MIRA
INFORM REPORT
|
Report Date : |
04.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ARIHANT
INCORPORATED |
|
|
|
|
Registered Office : |
303,
South Extension Tower, Third Floor, 389 Masjid Moth, New Delhi 110 049 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
2000 |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AEOPD7333R |
|
|
|
|
Legal Form : |
Sole
Proprietorship Concern |
|
|
|
|
Line of Business : |
Importers & Suppliers of Garment Accessories, Industrial
Sewing Machines, garment accessories, Interlocking Machineries, Plastic raw
materials and Exporters of Handicrafts. |
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
15000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Usually
correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established concern having satisfactory trade. 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
|
Registered Office : |
303
South Extension Tower, Third Floor, 389 Masjid Moth, New Delhi 110 049, India |
|
Tel. No.: |
91-11-41345331,
41345333 |
|
Mobile No.: |
91-9818211799
(Mr Rajesh Dugar) / 9873164064 |
|
Fax No.: |
91-11-41345335 |
|
E-Mail : |
arihantinc@gmail.com, arihantinc@bol.net.in, dugar@bol.net.in |
|
Website : |
|
|
Area : |
750
Sq. ft. approx |
|
Location : |
Commercial
– Rented |
SOLE PROPRIETOR
|
Name : |
Mr Rajesh Banwar Dugar |
|
Designation : |
Proprietor |
|
Address : |
254,
Second Floor, Sukhdev Vihar, New Delhi |
|
Date of Birth/Age : |
30
Years |
|
Qualification : |
Graduate |
|
Experience : |
8
Years |
BUSINESS DETAILS
|
Line of Business : |
Importers & Suppliers of Garment Accessories, Industrial
Sewing Machines, garment accessories, Interlocking Machineries, Plastic raw
materials and Exporters of Handicrafts. |
|
|
|
|
Products : |
·
Industrial
Textile Machineries ·
Industrial
Sewing Machines ·
Interlinings ·
Under
Collar Felts ·
Elastics ·
Laces ·
Zippers ·
Buttons ·
Trimmings ·
Handicrafts ·
Baby Care Products |
|
|
|
|
Exports to : |
Handicrafts
items to Europe |
|
|
|
|
Imports from : |
Industrial
Garment Machineries, Sewing Machines, Garment Accessories from Korea, Taiwan,
Singapore, Germany, USA and China |
|
|
|
|
Terms : |
|
|
Selling : |
On TT / DP basis |
|
|
|
|
Purchasing : |
On Document against Payment basis |
GENERAL
INFORMATION
|
Customers : |
Wholesalers, Manufacturers of Textile
Industry |
|
|
|
|
No. of Employees : |
12 |
|
|
|
|
Bankers : |
·
Standard
Chartered Bank, New Delhi (Current A/c No. 52205401976) ·
UTI Bank Limited, South Extension
Branch, New Delhi |
|
|
|
|
Banking Relations : |
Satisfactory
|
CAPITAL STRUCTURE
|
Capital
Investment : |
|
|
Owned : |
Rs.
4.000 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs.
4.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
The
subject is a Non-Incorporated business entity and thus not obliged to file any
information on itself with any Official Authority (Registrar of Company) open
for public inspection. The above-mentioned information is obtained directly
from the subject itself but the subject could not substantiate it by providing
audited financial statements like Balance Sheet and Profit & Loss A/c.
|
Particulars |
|
31.03.2006 |
31.03.2005 |
|
Networth |
|
4.000 |
3.600 |
|
|
|
|
|
|
Turnover |
|
37.500 |
32.500 |
|
|
|
|
|
|
Profit Before Tax |
|
0.500 |
0.400 |
|
|
|
|
|
|
Profit After Tax |
|
0.400 |
0.300 |
The
subject has claimed that their projected turnover for the financial year ending
March 31, 2007 shall be to the tune of Rs.50 Million approx
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
1.07 |
1.00 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
1.27 |
1.23 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
10.00 |
9.03 |
LOCAL AGENCY
FURTHER INFORMATION
Business dealings are permissible.
