MIRA INFORM REPORT

 

 

Report Date :

03.07.2007

 

IDENTIFICATION DETAILS

 

Name :

BALAJI FILAMENTS LIMITED

 

 

Registered Office :

16, Dady Seth Agiyari Lane, Bandrawala Building, 1st Floor, Mumbai – 400 002, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

01.03.1990

 

 

Com. Reg. No.:

11-055616

 

 

CIN No.:

[Company Identification No.]

L17100MH1990PLC055616

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB11478F

 

 

PAN No.:

[Permanent Account No.]

AAACB2550M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers and exporters of yarns like polyester textured and twisted yarns etc.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 260000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as 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

 

Registered Office :

16, Dady Seth Agiyari Lane, Bandrawala Building, 1st Floor, Mumbai – 400 002, Maharashtra, India.

Tel. No.:

91-22-22405154

Fax No.:

91-22-23803667

E-Mail :

bfl@vsnl.in

 

 

Corporate Office :

110 Unique House, Chakala, Andheri, Mumbai – 400059, Maharashtra, India

Tel. No.:

91-22-56949423

Fax No.:

91-22-28227621

 

 

Factory 1 :

Spinning Division, 202/2 Hingraj Industrail Estate, Dabhel, Daman – 396 210, India

Tel. No.:

91-260-2242355

Fax No.:

91-22-23803667

 

 

DIRECTORS

 

Name :

Mr. Agarwal Nand Kishore

Designation :

Director

Address :

401, Vasundhara Apartment, Andheri Kurla Road, Chakala, Andheri (East), Mumbai – 400 099.

Date of Birth/Age :

07.12.1957

Date of Appointment :

17.10.1994

 

 

Name :

Mr. Agarwal Kanaiyalal

Designation :

Managing Director

Address :

B/ 17, Pranjape Land, Developers, 5th Floor, Subhas Road No. 1, Vile Parle (East), Mumbai – 400 057.

Date of Birth/Age :

10.04.1957

Date of Appointment :

31.03.1995

 

 

Name :

Mr. Agarwal Prahalad Rai

Designation :

Director

Address :

C/17, Pranjape Land, Developers, 5th Floor, Subhas Road No. 1, Vile Parle (East), Mumbai – 400 057.

Date of Birth/Age :

05.08.1964

Date of Appointment :

31.03.1995

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

 

No. of Shares

Ashish N Agarwal

 

15625

Saurabh K Agarwal

 

12500

Sohil P Agarwal

 

13750

Mayank N Agarwal

 

12500

Ashita N Agarwal

 

13750

Anuj P Agarwal

 

13875

Sheetal K Agarwal

 

13813

Neelam P Agarwal

 

9875

Kanhaiyalal Agarwal

 

80625

Manju k Agarwal

 

10875

Nand Kishore Agarwal

 

52625

Manju N Agarwal

 

20125

Vimal Trust

 

87500

Ketholosi Angami

 

12500

Gopal B Agarwal

 

20625

Ghoom Tex (I) Private Limited

 

85563

Kolhulie Angami

 

24375

Kvovisie Angami

 

35625

Nimbu  Angami

 

87500

M. Angami

 

7500

Thopfuka Angami

 

21250

K. Nagi

 

24937

Pralhu Nagi

 

20625

Gaurdhanlal Agarwal

 

10250

Bajarangal Agarwal

 

18500

Kobungo Nagi

 

10000

Kevi nagi

 

13750

Kollhuolei Nagi

 

5000

Nisevoto Khate

 

14375

Neinguphu Nagi

 

10000

Nisakou Angami

 

5000

Nibu Nagi

 

5000

Roko Nagi

 

20000

Solie Angami

 

20625

Sangeeta Devi Agarwal

 

7500

Sarswati Devi Agarwal

 

7375

Ranglal Agarwal

 

8875

Pushpa R Agarwal

 

8750

Veena S Agarwal

 

13125

Sita Ram Agarwal HUF

 

6000

Panchsheel Polyster Private Limited

 

125000

Nand Kishore Agarwal HUF

 

13750

Purni Devi Bazari

 

7500

Nand Kishore Arora

 

12750

Mahavir Prasad Agarwal

 

14000

Durga Prasad Garwa

 

5000

Mangu Khan

 

5000

Paras Ram Garwa

 

5000

P. R. Agarwal

 

80250

Meera N Arora

 

7500

Sampati devi Agarwal

 

12500

B. L. Bazari HUF

 

23750

Shyam Ram Aleria

 

5000

Hanuman Ram Gowla

 

5000

 

 

 

Equity Share Breakup

 

 

Category

 

Percentage of Holding

Bodies corporate

 

14.00

Directors of relatives of directors

 

49.00

Other top fifty shareholders

 

37.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and exporters of yarns like polyester textured and twisted yarns etc.

 

 

Products :

Products

ITC Code No.

