MIRA INFORM REPORT

 

 

 

Report Date :

16.01.2007

 

IDENTIFICATION DETAILS

 

Name :

SHINGAR LIMITED

 

 

Registered Office :

73/76, Silver Industrial Estate, Bhimpore, Daman (U.T.)

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

24.05.1994

 

 

Com. Reg. No.:

001596

 

 

CIN No.:

[Company Identification No.]

U011222DD1994PLC001596

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS18670B

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer of Cosmetics 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Maximum Credit Limit :

 

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow by average 30 days

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track records. Profit margin of the company is poor. Financial position can be regarded are fair. Payments are reported as slow by average 30 days.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.   

 

LOCATIONS

 

Registered Office/Factory :

73/76, Silver Industrial Estate, Bhimpore, Daman and Diu – 396210 Daman (U.T.)

 

 

Head Office :

"Kalptaru" 71, Nutan Laxmi Society, N. S. Road No. 9, Juhu Scheme, Mumbai - 400 049.

Tel. No.:

91-22-26286782

Fax No.:

91-22-26704166

 

DIRECTORS

 

Name :

Mr. B. D. Topiwala

Designation :

Chairman

 

 

Name :

Mr. Hemant B. Topiwala

Designation :

Managing Director

 

 

Name :

Mr. Hitesh B. Topiwala

Designation :

Director

 

 

Name :

Mr. Vinay Singh

Designation :

Director

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cosmetics 

 

 

Products :
  • Kumkum
  • Kajal
  • Nail Polish

 

PRODUCTION STATUS

 

Particulars

Unit

 

Installed Capacity

Actual Production

Cosmetics

Pkt

 

4,36,00,000

20,47,060

 

GENERAL INFORMATION

 

No. of Employees :

600

 

 

Bankers :

Bharat Overseas Bank Limited., 51, Ground Floor, Mulla House, Hutatma Chowk, M.G. Road, Fort, Mumbai - 400 023

 

 

Facilities :

SECURED LOANS

31.03.2006

Cash credit from Bank

29.950

Bill Discounting & Letter of Credit from Bank

5.430

Hire purchase credits

0.669

TOTAL

36.050

(A) The Cash Credit from bank are secured by hypothecation of Raw Material,Packing Material.Work in Progress, Receivable and Equitable Mortage of Factory Land & Building situated at Daman & Hypothecation of Plant & Machinery & Equipment and also Counter Guarantee of Third Party and Personal Guarantee of Directors.

(B) The Bill discounted with banks & Letter of credit issued by bank are secured by hypothecation of documents to the title of the goods.

(C) The Hire purchase credits are secured against Hypothecation of respective machinery and Motor vehicles (Repayable within one year Rs. 0.161 Millions  previous year Rs. Nil)

UNSECURED LOANS

 

Loans fom Bank (ICICI Bank)

0.011

Loan from Directors

24.829

Loan from others

12.896

TOTAL

37.737

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

M/s. R. U. Jain & Company.

Chartered Accountants,

Mumbai.

 

 

Associates/Subsidiaries :

Nil

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1,00,00,000

Equity Shares

Rs. 10/- Each

Rs. 100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

52,06,600

Equity Shares

Rs. 10/- Each

Rs. 52.066 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

52.066

52.066

52.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

50.102

81.047

74.800

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

102.168

133.113

126.900

LOAN FUNDS

 

 

 

1] Secured Loans

36.050

36.086

37.900

2] Unsecured Loans

37.737

35.136

22.700

TOTAL BORROWING

73.787

71.222

60.600

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

175.955

204.335

187.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

14.641

14.628

17.300

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

46.999

93.404

93.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
61.932

56.521

54.200

 

Sundry Debtors
55.140

49.651

43.200

 

Cash & Bank Balances
1.953

2.835

3.100

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
22.688

17.964

8.700

Total Current Assets
141.713

126.971

109.200

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
27.398

28.388

31.900

 

Provisions
0.000

2.280

0.500

Total Current Liabilities
27.398

30.668

32.400

Net Current Assets
114.315

96.303

76.800

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

175.955

204.335

187.500

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [including other income]

178.848

190.182

187.100

 

 

 

 

Profit/(Loss) Before Tax

(30.775)

6.925

6.600

Provision for Taxation

0.467

0.650

0.600

Profit/(Loss) After Tax

(31.242)

6.275

6.000

 

 

 

 

Export Value

NA

0.080

NA

 

 

 

 

Import Value

0.269

NA

NA

 

 

 

 

Total Expenditure

181.427

183.256

185.100

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
(17.46)

3.29

3.20

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(17.20)

3.64

3.52

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(19.68)

4.89

3.88

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.30)

0.05

0.05

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.99

0.76

0.73

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
5.17

4.14

3.37

 

LOCAL AGENCY FURTHER INFORMATION

 

OPERATIONS AND PERFORMANCE DURING THE YEAR:

 

The year under review witnessed a decrease in the Production and Sales due to re-structuring in the operations in the group whereby products under One Brand being previously manufactured were no longer being manufactured as part of restructuring. The Company now has its own distribution network All India which will not only result in a better focus on the existing brands, but also increase its Margins. During the year, the Turnover of the Company decreased to Rs.174.800 Millions from Rs.190.400 Millions, Profit before depreciation, interest and loss on sale of shares was at Rs.12.376 Millions.

 

During the year, the Company has disposed off its Investment in its Associate Concern as part of the re-structuring. The loss on sell /revaluation of Shares of Rs.35.025 Millions is accounted in the year.

 

Fixed Assets

 

 

 

 

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.44.25

UK Pound

1

Rs.87.30

Euro

1

Rs.57.36

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

-

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

6

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--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

 

32

 

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

 

 

 

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