The subject being a non-incorporated business
entity, is not obliged to register itself with any authorities open to public
inspection.
India's
textile sector is the second largest industry after agriculture. It provides
employment to about 35 million people. The country's current share in the world
textile trade is only 4%, according to the study done by the World Trade
Organisation. The Indian government says that it can reach to 8% share by 2010.
India
is one of the leading producers of cotton, goatskin and cashmere wool. It ranks
top in goatskin and third in cotton after China and United States. The fabric
industry in India accounts for about 20% of total exports of the country and
represent the largest net foreign exchange earner.
Size of India's Textile Industry
The
textile industry in India covers a wide gamut of activities ranging from
production of raw material like cotton, jute, silk and wool to providing high
value-added products such as fabrics and garments to consumers.
The
industry uses a wide variety of fibres ranging from natural fibres like cotton,
jute, silk and wool to man made fibres like polyester, viscose, acrylic and
multiple blends of such fibres and filament yarn.
The
textile industry plays a significant role in Indian economy by providing direct
employment to an estimated 35 million people, by contributing 4 per cent of GDP
and accounting for 35 per cent of gross export earnings. The textile sector
contributes 14 per cent of the value-addition in the manufacturing sector.
Textile
exports during the period of April-February 2003-2004 amounted to $11,698.5
million as against $11,142.2 million during the same period in the previous
year, showing an increase of around 5 per cent. Estimates say that the textile
sector might achieve about 15 to 18 per cent growth this year following
dismantling of MFA.
Exports from India to US and Europe
India's
textile exports to the US have shown a good rise of 29.5% between January and
June' 2005. Exports of pillow cases and bed sheets have registered a growth
rate of 56.2% and 56.3% respectively. Products like towel and bed spread also
figures northward by 19% and 12% respectively.
According
to Confederation of Indian Textile Industry (CITI), the rise in exports of
these home textile fabrics are due to the large-scale use of wide-width looms.
With the rise in the use of shuttleless looms and processing sector getting
fresh impetus, the production of these home textile items are able to meet both
the foreign as well as the domestic demands.
There
is a great demand of terry towel from European countries also. This is because
of the shrinking base of the European textile manufacturers. The manufacturers
are closing down their productions. A large part of the demand will be met by
India, China and Pakistan.
Vertical
Integration: India's textile industry is truly vertically integrated from raw
material to finished product, including fiber production, spinning, knitting
and weaving, and apparel manufacture. Business and cultural linkages with
neighboring countries Bangladesh, Sri Lanka, and Nepal, Thailand, Myanmar, PR
China provide a platform for sourcing from them as well.
Production
Variety: Raw material production includes cotton, silk, wool, linen and manmade
fibers such as polyester, viscose, acrylic, and polypropylene. Indian companies
have built global scale even in non-traditional areas.
Fabric
production includes fine dress fabrics, shirting, fabrics for trousers/shorts
worsted suiting , denim, fleece, jersey, flat/woolen knits, technical fabrics,
and more.
Apparel
production includes active sportswear, outerwear, foundation garments, suits,
socks, infantwear etc.
Import
duties on capital equipment are low (the majority of the capital equipment used
by the apparel industry, like sewing machines, can be imported at 5% basic
customs duty), fabrics can be imported duty-free if made up into garments and
re-exported, and import duties on fabrics and other raw materials are duty free
for export production. The apparel industry can import duty free specified
trimmings and embellishments like Fasteners, Rivets, Garment Stay, Laces,
Badges, Sewing Thread, Sequin, Tape & others for export production. India
has a structured, multi-tiered administrative, political and legal system that
would be familiar in nature to European and American investors.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.61 |
|
UK
Pound |
1 |
Rs.86.80 |
|
Euro |
1 |
Rs.57.54 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
NO |
|
--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/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 |
|