MIRA
INFORM REPORT
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Report Date : |
09.06.2007 |
IDENTIFICATION DETAILS
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Name : |
CELEBRATION APPARELS LIMITED |
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Registered Office : |
New Hind House, N M Marg, Ballard Estate, Mumbai-400001, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.09.2004 |
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Com. Reg. No.: |
11-148646 |
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CIN No.: [Company
Identification No.] |
U18100MH2004PLC148646 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRC05408E |
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Legal Form : |
Closely held public limited liability company |
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Line of Business : |
Subject is the shirt plant of Raymond Limited, |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 46000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. Company’s
profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Factory : |
New Hind House, N M Marg, Ballard Estate, Mumbai-400001, |
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Tel. No.: |
91-22-22668000/ 2686000 |
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Telefax No.: |
91-22-22620052 |
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E-Mail : |
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Head Office : |
No.56 B , Hosekote Industrial Area, Chokkahalli, Hosekote Taluk,
Bangalore-562114, |
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Tel. No.: |
91-8111-7971476 |
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Fax No.: |
91-8111-7971477 |
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E-Mail : |
DIRECTORS
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Name : |
Dr. Vijaypat Singhania |
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Designation : |
Group Chairman |
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Name : |
Mr. Gautam Hari Singhania |
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Designation : |
Group Chief Executive Officer |
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Name : |
Mr. P K Bhandari |
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Designation : |
Group President |
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Name : |
Mr. Vijay Kumar Bhartia |
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Designation : |
Director |
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Address : |
305/306, Mittal Fark, |
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Date of Birth/Age : |
18.07.1941 |
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Date of Appointment : |
16.09.2004 |
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Name : |
Mr. Ashish Grover |
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Designation : |
Director |
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Address : |
115, Prestige |
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Date of Birth/Age : |
01.11.1971 |
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Date of Appointment : |
16.09.2004 |
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Name : |
Mr. Hariharan Sunder |
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Designation : |
Director |
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Address : |
Bunglow No.15, |
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Date of Birth/Age : |
26.07.1959 |
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Date of Appointment : |
21.01.2005 |
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Name : |
Mr. Suryakant K Gupta |
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Designation : |
Director |
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Address : |
Bunglow No.3, |
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Date of Birth/Age : |
11.02.1951 |
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Date of Appointment : |
01.03.2005 |
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Name : |
Mr. Satyendra Kumar Singhal |
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Designation : |
Director |
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Address : |
Jekegram, Bunglow No.4, |
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Date of Birth/Age : |
05.06.1951 |
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Date of Appointment : |
14.06.2006 |
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Other Directorships : |
v
Raymond Fedora Private Limited v
Silver Spark Apparel Limited v
Everblue Apparel Limited |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Raymond Limited |
2660000 |
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Mr. Hari G Singhania |
24975 |
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Mr. K Pradeep Bhandari |
24975 |
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Mr. Vijay Kumar Bhartia |
10 |
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Mr. Ashish Grover |
10 |
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Mr. Hariharan Sunder |
10 |
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Mr. Ramalingam Narayanan |
10 |
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Mr. Chetan S Mody (Nominee of
Raymond Limited) |
10 |
As on 31.03.2006
Bodies Corporate : 100.00%
BUSINESS DETAILS
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Line of Business : |
Subject is the shirt plant of Raymond Limited, |
GENERAL INFORMATION
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Suppliers : |
Mafatlal Mills, Chennai Madura Coats Limited, |
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Customers : |
Colour Plus, |
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No. of Employees : |
1300 |
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Bankers : |
v
UTI Bank, v
The Hongkong and Shanghai Banking Corporation Limited,
52/60, |
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Facilities : |
Secured Loans
(Rs. In millions) :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mr. Venkatesh Subramanian Chartered Accountants Auditor’s firm : Dalal & Shah |
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Address : |
The Regency, Office No.11, 1st Floor, |
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Holding Company : |
Raymond Limited |
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Associates/Subsidiaries : |
v
Colour Plus Fashions, v
J K Talabot Limited, IndiaRaymond Europe/ v
J K ( v
Raymond Apparel, v
Silver Spark Apparel Limited v
Everblue Apparel Limited v
Pashmina Holding Limited v
Hindustan Files Limited v
Colourplus Fashions Limited v
Plugin Sales Limited v
Scissors Engineering Products Limited v
Ring Plus Aqua Limited v
J K Talabot Limited v
Jaykayorg AG v
J K ( v
Regency Textiles Portugursa Limited v
Textiles Regency, Soried Limitada v
R&A Logistics Inc. v
JK Investo Trace ( v
P T Jaykay Files v
J K Helene Cuitis Limited v
J K Ansell Limited v
J K Investors ( v
Radha Krishna Films Limited v
Raymond Zambaiti Private Limited v
Raymond Fedora Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000 |
Equity shares |
Rs.10/- each |
Rs.30.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2710000 |
Equity Shares |
Rs.10/- each |
Rs.27.100
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] Share Capital |
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27.100 |
0.500 |
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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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(15.477) |
(0.349) |
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NETWORTH |
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11.623 |
0.151 |
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LOAN FUNDS |
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1] Secured Loans |
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100.679 |
33.803 |
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2] Unsecured Loans |
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53.908 |
43.588 |
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TOTAL BORROWING |
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154.587 |
77.391 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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166.210 |
77.542 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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156.670 |
5.585 |
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Capital work-in-progress |
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1.914 |
72.736 |
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INVESTMENT |
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0.000 |
0.000 |
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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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5.124 |
0.000 |
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Sundry Debtors |
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1.337 |
0.000 |
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Cash & Bank Balances |
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1.158 |
0.950 |
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Other Current Assets |
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4.717 |
0.074 |
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Loans & Advances |
