MIRA INFORM REPORT

 

 

Report Date :

14.12.2007

 

IDENTIFICATION DETAILS

 

Name :

NARENDRA COTTON GINNING AND PRESSING COMPANY PRIVATE LIMITED

 

 

Registered Office :

Rajkot – Jamnagar Highway Road, Village: Targhdi, Tal: Padadhari, District-Rajkot - 360110, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

15.05.1997

 

 

Com. Reg. No.:

04-32339

 

 

CIN No.:

[Company Identification No.]

U17119GJ1997PTC032339

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

RKTN00243F

 

 

PAN No.:

[Permanent Account No.]

AAACN7223K

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of all kind of cotton, synthetic hosiery goods, worsted, whoolen goods and goods made.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 219588

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company. The company has increased its capital during the year 2006-07 and has been successful in wiping – off all its previous losses. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

Rajkot – Jamnagar Highway Road, Village: Targhdi - 360110, Tal: Padadhari, District-Rajkot, Gujarat, India

Tel. No.:

91-2820-282621/282638

Mobile No.:

91-9824228400

Fax No.:

91-2820-2431308

E-Mail :

dhamsy_cotlook@yahoo.com

 

 

Factory:

AT. Movaiya Village, Near Padadmari By Pass Tal Pass Jal, Paorhari, Rajkot-360110, Gujarat, India

 

DIRECTORS

 

Name :

Mr. Narendrakumar Vrajlal Lakhani

Designation :

Director

Address :

21-B, Panchvati Society, opp. Panchvati Main Road,  Vrujvatika Kalawad Road, Rajkot – 360002, Gujarat, India

Date of Birth/Age :

27.06.1950

Date of Appointment :

15.05.1997

 

 

Name :

Mr. Dharmeshkumar Narendrakumar Lakhani

Designation :

Director

Address :

21-B, Panchvati Society, opp. Panchvati Main Road,  Vrujvatika Kalawad Road, Rajkot – 360002, Gujarat, India

Date of Birth/Age :

19.04.1974

Date of Appointment :

15.05.1997

 

 

Name :

Mrs. Prafulaben Narendrakumar Lakhani

Designation :

Director

Address :

21-B, Panchvati Society, opp. Panchvati Main Road,  Vrujvatika Kalawad Road, Rajkot – 360002, Gujarat, India

Date of Birth/Age :

05.10.1953

Date of Appointment :

15.05.1997

 

 

 

 

 

 

Name :

Mr. Niraj Narendrakumar Lakhani

Designation :

Director

Address :

21-B, Panchvati Society, opp. Panchvati Main Road,  Vrujvatika Kalawad Road, Rajkot – 360002, Gujarat, India

Date of Birth/Age :

02.02.1978

Date of Appointment :

03.07.2000

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

 

 

 

Bridge Stocks and Securities private Limited

 

400000

Shevin Capital Services Private Limited

 

350000

Shevin Securities Private Limited

 

250000

Shrinagar Agents Private Limited

 

250000

Silverstone Commercial Private Limited

 

250000

Sri Ratnakar Invesca Private Limited

 

250000

Mudit Saraogi

 

75000

Mrs.Deepika S Somaiya

 

40000

Mr. Devendra V. Unadkat

 

20000

Mr. Shubhashchandra R. Somaiya

 

160000

Mr. Dharmesh N. Lakhani

 

212000

Mr. Dharmesh N. Lakhani (HUF)

 

212000

Mrs. Falguniben D. Lakhani

 

212000

Mr, Narendra V. Lakhani

 

235000

Mr, Narendra V. Lakhani(HUF)

 

212000

Mr. Niraj N. Lakhani

 

246850

Mrs. Prafulaben N. Lakhani

 

212000

Mrs. Sejal N. Lakhani

 

212000

Mrs. Sheetal N. Lakhani

 

212000

Mrs. Jayaben V. Lakhani

 

212000

 

 

 

Total

 

4222850

 

 

 

Category

 

Percantage

Directors or relatives of directors

 

100

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of all kind of cotton, synthetic hosiery goods, worsted, whoolen goods and goods made.

 

 

Products :

Cotton Ginning

 

GENERAL INFORMATION

 

Bankers :
  • The Lakshmi Vilas Bank Limited, Gondal Road, Rajkot
  • Small Industries Development Bank of India, Rajkot

 

 

Facilities :

-

 

Banking Relations :

Satisfactory

 

 

 

 

Auditors :

 

Name :

R. V. Somaiya Associates

Chartered Accountants

Address :

Vrundavan, 2nd Floor, 15 Sardar Nagar, Opp. Jagdish Art Gallery, Rajkot – 360001, Gujarat, India

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

5000000

Equity shares

Rs.10/- each

Rs.50.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

4999380

Equity shares

Rs.10/- each

Rs.49.993

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

49.993

7.765

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

4.904

3.500

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

54.897

11.265

LOAN FUNDS

 

