MIRA
INFORM REPORT
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Report Date : |
03.07.2007 |
IDENTIFICATION DETAILS
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Correct Name : |
BOORUGU KNITTS PRIVATE LIMITED |
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Registered Office : |
# 49, Bapu Bagh Colony, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
30.07.1997 |
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Com. Reg. No.: |
01-27647 |
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CIN No.: [Company
Identification No.] |
U18100AP1997PTC027647 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDB00904B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers, Exporter, Importer, Weavers, Ginners, Pressers, Packers
and Balers of Cotton, Hemp, Silk, Wool, and other Fibrous Materials. |
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 298000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having satisfactory track records. Directors
are reported as experienced and respectable businessmen. Trade relations are
fair. Business is active. Payments are usually 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 : |
# 49, Bapu Bagh Colony, |
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Tel. No.: |
91-40-27890413/ 55262620 |
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Fax No.: |
91-40-27721922 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Boorugu Uma Maheswara Rao |
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Designation : |
Managing Director |
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Address : |
1-10-2/4, Prakash Nagar, Begumpet, |
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Date of Birth/Age : |
05.08.1946 |
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Date of Appointment : |
30.07.1997 |
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Name : |
Mr. Boorugu Naresh |
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Designation : |
Executive Director |
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Address : |
1-10-2/4, Prakash Nagar, Begumpet, |
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Date of Birth/Age : |
31.10.1968 |
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Date of Appointment : |
30.07.1997 |
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Name : |
Mr. G. Sailesh |
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Designation : |
Director |
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Address : |
3-6-98, West Marredpally, Secunderabad – 500 026, |
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Date of Appointment : |
30.07.1997 |
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Name : |
Mr. P. Gautam Chand Jain |
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Designation : |
Director |
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Address : |
208, Gun Rock Enclave, Phase – II, Secunderabad, |
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Date of Appointment : |
30.07.1997 |
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Date of Ceasing : |
06.09.2003 |
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Name : |
Mr. Y V Ramesh Naidu |
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Designation : |
Director |
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Address : |
IFCI Limited, 8th Floor, Taramadal Complex, Saifabad, |
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Date of Appointment : |
17.11.2004 |
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Name : |
Mr. M. Rajasekhara Sastry |
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Designation : |
Director |
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Address : |
Pawani Estates, Flat No. 301, Road No. 2, Banjara Hills, |
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Date of Appointment : |
30.07.1997 |
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Date of Ceasing : |
26.06.2000 |
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Name : |
Mr. Ch. G. Krishna Murthy |
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Designation : |
Director |
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Address : |
Plot No. 512/ A2, Road No. 31, Jubilee Hills, |
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Date of Appointment : |
11.10.1999 |
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Date of Ceasing : |
29.12.2003 |
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Name : |
Mr. V. Udhaya Shankar |
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Designation : |
Director |
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Address : |
IFCI Limited, 8th Floor, Taramadal Complex, Saifabad, |
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Date of Appointment : |
14.09.2001 |
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Date of Ceasing : |
17.11.2004 |
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Name : |
Mr. N. Venkateshwarlu |
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Designation : |
Director |
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Address : |
203, Dhanunjaya Residency, 8-3-169/2/A, vengal Rao Nagar, |
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Date of Appointment : |
31.03.2003 |
KEY EXECUTIVES
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Name : |
Mr. P. Rajendra Babu |
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Designation : |
Company Secretary |
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Address : |
Flat No. 302, Sai Kiran Residency, Kalyan Nagar, |
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Date of Appointment : |
16.06.2003 |
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Name : |
Ms. K. Sudha Rani |
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Designation : |
Company Secretary |
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Address : |
Flat No. 403, Rolin Residency, Czech Colony, Sanathnagar, |
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Date of Birth/Age : |
19.05.1975 |
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Date of Appointment : |
01.08.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Boorugu Uma Maheswara Rao |
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100 |
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Mr. Boorugu Naresh |
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100 |
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Mr. G. Sailesh |
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100 |
