MIRA INFORM REPORT
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Report Date : |
24.11.2006 |
IDENTIFICATION DETAILS
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Name : |
INDOWORTH INDIA LIMTIED |
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Registered Office : |
B-130,
MIDC Industrial Area, Butibori, District Nagpur - 441 108, Maharashtra, India |
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Country : |
India
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
30.01.1997 |
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Com. Reg. No.: |
11-105543 |
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CIN No.: [Company Identification No.] |
U01122MH2004PLC105543 |
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TAN No.: [Tax Deduction & Collection Account No.] |
NGPI00328G |
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Legal Form : |
A closely held public limited liability
company |
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Line of Business : |
Manufacturer and seller of worsted yarn |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Subject
company was formed on account of demerger of
Nagpur Unit of Uniworth Limited Subject
company is passing through difficult times. Its profitability is under sever
pressure. It has huge accumulated losses. Payments are reported as slow and
delayed. The
company can be considered for any business dealings on fully safe and secured
trade terms and condition. |
LOCATIONS
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Registered Office/
Factory : |
B-130,
MIDC Industrial Area, Butibori, District Nagpur - 441 108, Maharashtra, India |
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Tel. No.: |
91-7104-265321
to 25/265474/75 |
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Fax No.: |
91-7104-265309 |
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E-Mail : |
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Area : |
Owned |
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Branches : |
2-4,
Jambul Wadi, First Floor, Kalbadevi Road, Mumbai - 400 002 |
DIRECTORS
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Name : |
Mr.
Santosh Kumar B. Jain |
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Designation : |
Executive
Director |
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Address : |
363
AA, Scheme No. 74-C, Vijay Nagar, Indore - 492 008, Madhya Pradesh |
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Date of Birth/Age : |
08.07.1939 |
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Date of Appointment : |
08.12.1999 |
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Name : |
Mr.
B. K. Dalmia |
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Designation : |
Director
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Name : |
Mr. Wayne F. Small
(American) |
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Designation : |
Wholetime
Director |
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Address : |
Flat
No. 4D, 2A, Nazar Ali Lane, Kolkata - 700 019, West Bengal |
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Date of Birth/Age : |
27.06.2000 |
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Date of Appointment : |
22.08.1949 |
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Resign on : |
10.09.2002 |
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Name : |
Mrs. Smruti Pushpa |
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Designation : |
Director |
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Address : |
20,
Indraprastha Colony, Pandey Layout, Khamla Nagpur - 440 025, Maharashtra |
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Name : |
Mr. Shiv Narayan M.
Maheshwari |
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Designation : |
Wholetime
Director |
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Address : |
20,
Indraprastha Colony, Smruti Pushpa, Pandey Layout, Khamla, Nagpur – 440 025,
Maharashtra |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. Vishwanath B. Kanodia |
1000 |
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Mr. Manoj V. Kanodia |
1000 |
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Mr. Vikas V. Kanodia |
1000 |
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Dr. Jaikumar Singh |
10 |
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Mr. Raj Kumar Patodia |
10 |
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Mr. Rajendra Prasad Chaube |
10 |
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Mr. Harishchandra D. Sharma |
10 |
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Mr. Sanjay R. Nawal |
10 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and seller of worsted yarn |
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Products : |
Ř
Wool Worsted Yarn Ř
Polywool Yarn Ř
Siro Yarn |
GENERAL INFORMATION
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No. of Employees : |
750
persons -- 700 persons in factory and 50 persons in office |
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Bankers : |
Centurion
Bank Limited, 345, Shrimohini Complex, Kingsway, Nagpur, Maharashtra |
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Facilities : |
Cash
Credit limit: 120.000 millions dated 27.12.2001 against hypothecation of
goods, assets and book debts |
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Banking Relations : |
Unknown
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Auditors : |
Singhi & Company Chartered Accountants 1B,
Old Post Office Street, Kolkata - 700 001, West Bengal |
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Tel. No.: |
91-33-22484577
/ 7530 |
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Associates/Subsidiaries
: |
A Uniworth Group Company |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60000000 |
Equity
Shares |
Rs.10 each |
Rs. 600.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3050 |
Equity
Shares |
Rs.10 each |
Rs. 0.031 million |
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 |
245.500 |
245.500 |
245.500 |
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2] Reserves & Surplus |
0.000 |
0.000 |
(48.800) |
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3]
Advanced Against Share Capital |
0.000 |
0.00 |
0.00 |
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4)
(Accumulated loss) |
(350.300) |
(211.900) |
0.00 |
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NETWORTH
|
104.800 |
33.600 |
196.700 |
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LOAN FUNDS |
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1] Secured Loans |
980.000 |
1053.500 |
1035.500 |
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2] Unsecured Loans |
594.800 |
594.800 |
594.800 |
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TOTAL
BORROWING
|
1574.800 |
1648.300 |
1630.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
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1470.000 |
1681.900 |
1827.000 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
1386.900 |
1474.200 |
1649.000 |
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Capital work-in-progress
|
0.000 |
0.00 |
0.000 |
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INVESTMENT
|
66.600 |
53.200 |
53.200 |
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DEFERREX TAX ASSETS
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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531.100
