MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SAGARI LEATHERS
PRIVATE LIMITED |
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Registered Office : |
17, Kucha
Chaudhry, Opp. State Bank Building, Chandni Chowk, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.10.1985 |
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Com. Reg. No.: |
55-22229 |
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CIN No.: [Company
Identification No.] |
U74899DL1985PTC022229 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS20907F |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturers of
Leather Uppers |
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 110000 |
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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 well
established company having satisfactory track records. Profit margin is under
severe pressure. The company has incurred losses in 2002-03. Payments are
correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
17, Kucha
Chaudhry, Opp. State Bank Building, Chandni Chowk, |
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Tel. No.: |
91-11-2366279/2253069/2360783/2368035/2363931 |
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Fax No.: |
91-11-2266315 |
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E-Mail : |
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Unit 1 : |
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Tel. No.: |
91-11-2369458/2266190 |
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Unit 2 : |
4/73 B, |
DIRECTORS
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Name : |
Mr. Prasenjit
Kumar Gupta |
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Designation : |
Director |
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Address: |
71, Pandav Nagar,
Shahganj, |
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Date of
Birth/Age : |
28.09.1966 |
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Date of
Appointment : |
28.09.2002 |
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Name : |
Mr. Kanwardip
Singh Gujral |
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Designation : |
Director |
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Address: |
Reinhardtallie –
9, |
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Date of
Birth/Age : |
28.02.1935 |
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Date of
Appointment : |
14.10.1985 |
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Name: |
Mrs. Tara BIndra |
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Designation: |
Director |
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Address: |
41, Jor Bagh, |
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Date of
Birth/Age : |
11.04.1944 |
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Date of
Appointment : |
08.09.1998 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Kanwardip
Singh Gujral |
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13,010 |
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Tara Bindra |
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5 |
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Total |
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13,015 |
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Category |
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Percentage of
Holding |
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Directors or
relatives of directors |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
Leather Uppers |
GENERAL INFORMATION
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Suppliers : |
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Bankers : |
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Facilities : |
Canara Bank
(Packing Credit): Rs. 4.200 millions (Hypothecation
against Stock in Trade) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. S. Agarwal and
Associates Chartered
Accountants |
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Address : |
17, Kucha
Chaudhary, Chandni Chowk, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15,000 |
Equity Shares |
Rs. 100/- each |
Rs. 1.500 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
13,015 |
Equity Shares |
Rs. 100/- each |
Rs. 1.301 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.301 |
1.301 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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27.147 |
24.409 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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28.448 |
25.710 |
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LOAN FUNDS |
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1] Secured Loans |
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11.252 |
1.264 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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11.252 |
1.264 |
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DEFERRED TAX LIABILITIES |
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0.629 |
0.771 |
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TOTAL |
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40.329 |
27.745 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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32.316 |
31.505 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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37.830
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34.991 |
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Sundry Debtors |
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71.255
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1.658 |
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Cash & Bank Balances |
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11.609
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4.422 |
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Other Current Assets |
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9.841
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3.976 |
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Loans & Advances |
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5.580
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5.748 |
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Total
Current Assets |
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136.115
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50.795 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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123.789
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52.290 |
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Provisions |
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4.313
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2.267 |
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Total
Current Liabilities |
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128.102
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54.557 |
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Net Current Assets |
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8.013 |
(3.762) |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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40.329 |
27.745 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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231.365 |
340.473 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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231.365 |
340.473 |
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Profit/(Loss) Before Tax |
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4.839 |
6.582 |
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Provision for Taxation |
|
2.100 |
1.660 |
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Profit/(Loss) After Tax |
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2.739 |
4.922 |
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Total Expenditure |
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226.526 |
333.891 |
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.18 |
1.45 |
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Net Profit Margin (PBT/Sales) |
(%) |
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2.09 |
1.93 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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2.87 |
8.00 |
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Return on Investment (ROI) (PBT/Networth) |
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0.17 |
0.26 |
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Debt Equity Ratio (Total Liability/Networth) |
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4.90 |
2.17 |
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Current Ratio (Current Asset/Current Liability) |
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1.06 |
0.93 |
LOCAL AGENCY FURTHER INFORMATION
FIXED ASSETS:
- Building
- Weighing Machine
- Fire Equipment
- Type Writer
- Fans And Cooler
- Photostat Machine
- Clock
- Vehicles
- Furniture And Fixture
- Generator
- Temporary Construction
- Calculator
- Plant And Machinery
- Car
- Computer
- Air Conditioner
- Electronic
- Fax Machine
- Refrigerator
- Water Filter
- Intercom
- Cycle
- Air Compressor
- Cellular
- Leather Measurement
Machine
- EPBX And Delivery Van.
