MIRA
INFORM REPORT
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Report Date : |
27.06.2007 |
IDENTIFICATION DETAILS
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Name : |
VIREN EXIM PRIVATE LIMITED |
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Registered Office : |
G / 14, White House Panchvati, Ellisbridge, Ahmedabad – 380006, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.03.1993 |
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Com. Reg. No.: |
04 - 19119 |
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CIN No.: [Company
Identification No.] |
U51100GJ1993PTC019119 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMV01419F |
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Legal Form : |
Private Limited liability Company |
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Line of Business : |
Trading in Stationery and Copier Paper. |
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 30936 |
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Status : |
Moderate |
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Payment Behaviour : |
Satisfactory |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track records.
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 : |
G / 14, White House Panchwati, Ellisbridge, Ahmedabad – 380006, |
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Tel. No.: |
91-79-6464979 |
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Fax No.: |
91-79-6462349 |
DIRECTORS
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Name : |
Mr. Virendrabhai S. Shah |
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Designation : |
Director |
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Date of Appointment : |
11.03.1993 |
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Name : |
Mrs. Namitaben V. Shah |
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Designation : |
Director |
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Date of Appointment : |
11.03.1993 |
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Name : |
Mr. Sudhridbhai V. Sarabhai |
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Designation : |
Director |
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Date of Appointment : |
2.04.2002 |
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Name : |
Mr. Aditya V. Sarabhai |
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Designation : |
director |
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Date of Appointment : |
2.04.2002 |
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KEY EXECUTIVES
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Name : |
Mr. Shambhu J Shikadia |
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Designation : |
Company Secretary |
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Address : |
Flat No. E / 202, Vraj Vihar – 4, Near Chandan Party Plot, Satellite,
Ahmedabad – 380 015, |
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Tel No.: |
91-79-26925476 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Aditya V. Sarabhai |
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15000 |
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Mr. Suhridbhai V. Sarabhai |
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15000 |
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Mrs. Namitaben V. Shah |
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65000 |
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Mr. Virendrabhai S. Shah |
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80000 |
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Category |
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Percentage of
Holding |
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Director or Relative of Directors |
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100% |
BUSINESS DETAILS
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Line of Business : |
Trading in Stationery and Copier Paper. |
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Products : |
v
Books, v
Diary, Books v
Educational, exercise – books v
Filler Paper v
Chemicals v
Memo pads v
Note and exercise book and album bookbinding
services v
Drawing Books v
Ruled Papers v
Spiral Books, v
Composition Books v
Dairies and Planners |
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GENERAL INFORMATION
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No. of Employees : |
10 – 15 Employees |
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Bankers : |
Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mulani Kajarekar and Company Chartered Accountants |
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Address : |
204, Simandhar Avenue, 8, Kailash Society, Near, H.K. House, Ashram
Road, Ahmedabad – 380009, Gujarat, India |
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Tel No.: |
91-79-26582169 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000 |
Equity Shares |
Rs.10/- each |
Rs.5.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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500000 |
Equity Shares |
Rs.10/- each |
Rs.5.000 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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5.000 |
5.000 |
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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 |
0.185 |
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4] (Accumulated Losses) |
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(1.863) |
0.000 |
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NETWORTH |
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3.137 |
5.185 |
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LOAN FUNDS |
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1] Secured Loans |
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2.706 |
8.999 |
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2] Unsecured Loans |
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0.028 |
0.013 |
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TOTAL BORROWING |
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2.734 |
9.012 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.034 |
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TOTAL |
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5.871 |
14.231 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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1.586 |
0.395 |
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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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1.245 |
3.112 |
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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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1.454 |
0.477 |
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Sundry Debtors |
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2.189 |
14.197 |
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Cash & Bank Balances |
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0.085 |
1.278 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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1.368 |
3.432 |
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Total
Current Assets |
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5.096 |
19.384 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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2.039 |
