Floor, Dawar Chambers, Near Sub Jail, Ring Road, Surat, Gujarat - 395002 |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
18.01.1993 |
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Com. Reg. No.: |
04-18826 |
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CIN No.: [Company
Identification No.] |
U25200GJ1993PTC018826 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTS01835B |
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PAN No.: [Permanent
Account No.] |
AAFCS0163E |
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Legal Form : |
Private
Limited Liability Company. |
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Line of Business : |
Manufacturers
of Zero Twist Sized Yarn and Grey Cloth |
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
275000 |
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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 correct and as
per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
303, 3rd
Floor, Dawar Chambers, Near Sub Jail, Ring Road, Surat, Gujarat – 395002 |
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Tel. No.: |
91-261-3012020-29 |
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Mobile No.: |
91-9825114362 |
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Fax No.: |
91-261-2635550 |
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E-Mail : |
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Website : |
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Factory
1 : |
Block
No. 298, Plot No 1, Limodm Paria, Village Karanj, Mandve, Gujarat |
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Tel.
No.: |
91-2621-234370
/ 72 |
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Fax
No.: |
91-2621-234371 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr.
Raichand Nitin Shah |
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Designation : |
Whole
Time Director |
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Address : |
9,
Deep mangal Society, Near Narmad Library, Surat – 395001, Gujarat, India |
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Date of Birth/Age : |
13.01.1961 |
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Date of Appointment : |
18.01.1993 |
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Name : |
Mr. R.
Mahendra Shah |
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Designation : |
Director
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Address : |
403,
Soneri Apartment, Near Chinmay Hospital, Surat – 395001, Gujarat, India |
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Date of Birth/Age : |
06.08.1957 |
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Date of Appointment : |
18.01.1993 |
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Name : |
Mr.
Jayantilal Uipan Shah |
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Designation : |
Director |
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Address : |
302,
Gunjan Flats, Near Narmad Library, Surat – 395001, Gujarat, India |
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Date of Birth/Age : |
22.09.1975 |
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Date of Appointment : |
04.10.2000 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Dhiraj
Raichand Shah |
|
1500 |
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Suresh
Somchand Shah |
|
1000 |
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Jayantilal
Raichand Shah |
|
1500 |
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Raichand
Kanji Shah |
|
1500 |
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Mahendra
Raichand Shah |
|
1500 |
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Arvind
Raichand Shah |
|
1500 |
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Nitin
Raichand Shah |
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1500 |
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Raichand Kanji Shah Jointly With Jiviben Raichand Shah |
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23000 |
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Mahendra Raichand Shah Jointly With Meena Mahendra Shah |
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59000 |
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Jayantilal Raichand Shah Jointly With Damyanti Jayantilal Shah |
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40000 |
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Dhiraj Raichand Shah Jointly With Kanchan Dhiraj Shah |
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57000 |
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Arvind Raichand Shah Jointly With Avani Arvind Shah |
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35000 |
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Nitin Raichand Shah Jointly With Manaxi Nitin Shah |
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57000 |
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Biren Jayantilal Shah Jointly With Smita Biren Shah |
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37000 |
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Dipen Jayantilal Shah Jointly With Sonal Dipen Shah |
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37000 |
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Raichand Kanji Shah – HUF |
|
31000 |
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Jayantilal Raichand Shah – HUF |
|
35000 |
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Pravin Raichand Shah – HUF |
|
35000 |
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Dhiraj Raichand Shah – HUF |
|
20000 |
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Mahendra Raichand Shah – HUF |
|
35000 |
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Arvind Raichand Shah – HUF |
|
20000 |
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Nitin Raichand Shah – HUF |
|
20000 |
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Biren Jayantilal Shah – HUF |
|
26000 |
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Dipen Jayantilal Shah – HUF |
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11000 |
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Jiviben Raichand Shah Jointly With Raichand Kanji Shah |
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28000 |
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Damyanti Jayantilal Shah Jointly With Jayantilal Raichand Shah |
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18000 |
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Kanchan Dhiraj Shah Jointly With Dhiraj Raichand Shah |
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18000 |
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Meena Mahendra Shah Jointly With Mahendra Raichand Shah |
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18000 |
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Avani Arvind Shah Jointly With Arvind Raichand Shah |
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18000 |
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Manaxi Nitin Shah Jointly With Nitin Raichand Shah |
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18000 |
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Smita Biren Shah Jointly With Biren Jayantilal Shah |
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18000 |
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Sonal Dipen Shah Jointly With Dipen Jayantilal Shah |
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13000 |
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Pravin Raichand Shah |
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58000 |
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Jigna Dhiraj Shah Jointly With Dhiraj Raichand Shah |
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5000 |
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Rakhee Mahendra Shah Jointly With Mahendra Raichand Shah |
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2000 |
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Haresh Mahendra Shah Jointly With Mahendra Raichand Shah |
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10000 |
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Hiral Arvind Shah Jointly With Arvind Raichand Shah |
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2000 |
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Dhruv Arvind Shah Jointly With Arvind Raichand Shah |
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9500 |
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Sonal Dipen Shah Jointly With Nitin Raichand Shah |
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1500 |
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Tanvi Nitin Shah Jointly With Nitin Raichand Shah |
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2000 |
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Ravi Mahendra Shah Jointly With Mahendra Raichand Shah |
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8000 |
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Total |
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835000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Zero Twist Sized Yarn and Grey Cloth |
