MIRA
INFORM REPORT
|
Report Date : |
23.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
KLJ ORGANICS LIMITED |
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Registered Office : |
KLJ House 63 Rama Marg Najafgarh, Road, New Delhi – 110 015 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
03.05.1995 |
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Com. Reg. No.: |
55-68170 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PLC068170 |
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Legal Form : |
A closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturer of Paraffin Wax. |
RATING &
COMMENTS
|
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 467016 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of well – established KLJ Group. Financial Position
is good. Payments are usually correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
|
Registered Office /Factory : |
KLJ House 63 Rama Marg Najafgarh, Road, New Delhi – 110 015, India |
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Tel. No.: |
91-11-5415823 / 544 2790 / 25459706 |
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Fax No.: |
91-11-5436204 / 25459709 / 915459709 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Kamal Jain |
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Designation : |
Director |
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Address : |
6- B/9, NEA, Old Rajinder Nagar, New Delhi – 110 060, India |
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Date of Birth/Age : |
08.4.1973 |
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Date of Appointment : |
05.05.1998 |
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Name : |
Mr. Hulas Mal Surana |
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Designation : |
Director |
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Address : |
10470, Multani Dhanda, Bagichi Alauddin, Ram Nagar, New Delhi – 110
055, India |
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Date of Birth/Age : |
27.05.1948 |
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Date of Appointment : |
17.01.1996 |
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Name : |
Mr. Virendra Kumar Singhi |
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Designation : |
Director |
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Address : |
K -71, Kirti Nagar, New Delhi – 110 015, India |
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Date of Birth/Age : |
02.10.1964 |
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Date of Appointment : |
30.09.1997 |
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Name : |
Mr. Hemant Jain |
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Designation : |
Director |
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Address : |
6- B/9, NEA, Old Rajinder Nagar, New Delhi – 110 060, India |
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Date of Birth/Age : |
18.08.1971 |
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Date of Appointment : |
20.08.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Kanhaiyalal Jain |
|
350000 |
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Mr. Hemant Jain |
|
158400 |
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Mr. V L Sood |
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100 |
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Mrs. Sushila Patawari |
|
250000 |
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Mr. Mangi Lal Sethia |
|
100 |
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Mr. Kamal Jain |
|
158400 |
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Mrs. Pushpa Jain |
|
253400 |
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Kanhaiyalal Jain And Sons |
|
158400 |
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KLJ Polymers And Chemicals Limited |
|
112800 |
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Kinetic Impex Limited |
|
158400 |
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Total
|
1600000 |
Equity Shares Breakup (Percentage of Total Equity):
|
Sr No. |
Category |
Percentage |
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1 |
Bodies Corporate |
16.95 |
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2 |
Directors Or Relatives Of Directors |
83.05 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Paraffin Wax. |
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Products : |
· Chlorinated Paraffin Wax · Hydrochloric Acid · HNP |
GENERAL
INFORMATION
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No. of Employees : |
50 |
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Bankers : |
State Bank of India Address: Commercial Branch, Naraina – 110
028, New Delhi, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Nahata Jain Golchha and
Associates Chartered Accountants |
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Address : |
4378, Murari Lal Street, 4B, Ansari Road, Darya Ganj, New Delhi – 110
002, India |
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Tel No: |
91-22-23275314 / 23273161 |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10/- Each |
Rs. 16.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
1600000 |
Equity Shares |
Rs. 10/- Each |
Rs. 16.000 Millions |
||
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
16.000 |
16.000 |
16.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
100.754 |
77.179 |
59.167 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
116.754 |
93.179 |
75.167 |
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LOAN FUNDS |
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1] Secured Loans |
21.904 |
34.039 |
45.410 |
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2] Unsecured Loans |
37.162 |
2.301 |
20.129 |
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TOTAL BORROWING |
59.066 |
36.340 |
65.539 |
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DEFERRED TAX LIABILITIES |
3.140 |
3.802 |
3.323 |
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TOTAL |
178.960 |
133.321 |
144.029 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
65.964 |
61.663 |
65.093 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
92.313
|
36.312 |
37.358 |
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Sundry Debtors |
61.865
|
52.183 |
45.579 |
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Cash & Bank Balances |
2.051
|
1.750 |
0.343 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
26.525
|
43.194 |
14.898 |
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Total
Current Assets |
182.754
|
133.439 |
98.178 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
70.001
|
62.268 |
19.973 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
70.001
|
62.268 |
19.973 |
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Net Current Assets |
112.753
|
71.171 |
78.205 |
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MISCELLANEOUS EXPENSES |
0.243 |
0.487 |
0.731 |
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TOTAL |
178.960 |
133.321 |
144.029 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
356.258 |
309.883 |
370.399 |
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Other Income |
2.034 |
7.512 |
9.673 |
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Total Income |