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Ms. B. Renuka |
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100 |
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Mr. B. Mahesh |
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100 |
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Ms. Swathi |
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100 |
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Mr. G. Srinivas |
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100 |
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Mr. B. Suresh |
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100 |
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Names of Shareholders |
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% of Holding |
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Foreign Holdings (Foreign Institutional Investors/ Foreign Companies/ Foreign
Financial Institutions/ Non-Resident Indian/ Overseas Corporate Bodies or
Others) |
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38.39 |
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Directors and Relatives of Directors |
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61.61 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Exporter, Importer, Weavers, Ginners, Pressers, Packers
and Balers of Cotton, Hemp, Silk, Wool, and other Fibrous Materials. |
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Products with ITC Code : |
Knitted Socks - 61159200 |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Knitted Socks |
Dozen Pairs |
4.95 Lacs |
4.95 Lacs |
2.73 Lacs |
GENERAL INFORMATION
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Bankers : |
State
Bank of Commercial Branch, Ashok My Home Chambers, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sarath and Associates Chartered Accountants |
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Address : |
102, Gowri Apartments, 617, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6400000 |
Equity Shares |
Rs. 10/- each |
Rs. 64.000 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 |
64.000 |
64.000 |
64.000 |
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2] Share Application Money |
6.340 |
2.000 |
0.000 |
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3] Reserves & Surplus |
4.057 |
0.048 |
0.028 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(0.735) |
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NETWORTH |
74.397 |
66.048 |
63.293 |
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LOAN FUNDS |
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1] Secured Loans |
76.345 |
83.194 |
96.035 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
76.345 |
83.194 |
96.035 |
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TOTAL |
150.742 |
149.242 |
159.328 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
115.590 |
120.170 |
126.968 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.303 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
29.500
|
31.292 |
24.695 |
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Sundry Debtors |
8.791
|
2.060 |
11.370 |
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Cash & Bank Balances |
3.121
|
3.013 |
3.989 |
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Loans & Advances |
3.665
|
1.254 |
1.258 |
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Total
Current Assets |
45.077
|
37.619 |
41.312 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7.156
|
6.577 |
8.235 |
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Provisions |
3.117
|
2.388 |
1.205 |
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Total
Current Liabilities |
10.273
|
8.965 |
9.440 |
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Net Current Assets |
34.804
|
28.654 |
31.872 |
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MISCELLANEOUS EXPENSES |
0.348
|
0.418 |
0.185 |
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TOTAL |
150.742 |
149.242 |
159.328 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
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Sales Turnover |
77.253 |
55.711 |
78.054 |
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Other Income |
0.000 |
0.000 |
2.497 |
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Total Income |
77.253 |
55.711 |
80.551 |
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Profit/(Loss) Before Tax |
4.010 |
0.783 |
4.326 |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
4.010 |
0.783 |
4.326 |
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Earnings in Foreign Currency : |
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Export Earnings |
76.404 |
55.263 |
77.650 |
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Total Earnings |
76.404 |
55.263 |
77.650 |
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Imports : |
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Stores & Spares |
0.698 |
0.786 |
1.626 |
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Total Imports |
0.698 |
0.786 |
1.626 |
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Expenditures : |
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Administrative Expenses |
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|
21.060 |
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Raw Material Consumed |
55.769 |
40.811 |
37.334 |
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Other Expenditure |
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|
0.069 |
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Financial Expenses |
8.309 |
4.990 |
6.805 |
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Depreciation & Amortization |
9.165 |
9.127 |
10.955 |
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Total Expenditure |
73.243 |
54.928 |
76.223 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
5.19 |
1.40 |
5.37 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.19 |
1.40 |
5.37 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.49 |
0.49 |
2.57 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.01 |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.16
|
2.39 |
2.67 |
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Current Ratio (Current Asset/Current Liability) |
|
4.39
|
4.19 |
4.37 |
LOCAL AGENCY FURTHER INFORMATION
FORM 8
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Name of the company |
BOORUGU KNITTS
PRIVATE LIMITED |
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Presented
By |
Mr.
