MIRA INFORM REPORT

 

 

Report Date :

14.06.2007

 

IDENTIFICATION DETAILS

 

Name :

PRAKASH CARPETS PRIVATE LIMITED

 

 

Formerly Known As :

PRAKASH INTERNATIONAL

 

 

Registered Office :

12 Dr. Ambedkar Stadium, Delhi Gate, New Delhi – 110002

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

31.08.2005

 

 

Com. Reg. No.:

55-140200

 

 

CIN No.:

[Company Identification No.]

U17226DL2005PTC140200

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELP12621A

 

 

PAN No.:

[Permanent Account No.]

AADCP6657N

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturers of wall to wall Machine Made Carpets

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

 

Maximum Credit Limit :

USD 8000

 

 

Status :

Small / New Company

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a new company which has takenover old business of proprietory concern. Trade relations are fair. Payments are unknown.

 

The company can be considered for small to mediocre business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

12 Dr. Ambedkar Stadium, Delhi Gate, New Delhi – 110002, India

Tel. No.:

91-1-23321618 / 23318902

Fax No.:

91-11-23318902-5

E-Mail :

parkhiin@sify.com prakash@mantraonline.com

Area :

500 sq. ft. approx

Location :

Commercial – Owned

 

 

Factory 1 :

Panipat Haryana

 

 

Factory 2 :

Kundli Haryana

 

DIRECTORS

 

Name :

Mr. Raj Dev Arya

Designation :

Director

Address :

ZP-46, Maurya Enclave, Pitam Pura, Delhi – 110088

Date of Birth/Age :

17.04.1967

Date of Appointment :

31.08.2005

 

 

Name :

Ms. Babli Arya

Designation :

Director

Address :

E-105, Preet Vihar, Delhi – 110092

Date of Birth/Age :

23.08.1969

Date of Appointment :

31.08.2005

 

 

Name :

Mr. Chander Pal Arya

Designation :

Director

Address :

R-389, Sector 11 & 12, HUDA, Phase – I, Chandni Bagh, Panipat, Haryana

Date of Birth/Age :

21.02.1969

Date of Appointment :

31.08.2005

 

 

Name :

Ms. Sunita Arya

Designation :

Director

Address :

R-389, Sector 11 & 12, HUDA, Phase – I, Chandni Bagh, Panipat, Haryana

Date of Birth/Age :

12.08.1970

Date of Appointment :

31.08.2005

 

KEY EXECUTIVES

 

Name :

Mr. Raj Dev Arya

Designation :

Chief Executive Officer

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Mr. Raj Dev Arya

5000

25.00 %

Ms. Babli Arya

5000

25.00 %

Mr. Chander Pal Arya

5000

25.00 %

Ms. Sunita Arya

5000

25.00 %

Total

20000

100.00 %

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of wall to wall Machine Made Carpets

 

 

Imports from :

Carpets, yarn, backing cloth and synthetic latex from Europe, South Korea, Middle East and China

 

 

Terms :

 

Selling :

On Credit : 15 days

 

 

Purchasing :

On 100 % TT basis and for existing suppliers on DP basis

 

PRODUCTION STATUS

 

Particulars

Actual Production

Carpets

1000 sq. Meters per day

 

GENERAL INFORMATION

 

No. of Employees :

12

 

 

Bankers :

ABN Amro Bank, Connaught Place, New Delhi – 110001

 

 

 

Banking Relations :

Unknown

 

 

Auditors :

Jain and Kuchhal

Chartered Accountants

[Mr. Praveen Kumar, Membership No. 85789]

2876/5, 2nd Floor, Chuna Mandi, Pahar Ganj, New Delhi - 110055

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

2500000

Equity Shares

Rs. 10/- each

Rs. 2.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

20000

Equity Shares

Rs. 10/- each

Rs. 0.200 Millions

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

[7 Months]

SHAREHOLDERS FUNDS

 

1] Share Capital

0.200

2] Share Application Money

0.000

3] Reserves & Surplus

0.000

4] (Accumulated Losses)

0.000

NETWORTH

0.200

LOAN FUNDS

 

1] Secured Loans

0.000

2] Unsecured Loans

1.678

TOTAL BORROWING

1.678

DEFERRED TAX LIABILITIES

0.000

 

 

TOTAL

1.878

 

 

APPLICATION OF FUNDS

 

 

 

FIXED ASSETS [Net Block]

1.187

Capital work-in-progress

0.000

 

 

INVESTMENT

0.000

DEFERREX TAX ASSETS

0.000

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

Cash & Bank Balances

0.605

Total Current Assets

0.605

Less : CURRENT LIABILITIES & PROVISIONS

 

 

Current Liabilities

0.000

 

Provisions

0.002

Total Current Liabilities

0.002

Net Current Assets

0.603

 

 

MISCELLANEOUS EXPENSES

0.088

 

 

TOTAL

1.878

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

[7 Months]

Total Expenditure

0.014

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

[7 Months]

Return on Total Assets

(PBT/Total Assets}

(%)

[0.74]

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

[7.00]

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

8.39

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

302.50

 

 

 

Quick Ratio

 

302.50

 

 

 

Current Liabilities / Networth

 

0.01

 

LOCAL AGENCY FURTHER INFORMATION

 

Subject does not export and supplies carpets in the domestic market through their Distributors in India.

 

The subject was established in 1992 as Proprietorship Concern in the name of “Prakash International”. Mr. Raj Arya was the Proprietor of the company. The subject company was converted into Private Limited Company on August 31, 2005 vide Registration No. 55-140200 [CIN No. : U17226DL2005PTC140200]   in the mane of “Prakash Carpets Private Limited”.

 

Mr. Raj Arya, Director and Chief Executive Officer of the subject company has claimed that “Prakash International” has now merged with  “Prakash Carpets Private Limited” in October 2006.

 

The turnover of “Prakash International” for the financial year ending 2005-06 till September 2006 was Rs. 30.000 Million approx as claimed by the subject.

 

Mr. Raj Arya has further claimed that they personally visit their supplier’s premises and make the payment to them directly.

 

India has a rich and varied textile heritage, where each region of India has its own unique native costume and traditional attire. While traditional clothes are still worn in most of rural India, urban India is changing rapidly, with international fashion trends reflected by the young and glamorous, in the cosmopolitan metros of India. Fashion in India is a vibrant scene, a nascent industry and a colorful and glamorous world where designers and models start new trends every day.

 

The growth of the Indian carpet industry has been quite impressive in the recent past. As a matter of fact, in terms of the share of world trade, Indian carpet exports at present are estimated to account for 19 per cent of the global trade in carpets. The main importers of Indian carpets are Germany [34 per cent] and the US [32 per cent].

 

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.40.97

UK Pound

1

Rs.80.73

Euro

1

Rs.54.56

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

-

--CREDIT LINES

1~10

4

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

28

 

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