MIRA
INFORM REPORT
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Report Date : |
25.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SPENTA INTERNATIONAL LIMITED |
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Registered Office : |
Plot No. 15 and 16, Dewan Industrial. Estate, Village Navali, Palghar,
Thane – 401404, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
25.07.1986 |
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Com. Reg. No.: |
040482 |
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CIN No.: [Company
Identification No.] |
U28129MH1986PLC040482 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS17243C |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the stock exchange. |
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Line of Business : |
Manufacturer of garments and clothing accessories. |
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 260016 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 30 days |
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Litigation : |
Clear |
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Comments : |
The company faced a set-back due to a fire in manufacturing plant during 2004-05. Profit margin is very thin. The company faces liquidity problems. It can be considered for small to mediocre business dealings on safe and secured trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No 15-16 Dewan Indl Estat, |
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Tel. No.: |
91-02525-254932/250056/250620 |
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Fax No.: |
91-02525-254932 |
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Website : |
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Administrative Office : |
86 and 87, Mahendra Cjambers, 2nd Floor, 134 / 136, |
DIRECTORS
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Name : |
Sanjay S Gadodia |
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Designation : |
Chairman |
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Name : |
Sandeep S Gododia |
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Designation : |
Director |
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Name : |
Jayant N Farswani |
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Designation : |
Director |
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Name : |
Milind Vindod |
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Designation : |
Director |
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Name : |
Rajesh S Deshpande |
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Designation : |
Director |
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Name : |
Danny F Hansotia |
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Designation : |
Managing Director |
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Name : |
Mr. Chetan Rathod |
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Designation : |
Director |
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Name : |
Mrs. Meena Sehra |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of garments and clothing accessories |
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PRODUCTION STATUS
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Particulars |
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Licensed
Capacity (Socks) |
Installed
Capacity |
Actual
Production (including
sourcing) |
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4500000 |
3500000 |
3299603 |
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GENERAL INFORMATION
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Bankers : |
Dena Bank |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
A R Parikh & Co Chartered Accountatns |
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Address : |
Mumbai |
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Associates: |
♠
Rahul Enterprises ♠
Carnival properties Private Limited ♠
Juvenile Trading private limited ♠
Orient Socknit India Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3500000 |
Equity Shares |
Rs.10/- each |
Rs.35.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3120000 |
Equity Shares |
Rs.10/- each |
Rs.31.200
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
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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 |
31.154 |
31.154 |
31.200 |
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2] Share Application Money |
0.000 |
0.000 |
18.100 |
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3] Reserves & Surplus |
33.850 |
23.772 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
65.004 |
54.926 |
49.300 |
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LOAN FUNDS |
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1] Secured Loans |
23.900 |
19.000 |
20.000 |
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2] Unsecured Loans |
11.325 |
15.843 |
7.300 |
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TOTAL BORROWING |
35.225 |
34.843 |
27.300 |
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DEFERRED TAX LIABILITIES |
4..539 |
1.387 |
0.000 |
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TOTAL |
104.768 |
91.156 |
76.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
71.912 |
40.586 |
36.400 |
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Capital work-in-progress |
8.927 |
22.622 |
17.300 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
15.038
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10.282 |
9.200 |
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Sundry Debtors |
16.316
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10.220 |
12.00 |
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Cash & Bank Balances |
7.265
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4.447 |
8.000 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
14.650
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24.055 |
8.900 |
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Total
Current Assets |
53.269
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49.004 |
38.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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22.338 |
16.000 |
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Provisions |
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1.000 |