Synthetic Yarn

54032000

Fabrics

54075000

Knitted Fabrics

60200000

 

PRODUCTION STATUS

 

Particulars

Unit

 

 

Installed Capacity

Looms

Nos.

 

 

12

Knitting Machines

Nos.

 

 

03

Texturising Machines

Nos.

 

 

04

Draw Winder Machine

Nos.

 

 

01

Teisting Machines

Nos.

 

 

07

 

 

GENERAL INFORMATION

 

No. of Employees :

About 200

 

 

Bankers :
  • Bank of Baroda, Borivali Branch, Mumbai – 400 066, Maharashtra, India
  • HDFC Bank
  • Oriental Bank of Commerce, Vasundhara Apartments, S. V. Road, Borivli [West], Mumbai – 400092, Maharashtra, India

 

 

Facilities :

--

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

N. M. Agarwal & Company

Chartered Accountants

Address :

198/24, Kalbadevi Road, II Floor, Mumbai – 400 002, Maharashtra, India

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2006

 

Authorised Capital :

No. of Shares

Type

Value

Amount

1750000

Equity Shares

Rs. 10/- each

Rs. 17.500 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

1350000

Equity Shares

Rs. 10/- each

Rs. 13.500 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

12.500

12.500

12.500

2] Share Application Money

5.000

0.000

0.000

3] Reserves & Surplus

47.824

41.938

35.393

NETWORTH

65.324

54.438

47.893

LOAN FUNDS

 

 

 

1] Secured Loans

51.092

55.575

58.155

2] Unsecured Loans

15.161

5.925

3.661

TOTAL BORROWING

66.253

61.500

61.816

DEFERRED TAX LIABILITIES

8.441

9.742

11.028

 

 

 

 

TOTAL

140.018

125.680

120.737

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

44.839

38.731

48.764

Capital work-in-progress

0.000

6.369

0.000

 

 

 

 

INVESTMENT

0.694

0.694

0.694

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
26.939

26.253

24.535

 

Sundry Debtors
59.139

62.804

50.565

 

Cash & Bank Balances
1.341

1.429

1.584

 

Loans & Advances
23.517

24.420

19.612

Total Current Assets
110.936

114.906

96.296

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
15.534

34.573

25.017

 

Provisions
0.917

0.447

0.000

Total Current Liabilities
16.451

35.020

25.017

Net Current Assets
94.485

79.886

71.279

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

140.018

125.680

120.737

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

283.629

298.832

326.678

Other Income

1.556

2.339

2.834

Total Income

285.185

301.171

329.512

 

 

 

 

Profit/(Loss) Before Tax

5.055

5.705

[1.268]

Provision for Taxation

[0.831]

[0.839]

[0.674]

Profit/(Loss) After Tax

5.886

6.544

[0.594]

 

 

 

 

Earnings in Foreign Currency :

 

 

 

Total Earnings

NA

28.210

17.020

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

0.000

0.000

41.391

 

Administrative Expenses

0.000

0.000

4.840

 

Raw Material Consumed

145.388

232.321

262.143

 

Purchases made for re-sale

94.535

6.161

0.000

 

Consumption of stores and spares parts

1.161

1.055

0.000

 

Increase/(Decrease) in Finished Goods

[2.666]

1.455

0.000

 

Salaries, Wages, Bonus, etc.

2.683

2.290

0.000

 

Managerial Remuneration

0.216

0.216

0.000

 

Payment to Auditors

0.047

0.045

0.000

 

Interest

5.351

5.641

5.231

 

Insurance Expenses

0.306

0.264

0.000

 

Power & Fuel

9.381

11.296

0.000

 

Depreciation & Amortization

8.362

8.943

10.308

 

Other Expenditure

15.366

25.779

6.867

Total Expenditure

280.130

295.466

330.78

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
2.06

2.17

0.18

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
1.78

1.91

0.39

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
3.25

3.71

0.87

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.08

0.10

0.03

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.27

1.77

1.81

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
6.74

3.28

3.85

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Fixed Assets:

 

  • Land
  • Building
  • Plant & Machinery
  • Furniture & Fixture
  • Office Equipment
  • Computers
  • Vehicles

 

Contingent Liabilities:

 

In respect of Bank Guarantee of Rs. 2.010 Millions (Rs. 1.850 Millions) given to the Department of Electricity and Sales Tax Authorities.

 

In respect of Foreign bill purchased /discounted Rs. 3.777 Millions (Rs. 2.465 Millions)

 

In respect of guarantee given by the company to the bank for the financial assistance granted to its associate company.

 

Disputed Income Tax liability for which appeal is pending before ITAT for assessment year 1999-2000 is Rs. 4.116 Millions.

 

 

Name of the company

Balagi Filaments Limited

Presented By

Balagi Filaments Limited and Bank of Baroda, Borivali (east), Branch, Mumbai – 400 066.

