MIRA
INFORM REPORT
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Report Date : |
12.06.2007 |
IDENTIFICATION DETAILS
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Name : |
C H JAVA AND COMPANY |
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Registered Office : |
A -206 / 214, Byculla Service Industries, D K Marg, Byculla (East),
Mumbai – 400 027, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1980 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC11271B |
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PAN No.: [Permanent
Account No.] |
AAAFC1085D |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Importer and wholesale dealers of paper and boards. |
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 90000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
This report is based on an interview with Mr. Rajesh Nichani, Marketing and Accounts Manager of the concern. Subject is a well-established trading concern in paper industry. Partners are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. Payments are reported as slow but correct. The concern can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
A-206 / 214 Byculla Service Industrial Estate, Dadaji
Konddeo Marg, Byculla (East), Mumbai, |
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Tel. No.: |
91-22-23741886 / 23741887 / 23722138 / 23722001 |
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Fax No.: |
91-22-23739021 |
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E-Mail : |
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Website : |
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Area : |
750 Sq. fts. |
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Location : |
Owned |
PARTNERS
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Name : |
Mr. Ashok Java |
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Designation : |
Managing Partner |
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Date of Birth/Age : |
55 years |
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Qualification : |
Graduate |
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Experience : |
31 years |
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Name : |
Mr. Haresh Java |
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Designation : |
Partner |
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Name : |
Mrs. C. H. Java |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Importer and wholesale dealers of paper and boards. |
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Products : |
· Art Paper / Art Card · Chromolux ·
· Imaging Papers · Autocopy · Folding Box Board · Solid Bleached Board · Packaging Media · Cultural Grades · Industrial Grades · Films for LABELS STOCKS · Films for TAMPER EVIDENT Labels & Tags · Films for BOARD LAMINATES · Films for DIGITAL Printing |
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Agencies Held : |
˜ ITC Limited (Tribeni Tissue Division) ˜
Zanders Feinpapiere Ag, ˜
Iggesund ˜
˜
Paperties ˜
Cham Paper Group, |
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Imports from: |
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Terms : |
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Selling : |
Cash or Credit (60 – 90 – 120 days) |
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Purchasing : |
Cash or Credit (30 days – 45 days – 90 days) |
GENERAL INFORMATION
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Customers : |
˜ Reliance Industries Limited, Mumbai ˜ S. K. Paper Company, Mumbai ˜ Parle Products Limited, Mumbai ˜ Bajaj Auto Limited, Pune |
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No. of Employees : |
10 |
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Bankers : |
The Saraswat Co-operative Bank Limited Mercantile Chambers, Ballard Estate, Mumbai - 400 038, |
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Facilities : |
The concern enjoys facility of Rs. 28.00 millions from its
banker |
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Banking Relations
: |
Satisfactory |
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Memberships : |
˜ BMPA- Bombay Master Printers Association, Mumbai ˜ Paper Traders Association |
CAPITAL STRUCTURE
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Capital Investment : (Estimated) |
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Owned : |
Rs. 20.995 millions |
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Borrowed : |
- |
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Total : |
Rs. 20.995 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Partners Capital |
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20.995 |
20.751 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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20.995 |
20.751 |
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LOAN FUNDS |
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1] Secured Loans |
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3.380 |
3.103 |
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2] Unsecured Loans |
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83.831 |
77.551 |
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TOTAL BORROWING |
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87.211 |
80.654 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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108.206 |
101.405 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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2.709 |
1.972 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.010 |
0.510 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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26.489 |
24.261 |
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Sundry Debtors |
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96.011 |
100.941 |
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Cash & Bank Balances |
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2.776 |
1.498 |
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Other Current Assets |
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65.670 |
50.399 |
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Loans & Advances |
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0.180 |
0.214 |
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Total
Current Assets |
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191.126 |
177.313 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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85.360 |
78.335 |
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Provisions |
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0.279 |
0.055 |
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Total
Current Liabilities |
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85.639 |
78.390 |
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Net Current Assets |
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105.487 |
98.923 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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108.206 |
101.405 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 (Estimated) |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
800.000 |
790.923 |
632.653 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
NA |
790.923 |
632.653 |
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Profit/(Loss) Before Tax |
NA |
11.464 |
8.840 |
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Provision for Taxation |
NA |
0.228 |
0.423 |
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Profit/(Loss) After Tax |
NA |
11.236 |
8.417 |
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Expenditures : |
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Payment to Auditors |
NA |
0.049 |
0.055 |
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Insurance Expenses |
NA |
0.123 |
0.099 |
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Depreciation & Amortization |
NA |
0.560 |
0.631 |
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Other Expenditure |
NA |
778.727 |
623.028 |
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Total Expenditure |
NA |
779.459 |
623.813 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.42 |
1.33 |
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Net Profit Margin (PBT/Sales) |
(%) |
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1.45 |
1.40 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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5.91 |
4.93 |
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Return on Investment (ROI) (PBT/Networth) |
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0.55 |
0.43 |
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Debt Equity Ratio (Total Liability/Networth) |
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8.23 |
7.66 |
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Current Ratio (Current Asset/Current Liability) |
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2.23 |
2.26 |
LOCAL AGENCY FURTHER INFORMATION
Business
The concern acts as importers and wholesale dealers of paper and boards.
It is a service oriented organization. It is one of
Subject markets a diverse product line of paper and paperboard to facilitate the ever changing climate of the printing industry. It has solid relationships with major Indian paper and paperboard mills, and end users.
The concerns main customers include wholesalers and retailers.
The concern is in trade terms with:
˜
Trade Air Paper & Allied Paper Products
Limited,
˜
Andhra Pradesh Paper Mills Limited,
˜ Zanders Feinpapiere Ag,
˜
D-S1439
˜
Iggesund
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 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. 40.73 |
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1 |
Rs. 80.43 |
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Euro |
1 |
Rs. 54.44 |
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 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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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 |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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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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