MIRA
INFORM REPORT
|
Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
ZONAC KNITTING MACHINES PRIVATE LIMITED |
|
|
|
|
Registered Office : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
10.03.1988 |
|
|
|
|
Com. Reg. No.: |
030908 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U74899DL1988PTC030908 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELZ00390F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACZ0038N |
|
|
|
|
Legal Form : |
Private Limited Liability Company. |
|
|
|
|
Line of Business : |
Manufacturers & exporters of high quality cotton/wool socks & tights. |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 93000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track. Directors are reported as experienced, respectable & having sustainable means of their own. Their trade relations are fair. Payments are usually correct & as per commitments. The company can be considered normal for business dealings at usual trade terms & conditions. |
LOCATIONS
|
Registered Office : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
|
Tel. No.: |
91-11-27691195 |
|
Fax No.: |
91-11-27691188 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
6, SSI Industrial Area, |
|
Tel. No.: |
91-11-27691841/27691195 |
|
Fax No.: |
91-11-27691677 |
DIRECTORS
|
Name : |
Mr. Raj Kumar Jain |
|
Designation : |
Managing Director |
|
Address : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
|
|
|
|
Name : |
Mr. Ajay Kumar Jain |
|
Designation : |
Director |
|
Address : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
|
|
|
|
Name : |
Mr. Nihal Chand Jain |
|
Designation : |
Director |
|
Address : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
|
|
|
|
Name : |
Mrs. Kusum Lata Jain |
|
Designation : |
Director |
|
Address : |
C 64, 1st Floor, Ashok Vihar, Phase I, |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. Raj Kumar Jain |
276000 |
26.04 |
|
Mr. Ajay Kumar Jain |
220000 |
20.75 |
|
Mrs. Kusum Lata Jain |
110000 |
10.38 |
|
Mr. Nihal Chand Jain |
100000 |
9.43 |
|
Mr. Raj Kumar Jain (HUF) |
110000 |
10.38 |
|
Mr. Ajay Kumar Jain (HUF) |
50000 |
4.72 |
|
Mr. Nihal Chand Jain and Sons (HUF) |
80000 |
7.55 |
|
Mrs. Sushma Jain |
20000 |
1.89 |
|
Mrs. Swetra Jain |
50000 |
4.72 |
|
Mr. Sanjay Jain |
44000 |
4.15 |
|
Total |
1060000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers & exporters of high quality cotton/wool
socks & tights |
GENERAL INFORMATION
|
Customers: |
1.
M/s. 2.
M/s. Clever Socks Ltd., 3.
M/s. L.W.R. Hosiery, 4.
M/s. Euro Socks Ltd. ( 5.
M/s. S. Kampf N.V., U.A.E. 1. M/s. Shop N Save, Sharjah. 2. M/s.
Giant Super Market, |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
No. of Employees : |
80 |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
Punjab National Bank, IGI ·
Punjab National Bank, ICD, TKD, ·
Bank of · Canara Bank |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Vinay Jain & Associates Chartered Accountant |
|
Address : |
18 / 12, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1250000 |
Equity Shares |
Rs. 10.00 each |
Rs. 12.500 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1110000 |
Equity Shares |
Rs. 10.00 each |
Rs. 11.100 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
11.100 |
10.600 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
12.373 |
8.453 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
23.473 |
19.053 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
21.945 |
21.638 |
|
|
2] Unsecured Loans |
|
9.121 |
7.866 |
|
|
TOTAL BORROWING |
|
31.066 |
29.504 |
|
|
DEFERRED TAX LIABILITIES |
|
2.076 |
0.000 |
|
|
|
|
|
|
|
|
OTHER LIABILITIES |
|
6.813 |
3.056 |
|
|
|
|
|
|
|
|
TOTAL |
|
63.427 |
51.613 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
30.422 |
20.748 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
3.780 |
3.152 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
20.457 |
12.334 |
|
|
Sundry Debtors |
|
27.407 |
24.832 |
|
|
Cash & Bank Balances |
|
4.325 |
2.841 |
|
|
Other Current Assets |
|
1.656 |
2.221 |
|
|
Loans & Advances |
|
0.000 |
0.000 |
|
Total
Current Assets |
|
53.845 |
42.228 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
24.028 |
13.662 |
|
|
Provisions |
|
0.592 |
0.852 |
|
Total
Current Liabilities |
|
24.620 |
14.514 |
|
|
Net Current Assets |
|
29.225 |
27.713 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
63.427 |
51.613 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 (Estimated) |
31.03.2005 (Estimated) |
|
Sales Turnover |
|
50.000 |
40.000 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
2.37 |
2.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.19 |
2.91 |
LOCAL AGENCY FURTHER INFORMATION
|
Name of the company |
ZONAC KNITTING
MACHINES PRIVATE LIMITED |
|
Presented By |
CANARA BANK Shakti Nagar, |
|
1) Date and description of instrument creating the change |
Deed of
Hypothecation Re-Machinery dated 08.09.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 1.800
millions |
|
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
the following machineries purchased or to be purchased out of the Term Loan granted
by the Bank installed or to be installed at Companys premises at 6, SSI
Industrial Are, G T Karnal Road, Delhi 110 033 or at any other place(s)
including those in transit. Automatic Socks
Knitting Machines |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The above is to
secure all amounts payable under a Term Loan of Rs. 1.800 millions granted to
the company together with all interests, costs, charges, expenses, etc. Interest is to be
charged @ 9.75% p.a. compounded monthly or at such rate(s) as may be
specified by the Bank from time to time with an overdue interest of 2% p.a.