1) Date and description of instrument creating the change

07.08.2000.

Hypothecation Agreement

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 55.514 Millions

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

Stock Book Debs & Machineries

4) Gist of the terms and conditions and extent and operation of the charge.

Nature of Facility Interest Margin

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Borivali (East) Branch, Mumbai – 400 066.

6) Date and brief description of instrument modifying the charge

26.03.2002

Supplemental Agreement of Hypothecation.

 

Original charge dated 07.08.200 for Rs. 55.514 Millions by the present modification charge increased from Rs. 55.514 Millions to Rs. 79.600 Millions covering following facilities.

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.

Nature of Facility

Amount (In Millions)

Term Loan I

3.800

Term Loan II

0.100

Term Loan III

9.000

Term Loan IV

22.500

Cash Credit (Stock)

15.700

Cash Credit (Book Debts)

9.500

Packing Credit Cum FBP

10.000

Import Inland Letter of Credit

4.000

Inland Bank Guarantee

2.500

LAUE

2.500

Total:

79.500

 

 

Name of the company

Balagi Filaments Limited

Presented By

Balagi Filaments Limited and Bank of Baroda, Borivali (east), Branch, Mumbai – 400 066.

1) Date and description of instrument creating the change

07.08.2000.

Memorandum of Entry relating to deposit of title deeds.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 55.514 Millions

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

Immovable Properties at Silvasa and Ankleshwar

4) Gist of the terms and conditions and extent and operation of the charge.

Nature of Facility

Amount

(In Millions)

Term Loan III Limit of

7.000

Term Loan IV Limit of

2.314

Term Loan V Limit of

10.200

Cash Credit (Stock) Limit of

11.000

Cash Credit (Book Debts) Limit of

8.000

Packing Credit Cum FBP Limit of (with sub-limit of Rs. 7.000 Millions for packing credit)

10.000

Foreign /Inland L.C (Sight/ Usance)

3.000

 Bank Guarantee Limit of

2.500

DAUE Limit of

1.500

 

 

Total:

55.514

5) Name and Address and description of the person entitled to the charge.

Bank of Baroda, Borivali (East) Branch, Mumbai – 400 066.

6) Date and brief description of instrument modifying the charge

06.05.2004

Supplemental Memorandum of Deposit of Title Deeds.

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.

Original charge dated 07.08.2000 for Rs. 55.514 Millions Modification dated 26.03.2002 charge increased form Rs. 55.514 Millions to Rs. 79.600 Millions.

 

By the present modification charge reduced from Rs. 79.600 Millions to Rs. 69.900 Millions covering following facilities

 

Nature of Facility

Limit

Cash Credit (Hypothecation of stock & Book Debts)

40.200

Sublimit: PC – cum – FBP/UFBP

(10.000)

Term Finance

20.700

Drawing against Uncleard effect

2.500

Inland L/c (Raw material DP Sight)

4.000

Inland /foreign Guarantee (Performance / Financial)

2.500

Total:

69.900

 

           

This form is for

Creation of charge

Corporate identity number of the company

L17100MH1990PLC055616

Name of the company

BALAJI FILAMENTS LIMITED

Address of the registered office or of the principal place of  business in India of the company

16, Dady Seth Agiyari Lane, Bandrawala Building, 1st Floor, Mumbai – 400 002, Maharashtra, India

Type of charge
  • Book Debts
  • Movable Property 

Particular of charge holder

Oriental Bank of Commerce

Vasundhara Apartments, S. V. Road, Borivli [West], Mumbai – 400092, Maharashtra, India

bm0287@obc.co.in

Nature of description of the instrument creating or modifying the charge

Agreement of hypothecation of assets executed on 13th September 2006 between Oriental Bank of Commerce and Balaji Filaments Limited for securing cash credit limit of Rs. 10.000 Millions. 

Date of instrument Creating the charge

13.09.2006

Amount secured by the charge

Rs. 10.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest @ 1 % p.a. less than prime lending rate of the bank, with a minimum of 10.50 % p.a. calculated on daily balance due to the bank charged on monthly rest. Panel interest @ 2% p.a. over and above the normal rate of interest with agreed rests.

 

Term of repayment

Repayment on demand

 

Margin

25 % on stocks of raw material, stock in process, finished goods, stores and spares advance payment for purchase of raw materials and book debts.

 

Extent and operation of the charge  

First charge by way of hypothecation of raw materials, stock in process, finished goods, stores and spares advance payments for purchased of raw materials, book debts and plant and machinery of spinning unit of the company situated at daman.

Short particulars of the property charged

First charge by way of hypothecation of raw materials, stock in process, finished goods, stores and spares, advances payment for purchased of raw materials, book debts and plant and machinery, of spinning unit of the company situated at daman.

 

 

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.40.58

UK Pound

1

Rs.81.89

Euro

1

Rs.55.29

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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