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557.900
|
551.000 |
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Sundry Debtors
|
1125.800
|
1311.400
|
1121.200 |
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Cash & Bank Balances
|
38.700
|
157.500
|
83.600 |
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Loans & Advances
|
216.600
|
89.500
|
98.300 |
Total Current Assets
|
1912.200
|
2116.300
|
1854.100 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
1895.700
|
1962.400
|
1730.500 |
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Provisions
|
0.000
|
0.000
|
0.000 |
Total Current Liabilities
|
1895.700
|
1962.400
|
1730.500 |
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Net Current
Assets
|
16.500
|
153.900
|
123.600 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.600 |
1.200 |
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TOTAL
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1470.000 |
1681.900 |
1827.000 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
2177.000 |
2122.400 |
2341.200 |
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Profit/(Loss) Before Tax
|
(138.400) |
(163.100) |
8.800 |
Provision for Taxation
|
0.000 |
0.000 |
0.000 |
Profit/(Loss) After Tax
|
(138.400) |
(163.100) |
8.800 |
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Total Expenditure
|
2175.800 |
2135.300 |
2169.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt-Equity Ratio |
0.00
|
14.24 |
8.29 |
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Long Term Debt-Equity Ratio |
0.00
|
14.24 |
8.29 |
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Current Ratio |
1.04
|
1.08 |
1.07 |
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TURNOVER RATIOS |
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Fixed Assets |
1.15
|
1.14 |
1.08 |
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Inventory |
3.99
|
3.93 |
3.81 |
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Debtors |
1.78
|
1.79 |
1.87 |
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Interest Cover Ratio |
(1.16)
|
(2.56) |
1.15 |
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Operating Profit Margin(%) |
1.11
|
(0.59) |
8.17 |
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Profit Before Interest And Tax
Margin(%) |
(3.41)
|
(5.38) |
3.15 |
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Cash Profit Margin(%) |
(1.85)
|
(2.69) |
5.44 |
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Adjusted Net Profit Margin(%) |
(6.37)
|
(7.48) |
0.42 |
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Return On Capital Employed(%) |
(4.71)
|
(6.69) |
3.62 |
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Return On Net Worth(%) |
388.76
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(141.64) |
4.47 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
:
The wool business under the review witnessed extremely difficult period
andunprecedented crisis as demand slumped following rise in wool prices owingto
steep decline in production and severe drought in Australia. The
globalcapacities were far in excess of demand as a result of which wool/Polywoolproduction
has to be reduced. The severe competition resulted in reducedmargins. The
European market continued to witness depressed marketconditions and not showing
sign of recovery. The All wool and Poly woolyarn capacities were replaced with
lower value product like Acrylic & otherblended products which ultimately
effected the bottom line. The foreigncurrency exchange losses significantly
effected the operating results dueto substantial strengthening of AUD
currency.
Your Directors are of the opinion that there will be improved
operatingresults in coming year due to overall improvement in global economy
andgradual correction in wool prices.
During the year under review, ICICI Bank had assigned and
transferredentire credit facilities to Asset Reconstruction Company (India)
Limited(ARCIL) on 29th March 2003. However, the Company has filed a Writ
Petitionin Kolkata High Court for specific performance of the Agreement for
Sale ofthe Assets as a going concern for the agreed price of Rs.1410.000 millions as perbid submitted by the Company against
tender floated by ICICI Bank.
In view of the operating losses and carry forward of accumulated
losses,your Directors regret their inability to recommend payment of any
dividendfor the financial year ended 31st March, 2004.
FUTURE PROSPECTS :
In spite of tough global competition and increased raw material
prices,your company geared up to accept challenges and will have edge over
thecompetitors in global and domestic markets with respect to quality, rangeof
products and service. The ongoing continuous efforts to increase
theproductivity, improve the yield and cost reduction measures will
furtheryield competitive advantages to the company.
In view of the above, your Directors are of the opinion that outlook of
thefuture performance of the company appears to be very encouraging
andbright.
The
name of the company was changed to present with effect from 11th
February, 2000
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.44.65 |
|
UK
Pound |
1 |
Rs.87.23 |
|
Euro |
1 |
Rs.58.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
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PAID-UP
CAPITAL |
1~10 |
5 |
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OPERATING
SCALE |
1~10 |
3 |
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FINANCIAL
CONDITION |
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|
--BUSINESS
SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
2 |
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--LEVERAGE |
1~10 |
2 |
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--RESERVES |
1~10 |
-- |
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--CREDIT
LINES |
1~10 |
2 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT
POINTS |
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--BANK
CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT
POINTS |
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--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT
ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
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--OTHER
MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
25 |
This score serves as a reference to assess SC’s credit risk and to set
the amount of credit to be extended. It is calculated from a composite of
weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |
|
NR |
In
view of the lack of information, we have no basis upon which to recommend
credit dealings |
No Rating |
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PRIVATE
& CONFIDENTIAL : This information is provided to you at
your request, you having employed MIPL for such purpose. You will use the
information as aid only in determining the propriety of giving credit and
generally as an aid to your business and for no other purpose. You will hold
the information in strict confidence, and shall not reveal it or make it known
to the subject persons, firms or corporations or to any other. MIPL does not
warrant the correctness of the information as you hold it free of any liability
whatsoever. You will be liable to and indemnify MIPL for any loss, damage or
expense, occasioned by your breach or non observance of any one, or more of
these conditions