over and above the interest rate charged in the account in case of default. The Term Loan is
repayable in 60 equal monthly installments of Rs. 0.030 each together with
interest as and when due commencing from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
Canara Bank Shakti Nagar, |
|
Corporate identity
number (CIN) Foreign company registration number |
U74899DL1988PTC030908 |
|
Name of the
Company |
ZONAC KNITTING
MACHINES PRIVATE LIMITED |
|
Address |
C 64, 1st
Floor, Ashok Vihar, Phase I, |
|
This form is for |
Modification of
charge |
|
Type of Charge |
A Charge on v
Book
Debts v
Movable
property (not being pledge) v
Floating
charge |
|
Particulars of
the charge holder |
Canara Bank Shakti Nagar, E-Mail: ca_rcg@yahoo.co.in |
|
Amount secured by
the charge |
Rs. 32.500
millions |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Supplemental
Agreement dated 20.03.2007 and Agreement Re: Collateral Security: Machinery;
Vehicles dated 20.03.2007 |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
(a) Rate of
Interest @ 2% p.a. below
BPLR of the Bank with a minimum of 10.50% p.a. compounded monthly. (b) Terms of
repayment Payable on demand (C) Margin: 25% (d) Extent and
operation of the charge: 100 % (e) Others: To
secure all amounts payable under enhanced Cash Credit limit of Rs. 32.500
millions granted to the Company. |
|
Short particulars
of the property charged |
Hypothecation of
stock of Hosiery items, raw-materials, finished gods and semi finished
goods and all other goods and commodities belonging to the Company stored /
to be stored at Companys premises at A 22, Wazirpur Industrial Area, Delhi
or at any other place(s) including those in transit and all book-debts of the
company both present and future and all machineries of the company as
detailed in the Schedule of the Deed installed / stored at A 22, Wazirpur
Industrial Area, Delhi 110 052 |
|
Date of Instrument
|
20.03.2007 |
Fixed Assets:
·
Land
·
Plant
& Machinery
·
Electric
Installations
·
Furniture
& Fixtures
·
Lift
·
Car
·
Air
Conditioners
·
Cycle
·
Fax Machine
·
Office Equipment
·
Pager
·
Computer
·
Website Details:
The
opening of the Indian Economy and the availability of the best Cotton Yarns
Couples with the cheap Labour force caused the western world to see the vast
potential for manufacture of Socks and under garments in
The
changing eco friendly culture has brought sophistication of introduction of non
azo dyes and its various penchants.
They
at "Bonjour International" have 120 number of mechanical/computerized
knitting machines, Rosso linking machines, Exacta linking machines, hand
linking machines and Steam Boarding machines, Treasure hemming machines,
capable of making plain sock/mock ribs, computerized sandwich terry socks,
computerized motif patterns and jacquard pattern etc. as per requirements.
To
make socks of the finest quality they are also doing computerized machine
embroidery on socks (on Demand) on imported Japanese Tajima machines.
They also do hand linking for some of their exclusive qualities.
The
company commenced the production in 1988 and is exporting its Socks to
The
company follows a strict good manufacturing procedure and as a cardinal
principal has adopted a policy for non employment of child labour. The
company's yarn requirement are procured from the country's best spinning mills
who give guarantees for spinning quality and dyeing properties. The socks
have been tested in various laboratories by their esteemed buyers and they have
till date received no complaints on the same.
They
at "Bonjour International" are committed to quality and seek your
co-operation in establishing a niche for their products. They have an on
going programme with their machines suppliers for continuing technical training
of their staff through regular bi-annual visit of their senior staff to their
works and their senior technical people visiting their works for learning the
technical improvement and updating theirselves on the same.
