MIRA
INFORM REPORT
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Report Date : |
11.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAW SILK EMPORIUM |
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Registered Office : |
K - 41, Central Market, Lalpat Nagar – II, New Delhi – 110 024 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1997 |
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IEC No.: |
0502007648 |
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PAN No.: [Permanent
Account No.] |
ACWPD7660F |
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Legal Form : |
Sole Proprietory Concern. |
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Line of Business : |
Manufacturer and Exporters of Fashion Accessories, Home Furnishing
Made –Ups, Scarves and Stoles. |
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 8000 |
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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 concern having satisfactory track.
Trade relations are fair. Payments are usually correct and as per
commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
K - 41, Central Market, Lalpat Nagar – II, New Delhi – 110 024, India |
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Tel. No.: |
91-11-29837397 / 29830997 / 26320997 / 26327397 |
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Mobile No.: |
91-9868887686 / 9811087686 |
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Fax No.: |
91-11-29830997 / 26320997 |
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E-Mail : |
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Website : |
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Area : |
900 sq.fts (approximately) |
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Location : |
Owned |
SOLE PROPRIETOR
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Name : |
Mr. Santosh Dewangan |
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Designation : |
Proprietor |
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Address : |
Classic House, 12/8, Doctor Lane, Gole Market, New Delhi – 110 001,
India |
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Date of Birth/Age : |
39 Years |
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Qualification : |
Graduate |
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Experience : |
19 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporters of Fashion Accessories, Home Furnishing
Made –Ups, Scarves and Stoles. |
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Products : |
· Home furnishing · Throws · Quilts · Cushion Covers · Curtains · Scarves · Stoles · Table linen · Fabrics · Pareos · Sarongs · Dupattas |
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Exports : |
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Countries : |
Germany, Italy, Spain, France, Belgium, UK, Hongkong, Australia,
Singapore. |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
CAD, Credit (15 days) |
GENERAL
INFORMATION
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No. of Employees : |
25 |
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Bankers : |
· American Express Bank Address; Hamilton Road, Connaught Place,
New Delhi – 110 001, India · CITI Bank Address: Connaught Place, New Delhi – 110
001, India |
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Banking
Relations : |
Satisfactory |
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Memberships : |
· The Indian Silk Export Promotion Council Sponsored By Ministry Of Textiles · Export Promotion Council For Handicrafts, Sponsored By Ministry Of Textiles · Apparel Export Promotion Council · Apex Government Body of Ministry Of Textiles, Government of India. |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 2.000 millions |
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Borrowed : |
----- |
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Total : |
Rs. 2.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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25.000 |
20.000 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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25.000 |
20.000 |
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Profit/(Loss) Before Tax |
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0.650 |
0.500 |
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Provision for Taxation |
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0.025 |
0.075 |
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Profit/(Loss) After Tax |
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0.625 |
0.425 |
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Export Value |
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18.750 |
12.000 |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
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2.50 |
2.13 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.60 |
2.50 |
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Return on Investment (ROI) (PBT/Networth) |
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31.25 |
28.33 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
The projected turnover for the financial year
ending March 31, 2008 shall be to the tune of Rs. 35.000 millions approximately
as claimed by the subject.
INDUSTRY OVERVIEWS:
The textile industry occupies a unique place in our country. One of
the earliest to come into existence in India, it accounts for 14% of the total
Industrial production, contributes to nearly 30% of the total exports and is the
second largest employment generator after agriculture.
Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan.
The main objective of the textile
policy 2000 is to provide cloth of acceptable quality at reasonable prices for
the vast majority of the population of the country, to increasingly contribute to the provision of
sustainable employment and the economic growth of the nation; and to compete
with confidence for an increasing share of the global market.
Developing countries with both textile and clothing capacity may be able to prosper in the new competitive environment after the textile quota regime of quantitative import restrictions under the multi-fibre arrangement (MFA) came to an end on 1st January, 2005 under the World Trade Organisation (WTO) Agreement on Textiles and Clothing.
As a result, the textile industry in
developed countries will face intensified competition in both their export and
domestic markets. However, the
migration of textile capacity
will be influenced by objective competitive factors and will be hampered by the
presence of distorting domestic measures and weak domestic infrastructure in
several developing and least developed countries.
The elimination of quota restriction
will open the way for the most competitive developing countries to develop
stronger clusters of textile expertise, enabling them to handle all stages of
the production chain from growing natural fibres to producing finished
clothing, The OECD
paper says that while low wages can still give developing countries a competitive
edge in world markets, time factors now play a far more crucial role in
determining international competitiveness. Countries that aspire to maintain an export-led strategy in textiles and
clothing need to complement their cluster of expertise in manufacturing by
developing their expertise in the higher value-added service segments of the
supply chain such as design, sourcing or retail distribution. To pursue these
avenues, national suppliers need to place greater emphasis on education and
training of services-related skills and to encourage the establishment of joint
structures where domestic suppliers can share market knowledge and offer more
integrated solutions to prospective buyers.
The textile industry is undergoing a major
reorientation towards non-clothing applications of textiles, known as technical
textiles, which are growing roughly at twice rate of textiles for clothing
applications and now account for more than half of total textile production. The processes
involved in producing technical textiles require expensive equipments and
skilled workers and are, for the moment, concentrated in developed countries.
Technical textiles have many applications including bed sheets; filtration and
abrasive materials; furniture and healthcare upholstery; thermal protection and
blood-absorbing materials; seatbelts; adhesive tape, and multiple other
specialized products and applications. India must take adequate measures for
capturing its market by promoting research and development in this sector.
