MIRA
INFORM REPORT
|
Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
VEDIK COTTON LIMITED |
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Registered Office : |
4th Floor, Sarthik Near |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.02.1997 |
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Com. Reg. No.: |
031722 |
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CIN No.: [Company
Identification No.] |
U17110GJ1997PLC031722 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMV01650F |
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PAN No.: [Permanent
Account No.] |
AABCA6457D |
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Legal Form : |
A Closely Held Public Limited Company |
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Line of Business : |
Manufacturing of Yarn. |
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 210000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by Average 30 days |
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Litigation : |
Clear |
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Comments : |
Ms. Rishi of the company declined business and financial details on 1st
August 2007. Subject is a well-established company having satisfactory track. Trade
relations are fair. Payments are reported as slow by average 30 days as
reported from the local market. However the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
4th Floor, Sarthik Near |
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Tel. No.: |
91-79-2692 8921 |
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Fax No.: |
91-79-2692 4173 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Apurva M. Arya |
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Designation : |
Director |
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Address : |
201, “Siromani”, |
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Date of Birth/Age : |
19.09.1981 |
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Date of Appointment : |
01.07.2003 |
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Name : |
Mrs. Kusum Arya |
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Designation : |
Director |
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Address : |
201, “Siromani”, Satellite, Ahmedabad – 380 015, |
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Date of Appointment : |
01.07.2003 |
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Name : |
Mr. Prakash Chand Rathi |
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Designation : |
Director |
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Address : |
19, Navrang Society, |
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Date of Birth/Age : |
03.04.1957 |
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Date of Appointment : |
06.08.2001 |
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Name : |
Mrs. S. Savithri |
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Designation : |
Independent Director |
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Address : |
Kailasagar No. 2, Flat No. 702, Jodhpur Village Road, Satellite,
Ahmedabad – 380 015, Gujarat, India |
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Date of Birth / Age: |
22.05.1956 |
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Date of Appointment : |
16.05.2005 |
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Name : |
Mr. Prakash Gopichand Ramrakhiani |
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Designation : |
Additional Director |
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Address : |
Plot -154, Sector -8, Gandhinagar – 382 008, |
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Date of Appointment : |
15.01.2006 |
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Name : |
Mr. Rohit Kumar Ramanlal Dave |
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Designation : |
Independent Director |
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Address : |
D – 36, Kritisagar Apartment, Near Prernatirth Bungalows, Part – I, |
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Date of Birth / Age: |
07.04.1955 |
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Date of Appointment : |
15.01.2006 |
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Name : |
Mr. Karan Arya |
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Designation : |
Director |
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Address : |
607 Anand Bhavan, Opposite Bijal Apartments, Panchvati Navrangpura,
Ahmedabad – 380 009, |
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Date of Birth / Age: |
11.11.1981 |
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Date of Appointment : |
01.05.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. Mahendra K. Arya |
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2600 |
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Mrs. Kusum Arya |
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7000 |
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Mr. P. C. Pande |
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100 |
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Mr. Sanjay Mahtoliya |
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1600 |
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Mr. Bhurchand Khatana |
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1900 |
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Mr. Chainrup Bhansali |
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1900 |
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Mr. Prakash Rathi |
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100 |
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Mr. Apurva Arya |
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1800 |
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Mr. J. K. Srivastava |
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1800 |
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Mr. A. K. Srivastava |
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1600 |
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Mr. Rajiv Yadav |
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1500 |
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Mr. Surya Singh |
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1500 |
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Mr. Pawan Khandelwal |
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1800 |
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Mr. A. K. Saxena |
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1500 |
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Mr. H. P. Mishra |
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1600 |
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Mr. Rajesh Rana |
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1600 |
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Mr. Rajesh Malkani |
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1600 |
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Mr. Yogesh Dubey |
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1800 |
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Mr. Rakesh Bahvsar |
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1500 |
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Mr. Raj Kumar Saraf |
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1700 |
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Mr. R. G. Bubna |
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1600 |
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Mr. Kamlesh Agarwal |
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1500 |
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Mr. Anil Brahmkshatriya |
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1800 |
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Mr. Ravi Bhatt |
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1800 |
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Mr. Surendra Singh |
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1500 |
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Mr. Ishwarsingh Yadav |
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1700 |
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Mr. Dasrath Singh Shekhawat |
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1800 |
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Mr. Rohit Dave |
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1800 |
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Category |
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Percentage
of Holding |
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Bodies Corporate |
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98.34 |
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Directors or relatives of directors |
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0.78 |
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Other top fifty (50) shareholders (other than listed above) |
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0.88 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Yarn. |
GENERAL INFORMATION
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No. of Employees : |
About 190 |
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Bankers : |
Bank of E-Mail: srshah@bankofindia.co.in |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
Omkar Maloo Chartered Accountants |
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Address : |
4th Floor, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 30.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity Shares |
Rs. 10.00 each |
Rs. 30.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
The Company’s last available financials are enclosed herewith. Ms. Rishi
of the company declined business and financial information.
