MIRA
INFORM REPORT
|
Report Date : |
02.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
KARAN LATEX PRIVATE LIMITED |
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Registered Office : |
13/386, Civil Lines, Kanpur-208001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28.04.1993 |
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Com. Reg. No.: |
20-15337 |
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CIN No.: [Company
Identification No.] |
U18101UP1993PLC015337 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPK00246B |
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Legal Form : |
Private Limited
Liability Company. |
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Line of Business : |
Manufacturer of
Leather Cloth and Kapok and other Leather Goods. |
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 32000 |
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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. 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 : |
13/386, Civil Lines, Kanpur-208001, |
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Tel. No.: |
91-512-2537011 |
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Fax No.: |
91-512-2537569 |
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E-Mail : |
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Website : |
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Area : |
2500 Sq, ft |
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Location : |
Owned |
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Factory 1 : |
Panki Industrial
Area, |
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Area : |
15000 Sq, ft |
DIRECTORS
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Name : |
Mr. Deep Kumar
Garg |
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Designation : |
Director |
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Address : |
7/ 187, B Swaroop Nagar, |
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Date of Birth/Age : |
01.05.1958 |
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Qualification : |
Graduate |
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Date of Appointment: |
28.04.1993 |
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Name : |
Mr. Bharat Garg |
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Designation : |
Director |
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Address : |
15/79, Civil Lines, |
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Date of Birth/Age : |
02.09.1972 |
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Qualification : |
Graduate |
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Date of Appointment: |
28.04.1993 |
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Name : |
Mr. Santosh Kumar
Srivastava |
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Designation : |
Director |
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Address : |
D- 489, Defence Colony, |
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Date of Birth/Age : |
24.07.1954 |
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Qualification : |
Graduate |
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Date of Appointment: |
25.05.2002 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
|
No. of Shares |
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Directors and
their relatives: |
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Mr. Bharat Garg |
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35000 |
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Mr. Deep Kumar Garg |
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38000 |
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Deep Kumar Sandhya HUF |
|
4000 |
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Mrs. Rani Kusua Garg |
|
3500 |
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Mr. Narain Padaa Garg |
|
4000 |
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Mrs. Sandhya Garg |
|
5200 |
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Total (A) |
|
90500 |
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Bodies
Corporate: |
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|
|
Karan Holding Private Limited |
|
300 |
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Kay Aar Fastner Limited |
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10000 |
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Kuabh Finance Limited |
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20000 |
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M B Wire Products Private Limited |
|
8000 |
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Saral Vanijya Private Limited |
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14000 |
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Smart Rubber Private Limited |
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36000 |
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Total (B) |
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88300 |
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Other Top 50
Shareholders: |
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Hex Garg |
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2950 |
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Mool Narayan Malhotra |
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3200 |
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Rashmi Jha |
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3150 |
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Shalini Garg |
|
510 |
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Savinay Kumar Jha, HUF |
|
1870 |
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Sapna Garg |
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2880 |
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Savinay Jha |
|
2050 |
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Total (C) |
|
21200 |
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GRAND TOTAL
[A+B+C] |
|
200000 |
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Category |
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Percentage of
Holding |
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Bodies corporate |
|
44.10 |
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Directors or relatives of directors |
|
45.30 |
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Other top fifty (50) shareholders (other than listed above) |
|
10.60 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Leather Cloth and Kapok and other Leather Goods. |
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Products : |
Leather Cloths
and Machinery |
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Exports to : |
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Imports from: |
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Terms : |
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Selling : |
L/C & Cash
(60 days) |
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Purchasing : |
L/C & Cash
(60 to 90 days) |
PRODUCTION STATUS
|
Products |
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Unit |
Actual
Production |
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Leather Textile & other Cloth |
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Mtrs. |
23072599 |
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Leather Cloth |
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Pcs |
114254 |
GENERAL INFORMATION
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Customers : |
Wholesalers and
Retailers |
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No. of Employees : |
125 |
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Bankers : |
State Bank of |
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Facilities : |
Credit Limit –
Rs. 2.500 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Prakash and
Santosh Chartered
Accountants |
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Address : |
Flat No. 8, Upper
Floor, Roland Complex, |
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PAN No.: |
AABFP0422C |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3,00,000 |
Equity Shares |
Rs. 10.00 each |
Rs.3.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,00,000 |
Equity Shares |
Rs. 10.00 each |
Rs.2.000 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 |
2.000 |
2.000 |
2.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6.128 |
5.057 |
2.487 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8.128 |
7.057 |
4.487 |