8.474 |
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Provisions |
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0.017 |
0.186 |
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Total
Current Liabilities |
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2.056 |
8.660 |
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Net Current Assets |
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3.040 |
10.724 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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5.871 |
14.231 |
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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 |
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10.682 |
41.422 |
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Share from Partnership Firm |
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0.232 |
0.102 |
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Other Income |
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0.093 |
0.001 |
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Total Income |
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11.007 |
41.525 |
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CHANGE IN STOCK |
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0.977 |
(0.557) |
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Profit/(Loss) Before Tax |
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(1.974) |
0.076 |
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Provision for Taxation |
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0.074 |
0.150 |
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Profit/(Loss) After Tax |
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(2.048) |
(0.074) |
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FOB VALUE |
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9.079 |
0.000 |
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Expenditures : |
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Purchase |
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8.938 |
32.553 |
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Administrative and Other Expenses |
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3.364 |
7.667 |
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Financial Charges |
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1.138 |
0.603 |
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Depreciation |
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0.518 |
0.069 |
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Total Expenditure |
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13.958 |
40.892 |
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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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(18.61) |
0.18 |
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Net Profit Margin (PBT/Sales) |
(%) |
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(18.48) |
0.18 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(29.55) |
0.38 |
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Return on Investment (ROI) (PBT/Networth) |
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(0.63) |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.65 |
1.67 |
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Current Ratio (Current Asset/Current Liability) |
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2.47 |
2.23 |
LOCAL AGENCY FURTHER INFORMATION
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Name of the company |
VIREN EXIM
PRIVATE LIMITED |
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Presented By |
Virendra Sarabhai
Shah, Director |
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1) Date and description of instrument creating the change |
5.12.2003 Composite
instrument of Hypothecation of goods, Book debts, Movable Machinery and
Vehicles, Pledge of Government Securities, Shares. Document of title to
goods, other than securities for immovable property. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.4.000 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
goods and hypothecation of book debts, FBP agreement and FBR undertaking
pledge of security. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest /
Commission PC:2.5% below STPLR – 1 i.e. 7.5% for a period upto 180 days and
0.5% over STPLR - i.e. 11.25% beyond 180 days upto 270 days FBP: 2.5% below
STPLR – 1 i.e. 7.5% for a period upto 90 days and 0.5% over STPLR – 2, 11.25%
beyond 90 days upto 5 months. Margin of
security: PC 15% FBP Nil |
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5) Name and Address and description of the person entitled to the charge. |
Bank of |
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6) Date and brief description of instrument modifying the charge |
Supplemental
Composite Agreement of hypothecation of goods, Book debts, Movable Machinery
and Vehicles along with pledge of Government securities, Shares, documents of
title to goods other than securities for immovable property 13.07.2004
increasing packing credit and FBP /
FBD limit from Rs.4.000 millions to Rs.9.000 millions Supplementary
composite instrument of hypothecation of goods, book debts, movable machinery
and vehicles dated 2.04.2005 for increasing packing credit / FBP / FBD limit
further from Rs.9.000 millions to Rs.0.150 millions. |
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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. |
Rate of Interest
PC: 6.5% FBP / FBO: As per RBI Directive Security
Hypothecation of goods, Book Debts, Movable machinery, vehicles, along with
pledge of Government securities, shares documents of title to goods other
than securities for immovable property. Margin: PC: 15%
FBP /FBD: Nil To secure
modified PC limit FBP / FBD limit of Rs.9.000 millions vide supplemental
agreement 13.07.2004 Interest on the
cash credit limit at the rate of 4% over prime lending rate with monthly /
quarterly / half yearly / yearly rest and maintain margin of 15% on the stock Security: Secured
by way of extention of charge on the hypothecated premises. |
Company profile:
Subject is an exporter of paper and paperboards
in various forms like reels and sheers and in variety of gran industrial
purposes such as printing, processing, converting, lamination and other product
range included:
¨ Wood Free Writing and Printing paper
¨ Duplex Boards
¨ Photocopy Paper
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¨ Coloured Bank Paper
¨ Coated Papers and Boards.
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.40.95 |
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1 |
Rs.81.80 |
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Euro |
1 |
Rs.55.09 |
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 |
3 |
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OPERATING SCALE |
1~10 |
- |
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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 |
4 |
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--LEVERAGE |
1~10 |
4 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
2 |
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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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26 |
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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