MIRA
INFORM REPORT
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Report Date : |
03.07.2007 |
IDENTIFICATION DETAILS
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Name : |
VARUN INDUSTRIES |
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Registered Office : |
F – 544, MIA, Phase 2, Basni, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
2004 |
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Com. Reg. No.: |
08782655741 |
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PAN No.: [Permanent
Account No.] |
AFMPJ8518B |
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Legal Form : |
Sole Proprietory Concern |
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Line of Business : |
Manufacturer and Exporters of Handicrafts and Textile |
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 2008 |
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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 concern having satisfactory track
records. Proprietor is reported as experienced and respectable businessman.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
F – 544, MIA, Phase 2, Basni, |
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Tel. No.: |
91-291-3250605 |
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Mobile No.: |
91-9414135079 / 9352651052 |
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Fax No.: |
91-291-3250605 |
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E-Mail : |
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Website : |
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Area : |
2294sq.mtrs, Factory - 1600sq.yds |
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Location : |
Owned |
SOLE PROPRIETOR
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Name : |
Mr. Varun Jain |
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Designation : |
Proprietor |
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Address : |
D – 94, Kamla Nehru Nagar, |
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Mobile No.: |
91-9414135079 |
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Date of Birth/Age : |
25 Years |
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Qualification : |
Graduate |
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Experience : |
7 Years |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporters of Handicrafts and Textile |
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Products : |
Bandhani Sarees,
Printed Sarees, Indian Sarees, Curtains, Cushion Cover, Handloom Curtains, Bed
Spreads, Bed Cover, Pillow Cases, Duvet Cover, Wall Linens, Table Cloth,
Placement, Napkins, Runners, Throws, Shawls, Stoles, Sarongs, Face Towels,
Bath Robes, Hammocks, Wine Bottle Bags, Shopping Bags, Textile Home
Furnishing, Readymade Garments, Skirts, Salwar Suits, Tops, Juties &
Handicraft, Chaniya Choli, Pareos, Ladies Suits & Tops etc. |
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Exports : |
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Products : |
Handicrafts |
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Countries : |
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Terms : |
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Selling : |
L/C, Credit (30 days), Cash |
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Purchasing : |
L/C, Cash, Sight, Credit (30 days) |
Production Status
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Products |
Unit |
Actual
Production |
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Fabric Print |
Mtr. |
4000 |
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Dyeing Fabric |
Mtr. |
10000 |
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Other |
Mtr. |
5000 |
GENERAL INFORMATION
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Customers : |
Retailers |
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No. of Employees : |
40 (Office: 5; Factory: 35) |
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Bankers : |
v
HDFC Bank v
Oriental Bank of Commerce |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Surindermal Daga and Company Chartered Accountants |
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Address : |
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Tel No.: |
91-291-2622525 |
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Associates /
Subsidiaries: |
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Name: |
Alok Sarees |
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Address: |
Mahaveer Cloth Market, |
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Line of
Business: |
Manufacturing of Textiles |
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Name: |
Daga Exports |
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Address: |
F – 544, MIA, Phase 2, Basni, |
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Line of
Business: |
Manufacturing of Textiles |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 0.242 million |
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Borrowed : |
- |
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Total : |
Rs. 0.242 million |
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 |
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PROPRIETORS FUNDS |
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1] Proprietors Capital |
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0.242 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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0.260 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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0.502 |
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LOAN FUNDS |
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1] Secured Loans |
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0.028 |
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2] Unsecured Loans |
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0.700 |
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TOTAL BORROWING |
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0.727 |
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DEFERRED TAX LIABILITIES |
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0.000 |
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TOTAL |
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1.230 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.142 |
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Capital work-in-progress |
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0.000 |
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INVESTMENT |
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0.353 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.606 |
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Sundry Debtors |
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1.051 |
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Cash & Bank Balances |
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0.094 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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0.000 |
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Total
Current Assets |
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1.751 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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1.016 |
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Provisions |
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0.000 |
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Total
Current Liabilities |
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1.016 |
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Net Current Assets |
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0.735 |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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1.230 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
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Sales Turnover |
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3.031 |
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Other Income |
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0.000 |
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Total Income |
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3.031 |
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Profit/(Loss) Before Tax |
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0.151 |
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Provision for Taxation |
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0.000 |
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Profit/(Loss) After Tax |
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0.151 |
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Expenditures : |
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Purchases |
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2.753 |
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Telephone Expenses |
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0.023 |
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Salary |
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0.020 |
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Legal Expenses |
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0.004 |
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Bank Commission |
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0.004 |
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Interest |
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0.039 |
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Depreciation |
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0.044 |
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Other Expenditure |
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0.007 |
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Total Expenditure |
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2.880 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
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PAT / Total Income |
(%) |
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4.98 |
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Net Profit Margin (PBT/Sales) |
(%) |
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4.98 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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7.98 |
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Return on Investment (ROI) (PBT/Networth) |
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0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.47 |
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Current Ratio (Current Asset/Current Liability) |
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1.72 |
Expected Sales (2007-08): Rs.15.000 millions
LOCAL AGENCY FURTHER INFORMATION
Company Details:
Subject is a manufacturer and
exporter dealing in premium range of Bandhani sarees, printed sarees, Indian sarees, curtains, cushion cover, handloom
curtains, bed spreads, bed cover, pillow cases, duvet cover, wall linens, table
cloth, placement, napkins, runners, throws, shawls, stoles, sarongs, face
towels, bath robes, hammocks, wine bottle bags, shopping bags, textile home
furnishing, readymade garments, skirts, Salwar suits, tops, Juties &
handicraft, Chaniya Choli pareos, ladies suits & tops etc. They
offer exquisite collection of garments & home furnishing items presenting the
style statement with a perfect blend of quality. Their ranges of products are
rich in quality and durable in nature. The awesome variety is available at
highly competitive prices. They are specialists in unique embroidery of Indian
culture and feel proud to be a part of this great tradition. The company is
doing deep rooted business in domestic market and their international business
is also growing at a faster pace.
Quality Policy
They are very strict regarding the quality status of their products. To make
sure that each piece manufactured in their factory should be perfect and
without any defects, they follow stringent quality control procedures. At every
phase, products are thoroughly checked and after getting expert's approval they
are finally delivered to the market. The fabrics, threads, buttons, decorative
ornaments and other raw-materials are collected from highly reputed suppliers
and that too at highly reasonable prices. Economical cost of production leads
to controlled prices of the final products.
Special Features of the
Products
Their range of skirts, pareos,
curtains, cushion covers, bed covers, Indian sarees, ladies suits & tops,
Chaniya Choli, etc. are best in the industry. There are certain special
features that can define their products, like :
- Designer collection
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Wonderful prints
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Fancy patterns
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Subtle Hand Embroidery
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Combination of western & Indian style
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Reliable quality
Positive Traits
of the Company
They, as a organization are strongly bonded and work in team spirits. There are
various points, which provide them a competitive edge over their competitors,
like:
- Rich manufacturing set-up
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Latest machineries
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Effective quality control system
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Skilled team of designers
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Laborious workers
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Reasonable prices of products
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On-time delivery of the consignments
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Ready stock
They are committed to achieve their set goals of success &
recognition and meet the exact demands of their customers by providing them
excellent quality of skirts, pareos,
curtains, cushion covers, bed covers, sarees, ladies suits & tops and
Chaniya Choli
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 40.66 |
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1 |
Rs. 81.70 |
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Euro |
1 |
Rs. 55.05 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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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 |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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