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LOAN FUNDS |
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1] Secured Loans |
1.442 |
2.988 |
3.612 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
1.442 |
2.988 |
3.612 |
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DEFERRED TAX LIABILITIES |
0.092 |
0.045 |
0.070 |
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PROFIT AND LOSS ACCOUNT |
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|
2.123 |
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TOTAL |
9.662 |
10.090 |
10.292 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3.487 |
3.745 |
1.789 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
5.003 |
5.226 |
1.620 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
9.664
|
6.040 |
3.019 |
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Sundry Debtors |
6.158
|
7.973 |
7.479 |
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Cash & Bank Balances |
4.451
|
4.928 |
3.939 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.159
|
1.172 |
1.495 |
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Total
Current Assets |
23.432
|
20.113 |
15.932 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
21.679
|
18.819 |
9.049 |
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Provisions |
0.581
|
0.175 |
0.000 |
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Total
Current Liabilities |
22.260
|
18.994 |
9.049 |
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Net Current Assets |
1.172
|
1.119 |
6.883 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
9.662 |
10.090 |
10.292 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
94.546 |
73.040 |
34.671 |
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Other Income |
3.131 |
3.419 |
0.004 |
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Total Income |
97.677 |
76.459 |
34.675 |
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Profit/(Loss) Before Tax |
1.542 |
0.602 |
0.581 |
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Provision for Taxation |
0.471 |
0.155 |
0.100 |
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Profit/(Loss) After Tax |
1.071 |
0.447 |
0.481 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.000 |
0.000 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
0.000 |
0.000 |
0.000 |
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Imports : |
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Raw Materials |
0.000 |
0.000 |
0.000 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
0.000 |
0.000 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
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Administrative Expenses |
0.000 |
0.000 |
0.000 |
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Raw Material Consumed |
66.098 |
49.795 |
24.565 |
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|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
1.449 |
0.935 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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|
Salaries, Wages, Bonus, etc. |
13.993 |
12.080 |
0.333 |
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Managerial Remuneration |
0.000 |
0.000 |
0.000 |
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Payment to Auditors |
0.017 |
0.017 |
0.006 |
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Interest |
0.704 |
0.782 |
0.609 |
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Insurance Expenses |
1.380 |
1.361 |
0.886 |
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Power & Fuel |
0.418 |
0.373 |
0.153 |
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Depreciation & Amortization |
0.844 |
0.594 |
0.390 |
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Other Expenditure |
11.232 |
9.920 |
7.152 |
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Total Expenditure |
96.135 |
75.857 |
34.094 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.10
|
0.58 |
1.39 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.63
|
0.82 |
1.68 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.73
|
2.52 |
3.28 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.09 |
0.13 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.92
|
3.11 |
2.82 |
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Current Ratio (Current Asset/Current Liability) |
|
1.05
|
1.06 |
1.76 |
LOCAL AGENCY FURTHER INFORMATION
The company is
in trade terms with:
v
Smart
Rubber Private Limited
v
M. B.
Wire Products Limited,
v
Kay Aar
Fastners Private Limited
v
Surat Vanijya
Private Limited
Fixed Assets
v Computer
v Office equipments
v Motor Car
v Machinery
v Cycle
v Electric Equipment
v Furniture and Fixture
v Fax machine
v Air Conditioner
|
Name of the company |
KARAN LATEX
PRIVATE LIMITED |
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Presented By |
State Bank of |
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1) Date and description of instrument creating the change |
Agreement dated
29.05.1998 and registered on 26.06.1998 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 7.700 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 |
Secured by
hypothecation of entire assets including stocks of raw materials, consumables
stores, spares, stocks in process, stock in transit, finished goods,
receivables and all other current assets of the company including bills of
exchange and documents of title to goods and goods covered by L.C./B.G./Trust
Receipt, Book Debt and first charge over the entire assets of the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of 16.5 % per annum |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of |
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6) Date and brief description of instrument modifying the charge |
(i) Agreement of
Hypothecation of Goods and Assets (Form C-2) dated 20.01.2005 (ii) Letter
regarding the grant of individual Limits with in the overall limit(Form C-5)
dated 20.01.2005 |
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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. |
(i) On renewal,
the aforesaid credit facility has now been enhanced / renewed upto Rs. 11.600
millions. Therefore the total amount
of charge secured against hypothecation stocks, book debts and entire assets
of the company etc. Mentioned in column number (3) above has now been
enhanced / renewed upto Rs. 11.600 millions.
The breakup of enhanced / renewed credit facilities are as under: |
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Nature of
Facilities |
Amount (in Millions) |
Rate of Interest |
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|
Export Packing
Credit Cash Credit (BD) FBP SLC LC BG FBP (LC) Total |
2.500 @ (1.000) 3.000 1.100 1.000 1.000 3.000 116.000 |
For EPC and FBP –
As applicable to State Bank of India Exporters Gold Card Schemes at monthly
rests CC (BD) – As
applicable to SB – 4 rates units at monthly rests. |
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Interchangeability of Rs. 1.250 millions between EPC AND FBP # Interchangeability of Rs. 0.500 millions between LC and BG @Cash Credit (Book Debts) as sub Limit of FBP (II) The securities for the enhanced credit facilities aggregating to
Rs.11.60 millions shall now also include the following: (a) Hypothecation of all present and future goods, book debts, and all
other movable assets of the Borrower including documents at title to the
goods, outstanding moneys receivables including receivables by way of cash
assistance and /or cash incentives under the cash incentive Scheme or any
other scheme claims including claims by way of refund of bills, invoices,
documents, contracts, insurance policies, guarantees, engagements,
securities, investments and rights and the present machinery and other
machinery belonging to or in the possession or under the control of the
Borrower wherever lying stored and kept and whether in possession of the
borrower or of the Bank or of any third party whether in India or elsewhere
throughout the world (including all such goods, other movable assets as may
be in course of shipment transit or delivery) (b) Hypothecation of entire plant and machinery installed in the unit. (iii) Margin on raw materials, finished goods, LC, BG – 25% Stocks in process -50% book
debts / receivables Domestic (Cover – 60 days) -40% and Export Receivables –
Nil |
|||
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. 40.54 |
|
|
1 |
Rs.80.21 |
|
Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
37 |
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 |
|