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Total
Current Liabilities |
30.062
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22.338 |
17.000 |
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Net Current Assets |
23.209
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26.666 |
21.100 |
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MISCELLANEOUS EXPENSES |
0.720 |
1.282 |
1.800 |
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TOTAL |
104.768 |
91.156 |
76.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
97.922 |
69.754 |
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Other Income |
0.655 |
0.628 |
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Total Income |
98.577 |
70.382 |
47.000 |
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Profit/(Loss) Before Tax |
15.488 |
2.327 |
7.900
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Provision for Taxation |
5.411 |
3.335 |
3.300
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Profit/(Loss) After Tax |
10.077 |
5.662 |
4.600
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Expenditures : |
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Raw Material Consumed |
0.728 |
0.386 |
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Purchases made for re-sale |
5.278 |
3.729 |
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Consumption of stores and spares parts |
5.269 |
3.387 |
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Increase/(Decrease) in Finished Goods |
3.442 |
(0.176) |
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Salaries, Wages, Bonus, etc. |
1.560 |
1.560 |
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Payment to Auditors |
0.147 |
0.087 |
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Total Expenditure |
16.424 |
1.647 |
39.100 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales Turnover |
36.300 |
38.700 |
35.400 |
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Other Turnover |
00.100 |
00.100 |
10.500 |
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Total Income |
36.400 |
38.800 |
45.900 |
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Total
Expenditure |
25.500 |
28.400 |
28.200 |
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Operating Profit |
10.900 |
10.400 |
17.700 |
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Interest |
01.000 |
01.100 |
01.200 |
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Gross Profit |
09.900 |
09.300 |
16.500 |
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Depreciation |
02.200 |
03.200 |
02.800 |
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Tax |
00.900 |
00.900 |
00.900 |
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Reported PAT |
06.300 |
04.700 |
12.300 |
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200606 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs 1.252 million Consumption of Raw
Material Rs 16.144 million Staff Cost Rs 2.069 million Other Expenditure Rs
6.045 million Depreciation Indicates Depreciation & Amortisation Tax
Includes Provision for Current Tax Rs 0.861 million Deferred Tax Rs 0.500
million Fringe Benefit Tax Rs 0.029 million Status of Investor Complaints for
the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter 09 Complaints disposed off during
the quarter 09 Complaints unresolved at the end of the quarter Nil 1. The above
results approved by Audit Committee have been taken on record in a meeting of
board of directors held on July 31, 2006 and was subject to a Limited Review by
the statutory Auditors. 2. Reporting of segment wise result is not given as the
Company has only one line of business i.e. Manufacturing of Socks. Hence no
separate segment is identifiable. 3. Provision for Deferred Tax will be
ascertained at the end of the financial year.
200609 Quarter 2 --------------- NOTES: 1) The above results
approved by Audit Committee have been taken on record in a meeting of board of
directors held on Saturday 31st October 2006 and was subject to a limited
review by the statutory auditors of the company. 2) Reporting of Segment wise
result Is not given as the company has only one line of business i.e.
Manufacturing of Socks. Hence no separate segment is identifiable. 3) Provision
for Defferred Tax has been done or adhoc basis, actual defferred tax will be
ascertained at the end of she financial year. 4) No Complains were pending at
the begining or at the end of the quarter. The company received One complain
during the quarter ended 30th September, 2006 & the complain was resolved.
5) Figures for the previous period are regrouped wherever necessary. 6)
Asregards to the Fire which had occured on 10th December 2004 at the Company
premises at palghar, the company had filed a claim for Rs. 43.615 millions from
the insurance company, against which the insurance company has settled the
claim for Rs.24.940 millions. However the Profit/Loss is yet to be determined
on this account has letter for further clarification on settlement of the claim
has been filled with the insurance company.
200612 Quarter 3 --------------- Notes Depreciation
Indicated Depreciation & Amortisation EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter 1 Complaints Received during the quarter 5
Complaints disposed off during the quarter 4 Complaints unresolved at the end
of the quarter 2 1.The above results approved by Audit Committee have been
taken on record in a meeting of board of directors held on January 31, 2007 and
was subject to a Limited Review by the statutory auditors of the Company.
2.Reporting of segment wise result is not given as the Company has only one
line of business i.e. Manufacturing of Socks. Hence no separate segment is
identifiable. 3.Provision for Deferred Tax will be ascertained at the end of
the financial year. 4. Figures for the previous period are regrouped wherever
necessary. 5.As regards to the fire which had occured on 10.12.2004 at the company's
premises at paighar, the company had filed a claim for Rs.43.615 millions from
the insurance company, against which the insurance company has settled the
claim for Rs.24.940 millions on a reinstalment basis. The surplus arising on
account of the difference between the claim received and the written down value
of the fixed assets, loss due to fire has been credited to Profit & Loss
Account under the head Exceptional Items.