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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30.000 |
0.500 |
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2] Share Application Money |
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15.077 |
0.000 |
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3] Reserves & Surplus |
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8.118 |
5.182 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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53.195 |
5.682 |
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LOAN FUNDS |
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1] Secured Loans |
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21.120 |
9.635 |
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2] Unsecured Loans |
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48.782 |
35.487 |
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TOTAL BORROWING |
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69.902 |
45.122 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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123.096 |
50.804 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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15.581 |
25.338 |
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Capital work-in-progress |
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6.244 |
3.402 |
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INVESTMENT |
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0.220 |
1.331 |
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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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12.755 |
4.407 |
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Sundry Debtors |
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79.359 |
13.943 |
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Cash & Bank Balances |
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25.873 |
10.997 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
9.793 |
20.145 |
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Total
Current Assets |
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127.780 |
49.492 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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27.284 |
27.050 |
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Provisions |
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1.607 |
1.740 |
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Total
Current Liabilities |
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28.891 |
28.790 |
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Net Current Assets |
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98.889 |
20.702 |
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MISCELLANEOUS EXPENSES |
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2.163 |
0.031 |
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TOTAL |
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123.096 |
50.804 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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389.570 |
224.759 |
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Other Income |
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1.420 |
3.102 |
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Total Income |
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390.990 |
227.862 |
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Profit/(Loss) Before Tax |
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4.166 |
3.634 |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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4.166 |
3.634 |
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Expenditures : |
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Raw Material Consumed |
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307.922 |
163.537 |
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Increase or decrease in finished goods,
work-in-progress |
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(4.369) |
1.075 |
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Salaries, wages and bonus |
|
1.084 |
0.581 |
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Managerial Remuneration |
|
1.060 |
0.470 |
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Payment of auditors |
|
0.021 |
0.020 |
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Interest |
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1.365 |
1.424 |
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Insurance Expenses |
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0.170 |
0.042 |
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Depreciation and amortization |
|
2.274 |
2.384 |
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Other Expenditure |
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77.296 |
54.695 |
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Total Expenditure |
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386.824 |
224.228 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.07 |
1.59 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.07 |
1.62 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.91 |
4.86 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08 |
0.64 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
1.86 |
13.01 |
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Current Ratio (Current Asset/Current Liability) |
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|
4.42 |
1.72 |
LOCAL AGENCY FURTHER INFORMATION
Business:
Subject manufacturing all minds of yarn. Textures /
Filament / Spun yarn in huge volumes. Denier range 30 to 250 denier in
Texturized and Filament. Count range 12s to 60s count in spun yarn, in blends
of polyester / viscose / cotton.
Form 8
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Corporate
identity number (CIN) Foreign company registration number |
U17110GJ1997PLC031722 |
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Name of the
Company |
VEDIK COTTON
LIMITED |
|
Address |
4th
Floor, Sarthik Near |
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This form is for |
Creation of
charge |
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Type of Charge |
Equitable
mortgage or mortgage of property by depositing the title deeds |
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Particulars of
the charge holder |
Bank of E-Mail: srshah@bankofindia.co.in |
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Amount secured by
the charge |
Rs. 7.500
millions |
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Nature or
description of the instrument creating charge |
Oral Assent |
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Brief of the
principal terms and conditions and extent and operation of the charge |
Rate of Interest
PLR 11.25% PAAT Present with Monthly Rests |
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Description of
the property charged indicating whether it is a charge on |
Immovable
properties |
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Particulars of
the property charged |
Entire mortgage
of landed properties of Vedik Cotton Limited situated at Shop No. 7 and 8,
Sarthik complex, Near Fun Republic Satellite Road, Ahmedabad, |
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Date of
Instrument |
30.06.2006 |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 40.36 |
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|
1 |
Rs. 82.18 |
|
Euro |
1 |
Rs. 55.31 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
|
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 |
5 |
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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 |
NO |
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--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|