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Products : |
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Brand Name : |
Shahlon |
PRODUCTION
STATUS
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Particulars |
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Installed Capacity |
Actual Production [Rs. In Millions] |
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Yarn |
|
MTPA 1548 |
27.733 |
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Fabrics [In Millions] |
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Meters 9.623 |
7.822 |
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Machine [In Millions] |
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-- |
2.200 |
GENERAL
INFORMATION
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No. of Employees : |
200 |
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Bankers : |
v
Surat
Peoples Co-Operative Bank Limited v
Bank
of Baroda v
ICICI
Bank Limited |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
P. A.
Topiwala and Associates Chartered
Accountants 303,
Royal Plaza, Anand Mahal Road, Bh. Sneh Sankul Wadi, Adajan, Surat - 395009 |
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Parent Company : |
Fairdeal
Filaments Limited Year
Establishment : 1993 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
835000 |
Equity
Shares |
Rs. 10/- each |
Rs. 8.350 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
8.350 |
8.350 |
5.900 |
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2] Share Application Money |
3.000 |
3.000 |
0.000 |
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3] Reserves & Surplus |
57.570 |
45.497 |
16.232 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
68.920 |
56.847 |
22.132 |
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LOAN FUNDS |
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1] Secured Loans |
89.076 |
90.601 |
35.767 |
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2] Unsecured Loans |
2.811 |
11.500 |
20.505 |
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TOTAL BORROWING |
91.887 |
102.101 |
56.272 |
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DEFERRED TAX LIABILITIES |
7.319 |
0.402 |
0.000 |
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TOTAL |
168.126 |
159.350 |
78.404 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
94.570 |
90.879 |
43.564 |
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Capital work-in-progress |
2.809 |
4.583 |
0.000 |
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INVESTMENT |
1.415 |
1.365 |
0.315 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
33.899
|
15.389 |
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Sundry Debtors |
31.139
|
37.075 |
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Cash & Bank Balances |
3.288
|
2.758 |
52.435 |
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Loans & Advances |
29.239
|
21.093 |
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Total Current Assets |
97.565
|
76.315 |
52.435 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
25.416
|
12.735 |
17.960 |
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Provisions |
2.852
|
1.099 |
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Total Current Liabilities |
28.268
|
13.834 |
17.960 |
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Net Current Assets |
69.297
|
62.481 |
34.475 |
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MISCELLANEOUS EXPENSES |
0.035 |
0.042 |
0.050 |
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TOTAL |
168.126 |
159.350 |
78.404 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
277.273 |
334.204 |
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Profit/(Loss)
Before Tax |
|
20.744 |
14.293 |
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Provision
for Taxation |
|
8.670 |
0.953 |
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Profit/(Loss)
After Tax |
|
12.074 |
13.340 |
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Export
Value |
|
2.853 |
Nil |
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Import
Value |
|
1.814 |
10.722 |
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Total
Expenditure |
|
256.529 |
319.912 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
4.35
|
4.00 |
-- |
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Net
Profit Margin (PBT/Sales) |
(%) |
7.48
|
4.28 |
-- |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
10.80
|
8.55 |
-- |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.25 |
-- |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
1.74
|
2.04 |
3.35 |
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Current
Ratio (Current
Asset/Current Liability) |
|
3.45
|
5.52 |
2.92 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
v
Land
v
Lease
Hold Land
v
Building
v
Plant
and Machinery
v
Office
Equipments
v
Computer
v
Vehicles
v
Furniture
and Fixture
v
Beam
Pipe
Operational
Performance
The
Company has achieved a turnover of Rs. 277.273 Millions during the year under
review as compared to Rs. 334.204 millions for the previous year. The company
has achieved operating profit of Rs. 47.726 millions as compared to Rs. 40.493
millions fro the previous year. Cash profit of the company has increased to Rs.
38.746 millions from Rs. 30.860 millions.
They are rupees 1200 millions (usd 25
million) based in surat, the synthetic textile hub of India. The group is
engaged in various synthetic textile manufacturing and marketing activities
like texturising, sizing, twisting, waterjet weaving and manufacturing of
embroidery yarns etc. They are having strength of more than 700 dedicated
employees, committed to the growth of the organization.
Fairdeal group consists of four companies as follows:
1. Fairdeal Filaments Limited
2. Shahlon Industries Private Limited
3. Shah Silk Corporation.
4. Sanimo Polymers Private Limited
Apart from the manufacturing activities, the group is also engaged in the
marketing of POY(Partially Oriented Yarns), PFY(Polyester Filament Yarn)&
PTY(Polyester Texturised Yarn) manufactured by reliance industries Limited
India S largest Private Sector company. They market around 25,000 metric tones
of reliance annually.
Company Profile
|
Corporate Status: |
Others |
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Business Type: |
Manufacturer |
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OEM Service: |
No |
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Buyer or Supplier: |
both buyer and supplier |
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Current Customers: |
POTTER |
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No. of Employees: |
501 - 1000 People |
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No. of R&D Staff: |
5 - 10 People |
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Annual Export Amount (USD): |
Below US$ 0.100 Millions |
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Annual Import Amount (USD): |
Below US$ 0.100 Millions |
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Annual Sales Range (USD): |
US$10 Million - US$50 Million |
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Quality Control: |
In House |
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Registered Capital (USD): |
US$1 Million - US$2.5 Million |
|
Legal Representative/CEO: |
Mr. Dhiraj Shah |
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Parent Company: |
Fairdeal Filaments Limited |
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Year Established: |
1993 |
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 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
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|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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 |
|