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
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0.58 |
0.60 |
0.33 |
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Long
Term Debt-Equity Ratio |
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0.58 |
0.60 |
0.33 |
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Current
Ratio |
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1.76 |
2.14 |
1.98 |
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TURNOVER
RATIOS |
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Fixed
Assets |
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1.41 |
1.27 |
1.05 |
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Inventory |
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7.74 |
7.16 |
6.79 |
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Debtors |
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7.39 |
6.29 |
4.03 |
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Interest
Cover Ratio |
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4.42 |
2.85 |
7.31 |
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Operating
Profit Margin(%) |
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27.37 |
19.48 |
24.44 |
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Profit
Before Interest And Tax Margin(%) |
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20.33 |
11.03 |
16.46 |
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Cash
Profit Margin(%) |
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17.36 |
25.07 |
16.46 |
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Adjusted
Net Profit Margin(%) |
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10.32 |
16.62 |
8.49 |
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Return
On Capital Employed(%) |
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21.16 |
9.43 |
15.54 |
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Return
On Net Worth(%) |
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16.82 |
22.24 |
10.46 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.16.50 |
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Low |
Rs.15.41 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
♠
Free
♠
Building and Civic Works
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Plant and Machinery
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Office Equipments
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Computers
♠
Furniture and Fixture
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Misc. Fixed Assets
♠
Motor Cars
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Flat At Palghar
Contigent
Liability:
In respect of guarantee provided by bank on behalf of the company
Rs.1.731 millions.
Income Tax demand for Rs.0.662 for the previous years, against which the
company has filed and appeal with the income tax appeal tribunal Mumbai. The
matter is still pending with the said authority.
Central demand of Rs.0.759 millions towards penalty proceeding initiated
by the department for disallowances of cenvat credit on capital goods claimed
by the company during the year 2002 – 03 and 2003 – 04 against which the company
has preferred appeal
Estimated amount of contracts remaining to be executed on capital
account and not provided for net of advances is (Rs.29.050 millions
FINANCIAL
OPERATIONS:-
The company has almost managed to achieve the target of 100 million with a
sales turn over of Rs. 97.975 millions, 40% higher compared to Rs. 69.760
millions in 2004-2005. The company has posted a net profit of Rs. 1.078
millions, 78% higher compared to Rs. 5.662 millions in 2004-2005.
FUTURE PROSPECTS
:-
The company has successfully implemented 100% of the production lost due to the
fire. The long term aim of SPENTA is to expand the capacities by increasing the
number of machines from 100 to 500 over a period of 5 years. At present SIL is
running at the capacity of 63 machines which would be increased to 93 machines
by the end of July'06. There is a growing demand from its existing customers;
SPENTA is not able to meet their requirement due to limited capacities.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
A) Industry Structure and Development
Per capital consumption for socks has increased in
B) Opportunities and Threats
With the rise of Indian middle class and consumers shifting
their preference for branded products, SPENTA has already got a ready-to-cater
market which is vast. At present there are only 3-4 major socks exporters in
the country that can meet the International quality standards, hence SPENTA
with increased capacities is all set to grow rapidly. Low quality low priced
unbranded socks cater to the major portion of the socks market in the country.
Fluctuating raw material prices & cheap quality socks manufactured by
C) Segment - wise or product -
wise performance
The Company has one segment of activity namely socks, in line with the definition
of 'segment' as per Accounting Standard 17 issued by the Institute of Chartered
Accountants of India. The performance of the Company is discussed separately in
the Directors' Report.
D) Outlook
The Textile & hosiery Industry in
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.40.81 |
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1 |
Rs.81.57 |
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Euro |
1 |
Rs.54.91 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
3 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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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 |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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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 |
|
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
|
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 |
|
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 |
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