The mood in the Indian textile industry given the phase-out of the
quota regime of the multi-fibre arrangement (MFA) is upbeat with new investment flowing in and increased
orders for the industry as a result of which capacities are fully booked up to
April 2005. As a result of various initiatives taken by the government,
there has been new investment of
Rs.500000.000 millions in the textile industry in the last five years. Nine
textile majors invested Rs.26000.000 millions and plan to invest another
Rs.64000.000 millions. Further, India's cotton production increased by 57% over
the last five years; and 3 million additional spindles and 30,000 shuttle-less
looms were installed.
The industry expects investment
of Rs.1400000.000 millions in this sector in the post-MFA phase. A Vision 2010
for textiles formulated by the government after intensive interaction with the industry and Export Promotion Councils
to capitalise on the upbeat mood aims
to increase India's share in world's textile trade from the current 4% to 8% by
2010 and to achieve export value of US $ 50 billion by 2010 Vision 2010 for
textiles envisages growth in Indian textile economy from the current US $ 37
billion to $ 85 billion by 2010; creation of 12 million new jobs in the textile
sector; and modernisation and consolidation for creating a globally competitive
textile industry.
There will be opportunities as well as challenges for the Indian textile
industry in the post-MFA era. But India has natural advantages which can be
capitalised on strong raw material base - cotton, man-made fibres, jute, silk;
large production capacity (spinning - 21% of world capacity and weaving - 33%
of world capacity but of low technology); vast pool of skilled manpower;
entrepreneurship; flexibility in production process; and long experience with
US/EU (European Union). At the same time, there are constraints relating to
fragmented industry, constraints
of processing, quality of cotton, concerns over power cost, labour reforms and
other infrastructural constraints and bottlenecks. E.g., cost of power was Rs.
8 per garment in India whereas in China it was only Rs. 2 per garment.
Further, for the benefit of exporters, there should be a
state-owned cargo shipping mechanism. Several initiatives have already been
taken by the government to overcome some of these concerns including
rationalisation of fiscal duties; technology upgradation through the Technology
Up gradation Fund Scheme (TUFS); setting up of Apparel Parks; and
liberalisation of restrictive regulatory practices.
“India is presently exporting six billion U.S. Dollars worth of garments, whereas with the WTO regime in place, we can increase the production and export of garments to 18 to 20 billion U.S. Dollars within the next five years. This will enable generation of employment in general and in rural areas in particular. By tripling the export of apparels, we can add more than 5 million direct jobs and 7 million indirect jobs in the allied sector, primarily in the cultivation of cotton. Concerted efforts are needed in cotton research, technology generation, transfer of technology, modernisation and upgrading of ginning and pressing factories and an aggressive marketing strategy."
OTHER INFORMATION:
State of affairs of
the subject:
Established in 1994 the subject is engaged in the business of manufacturers and exporters of Home Furnishing, Cushion Covers, Scarves, Stoles, Pareos and other textile and home furnishing products.
The concern Profile:
The subject is during the business as a family business. Mr. G C Dewangan, F/o Mr. Santosh Dewangan initially established the subject company. Mr. G C Dewangan is looking fter production activities. The subject is having its own production unit at Chamba in the State of Chattisgarh.
The subject is also manufacturing the home furnishing products through third party and they are having in houses R and D control.
The subject is mainly exporting their products to European countries, Australia, Hongkong and other parts of the world.
In View of the above business dealings are permissible.
Brief About CEO
Mr. Santosh Dewangna (Age: 39 Years), proprietor of the subject company did his graduation and is looking after marketing and production activities. He is having sound knowledge in Textile Industry.
The inquired address is the subject Administrative Office and Sampling Unit. The subject office is situated at prime location.
WEBSITE
DETAILS:
They are in Silk Trade, which is their family business since last Three Generations. They are based at, CHAMPA in Chattisgarh, in INDIA. Champa is one the biggest centers for Fabrication of Silk, Silk Cotton, Silk Vicose Fabrics (Suitable for Fashion accessories, home furnishing made ups, Scarves and Stolls) in Country. They are catering to the needs of Domestic Market as well as Exports since last 20 years under the name and style of Raw Silk Emporium from Kanishka Shopping Plaza, which proves their commitment to Quality and timely execution of orders combined with reasonable pricing of their products. They are in the process of execution of orders combined with reasonable pricing of their products. They are in the process of exporting their products directly to their esteemed foreign buyers by forming an export division as Raw Silk Enterprises. They have traveled at length, Countries, Places like Europe, Hongkong, Australia and Singapore to name a few. Having a long and close relation with their overseas clients. Their group has the required infrastructure and ability to develop and produce designs, color and trends to match the taste of the global Market, which is their main strength.
Now they have shifted to more centralized location at K-41, Central Market, Lajpat Nagar -
II, New Delhi - 110 024.
Man behind their Succes Story
· Sri G.C. Dewangan Director – Production
Graduate with 40 years experience
Looking after Procurement and Production Activities
· Sri Santosh Dewangan Director - Business Development
Graduate with 20 years experience in Silk Trade
And a team of 25 skilled and
experienced Staff.
Product Range
They begin their quest by choosing the right kind of Silk yarn for their products.
Quality
And here, their long years of experience gives us the advantage of knowing which kind of silk yarn would be most suitable for creating a particular type of quality and from whom it can be obtained.
CMT REPORT (Corruption,
Money Laundering and Terrorism]
The Public Notice information has been collected from various stheirces
including but not limited to: The Ctheirts, 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] Ctheirt 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 :
Their
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.
Their 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.36 |
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UK Pound |
1 |
Rs.80.58 |
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Euro |
1 |
Rs.57.96 |
SCORE and 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 |
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 |
YES |
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--AFFILIATION |
YES/NO |
NO |
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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 and operational base are regarded healthy. General
unfavtheirable 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 |
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26-40 |
B |
Unfavtheirable and favtheirable 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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