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Name of the
company |
SAGARI
LEATHERS PRIVATE LIMITED |
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Presented By |
Canara Bank, Overseas |
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1) Date and
description of instrument creating the change |
Agreement dated 16.07.1987
and registered on 30.10.1987 |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 0.800 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 |
Sole uppers
leathers and leather goods and all movable goods, work in progress etc.
standing in the factory premises of Sagari Leather Private Limited,
Belanganj, |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
1 Personal guarantee of directors 2 The loan should bear a minimum interest at the rate of 9.5 percent
and is repayable on demand and margin 30 percent. |
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5) Name and
Address and description of the person entitled to the charge. |
Canara Bank, Overseas Branch, Originally charge created in favour of Canara Bank, M G Road, Common hypothecation agreement dated 08.10.2005 Earlier modified on 01.12.1991, 12.101991, 31.10.1992, 15.04.1994,
29.06.1994, 29.02.1996, 30.08.2003 and lastly on 01.10.2001 to enhance /
reduce the charge up to Rs. 4.500 millions and last modification registered
on 15.11.2001 |
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6) Date and brief description of instrument
modifying the charge |
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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.
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i) Over new at the packing credit limit has been enhanced from Rs.
4.500 million to 7.500 million therefore total amount of charge secured from
re. 4.500to Rs. 7.500 million ii) The securities for the enhance charge of Rs. 7.500 million shall
now also includes followings. a) Hypothecation of all stocks of goods such as raw materials, goods
in process finished and manufactured goods and other items of socks in trade
and stores spares, components, machinery, vehicles, furniture and fixtures and
all other situated whether at the borrower’s factories or in transit or in
the custody of processors, warehouse agents, or others or wherever else the
same may be situated. Lying or being including any such row materials,
articles or goods, stores spares, components stock in trade and all
description of moveable property in the course of delivery to the borrower b) Hypothecation of all of the borrower’s present and future book
debts, outstanding money’s bills receivables, claims, bills, contracts, securities,
investments, cash , gold, silver, jewellery rights and assets and rights
relating to or in movable properties of whatsoever nature to which the
borrower is entitled to during the continuance of this agreement. c) Hypothecation
of plant and machinery having value as per valuation report Rs. 20.100
millions iii) interest shall now be charged at nil
percent above the ongoing prime landing other terms and conditions remained
the same |
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Corporation identity number or foreign company registrations number of
the company |
U74899DL1985PTC022229 |
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Name of the company |
SAGARI LEATHERS
PRIVATE LIMITED |
|
Address |
17,
Kucha Chaudhry, Chandni Chowk, |
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This Form is for |
Modification of charges |
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Type of Charges |
Hypothecation |
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Particular of the charge holder
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Canara Bank, Overseas Branch, |
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Nature or description of the instrument creating charge |
Agreement |
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Date of the instrument creating charge |
16.07.1987 |
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Amount Secure by the charge |
Rs. 0.800 million |
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Brief of the principal terms and conditions and extent and operation
of the charge |
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Description of the property charge whether it is a charge on |
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Modification charge Charge identification number of the charge to be modified |
Common Hypothecation Agreement |
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Date of instrument modifying the charge |
11.02.2006 |
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Particulars of the Property charged
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i)
The
adhoc packing credit limit of Rs. 3.000 millions granted by the bank to the
company an dated 08.10.2005 has since now been paid off/ adjusted. Further
bank has granted a regular packing credit limit of Rs. 10.500 millions and
total amount of charge secured against hypothecation of stocks, goods etc. as
mentioned in column No. 13( c ) and as modified from time to time has now
been enhanced up to Rs. 15.000 millions ii)
Interest
to be charged @ 7.5 % p. a. iii)
The
securities for the enhanced packing credit limit of Rs. 15.000 million shall
now also include followings a)
Hypothecation
of all stocks of goods such as raw material, goods in process, finished and
manufactured goods and other items of stock in trade and stores, spares,
components, machinery, vehicles, furniture and fixtures and all other movable
goods and properties of every description of the borrower wherever situated
whether at the borrower’s factories places of business residence ( if
applicable) go-downs or in transit or in the custody of processors warehouse
agents or others or wherever else the same may be situated. Lying or being
including any such raw material, articles or goods, stores spares components
stock in trade and all description of movable property in the course of
delivery to the borrowers b)
Hypothecation
of all of the borrower’s present and future book debts, outstanding moneys,
bills receivables, claims, bills contracts, securities, investments, cash
gold, silver, jewellery, rights and assets and rights relating to or in
movable properties of whatsoever nature to which the borrower is entitled to
during the continuance of this agreement. c)
Hypothecation
of plant and machinery having value as per valuation report Rs. 16.097
millions Other terms and conditions remained the
same.
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CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 40.75 |
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|
1 |
Rs. 81.63 |
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Euro |
1 |
Rs. 54.79 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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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 |
|
42 |
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 |
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