 

 

1] Secured Loans

 

5.048

0.026

2] Unsecured Loans

 

23.548

17.828

TOTAL BORROWING

 

28.596

17.854

DEFERRED TAX LIABILITIES

 

3.556

1.038

 

 

 

 

TOTAL

 

87.049

30.157

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

125.786

9.189

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

0.039

0.039

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

0.514

12.997

 

Sundry Debtors
 

1.995

9.875

 

Cash & Bank Balances
 

0.519

0.361

 

Other Current Assets
 

36.373

0.553

 

Loans & Advances
 

2.217

0.197

Total Current Assets
 

41.618

23.983

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

81.286

3.055

 

Provisions
 

0.280

0.180

Total Current Liabilities
 

81.566

3.235

Net Current Assets
 

(39.948)

20.748

 

 

 

 

MISCELLANEOUS EXPENSES

 

1.172

0.000

Profit and Loss Account

 

0.000

0.181

 

 

 

 

TOTAL

 

87.049

30.157

 

KEY RATIOS

 

PARTICULARS

 

 

 

31.03.2007

31.03.2006

Debt Equity Ratio

(Total Liability/Networth)

 
 

2.01

1.88

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

0.51

7.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Corporate identity number (CIN) Foreign company registration number

U17119GJ1997PTC032339

Name of the Company

NARENDRA COTTON GINNING AND PRESSING COMPANY PRIVATE LIMITED

Address

Rajkot – Jamnagar Highway Road, Village: Targhdi - 360110, Tal: Padadhari, District-Rajkot, Gujarat, India

This form is for

Creation of charge

Type of Charge

Movable Property (not being pledge)

Particulars of the charge holder 

Small Industries Development Bank of India

1st Floor, Nirmal 7 Ramkrishna Nagar Corner, Opp. Commissioner Bungalow, off Yagnik Road, Rajkot – 360001, Gujarat, India

rishidw@sidbi.com

Nature or description of the instrument(s) creating or modifying the charge

Deed of Hypothecation

Date of the instrument creating or modifying the charge

11.01.02007

Amount secured by the charge

Rs.75.000 Millions

Brief particulars of the principal terms and conditions and extent and operation of the charge

  • Rate of Interest : 10.50%
  • Terms of repayment : The loan shall be repaid in 24 quartely installment of Rs.3.125 Millions commencing after a moratorium period of 12 months from the date of first disbursement of loan. The date of such installment shall be on March 1, Jun 1, September 1, and December 1 each year.
  • Margin : As per Bank rules / policy / guidence / Directives.
  • Extent and operation of the charge : Full amount of loan together with interest, further intrerest, liquidated damages, cost, charges expenses and all other money as stipulated in the loan agreement shall be secured inter alia by : First Charge by way hypothecation over all the borrower movables (save and expect book debts) including the movables, plant and machinery, machinery spares, tools and acessories, office equipments, computers, furnitures and fixture, both present and future subject to prior charge created in favour of bank.

Short particulars of the property charged (including location of the property)

Hypothecation of all the movable assets of the including plant, Machinery/equipment furniture and fixture etc..

Particular of the present modification 

N.A.

 

Name of the company

NARENDRA COTTON GINNING AND PRESSING COMPANY PRIVATE LIMITED

Presented By

The Lakshmi Vilas Bank Limited, Rajkot

1) Date and description of instrument creating the change

Date: 14.12.2000 Memorandum of Deposit of Title Deeds.

2) Amount secured by the charge/amount owing on the securities of charge

Total amount secured is Rs.4.000 Millions along with interest, Cash Credit Hypothecation – Stock and Book debts.

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

Immovable properties acquired by the company as lessee being land admeasuring 2 acres 8 Gunthas of  surve no. 142/143 of village Targhdi, Taluka Padadhari, District Rajkot, along with structure thereon.

4) Gist of the terms and conditions and extent and operation of the charge.

To secure the amount stated in no.2 , above and interest thereon, cost, charges expenses incurred by and /or payable to the Lakshmi Vilas Bank Limited, Rajkot.

5) Name and Address and description of the person entitled to the charge.

The Lakshmi Vilas Bank Limited

Gondal Road, Rajkot

6) Date  and brief description of instrument modifying the charge

Date : 29.03.2003

Letter of extension of charge over immovable property of the company mortgaged to the bank on 14.12.2000.

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.

To cover the total charge of Rs. 5.000 Millions Details of increase in facility is as under :

 

Facility

Old Limit

New Limit

 

 

 

OCC

Rs.4.000 Millions

Rs.5.000 Millions

CCBD Sub Limit

Rs.2.000 Millions

Rs.2.000 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 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.39.37

UK Pound

1

Rs.80.49

Euro

1

Rs.57.92

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

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

 

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.

 

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

 

 

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