MIRA
INFORM REPORT
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Report Date : |
06.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ARADHNA FABRICS PRIVATE LIMITED |
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Registered Office : |
144, Industrial Area ‘A’, Ludhiana – 141
003, Punjab, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.11.1995 |
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Com. Reg. No.: |
16-17360 |
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CIN No.: [Company
Identification No.] |
U18101PB1995PTC017360 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDA00837E |
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Legal Form : |
Private Limited Liability Company
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Line of Business : |
Manufacturing, Importing and Exporting of Knitted Cloth, T-Shirts and
Garments. |
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 300000 |
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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
records. Directors are reported as experienced, respectable and having satisfactory
means of their own. Their trade relations are fair. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/Factory : |
144, Industrial Area ‘A’, Ludhiana – 141
003, Punjab, India |
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Tel. No.: |
91-161-2229087/2220290/2225250/2669487 |
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Fax No.: |
91-161-2609750 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Ashok Avasthi |
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Designation : |
Managing Director |
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Address : |
145/1, Nihal Chand Road, Ludhiana |
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Date of Appointment : |
30.11.1995 |
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Name : |
Mrs. Gurmeet Sharma |
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Designation : |
Director |
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Address : |
16-1, Sarbha Nagar, Ludhiana |
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Date of Appointment : |
02.05.1997 |
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Name : |
Mrs. Saroj Avasthi |
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Designation : |
Director |
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Address : |
145/1, Nihal Chand Road, Ludhiana |
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Date of Appointment : |
30.11.1995 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
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M/s. Aradhna Knitwears Private Limited |
2888050 |
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Mr. Ashok Avasthi |
953600 |
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Mrs. Gurmeet Sharma |
109700 |
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M/s. Sportking Knitwear |
70000 |
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M/s. Classic Fabrics Private Limited |
271000 |
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Ms. Janaki Devi |
30000 |
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Mrs. Madhu Mool Chandani |
30000 |
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M/s. Parasram (HUF) |
40000 |
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Mr. Ram Pal Trikha |
92630 |
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M/s. Aradhna International Limited |
250000 |
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Mr. Rattan Mool Chandani |
15000 |
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Ms. Saroj Avasthi |
250000 |
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Others |
20 |
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Total |
5000000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Importing and Exporting of Knitted Cloth, T-Shirts and
Garments. |
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Products : |
Knitted Cloths, T-Shirts and Garments |
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Exports : |
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Products : |
T-Shirts and Garments |
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Countries : |
Germany, France, The Netherlands, U.K., etc |
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Imports : |
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Products : |
Raw wool |
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Countries : |
Korea, Australia, U.K., France and Italy. |
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Terms : |
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Selling : |
L/C or Cash terms |
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Purchasing : |
L/C, Credit or CAD terms |
GENERAL
INFORMATION
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No. of Employees : |
150 |
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Bankers : |
·
State Bank of India S. H. B. Sunder Nagar, Ludhiana, Punjab ·
Centurion Bank Ludhiana, Punjab |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sumat Gupta & Company Chartered Accountant |
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Address : |
B-16/17, Miller Ganj, G T Road, Ludhiana – 141003, Punjab |
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Memberships : |
Nil |
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Collaborators : |
Nil |
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Associates/Subsidiaries : |
Aradhana Knitwears Private Limited Ludhiana, Punjab |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5250000 |
Equity Shares |
Rs. 10/- Each |
Rs. 52.500
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5214760 |
Equity Shares |
Rs. 10/- Each |
Rs. 52.147 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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52.148 |
50.000 |
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2] Share Application Money |
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0.000 |
10.738 |
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3] Reserves & Surplus |
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23.307 |
12.718 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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75.455 |
73.456 |
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LOAN FUNDS |
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1] Secured Loans |
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78.246 |
79.051 |
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2] Unsecured Loans |
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7.073 |
6.489 |
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TOTAL BORROWING |
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85.319 |
85.540 |
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DEFERRED TAX LIABILITIES |
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0.239 |
0.000 |
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TOTAL |
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161.013 |
158.996 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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23.811 |
25.563 |
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Capital work-in-progress |
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0.000 |
0.247 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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104.245 |
71.851 |
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Sundry Debtors |
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65.038 |
72.147 |
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Cash & Bank Balances |
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3.427 |
2.563 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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6.509 |
6.123 |
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Total
Current Assets |
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179.219 |
152.684 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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42.005 |
19.010 |
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Provisions |
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0.015 |
0.494 |
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Total
Current Liabilities |
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42.020 |
19.504 |
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Net Current Assets |
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137.199 |
133.180 |
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MISCELLANEOUS EXPENSES |
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0.003 |
0.006 |
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TOTAL |
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161.013 |
158.996 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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334.843 |
322.536 |
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Total Income |
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334.843 |
322.536 |
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Profit/(Loss) Before Tax |
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2.807 |
1.718 |
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Provision for Taxation |
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0.501 |
0.493 |
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Profit/(Loss) After Tax |
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2.306 |
1.225 |
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Earnings in Foreign Currency : |
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Export Earnings |
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0.463 |
1.372 |
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Total Earnings |
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0.463 |
1.372 |
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Imports : |
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Raw Materials |
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Stores & Spares |
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4.734 |
3.646 |
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Capital Goods |
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Others |
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Total Imports |
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4.734 |
3.646 |
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Expenditures : |
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Financial Charges |
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7.243 |
6.951 |
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Depreciation |
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4.174 |
7.125 |
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Other Expenditure |
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309.202 |
292.666 |
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Total Expenditure |
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320.619 |
306.742 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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0.69 |
0.38 |
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Net Profit Margin (PBT/Sales) |
(%) |
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0.84 |
0.53 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.38 |
0.96 |
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Return on Investment (ROI) (PBT/Networth) |
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0.04 |
0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.68 |
1.43 |
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Current Ratio (Current Asset/Current Liability) |
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4.26 |
7.82 |
LOCAL AGENCY
FURTHER INFORMATION
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Name of the company |
ARADHNA FABRICS PRIVATE LIMITED |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation dated 30.06.2003 to secure. EFC, FCFC, EER,
FBP Against goods. |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 2.000 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 tangible and movable property such as products,
stock in trade and goods belonging to the borrowers which now or here after
from time to time during the security shall be brought of the said borrowers
at Nehru Vihar. Kara Bara side G. T. Road, Ludhiana or anywhere else
including any such goods in the bank by way of first charge as security |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest Libor + 0.75% Margin – 25% Repayable on Demand |
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5) Name and Address and description of the person entitled to the
charge. |
State Bank of Fatiala, Bharat Nagar Chowk, Ludhiana |
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6) Date and brief description
of instrument modifying the charge |
Agreement of hypothecation dated 29.11.2003 |
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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. |
Limit enhanced from Rs. 2.000 Millions to rs. 4.500 Millions |
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 |
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US Dollar |
1 |
Rs.43.15 |
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UK Pound |
1 |
Rs.85.22 |
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Euro |
1 |
Rs.57.63 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
-- |
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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 |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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45 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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