358.292 |
317.395 |
380.072 |
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Profit/(Loss) Before Tax |
31.092 |
26.343 |
27.049 |
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Provision for Taxation |
7.436 |
8.331 |
7.810 |
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Profit/(Loss) After Tax |
23.656 |
18.012 |
19.239 |
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Export Value |
71.344 |
35.894 |
17.614 |
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Import Value |
NA |
114.415 |
107.976 |
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Expenditures : |
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Raw Material Consumed |
252.934 |
221.760 |
279.514 |
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Excise Duty |
0.000 |
0.000 |
7.692 |
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Manufacturing and Other Expenses |
0.000 |
0.000 |
42.853 |
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loss on sale of fixed assets |
0.000 |
0.000 |
0.012 |
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Consumption of stores and spares parts |
0.935 |
1.016 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[7.518] |
1.935 |
0.000 |
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Salaries, Wages, Bonus, etc. |
8.637 |
7.255 |
0.000 |
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Payment to Auditors |
0.040 |
0.040 |
0.000 |
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Interest |
4.901 |
2.467 |
6.312 |
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Insurance Expenses |
0.485 |
0.598 |
0.000 |
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Power & Fuel |
13.715 |
10.305 |
0.000 |
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Depreciation & Amortization |
7.819 |
8.557 |
8.917 |
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Other Expenditure |
45.251 |
37.115 |
0.000 |
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Total Expenditure |
327.201 |
291.048 |
345.300 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
6.60
|
5.67 |
5.06 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.72
|
8.50 |
7.30 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
12.50
|
13.50 |
16.56 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.28 |
0.35 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.10
|
1.05 |
1.13 |
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Current Ratio (Current Asset/Current Liability) |
|
2.61
|
2.14 |
4.91 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Name of the
company |
KLJ Organics Limited |
|
Presented
By |
State Bank of
India Address:
Commercial Branch, Delhi |
|
1) Date and
description of instrument creating the change |
General agreement
for grant of small Industrial advances and hypothecation of book debts and
other assets dated 18.05.2001 regd. on 27.07.2001 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 0.042 million
|
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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 |
First charge by
way of hypothecation and for pledge of the borrower entire goods, stock of raw
materials , work in process, finished goods, stores and spares, movable and
other assets including document of title goods and other assets outstanding
moneys receivables, claims , invoices, documents, contracts, engagement
bills, securities, investments, and right both present and future. First charge by
way of hypothecation plant and machineries and miscellaneous fixed assets of
the company. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Interest @ 1% above SBAR with 12.5% p.a subject to change as per RBI /
Bank from time to time. Margin Raw materials/ WIP/ Finished goods, book debts 30%, LC BG
-10% |
|
5) Name and
Address and description of the person entitled to the charge. |
SBI Commercial Branch, Nariana, New Delhi, India |
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6) Date and brief description of instrument
modifying the charge |
Letter of
hypothecation grant of individual limits within overall limits dated
04.07.2003 |
|
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. |
Overall limit
remain the same Rs. 70.000 millions within overall limit Rs. 40.000 millions
FCNR (B) DL allowed. Rate of interest @ 2.00% p.a above 11 months LIBOR
,payable on the last working day of each month other terms and conditions as
per agreement. |
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Corporation identity number or foreign company registrations number of
the company |
U74899DL1995PLC068170 |
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Name of the company |
KLJ ORGANICS
LIMITED |
|
Address |
KLJ
House 63 Rama Marg, Najafgarh Road, New Delhi – 110 015, India |
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This Form is for |
modification of charge |
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Type of Charges |
A charge on immovable property, Any interest in immovable property
book debts, Movable property (not
being pledge), others. |
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Particular of the charge holder
|
State Bank of India address: Commercial Branch, Naraina – 110 028, New Delhi, India Email : rkarohini@yahoo.co.in
|
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Nature or description of the instrument creating charge |
Form C 1-A, Supplemental Agreement of loan for increase in the overall
limit Form C 2-A, Supplemental agreement of hypothecation of goods and
assets for increase in the overall Limit. Form C 3- A, Supplemental Agreement of pledge of goods and assets for
increase in the overall limit Form C -5, Letter regarding the grant of individual limits within the overall
limit Form B for EM of property. |
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Date of the instrument creating charge |
20.11.2007 |
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Amount Secure by the charge |
Rs. 270.000 millions |
|
Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of interest: Cash Credit 1.25% below SBAR Minimum 11.50% with monthly rests Term Loan 1% below SBAR Minimum 11.75% p.a with monthly rests. Terms of Repayment: Cash Credit repayable demand, term loan in installment as per
agreement. Margin: Raw material: 25% Stock in process: 25% Finished goods : 25% Book debts / receivables (90 Days cover) -25% Extent and operation of the
charge: 100% |
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Shorts particulars of the Property charged |
First charge on all the current such as stock of all types finished , RM,
WIP, Stores and spares, fixed assets of the company both present and future
including EM of factory Land And Building Plot No. 759 GIDC Estate, Jhagadia
Gujarat, India |
|
Particulars of the present modification |
Limit increased from Rs. 91.200 millions to Rs. 270.000 millions other
terms and conditions as per agreement. |
FIXED ASSTES:
· Land
· Factory Building
· Plants And Machinery
· Storage Tanks
· Electrical Installations
· Tools And Equipments
· Generator
· Air Conditioners
· Refrigerators
· Computers
· Type Writer.
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.39.39 |
|
UK Pound |
1 |
Rs.78.02 |
|
Euro |
1 |
Rs.56.77 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|