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2.551 |
1.188 |
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Total
Current Assets |
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14.887 |
2.212 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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6.447 |
2.983 |
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Provisions |
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0.814 |
0.008 |
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Total
Current Liabilities |
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7.261 |
2.991 |
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Net Current Assets |
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7.626 |
(0.779) |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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166.210 |
77.542 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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10.918 |
0.000 |
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Other Income |
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0.052 |
0.000 |
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Total Income |
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10.970 |
0.000 |
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Profit/(Loss) Before Tax |
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(17.905) |
(349.337) |
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Provision for Taxation |
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0.000 |
0.000 |
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Profit/(Loss) After Tax |
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(17.905) |
(349.337) |
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Total Earnings |
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0.350 |
0.000 |
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Imports : |
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Raw Materials |
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47.661 |
16.826 |
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Stores & Spares |
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0.867 |
0.000 |
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Others |
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1.426 |
0.000 |
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Total Imports |
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49.954 |
16.826 |
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Expenditures : |
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Raw Material Consumed |
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1.843 |
0.000 |
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Purchases made for re-sale |
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1.791 |
0.000 |
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Salaries, Wages, Bonus, etc. |
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9.267 |
0.000 |
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Payment to Auditors |
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0.110 |
11.020 |
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Interest |
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1.580 |
0.000 |
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Insurance Expenses |
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0.308 |
0.000 |
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Power & Fuel |
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2.761 |
0.000 |
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Other Expenditure |
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11.215 |
338.317 |
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Total Expenditure |
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28.875 |
349.337 |
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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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(163.22) |
0.00 |
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Net Profit Margin (PBT/Sales) |
(%) |
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(163.22) |
0.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(10.44) |
(4480.40) |
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Return on Investment (ROI) (PBT/Networth) |
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(1.54) |
(2313.49) |
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Debt Equity Ratio (Total Liability/Networth) |
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13.92 |
532.33 |
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Current Ratio (Current Asset/Current Liability) |
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2.05 |
0.74 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Name of the company |
CELEBRATIONS
APPAREL LIMITED |
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Presented By |
Mr. H Sunder, Director |
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1) Date and description of instrument creating the change |
Deed of hypothecation dated 07.11.2005executed by Celebrations Apparel Limited (hereinafter referred to as the company in favour of the bank) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Loan and/or any other banking facilities of Rs.108.600 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 |
Hypothecation of all the plant , machinery and other movables |
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4) Gist of the terms and conditions and extent and operation of the charge. |
In consideration of loan and /or any other banking facilities (the said facilities) sanctioned/ to be sanctioned by the bank to the company, the company has hypothecated and charged to the bank by way of first charge, the assets mentioned term No.3 above to secure the repayment for the said facilities or the balances thereof for the time being outstanding in accordance with the terms of the said facilities with interest at the rate therein provided and for the payment of all sums of money payable by the company to the bank and all costs, charges and expenses incurred by the bank for the preservation, protection and defence and perfection of this security or for attempted or actual realization thereof tna dfor due repayment and discharge of all present and future indebtedness and securities of the company to the bank of any kind. The company declares that all the hypothecated goods are the unencumbered, the absolute and disposable property of the company and the company shall not without the Bank’s property of the company and the company shall not without the Bank’s prior permission create any mortgage, charge, lien or encumbrance of any kind upon or over the same. The company shall whenever required by the bank, give to the bank full particulars of tall the assets of the company and of the hypothecated goods and shall at all times allow the bank or the authorized agent of the bank inspection of the hypothecated goods and all records of the company in reference thereto. The company shall at all time during the continuance of this security keep and maintain such margin of security in favour of the bank as the bank may require from time to time. The company shall pay all rents, taxes and other outgoings in respect of the immovable property in or on which the hypothecated goods may for the time being be lying and shall keep such property insured against loss or damage by fire and also against such other risks as the bank may require. The company shall at its expense keep the hypothecated goods in marketable and good condition. The company hereby declares and assures the bank that the plant and machinery constituting being a part of the hypothecated goods are moveable and constitute moveable property. This security shall be continuing security for the balance for he aforesaid facilities from time to time due to the bank. |
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5) Name and Address and description of the person entitled to the charge. |
The Hongkong and Shanghai Banking Corporation Limited 52/60, |
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6) Date and brief description of instrument modifying the charge |
Not applicable |
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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. |
Not applicable |
Fixed Assets :
v Land
v Building
v Plant and Machinery
v Electrical Equipments
v Office Equipments
v Vehicle
v Technical Know how
Contingent Liabilities :
Guarantees given by the Company’s bankers to
Government Authorities for purchse under concessional duty/exemption scheme :
Rs.7.199 millions
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.40.97 |
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1 |
Rs.80.73 |
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Euro |
1 |
Rs.54.56 |
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 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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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 |
YES |
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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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34 |
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 |
|
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 |
|
<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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