They
can accept packing the Socks in any way you like, with your own labels with
barcode in a cascade packing. Two or more pair pack concept with the
labels being provided by you or printed to your specifications and designs, as
their customers already included specialty shops, hyper markets, super markets,
they are aware of the high quality packing required and they at Bonjour are
geared to undertake the same.
They
can accept most regrous quality checking that you may like and offer their
goods for inspection through any of your nominated inspection agencies.
They
look forward to receiving your enquiries with your samples and their prepared
to match the same and send you their counter samples for your kind evaluation.
Details of machines installed
1.
28 Nos. Korean/Chechoslovakian Double Cylinder machines 168 Needles 4 inch
Diameter
2.
18 Nos. Sangiacomo 6 cus fully computerized Single Cylinder machines 168
needles 3 3/4 inch Diameter.
3.
4 Nos. fillet pattern single cylinder machines 168 needles 3 1/2 inch diameter
4.
15 Nos. Single Cylinder machines with computer motifs 200 needles 3 1/2 inch
diameter.
5.
2 Nos. fully computerized conti sports machines 108 needles 4 inch diameter.
6.
2 Nos. Italian single cylinder machines 176 needles 3 1/2 inch diameter.
7.
51 Nos. Single Cylinder machines with needles from 128-200 nos. 3 1/2 inch
diameter.
8.
2 Nos. Rosso linking machines
1
No. Exacta linking machine
18
Nos. hand linking machines
1 steam Setting/Boarding machine
4 Nos. Treasure Brand Top welt hemming machine
10 Nos. Yamoto over lock
7 Nos. Union Special flat lock machines
1 No. Feed of the over union special flat lock machines.
Current production
capacity
25,000 dozen pairs of socks
per month
Present production range
·
Computer
motif patterns in combed dyed/mercerized dyed cotton 70% and polyamide 30%
weight 450-500 Gms. Per dozen pairs.
·
Fully
computerized sanvitch terry pouch heel 85% combed/carded cotton with 15%
polyamide.
·
True
Ribs with combed dyed/mercerized dyed cotton 65% with polyamide 35% with weight
450-500 gms. per dozen pairs.
·
Plain
colours (any shade) in 70% Cotton combed, yarn dyed 30% polyamide crimped yarn
dyed. Weight 450-470 gms. per dozen pairs.
·
Melange
shades in the above qualities.
·
Rib-socks
(mock ribs) in above qualities.
·
Plain
colours (any shade) 65% cotton combed, yarn dyed 35% Polyamide crimped yarn
dyed. Weight 380-400 gms. per dozen pairs.
·
Melange
shade in above quality.
·
Rib
socks (mock ribs) in above qualities.
·
Cotton/Spandex
(Lycra) (any shade) in 80% cotton, 10% Polyamide and 10% Spandex. Weight
440-470 gms. per dozen pairs.
·
Mercerised
dyed cotton yarn with Polyamide crimped yarn dyed or with Spandex in the above
combinations.
·
Woollen
yarn dyed in ordinary or super wash quality with Polyamide crimped yarn dyed or
with Spandex in the above combinations.
·
Acrylic-Wool
blended yarn dyed with polyamide crimped yarn dyed or with spandex in the above
combinations.
·
Embroidery
(any pattern) made on modern Japanese machines - in all the above qualities.
·
Computer
motif socks in the any of the above combination.
They Can Make Any Other Combination
With Cotton, Wool, Acro-Wool And Polyamide, Spandex According To Buyers
Specification.
They Have Recently Developed A Facility
To Make All Types Of Cotton Lycra Tights For Children's & Ladies.
They can load 7000-8000 dozen pairs
in a twenty feet container depending upon the type of packing and carton
size. Even part container load can be loaded for any port.
Normal delivery schedules are 45-60
days from receipt of Letter of Credit.
Payment is accepted by confirmed,
irrevocable letter of credit payable at sight against first presentation of
documents across Indian banks counter. They can accept D.A. letter of
credit also in some cases.
List of their value clients:
6. M/s.
7. M/s. Clever Socks Ltd.,
8. M/s. L.W.R. Hosiery,
9. M/s. Euro Socks Ltd. (
10. M/s. S. Kampf N.V.,
U.A.E.
3. M/s. Shop N Save, Sharjah.
4. M/s. Giant Super Market,
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 Intl
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 companys 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. 40.95 |
|
|
1 |
Rs. 81.80 |
|
Euro |
1 |
Rs. 55.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--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 |
|
45 |
This score serves as a reference to assess SCs 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 |
|