P. Rajendra Babu, Company Secretary |
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1) Date and description of instrument creating the change |
29.11.2004 1. Agreement of hypothecation of goods and assets 2. Agreement of pledge of goods and assets 3. Agreement of Loan for overall limit 4. Letter Regarding the grant of individual limits within the overall limit |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 23.000 millions |
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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 |
a) hypothecation of entire stocks of raw materials, stocks in process, finished goods, book debts, consumable stores, spares and all chargeable current assets b) second charge on all the fixed assets of the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Credit facilities extended for a period of one year, towards working capital requirements |
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5) Name and Address and description of the person entitled to the charge. |
State
Bank of Commercial
Branch, Secunderabad, |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U18100AP1997PTC027647 |
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Name of the company |
BOORUGU KNITTS PRIVATE LIMITED |
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Address |
# 49, Bapu Bagh Colony, |
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This Form is for |
Modification of charge |
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Type of Charges |
Book debts and hypothecation of all chargeable current assets |
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Particular of the charge holder |
State
Bank of Commercial
Branch, Ashok My Home Chambers, |
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Nature or description of the instrument creating charge |
Agreement of loan cum hypothecation Letter from IFCI for ceading second charge in all fixed assets of the company |
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Date of the instrument creating charge |
22.11.2006 |
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Amount Secure by the charge |
28.000 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of Interest: On Cash Credit: - (hypothecation) EPC and Adhoc Limit – upto 180 days – 2.75% below SBAR effect rate – 8.25% p.a. and beyond 180 days and upto 270 days 1.50% below SBAR effective rate 9.50% p.a. with monthly rests. On stand by line of credit – 2.75% p.a. over SBAR effective rate 13.75% p.a. with monthly rests. Term of repayement: - payable on demand Margin: - on raw material imported and indigenous, semi-finished goods, finished goods and components/ consumables/ spares – 25% On domestic receivables / foreign receivables – 40% On export packing credit – 20% |
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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 |
90124493 |
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Date of instrument modifying the charge |
22.11.2006 |
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Particulars of the present modification |
The existing limit of Rs. 23.000 millions have been increased to Rs. 28.000 millions. The hypothecation of movable and second charge on the fixed assets of the company are being continued |
The Company’s Fixed Assets of important value includes:
- Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Vehicles
As Per Web
Profile
The Company is set up on
Promoters
The Chief Promoters of the Company are:
1. Sri. Umamaheswar Rao Boorugu
2. Sri. Naresh Boorugu
3. Sri. Sailesh Gumidelli
Background of the Promoters Mr. Umamaheshwar Rao Boorugu Aged 50 years
is in the Business of Gems and Jewels for over 3 decades, he is the Managing
Partner of his ancestral business Boorugu Jewellers, a synonym in the Pearls
industry in the Twin cities of Hyderabad and Secunderabad. Boorugu Jewellers
has been in Business for more than 150 Years. He has been highly influential in
the decision making of the Group diversification plans over the past 3 decades.
He is the Managing Director of the 100 % EOU M/s. Boorugu Knitts Limited. Mr.
Naresh Boorugu Eldest son of Sri Umamaheswar Rao Boorugu, aged 30 years, is a
Bachelor of Engineering (Mechanical), he has been assisting his father in the
family owned Gems and Jewels business for the past 6 years. He is also the
Managing Partner of M/s. Boorugu Jewellers Pearl Shoppe. He has been the active
hub for the operations of M/s. Boorugu Knitts Limited. He is the Whole time
Director of the Company. Mr. Shailesh Gumidelli A Postgraduate in Management
aged 35 years. He is a Managing Partner in one of the leading Information
Technology companies in
Production
The production capacity of the unit is 4.95 Lakh Dozen Pairs
of Cotton Knitted Socks p.a. The optimum projected Capacity Utilisation shall
be 90%. The company can produce computerized designed socks with any structure
(composition). It can produce Terry, Halfterry, Plain, Rib & Links with a
very good quality to the best satisfaction.
The Company can produce 30,000 doz per month in diffrent styles and diffrent
sizes to the precision.
Machinery
Knitting Machines :
Lonati L462C4S 168 N 3 3/4" dia ( 30 Nos.)
Single Cylinder 2 feed Machine for the production of socks of pantyhose with
possibility to produce reciprocating Heel & Toe in plain, terry, sandwich
terry/Jaguard and embroidery. Can produce Boys/Ladies/Gents socks.
Lonati L462C4S 200 N 3 3/4" dia (
20 Nos.)
Single Cylinder 2 feed Machine for the production of classic socks and
pantyhose with possibility to produce reciprocating Heel & Toe in plain /
Jaguard and embroidery. Can produce Ladies/Gents socks.
Lonati BRAVO 176 N 4" dia ( 10
Nos.)
2 Feed Machine for the Production of Mens & Ladies' and pantyhose in plain fabric,
derby and links. Possibility of single welt, double welt in reciprocating Heel
& Toe or tube.
Machinery Linking
Hand Linking Machine Exacta make (
To produce point to point linking for socks to give high quality linking.
Automatic Linking Machine - Rosso (
Boarding Machines :
Automatic Ironing Machine for socks Tecnopea make (Italy) Model 20P4S3 with
Steam Chamber & Auto Clave to give better finish .( 1 No )
Boarding Machines HELIOT make (France) Model Sock.8 with pressing plate &
Steaming device to give good quality socks. ( 2 Nos.)
Other Value added Machinery
Automatic Paper Inserting Machine
Auto Heat Transfer Machine
Band Rolling Machine
Tag Stiching Machine
Laundy Machine for washing
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.40.66 |
|
|
1 |
Rs.81.70 |
|
Euro |
1 |
Rs.55.05 |
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 |
YES |
|
--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 |
|